Transfer price mechanism between profit centers

Hi friends,
My requirement is how to maintain Transfer price Mechanism between Profit Centers with in the Plant. If the transfer price mechanism is between the plant we should activate MATERIAL LEDGER our client not require Material Ledger concept.
But here we are having 3 profit centers with in one plant only so they require Transfer price mechanism between profit centers to show the dept wise profits in Financial Statements between the Departments (profit Centers) this postings should be done automatically in the respective profit centers.
So friends my Q is how to configure Transfer Price mechanism between the profit centers. Please suggest me.

Hi,
You need to to maintain Conditions in the basic settings.There you need to maintain for Material, Overhead etc and need to maintain access sequences.
You need to assign accounts with T.Code 0KEK.
While doing transfer from plant to other plant the system generates value based on the condtions you maintained.
Thanks and regards.
S.Subbiah.

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Display of internal revenues between profit centers in FI (FAGLL03)

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I need to do transfer posting ( Storage location to Storage Location ) between two profit centers which are in the same plant. I need to have the line item to display the internal revenue to the sender profit center and cost to the receiving profit center.
I maintained accounts for the mapping of internal goods movements between profit centers (Transaction 0KEK "Account Determination for Internal Goods Movements"). But the additional line items are not reflected.
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Bhaskar

Hi ,
This requirement is achieved through configuration.
Thanks

Transfer of Paybles to Receivables between Profit Centers

HI Gurus
We have the following scenario.
There are four plants, each plant is defined as Profit Center and Credit Control Area also.
Now we have payable for a Vendor (who is also a customer) in one profit Center and we need to transfer the payable to the
customer, whose receivables are in other Profit Center and Credit Control Area.
Now our requirement is when we transfer payable to receivable it should debit and credit the sender and receiver profit centers, which is not happening now and because of this credit control area receivables is also not reduced though we have option to enter the Credit Control Area while using T Code F-51.
Can any one suggest how to resolve the issue.
Regards
Chandru

Step1: Define your Distribution cycle in t.code: 4ke1
Step 2: Run the distribution cycle in t.code: 4ke5
Step3: Closing Profit center i.e. locking from postings(Not deleting) through Tcode-KE52. in that check the box Lock indicator in the tab Indicators. after that make it active again. then it will be locked to postings. so when ever any user pick this pctr it will give error messg.
Hope this helps.
Please assign points as way to say thanks.
Message was edited by: Ravi Rana

Transfer Prices between different departments in the medical center

Hello,
Here are internal service sales between different departments in the same medical center. For example: Radiology center/department sells X-rays services for the cardiology center. We need the ability to sell a service to a different department in a different price than to an external payer/customer/insurance provider.
Is it possible to implement profit center transfer prices along with the ISH_CO integration?,
How is it getting along with the posting of internal activity allocation when services transfer to Controlling?
At standard the costs are allocated (by means of internal activity allocation) between profit centers. The responsible cost center (assigned to the performing organization unit) is credited and the case based order (which is assigned to different profit center) is debited.
Is it possible to implement transfer prices in case the performing organizational units are connected to the same profit center? (because some of departments are subdivided to several medical organizational units; and each unit represents a different cost center at the same profit center/department).
Do you recommend defining a different profit center also for each sub-department?
Do you have any other proposed solution for this issue?.
Best Regards,
Yael

Hello,
Here are internal service sales between different departments in the same medical center. For example: Radiology center/department sells X-rays services for the cardiology center. We need the ability to sell a service to a different department in a different price than to an external payer/customer/insurance provider.
Is it possible to implement profit center transfer prices along with the ISH_CO integration?,
How is it getting along with the posting of internal activity allocation when services transfer to Controlling?
At standard the costs are allocated (by means of internal activity allocation) between profit centers. The responsible cost center (assigned to the performing organization unit) is credited and the case based order (which is assigned to different profit center) is debited.
Is it possible to implement transfer prices in case the performing organizational units are connected to the same profit center? (because some of departments are subdivided to several medical organizational units; and each unit represents a different cost center at the same profit center/department).
Do you recommend defining a different profit center also for each sub-department?
Do you have any other proposed solution for this issue?.
Best Regards,
Yael

Profit center Transfer Prices

Is it only possible to work with transfer prices when selling goods between profit centers?
Is it also possible in case of selling services between profit centers? .
Does it require implemetation of the SD module?
Thanks is advance,
Yael

Hi,
I think it should be possible to work based both on services and goods.
Thanks
Aravind

Profit center balances transfer from old profit centers to new profit cente

Dear All,
My client wants to deactivate all cost centers and profit centers and create new cost centers and new profit centers for new fiscal year 2009.
So here my queries are
1. Putting an end date to the existing cost center and creating the New cost center now itself in the system with effective date as 1st April 09?
    I changed validity period in cost center but it does not accept.
2. How to restrict postings to profit center from April, 2009 ? even changed validity period and changed as inactive mode in profit center,
    It is allowing postings to profit center.
3. How the balances need to be transferred to New profit centers? I tried in 9KE0 T.code but in this T.code we can transfer profit center and GL A/C wise
    but here we have around 20 profit centers and 100 above Gls, so it will take so much of time, so kindly suggest me short way.
4. And When can we transfer balances to New profit centers i.e April 1st or after completions of Audit? because client wants to post pending transactions of 2008 FY
    to old profit centers in April and May months. So in this situation how can i proceed?
5. For mapping the Assets & Liabilities balances as on 31st Mar 2009 to New profit center the following need to be provided
    A. Profit center wise Trail balance
        ( For this i suggested S_PL0_86000030 t.code) is this correct?
    B. Profit center wise Balances of Subsidiary Ledgers i.e Vendors, Customers & Assets
6. On which date I can close 2008 FY& open 2009 fiscal year for Assets?
Please guide and provide me solutions above my queries.
This would be great help for me, Thanks in advance.
Thanks & Regards,

1.     You can block cost centers and profit centers and create new or can use same by changing analysis period Eg: KS02 > Edit > Analysis period
2.     Select lock indicator in profit center master record
3.     Write LSMW to that
6. At the end of you fiscal year close the asset period and do all year end transactions and open new asset period
You can use S_PL0_86000030 check it
Kesh

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

Transfer pricing configurations in Profit Center accounting

Hi SAP Gurus,
Whether for performing transfer pricing configurations in Profit center accounting and performing transfer pricing transactions whether activation of material ledger is compulsory.

No its not compulsory.You have to do only if you want to track internal revenues i.e goods or services transfer between profit centers.

Repostings of data in profit centers

Hi!
any one can tell me can we report revenues between profit centers as we will done in the case of Cost Centers ( KB11N,KB61)?
Not through distribution and assessment.
I have configured some revenue elements to internal order in OKB9 and in internal order profit center is assigned.
As we forgotten to insert profit center in internal orders, all revenues posted to Dummy profit center.
Now we want to repost from dummy profit center to actual profit center.
regs,
ramesh

Hi,
You can always repost the values from dummy profit center to correct profit center.
Please try the relevent option.
Let me know if u have questions
Best Regards
Surya

Transferring receivables to profit centers

hi
we are using ecc 6.0, i want to transfer customer receivables to profit centers. i didnot maintain customer receivable account in 3keh. i have done f.5d, but receivables are not transferring to profit centers. <b>do we need to do 1kek in ecc 6.0 also plz respond</b>
thanks
monica

Hi,
- F.5D splits or breaks down each document
- 1KEK transfers it to PCA.
- run F.5D and 1KEK in succession and check transfer in PCA
Rgds.

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

CO Account Assignments have different profit centers while doing AFAB

Hello Everyone,
I am facing an error while running a depreciation run.. I run AFAB and schedule the background job but it gets cancelled with a message "CO Account Assignments have different profit centers".
Now, the spool is not showing any errors and I am not able to trace that where am I getting stuck up!
Can there be a possibility of different profit centers to one posting of asset? If so, how?
Your help is awaited!
Thanks a lot,
Ankush

HI
Check the profit centers of the cost center ad that of the order , if these 2 are different then it has to also post in FI since Profit centers has been attched to FI unless you have defined adjustment a/cs for transaction between profit centers it will not allow the transaction
Anand

Transfer Price between plants belonging to same legal entities

Hello,
I have a scenarios. One plant is selling a part to other plant at a margin. Both plants belongs to the same legal entity.
How can I map this scenario in SAP?
What will be the cost of my part in these two plants?
What mechanism I would use to transfer the stock from supplying plant to the buying plant?
Your urgent reply is appreciated.
Thanks,

Hi
This is known as Transfer pricing strategy in SAP. When you have two profit centers within a cotrolling area who are responsible for profitability of their products.
Hence one profit center would like to sell at the different price than the actual cost price and hence you can derive profit between the profit center through inter plant sales / transfers.
You need to activate Material Ledger / Actual costing, Multiple Valuations to implement Transfer Pricing.
Material Ledger / Actual costing
http://help.sap.com/saphelp_erp2005vp/helpdata/en/d2/cb532d455611d189710000e8322d00/frameset.htm
Multiple Valuations / Transfer Pricing
http://help.sap.com/saphelp_47x200/helpdata/en/eb/13811243c411d1896f0000e8322d00/frameset.htm
Regards,
Suraj

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.

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

Transfer price mechanism between profit centers

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