What is 'profit center transfer price' in SAP EC-PCA - Profit Center Accounting?

profit center transfer price - Overview

• Component: EC-PCA

• Component Name: Profit Center Accounting

• Description: A negotiated price agreed upon between profit centers and used to valuate goods and services exchanged between profit centers within an organization.

profit center transfer price - Details

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  Key Concepts: 
  Profit center transfer price is a concept used in SAP's EC-PCA Profit Center Accounting component. It is a price that is used to transfer goods or services between two profit centers within the same company. This transfer price is used to calculate the profitability of each profit center and to ensure that the company as a whole is making a profit. 
  
  How to use it: 
  In order to use the profit center transfer price, you must first set up the profit centers in SAP. This can be done by creating a new profit center in the system and assigning it to an organizational unit. Once the profit centers have been set up, you can then enter the transfer prices for each of the profit centers. This will allow you to track the profitability of each profit center and ensure that the company as a whole is making a profit. 
  
  Tips & Tricks: 
  When setting up the transfer prices for each of the profit centers, it is important to make sure that they are accurate and up-to-date. This will ensure that the profitability of each profit center is accurately calculated and that the company as a whole is making a profit. Additionally, it is important to regularly review and update the transfer prices in order to ensure that they are still accurate and up-to-date.