Hi,

We are on Baan IV c4 & Vc. We have two baan companies, one a manufacturing one and the second a sales one(both are financial companies in Baan). Is it possible to charge the same price to both the sales company and the customer(if the sales co. is doing the sales?) And is there any other way to accmodate this scenario?

Thanks,

If you are creating sales orders, you can put in whatever price you want, and you can also created contracts for what ever price you want...
Not sure if I understood you question correctly

In accounting, there are several methods in use to determine the internal transfer price between business units. You can read this in accounting textbook that cover financial reporting separation between business units. And in any of those widely used methods, you wouldn't want to charge your other business unit the same price you charge customers. This is because both units, in accounting terms, have to make "profit" on the transaction, otherwise it'll be hard to judge performance of each business unit financially. So the price charged to business unit always has to be in between cost and sales price

Rgds,
Paul

...you wouldn't want to charge your other business unit the same price you charge customers...
Paul

I don't mean to be nitpicky but I think that associated companies can charge one another whatever they (their executives) wish. Realisticly: say coy A sells trillions of gizmos to an outside customer at $x dollars but an associated coy B also buys a relatively small (miniscule even) quantity of them. In this scenerio it may acutually cost more to make/pack/ship/account for the associated company sale.

The points you raise are to do with the eventual accounting treatment where sales to associted companies (western style accounting ?) need to be elimated in their entirety. To my mind this has nothing at all to to do with the price charged. (I am not sure that baan has the smarts to do this elimination.) It does however have a very rich set of pricing features together with rebate and commision facilities.

Terry

Hi Terry, it's OK. You have good input actually for completely separate legal entities. But remember that Abdul is asking about 2 different "Baan companies" which may not necessarily be different legal entity, depends on which version of Baan he uses and how the consultant modelled it in Baan. I should've made it clear that I was talking about intra-legal-entity transfer price

Rgds,
Paul