Tag: Transfer Pricing

How UPA impacts Product-Costing, Group Valuation, Transfer Price?

🔑 1. What is Universal Parallel Accounting (UPA)? UPA harmonizes valuation approaches (legal, group, profit-center) in one Universal Journal (ACDOCA). No separate ledgers (like old profit center ledger 8A) → all valuations live in ACDOCA with different valuation views. Parallel valuations are handled consistently across FI, CO, ML, and Asset Accounting. More Details here : … Continue reading How UPA impacts Product-Costing, Group Valuation, 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