Intra-company Transfer Pricing using SAP Material Ledger

Intra-company Transfer Pricing using SAP Material Ledger

Previous to SAP Material Ledger, implementing a process of Transfer Pricing in SAP for intra-company transfers used to be a mini-project comprising writing a bunch of custom codes, tweaking some configuration and possibly coding some user exits. This process can also be achieved thru a complex set of “internal” sales & purchase order process with a more complex web of pricing, custom codes, and accounting entries.

With Material Ledger achieving some stability in newer versions of SAP, there is a better simpler standard SAP way of implementing Transfer Pricing. I implemented this functionality for the first time in R/3 version4.5. It was not without bugs then; but the functionality did provide a viable solution to the business requirements of the customer. Since then, SAP Material Ledger has come a long way.

This blog is a simple introduction / a case study of how SAP Material Ledger can achieve intra-company Transfer Pricing with very little configuration, and lesser data maintenance.

Please drop me an email or post a comment if you want clarifications.

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Rajesh has SAP Transfer Pricing using Material Ledger at two of his customers. Both customers are in the Manufacturing industry and used Rajesh’s expertise to build a transfer price model to transfer intermediate products from one business units to finished product in other business units. Rajesh has 12 years experience implementing SAP / IT / BPM Finance solutions for several customers globally; he also has 7 years experience working in the business in Finance and Accounting functions. His business process knowledge combined with his IT expertise enables him to provide his customers with best-of-breed advise on business process / IT implementations.

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Comments

  1. Dear Mr Rajesh Shanbhag, I am writting to you because I am very interesting about Intra-company Transfer Pricing using SAP Material Ledger, I wondering if it would be possible to have from you some kind of procedure about the requirement configurations.
    I am studying SAP and I am working in a project about a Company which have many Centers and they want to know how is the cost without the virtual benefit of their internal sales.

    Thanks in advance,

    Maria Alejandra

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