Efficient stock movement is critical for seamless supply chain operations, and Stock Transport Orders (STO) in SAP play a key role in ensuring smooth intercompany and plant-to-plant transfers. This makes Mastering Stock Transport Orders (STO) in SAP along with it’s Process, Configuration & Best Practices are even more desired.
Whether we are managing internal stock transfers, intercompany logistics, or cross-plant replenishment, a well-configured STO process can reduce costs, improve inventory visibility, and streamline procurement workflows.
In this post, we will explore mastering end-to-end Stock Transport Orders (STO) in SAP S/4HANA and SAP ECC., it’s Process, key Configuration steps & Best Practices.
1. Stock Transfer in SAP
As we have already described in the below post there are two types of stock transfer in SAP.
Stock Transfer with MIGO (Without STO, Delivery & Billing)
Stock Transfer With Stock Transport Order, Purchase Order (STO/PO)
Picture: Stock Transfer in SAP
Please see the below post to check the “Stock Transfer with MIGO (Without STO, Delivery & Billing)”
Here in the post , we will see the below part in detail
Picture: Stock Transfer With Stock Transport Order, Purchase Order (STO/PO)
2. Stock Transfer With Stock Transport Order/Purchase Order (STO/PO)
Stock Transport Orders (STO) in SAP play a crucial role in inventory management, procurement, and intercompany logistics. Whether you’re transferring stock between plants, company codes, or warehouses, understanding the different types of STO orders is essential for optimizing supply chain efficiency and cost control.
There are total 3 types of the Stock Transfer With Stock Transport Order, Purchase Order (STO/PO)
Stock Transfer with STO but without Delivery & Billing
Stock Transfer with STO & Delivery but Without Billing
Stock Transfer with STO, Delivery & Billing
Picture: Types of Stock Transfer With Stock Transport Order, Purchase Order (STO/PO)
We will look into all the three method of stock transfer with STO/PO one by one in detail
2.1 Stock Transfer with STO but without Delivery & Billing
This type of STO is used when transferring stock between two plants within the same company code. It ensures better inventory tracking and valuation compared to a standard transfer posting.
Below is the pictorial representation of this type of STO
Picture: Stock Transfer with STO but without Delivery & Billing
2.1.1 Key Features
To simplify the process for internal stock transfers, businesses may choose to use STO without delivery and billing,
–> STO is a specialized purchase order used for stock movement between two plants, allowing the receiving plant to place an order for stock from the supplying plant.
–> STO enables smooth inventory management and tracks the movement of stock.
–> STO without delivery is used when there is no need to track the logistical steps involved in physically shipping the goods.
–> STO without delivery reduces the administrative workload associated with generating and managing delivery documentation.
–> Stock’s value between the plants is accounted via internal material valuation rather than through external invoicing or billing.
–> Uses a purchase order (PO) document type UB.
--> Stock Transfer with STO but without Delivery & Billing can not be executed in 1-step i.e.2-steps only.
--> 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.
--> This process uses movement type 351
2.1.2 Advantage of Using STO Without Delivery & Billing
A manufacturing company transfers raw materials from Plant A (Production Plant) to Plant B (Distribution Center) under the same company code.
Below are the main Advantage of Using STO Without Delivery & Billing
Efficiency in Stock Movements: By skipping the delivery and billing steps, stock transfers are more quickly, especially for frequent internal movements.
Simplified Documentation: Reducing extensive documentation such as billing and delivery notes helps in streamlining internal operations and save time.
Cost Reduction: Delivery and billing elimination in intra-company transfers reduces administrative and logistical costs.
Ideal for Intra-company Movements: STO Without Delivery & Billing is best suited for the organizations that frequently move stock between plants without needing to generate financial documents between company codes.
2.1.3 Business Scenarios of STO without Delivery & Billing
Below are the main business Scenarios of the STO without Delivery & Billing
Plant-to-Plant Transfers: Stock movement for production needs or inventory balancing can be done using STO without delivery or billing.
Distribution Center Replenishment: Companies with multiple storage locations can use Stock Transfer with STO but without Delivery & Billing to replenish stock without the need for complex documentation
2.1.4 Configuration & Testing of STO without Delivery & Billing
Please see the below post for the details of configuration & testing of STO without Delivery & Billing
2.2 Stock Transport Order with Delivery (STO with SD Delivery Process)
This STO type is used when stock transfers require a delivery document generated via SAP SD (Sales & Distribution Module). This is common when warehouse teams handle goods movement through outbound deliveries.
This setup is particularly useful for intra-company transfers where financial transactions are not required
Please see the below picture to see the pictorial representation of this stock transfer method
Picture: Stock Transport Order with Delivery (STO with SD Delivery Process)
2.2.1 Key Features of Stock Transport Order with Delivery but Without Billing
STO with delivery uses delivery document to track the logistics of stock movement.
The delivery is essential to monitor goods physically leaving one plant and being received by another.
Since this process is usually used in intra-company STO process, billing is not required to allow for smoother internal movements of stock without generating invoices or financial documents.
In the case of “Stock Transfer with STO & Delivery but Without Billing”, the cost and inventory valuation are adjusted internally, without the need for billing documentation.
“Stock Transfer with STO & Delivery but Without Billing” can include shipping cost determination
2.2.2 Business Scenario for Stock Transport Order with Delivery but Without Billing
Below are the main Business Scenarios for Stock Transport Order with Delivery but Without Billing
Internal Plant-to-Plant Transfers: The scenario of regularly move stock between plants within the same company code like Distribution Center, production center etc. , STO with delivery but no billing simplifies this move.
Replenishing Inventory Between Storage Locations: Stock movements is easily managed without billing complexity with delivery tracking for the distribution centers or warehouses under the same legal entity.
2.2.3 Advantage of Stock Transport Order with Delivery but Without Billing
Below are the main advantage of using STO & Delivery Without Billing
Efficiency in Intra-company Stock Movements: Stock Transfer using STO & Delivery Without Billing Eliminates the billing step which reduces complexity and speeds up the stock transfer.
Simplified Documentation: In this process business can focus on tracking deliveries and managing inventory as there is no need to generate financial documents.
Cost Control: Elimination of billing process saves administrative and financial costs.
Enhanced Inventory Tracking: This process uses delivery. Delivery documents allows to maintain a clear record of stock movements without the need for complex financial reconciliation.
2.2.4 Configuration & Testing of STO with Delivery but Without Billing
Please see the below post for the details of configuration & testing of STO without Delivery & Billing
Intercompany STO is used when transferring stock between plants in different company codes. It requires a more complex process as it involves intercompany billing and affects financial accounting entries.
Please see below the pictorial representation of this method of stock transfer
Picture: Inter-Company STO with Delivery & Billing
2.3.1 Key Features
Uses a purchase order (PO) document type NB
Requires billing document
Includes intercompany invoice posting
Can involve profit center accounting
2.3.2 Business Scenario
A company transfers finished goods from Plant X (Company Code 1000) to Plant Y (Company Code 2000), where Company Code 1000 issues an invoice to Company Code 2000 for the stock transfer.
2.3.3 Configuration & testing of Intercompany Stock Transport Order (Inter-Company STO)
Please see the below post for the details of configuration & testing of SAP Intercompany STO Process with Delivery & Billing
In the fast-paced world of SAP logistics, optimizing Stock Transport Orders (STO) is crucial for efficient inter-plant stock movement. While the 2-Step STO with Delivery is commonly used, many businesses seek a streamlined 1-Step STO with Delivery to reduce processing time and improve supply chain efficiency. But how do you configure both 1-Step and 2-Step STOs between the same plants without conflicts?
In this guide, we’ll walk you through the step-by-step process to set up a 1-Step STO with Delivery alongside an already configured 2-Step STO, ensuring seamless operations. Whether you’re an SAP consultant, MM specialist, or supply chain manager, mastering these configurations will help you boost workflow efficiency, minimize lead time, and optimize inventory management. Let’s dive in!
IN the below post we have configured 2 step STO with delivery to transfer the stock from the plant PA10 to PA20
Picture: Two Step Stock Transfer Order with Delivery from Plant PA10 to Plant PA20
There are some business scenarios where sometimes 1 step stock transfer fits more compare to 2-steps STO between the same plants (PA10 to PA20 as shown in the below picture)
Picture: 1-Step STO with Delivery
1. Business Scenarios Requiring Both 1-Step & 2-Step STO Between the Same Plants
Here are some real-world business scenarios where both 1-Step STO with Delivery and 2-Step STO with Delivery may be required between the same plants in SAP
1.1 Urgent Stock Replenishment vs. Regular Stock Transfers
1-Step STO with Delivery: Used when there is an urgent demand for materials at the receiving plant (e.g., production is halted due to a stockout).
2-Step STO with Delivery: Used for routine stock transfers where goods are first shipped to a transit location before final receipt.
1.2 High-Value vs. Low-Value Materials
1-Step STO with Delivery: Used for low-value consumables that do not require detailed tracking and can be moved directly.
2-Step STO with Delivery: Used for high-value materials requiring stricter inventory control and a two-step verification process.
1.3 Same-Region vs. Distant Warehouse Transfers
1-Step STO with Delivery: Used when both plants are in close proximity, allowing for direct shipment without intermediate storage.
2-Step STO with Delivery: Used when the supplying and receiving plants are far apart, requiring goods to be staged at a distribution center before final delivery.
1.4 Perishable vs. Non-Perishable Goods
1-Step STO with Delivery: Used for perishable goods (e.g., fresh food, pharmaceuticals) where minimizing transit time is critical.
2-Step STO with Delivery: Used for non-perishable goods where interim storage or inspection is needed before final delivery.
1.5 Make-to-Order vs. Make-to-Stock Production
1-Step STO with Delivery: Used in a Make-to-Order (MTO) scenario, where materials are transferred directly to fulfill an order.
2-Step STO with Delivery: Used in a Make-to-Stock (MTS) scenario, where stock is staged before final distribution.
2. How to Configure Both 1-Step & 2-Step STO Between the Same Plants
We have already configured 2-step stock transfer between the plants PA10 to PA20 in the below post
We will configure a different Item Category “YNLN” to be used with 1-step STO with delivery compare to “NLN” used with 2-step STO with delivery
Step 5: Schedule Line Category Configuration
We will configure a different Schedule Line Category “ZN” to be used with 1-step STO with delivery compare to “NN” used with 2-step STO with delivery. Item category “ZN” will use 1-step stock transfer movement type “647”.
Step 6: Configure Delivery Type & Availability Check Procedure by Plant
In this configuration we will maintain the 1-step STO document type “YUD” with 1-steo delivery type “YNL” configured in the above steps.
Step 7: Assign 1-step Procedure
Since now the stock transfer from the plant PA10 to PA20 is to be done in 1-step, we will define the purchasing document type of stock transport orders (YUD) to post the goods issue and goods receipt at the same time.
Step 1: Configure a Customized STO Document Type
We will configure all the required elements for 1-Step STO with delivery like PO Document type, Delivery Type, Schedule Line Type, etc.
--> We need separate PO Doc type for 1-step STO with delivery in order to be able to assign different schedule line to have a different movement type (Movement Type-647) compare to 2-step STO with delivery (Movement Type-641)
a) Configure PO Doc. Type for 1-Step STO with Delivery
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.
We will use PO document type YUD for 1-Step STO with delivery
Follow the below path for document type configuration
SPRO –> Materials Management –> Purchasing –> Purchase Order –> Define Document Types for Purchase Orders
Picture: PO Document Type for 1-Step STO with Delivery
b) Configure Pricing Schema for 1-Step Stock Transfer Order with Delivery
Please check the below post to Configure Pricing Schema for STO Without Delivery. It is same as for this process
Step 6: Configure Delivery Type & Availability Check Procedure by Plant
Here we will do the necessary configuration for Stock Transfer Order (STO).
First we will configure delivery type and availability check for 1-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.
For 1-Step STO with delivery we use stock type “YUD” with delivery type “YNL”
Configure “1-Step Stock Transfer Order with Delivery”
Step 7: Assign 1-step Procedure
Since now the stock transfer from the plant PA10 to PA20 is to be done in 1-step, we will define the purchasing document type of stock transport orders (YUD) to post the goods issue and goods receipt at the same time.
Follow the below path
SPRO –> Materials Management –> Purchasing –> Purchase Order –> Set up Stock Transport Order –> Assign Document Type, One-Step Procedure, Underdelivery Tolerance
3. Testing of the 1-Step STO with Delivery
In the post given below we have tested 2-step stock transfer with delivery to transfer the stock from plant PA10 to plant PA20
Now we have configured 1-step stock transfer between same plants.
Let’s test 1-step stock transfer in detail between Plant PA10 & Plant PA20.
3.1 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
Create the outbound delivery through VL10B or create the delivery automatically through batch job.
We need to configure copying control in order to create “YNL” delivery on the basis of “YUD” document type. Please check the below post for the detail of copy control configuration for this scenario
This completes the configuration of 1-Step STO with delivery.
3.6 Single Transaction Goods Issue & Goods Receipt
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: Goods issue & Goods Receipt together in 1-Step STO with delivery
Below accounting document will be generated at PGI
Picture: Accounting Document in 1-Step STO with Delivery
--> We can post invoice for any delivery cost. But since this is intra company Stock transfer so material cost can not be invoiced.
This completes the process to Configure & test 1-Step STO with Delivery in addition to the 2-Step STO with delivery Between the Same Plants.
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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