Configured Item Transfer Order Costing

Transfer orders derive the sales order detail cost from the shipping branch/plant. The transfer purchase order cost is equal to the unit price (not cost) of the related sales order.

For the parent of a configured item transfer order, the sales order cost is equal to the rolled-up cost of the components from the shipping branch/plant; and the related purchase order cost is equal to the unit price of the transfer sales order detail line.

For both configured and non-configured transferred components, the sales order cost on the original sales order is driven by the unit price of the related transfer order. The Cost or Base Price Markup processing option for the Sales Order Entry program (P4210) determines how this is calculated. A value of Blank in this field means that the sales order cost is equal to the rolled-up cost of the shipping branch/plant.

A value of 1 calculates the rolled-up cost of the shipping branch/plant, multiplies that by the mark-up percentage found in the Branch Relationships Master table (F3403), and writes the resulting cost to the sales order detail line.

A value of 2 calculates the base price from the shipping branch/plant, using the price roll-up method, and returns that value to the sales order detail cost.

Again, in all cases, the cost on the transfer purchase order is equal to the unit price of the transfer sales order.