actual cost & transfer price-4
TRANSCRIPT
SAP AG
Actual Costs and
Transfer Prices
in Material Valuation and Product Cost Controlling
SAP AG
Actual Costs and Transfer Prices
SAP AG
Course Overview Diagram I
1.1. Introduction and Definition of Terms
2.2. Fundamentals of the Transfer Pricing Solution
4.4.
5.5.
Transfer Prices in the Various Applications
Posting Examples
3.3. Transfer Prices from the Viewpoint of PCA
6.6.
New Functions in PCA
SAP AG
Corporate Executive Board
?
Strategic Enterprise Control
BRA
Legal view - that of the independent legal companies Group view - that of the organization as a whole Profit center view - that of the decentralized responsibility areas
Division A
Division B
J
America Europe/Africa Asia
MEX
D
USAF
E
SAP AG
Parallel Valuation Approaches
Group view Legal view Profit center view
Profit center 1CoCd 1 CoCd 2 CoCd 3 CoCd 4
Group
Profit center 2
SAP AG
Definition of a Transfer Price
A transfer price is a price used to valuate the transfer
of goods and services between independent
organizational units.
SAP AG
Transfer Prices in the R/3 System
Controlling area
PCAPCA
FIFI
COCO
Transfer price from the group viewpoint = group production costsTransfer price from the profit center viewpoint = management priceTransfer price from the legal viewpoint = sales and purchase price
Company code
Profit center
SAP AG
Parallel Valuation Approaches
Semifin.material
Distributioncenter Sales
order
Finishedproduct
Rawmaterial
Productionorder
Cost center
Productionorder
SAP AG
Productionorder
Salesorder
Cost center
Company code 1PrCtr1 PrCtr2 PrCtr3 PrCtr4
75100
120
CCtr 20
Assumed Plan = Actual => No Variances
220
240
Company code 2 Company code 3
Productionorder
Semifin.material
Rawmaterial
Distributioncenter
Finishedproduct
L 120G 90P 140
L 120G 90P 140
L 70G 70P 75
L 70G 70P 75
G 70L 70
P 70 P 240G 90L 220
Parallel Valuation Approaches
SAP AG
Course Overview Diagram II
1.1. Introduction and Definition of Terms
2.2. Fundamentals of the Transfer Pricing Solution
4.4.
5.5.
Transfer Prices in the Various Applications
Posting Examples
3.3. Transfer Prices from the Viewpoint of PCA
6.6.
New Functions in PCA
SAP AG
PCAPCA
Profit center 1 Profit center 2
Quantity and Value Flow
FIFICO-CO-OMOM CO-CO-
PAPA
Dire
ct c
osts CO-CO-
PCPC
Ove
rhea
d co
sts
Purchase Production Transfer SaleProcess
anddata
VALUE
FLOW
SAP AG
PCAPCA
Profit center 1 Profit center 2
FIFICO-CO-OMOM
CO-CO-PAPA
Dire
ct c
osts
Ove
rhea
d co
sts
Material Ledger
CO-CO-PCPC
or or
LGP
Process anddata
VALUE
FLOW L
GP
StockLGP
The Concept of Parallel Value Flows
SAP AG
Currency and Valuation Profile
Currency type
Valuation
0
1
2
Company code currency Group currency
10 30
10Leg.
30PrCtr.
30Grp
Legal
Group
PrCtr
SAP AG
Activating the C & V Profile
.CO-CO-OMOM
Controlling
CO-CO-PCPC
MaterialLedger
C & VProfile
Activate
Cur.Leg.
Cur.Leg.
Leg.Cur.
Cur.Grp
Cur.Grp
Cur.Grp
Cur.PrCtr
Cur.PrCtr
Cur.PrCtr
SAP AG
Scenarios
or orPCAPCA
Profit Center Accounting
FIFI
Financial Accounting
mand.
opt.
opt.
CO-CO-OMOM
Controlling
CO-CO-PCPC
CO-CO-PAPA
mand.Material Ledger
FI-AAFI-AA
MLML Cur.Leg.
Cur.Leg.
Cur.Leg.
Cur.Leg.
Cur.Leg.
Cur.Grp
Cur.Grp
Cur.Grp
Cur.Grp
Cur.Grp
Cur.PrCtr
Cur.PrCtr
Cur.PrCtr
Cur.PrCtr
Cur.PrCtr
mand. opt.
opt.
opt.
SAP AG
Example I - Group Valuation
PCAPCA
Profit Center Accounting
FIFI
Financial Accounting
CO-CO-OMOM
Controlling
CO-CO-PCPC
CO-CO-PAPA
Material Ledger
operational
Cur.Grp
Cur.Grp
Cur.Grp
Cur.Leg.
Cur.Grp
Cur.Leg.
Cur.Leg.
Cur.Grp
Cur.Leg.
FI-AAFI-AA
SAP AG
Example II - PCA Valuation
Profit Center Accounting
FIFI
Financial Accounting
CO-CO-OMOM
Controlling
CO-CO-PCPC
CO-CO-PAPA
Material Ledger
operational
Cur.PrCtr
Cur.PrCtr
Cur.PrCtr
Cur.PrCtr
Cur.PrCtr
Cur.Leg.
Cur.Leg.
Cur.Leg.
Cur.Leg.
PCAPCA
FI-AAFI-AA
SAP AG
Summary I
Parallel value flows throughout all of Financials
The valuation approaches stored in the system are defined in the currency and valuation profile.
You can store up to - 3 valuations in - 2 currenciesthroughout your system.
SAP AG
Summary II
Inventory is valuated using all active valuation approaches in parallel.
The material ledger is a subsidiary ledger in inventory accounting.
Inventories are valuated by plant or company code in the R/3 System.
Inventories of one material in one plant always belong to the same profit center.
SAP AG
No influence on posting logic.Parallel values posted to the same
accounts.Parallel valuation approaches are currently
only supported for goods movements.
Summary III
SAP AG
Course Overview Diagram III
1.1. Introduction and Definition of Terms
2.2. Fundamentals of the Transfer Pricing Solution
4.4.
5.5.
Transfer Prices in the Various Applications
Posting Examples
3.3. Transfer Prices from the Viewpoint of PCA
6.6.
New Functions in PCA
SAP AG
Transfer Prices Between Profit Centers
TP TP
TP
TP
TP
SAP AG
Goods movements valuated with sale orpurchase price
Goods movements valuated with group cost of goods manufactured
Goods movements valuated with internally agreed prices
Valuation Approaches in PCA
Legal
Group
Profit center
SAP AG
Transfer Prices in PCA
Profit center 1 Profit center 2
PCA
Transferpreis 150
Quantity flow
Parallel value flows
120Material
Productionorder
Logistics
FI/CO
Transfer price150
SAP AG
Transfer Prices in PCA
Profit center 1 Profit center 2
PCA
Quantity flow
Parallel value flows
120Material
Productionorder
Logistics
FI/CO
Materialconsumption 150
Internal revenue: - 150
Cost of sales + 120Stock - 120
SAP AG
Flexible Transfer Pricing
0001 C- - -
0001 A X100 X2000002 B X100 X300- - -
0001 PROD1 X2000001 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 DEM1500 DEM
SAP AG
Customizing for Transfer Pricing
Transfer price
Pricing procedure Condition types
Access seq.
Condition tables
SAP AG
TP01Calc. rule CCond.class B
TPB1Calc. rule CCond.class B
TP02Calc. rule ACond.class A
Variant for transfer pricing: 0
Fixed price 150
Calc. price 95
Markup 10%
Pricing procedureStep Condition type From To Cond.formula 10 TP0120 TPB1 10030 TP02 20 20
Customizing for Transfer Pricing
SAP AG
Planning - Valuation with PCA Cost Est.
HALB1
FERT- REP
HALB2
MGK 500,-
HALB3
MEK 1800, - MGK 500,
PrCtr 1 PrCtr 2
TP 3000,-
MEK 1400,-MEK 1000
HALB1 1ST 400000 1000,-HALB2 2St 412000 1400,-HALB3 1ST ‚Lief.v.anderen‘ 3000,-.
PrCtr: X100 Material FERT-REPPlanversion: 001Jahr: 1999
MGK 800,-
SEMI1
PROD- REP
SEMI2
MOH 500
SEMI3
MDC 1800 MOH 500
PrCtr 1 PrCtr 2
TP 3000
MDC 1400MDC 1000
SEMI1 1unit 400000 1000SEMI2 2units 412000 1400SEMI3 1unit "Goods from other PrCtrs" 3000
PrCtr: X100 Material PROD-REPPlan version: 001Year: 1999
MOH 800
SAP AG
Planning - Valuation with Transfer Prices
PrCtr Receiver PrCtr Material Plant Transfer price
X100 X200 REP-1 0001 1200 USD
X100 X300 REP-2 0001 1000 USD
PrCtr PPrCtr Acct Material Plant Qty
X100 X200 800000 REP-1 0001 10 un. X100 X300 800000 REP-2 0001 5 un.
Revenue
12,000 5,000
PrCtr: X100Plan version: 001Year: 1999
SAP AG
Analysis of Profit Centers in CO-PA
PrCtr X100 PrCtr X200
L 70G 60
P 70
PrCtr X300
Company code 0001
SEMI PROD
10
P 85
L 80
L 100G 70
P 120
Val. CoCd PrCtr Mat. Rev. Costs CCtr/Group
PCA 0001 X100 SEMI 75 70
Legal 0001 X200 PROD 100 80 70PCA 0001 X200 PROD 120 85
Company code 0002
G 70
PCA 75 PCA 120CCtr
L 80G 70P 85
SAP AG
Summary I
Profit centers earn profit just like independent companies.
Goods movements can be valuated using transfer prices.
Goods movements between profit centers can be analyzed in CO-PA.
No internal payables/receivables are posted.
SAP AG
Summary II
Transfer prices are calculated using conditions.
Plan costs are taken from the profit center cost estimate.
Plan revenues are found using transfer pricing.
SAP AG
Course Overview Diagram IV
1.1. Introduction and Definition of Terms
2.2. Fundamentals of the Transfer Pricing Solution
4.4.
5.5.
Transfer Prices in the Various Applications
Posting Examples
3.3. Transfer Prices from the Viewpoint of PCA
6.6.
New Functions in PCA
SAP AG
Parallel Valuation Approaches in FI
FIFI General Ledger
Currency andValuation Profile
Valuation Currency type
Legal Company code currencyGroup Group currencyPCA Group currency
Legal
Group
PCA
Document
SAP AG
Parallel Valuation Approaches in FI-AA
AAAAIMIM
Cap. investm. order
L 50 G 40 P 60
Depreciation area
Area Cur.type
50 01 1040 11 3160 21 32
Settleto asset
SAP AG
Parallel Valuation Approaches in CO
Currency and valuation profile
Legal Company code currencyGroup Group currencyPCA Group currency
Actual version 002
Actual version 001
Actual version 000
CO area currencyObject currency
CO data
Transaction currency
Valuation Currency type
COCO
SAP AG
TP 700 USD
Additional Actual Versions in CO
Legal 500
PrCtr 600
Group 400-300 DEM
Material Overhead
700 70 DEM
400 500
70
70
PrCtr 1
operational70
PrCtr 2
SAP AG
Internal revenues- Variable COS_____________________ Contribution margin I- Fixed COS_____________________
Contribution margin II- Overhead
. . .
_____________________
Operating result
Transfer Prices in CO-PA
Company code 1PrCtr1 PrCtr2 PrCtr3
75100
120- +
Company code 2
L 100G 70P 120
L 70G 70P 75
G 70L 70
P 70
Prof
itce
nter
Company code
Product
L 70G 70P 75
Profitability report:PrCtr1
SAP AG
Legal
PrCtr Group
Material Costing
Inventory Management
Invoice Verification
Production Order Delivery
Production Order Settlement
Material Inventories
SAP AG
Product Cost Planning
Material Activity Overhead Profit St.price
DEM 1000.00 100.00 100.00 1200.00
USD 170.00 50.00 50.00
$330
$230 $270.00
USD 400.00 50.00 50.00 $500.00
Controlling areaCO-CO-PCPC
Legal mat. cost estimate
Group cost estimate
Profit center cost estimate
Legal 1200
PrCtr $500
Group $270
SAP AG
Reporting - Group Costing
+
-+
+
-+
0812347-1235485855967-0956/434
Company code 0001 Company code 0002 Company code 0003
Profit center PC - 1Profit center PC - 3Profit center PC - 5Profit center PC - 9
30,000 34,400 4,40045,000 47,000 2,00054,000 63,900 9,90012,500 13,500 1,00020,000 22,500 2,50021,500 27,900 6,40010,000 11,000 1,000
9,000 15,000 3,000 500 900 400
2,000 1,000 2,000
Material number Material Production Profit
. . .
SAP AG
Group Costing
Company A Company B Company C
DC = Direct CostsPOH = Proportional OverheadFOH = Fixed OverheadP = Profit (Revenue ./. Full Costs)Index A, B, C = Company A, B, C
Group CE Standard CE Group CE Standard CE
DCA
POHA FOHA
PA
DCA
POHA FOHA
DCB
POHB FOHB
DCB
POHB FOHB
DCA
POHA FOHA
DCB
POHB FOHB
PB
Broken down Total
POHC FOHC POHC FOHC
PC
POHA FOHA
POHB FOHB
POHC FOHC
PB
PC
DCC
DCC
DCA
DCB
DCC
DC
P
POH FOH
GroupGroup = Standard CE
PA
PA
PB PB
PC
PA
SAP AG
CoCd BX03, Plant WX09CoCd BX03, Plant WX09PrCtr X400
CoCd BX02, Plant WX03CoCd BX02, Plant WX03
PrCtr X300
PrCtr X100
Stock transfer Stock transfer Sale: 300DMSale: 300DM
PrCtr transfer: 240 DMPrCtr transfer: 240 DM
Production in another plantProduction in another plant
Sale Sale = = PrCtr transferPrCtr transfer: 800 DM: 800 DM
PrCtr transfer: 200 DMPrCtr transfer: 200 DM
GROUP
FINISH
SEMI
RAW 1 RAW 1
RAW 2
SEMI
Legal sale price
Profit center transfer priceMarkup: 20% on material
Example: Value-Added Chain I
SAP AG
PrCtr X400
RAW 1 Material Activity Overhead Profit PrCtr Profit CoCd Price M L(L) US$ 100,00 100,00(G) DEM 200,00 200,00(P) DEM 200,00 200,00
PrCtr X300
RAW 1 Material Activity Overhead Profit PrCtr Profit CoCd Price M L(L) DEM 300,00 300,00(G) DEM 200,00 40,00 100,00 200,00(P) DEM 240,00 240,00
PrCtr X100
RAW 2 Material Activity Overhead Profit PrCtr Profit CoCd Price M L(L) DEM 150,00 150,00(G) DEM 150,00 150,00(P) DEM 150,00 150,00
SEMI Material Activity Overhead Profit PrCtr Profit CoCd Price M L(L) DEM 450,00 200,00 44,00 694,00(G) DEM 350,00 200,00 44,00 90,00 100,00 594,00(P) DEM 440,00 200,00 44,00 684,00
SEMI Material Activity Overhead Profit PrCtr Profit CoCd Price M L(L) US$ 400,00 400,00(G) DEM 350,00 200,00 44,00 206,00 206,00 594,00(P) DEM 800,00 800,00
FINISH Material Activity Overhead Profit PrCtr Profit CoCd Price M L(L) US$ 400,00 50,00 40,00 490,00(G) DEM 350,00 300,00 124,00 206,00 206,00 774,00(P) DEM 800,00 100,00 80,00 980,00
300 DM300 DM
800 DM800 DM
200 DM200 DM
CoCd BX03, Plant WX09CoCd BX03, Plant WX09 CoCd BX02, Plant WX03CoCd BX02, Plant WX03 GROUP
240 DM240 DM
800 DM800 DM
Legal sale price
Profit center transfer priceMarkup: 20% on material
S56_100-400
S56_100-431
S56_100-120
S56_100-431
S56_100-400
S56_P-100
Example: Value-Added Chain II
SAP AG
Purchasing and Sales
PrCtr1 PrCtr 2
L 70G 70P 75
L 100G 70P 120
100
Company A Company B
IDOC
Goods issue
Goods receipt
Stock transferorder
Invoice receipt
Invoice issue
120
SAP AG
Pricing in SD
Which conditions are required?
Revenue conditions for all valuation approaches in the system
Cost conditions for the valuation approaches used in CO-PA
The following conditions are delivered with the standard SAP system:
KW00 Revenues/Costs in the Group Valuation Approach PC00 Revenues in the Profit Center Valuation Approach PCVP Costs in the Profit Center Valuation Approach
SAP AG
Pricing in SD
Group Valuation KW00 Revenues/Costs
Type b, statistical
PCA Valuation PC00 Revenues
Type c, statistical
PCVP CostsType h, statistical
Type h reads the material ledger price in the profit center valuation
Type c performs pricing for the profit center valuation
Type b reads the material ledger price in the group valuation
Up to and including Release 4.5, no conditions of type b were transferred to CO-PA. Group costs of goods manufactured are transferred to CO-PA from the corresponding costing or from a user exit
SAP AG
Posting Example
Sale between companies within the group
FIFI
L - LegalG - Group
Goods usageL 50G 40
ReceivablesL 150G 150
RevenuesL 130G 40
Sales taxL 20G 20
StockL 50G 40
StockL 80 G 40
GR/IRL 80 G 40
IC profit acctL G 90 IC profit acct
L G 90
Price diff.L 50G
Input taxL 20 G 20
VendorL 150G 150
GR/IRL 80 G 40
Goods issueGoods receipt
Invoice receiptBilling document
SAP AG
Account Categories
FIFIAccounts with parallel valuation
Accounts without parallel valuation
Clearing accounts
L 150G 150
VAC
L 130G 130
ReceivablesL 20G 20
Input taxL 20G 20
Sales taxL 150G 150
Vendor
L 130G 40
RevenuesL 50G 40
Stock
L 80 130G 75 40
GR/IR
L 50G 40
Usage
L 50G 40
Change in stk
L 50G
Price diff.
L 50G 40
Expense
SAP AG
Summary I
Parallel valuations in FI follow the same logic as the parallel currencies.
No influence on posting logic. Parallel values posted to the same accounts. Additional accounts only required for:
- Clearing of payables and receivables- Internal revenues and costs
SAP AG
Summary II
In FI-AA the parallel valuations are stored in different depreciation areas.
In CO the parallel valuation approaches are stored in separate ‚actual versions‘.
The additional actual versions are stored in the system as ‚delta versions‘.
In CO-PA legal and profit-center valuation are stored in separate ledgers.
In CO-PA group valuation is stored in the legal ledger in separate value fields.
SAP AG
Restrictions I
Transfer prices currently can only be used for goods movements.
FI-AA can only store those valuation approaches that are active in FI as well.
Group costing is only possible within one controlling area.
Parallel valuation approaches are only possible within one controlling area.
No parallel valuation approaches for unvaluated sales order stock.
SAP AG
Restrictions II
WIP at targets does require the legal valuation as the operational one.
WIP at targets will only be calculated in the operational valuation.
Parallel valuation approaches are only possible with invoice verification in Logistics.
Automatic invoice receipt for cross-company processing uses EDI, even within the same system.
SAP AG
Course Overview Diagram VI
1.1. Introduction and Definition of Terms
2.2. Fundamentals of the Transfer Pricing Solution
4.4.
5.5.
Transfer Prices in the Various Applications
Posting Examples
3.3. Transfer Prices from the Viewpoint of PCA
6.6.
New Functions in PCA
SAP AG
Scenarios
PCAPCAProfit Center Accounting
FIFI
Financial Accounting
CO-CO-OMOM
Controlling
CO-CO-PCPC
CO-CO-PAPA
Material Ledger
FI-AAFI-AA
MLML
Operational
Cur.Leg.
Cur.PrCtr
Cur.Grp
Cur.Leg.
Cur.PrCtr
Cur.Grp
Cur.Leg.
Cur.PrCtr
Cur.Grp
Cur.Leg.
Cur.Grp
Cur.PrCtr
Cur.PrCtr
SAP AG
Conventions for Representing Postings
PCAPCA
Int. change in stockVALUE
FLOW
FIFI
CO-CO-PCPC
CO-CO-OMOM
CO-CO-PAPA
Process
Updatein
CO
Additional posting lines in
Profit Center Accounting
Process anddata
Account
Postings in FIL = LegalG = GroupP = PrCtr
SAP AG
Example of a Posting in Release 3.0
Consumption for production order
FIFI
CO-CO-PCPC
CO-CO-OMOM
CO-CO-PAPA
Process anddata
L 60
Consumption
Stock
L 60
Consumption
L 60
Consumption
L 60
VALUE
FLOW
PCAPCA
SAP AG
Material Withdrawal for a Production Order
PCAPCAPrCtr 1
FIFI
CO-CO-PCPC
CO-CO-OMOM
CO-CO-PAPA
Consumption forproduction order
PrCtr 2
PrCtr 1 PrCtr 2
Transfer price = 150
Process anddata
ConsumptionL 100G 80P 150
ConsumptionL 100G 80P 150StockLGP
100 80 120
Int. change in stockP 120V
ALUE
FLOW
Internal revenuesP 150
Consumption 150
SAP AG
Activity Allocation for a Production Order
FIFI
CO-CO-PCPC
CO-CO-OMOM
CO-CO-PAPA
Activityallocation
PrCtr 1 PrCtr 2Process anddata
Int. activity alloc.L 600G 600P 600
Int. activity alloc.LGP
600600600
VALUE
FLOW
PrCtr 1 PrCtr 2
Int. activity alloc.P 600
Int. activity alloc.
P 600
PCAPCA
SAP AG
Results Analysis and Settlement of WIP
PCAPCA
FIFI CO-CO-PCPC
CO-CO-OMOM
CO-CO-PAPA
Results analysis,WIP settlement
Process anddata
FI document
Production costsL 700G 680P 750
VALUE
FLOW
Change WIPP 750
Balance WIPL 700G 680P 750
Change WIPL G P
700 680 750
SAP AG
Delivery to Stock Within the Same Plant
PCAPCA
FIFI CO-CO-OMOM
CO-CO-PAPA
Deliveryto stock
Process anddata
StockL 500G 400P 600
Factory outputL GP
500 400 600
VALUE
FLOW
CostsP 750
Factory outputLGP
500400600
CostsL 700G 680P 750
CO-CO-PCPC
Factory outputP 600,-
SAP AG
Stock Transfer Between Profit Centers
Plant1PrCtr 1
Stock transfer
PrCtr 1
VALUE
FLOW
FIFI
CO-CO-PCPC
CO-CO-OMOM
CO-CO-PAPA
Plant2PrCtr 2
PrCtr 2Transfer price = 100
Process anddata
Int. change in stkP 60Internal revenuesP 100
Int.change in stkP 100
Goods from PrCtrP 100
StockL 80G 40P 90
StockLGP
50 40 60
30
PCAPCA
Price diff.L 30GP 10
SAP AG
Primary Posting to a Cost Center
Process anddata
PCAPCA
FIFI
CO-CO-PCPC
CO-CO-OMOM
CO-CO-PAPA
Primary postingto cost center
ExpenseP 200
ExpenseL 200G 200P 200
ExpenseL 200G 200P 200
200200200
VALUE
FLOW
VendorLGP
200 200 200