of 12
8/12/2019 f1 Thomas Kaiser
1/12
Transfer Prices
Thomas KaiserDirector Regional Solution Center, SAP
8/12/2019 f1 Thomas Kaiser
2/12
SAP AG 2001, Title of Presentation, Speaker Name 2
Contents
Introduction to Transfer Prices1
Questions / Discussion2
8/12/2019 f1 Thomas Kaiser
3/12
SAP AG 2001, Title of Presentation, Speaker Name 3
Views of an Enterprise
BRA
J
MEX
D
USAF
E
Legal (mandatory) view of an independent balancing entity
Corporate view of the entire enterprise as a whole
Corporate
Group
Bu
siness
Line 1
Business
Line 2
America Europe Asia
Profit-Center view of decentralized areas of responsibility
8/12/2019 f1 Thomas Kaiser
4/12
SAP AG 2001, Title of Presentation, Speaker Name 4
Objectives of Transfer Prices
Legal View
optimization of tax payments
fullfillment of legal requirements
Corporate View
controlling for the corporate group as a whole (act as a unit) profitability reporting based on corporate group costing
elimination of intercompany profit from stock
Profit-Center View evaluation of profitability of business units
controlling and coordination of areas of responsibility
8/12/2019 f1 Thomas Kaiser
5/12
SAP AG 2001, Title of Presentation, Speaker Name 5
Parallel Valuation Approaches
Group View Legal View Profit Center View
Profit Center 1
CoCd 1 CoCd 2 CoCd 3 CoCd 4
Group
Profit Center 2
8/12/2019 f1 Thomas Kaiser
6/12
SAP AG 2001, Title of Presentation, Speaker Name 6
PCA
Profit Center 1 Profit Center 2
FICO-
OM
CO-
PA
D
irectcosts
Overheadcosts
Material Ledger
CO-
PC
or or
LGP
Process
and
data
VA
L
U
E
F
L
O
WLGP
StockLGP
Parallel Value Flows in Financials
8/12/2019 f1 Thomas Kaiser
7/12
8/12/2019 f1 Thomas Kaiser
8/12 SAP AG 2001, Title of Presentation, Speaker Name 8
Production
Order
Sales
Order
Cost center
Production
Order
Semifin.
Material
Raw
Material
Distribution
CenterFinished
Product
Transfer Prices for Goods Movements
Company Code 2 Company Code 3Company Code 1
PrCtr1 PrCtr2 PrCtr3 PrCtr4
75100
120
CCtr 20
Assumed Plan = Actual => No Variances
220
240
L 120
G 100
P 140L 120
G 100
P 140
L 80
G 80
P 85
G 70
L 70
P 70 P 240
G 100
L 220
CCtr 10
L 80
G 80
P 85
8/12/2019 f1 Thomas Kaiser
9/12 SAP AG 2001, Title of Presentation, Speaker Name 9
Transfer Prices in PCA
Profit center 1 Profit center 2
PCA
Transferpreis
150
Quantity flow
Parallel Value Flows
120
MaterialProduction
Order
Logistics
FI/CO
Transfer Price75
8/12/2019 f1 Thomas Kaiser
10/12 SAP AG 2001, Title of Presentation, Speaker Name 10
Flexible Pricing Procedure
0001 C
- - -
0001 A X100 X200
0002 B X100 X300
- - -
0001 PROD1 X200
0001 PROD2 X300
- - -
5.5%
5%
6.25%
Transfer Price
Plant Product Group
Plant Prod.grp PrCtr Rec.PrCtr
Plant Material PrCtr
TP Markup
TP Markup
1200 DEM
1500 DEM
8/12/2019 f1 Thomas Kaiser
11/12 SAP AG 2001, Title of Presentation, Speaker Name 11
Transfer Prices in PCA
Profit Center 1 Profit Center 2
PCA
Quantity Flow
Parallel Value Flows
120
MaterialProduction
Order
Logistics
FI/CO
Material
Consumption + 75
Internal Revenue: - 75
Cost of Sales + 70
Stock - 70
8/12/2019 f1 Thomas Kaiser
12/12 SAP AG 2001, Title of Presentation, Speaker Name 12
Production
Order
Raw
Material
Company Code 1
PrCtr1 PrCtr2
75
L 70
P 75L 70
P 70
Posting Logic: Example
Financial Accounting/Profit Center Accounting:
Controlling: Production Order
Profitability Analysis:
P L
PrCtr1 / PrCtr2 Inventory -70 -70PrCtr1 / PrCtr2 Internal Revenues -75
PrCtr1 / PrCtr2 Changes in Stock 70
PrCtr2 / PrCtr1 Consumption Material 75 70
P LPrCtr2 / PrCtr1 Consumption Material 75 70
Profitability Internal Revenue 75
Segement Cogs -70
