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Transfer Pricing: With PCA TP or Without PCA TP functionality

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Dear All,

 

I have a scenario where business has 3 manufacturing plants (obviously 3 Plants in SAP, excisable) and 100+ depots (Plants in SAP, all non-excisable) under one legal entity (company code). Fixed price is set for material/product for stock transfer to depot which is technically called as transfer pricing (if I am not wrong).

Profit out of Sale at depot is not merged with manufacturing plant for management reporting. Though, as it is a legal entity ultimately everything belongs to Company code. This is not the challenge.

 

My doubt here is…

 

Now I am just evaluating if I can do it with simple STO or I should activate/use PCA stock transfer functionality.

  1. What feature and use of PCA stock transfer has?
  2. How I should go about my scenario?
  3. What could be the business use for which PCA stock transfer?

 

Looking for the reply. Thanks in advance.

 

Regards

Ruksana


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