Transfer Price Agreements
Definition
The transfer price agreement documents a price agreed between two WBS elements for a particular service.
Note
Transfer price agreements are only possible between two WBS elements one of which is directly above the other in the hierarchy.
For the evaluation in the information system to make sense, you should assign the WBS elements between different profit centers or subprojects.
Use
You use transfer price agreements to depict the planned cost and revenue views from various responsibility areas in the Project System. You enter the transfer price agreement in the subordinate ("delivering") WBS element; the system automatically records it in the superior ("ordering") WBS element.
Structure
You enter the transfer price agreement as a document. The document header contains data that applies to the whole document. As well as the header, the document includes at least one document item. It is the document item that contains the actual information on the transfer price agreement.
You assign the document to a document type, which controls the following:
Number range interval for document number assignment
Follow-up document type for transfer price allocation
Default value for cost/revenue element
Retention period for document archiving
Authorization checks
Whether the transfer price agreement is released as soon as it is entered
Whether you define the transfer price agreement using an overall amount, or the price per unit of measure with a quantity