Accounting Transfer Price

Accounting transfer price is the intercompany transfer price that financial orchestration uses for the documents and transactions created in a financial orchestration flow. You can specify the account transfer price on the Transfer Pricing Rules dialog box.

This table gives the options available for accounting transfer price. You can select one of these options.

Option	Description
Transaction Cost Basis	Use the production cost that the seller incurs to produce the product. Nonshippable Sales: This price basis isn't supported for internal transfers.
Source Document Price Basis	Use the price in the sales order or a purchase order based on the business process type. Procurement: Use the price in the purchase order line. Shipment: Use the selling price from the sales order line. Internal Transfer: This price basis isn't supported for internal transfers. Drop Ship: Use the line price in the purchase order line. Use the check box to select the sales order price instead of the purchase order price. Note: Financial Orchestration excludes the shipping charges in the sales order line from the selling price when it calculates the transfer price. It also treats a recurring charge on a sales order line as a one-time charge when it calculates the transfer price. Financial Orchestration doesn't support a sales order line that includes a recurring charge.
Item Cost Basis	Use this option to process the intercompany transactions based on the item's current cost applicable at ownership change in the financial orchestration flow. Note: Mixing of transfer price options isn't supported for multi node transfers. This means you can't mix the transfer option of item cost basis for the first node with the transaction cost basis for other nodes. Instead, you can either use the transaction cost for all nodes or use the pricing list with transaction cost basis.

Option

Description

Transaction Cost Basis

Use the production cost that the seller incurs to produce the product.

Nonshippable Sales: This price basis isn't supported for internal transfers.

Source Document Price Basis

Use the price in the sales order or a purchase order based on the business process type.

Procurement: Use the price in the purchase order line.
Shipment: Use the selling price from the sales order line.
Internal Transfer: This price basis isn't supported for internal transfers.
Drop Ship: Use the line price in the purchase order line. Use the check box to select the sales order price instead of the purchase order price.

Note: Financial Orchestration excludes the shipping charges in the sales order line from the selling price when it calculates the transfer price. It also treats a recurring charge on a sales order line as a one-time charge when it calculates the transfer price. Financial Orchestration doesn't support a sales order line that includes a recurring charge.

Item Cost Basis

Use this option to process the intercompany transactions based on the item's current cost applicable at ownership change in the financial orchestration flow.

Note: Mixing of transfer price options isn't supported for multi node transfers. This means you can't mix the transfer option of item cost basis for the first node with the transaction cost basis for other nodes. Instead, you can either use the transaction cost for all nodes or use the pricing list with transaction cost basis.