Transfer Price differences in COPA

Hi Experts,
A Sales Order is created in Plant A (of cocodeA) to an outside customer.   However, the product is procured from Plant B (cocodeB) of the same group.   Hence this triggers intercompany transaction.
In COPA, the transfer price values are showing some differences. say about 110.15 EUR on a quantity of say 15000 + units sold. eg. In CoCode-A, it is showing 65000 EUR and in CoCode-B the transfer price is 65110.15 EUR.
when I observed, it is found that the currencies in CoCode-A and CoCode-B are different (EUR & USD).   The transfer price per unit is 4.31 EUR. However, In Cocode-B, it is showing as 4.311230 EUR after converting from USD. (since CoCode-B the Cur USD).
Now, the question is how to overcome these difference in COPA.   same transfer price values are showing different in different company codes. as the volumes increase, the bigger the difference.
thanks in advance for ur reply.
priyanka.

No, that is not the case; the invoice amount corresponds to the total of the line items plus tax. I'll try to clarify the situation with an example:
Price of material MAT001 from PO: 1000,00 CUR
Price of material MAT001 as updated upon entry of incoming invoice: 1200,00 CUR
Tax percentage: 20%
Tax amount: 240,00 CUR
Invoice amount: 1440,00 CUR
Balance: 0,00
In such a case I get the error "Balance is not equal to zero: 200,00 CUR" because of the 200,00 CUR that doesn't get posted anywhere.

Similar Messages

Price Difference Account and Role of Cost Center.

Hi Experts,
How we can treat the Price difference account with respect to Cost & Financial P & L account.and what is the importance of Cost center for this Price Differences. can we allocate the Price difference of Common Profit center to main Profit Center?
With Regards,
SK

Hi,
What price differences are you referring to here ? Could you explain with a small example ?
Normally customers post price differences to COPA via OKB9
regards
Waman

Transfer Price-Intercompany Billing

Dear All,
I have a requirement where on customer invoice PI01 value is determined for each line item based on the net value of the Invoice line item. And PI01 is a percentage based condition type.
For Intercompany Invoice IV01 is having the reference conditon type PI01 and on IC invoice IV01 value should come as absolute amount only.
So kindly advice me how we can achieve this in the system.
TIA
KOGI

Hi,
In this case you can use PI02 and IV02 which are % condition types for transfer price. IV02 copies the value of PI02.
You can refer the below post as well.
[this post|Inter company condition type IV01 values are not chargeable;
Regards,
Palani

TRANSFER PRICE ON INTERCOMPANY ?

HI
IN THE DOCUMENTATION IT STATES:
MULTI ORG DOC:
The transfer price of the product is extracted from the price list associated with the two legal entities. Multi Org
PRICING MODULE
Prices applicable to the entire organization or to one operating unit- Pricing Module
WHERE IS THIS SETUP IN THE APPLICATION?
We are trying to run intercompany AR invoices and it seem to failing, because there is no transfer price.
Warning: Cannot retrieve transfer price for the item.
Where is this coming from ???
null

Hi,
In this case you can use PI02 and IV02 which are % condition types for transfer price. IV02 copies the value of PI02.
You can refer the below post as well.
[this post|Inter company condition type IV01 values are not chargeable;
Regards,
Palani

Transfer depreciation cost to COPA

Hi COPA gurus,
As i know, there is no way to assign assets to profit segment, and depreciation run is automatic, so how to transfer depreciation cost to COPA directly (not via cost center then allocation to profit segments)?
Another point, business transactions to have Profit segment found automatically using substitution are only transactions from MM modules (price differences, revaluation, inventory differences). So Is substitution not able to apply with depreciation posting in this case?
Could anyone show me, how does depreciation data transfer directly to COPA?
Thanks so much,
HuyenTT

Dear Pradeep
I have the similar issue.
With the cost center in asset master, CO-PA document is not generated.
Instead, Controlling document (CO object is CTR) is generated.
Without the cost conter in asset master, CO-PA document and
Controlling document(CO object CTR as statistics) is also generated.
But, as you mentioned, even with the cost center in asset master,
CO-PA and Controlling document should be generated, right?
Customization I've done are
- GGB1: Substitution
- OKB9: Flag-on to "profitability segment" for the Depreciation cost element
- OKC9: Activate 0_SCO10
If I miss something, pls let me know.
BR
Y.Kaneko

Price difference in miro

Dear All,
I have 2 scenario to book the price difference and I would like to know both impact.
Say this is based on standard price.
1) when the invoice amount different from the GR amount, I change the amount field in miro line item for each PO line item that already GR which got difference. The difference go to price difference account.
2) I do not care the PO line item which already GR but only manually book in price difference account in GL account tab for the difference between invoice and gr.
As the price difference will go to copa, may i know what is the implication or result for case 1 and case 2?
Thanks

Hi
There are n number of ways of doing things, In both of your above mentioned cases the differential amount will be debited to PRD or stock aaccount depending on your stock coverage.Had it been PRD as you say the amount will be fetched to Controlling as there is a definite expense recognised .Had there been Stock account there would be no amount transfer to COPA ,but eventually when you issue the material it is the expense account will will be debited and the amount will be fetched to Controlling .Thus in both the cases the accounting impact is the same it is only the realization time is different.
Regards
Sandeep

Price difference allocation of m-type '301'

Dear all,
for certain material, we using m-type '301-TF transfer plnt to plnt' to transfer the stock from one plant to another one. however, after price determination and revalution consumption, price difference can not allocate to these items(CKM3) .
would anyone help me?
thanks,
Ben

Hi Ben Wu,
Do not know how you processed CKMLCP. Anyway the alternative way to test this is select only one material for which stock transfers happened...
Step 1) run CKMF - Allow Material Price Determination
        2) run CKMH - Determine Material Prices (Single-Level)
        3) run CKMG - Allow Closing Entries
        4) run CKMI - Post Closing
From the first two step itself you can analyse whether the price determination considers the price difference. If so proceed to run 3rd and 4th step.
Then check CKM3 it would be fine.
Regards,
Velumani

Price Difference Accounts

I want to Post my variances created in my Production order settlement in to The Material Inventory accounts , How i can go ahead ?
My Issue on the Production server of MTO scenario with strategy 20 with moving average price valuation . at the end of the settlement i need to post the variances in to the same Inventry accounts instead hitting the Price difference accounts
Kindly help me in this regard
Regards
R.Rajaram

Hi
If the material has moving average indicator V in MM record, then depending on the volume of Inventory in stock, the variances are accounted.
I shall explain by way of an example:
A material has a moving average price of say $45 in MM record and has a quantity of say 80 units.
If the Production Order produces say 100 units at a price of say 50 and transferred to Inventory. Now we have 180 units at a total price of $8600, thus Moving average price is 8600/180=47.77. Goods issue is say 120 units ,Balance in inventory is now 60 units . Variance on the Production order arises is say $200.
Now the quantity of stock in Inventory is less than 100 (order produced quantity) by 40 units. Hence Variance is proportionately transferred as follows:
40/100*$200=$80 alone is transferred to Inventory account, balance $120 transferred to Price difference account. This is done because if we transfer the whole $200 to Inventory account, it will arbitrarily inflate the moving average price
If the Inventory level in the above case is more than the Prodn order quantity, then the entire variance is transferred to Inventory account.
Hope this is useful
S Jayaram

MM Price Difference Account

Hi,
Can anyone tell me the treatement of MM price difference account in Controlling. According to me we need to create it as a cost element and capture to one cost center to track the price difference account and allocate it to production cost centers by way of assessment. Is it true.Please explain me in detail.

Hi Prasanth,
You can create Price Difference Account as a Cost Element and you must make a default Account Assignment in OKB9. You may need to create a Cost Center for this. So, whenever some amount gets posted to this GL, automatically same value will flow to that Cost Center and you can use any allocation method to transfer that value to different Production Cost Centers.
Pls revert back for futher explanation...
Srikanth Munnaluri

Why is the price difference of apple products in different countries? For example in UAE price is different as compared to Germany?

Why is the price difference of apple products in different countries? For example in UAE price is different as compared to Germany?
MacBook Pro with retina price in US is USD1299 and same product price in Germany is 1299 Euro. Why???

Obviously all the answers up here are true.. but I think that was not the real meaning behind the question.
Every country has different currencies that not only convert differently to others but have a different and relative value for the inhabitants. For example although Forex says 1,3$ = 1€ for the average European and American 1$=1€.. that means that roughly inside your country what you buy inUS for 1$ you get in Europe for 1€ (ex: McDonalds hamburger).
Also each country has it's own taxes, different renting prices (for apple store), different VAT, etc...
But the real question is. Is Apple NEUTRAL to market conditions?
This means... does Apple adapt their margin on products to local conditions or not?
To make it simple... Let's say Apple ... everything considered... gets 100$ for an iPhone sold in US... Will Apple fix their price in other countries so that, after paying local taxes, local costs, etc... still.. for each iPhone they earn 100$ ??
Or they have different market strategies such as rising the prices in countries where people are richer and more likely to buy iPhones even if "overcharged"? Or on the other side.. do they lower prices in poor countries (obviously not under production cost) to help locals buy in Iphone?
I think that Apple is doing their best to stay neutral to the market.. that is... We want 100$ at the end of the day.. whatever...
So we have paradoxes because in some countries iPhone costs more while in these countries people earn less (and I think this is not random.. but happens because.. usually.. countries with more regulations and taxes are also countries with lower wages... but that's politics!)
Here is a small comparison of iPhone 6 (16 Gb version) prices:
USA 550€........................ Average GDP per person 51.704 $ (calculated with California sales tax)
Switzerland 629 €............ Average GDP per person 44.864$
United Kingdom 687€....... Average GDP per person 36.569 $
Gerany 699€.................... Average GDP per person 38.666 $
France 709€................... Average GDP per person 35.295 $
Italy 729€........................Average GDP per person 29.812 $
As you can see Apple seems not to care about living conditions in the country or about average wages etc.. they just have their price adjusted to local regulations and taxes. Europe has 2years warranty service for items sold in Apple Stores (and 1 for items sold in other stores where Apple is responsible only for the first year). We also have some other taxes... For example, here in Italy, we have a tax on hard drives (goes by the Gbyte) that affects any multimedia product. Tax is meant to finance artists whom you are supposedly "stealing" by having unauthorised copies on your portable device... (I know.. is ridiculous). Etc...

How to determine price difference account for 301 MT?

I know that 309 movement type is used for tranferring a material to another material . If the prices of two materials are different, price difference will go into transferring account determined by transaction key AUM.
301 movement type is used for transferring material A from plant 1000 to plant 2000. Suppose a scenerio:
plant 1000, material A, standard price 115,
plant 2000, material A, standard price 100,
so, if I use MB1B to do a transfer posting, the accounting entry must be:
Dr: stock posting account    100
     price difference account   15
   Cr: stock posting account   115
What I doubt is, in this scenerio, How to determine this price difference account in OMJJ and OBYC? It is also determined by transction key AUM like 309?
Hope you can help. Thanks.

I have checked that price difference account of 309 MT is also determined by AUM. But, from SAP documentation, AUM is described like this: "This transaction is used for transfer postings from one material to another if the complete value of the issuing material cannot be posted to the value of the receiving material. " So I think that AUM is is used for transferring one material to another material, not used for transferring a material from one plant to another plant. It is different therotically, I think. but, in practice, 301 and 309 both use AUM for price difference account.
THis is my doubt.

Transfer price without Material Ledger

Dear Expert,
I am not using material ledger.but how i will handle transper price without material ledger
I am going to do stock transfer of FG stock from Plant A to plant B.
Standard price in plant A is 10 rs and Plant B 15rs
FG stock in Recieving plant B will debit !5rs and sending plant credit with 10rs and difference of 5rs will store in Price difference a/c.
M i correct with above entry?
In that case how to handle transfer price?.
regards
RR

Hi Raman
No Trf Price possible w.o ML... No work around possible
What are you trying to achieve... Can you detail it.... For sure, you cant maintain multiple valuations for same mat w/o ML
br, Ajay M

Price Difference and Revaluation Accounts

Hi gurus,
Please tell me that, when system will hit Price Difference Accounts and Revaluation Accounts???
Thank YOu

Hi Gverma
Please note that price difference would happen on the following
1) If there is a difference between your PO and Invoice price, because GR/IR posting would always happen on PO price only, when you do the invoice verification and there is a differnce, system would post to the price difference to the extent of stock cosnumed ( if you have stock then system would post to inventory account)
2) regarding revlauation account, when there is difference in your Standard cost estimate with previous month, system posts the difference between current SCE and previous month SCE on the stock.
3) I am not sure, when you do a material to material transfer also system may post to price difference.
Regards
Chandrasekaran A

Price difference posting at the time of IR based on GR

Hi,
I had a PO for 10 pieces @ 10, GR for 10 pieces @10, but i got a invoice from vendor for 10 piece @12.
so what can be the possible entries at the time of IR for Price difference; like, it should be posted to material account / it should post to price difference account. How can we configure the same? is price control indicator do play any roll here?
Please try to give as much as information as you can.
Thanks !

Hi
While posting invoice through MIRO, system takes into acccount either Stock or Price differences. To understand more.....
If the stock is available, then the system transfer that amount to inventory. if the stock is not avaiable system transfers that amount to price differences account.
If the stock is partly available, then system generates 4 line items. while doing invoice in the moving Avg price(V)
GR/IR Account               DR
Inventory acccount        DR (In Case of Price increase due to escalation clause)
Price diff. account          DR (In Case of Price increase due to escalation clause)
          To Vendor account
          To Inventory acccount        DR (In Case of Price decrease due to escalation clause)
          To Price diff. account          DR (In Case of Price decrease due to escalation clause)
In the above entry only one will be applicable regarding diffrences posting either price decrease or price increase.In the case of Oil (HSD)these fluctuations are very common.
Edited by: ANJIREDDYA on May 31, 2010 11:36 AM

Profit segment okb9 price difference

Dear Forum,
I have price difference account maintained in okb9 with a tick at profit segment.
I test to post this price difference account in FB01 and i can see it gets posted in COPA price difference value field.
My question is, how does the system know this account need to update in COPa price difference value field? Even with a tick at okb9 prfseg, still how can the system know which value field to post to in COPA?
Need forum help of which tcode i can see the mapping as besides price difference account, also got other account with a tick at prfseg in okb9.
Thank you.

Dear,
Thanks. I found it in kei2.
In assignment lines, I can see a list of assignment with number. For price difference, it is assignment 287 But I would like to know how does the system know 287 is price difference? The system will go through each assignment lines and its source to check the account group, if gl account in the group then it will assign to value field? If this is the case, then assignment number 287 has no meaning to system?
Thanks

Transfer Price differences in COPA

Similar Messages

Maybe you are looking for