Cost Management - EBS (MOSC)

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Transfer Price Costing Visibility

edited Nov 21, 2017 9:37AM in Cost Management - EBS (MOSC) 1 commentAnswered ✓

We have a problem tracking the various cost components in
Europe.

We sell manufactured material from US to our European OU for resale. We use Standard Costing in Europe

Std Cost in Eur = Transfer price from US + Duty (abt 6%) + Freight

PO Price = Transfer Price (Invoice Price from US)

PO Receipt causes a PPV (Db) which should theoretically be
Duty+ Freight

Our requirement

PPV is a lump number. We want to break that PPV into Duty Component, Freight Component and the difference in Transfer Price (if exists)

Then we want to post the Duty and Freight to Balance Sheet since we expect to pay these vendors later

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