What is group transfer price in SAP EC-PCA - Profit Center Accounting?

SAP Term: group transfer price

• Component: EC-PCA

• Component Name: Profit Center Accounting

• Description: The cost of goods manufactured which is used for valuating the transfer of goods and services between companies within a group. No surcharges are added to the cost of goods manufactured in the group transfer price.

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• Key Concepts: 
  Group transfer price is a feature of SAP's EC-PCA Profit Center Accounting component. It is used to transfer costs between different profit centers within an organization. The transfer price is determined by the cost of the goods or services being transferred, and it is used to calculate the profitability of each profit center. 
  
  How to use it: 
  Group transfer prices are set up in the SAP system by defining a transfer price type and assigning it to a profit center. The transfer price type defines the criteria for calculating the transfer price, such as cost or market value. Once the transfer price type is set up, it can be used to transfer costs between different profit centers. 
  
  Tips & Tricks: 
  When setting up group transfer prices, it is important to consider the impact of the transfer price on the profitability of each profit center. It is also important to ensure that the transfer price is fair and reasonable, as this will help ensure that all profit centers are treated fairly. 
  
  Related Information: 
  For more information on group transfer prices, please refer to SAP's documentation on EC-PCA Profit Center Accounting. Additionally, there are many online resources available that provide detailed information on how to set up and use group transfer prices in SAP.