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.
Transaction Cost is the cost of underlying transactions such as the receipt or shipment in Cost Accounting. Depending on the cost method, this could be the existing standard cost, layer actual cost, or average cost of the valuation unit the issue or receipt is processed in. |
Source Document Price Basis |
Use the price in the sales order or a purchase order based on the business process type.
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. Item cost is the existing cost the user would see in the Review Item Cost page for an item, cost organization, and primary cost book. It doesn't require the transaction to actually be cost processed. |