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

SAP Term: transfer price

• Component: EC-PCA

• Component Name: Profit Center Accounting

• Description: The price charged for transfer of a product from one business unit company code or profit center to another within a group.

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• Key Concepts: 
  Transfer price is a term used in SAP's EC-PCA Profit Center Accounting component. It is the price at which goods or services are exchanged between two related business entities, such as a parent company and its subsidiary. The transfer price is used to calculate the profits of each entity and to ensure that the transactions are properly accounted for in the financial statements.
  
  How to use it: 
  In SAP, transfer prices are set up in the EC-PCA Profit Center Accounting component. The transfer price is entered into the system and used to calculate the profits of each entity involved in the transaction. The transfer price can be adjusted as needed to ensure that the transactions are properly accounted for in the financial statements.
  
  Tips & Tricks: 
  When setting up a transfer price in SAP, it is important to consider the impact of taxes and other costs associated with the transaction. Additionally, it is important to ensure that the transfer price is set at a level that will not create an unfair advantage for either party involved in the transaction.
  
  Related Information: 
  For more information on transfer prices and how they are used in SAP, please refer to SAP's documentation on EC-PCA Profit Center Accounting. Additionally, there are many online resources available that provide further information on transfer prices and how they are used in SAP.