Fusion CST : Transfer Price Profit is Calculated Incorrectly for IMT between Business Units when Crossing Currencies
(Doc ID 2674386.1)
Last updated on JUNE 07, 2020
Applies to:Oracle Fusion Cost Management Cloud Service - Version 11.13.20.01.0 and later
Information in this document applies to any platform.
Transfer price profit is calculated incorrectly for IMT between two Business Units when Crossing Currencies.
1) All Intercompany setups defined for Sweden and China Business Units (let us take these countries as an example)
2) All Costing and SLA setups defined for Sweden and China Business Units
3) Transfer Pricing Rule defined b/w Sweden and China Business Units
4) Perform an Internal Material Transfer between Sweden Org and China Org, shipping and receiving. Sweden - Selling Org, China - Buying Org
5) Ran Costing Programs
6) Reviewed the Receipt and Cost Accounting entries in both Sweden and China
7) Observed that
a) Transfer Price in CNY is getting derived correctly as per the Transfer Price rule set. Say this is A
b) Material Cost in CNY is getting derived correctly as per MOR rate b/w SEK and CNY. Say this is B
c) However, Transfer Price Profit is derived Incorrectly. Say this is C and should be A - B.
But here there is a completely different amount.
As a result, there is difference in balance in Amounts for Receiving Inspection, Trade Clearing, Trade In-Transit valuation and Inventory Valuation is also INCORRECT.
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