Transfer Prices: Stock Transfer Between Plants 

Purpose

Transfer prices allow organizations that divide tasks among different organizational units to valuate the goods and services exchanged between these units.

Particularly large corporations are often divided into a number of independently operating divisions or companies that exchange large quantities of goods and services with one another.

By valuating the exchange of goods and services using transfer prices, you can significantly influence the actual success of your corporate divisions or profit centers.

The following scenarios are portrayed in IDES to display the multiple valuation of logistical processes:

In this scenario you perform a stock transfer and analyze the multiple valuation of this business transaction.

You can find more information about this process under .

Prerequisites

To execute this scenario, you need to have activated transfer prices. To find out how to activate transfer prices in your system, see the scenario on setting up and activating transfer prices in CO and FI.

Process Flow

  1. Checking Material Availability
  2. Checking Pricing in Profit Center Valuation
  3. Executing Material Transfer
  4. Analyzing the Materials Management Valuation
  5. Displaying the Material Movement from the View of Profitability Analysis