What is Stock Transfer Order

http://www.sapanalyst.net/2009/05/list-ofmovement-types-dump.html
https://www.scribd.com/doc/52842877/StockTransfer-process-in-sap
What is Stock Transfer Order? What are the IMG configurations? How do you create a
STO?
by: Jupalli Samatha
The following steps have to be followed in order to configure stock transport order between
two plants.
1. Create a vendor for the Company code of the receiving plant using account group 0007 via TCode XK01.
2. In the purchasing data view assign the supplying plant and the schema group.
3. Create customer with the sales area of the vendor.
4. The shipping conditions, the delivering plant and the transportation zone determine the route
in the STO.
5. In the pricing procedure determination relevant to the STO assign document pricing procedure
and customer pricing procedure to get the pricing in the invoice.
6. Maintain condition records for pricing condition.
7. Maintain carrier as a partner in the customer master.
8. In OMGN select the supplying plant and assign the company code and sales area. Similarly
select the receiving plant and assign the company code and sales area (The company code to
which the plant is assigned to).
9. Assign the delivery type and checking rule to the document type.
10. And finally, assign the purchasing document type to the supplying plant and the receiving
plant.
11. Create the STO using T-Code ME 21N and save.
12. Check for release strategy if any and release using T-Code ME 28.
13. Create delivery in background using VL10G.
14. If delivery is created, it is an indication of correct configuration and master data creation.
Stock transfer between two plants in different company codes is known as inter company
stock transfer.
1. Material should be maintained in both supplying and receiving plant MM01
2. Stock should maintain only in supplying plant MB1C
3. Create receiving plant as a customer in supplying plants company code and sales area XD01
4. Assign this customer number in receiving plant details OMGN
5. Assign supplying sales area in supplying plant details OMGN
6. Assign delivery type NB for in combination of supplying/ receiving plants.

Create STO ME21N

As it is normal there in the item details were should get shipping date i.e. customer number
Go for Delivery VL10B
Shipping point *****
Select PO go for execute
then select the delivery then go for delivery ............create delivery,,,, delivery number generated.
Goods Issue VL02
Delivery doc **********
Click on picking
enter the picking qty
Click on PGI
In the mean time check in the PO history you will get the details
Goods receipt MIGO
In Stock overview, the stock will be updated....

Stock Transfer Using Stock Transport Order

Use
A number of procedures are available to enable you to transfer materials from one plant to another:

Stock Transfer Between Plants in One Step

Stock Transfer Between Plants in Two Steps

Stock Transport Order Without Delivery

Stock Transport Order with Delivery via Shipping

Stock Transport Order with Delivery and Billing Document/Invoice

Features
Advantages of the Stock Transport Order
The transfer of stock using a stock transport order has the following advantages over the transfer of stock
without a stock transport order:

A goods receipt can be planned in the receiving plant.

You can enter a vendor (transport vendor) in the stock transport order.

Delivery costs can be entered in the stock transport order.

The stock transfer order is part of MRP: Purchase requisitions that were created in MRP can be
converted into stock transport orders.

The goods issue can be entered using a delivery via Shipping (LE-SHP).

The goods receipt can be posted directly to consumption.

The entire process can be monitored via the purchase order history.

Characteristics of the Various Stock Transfer Procedures

The following table lists the characteristics of the individual procedures used for stock transfer.
Plant to plant
1 step

Plant to plant
2 steps

St. trnsp. ord.

w/o SD

St. trnsp. ord.

with SD

St. trnsp. ord.

with billing

Order type
MM-PUR

UB

UB

NB

Movement type
MM-IM

Transfer postg. GI: 303

using 301
GR: 305

GI: 351
GR: 101

GI: 641
GR: 101

GI: 643
GR: 101

Delivery type SD

NL

NLCC

Billing type SD

IV

Doc. type MM-IV

RE

Price

Valuation price

Valuation price

Valuation price

Valuation price

Pricing in SD
and MM

Planning via...

Reservation

Purchase order Purchase order Purchase order

Stock after GI

Stock in transfer Stock in Transit Stock in Transit (Stock in transit

CC)

Delivery costs

Cross-companycode via...

Company code Company code Company code Company code Revenue

clearing
clearing
clearing
clearing
account;
GR/IR clearing

yes

yes

yes

You can find an overview of all the movement types in the Implementation Guide (IMG)
for Inventory Management in the step Copy/Change Movement Types.

Activities
Goods Issue in Inventory Management or in Shipping
You can enter a goods issue for the stock transport order in either Inventory Management (MM-IM) or
Shipping (LE-SHP). For goods issues in Shipping, a replenishment delivery is created (see also Posting
Goods Issue in Shipping).
Prerequisites for Goods Issues in Shipping:

To process the goods issue via Shipping, the following prerequisites must be fulfilled (see also
Movements via Shipping):

Goods

In Customizing for Purchasing, a delivery type must be assigned to the purchasing document
type. If the document type does not have a delivery type, you can post the goods issue only in
Inventory Management.
The customer number of the receiving plant must also be maintained in Customizing for
Purchasing.

In the Customizing system of Sales & Distribution, the shipping point determination must be
maintained.

In the material master record, shipping data must be maintained.

If the document type contains a delivery type but another requirement is missing (for example, shipping
data), you receive either a warning message or an error message (depending on the system
configuration) when you try to enter the stock transport order.
If you receive a warning message, you can create the stock transport order, but you can post the goods
issue for this item only in Inventory Management.

Stock Transfer Using the Stock Determination Function

If you want to withdraw material for stock transfers from various storage locations and stocks according to
a particular strategy, the R/3 System can support you using
Stock Determination.

Stock Determination
Use
Stock determination enables you to implement various strategies to withdraw material for goods issues
and stock transfers. You configure these strategies in Customizing. Based on the material requirements
entered, the R/3 system determines how and when the material should be withdrawn, and from which
storage locations and stocks.
When planning your materials requirements, it is not always important that you define the stocks and
storage locations from which the materials are later to be withdrawn. Automatic stock determination takes
care of this decision for you, thus preventing you from defining these parameters too early and restricting
your business processses unnecessarily. The R/3 system does not determine the values you require until
the goods movement is posted.
Based on the stock determination strategy you predefine, the system makes decisions on material
withdrawal depending on the material, plant, and the business process.
You can use stock determination for the following stocks:

unrestricted-use stock
vendor consignment stock (K)

pipeline material (P)

sales order stock (E)

project stock (Q)

Scenario 1:
The backflushing of material in repetitive manufacturing or for a production order should
be carried out for a companys own stock first of all and then for vendor consignment
stock. The most reasonable vendors stock should be used first.
Scenario 2:
There is always a preferred vendor for all forms of material withdrawal. Material should
be withdrawn from this vendors stock first. If there are several preferred vendors, you
can use split valuation for price and quantity.
Scenario 3:
When staging material for production, you should firstly withdraw from a central buffer
store a particular component manufactured in-house. When this store is empty, you
should be able to withdraw the components from the issue storage location.
Scenario 4:
If you cannot cover the requirements from the stocks on-hand, you should withdraw the
remaining quantity from the pipeline supply.

Integration
Stock determination functions are of significance to the integration of the R/3 System as a whole, and can
be used in several R/3 application components. You can use stock determination in the following
application components:

MM IM (Inventory Management)
LE WM (Warehouse Management)

PP SFC (Production Orders)

PP REM (Repetitive Manufacturing)

PP KAB (Kanban)

LO BM (Batch Management)

SD (Sales and Distribution)

In Customizing, you can define how stock determination interacts with the settings of the Warehouse
Management System and Batch Determination.

Prerequisites
In order to work with stock determination, you must configure the following:

In Customizing for Inventory Management, you define a cross-application strategy for stock
determination, according to which stocks should be reduced. Each strategy is determined at plant
level based on a stock determination group and stock determination rule.
You assign a stock determination group to the material in the material master record.
In Customizing for the application you are using, assign a stock determination rule to the
business transaction/event.

Activities
The R/3 System can carry out stock determination in two ways:

automatically in the background

Using this procedure, you do not have any way of intervening in the stock determination process
as processing only takes place in the background. It is entirely up to the R/3 System to determine
the stock from which materials are withdrawn and posted.

via online processing during the stock determination process

If you have configured online processing in Customizing, you can have the R/3 System display
the result of stock determination in a dialog box and you can change the result manually.

If the stock determination procedure did not remove materials from the stock you
requested, you can only cancel this posting via a reverse posting in the application you
are using.
You should always prepare each strategy thoroughly and configure and test the
application components extensively before you start using them.

Stock Transfer Between Plants in One Step

Use
This type of stock transfer can only be carried out in Inventory Management. Neither Shipping in the
issuing plant nor Purchasing in the receiving plant is involved in the process.
Transferring stock in one step has the following characteristics:

The stock transfer is entered as a transfer posting in Inventory Management.

The transfer posting can be planned by creating a reservation.

The quantity of the stock transferred is posted immediately from the unrestricted-use stock of the
issuing plant to the unrestricted-use stock of the receiving plant

The transfer posting is valuated at the valuation price of the material in the issuing plant.

If the plants involved belong to different company codes, the transfer between plants is also a
transfer between company codes. In this case, the system creates two accounting documents for
the transfer posting. The stock posting is offset against a company code clearing account.

Stock Transfer Between Plants in Two Steps

Use
This type of stock transfer can only be carried out in Inventory Management. Neither Shipping in the
issuing plant nor Purchasing in the receiving plant is involved in the process.
The stock transfer includes the following processes:
1. A goods issue in the issuing plant
2. A goods receipt in the receiving plant
Transferring stock in two steps has the following characteristics:

The transfer posting cannot be planned by creating a reservation.

The quantity posted from stock is first of all managed as stock in transfer in the receiving plant.
Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock
of the receiving plant.
This enables the quantity "on the road" to be monitored.

The transfer posting is valuated at the valuation price of the material in the issuing plant.
If the plants involved belong to different company codes, the transfer between plants is also a
transfer between company codes. In this case, the system creates two accounting documents
when the goods issue is posted. The stock posting is offset against a company code clearing
account.

Stock Transport Order Without Delivery

Purpose
This type of stock transfer not only involves Inventory Management but Purchasing in the receiving plant.
The goods issue posting in Inventory Management is carried out without the involvement of SD.

Characteristics of a Stock Transfer Order

The quantity posted from stock is first of all managed as stock in transit of the receiving plant.
Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock
of the receiving plant.
This enables the quantity "on the road" to be monitored.

Delivery costs can be entered in the stock transport order.

The transfer posting is valuated at the valuation price of the material in the issuing plant.

If the plants involved belong to different company codes, the transfer between plants is also a
transfer between company codes. In this case, the system creates two accounting documents
when the goods issue is posted. The stock posting is offset against a company code clearing
account.

Process Flow
1. Creating a stock transport order in the receiving plant
Plant A would like to order materials from plant B. Plant A enters a stock transfer order. The stock
transfer is used to plan the movement.
2. Posting a goods issue in the issuing plant
Plant B supplies the goods to plant A. Plant B enters the goods issue for the stock transfer order.
The goods are then posted to the stock in transit of the receiving plant.
3. Posting a goods receipt in the receiving plant
Once the goods arrive in the receiving plant, the plant posts the goods receipt. The stock in
transit is therefore reduced and the unrestricted-use stock increased.
The goods receipt is entered with reference to the purchase order.

Stock Transport Order with Delivery via Shipping

Purpose
The following components are involved in this type of stock transfer:

Purchasing (MM-PUR) in entering the order

Shipping (LE-SHP) in making the delivery from the issuing plant

Inventory Management (MM-IM) at goods receipt in the receiving plant

Characteristics of a Stock Transfer Order

The quantity posted from stock is first of all managed as stock in transit of the receiving plant.
Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock
of the receiving plant.
This enables the quantity "on the road" to be monitored.

Delivery costs can be entered in the stock transport order.

The transfer posting is valuated at the valuation price of the material in the issuing plant.

If the plants involved belong to different company codes, the transfer between plants is also a
transfer between company codes. In this case, the system creates two accounting documents
when the goods issue is posted. The stock posting is offset against a company code clearing
account.

Process Flow
1. Creating a stock transport order in the receiving plant
Plant A would like to order materials from plant B. Plant A enters a stock transfer order. The stock
transfer is used to plan the movement.
2. Posting a delivery in the issuing plant
Plant B supplies the goods to plant A. Plant B enters a replenishment delivery in Shipping. The
goods are then posted to the stock in transit of the receiving plant.
3. Posting a goods receipt in the receiving plant
Once the goods arrive in the receiving plant, the plant posts a goods receipt for the delivery. The
stock in transit is therefore reduced and the unrestricted-use stock increased.

Stock Transport Order with Delivery and Billing

Document/Invoice
Purpose
With this type of stock transfer, the transfer posting is not valuated at the valuation price of the material in
the issuing plant, but is defined in both the issuing and receiving plants using conditions.

Stock transfers that include deliveries and billing documents/invoices are only
possible between plants belonging to different company codes.
If you want to carry out a cross-company-code stock transport order with delivery
but without a billing document, you must set the Relevant for Billing (data
element FKREL) indicator in Customizing of the item type to "blank" (Not relevant
for billing).
The following applications are involved in this type of stock transfer:

Purchasing (MM-PUR) in entering the order

Shipping (LE-SHP) in making the delivery from the issuing plant

Billing (SD-BIL) in creating the billing document for the delivery

Inventory Management (MM-IM) at goods receipt in the receiving plant

Invoice Verification (MM-IV) at invoice receipt in the receiving plant

Characteristics of a Stock Transfer Order

The quantity posted from the stock of the issuing plant is managed neither in the issuing plant nor
in the receiving plant. The quantity is first posted to the unrestricted-use stock of the receiving
plant in the goods receipt posting. After the goods issue has been posted, the stock overview
displays the quantity transferred as Stock in trans. CC. This stock is determined dynamically for
stock balance display.
With this transfer posting, price determination is carried out in both Purchasing and Sales &
Distribution (SD).
o

In Purchasing, the price of the material in question is determined in the usual manner
(from the info record, for example).

In SD, pricing is also carried out as normal during the billing process.

The goods movements are valuated at the price determined in each case.

Accounting documents are created for the following transactions:

o

Goods issue

Goods receipt

Billing

Invoice receipt

Stock Transport Order with Valuated and Non-Valuated Sales Order Stock
When entering goods issues for cross-company-code stock transport orders, you can work with both
valuated and non-valuated sales order stock (E) using the one-step procedure (movement type 645) and
the two-step procedure (movement type 643). In the MRP view of the material master record (MRP 4) you
determine the stock from which material is to be withdrawn by selecting the Dependent requirements
indicator for individual and collective requirements. There are three options:

Indicator set to Blank (individual and collective requirements): Material is removed from sales
order stock

Indicator set to 1 (individual requirements only): Material is removed from sales order stock

Indicator set to 2 (collective requirements only): Material is removed from unrestricted-use

standard stock

Process Flow
1. Creating a stock transport order in the receiving plant
Purchasing also determines the price for the materials.
2. Posting a delivery in the issuing plant
The issuing plant enters a replenishment delivery in Sales and Distribution. Unlike a stock
transfer without a billing document, no stock in transit is created.
3. Creating a billing document in the issuing plant
The issuing plant creates the billing document for the delivery. SD also determines the price for
the delivery
4. Posting a goods receipt in the receiving plant
The receiving plant posts a goods receipt for the delivery. The goods are posted to unrestricteduse stock
5. Posting an invoice in the receiving plant
The invoice referring to the billing document is entered in the receiving plant.

Cross-Company Stock Transfer

Purpose
In Materials Management Inventory Management, you can transfer goods between different company
codes. You can perform these stock transfers as one-step stock transfers (material movement in a single
step) or as two-step stock transfers (material movement in two steps). You can also use the purchasing
and distribution functions (that is, stock transport orders). In the following process, only one-step and twostep stock transfers are explained. In the case of a one-step stock transfer, the goods are issued and
received in a single transaction; in the case of a two-step stock transfer, you enter the goods issue and
then the goods receipt. If the valuation procedures and delivery prices are different in the two plants, the
receiving plant bears all the costs and value differences that occur.

Use
Even when the plants involved in a stock transfer belong to different company codes, you can use
conventional methods to transfer the stock:

By transferring the stock between plants in one or two steps

By carrying out a stock transport order without the delivery function via Shipping

By carrying out a stock transport order with the delivery function via Shipping

In these cases, the value of the transfer posting is posted to a company code clearing account in both the
issuing and the receiving plants. The stock transfer is posted at the valuation price of the material in the
issuing plant.

Features
Stock Transport Order with Delivery Via Shipping and Billing Document/Invoice
You can carry out stock transfers with the delivery and billing function. In this procedure, the stock is
transferred in the form of a sale between two plants.

Stock transfers that include deliveries and billing documents/invoices are only possible
between plants belonging to different company codes.
If you want to carry out a cross-company-code stock transport order with delivery but
without a billing document, you must set the Relevant for Billing (data element FKREL)
indicator in Customizing of the item type to "blank" (Not relevant for billing).
When you use the delivery function in Shipping, the whole transaction - from the delivery through billing
and invoice verification - is reflected in the system. The following Shipping functions are available for this:

Delivery:
For example, planning shipping activities, picking, packing

Billing:
For example, price determination

Before you can use a stock transport order with the delivery function and a billing document, the plant
must be assigned to a vendor. You maintain the vendor - plant assignment in the vendor master record.
If a user enters a vendor when creating a stock transport order, the plant is automatically copied from the
vendor master record.
A stock transport order with delivery and billing is a mixture of a standard purchase order and a stock
transport order: as in the standard purchase order, when items are entered (standard items with no item
category) price determination is carried out and shipping data established; as in the stock transport order,
the transfer of stocks from one location to another is monitored.
Stock Transport Order with Valuated and Non-Valuated Sales Order Stock
When entering goods issues for cross-company-code stock transport orders, you can work with both
valuated and non-valuated sales order stock (E) using the one-step procedure (movement type 645) and
the two-step procedure (movement type 643). In the MRP view of the material master record (MRP 4) you
define from which stock material is to be withdrawn by selecting the Dependent requirements indicator for
individual and collective requirements. There are three options:

Indicator set to Blank (individual and collective requirements): material is removed from sales
order stock

Indicator set to 1 (individual requirements only): material is removed from sales order stock

Indicator set to 2 (collective requirements only): material is removed from unrestricted-use

standard stock

Prices
In Purchasing, the price of the material in question is determined in the usual manner (from the info
record, for example).
In SD, pricing is also carried out as normal during the billing process.

Your company has to maintain settings in the Customizing system determining whether
stock transfers between two plants should be with or without billing.
You can also determine whether individual users can carry out stock transfers, for
example, with or without billing or in either of the two ways.
If you choose Purchase Order Create Stock Transfer (i.e. a stock transport order
without billing) and stock transfer with billing has been defined for the plants in
Customizing, a message appears indicating that you should create a standard purchase
order.

Transfer Material: One-Step Stock Transfer

1. Call up the transaction as follows:

Materials Management Inventory

Management Goods Movement Transfer

Menu Path

Logistics
Posting

Transaction Code

MB1B

2. Enter the following data:

Field

Data

Movement type

301

Plant

1000

Storage location

0001

3. Choose

To skip any warning messages, choose

4. Enter the following data:

Field

Data

Receiving plant

2000

Recv. Sloc

0001

Material

1300-270

Quantity

100

5. Choose

6. Choose

The system confirms the posting and assigns a document number. Make a note of the number
that appears in the status bar.
7. Choose

until the overview tree appears.

Displaying the Material Document for a One-Step

Transfer Posting
1. Call up the transaction as follows:
Menu Path

From the Inventory Management node, choose

Material Document Display

Transaction Code

MB03

2. Enter the following data:

Field

Data

Material document

Your document number

Mat. doc. year

Current year

3. Choose

The system displays an overview of the material document. In the FIs column, you can see that
the stock in plant 1000 has been reduced by the quantity to be transferred and added to the stock
in plant 2000.

4. Choose

until the overview tree appears.

Transfer Material: Two-Step Stock Transfer Issue

1. Call up the transaction as follows:
Menu Path

From the Goods Movement node, choose Transfer

Posting .

Transaction Code

MB1B

2. Enter the following data:

Field

Data

Movement type

303

Plant

1000

Storage location

0001

3. Choose

4. Enter the following data:

Field

Data

Receiving plant

2000

Material

1300-270

Quantity

100

5. Choose

6. Choose

7. Choose

until the overview tree appears.

Transfer Material: Two-Step Stock Transfer Receipt

1. Call up the transaction as follows:
Menu Path

From the Goods Movement node, choose Transfer

Posting .

Transaction Code

MB1B

2. Enter the following data:

Field

Data

Movement type

305

Plant

2000

Storage location

0001

3. Choose

4. Enter the following data:

Field

Data

Material

1300-270

Quantity

100

5. Choose

6. Choose

7. Choose

until the overview tree appears.

Difference for Stock Transfer and Transfer Posting

Questions: Tell me the difference between transfer postings and stock transfers. What are
the material documents that are generated and what are the accounts hits.
Stock Transfer = physically stock transfer of goods,
Trasfer posting = may physical (or) logical (not physical) stock transfer of goods.
Transfer posting and stock transfer:
Transfer posting : plant to plant/ Storage location to Storage Location.
In which if the valuation area is same. i.e.
- Sloc to Sloc within one plant then there will be no accounting entry occurs.
- However if the its Sloc to Sloc but with two different plant. and valuation area+valuation price
is diff then there will accounting doc and material doc created for the same.
Stock Transfer:
There are unrestricted stock, quality inspection stock, blocked stock. Also you can have GR
Blocked stock, special stock too. It will update the quantity.
*-Madhura k
Stock Tranfer and Transfer Posting - Importances are same up to Plant to Plant . However
Customer ( Client ) Prefer Stock Transfer than Transfer Posting.

See the Below Advantages of Stock Transfer more than Transfer Postings :
The transfer of stock using a stock transport order has the following advantages over the transfer
of stock without a stock transport order:
- A goods receipt can be planned in the receiving plant.
- You can enter a vendor (transport vendor) in the stock transport order.
- Delivery costs can be entered in the stock transport order.
- The stock transfer order is part of MRP: Purchase requisitions that were created in MRP can be
converted into stock transport orders.
- The goods issue can be entered using a delivery via Shipping (LE-SHP
- The goods receipt can be posted directly to consumption.
- The entire process can be monitored via the purchase order history.
However we need to do some times Plant to Plant Trasfer Postings only in some industires. This
is based on Customer Requirement.
*-- Pavan G
Kulkarni
How many stock transfer process are avaikable in SAP?
Like 1)Two step stock transfer (MM/SD) .
2)Two steap stock transfer ( MM only) Move type 303& 305.
3) One step stock transfer Move type 301.
Stock Transport Order (STO)
Without STO
One step stock transfer Move type 301.
Two step stock transfer ( MM only) Move type 303& 305.
Using STO without delivery:
doc.type: UB
GI:351, GR:101
STO with delivery:
GI:641, GR:101
delivery type:NL
STO with delivery and billing:
GI:643, GR:101
delivery type:NLCC , billing type:IV

SAP ECC6 : Setting up Stock Transport

Order (STO)
Business Requirement:
Stock needs to be transferred from one storage location to another. Both storage locations are in
the same plant.
Solution:
To configure Stock Transport Order between two storage locations.
Benefits:

Freight costs can be planned and mentioned before hand in the order itself.
Freight invoice can be posted with reference to this order.

The order can be integrated with MRP.

A receipt can be planned at the receiving storage location.

The received material can be posted to quality inspection stock / blocked stock.

The entire process can be monitored via the order history.

Steps for configuration:

Step 1: Activate Stock Transfer between Storage Locations
Step 2: Assign Delivery Type and checking rule according to storage
Step 3: Define Shipping Data for Stock Transfer between Storage Locations
Step 4: Define Rule for Determination off Shipping Point
Step 5: Shipping Point Assignment According to Storage Location
Step 6: Maintain the Material for Both the Storage Locations
Configuration steps with screenshots and menupath:
Step1: Activate Stock Transfer between Storage Locations
SPRO->Material Management->Purchasing->Purchase Order->set up stock transport order->set
up stock transport order between storage locations-> Activate Stock transfer between storage
locations
Step2: Assign Delivery Type and checking rule according to storage
SPRO->Material Management->Purchasing->Purchase Order->set up stock transport order->set
up stock transport order between storage locations->Assign Delivery Type and Checking Rule
According to Storage
Step3: Define Shipping Data for Stock Transfer between Storage Locations

SPRO ->Material Management ->Purchasing ->Purchase Order ->set up stock transport order
->set up stock transport order between storage locations -> Define Shipping Data for Stock
Transfers between Storage Locations
Step4: Define Rule for Determination off Shipping Point
SPRO->Material Management->Purchasing->Purchase Order->set up stock transport order->set
up stock transport order between storage locations -> Set-up Storage-Location dependent
shipping point determination->Define rule for determination of shipping point
Step5: Shipping Point Assignment According to Storage Location
SPRO->Material Management->Purchasing->Purchase Order->set up stock transport order->set
up stock transport order between storage locations-> Set-up Storage-Location dependent
shipping point determination-> Assign Shipping Points According to Storage Location
Step 6: Maintain the Material for Both the Storage Locations
Maintain the Material master for the issuing and receiving storage locations.

STOCK TRANSFER ORDER

Follow STO Process for this;
1.Create a vendor for the company code of receiving plant, using account group :
0007 using T-Code XK01.
2. Assign this vendor to Delivering plant
Go to XK02 >Purchasing view>Extras>Add. Purchasing data>Plant
3. Create internal customer with the sales area of the vendor. Go To XD01
4. In Pricing procedure determination relevant to STO, assign document Pricing
Procedure and customer pricing procedure appropriate for STO to get the pricing in
the invoice.
5. Maintain condition records for the relevant pricing condition.
6. Some more setting for STO: Go to MM> Purchasing > Purchase Order > Set up
STO > define shipping data for plants > Go to Receiving plant >assign customer
here & Supplying SA (for billing) to Receiving plant here
7. Go to MM > Purchasing > Purchase Order > Set up STO > define shipping data

for plants > Go to Supplying plant and assign the sales area of receiving plant.
8. Go to MM > Purchasing > Purchase Order > Set up STO > assign delivery Type &
Checking rule
Assign the delivery type to document type. In this case, Delivery type NLCC is
assigned to Document type NB
9. Go to MM> Purchasing > Purchase Order > Set up STO > Assign document Type,
One step Procedure, Under delivery tolerance
Assign the document type NB to supplying plant and receiving plant
10. After all settings , Create the STO using T-Code:ME21N and maintain pricing
conditions of freight and Save.
11. Create Delivery :VL10G
Click on the Background Button after selecting line item
A message is flashed : See log for information> next Click on Log for delivery
creation Button >click on line item>click on document button to get Delivery
document No
12. Picking, PGI:VL02N
13. Billing:VF01
Save the document and its done
14. J1IIN - Outgoing Excise Invoice
15. MIGO - Goods Receipt against outbound Delivery
16. J1IEX - Capture & Post Excise Invoice
Pricing configuration for STO: In SPRO > MM > Purchasing > Conditions > Define Price Determination Process >
Define Schema Determination > Determine Schema for Stock Transport Orders >
Here assign Calculation Schema "RM2000" i.e. Stock Transfer Document to Schema
Grp Pur. Org, STO Type (For e.g. UB) and Supplying Plant.
Calculation Schema "RM2000" has condition type P101 which will pick up the MAP of
supplying plant automatically during creation of STO in ME21N ("Conditions" Tab).
You can create new freight / delivery cost conditions in M/06 and assign in pricing

procedure "RM2000" in M/08 and also assign the Accrual Key to this and do the
Account Determination for this Accrual Key in OBYC
At the time of PGI, following accounting entry will get generated;
Stock A/c - Dr - 110 INR (Receiving Plant)
Stock A/c - Cr - 100 INR (Supplying Plant)
Freight Clearing A/c - Cr - 10 INR (Supplying Plant)