This document provides an overview of transfer pricing concepts and configuration in SAP S/4HANA to manage legal, group, and profit center valuations. It explains the business case, customizing steps like valuation profiles, CO versions, currency types, and material ledger setup. An example scenario demonstrates intercompany purchase orders, postings, cost component views, actual costing runs, and analyzing financial impacts in legal and group valuations.
Key topics covered in the document:
- Introduction to transfer pricing and multiple valuation approaches
- Business case for legal, group, and profit center valuations
- Customizing steps for valuation profiles, CO versions, currency types, material ledger
- Creating a Currency and Valuation Profile [8KEM]
- Assigning Currency and Valuation profile to Controlling area [8KEQ]
- Creating Versions for valuations
- Currency and Ledger settings in the Universal Journal
- Assigning Currency type to Material ledger
- Determining the valuation approach for Clearing Account [8KEN]
- Standard cost Estimate settings for valuation approach [OKKI, OKKN]
- Cost Component structure settings for Group valuation [OKTZ]
- Splitting of Cost of Goods Sold in Parallel Valuation View
- Activating Multiple Valuation
- Scenario explaining intercompany purchase orders and postings
- Viewing cost component and actual costing differences in legal and group valuations
- Analyzing financial statement impacts in legal and group valuations
- Summary of transfer pricing capabilities and limitations in S/4HANA
Download – Transfer Pricing Concepts and Configuration in SAP S/4HANA