Note 135288 - Parallel valuation/transfer prices in pricing

Summary

Symptom
With conditions KW00 ('Transfer price for group evaluation'; KNTYP 'b'), and PC0
0 ('Transfer price for profit center evaluation'; KNTYP 'c'), transfer price pro
cessing (introduced in Release 4.0A) currently only takes sales revenues (prices
) into account. In the standard system, condition KW00 (KNTYP 'b') always contai
ns the stock value from group view (from the material ledger) that is, it contai
ns the group costs of goods manufacturing. This is correct for internal goods mo
vements since in this case the material from the group view is always transferre
d at production cost that is without intercompany profits. For external sales, h
owever, from the group view the production costs should be compared to the 'real
' that is legal sales revenues. Currently, this is only possible with complicate
d settings in pricing. Once you apply this note, the process is simplified subst
antially. Moreover, you should have the option to determine the costs in the ind
ividual evaluation screens and to update them in Profitability Analysis. The cor
rections contained in this note supply the required preconditions, however, curr
ently you can only transfer the costs in Profitability Analysis with user exit C
OPA0005.
Once you apply this note, pricing and costing should be performed according to t
he following logic:
1. Group valuation
For sales to companies outside the group (external sales) in the standard syste
displayed by PR00 and, if necessary, surcharges and discounts can be displayed.
This is performed automatically that is, the pricing procedure no longer requir
es a condition type for revenues from the group view, if such a condition type e
xists, it is ignored.
However, the group may want to display the group price (in the same way as VPRS
iew). In this case, the condition rate should correspond to the stock value from
the group view from the material ledger. For this purpose, you must create a co
ndition type of category 'b' (for example KWVP) and include it in the pricing pr
ocedure as a statistical condition type. You can use condition type KW00 as a re
ference. Yo can also use this directly. In this case, the system would interpret
KW00 automatically as costs and not as revenues.
For internal sales, the pricing procedure must contain a condition type of cate
xample KW00). The system interprets this condition type for revenues and for cos
ts and posts it accordingly to the individual components.
2. Profit center valuation
For sales to external customers (that is customers who do not belong to the gro
post revenues either with a certain profit center price or with the legal price
. Therefore in pricing you need a revenue condition for the profit center view (
for example PC00) with condition category 'c'. If necessary, you can copy the le
gal price into this revenue condition. In accordance with the legal or the group
view you may also want to display transfer costs from the profit center view. T
hese should correspond to the material stock value from the profit center view f
rom the material ledger. If you want to display them, you must apply the new con
dition type 'h' as described below. Create condition types of the category 'h' i
n the same way as condition types of category 'b'. In this case the system autom
atically determines the stock value from the profit center view in the material
ledger. Then you must include this condition type (for example PCVP) as a statis
tical condition type in the pricing procedure. (Similar to VPRS for the legal vi
ew).
Also for internal sales you want to compare revenues PC00 with costs from the p
ew (PCVP) (determined with access sequence). Now you can do this in a similar wa
y as with external sales with the help of a condition type of category 'h'.
Additional key words
Pricing, transfer prices, transfer costs, cost
Cause and prerequisites

This was not programmed.

1. For sales to companies which belong to the group (internal sales) no
intercompany profits should be displayed from the group view. In this case, cost
s and sales revenues are identical. So you only need a condition (for example KW
00) of category 'b'.
2. As of Release 4.5, you can carry out profitability analysis from the
profit center view and from the legal view. Up to now you could only determine a
nd copy the revenues from the profit center view and it was not possible to dete
rmine the corresponding costs with a different condition type as well and post t
hem as profit center costs in the Profitability analysis. To do this, you need a
n additional condition type 'h'.
3.
Solution
This is programmed in Release 4.6A. The correction are already included in part
in Release 4.5B? Therefore make sure you compare the 4.5B source code with the 4
.5A corrections.
Note the attached advance correction.
Explanations and notes
1. Transfer costs in group valuation (external sales; KWVP) must remain
statistical in the SD-FI interface (in contrast to transfer prices (internal sal
es)). Only in this way you can make sure that the values are forwarded to Cost A
ccounting, however, not forwarded to Financial Accounting. To distinguish betwee
n external and internal sales, the system uses the 'Affiliated company' indicato
r (XACCIT-VBUND). KW00 and KWVP both have the same condition type and for this r
eason issue the same condition amount.
2. Transfer costs in group evaluation must also remain statistical in th
e SD-FI interface. However, they are not determined with the access sequence but
from the material ledger. For this reason, in this case you must introduce a ne
w condition type KNTYP = 'h'. In general, the condition rates for PC00 and PCVP
are different. No account determination takes place for KNTYP = 'h'.
Proceed as follows
1. For domain KNTYP create a new fixed value with condition type 'h' (Tr
ansaction SE11). As a description for fixed value 'h', enter the following text:
'Profit center cost'.
2. Implement the attached source code correction (SE38).