Udemy – SAP S/4 HANA “UPA” : Material Ledger : Transfer Pricing

File Name:	SAP S/4 HANA “UPA” : Material Ledger : Transfer Pricing
Content Source:	https://www.udemy.com/course/sap-s4-hana-upa-material-ledger-transfer-pricing/
Genre / Category:	Other Tutorials
File Size :	8.9 GB
Publisher:	Karanam Sreedhar
Updated and Published:	July 14, 2025

Product Details

1. Ledger Design

0L – Leading Ledger (IFRS):
The primary ledger used for statutory reporting under IFRS. All main financial postings are recorded here, forming the legal backbone of the organization’s financial statements.
2L – Non-Leading Ledger (US GAAP):
A parallel ledger that supports reporting under US GAAP. This enables organizations to comply with multiple accounting standards without duplicating transactional data.
4G – Ledger for Group Valuation (IFRS):
Dedicated to group valuation under IFRS, this ledger eliminates internal profits from intercompany transactions, ensuring accurate and compliant consolidated group reporting.
5P – Ledger for Profit Center Valuation (IFRS):
Used for internal management reporting, this ledger values transactions at transfer prices between profit centers, supporting detailed profitability analysis and internal performance measurement.

2. Currencies and Valuation Setup

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SAP S/4HANA enables organizations to value inventory and cost of goods sold (COGS) in multiple currencies and from different perspectives, supporting both external and internal reporting requirements. The main currency and valuation types are:

Company Code Currency (Local):
- 10: Legal Valuation (statutory view)
- 11: Group Valuation (eliminates internal profits)
- 12: Profit Center Valuation (internal transfer prices)
Group Currency:
- 30: Legal Valuation
- 31: Group Valuation
- 32: Profit Center Valuation
Hard Currency:
Used for countries with high inflation or for global comparability.
- 40: Legal Valuation
- 41: Group Valuation
- 42: Profit Center Valuation
Index-Based Currency:
Supports inflation accounting.
- 50: Legal Valuation
- 51: Group Valuation
- 52: Profit Center Valuation
Global Company Currency:
Used for global consolidation and reporting.
- 60: Legal Valuation
- 61: Group Valuation
- 62: Profit Center Valuation