UPA and Transfer Price

How does UPA interact with transfer price and impact on COGM and COGS ChatGPT said: Excellent follow-up 👍 — this goes right to the heart of Universal Parallel Accounting (UPA): how it interacts with Transfer Pricing (TP) and how that impacts COGM (Cost of Goods Manufactured) and COGS (Cost of Goods Sold). 🔑 1. Transfer … Continue reading UPA and Transfer Price

How SAP S/4HANA Transfer pricing configuration works with SAP PaPM Operational Transfer Pricing?

Excellent question, 🙌 — this is where SAP S/4HANA Transfer Pricing (via UPA) meets SAP Profitability and Performance Management (PaPM) to deliver Operational Transfer Pricing (OTP). Let’s break it down clearly: 🔑 1. Transfer Pricing in S/4HANA (with UPA) In S/4HANA UPA, Transfer Pricing Variants (TPV) allow you to configure: Cost-Plus (Manufacturing markup) Sales-Minus (Commercial … Continue reading How SAP S/4HANA Transfer pricing configuration works with SAP PaPM Operational Transfer Pricing?

Cost-Plus (Manufacturing), Sales-Minus (Commercial) Transfer Pricing Set-up in ECC Vs S/4HANA UPA

Part-1 : What is Universal Parallel Accounting (UPA) Part-2 : ECC (Parallel Valuation) Vs S/4HANA Parallel Valuation with UPA Part-3 : ECC Configuration Part-4 In this Blog, we have a look at a step-by-step IMG configuration flow, which will make it much easier to see where Cost-Plus (Manufacturing) and Sales-Minus (Commercial) Transfer Pricing are set … Continue reading Cost-Plus (Manufacturing), Sales-Minus (Commercial) Transfer Pricing Set-up in ECC Vs S/4HANA UPA

SAP configuration in Classical ECC Transfer pricing

Let’s go step by step. In Classical ECC (ERP 6.0, before UPA in S/4HANA), Transfer Pricing (parallel valuation) was already available, but the setup was complex and restricted. We essentially had to configure parallel valuations in CO and activate the Material Ledger (ML) to get it fully working. 🔑 1. Core Concept in ECC In … Continue reading SAP configuration in Classical ECC Transfer pricing