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    Shyam Singh Patel
    Derive the Transfer Price for Inter-company...Answered
    Topic posted July 23, 2019 by Shyam Singh PatelGold Trophy: 10,000+ Points, tagged Pricing 
    95 Views, 4 Comments
    Title:
    Derive the Transfer Price for Inter-company Invoicing(E.g. Transfer Price Hook in EBS) Dynamically
    Summary:
    Derive the Transfer Price for Inter-company Invoicing(E.g. Transfer Price Hook in EBS) Dynamically
    Content:

    we have a requirement to derive the intercompany price dynamically transaction by transaction.  in EBS we can achieve this through transfer Pricing hook. is there any way in the cloud to achieve this similar functionality.

    Business Case  as in Diagram:  COMPANY 1 is selling to Customer and Booking the Sales Order    

                                                       COMPANY 2 under the same Business Group but different LE

                                                        Customer is End Customer

    The supplier has a different negotiated price for both Company(1,2) hence wherever the price is less than the company will pick the order from that LE and ship to End Customer

    $X is derived dynamically on each Transaction. 

    This is Intercompany Dropship Scenario.

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    Best Comment

    Sukalyan Ghatak

    Hi Shyam,

    Under "Manage Financial Orchestration Flow" you have the option of using either Cost, Price List or an external Web-Service for determining Transfer Price. For my current customer, I am using Price List (as it is more or less static for a month). If you have intense processing logic (typically what we used to do in the TP Hook in eBS), you might want to have a code written in an external DB, create a service out of it and use the same in the Financial Orchestration Flow.

     

    Do let me know if it sounds reasonable. Otherwise we can discuss further.

    Regards

    Sukalyan Ghatak

    Comment

     

    • Shyam Singh Patel

      Any Update?

    • Sukalyan Ghatak

      Hi Shyam,

      Under "Manage Financial Orchestration Flow" you have the option of using either Cost, Price List or an external Web-Service for determining Transfer Price. For my current customer, I am using Price List (as it is more or less static for a month). If you have intense processing logic (typically what we used to do in the TP Hook in eBS), you might want to have a code written in an external DB, create a service out of it and use the same in the Financial Orchestration Flow.

       

      Do let me know if it sounds reasonable. Otherwise we can discuss further.

      Regards

      Sukalyan Ghatak

    • Shyam Singh Patel

      Hi Sukalyan,

      we've resolved dynamic ICO price through Pricing Hook. 
      Register Financial Orchestration Third-Party Transfer Pricing Service

      now we can pass dynamic price for ICO Procurement and Shipment(Dropship Only). we have created PO Line Level DFF. through Web Service, we are updating the PO and at Line, Level DFF populating the value which is agreed by Business and Supplier. while running ICO AP and AR invoice it gets honouring the DFF price and we can see this Price in " Monitor Financial Orchestration Execution"

      Regards
      Shyam

      • Sukalyan Ghatak

        Thanks Shyam, good to know it. We are using Transfer Pricing extensively in our current engagement, but mostly through price lists.

        Regards

        Sukalyan Ghatak