STOCK TRANSPORT ORDERS

by -Nagesh
 STOCK TRANSFER USING STOCK
TRANSFER ORDER
Advantages of stock transfer with STO w.r.to
transfer posting
1. Good receipt can be planned in receiving plant
2. Can include an additional vendors (freight, etc) in Stock
Transport Order
3. Delivery costs can be entered in STO
4. Its a part of MRP PR created via MRP can be converted to
STO
5. Goods Issue can be done through Shipping delivery
7. Total process can be monitored through PO history
Overview of stock transfer options
STOCK TRANSFER PLANT to PLANT
1 Step

Carried out ONLY in Inventory Management

Entered as a transfer posting MB1B
Can be planned by reservation
The quantity of unrestricted stock entering in sending plant posts
IMMEDIATELY
to unrestricted stock of receiving Plant
Postings are valuated at the price of sending plant
If it is between 2 company codes, it will create 2 accounting
documents at the time
of goods issue
STOCK TRANSFER PLANT to PLANT
2 Step
Carried out ONLY in inventory management
Transfer posting CAN NOT be planned through a reservation
Goods issue sending plant > Stock-in-transit of receiving Plant >
Goods Receipt of
receiving Plant.
Transfer posting (Goods issue-1step) is valuated at the price of
sending plant
If it is between 2 company codes, it will create 2 accounting
documents at the time
of goods issue. If any offset, will post to Company code clearing
account
We can request and monitor stock transfer in purchasing through
a PR, STO
 STOCK TRANPORT ORDER WITHOUT
SD DELIVERY
Goods Issue Sending Plant > Stock-in-transit of receiving plant > Goods receipt of
receiving Plant
Delivery costs CAN BE entered in ST Order
Transfer posting (Goods issue-1step) is valuated at the price of sending plant
If it is between 2 company codes, it will create 2 accounting documents at the
time of goods issue. If any offset, will post to Company code clearing account
Process Flow
1. Creation of ST order in receiving Plant for sending plant with a
document type UB in ME21N
2. Posting a goods issue through transfer posting MB1B at sending plant
with a movement type 351
3. Posting a goods receipt MIGO at receiving plant with movement type
101
4. Invoice verification at receiving plant Normal MIRO
 STOCK TRANSPORT ORDER WITH
DELIVERY
Carried out in Purchasing (entering the STO), Shipping
(delivery
at sending Plant) and Inventory management (GR at
receiving Plant)
Other characteristics are same as that of STO without
delivery
Process Flow
i. Creation of STO at sending Plant
ii. Post goods issue through delivery (VL 10B or 10F) at
sending plant with movement type 641
iii. Goods receipt (MIGO) at receiving plant with movement
type -101
 STOCK TRANSPORT ORDER WITH
DELIVERY & BILLING
The transfer posting in NOT VALUATED at the valuation price of the
material of sending Plant. But defined in both the sending and
receiving plant using conditions
Possible ONLY between plants at DIFFERENT COMPANY CODES
The areas are Purchasing (STO), Shipping(sending Plant delivery
and goods issue), Billing Plant (Creation of Invoice at sending Plant),
Inventory management (Receiving Plant goods receipt) and Invoice
verification (MIRO at receiving plant)
Goods Issue through Delivery > Stock-in-transit
Company code at receiving Plant > Goods receipt at receiving plant
Prices in purchasing as per the conditions
maintained in Info record and inter company pricing procedure
Goods movements are valuated as per the accounting documents
generated.
 Accounting documents are generated

a. Goods Issue at sending Plant

b. Goods receipt at receiving Plant
c. Billing at sending Plant
d. Invoice verification at receiving plant
Process Flow
a. Creation of STO in receiving Plant for sending Plant.
Document type UB and item category -U
b. Post delivery in sending Plant (Movement type 643)
c. Creation of billing document in sending plant
d. Post GR at receiving Plant
e. Post invoice at receiving Plant
 CROSS COMPANY STOCK TRANFER

We can do a cross company stock transfer in 3 ways

a. Stock transfer between 2 plants by 1 step or 2
step
b. An STO without delivery via shipping
c. STO with delivery via shipping (possible for
plants in different company codes)
In all cases the value of transportation is posted
to a company code clearing account in both the
plants. The stock transfer is valuated at the
valuation price of the material in sending plant
 Valuation of stock transport with
billing- INTERCOMAPNY EXAMPLE
Plant P1 orders 10Kg of material from Plant P2
Value of the material at P1 10
Price for inter company billing at P1 12
STO order price 11
Plant Transaction Value Account Remarks
P1 Goods Issue 100(-) - Stock Account (at price of P1)
100(+) Change inventory stocks (at price of P1)
P1 Billing 120(-) Sales revenue (Price Inter Co billing)
120(+) Customer clearing (Price Inter Co billing)
P2 Goods Receipt 110(-) GR/IR clearing ( P2 -STO Price)
110(+) Stock account ( P2 -STO Price)
P2 Invoice verify. 120(-) - Vendor account (Billing Price)
110(+) GR/IR clearing (STO Price)
10(+) PDA or Stock A/c (Difference)
 THANK YOU
- Nagesh