Transfer Pricing is the price at which two related parties perform business transactions between themselves. Every organization follows a regulatory guideline specific to their country to derive transfer prices for the products. This formula states one of the ways in which Transfer Pricing is calculated.
Transfer Pricing = Full Cost (sum of all fixed and variable costs) + Markups
Let's assume the Sales Rep exposes a currency field 'Manufacturing Cost' and sends collaboration request to another Factory user.
Cost Model available with the Sales Rep
Cost Model with the Factory User
|Manufacturing||$70 (Cost of Raw Material + Labor)|
The administrator needs to create a Transfer Map so that Sales Reps can send out a collaboration request. For this requirement, the Transfer Price Map would look as the following:
|Source Charge Type||Standard Price|
|Target Cost Model||Factory Cost Model|
- In CPQ Console, go to + (All Tabs) > select Cost Models.
- Select the required cost model.
- From the Transfer Prices related list, click New Transfer Price to create a Transfer Price mapping.
- Enter the following details and click Save.
|Source Field||The API Name of the field for which you want the pricing details.|
|Source Charge Type||Mention the Charge Type of the Source Field, whether it is a Standard Price, License Fee, Subscription Fee or any other.|
|Target Cost Model||Enter the name of the destination Cost Model from which you want to get the price of a field.|
|Target Field||Enter the API Name of the field as given in the Target Cost Model.|
Enter the API Name of the Target Object which the Target Field is a part of.
For example, if the Target Field is 'Net Unit Price' and is defined on the Line Item object, the Target Object will be Apttus_Config__LineItem__c.
- Create a new Quote using price list.
- Click Configure Products button. Add products and go to Cart.
- Using the collaborator icon send the request to Factory User.
- Factory User receives the Collaboration Request. Applies adjustments or enters the price and clicks Submit For Merge. Please refer Assigning the configuration to the Collaborator or Queue for details.
- The Transfer price is set to copy Net Price from Collaborator's Quote to a cost type named "Cost From Factory" of requester's Quote.
- Open the requester's Quote. Go to Cart and click Merge in the Collaborator pop-up.
- Click Analyze Quote to analyze the product cost.