What is transfer price agreement in SAP PS - Project System?

SAP Term: transfer price agreement

• Component: PS

• Component Name: Project System

• Description: A document in which a fixed price is agreed for work done by a CO object assigned to one responsibility area profit center for a CO object assigned to another responsibility area. When you agree transfer prices, the system updates the planned revenues to the service provider sender in Profit Center Accounting, and the planned costs and commitment, to the service receiver.

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• Key Concepts: 
  A Transfer Price Agreement (TPA) is a document used in the Project System (PS) component of SAP to define the terms and conditions of a transfer of goods or services between two organizational units within the same company. It is used to ensure that the transfer is done in a fair and transparent manner, and that all parties involved are aware of the terms and conditions of the transfer. 
  
  How to use it: 
  In order to create a Transfer Price Agreement, you must first create a project in the Project System component of SAP. Once the project is created, you can then create a Transfer Price Agreement by selecting the “Transfer Price Agreement” option from the menu. You will then be prompted to enter the details of the agreement, such as the type of goods or services being transferred, the price, and any other relevant information. Once all of the details have been entered, you can then save and activate the agreement. 
  
  Tips & Tricks: 
  When creating a Transfer Price Agreement, it is important to ensure that all parties involved are aware of the terms and conditions of the agreement. Additionally, it is important to ensure that all relevant information is included in the agreement, such as any applicable taxes or fees. 
  
  Related Information: 
  For more information on Transfer Price Agreements in SAP Project System, please refer to SAP Help documentation at https://help.sap.com/viewer/product/SAP_PROJECT_SYSTEM/7.5/en-US