Specifying a margin cost component

When you select the Adopt Selling Cost Structure check box for an intercompany trade agreement or an intercompany trade order, selecting a cost component on which to book the intercompany trade profit margin of the selling entity is mandatory or optional, based on:

• The applicable intercompany trade scenario if you are working in the Intercompany Trade Agreements (tcitr1100m000) session.

• The combination of intercompany trade scenario and originating business object if you are working in one of the intercompany trade order sessions.

If the selected margin cost component is part of the effective cost component structure of the item or assembly line, the intercompany trade margin is booked to the margin cost component.

If the margin cost component is not part of the effective cost component structure of the item or assembly line, the intercompany trade margin is added to or subtracted from the amount of the cost component whose cost component type is identical.

If for a labor line of a production order no margin cost component is specified and the labor cost components have the same cost component type, the intercompany trade profit margin is divided proportionately among the cost components:

If the intercompany trade profit margin is 30, the margin is apportioned as follows: