1

STOCK
TRANSFER
ORDER PROCESS
IN SAP

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Stock Transfer Order Process

SAP ERP has a special process with SAP Stock transport

order (STO) that enables to move stock from one plant to
another or between different Locations. In stock transfer
process, goods are procured and supplied within a company.
One plant orders the goods from another plant (they are
called the receiving plant/issuing plant).

This stock transfer can be carried out in the one-step

procedure and the two-step Procedure:
The following components are involved in this stock transfer:
● Purchasing in entering the order
● Shipping in making the delivery from the issuing plant
● Inventory Management at goods receipt in the receiving
plant
This stock transport order has the following characteristics:
● The quantity posted from stock is first of all managed as
stock in transit of the receiving plant. Only once the goods

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receipt has been posted is the quantity posted to the

unrestricted-use stock of the receiving plant.
This enables the quantity "on the way" to be monitored.
● You can enter delivery costs in the 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 stock transport order 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.

If you use the two-step procedure, use movement type

641.
If you use the one-step procedure (movement type
647), no goods receipt needs to be posted when the
goods arrive in the receiving plant.

In this document, two-step procedure is explained.

The material is posted to the stock in transit of the receiving
plant after goods issue at the supplying plant

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Configuration:
1. Define Shipping Data for Plants
Path: SPRO IMG Material Management Purchase
Order Set up Stock Transport Order Define
Shipping Data for Plants

In this example, FGP2 plant is a Supplying Plant so maintain only

Sales details as shown below

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In this example, FGP1 plant is the Receiving Plant so maintain the

customer number which is created earlier

2. Assign Delivery and Checking Rule to Document Type:

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Path: SPRO IMG Material Management Purchase

Order Set up Stock Transport Order Assign Delivery
Type and Checking Rule

Maintain Supplying Plant, Delivery Type NL for

document type UB

3. Determination of Shipping Point in Purchase Order:

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Path: SPRO IMG Logistics Execution Shipping Basic

Shipping Functions Shipping Point and Goods Receiving
Point Determination Assign Shiping Points

Loading group will be assigned to material as shown

below

pricing procedures

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define schema for stock transport order

maintain below

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assign vendor to the customer (XD02or bp )

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bp

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maintain customer pricing procedures

Create Purchase Info record(ME11)

Maintain all mandatory fields,net price & tax code

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Procedural Steps

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Access the transaction by (To create Purchase Order of the

material):

Logistics Materials Management

Via Menus Purchasing
Purchase Order Create

Via Transaction Code ME21N

To Create Purchase Order (ME21N)

Take ‘UB’ doc type & fill up all the mandatory fields.
Maintain ’Supplying plant’ at vendor field & maintain receiving
plant at ‘Item Overview’ level

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Maintain Purchase info record in PO manually.

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Click on save button . System will showing PURCHASE

ORDER Numeber

1.3. Access the transaction by (To create Purchase Order

of the material):

Logistics Sales AND Distribution

Via Menus Shipping &
Transportation Outbound Delivery
Create
Collective Processing of Document Due
for Delivery
Purchase Order Items
Via Transaction Code VL10D

Now we are Create Delivery Number

Put Shipping Plant Code & Details

Click On Execute Button .

Next Screen will appear

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Now follow the below step to create delivery number

1. Select And click on Background option

2. Select Green Row and click on Show /Hide Delivery

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Now Again select last row and click on Sequential Display

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Your Delivery Number Showing below just double click on

this

5. Now you see your delivery number into change mode so

you can fill up all delivery related data.

Click on picking tab and put quantity in picked quantity.

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Click on BACK icon to come main screen and select EDIT

option present on the top left of the screen and from drop
down select “Incompletion Log” and fill the required details if
any column appears.
Now go to Edit Option and click Incompleteness

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1.4. Access the transaction by (To create Purchase Order

of the material):

Logistics Sales AND Distribution

Via Menus Billing Billing
Document Create

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Via Transaction Code VF01

In Document field put your delivery number and & billing date
and give enter

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Click on save button . System will showing Invoice

Numeber

1.6 Access the transaction by (To create Purchase Order

of the material):

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Logistics Sales AND Distribution

Via Menus Billing Billing
Document Create

Via Transaction MIG Movement in

Code O ( goods out)
Now we will do MIGO to receive material stock in to receiving
plant.
We can do migo base on delivery number and Outbound Delivery
Number. Here we will do base on Outbound Delivery Number
Put Outbound Delivery Number and select movement type
101 to receive material stock end give enter system pick up
all data automatically like below screen

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Click On“Item OK” & click on icon and .

Once you post your document number generate .

Now to verify stock use Transaction Code MMBE and fill required
entry and execute ..

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Here you can see your stock update in Concern plant and storage
location and batch.

Now go in ME23N give your purchase order number and check

Purchase order history

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Return STO in SAP Logistics

Stock movement happens between storage location to storage
location, plant to plant or company code to company code.
Inclusion of delivery cost, tracking of transit stock can be achieved
through STO. Stock shipped out of receiving plant to customer
/retailer may receive back to the receiving plant as a return.
Again, this return product has to be sent back to supply plant for
any rectification, because customer shipping plant can’t rectify the
product. This document shall address how the return process
happens in STO.
Business Need

Product return from Customer

Product damage during transit

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Process flow

The process starts with the creation of Normal STO till the receipt
of return product by issuing plant.
Normal STO:

– Create STO

– Create shipment delivery

– Post Goods Receipt

– Create Billing (if applicable)

– Post Invoice (if applicable)

Return STO:

– Create Return STO

– Create shipment delivery

– Post Goods Receipt in MM Route

– Post Goods Receipt in SD Route

– Create Billing (if applicable)

– Post Credit Invoice (if applicable)

Key organization structure

Company code – 3000 (Intra company code)

Supply plant & Storage loc – 3400 & 0001

Receiving plant & storage loc – 3500 & 0002

warehouse number – (if applicable)

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Normal STO Process

ME21N: STO of UB document type is created with the qty 200.

VL10B: Outbound delivery is created

VL02N: Post Goods issue – Prerequisite create Transfer order

(Optional)

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Transfer order is created.

Post goods issue in VL02N is done.

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PO history shows complete inter company STO process.

Stock overview shows, 200 qty. is transferred to plant 3500

(storage location 0002) through STO with delivery.

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Out of 200 Qty, 100 Qty is issued to Customer (through MM

Route)

Stock qty reduced in plant 3500 (shipping plant to customer)

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Customer reported defect in shipped qty of 100. The qty of 200

received back to the plant 3500

Stock is received back to plant 3500. Now this qty 100 needs to be
sent back to supplying plant 3400 for rectification.

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Return STO Process

ME21N: Return STO is created with the same parameters like

normal STO. Return indicator needs to be selected.

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MD04: Stock list in Receiving plant shows negative qty due to return

VL10B: Delivery for return STO is created.

MIGO – GR: Goods receipt is performed with reference to the

outbound delivery. here, system automatically default 161
movement type based on return indicator in return STO.

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MB5T: After goods receipt against outbound delivery, return stock

is placed in stock in transit.

VL02N: Post Goods receipt is done (“Post Goods issue” in case of

normal STO)

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ME23N: The complete return history is shown below. movement

type related to intracompany STO are 161 and 671 (in case of
inter company STO movement types are 161 and 673)

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MMBE: Stock overview shows defect product is being returned to

supply plant (3400)

For intra company code STO return, the process ends with posting
goods receipt in VL02N. In case of inter company code STO, the
process ends with internal credit memo because of billing.
Configuration Overview

Switch off “Availability check” for item categories NLRN (Intra

company) & NCRN (Inter company)
Path: Logistics Execution → Shipping→ Deliveries→ Define Item
Categories for Deliveries

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Assign delivery type

For Inter company:

→
Path: Materials Management Purchasing → Purchase Order →
→
Returns Order Returns to Vendor

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For Intra company:

→
Path: Materials Management Purchasing Purchase →
→ →
Order Returns Order Store Return / Return Plant to Plant

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