Cost Distributions - Transfer Price Gain/Loss in Intercompany Transfer

Summary:

We have an Intercompany Transfer Order between two organizations under different cost organizations. In this transaction:

• The item was costed and accounted in the Shipment Org on 01/08/2024
• The same item was costed in the Receipt Org (Interorganization Receipt) on 01/19/2024

Cost Element Setup:

Org	Cost Elements
Shipment Org	Material, Freight
Receipt Org	Material, Freight, Profit in Inventory

Observations:

• In the Shipment Org, we see Transfer Price Gain/Loss posted as part of the Trade In Transit Issue layer.
• In the Receipt Org, the same item has a separate Profit in Inventory cost element.

Question:

My understanding is that Transfer Price Gain/Loss is typically calculated at the time of receipt, when Oracle can compare the Transfer Price with the receiving org’s cost and is usually posted in the Receipt Org.