3789881 - STO Transfer price markup not capitalized in receiving plant inventory valuation after Goods Receipt

• In a Stock Transport Order (STO), the pricing procedure determines a transfer price consisting of the material price and a markup.

• After posting the Goods Receipt (GR), the expectation is that the inventory value at the receiving plant to be updated to e.g. 120.

  Instead, the inventory is updated only with the material valuation price (for example, Moving Average Price = e.g. 100), while the markup is reflected only in the Proforma or Intercompany Billing document.

Example:

• Material Moving Average Price = 100
• Markup = 20
• Transfer Price = 120

SAP S/4HANA Cloud Public Edition

1. Create a Stock Transport Order (STO) with a pricing procedure that calculates material price, markup, and transfer price (material price + markup).
2. Process the STO via proforma billing (intrastate) or intercompany billing (JSTO, Interstate).
3. Post the Goods Receipt for the STO in the receiving plant.
4. Check the receiving plant inventory valuation and observe it reflects only the material valuation price (for example, moving average price) and not the transfer price including markup.

Standard functionality does not support capitalizing the STO transfer price markup into inventory valuation at goods receipt in SAP S/4HANA Cloud Public Edition.

The STO pricing procedure is intended for billing/pricing; inventory valuation follows the material valuation method (for example, moving average price or standard price) independently. If this capability is required, submit an enhancement request via the SAP Customer Influence channel. For additional background and community guidance, review the references in the See also section.

• Refer to: how to capitalize transfer/transportation cost in s/4hana cloud public edition
• Refer to: configuration to include freight costs in cost estimate from pir

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