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

SAP Term: transfer price allocation

• Component: PS

• Component Name: Project System

• Description: A document in which a fixed price is allocated for work done by a CO object assigned to one responsibility area profit center for a CO object assigned to another responsibility area. A transfer price allocation references a transfer price agreement. In the transfer price allocation, the system updates the actual revenues to the service provider sender in Profit Center Accounting and the actual costs to the receiver. The commitment in the service receiver is reduced as appropriate.

Smart SAP Assistant

• Key Concepts: 
  Transfer price allocation is a feature of the SAP Project System (PS) component that allows for the automatic allocation of costs and revenues associated with a project to the appropriate cost centers. This feature helps to ensure that all costs and revenues associated with a project are accurately accounted for and allocated to the correct cost centers. 
  
  How to use it: 
  In order to use transfer price allocation, the user must first define the transfer prices for each cost center. This is done by entering the transfer prices in the “Transfer Price Allocation” tab in the PS component. Once the transfer prices have been defined, the user can then allocate costs and revenues associated with a project to the appropriate cost centers using the “Allocate Costs/Revenues” tab. 
  
  Tips & Tricks: 
  When defining transfer prices, it is important to ensure that they are accurate and up-to-date. This will help to ensure that all costs and revenues associated with a project are accurately allocated to the correct cost centers. Additionally, it is important to review and update transfer prices on a regular basis in order to ensure that they remain accurate. 
  
  Related Information: 
  For more information on transfer price allocation in SAP Project System, please refer to SAP Help documentation or contact your local SAP support team.