Understanding Branch Sales Markups

You use branch sales markups to set up the additional costs that are associated with a transfer or interbranch sales order. You enter an interbranch sales order to fill a sales order from a branch/plant that is different from where you placed the order. For example, if the company sells from one location but fills and ships orders from another location, such as a central supply warehouse, you can ship the order from the central supply warehouse directly to the customer.

Companies can apply additional costs to transfer and interbranch sales. The additional costs that you set in the Branch Transfer Markup program (P3403) are the amounts that the branch/plant charges in addition to the base price.

You can use the P3403 program to set the markup amount for any transfer or interbranch sales order. You can also define the relationship between the selling branch/plant and the supplying branch/plant. For example, if you are setting up the branch sales markup table from the perspective of a central supply warehouse, you can define the amount that you charge every location that places an order.

You can also set markup amounts that are specific to either an item or an item group. For example, any time you fill an order that contains an item with an additional markup amount, the system adds the markup amount for that item to the order total. Or any time that you fill an order that contains an item from a specific group, the system adds the markup amount for the group. You cannot set a markup for both an item and a markup for a group that includes the item.