Do we need to undervalue the price or inventory? @HoiNiresT Inventory I mean. Isnt that what your Australian entity plans to do when they wish to purchase at 100 USD and value at 75 USD only? I have no good answer if that’s the case, sorry. We ll check this option and see
@HoiNiresT oh ok. Then they wish to undervalue at 75USD. That just beats me Thanks again Enzo. Do we need to undervalue the price or inventory?
Hi @HoiNiresT isn’t it possible for US Company to sell at 75 USD to the Australian company? We use a somewhat similar scenario when we do Internal Trade. Let’s say, we sell the part at USD 500 externally. We have an object property defined in IFS to acquire 5% less of USD 500 in the internal PO we raise to acquire the part from the internal supply site. The Internal CO will also have that price which is 5% less. So the Australian company has to purchase at the same cost 75 USD. Do you think such a setup is going to help? Our Inventory valuation method is FIFO though. I think FIFO also valuates similar to Weighted Average. Thanks Enzo! Unfortunately we need to have mark up of 25USD due to the transfer pricing policy. Thus Australian company has to buy at 100 USD and not 75USD.
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