Transfer Price capturing through material ledger

Hi
Would like to know how can we capture Transfer price mechanism through Material ledger.And what should be taken care of while activating material ledger.
regards

Hi,
Transfer pricing is taken care using Speicial procurement key as similar as Product cost planning.
The very important activities involved with ML while implementing are:
1. Conversion from pricing control V to S, if we dicide to go with S for rawmaterial.
2. Month end activities. This has to be done with out miss. Other wise, there will be a problem in closing the past period.
Vijay

Similar Messages

Profit center transfer price Without activated material ledger

Hi
May I use profit center transfer price without activated material ledger as well?
Regards

Hi Alaa
This OSS explain the Transfer Price Activation.
Note 122008 - Activate transfer pricesmult.valuation approaches
ML activation is a Must.
Arturo.

Material Price updation through Material Ledger

Hi,
I implemented the ML and after executing the ML Costing run & on 1st movement of material( Dynamic price release) the The Per Unit price* which is calculated in ML costing run is not updating in the current std price area in Costing View 2 Tab.
I think the previous periods( for which I did ML Costing Run) Per unit price has to update in the Current planned price in Costing View 2. Instead of this , the std planned price of previous period only updating in the "future Planned price".
Please explain how to get the Previous period Moving price in Current Planned price in Costing View 2.
T & R,
C.Balaji

Hi,
I did CK11N & CK24 in Feb for example, and the price updated in current std cost estimate.
after month end closing I did CKMLCP, I heard that after completing all the sequence of oparations, The actual cost incurred for the material will update in Perunit price and Price controle will become from S to V, and we can get the Moving avarage price of Feb will become the Std price for the March month.
This is not happening , How we can get this Moving Avarage price of Feb month as a Std current price in March month.
Pls inform wether it is possible or not, if possible what is the method to get.
T & R,
C.Balaji

Transfer Price capturing

Hi all,
Please read the following scenario and provide if some solution comes to you:
Our client issues finished goods to the customer via plant "FCP", at say Rs.10000/-, where as the price they get from plant FCP is Rs. 8000/-. Both plant and sales organization are under same company code.
Currently there is no seperate data captured for FCP price, But our client wants to monitor the business from the plant FCP, and wants to capture the price of Rs.8000 in FCP books.
We tried through adding seperate condition type. We are struck at getting debit entry in addition to customer account while posting accounting document in Invoice..
Can anyone suggest how we can go about it.
Regards
Guru

Hi,
This is not related to Cost and Profit.
Requirement is to capture the Price (Transfer Price) at Plant Business Area, and in Invoice accounting document, they want Credit to Plant's Business Area and Debit to Sales Area's Business Area.
I mean at Invoice, two business Areas need to be determined. This is further to capturing the Transfer price of the material being supplied by plant.
Regards
Guru

Huge price variance in Material Ledger

Dear Gurus,
In our case the standard cost of one Finished goods is released with the price of Rs.10 but later on the cost of one of the Raw material is changed to Rs.1200. Without releasing the standard cost (as it cannot be released for more than once in a period) of the Finished Goods, we have performed Mock month end closing for Material Ledger.
Now due to the difference in raw material cost huge variance (Rs.12000-10) is lying as unallocated variance.
Please advise the way out as to how to correct the same at the earliest.
Regards
Rajya Lakshmi

Hi,
Thanks for the reply but in case of MR21 and MR22 also the variance will be collected on price difference account only and needs to be allocated back to the Finished Goods.
Against which the PRD should be knocked off is the question and how to pass the JV.
Please Advise.
Regards
Rajya Lakshmi

Single level price determination in material ledger

What is the meaning of single level?Doe it include only the price determination of procured raw materials or will it also include semi finished and finnished goods?

Hi
Single level price determination is to calculate the unit price of material for a period. It takes into account the price differneces arising out of Price Differences like GR/IR Differences, Exchange Rate Differences, and revaluation differences to calculate the actual price of a material.
You can have more information of Single Level Price Determination at the following link:
http://help.sap.com/saphelp_47x200/helpdata/en/d2/cb4f37455611d189710000e8322d00/frameset.htm
Regards,
Suraj

Difference in per unit price in ML (Material Ledger)

Dear Gurus
The price in the e material master per unit price of material under Group currency, Group valuation view differs.
Company code currency (Legal Valuation)
10   SAR
Group Currency (Group Valuation)
20   SAR
Group Currency (Profit Center Valuation)
10   SAR
Please help me on this.
Thanks in Advance
Regards
Sivakumar S

Ans

Activation of Transfer Price; Profit Center;

Dear All,
As I have no prior experience in CO/ Transfer Price , I sincerely seek the assistance and help of kind souls in giving some pointers on the following questions after reading so much from everywhere.
Currently we are having a Production Profit Center selling to a Selling Profit Center at a neogotiated price. Thus we would like to activate Transfer Price in Controlling and Material Ledger to document internal revenue, internal costs and changes in stock in each Profit Center.
My queries as follows:
Activation of Transfer Price
1) The Currency & Valuation Profile has to be maintained.
As we are interested in activating the Profit Center Valuation View in Material Ledger to store the transfer price in company code currency, we will need to create a new Currency & Valuation profile as the Company Code Currency + Profit Center Valuation here. Is this correct? Is there a need to create the valuation profile for Company Code Currency + Legal Valuation?
2) Assignment of Currency & Valuation Profile to Controlling Area
If we have 2 profiles such as Company Code Currency + Profit Center Valuation and Company Code Currency + Legal Valuation, how are we to assign only a single profile to the Controlling Area? Or is it possible to assign 2 profiles to the Controlling Area?
3) Create Versions for Valuation Methods
As we are using Transfer Prices, SAP Help says we specify "Operational Actual Version 000" for the valuation which becomes the leading valuation in CO. How do we do this in the configuration?
4) Define Valuation Clearing Account
The transfer price is actually used between 2 Profit Centers within a Company Code. Thus is the defination of Valuation Clearing Account applicable in our case? From the postings that I saw from your above reply regarding the recognition of AR/AP from both Profit center, is it here or other area where we config for such posting?
5) To assign additional Postings in PCA for Internal Goods Movement
Are the GL Account postings that you displayed in your above reply configured here? Do you encourage to use Valuation Grouping Code?
6) To assign additional Postings in PCA for Production Variance
Since we have a Production Plant, does that mean we would have to assign GL Accout Postings to account for Production Variance?
7) Define Special Handling for Internal Goods Movements
If possible, kindly enlighten for what kind of expenses or situation we should use this?
Activation of Material Ledger
1) Can we use the Standard ML as we will only be using the company code currency where in the Controlling Area, we are using Controlling Area Currency. For both The Co Code Currency and Controlling Area Currency is the same currency (SGD). Thus in this case, the ML will adopt the currency type from FI and CO?
2) To allocate the transfer price, we will need to create pricing conditions and access sequence.
Also we should be using the Actual Transfer Price Variant 000 for actual postings, is this reasonable?
3) Where do we store the transfer price in the Material Ledger (Material/Profit center)?
4) When the STO is created, based on the Material/Profit Center, will the STO automatically retrieve the price from the ML? Can the price be overwritten in the STO?
Your time and efforts in reading and response are greatly appreciated!
Best Regards
Edited by: wishy washy on Nov 30, 2008 11:16 AM

Hi Sridhar,
Thanks for the inputs.
Here, I am getting the new G/l values in all the related reports after running this transaction.
For example : A perticular G/l a/c say 333100 was having value 100000.
Now after running this transaction 1KEI , the new balance of the G/l has become 250000.
For all reporting purpose, this new value is flowing for that G/l. However, now we understand that previous value of 100000 was correct for the reporting style which we were carrying out uptill now.
As a result , we would like to have the value of this G/L as 100000 again as against the current value of 250000.
In short , I want to nullify/ reverse the effect of tr. code 1KEI.
How to achieve this?
Warm Regards,
George

Material ledger price difference

Hi experts,
I am getting price difference in material ledger. the difference is in beginning inventory and cumulative inventory. Any suggestion why this is happening. Pls help.
Regards,
Vivek

Thank you Eli and Sudhakar -
Eli - I have gone through the notes.
Sudhakar - after ML period end run total of all the price difference accounts should become zero. I think we need to group the accouns if we define seperate acclount for each key.
I would like to know advantages / Disadvantage if any, by having single GL a/c assigned to all the keys. I mean assigning the same GL to all the keys ( PRD,PRY and PRV) for the material (valuaion classes) that are with price Determination with 3. I will assign a seperate gl for PRD of materials ( valuation classes) that are with price det with 2.
Chris

Frozen price in material ledger

Dear all,
I need to have some informations about frozen price functionality in material ledger.
In particular:
- what is frozen price?
- where in customizing it is set?
- what is the system behavior using frozen price during production order confirmation?.
Kind regards
Flavia Borselli

Hi
I suspect standard price can only be saved once for any period. You can make use of the other price fields in the material master to store different prices
Thank You,

Material Ledger - Extraction of stock data (price & quantity)

Hi experts,
I'm trying to extract stock quantities & prices from CO-Material Ledger. The R/3 team passed me the following fields as required in BI to be able to calculate the exact figures:
CKMLCR-SALK3 - Value of total valuated stock
CKMLCR-STPRS - Standard price
MLCD-LBKUM - Total valuated stock
I don´t see that standard extractor 0CO_PC_ACT_1 includes any of these fields. Should they all be obtained thru "z" extraction?
Thanks & regards from Madrid,
Alvaro

Hi..
Refer to Data Inconsistency of BUOM in Material Ledger Tables

Transfer prices for Profit Center

Hello Gurus,
SAP describes the following regarding transfer prices
"In order to use transfer prices in the R/3 System, you need to store multiple valuation approaches in parallel throughout the accounting application components"
Does it mean if transfer price are set for valuation of internal goods movement between profit center, multiple valuation should be activated in other areas like FI (through currency and valuation profile), CO and MM (through Material ledger)
Any prerequisites to be done in FI and CO for this activation for transfer prices, not getting the right approach between multiple valuation and transfer prices
Any help is appreciated!!!
thanka
Nellikka

SAP provides mechanism to capture various prices involved in transfering goods to another intercompany or on behalf of intercompany. They are
Legal price (recorded in the company code and reflected in financial statement report to the country tax authorities)
Profit Center price (This price is agreed upon between the profit center managers) and
Group Price (The bare price, with no profit element, The group profit readily provides the profit made by the group, in the company that sells the goods to the final customer).
Once activated, the transfer price cannot be reversed within SAP. Also the Material ledger need to be activated with transaction based price determination to capture PC and Group prices.
To your question, "Does it mean if transfer price are set for valuation of internal goods movement between profit center, multiple valuation should be activated in other areas like FI (through currency and valuation profile), CO and MM (through Material ledger)"
the answer is yes.

Transfer price (Internal Reveue to be allocated to Production cost Center)

Hi Sap Gurus.
My cleint using tranfer price without activiation material Ledger. The internal revenue should not reflect in Fi. For that we have created ztable and we will be able to transfer the stock between profit center and we are getting internal reveue to the sending profit sender and expenses to the receiving profit center finaally balance become a zero,(we are maintaing same gl account while doing transfer price). Now expense in receving profit center should consider as part of produt costing. how to allocate this expense to the production cost center when there is no balance.
Example
SENDING PLANT 1 MATERIAL 123456 MM PRICE (10) TP 15
RECEIVNING Plant 2 Material 123456 MM PRICE (10) TP 15
While taking STO system is posting with material master price 10, but in the production if they are using that material system should take 5 also . 10 is the cost and 5 is overhead.
help me out?

These are some few things I found out. Below is the result of a test I carried out when I tried to create a Settlement Rule for a statistical order.
Statistical order may not contain a settlement rule
Message no. KO188
Diagnosis
Order 12770, for which you are trying to create a settlement rule, is statistical.
System Response
Statistical orders cannot have a settlement rule because they cannot be settled.
Procedure
You could possibly remove the statistics indicator from the order (only if nothing has been posted to it yet).
I may be wrong but I have determined that, for production orders, you will have to use Standard Production Order Type and not a statistical order. The object class has to be production as well.
You will only be able to create a settlement rule if it is not a statistical order with the assignment category as ORD. Also, in your order type: Internal Order - Production, under general parameters, you will have to assign settlement profile 30 which is production order.
You may have to define planning profiles for co production orders, costing variant, valuation types. Maintain order types using KOT2. Example:
Order Type: PP01 Standard Production Order
Order Category: 10 PP Production Order
Number Range Interval: 1000000000--19999999999
Settlement Profile: abc
CO Partner Update: Semi-Active
Check of Classification
Next Maintain Settlement Profile: ABC Standard Production Order
Check off "To be Settled in Full
Default Allocation Structure: E.G: EB
Indicators: check off: 100% Validation. % settlement, equivalent numbers
Valid Receivers: 1 for most
Document Type: OS Order Settlement
Create Allocation etc.
Hope this gives you some pointers as to how to proceed.
Elias

Material Ledger Additional local currencies for company code

Hi Expert,
I would like to add a second local currency in the "Additional local currencies for company code" in order to have 2 currencies available for material ledger. (Material ledger is not yet activated for this company code)
The second local currency must be the group one "30". Could you please tell me wich valuation I have to choose ? 0 1 or 2.
I went on the SAP library but I didn't find something clear. I tried 1 but I have an error message...
Thanks and regards

Hello,
I also recommend:
1442153   Transfer price valuation for material transfers
532932    FAQ: Valuation logic with active material ledger
1253944   Activating actual average moving price posting logic w/ ML
Cheers

Material ledger Tables

Dear All,
Issue: Not able to post Good receipt due to the error that material does not exit.
Background: we have activated user exit in material master for material type ZROH and assigned a internal number range to it in MMNR. this user exit will append the material group mentioned during master creation in the internal code generated by system.
example PPMM is the material group and the internal code generated by system is 122222 so when we save the material in mm01 our material code is PPMM122222.
we are trying to do GR by 501 and now the material ledger function module is truncating PPMM from the material code and its trying to post document with 1222222. which then goes into error that material does not exist.
Analysis: I have checked in the MARA/MARC the material code is PPMM1222222. but i guess in some table whcih is relevant for material ledger system has stored internal material number 1222222.
So I am looking for tables or solution for this isssue

Hi Expert,
Please refer the SAP Standard Material Ledger Tables:
The following tables contain data that can appear in the material ledger documents:
Table - MLHD - Material Ledger Document: Header
Table - MLIT- Material Ledger Document: Items
Table - MLPP - Material Ledger Document: Posting Periods and Quantities
Table - MLPPF - Material Ledger Document: Field Groups (Posting Periods and Quantities)
Table - MLCR - Material Ledger Document: Currencies and Values
Table - MLCRF - Material Ledger Document: Field Groups (Currencies and Values)
Table - MLCRP - Material Ledger Document: Price Change (Currencies, Prices)
Table - MLMST - Material Ledger Document: Costing Run Header Data
Regards,
GK
SAP

Transfer Price capturing through material ledger

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