Transfer Pricing Markup Percentage

You can use the Markup Percentage on the Manage Supply Chain Financial Orchestration Transfer Pricing Rules page to enable the seller to earn a profit or to incur a loss on an intercompany transaction.

To determine the intercompany transfer price, Financial Orchestration multiples the Markup Percentage with the value of the Accounting Transfer Price. For example, if an item costs 1.00 USD, and if you set Markup Percentage to 15, then Financial Orchestration sets the transaction price for this item to 1.15 USD.

You can also enter a negative value to incur a loss. For example, assume the Singapore Distribution Center must mark down the items that it sells to retailers by 15%. So, if an item costs 1.00 USD, and if you set Markup Percentage to -15, then Financial Orchestration sets the intercompany transfer price for this item to 0.85 USD.