Is Profit Center required when using Transfer Pricing?

Hi Expert,
If we are going to use transfer pricing in SAP, what are the requirement in order to keep it running? Does it require activation of profit center accounting? Thanks for support.
regards,
cpf

Hi,
Transfer pricing is one of the parellel/multiple valuation approach specific to Profit Center Accounting so that the correct
price is valuated.  The Costing Variant and the Costing sheet created by you has dependencies of condition type KA01 in the condition tables which sets the transfer price depending on the combination plant, material and profit center to enable you to generate an accurate price report.
Best Regards,
Sadashivan

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