Transfer Price Costing Visibility
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