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

SAP Term: legal transfer price

• Component: EC-PCA

• Component Name: Profit Center Accounting

• Description: The sales price of a good or service exchanged between legally independent companies within a group. This is the price used in the balance sheets of the companies involved.

Smart SAP Assistant

• Key Concepts: 
  Legal transfer price is a concept used in SAP's EC-PCA Profit Center Accounting component. It is the price at which goods and services are transferred between two legal entities within the same company. This price is used to calculate the profit or loss of each legal entity involved in the transaction. 
  
  How to use it: 
  In SAP, legal transfer prices are set up in the system and can be used to calculate the profit or loss of each legal entity involved in a transaction. The system will automatically calculate the transfer price based on the cost of goods and services, as well as any applicable taxes or fees. The transfer price can also be manually adjusted if needed. 
  
  Tips & Tricks: 
  It is important to ensure that the legal transfer price is set up correctly in SAP, as it will affect the profitability of each legal entity involved in the transaction. It is also important to keep track of any changes made to the transfer price, as this could have an impact on future transactions. 
  
  Related Information: 
  For more information on legal transfer prices and how they are used in SAP, please refer to SAP's documentation on EC-PCA Profit Center Accounting.