Stock transfer in SAP play a crucial role in effective inventory management by enabling the seamless movement of goods between storage locations, plants, or even company codes.
Whether we are transferring stock within the same plant, across different plants, or between different organizational units, SAP stock transfer solutions like 1-step and 2-step transfers, offers flexible and robust solutions to manage these transactions efficiently.
1. Stock Transfer in SAP: All Scenarios at a Glance
SAP provides multiple stock transfer methods, including one-step and two-step transfers, stock transport orders (STO), and intercompany transfers, each catering to specific business needs.
Understanding these processes helps businesses optimize supply chain operations, reduce costs, and ensure compliance.
Stock transfer in SAP can be classified into two types from a broader prospective. These can be further divided into several other types.
Please see below this in pictorial form
Picture: Stock Transfer in SAP: All Scenarios at a Glance
1.1 Stock Transfer with MIGO (Without STO, Delivery & Billing)
This is the simplest form of stock transfer in SAP.
In this scenario, no stock transfer order or purchase order is created.
Stock transfer is directly initiated in MIGO without any predecessor document like STO or PO.
This stock transfer process can be further bifurcated into two
Stock Transfer between plants of same company code
Stock Transfer between plants of Different company codes
Both the above two types can be executed in 1-step or 2-step process.
We will look into these in detail in the later section
Please see below these types of stock transfer in pictorial form.
Picture: Stock Transfer with MIGO (Without STO, Delivery & Billing)
These types of stock transfers offer a more simplified method, primarily suited for intra-company movements or specific organizational needs
--> This stock transfer method optimize the logistics processes and eliminate some administrative overheads.
--> This method of stock transfer refers to directly moving materials between storage locations or plants without creating a purchase order or transport order.
--> This is often beneficial in cases of internal transfers where financial and logistical documentation requirements are minimal.
1.1.1 Advantages of Stock Transfer with MIGO
Below are the advantages of Stock Transfer with MIGO i.e. without STO, Delivery & Billing
a) Cost Efficiency:
Stock Transfer without STO, Delivery & Billing eliminates administrative costs associated with creating and managing transport orders and deliveries.
b) Speed
Stock Transfer without STO, Delivery & Billing accelerates the stock movement process by avoiding complex & long order creation steps.
c) Simplified Process
Stock Transfer without STO, Delivery & Billing is Ideal for companies with frequent internal stock movement. It reduces paperwork and processing time.
1.1.2 Business Scenarios of Stock Transfer with MIGO
Below are the possible business scenarios of Stock Transfer with MIGO i.e. without STO, Delivery & Billing
a) Internal Stock Rebalancing
Stock Transfer without STO, Delivery & Billing comes handy, When warehouses or plants need to balance inventory across locations.
b) Emergency Stock Transfer
Stock Transfer without STO, Delivery & Billing caters well where Immediate stock movement required for production needs without the need for extensive documentation.
c) Supply Chain Improvement
Since this process optimize stock transfers without using stock transport orders, businesses can streamline operations, reduce overhead costs, and improve supply chain responsiveness.
Before looking into execution of stock transfer we will check what is inter-company stock transfer & intra-company Stock Transfer
1.1.3 Inter-Company & Intra-Company Stock Transfer
A large company having plants in different locations needs to move the material between it’s plants. For example We have two plants on our car business PA10 & PA20.
Plant PA10 produces engines and plant PA20 assembles the car using the engines produced in plant PA10. So to transfer the engines from the plant PA10 to PA20 we will use STO (Stock Transport Order) in SAP
--> Now in the above example if plants PA10 & PA20 belongs to same company code (No need of having separate legal accounts etc.) then it will be an example of intracompany STO.
--> If Plant PA10 & PA20 belongs to different company code (to have separate legal accounts etc.) then it will be an example of intercompany STO.
For our car business we have two companies and three plants as shown in the below picture
Picture : Our Car Business STO Scenarios
The STO between plants PA10 & PA20 (Both belongs to Company Code PA10) will be a intra-company STO).
The STO between plants PA10/PA20 (Both belongs to Company Code PA10) & PP10 (Belongs to company code PP10) will be a intercompany STO).
1.1.4 Execution of Stock Transfer with MIGO
There are further 4 scenarios related to the Stock Transfer without STO, Delivery & Billing
One Step Stock Transfer Between Plants of same Company Code
Two Step Stock Transfer Between Plants of same Company Code
One Step Stock Transfer Between Plants of different Company Code
Two Step Stock Transfer Between Plants of Different Company Codes
a) One Step Stock Transfer Between Plants of same Company Code
In One Step Stock Transfer Between Plants stock is issued from the issuing plant & received in receiving plant in 1 step.
This process uses movement type 301
Start MIGO and choose transaction as “A08 – Transfer Posting” & movement type as “301”
input source plant as “PA10” & destination plant as “PA20”. Both these plants belongs to the same company code.
Picture: One Step Stock Transfer Between Plants of same Company Code
Check & post. Material document & FI documents are posted.
Note: Please check the below posts to see the configuration of organization structure i.e. company codes, plants etc.
Transaction is posted successfully. Material document & FI document is created
FI document posted in the sending company code
Picture: FI document posted in the sending company code
FI document posted in the Receiving company code
Picture: FI document posted in the Receiving company code
d) Two Step Stock Transfer Between Plants of Different Company Codes
In two Step Stock Transfer Between Plants of different company codes, stock is issued from the issuing plant & received in receiving plant in two step.
As the name suggests , this stock transfer is executed in the two steps.
First step removes the stock from the sending plant from the first company code and post the material into transit.
The second steps place the stock in the receiving plant stock of another company code.
We will see the details of both these steps.
d1) First Step- Removal of the Stock from the Sending plant
This process uses movement type 303 (Transfer posting plant to plant – remove from storage).
Start MIGO and choose transaction as “A08 – Transfer Posting” & movement type as “303”
Picture: First Step- Removal of the Stock from the Sending plant From Different Company Code
check and post. Material document number 4900000218 is posted.
--> Accounting entries for the two step stock transfer will be exactly same as one step stock transfer.
d2) Second Step- Receipt of the stock into the Receiving Plant
This process uses movement type 305 (Transfer posting plant to plant – place in storage).
Start MIGO and choose transaction as “A10 – Place in Storage” against the material document generated in the first step.
Picture: Second Step- Receipt of the stock into the Receiving Plant of Different Company Code
--> No accounting document is posted in the second Step of the receipt of the stock into the Receiving Plant,
1.2 Stock Transfer With Stock Transport Order/Purchase Order (STO/PO)
Here stock transfer process starts with a document i.e. stock transport order, which is a kind of purchase order.
There are several types of Stock Transfer With Stock Transport Order/Purchase Order (STO/PO)
All types of Stock Transfer With Stock Transport Order/Purchase Order (STO/PO) is given below in pictorial form
Picture: Stock Transfer With Stock Transport Order/Purchase Order (STO/PO)
Please continue with the below post for all the step by step details of Stock Transfer With Stock Transport Order/Purchase Order (STO/PO).
SAP Stock Transport Order (STO) with Delivery is a critical process for businesses optimizing intercompany and intracompany goods movement while ensuring seamless logistics execution. Understanding how to set up and execute an STO with delivery can significantly enhance supply chain efficiency, reduce costs, and improve compliance with SAP best practices. In this comprehensive guide, we’ll walk you through the step-by-step configuration, execution, and key insights that drive successful STO implementation. Whether you’re an SAP consultant, business analyst, or supply chain manager, mastering STO with delivery will help you streamline operations, minimize delays, and maximize operational efficiency. Let’s dive into the setup, process flow, and expert tips for leveraging SAP Stock Transport Orders with delivery.
Stock Transport Order (STO) with Delivery is a SAP process to transfer the stock between two plants within a company along with using deliveries via the SAP Shipping module.
--> This post is for "SAP Stock Transport Order with Delivery but without Billing". It is called "intra-company SAP Stock Transport Order with Delivery (and without Billing)".
--> Please check the below post for SAP Stock Transport Order with Delivery & billing. It is also called Cross company or Inter-Company SAP Stock Transport Order with Delivery & Billing.
We have seen details of the two simplest form of Stock transfer till yet
1- Stock Transfer with MIGO (no STO, No delivery & no Billing)
Unlike the above two simple form of stock transfer, the STO with Delivery adds an additional layer of control by allowing users to generate delivery documents, handle shipping logistics, and track goods through the delivery process.
SAP Stock Transport Order with Delivery ensures that supply and receiving plants has the visibility over stock movements, improving accuracy and efficiency.
Below is the pictorial representation for this type of stock transfer
Picture: SAP Stock Transport Order with Delivery
1. Type of SAP Stock Transport Order with Delivery
There are two types of SAP Stock Transfer Order with Delivery
Scenario 1: Two Step Stock Transfer Order with Delivery
Scenario 2: One Step Stock Transfer Order with Delivery
1.1 Two Step Stock Transfer Order with Delivery
The business scenario for SAP Stock Transport Order with Delivery is when plants are located far away and we need to transfer the goods. While transferring, goods remains in transit for a substantial time.
In this scenario we use 2 step SAP Stock Transport Order with Delivery
in the two Step Stock Transfer Order with Delivery, the quantity issued from the sending plant is posted as stock in transit of the receiving plant. This is the first step. This enables the quantity “on the way” to be monitored.
In the second step goods receipt is posted in the receiving plant and then it becomes the stock of the receiving plant.
Below is the pictorial representation of Two Step Stock Transfer Order with Delivery
Picture: Two Step Stock Transfer Order with Delivery
1.1.1 Configuration of Two Step Stock Transfer Order with Delivery
We will configure Intra-Company Stock Transport Order Wit Delivery step by step
1.1.1.1 Configure PO Document Type
In this configuration
–> we Check and copy existing document types for purchase orders and
–> define allowed item categories for each document type
Document types configuration controls item interval, determine allowed follow-on document types & number range interval etc.
--> For our car business, we will use standard document type "UD" for the "Two Step Stock Transfer Order with Delivery"
Follow the below path for document type configuration
SPRO –> Materials Management –> Purchasing –> Purchase Order –> Define Document Types for Purchase Orders
Picture: Document Type “UD”
1.1.1.2 Item Category
Item category defines how the procurement of a material or service item is controlled.
For the document type “UD” item category U is used
Picture : Allowed Item Categories “U” for “Doc Type “UD”
Note : Item Categories can not be configured. These are maintained by SAP, therefore we cannot change them. However, we can change the “External Representation” of PO item categories in IMG.
1.1.1.3 Configure Pricing Schema for Two Step Stock Transfer Order with Delivery
Please check the below post to Configure Pricing Schema for STO Without Delivery
For the stock transfer order to work , the below two mandatory to define
--> Suppling Plant should be created as supplier in the receiving plant purchasing organization
--> Receiving plant should be created as customer in the sending plant sales organization & distribution channel.
Follow the below path
SPRO –> Materials Management –> Purchasing –> Purchase Order –> Set up Stock Transport Order –> Define Shipping Data for Plants
Here sending plant is PA10 & Receiving plant is PA20
a) Shipping Data for Sending Plant
Through this configuration, system needs to identify the sales organization, distribution channel & division of the supplying plant under which the receiving plant is created as customer
Picture: Shipping Data for sending plant
So as per this configuration receiving plant should be created as customer in Supplying plant sales organization “PA10” , Distribution Channel “PA” & Division “DC”
b) Shipping Data for Receiving Plant
For receiving plant, system identifies receiving plant customer number.
Picture: Shipping Data for Receiving Plant
Receiving plant PA20 will be represented as a customer through customer number “PA20_CUST” as per this configuration
1.1.1.8 Configure Stock Transfer Order
Now we will configure define delivery type and availability check for two step stock transport order.
Follow the below path
SPRO –> Materials Management –> Purchasing –> Purchase Order –> Set up Stock Transport Order –> Configure Delivery Type & Availability Check Procedure by Plant
In this configuration we specify whether an SD delivery is to be created in the case of a PO with a certain combination of supplying plant and document type. You can also specify which delivery type is to be used. The delivery type in Sales and Distribution (SD) determines how a delivery is handled. In the standard system, the delivery type ‘NL’ is used for stock transfers without a billing document. For stock transfers with a billing document, the delivery type ‘NLCC’ is used.
Configure “Two Step Stock Transfer Order with Delivery”
a) Configure Delivery Type “NL”
Please check below post for detail of delivery type “NL” configuration
b) Copying Control from STO Doc Type “UD” to Delivery type “NL”
Since in the above configuration, for the 2-step SAP Stock Transport Order with Delivery, PO document type is “UD” & delivery type is “NL”, we need to configure copying control in order to create “NL” delivery on the basis of “UD” document type.
Please check the below post for the detail of copy control configuration for this scenario
c) Delivery Scheduling and Transportation Scheduling in SAP S/4 HANA
For stock transport orders, scheduling is activated while configuring stock transport order
Picture: Delivery Scheduling and Transportation Scheduling in STO
Follow the below Customizing node
SAP IMG > Cross-Application Components > Advanced Available-to-Promise > Configure Activities for Specific Document Type > Stock Transport Orders.
it will give you same screen as above
--> Delivery scheduling are defined either in the route or the shipping point.
d) Transportation Scheduling Lead Times
The main parameter for transportation scheduling is transportation lead time.
Transportation lead time is defined by the transit time and unloading time. When an availability check is triggered, system executes backward scheduling from the requested delivery date (LFDAT). System deduct the transit time from RDD (Requested Delivery Date) to arrive at the goods issue date (WADAT). Routes are used to determine the transit durations.
Once a route is determined, the transit duration from the route is used as the lead time for scheduling. The route also specifies the transportation lead time, which is used to determine the transportation planning date.
e) Route Configuration
First we will configure a route to use for the transportation from plant PA10 to plant PA20
Route is determined based on the shipping type from the customer master & Transportation Group from the material master
Picture: Configuration of Route Determination
g) Scheduling Configuration
for this scenario we will configure scheduling based on the route
Follow the below path for configuration
SPRO –> Logistics Execution –> Shipping –> Basic Shipping Functions –> Scheduling –> Delivery Scheduling and Transportation Scheduling –> Define Scheduling By Shipping Point
We will configure here that for shipping point PA10 pick/pack time & loading time will be taken from the route as we are configuring scheduling based on the route
Picture: Scheduling based on Route
Now we need to input the pick/pack & loading time in the route so that system can pick these from the route while scheduling
Step 5: Create the STO: Check “Shipping” tab should be available at the line item level. Check the different dates as loading date, goods issue date etc. These sates should be as per the scheduling configured based either on shipping point or route level as explained in heading “Delivery Scheduling and Transportation Scheduling in SAP S/4 HANA”
Step 6: Create the Outbound Delivery
Use VL10B or create the delivery automatically through batch job certain days ahead of PGI date as per business requirement. We need to configure copying control in order to create “NL” delivery on the basis of “UD” document type. Please check the below post for the detail of copy control configuration for this scenario SAP Delivery Guide: Outbound to Inbound – Copy Control for 2-Step Stock Transfer Order to Outbound Delivery
Step 7: Pick/Pack & Goods Issue the Outbound Delivery
Since this is 2 step delivery so movement type 641 will be used in the first step (goods issue in the issuing plant). Check the Accounting document generated
Step 8: Create the inbound Delivery in the Receiving plant
Create inbound delivery through VL31N or configure SPED output type to create the inbound delivery automatically in the receiving plant.
Step 9: Post goods receipt in the receiving plant
Since this is 2 step delivery so movement type 101 will be used in the second step (goods receipt in the receiving plant).This complete the process.
Step 1: Configure all the required Elements
First we need to configure all the necessary elements of the two step SAP Stock Transport Order with Delivery.
Step 2: Extend the material in the receiving plant
Here sending plant is PA10 & Receiving plant is PA20.
The material should be available in both sending & receiving plants. Please check the below post to see the step be step explanation of how to extend the material to another plant
Pick/Pack time is 8 hrs. so 04.10.2024, 12:21:45 + 8 working hrs. =07.10.2024 10:21:45 – This is Transportation Planning Date & loading time
Loading time is 4 hrs. so 07.10.2024 10:21:45 +4 hrs. = 07.10.2024, 14:21:45 , this will be goods issue date
Transit time is 1 calendar day so GR date & time will be 08.10.2024 15:21:45 (Receiving plant PA20 is in Boston so 1 hr. ahead from Chicago Plant time zone)
Step 6: Create the Outbound Delivery
Create the outbound delivery through VL10B or create the delivery automatically through batch job.
We need to configure copying control in order to create “NL” delivery on the basis of “UD” document type. Please check the below post for the detail of copy control configuration for this scenario
We configure this “Auto Delv. indicator”, If we want to create a replenishment delivery immediately after creation of the stock transport order.
Follow the below path for this
SPRO –> Materials Management –> Purchasing –> Purchase Order –> Set up Stock Transport Order –> Activate Automatic Delivery Creation and CRM Billing
Picture: Activate Automatic Creation of outbound Delivery
Now activate this for our shipping point
Follow the below path for this configuration
SPRO –> Materials Management –> Purchasing –> Purchase Order –> Set up Stock Transport Order –> Activate Automatic Delivery Creation for PO Type and Shipping Point
Picture: Activate Automatic Creation of outbound Deliveryper Shipping Point
Please check the movement type & item category in the outbound delivery.
Item Category in Outbound delivery for 2-Step STO with Delivery
Picture: Item Category in Outbound Delivery for 2-Step STO with Delivery
Movement Type in Outbound delivery for 2-Step STO with Delivery
Picture: Movement Type in Outbound Delivery for 2-Step STO with Delivery
--> Movement Type should be "641" & Item category should be "NLN" as configured for 2-Step STO with Delivery
Step 7: Pick/Pack & Goods Issue the Outbound Delivery
Now we do the pick pack & Goods issue to the outbound delivery
Below accounting document will be generated
Picture: Accounting Document in 2-Step STO with Delivery
Step 8: Create the inbound Delivery in the Receiving plant
Create inbound delivery through VL31N or configure SPED output type to create the inbound delivery automatically in the receiving plant as soon as goods issue is done in the sending plant.
Step 8.1 Output Type “SPED” configuration
We configure SPED output type to create the inbound delivery automatically in the receiving plant.
If material is handled in HUs then HUs are also transferred seamlessly from outbound delivery to inbound delivery through SPED. Please check the details of SPED configuration here.
for delivery type “NL”, we use OutputDet.Proc. “V10000” . Check the below post for this
Start transaction NACE & select application as V2 “Shipping” & click on “Procedures”
select procedure “V10000” and click on Control, make sure condition Type “SPED” should be available with Requirement as “1”
Picture: Output Type “SPED”
go back and select “output type” . Scroll down and select “SPED” from the list
Picture: Partner Functions in “SPED”
Select Medium “8-Special function” & Function “SH -Ship-to-Party”
Picture: Partner Functions Details in “SPED”
go back and click on condition record while selecting “V2-Shipping”
Select output type as “SPED” & create the condition record for our delivery type “NL”. alternatively we can create condition records through T-code VV21.
Picture: “SPED” Condition Record for delivery type “NL”
We have completed “SPED” configuration now
Because of triggering of output type “SPED” as soon as PGI will be done in issuing plant, system will create an inbound delivery in the receiving plant.
to check SPED trigger go to Extra –> Delivery Output –> Header as shown in the below screenshot
Picture: Delivery Output Header
We can see that SPED is triggered successfully
Picture: SPED is triggered successfully
It has created inbound delivery in the receiving plant successfully. Check the workflow of outbound delivery
Picture: Inbound Delivery Created
Step 9: Post goods receipt in the receiving plant
Since this is 2 step delivery so movement type 101 will be used in the second step (goods receipt in the receiving plant).
Post Goods Receipt of the Inbound delivery
Note: There is no accounting document generated at PGR
With PGR of Inbound Delivery , 2-step STO with delivery process is completed.
--> We can post invoice for any delivery cost. But since this is intra company Stock transfer so material cost can not be invoiced.
Note
Sometime it is more efficient & economical to use 1-step STO instead of regular 2-step STO between the same plants.
To cater to such scenarios , please see the below post which explains How to Configure 1-Step STO with Delivery Alongside 2-Step STO Between the Same Plants
We will configure & test 1-step STO with delivery based on the below scenario
–> Sending plant is PA20 and receiving plant is PA10. Both the plants are attached with same company code (PA10).
Picture: 1-Step STO with Delivery
1.2.1 Configuration of one Step Stock Transfer Order with Delivery
We will configure Intra-Company Stock Transport Order Wit Delivery step by step
1.2.1.1 Configure PO Document Type
PO Document type for the One Step Stock Transfer Order with Delivery is “UD” which is same as for Two Step Stock Transfer Order with Delivery as described HERE
--> For our car business, we will use standard document type "UD" for the 1-step as well as 2-step Stock Transfer Order with Delivery"
1.2.1.2 Item Category
“Item category” for the One Step Stock Transfer Order with Delivery is “U” which is same as for Two Step Stock Transfer Order with Delivery as described HERE
1.2.1.3 Configure Pricing Schema for One Step Stock Transfer Order with Delivery
Please check the below post to Configure Pricing Schema for STO Without Delivery
For the stock transfer order to work , the below two mandatory to define
--> Suppling Plant should be created as supplier in the receiving plant purchasing organization
--> Receiving plant should be created as customer in the sending plant sales organization & distribution channel.
Follow the below path
SPRO –> Materials Management –> Purchasing –> Purchase Order –> Set up Stock Transport Order –> Define Shipping Data for Plants
Here sending plant is PA20 & Receiving plant is PA10
a) Shipping Data for Sending Plant
Through this configuration, system needs to identify the sales organization, distribution channel & division of the supplying plant under which the receiving plant is created as customer
Picture: Shipping Data for sending plant
So as per this configuration receiving plant should be created as customer in Supplying plant sales organization “PA10” , Distribution Channel “PA” & Division “DC”
b) Shipping Data for Receiving Plant
For receiving plant, system identifies receiving plant customer number.
Picture: Receiving Plant Customer Number
Receiving plant PA10 will be represented as a customer through customer number “BPPA10” as per this configuration
1.2.1.8 Configure Stock Transfer Order
Now we will configure define delivery type and availability check for one step stock transport order.
Follow the below path
SPRO –> Materials Management –> Purchasing –> Purchase Order –> Set up Stock Transport Order –> Configure Delivery Type & Availability Check Procedure by Plant
In this configuration we specify whether an SD delivery is to be created in the case of a PO with a certain combination of supplying plant and document type. You can also specify which delivery type is to be used. The delivery type in Sales and Distribution (SD) determines how a delivery is handled. In the standard system, the delivery type ‘NL’ is used.
Picture: Configure “Two Step Stock Transfer Order with Delivery”
a) Configure Delivery Type “NL”
Please check below post for detail of delivery type “NL” configuration
b) Copying Control from STO Doc Type “UD” to Delivery type “NL”
Since in the above configuration, for the 1-step SAP Stock Transport Order with Delivery, PO document type is “UD” & delivery type is “NL”, we need to configure copying control in order to create “NL” delivery on the basis of “UD” document type.
Please check the below post for the detail of copy control configuration for this scenario
Since the stock transfer from the plant PA20 to PA10 is to be done in 1-step, here we will define the purchasing document type of stock transport orders (UD) to post the goods issue and goods receipt at the same time.
Picture: Assign one-Step Procedure
d) Delivery Scheduling and Transportation Scheduling in SAP S/4 HANA
Delivery Scheduling and Transportation Scheduling in SAP S/4 HANA for “One Step Stock Transfer Order with Delivery” is done same as for “Two Step Stock Transfer Order with Delivery” described HERE
1.2.2 Testing of One Step Stock Transfer Order with Delivery
We will test now one step stock transfer order with delivery
Step 1: Configure all the required Elements
Configure all the elements required for 1-Step STO with delivery as explained above.
Step 2: Extend the material in the receiving plant
Here sending plant is PA20 & Receiving plant is PA10.
The material should be available in both sending & receiving plants. Please check the below post to see the step be step explanation of how to extend the material to another plant
Pick/Pack time is 8 hrs. so 04.10.2024, 12:21:45 + 8 working hrs. =07.10.2024 10:21:45 – This is Transportation Planning Date & loading time
Loading time is 4 hrs. so 07.10.2024 10:21:45 +4 hrs. = 07.10.2024, 14:21:45 , this will be goods issue date
Transit time is 1 calendar day so GR date & time will be 08.10.2024 15:21:45 (Receiving plant PA20 is in Boston so 1 hr. ahead from Chicago Plant time zone)
Step 6: Create the Outbound Delivery
Create the outbound delivery through VL10B or create the delivery automatically through batch job.
We need to configure copying control in order to create “NL” delivery on the basis of “UD” document type. Please check the below post for the detail of copy control configuration for this scenario
We configure this “Auto Delv. indicator”, If we want to create a replenishment delivery immediately after creation of the stock transport order.
Follow the below path for this
SPRO –> Materials Management –> Purchasing –> Purchase Order –> Set up Stock Transport Order –> Activate Automatic Delivery Creation and CRM Billing
Picture: Activate Automatic Creation of outbound Delivery
Now activate this for our shipping point
Follow the below path for this configuration
SPRO –> Materials Management –> Purchasing –> Purchase Order –> Set up Stock Transport Order –> Activate Automatic Delivery Creation for PO Type and Shipping Point
Picture: Activate Automatic Creation of outbound Deliveryper Shipping Point
Please check the movement type & item category in the outbound delivery.
Item Category in Outbound delivery
Picture: Item Category in Outbound Delivery for 2-Step STO with Delivery
Movement Type in Outbound delivery for 2-Step STO with Delivery
Picture: Movement Type in Outbound Delivery for 1-Step STO with Delivery
--> Movement Type should be "647" & Item category should be "NLN" as configured for 1-Step STO with Delivery
Step 7: Single Transaction Goods Issue & Goods Receipt
Now we do the pick pack & Goods issue to the outbound delivery
Now we do the pick pack & Goods issue to the outbound delivery
--> In the 1-Step STO with delivery, as soon as we do goods issue to the outbound delivery in the issuing plant, goods receipt in the receiving plant happens automatically.
--> Since Goods receipt happens automatically based on the PO (no inbound delivery is required), so there should be no "confirmation control key" in the PO.
--> Since there is no requirement of inbound delivery in the receiving plant (GR happens based on PO), there is no requirement of SPED configuration for 1-Step STO with delivery
Please check the PO history after outbound delivery PGI. System has posted Goods Receipt as well.
Picture: PO History Update after execution of 1-Step STO with Delivery
1.3 Special Scenario
We have configured a Special Scenario for Stock Transfer with STO/PO – STO with delivery – Configuring 1-step & 2-step between the same plants
Please see the details of this scenario in the below post
In SAP Materials Management (MM), the Stock Transport Order (STO) without delivery is a critical process for transferring stock between plants without generating an outbound delivery in SAP SD (Sales and Distribution).
This method is widely used in scenarios where goods movement is handled directly through inventory management (IM) rather than logistics execution (LE).
Understanding how to configure and execute an STO without delivery is essential for optimizing internal stock transfers, reducing logistics costs, and streamlining procurement operations.
In this guide, we will cover the end-to-end STO process, key configuration steps, and its integration with SAP modules like FI (Financial Accounting) and MM (Materials Management).
Whether you are an SAP consultant, business analyst, or supply chain professional, this step-by-step walkthrough will help you efficiently implement STO without delivery and improve inventory management in your SAP system.
Stock Transport Orders (STO) are essential for efficiently managing the movement of materials between different company locations. There are some business cases where you may need to handle stock transfers without creating a delivery.
--> Stock transfer without delivery in SAP is used in various business scenarios where the transfer of goods between locations does not require a shipping document or delivery, but is still necessary for inventory management purposes or to account for delivery cost like freight.
--> A stock transport order without delivery is possible Only in Two-Steps procedure.
Stock Transport Order Without Delivery process not only saves time but also simplifies internal stock management.
In this step-by-step guide, we’ll walk you through the various scenarios of Stock Transport Order without delivery process.
Below is the pictorial representation of SAP Stock Transport Order Without Delivery.
Picture: Stock Transfer with STO but without Delivery & Billing
1. What is Stock Transport Order Without Delivery
As name specifies, Stock Transport Order Without Delivery is transferring the stock between the plants without generating an outbound delivery in SAP SD (Sales and Distribution).
--> If any of the supplier plant or customer plant belongs to the different company code then STO process becomes intercompany STO process.
--> If supplier plant & customer plant belongs to the same company code then STO process becomes intra-company STO process.
our car business has two company codes PA10 & PP10
Company Code PA10 has two plants PA10 & PA20
Company code PP10 has one plant PP10
The STO between plants PA10 & PA20 (Both belongs to Company Code PA10) will be a intra-company STO).
Picture: Intra-Company STO in our Car Business
Please see the below post for the Stock Transfer with MIGO (Without STO, Delivery & Billing)
2. Configuration of Stock Transport Order Without Delivery
We will configure Stock Transport Order Without Delivery step by step
2.1 Configure Document Types
In this configuration, we Check and copy existing document types for purchase orders and define allowed item categories for each document type
Document types configuration controls several factors like define item interval, determine allowed follow-on document types, assign document types to a number range group & number range interval
--> For our car business, we will use standard document type "UB" for the Stock Transport Order Without Delivery
Follow the below path for document type configuration
SPRO –> Materials Management –> Purchasing –> Purchase Order –> Define Document Types for Purchase Orders
Picture: Document Type “UB”
Select “UB” and click on “Allowed Item Categories”
Picture: Allowed Item Categories
2.2 Item Category
Item category defines how the procurement of a material or service item is controlled.
For the document type “UB” item category U is used
Picture : Allowed Item Categories “U” for “Doc Type “UB”
Note : Item Categories can not be configured. These are maintained by SAP, therefore we cannot change them. However, we can change the “External Representation” of PO item categories in IMG.
2.3 Configure Pricing Schema for STO Without Delivery
Please check the below post to Configure Pricing Schema for STO Without Delivery
3. Testing of Stock Transport Order Without Delivery
We will test below scenarios related to the Stock Transport Order Without Delivery
Scenario 1: Stock Transport Order Without Delivery & without delivery cost
Scenario 2: Stock Transport Order Without Delivery & with delivery cost
Scenario 3: Stock Transport Order With Goods Receipt in Quality Inspection
Material prices for all the scenarios
Material price in PA10 plant is 1000 USD at Moving Average Price
Material price in PA20 plant is 1010 USD at Moving Average Price
3.1 Scenario 1: STO without Delivery & No Delivery Cost
This is the normal standard straight scenario related to the stock transfer without delivery
To test the STO without delivery, create a STO
3.1.1 Create a Stock Transport Order
Start ME21N and select Document type as UB
Select sending plant as “PA10”
Select receiving plant as “PA20”
Choosing the document type as “UB” will set item category to “U” Automatically
Picture: STO Creation
3.1.2 Post the goods issue in the issuing plant
To post the goods issue , start MIGO
Select
A07 -Goods Issue & R01 Purchase Order
System will automatically select 351 movement type
Picture: Post the goods issue in the issuing plant
System will fetch all the details from the purchase order
3.1.3 Accounting Document at PGI
We will see accounting document generation in both the scenario of intra-company STO & Inter-company Transfer
3.1.3.1 Accounting Entries in case of Intra-Company STO
In our scenario , the material is valuated at 1000 USD in issuing plant & 1010 USD in receiving plant
a) Material Price control is “Standard Price”
If material subjected to stock transfer is valuated at standard price then it’s price remains unchanged in the transaction
since transaction is valuated with issuing plant valuation, so there is a gain of 10 USD in this transaction.
Picture: Accounting Document Creation at PGI in STO without Delivery with Material price control “S”
b) Material Price control is “Moving Average Price”
If material, subjected to stock transfer is valuated at moving average price then it’s price changes as a result of the transaction.
since transaction is valuated with issuing plant valuation, and there is no inventory in receiving plant till yet, so after the transaction we will have 1 quantity of this material valuated at 1000 USD
As a result accounting document will be posted 1000 USD credit to inventory account and 1000 USD debit to inventory account
Picture: Accounting Document Creation at PGI in STO without Delivery with Material price control “V”
--> Please note that in the case of moving average price control of the material (V) , since there was not inventory in the receiving plant for this material before this transaction, material price updated with the valuation of the sending plant.
--> If there is inventory present before the transaction, then the material price would have been updated with average of the two. For example - in the receiving plant there is already 1 PC at 1010 USD , and 1 PC we receive through this transaction at 1000 USD (sending plant valuation) , then the resulting price of this material would have been 1005 USD for this material in the receiving plant.
c) Automatic GL Posting configuration
here configuration to post to GL is same as 2 step stock transfer as explained in the below post.
3.1.3.2 Accounting Entries in case of Inter-Company STO
Below is the accounting entries in case of inter-company STO without delivery
Here accounting entries are exactly same as in case of stock transfer with MIGO
FI document posted in the sending company code
Picture: FI document posted in the sending company code
FI document posted in the Receiving company code
Picture: FI document posted in the Receiving company code
a) Configuration of clearing accounts
In order to configure the automatic GL posting in case of the stock transfer between the plants of different company codes, we need to execute the below configuration through OBYA
Picture: Clearing Accounts between PA10 & PP10
3.1.4 Stock in Transit
One of the main Characteristics of Stock Transport Order Without Delivery is – As soon as quantity is issued from the issuing plant, it is managed as stock in transit of the receiving plant.
To check stock in transit, start MB5T and input receiving plant
Picture: Stock in Transit
3.1.5 Goods Receipt in the Receiving Plant
To do the Goods receipt in the receiving plant start MIGO
Select “A01 Goods Receipt” & R01 “Purchase Order” , system will automatically select the movement Type as 101
Picture: Goods Receipt in the Receiving Plant
System will fetch all the details, Click the item OK and post the goods reciept
No accounting document is posted in goods receipt
Stock is updated in the receiving plant as well as PO history is updated.
3.2 Scenario 2: STO without Delivery & with Delivery Cost
In this scenario we will apply the delivery cost . Let’s assume that we need to pay USD 10 in transportation to deliver 1 EA of material from plant PA10 to plant PA20 ,
We will capture this cost in stock transport order
3.2.1 Create a Stock Transport Order
Start ME21N and select Document type as UB
Select sending plant as “PA10”
Select receiving plant as “PA20”
Choosing the document type as “UB” will set item category to “U” Automatically.
go to the “Condition” tab and select condition FRB1-Freight (Value) and give this condition value as 10 USD
Picture: Delivery Cost in STO
Select the FRB1 line and click on “Condition Detail”
Enter the supplier number providing the transportation services.
Picture: Supplier providing services in STO
3.2.2 Post the goods issue
To post the goods issue , start MIGO
Select
A07 -Goods Issue & R01 Purchase Order
System will automatically select 351 movement type
Picture: Post the goods issue in the issuing plant
System will fetch all the details from the purchase order
3.2.2.1 Accounting Document at PGI
In our scenario , the material is valuated at 1000 USD in issuing plant & 1010 USD in receiving plant
a) Material Price control is “Standard Price”
If material subjected to stock transfer is valuated at standard price then it’s price remains unchanged in the transaction
system will post delivery charges to the Freight clearing account.
Picture: Accounting Document Creation at PGI in STO with Delivery Cost with Material price control “S”
This freight clearing account is cleared at the time of posting the invoice received from the transportation supplier
Picture: Accounting Document at MIRO in STO with Delivery Cost with Material price control “S”
b) Material Price control is “Moving Average Price”
If material, subjected to stock transfer is valuated at moving average price then it’s price changes as a result of the transaction.
Valuation of the material in Supplying Plant Plant PA10 – 1000 USD
Valuation of the material in Receiving Plant Plant PA20 – 1000 USD
Delivery charge – 10 USD
Create the PO and input the delivery cost along with supplier number as explained HERE
System will post the below accounting document at the time of post goods issue
Picture: PGI Accounting Document in STO without Delivery with delivery cost with Material price at “V”
--> In the above scenario, material cost in the plant PA20 is updated to 1010 USD due to loading of freight charges of 10 USD on inventory. Since there was already 1 EA was present with price as 1000 USD, so system updated the material price in PA20 plant with the average of the two i.e. 1005 USD (1000+1010)/2
Picture: Changed price of material in PA20 plant after stock transfer PGI
c) Automatic GL Posting configuration
here configuration to post to GL is same as 2 step stock transfer as explained in the below post.
3.2.3 Stock in Transit
It will be same as in the above scenario as explained HERE
3.2.4 Goods Receipt in the Receiving Plant
It will be same as in the above scenario as explained HERE
No accounting document is posted in goods receipt
3.3 Scenario 3: STO With Goods Receipt in Quality Inspection
The Stock Transport Order (STO) with Goods Receipt in Quality Inspection used when transferring materials between plants within the same company, ensuring that goods undergo quality inspection before they can be used in production or sales.
3.3.1 Requirement for Goods Receipt in Quality Inspection
To receipt the goods in quality inspection (QI) in receiving plant, We need to check the indicator “Post to Inspection Stock” in QM view of the material master for the receiving plant.
Picture: Requirement for Goods Receipt in Quality Inspection
--> The field "Post to Inspection Stock" Specifies if the material is subject to quality inspection (without inspection lot processing) and whether a goods receipt is posted to inspection stock.
--> This indicator is copied to purchase order items and goods receipt items.
--> If we select this indicator, then no stock-relevant inspection lots can be created.
--> If we activate a stock-relevant inspection type, this field is deselected and can no longer be maintained.
a) Quality Inspection Indicator in Purchase Order
As stated above, if this indicator is selected in material master, then this flows into the purchase order “Delivery” tab.
Picture: Quality Inspection Indicator in Purchase Order
b) Quality Inspection Indicator in Goods Receipt
As stated above, if this indicator is selected in material master, then this flows into the Goods reciept.
Picture: Quality Inspection Indicator in Goods Receipt
c) QI Stock in Receiving Plant
Now we can see that after GR QI stock is generated in receiving plant for this process.
Picture: QI Stock in Receiving Plant
This completes all the scenarios of Stock Transport Order Without Delivery
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