Double markup on transfer pricing

[topher79]

Hello all...

I'm trying to circumvent an issue where by some exported products receive double markup on a portion of its components. Raw materials are produced at one plant in Canada. Those materials are then transferred to the US plant where they are further modified before being shipped to the UK to be packaged for sale. Here's the issue: on the transfer from Canada to the US there's a 15% markup on the standard cost. On the transfer from US to UK there's another 15% markup but as you can see the component which originated in Canada now has had two markups whereas the second markup should have only been on the value-added in the US. So I'm trying figure out a way to subtract out 15% on the material which originated in Canada.

Is there a way to do this using cost component add-ons? Thanks!

 

[WhippingBoy]

You're using Advanced Pricing in XE for this?

9.1 has Country of Origin, so if you are considering an upgrade this might help the decision.

[ QUOTE ]
New Doc! 9.1 Enhancement - Inventory Transactions and Setup with Country of Origin (Doc ID 1499023.1)
Country of Origin (alias COORE) is an enhancement that allows inventory to be tracked to the specific country from which it came. This is helpful for any customers who have items which they buy from different countries, manufacture/assemble or grow in a different country, and/or have regulatory requirements for specifying the country on outbound documents or data communication.

To accommodate this requirement a new field was added to the lot master application which stores the country of origin value. The system was then modified to allow the user to specify it during any transactional process that brings inventory into the system as an additional attribute of the new lot information.

A new checkbox was added to the Item Branch application which will give the user the option to specify that all inventory transactions for a specific branch require a country of origin when a new lot is created.


[/ QUOTE ]

 

[Dumitru Ivanov]

I think there is, but it won't be easy. Have you tried using transfer pricing in 2017?
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Dumitru from transfer pricing