Register today for Oracle CloudWorld. October 17th - 20th, Las Vegas

Register now

Hillel Cooperman, Senior VP of User Experience Design, has a message for you on Oracle CloudWorld

Watch now
Intercompany Margin Elimination — Cloud Customer Connect
You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register

Intercompany Margin Elimination

Accepted answer
31
Views
8
Comments
edited Sep 25, 2019 4:40PM in Costing 8 comments

Summary

How do we eliminate the profit in Inventory /gross margin arises out of Intercompany sales/ transfers at transfer price across Inventory organization underneath different profit business unit ?

Content

How do we eliminate the profit in Inventory /gross margin arises out of Intercompany sales/ transfers at transfer price across Inventory organization underneath different profit business unit ?

 

Scenario 1:

Inv Org A (PBU A) transfers item x (Std cost = 10) at the transfer price rate of Cost + 10% = 11

Inv Org B (PBU receives item x

Inv Org A made a profit of 1 which is fine for books of Org A.. however when we do a consolidation for all entities (Org A &

Howdy, Stranger!

Log In

To view full details, sign in.

Register

Don't have an account? Click here to get started!