SAP Financial Accounting (SAP FI) Practice Exam

What type of transfer is initiated when transferring a company car from one cost center to another in a different company code while taking all costs and depreciation?

1. Intercompany transfer with net method

2. Intra-company transfer

3. Intercompany transfer with gross method

4. Direct transfer

The correct answer is: Intercompany transfer with gross method

When transferring a company car from one cost center to another in a different company code, and considering the need to account for all costs and depreciation, the appropriate term to describe this action is an intercompany transfer with the gross method. In this context, an intercompany transfer occurs because the transfer involves different company codes, which identifies the scenario as cross-company rather than within the same legal entity. The gross method is utilized when the full value of the asset being transferred is recognized in the transaction. This means that both the original cost of the asset and the related depreciation are taken into account in the transferring and receiving company codes, ensuring that financial statements of both companies reflect the correct asset valuation. The other options do not appropriately match the scenario described. An intra-company transfer would imply that both the originating and receiving cost centers belong to the same company code, which is not the case here. A direct transfer implies a simpler method of changing ownership without the complexities of cost and depreciation considerations, which is inadequate for the scenario where all costs and depreciation need to be tracked. Lastly, an intercompany transfer using net method would not consider the gross value appropriately, which does not align with the requirement to account for all costs related to the asset.