Transfer Pricing for Internal Material Transfers

The transfer price is the amount one sub-unit charges for the goods or services that it provides to another sub-unit of the same organization.

You can see the transfer price displayed in the Price field for a requisition line for internal material transfer items, and in the Transfer Price field in Transfer Order pages.

The transfer price can be based on a number of factors, such as cost or pricing agreements between subunits, and is calculated through integration with Oracle Fusion Supply Chain Financial Orchestration.

The transfer price is re-calculated whenever there is a change to the source organization, requested delivery date, or quantity. In addition, when the requisition is submitted for approval, the application will retrieve the latest transfer price information.

For more information on how the Transfer Price is calculated, see Internal Material Transfer Price: How It Is Calculated in the Oracle SCM Cloud Implementing Manufacturing and Supply Chain Materials Management guide.