STO Process – MM STO/Intra /Inter STO

(MM-SD Integration)
BY
René Rodrigue Efila Minkoulou

MOB : 237695965256
[email protected]
Country : Cameroon
Overview
What is MM module ?

What is SD module ?

Link between MM and SD

Definition of Stock Transfer Order

Types of STO processes

What is MM module ?
Material Management is a key challenge in most business environments. The SAP
material management module helps manage material requirement, use and
production in an organization. To this end, it is easier to avoid wastage of resources,
thus saving money. The key features and sub-components of this module include:

 Purchasing
 Inventory management
 Logistics invoice verification
 Master data
 Material valuation
 Foreign trade and customs
 Service management
 Product catalog and management.
What is SD module ?
The sales and distribution module is one of the core components of SAP
products, alongside the financial, controlling, production planning and
material management modules.
The SD module covers:
 Pre-sales activities, such as creating quotations and inquiries.

 Order processing activities, such as sales order creation.

 Billing and invoice creation

 Shipping

 Creating outbound delivery documents.

Definition of Stock Transfer Order

Every company will be having many plants and even they have same kind of
materials for few kind of production activities, every time procuring from
vendor is time consuming and even money because one of the other plant
having those stocks without usage, so to save money for the company we use
STO process.

 1. One step Method between two plants

 2. Two step Method between two plants
 3. Stock transfer between two plants without delivery (MM STO)
 4. Stock transfer between two plants with delivery without billing (Intra STO)
 5. Stock transfer between two plants with delivery with billing (Inter STO)
Configuration

1. Define document types : UB field selection key : UBF

SPRO → materiel management → purchase order → define document types

2. Define shipping data for plants

SPRO → materiel management → purchase order → set up stock transport order →

Define shipping data for plants

Here we need to maintain the same customer in supplying plant and the receiving
plant
3. Assign delivery type and checking rule NL

SPRO → materiel management → purchase order → set up stock transport order →

Assign delivery type and checking rule

1 . One step Method between two plants

One step method means -the supplying plant will transfer the goods to receiving plant
and posting goods movement accordingly by supplying plant,

Like using 301 movement in MIGO, the store keeper will transfer the goods to other plant
2.Two step Method between two plants:

 Two step method means- the supplying plant will transfer the goods to
receiving plant and now once they transfer the goods to receiving plant it will
get posted in Transit in order stock and when the receiver sees the stock in
plant then receiver will post the other movement to move from in transit to
plant stock.

 Supplying plant will do 303 movement type and receiving plant will do 305
movement type in MIGO transaction code.
3.Stock transfer between two plants without delivery (MM STO)

 This process is also called as MM STO, but many of the companies will use intra
or inter process because of more features available in SAP.
 In this case the respective receiving plant will creates a PO, with details
mentioned as from which plant and stock required and all the details.
 PO will be created with document category UB and item category as U, so
STO PO created for internal stock movement.
 Once the PO is created against the supplying plant and from the supplying
plant will do the goods issue from the respective storage location.
 Using movement type 351through MIGO goods will be issued from the
supplying plant
 Now the goods will be in in transit and the receiving plant person will be doing
MIGO against Purchase order, so that stock will show in unrestricted stock.
4.Stock transfer between two plants with delivery without billing (Intra STO)

 It’s often required to transfer stock between plants in a same company code. For
example, if one plant has stock, which is required by the other plant, you need to
have a mechanism in SAP
 Here we require help of SD Consultant, whenever you were creating STO PO, we
need to take help of SD consultant. Stakeholders need to inform the receiving
plant, so that they will be creating the customer code for that particular plant and
maintain some distribution channel accordingly for that, As a SAP MM Consultant
we need to maintain the backend settings for the receiving plant, so that will get
shipping tab in the PO for that particular receiving plant.
 This type of process is called MM-SD Integration
 Process follow :
Create Purchase order: ME21N and doc type: UB
Run T-code VL10B, pass Purchase order and execute
Then create Deliv ery through background tab option
Open Purchase order and go to Purchase order history → click on Deliv ery number → Change the
deliv ery → Enter picking Qty. → enter storage location → Planning and actual Goods issue date → Click
on Post goods issue
Then come and check in ME23N → Purchase order history
Copy the PO → Go to MIGO → select Goods receipt, Purchase order → Key in Purchase order
5.Stock transfer between two plants with delivery with billing (Inter STO)

Here stock transfer is done between two different company codes with billing. Inter
STO is also same as intra STO, whereas we have little different because vendor (XK01)
is involving in terms of supplying plant.
 Purchase Order Type 'NB' is used in this case
 Delivery Type 'NLCC' is used
 Goods Movement type is 643 for Inter-Company
 Item Category in delivery is NLC
Few screen snippets , steps and
configuration screen details:
Prerequisites:
 Knowledge of MM & SD
 Two organization structures: one for purchasing and another for sales
 Purchasing: Company Code:8888, Plant: 8881, Storage Location : 0002, Purchase
Organization: 8881, Storage Location
 Sales: Company Code:6666, Delivering Plant: 6661, Storage Location : 0001, Sales
Area:6666, 66, 66, Shipping Point 6666.
 Step1. In Transaction XK01, Create Vendor Master to represent Supplying
plant(6661) in receiving company code(8888) & Purchase organization
(8881).

In Purchasing Data, In Menu bar, Extras →click on Additional

Purchasing Data. Here you can Maintain the supplying
plant(6661) so that is treated as Plant Vendor

Note: A Plant can only be assigned to

one vendor number. So we have to
extend the same vendor number to
different Purchase organization if
required
Step2. In Transaction XD01, Create Customer Master to represent Receiving
Plant(8881) in Supplying Company Code(6666) & Sales Area(6666,66,66).

In Sales Area Data, Shipping tab, Maintain Delivery Priority, Shipping Condition & Delivering
Plant(6661) as shown below.
Step3. Create Material Master with below selected views, in Supplying Plant(6661),
Storage location (0001), Sales Org(6666), Distributional channel (66).
Note: The Item Category group maintained here is preferred over general item category group and used
to determine ‘Item Category in Delivery’ Ex. NLC(For Inter Company) NLN(For Intra-Company).
In Sales General Plant Data, maintain Availability Check Group(Ex.01), Transportation
Group(Ex.0001), Loading Group(Ex.0001).
Configuration Settings

Step5. Define Shipping Data for Plants in below path

SPRO → Materials Management → Purchasing → Purchase Order → Setup Stock
Transport Order

For Supplying Plant(6661), assign Sales

Area(6666,66,66) as shown below.
For Receiving Plant(8881), assign Customer Number(100216) Created in Step2.

Step6. If required Create a Checking Rule by entering a two

digit code & Description. Ex. B – SD Delivery(Standard)
Step7. Define Checking rule Created in Step6 in
combination with Availability Check Group (01) assigned in
material master Step3. Here select the stocks, receipts &
requirements as per requirement
Step8. Assign Delivery type & Checking rule

Here Assign Delivery type(NLCC) & Checking rule(B) to the Purchase order Document
type(NB) & Supplying plant(6661) Combination as shown below.
Step9. Assign Document type, One Step
Procedure & Under delivery Tolerance.
Here for Supplying & Receiv ing Plant(6661 &
8881 respectiv ely) Combination Assign PO
Document Type(NB).
Select One step Check box to post the
Goods receipt while doing PGI itself.
Otherwise Goods Receipt have to be carried
out in another step.
If You Select tolerance limits check box, Then
SAP closes the STO by marking final deliv ery
Check box, if deliv ered Quantity is within the
under deliv ery tolerance limits maintained in
deliv ery tab of PO. It depends on Partial
deliv eries allowed or not. Then the remaining
quantity will not be shown as open in
requirements.
Step10. Define Shipping Point Determination in below path

SPRO → Logistics Execution → Shipping → Basic Shipping Function → Shipping point

Determination → Assign Shipping Points.

Here assign Shipping Point(6666) for the Combination of Shipping Condition(01) (customer
master step2), Loading Group(0001) (material master step3) & Supplying Plant(6661).
Step11. Define Item Category Determination in Deliveries in below path

SPRO → Logistics Execution → Shipping → Deliveries → Define Item Category Determination in

Deliveries

Assign Sales pricing procedure ICAA01 to the combination of Sales Area(6666,66,66), Document
pricing group ‘ I ‘ (for billing document type IV) & Customer pricing group ‘1’
TESTING:
Step1. Create Purchase Order in Transaction ME21N with Document type NB, Vendor(2122),
Material(2116), Purchase Org (8881) Purchase Group (001), Company Code(8888), Receiving Plant
(8881).
Make sure you have proper sales tax setup in SD > Basic Functions > Taxes.. Customer & Material
Master is assigned to tax indicators. Create condition record for output tax condition type in
Transaction VK11. Ex. MWST output tax
In Transaction VK11 Create Condition Record for Condition type PR00 with the sales price if
required.

Note: To adopt price from purchasing in to billing create a condition type with same name as PB00.
In copy control enter reference as application purchasing & condition type PB00. Now assign this
condition type in procedure ICAA01 after step of condition type IV01. Now the PO price is
adopted in to billing.

Step2. Generate Outbound delivery against purchase order in Transaction VL10G /VL10D /VL10B

Here make sure that delivery date is in between the dates entered. & enter the shipping point
triggered in PO shipping tab. Then Execute.
Then Select the Purchase order line item & click on back ground.

Note: If you are able to see an extra line item with status green proceed to next step or else click on log button as shown above.
Now click on line item & click on notes. now you will see some error messages & solve them.

Step3. Select the Line item & Click on Log Icon. Now click on documents & note down the
outbound delivery document number.
Go to Transaction VL02N. Enter the outbound delivery document number & Click enter.
Here in picking tab enter the issuing storage location & picked Quantity.

Check the Delivery item Category NLC. In Goods Movement tab observe the movement type 643( two
step). In item Conditions Tab Observe conditions as shown below.
Note: Movement type 645 is for one step procedure
Carry out the post goods Issue.
If You are not able to process PGI, then check
WM is activated in storage location or if one
step procedure check PO whether receiving
storage location entered or not.
Check The Accounting Document where
stock account from BSX is credited & Account
from GBB-VAX is debited with the price as per
supplying plant material master
Step4. In Transaction VF01 Create billing document with reference to outbound delivery.
Create Condition record for Condition type PI01 in transaction VK11

The Condition type PR00 & PI00 are for Information purpose only & the Condition type IV01 is the main condition type which is based
on PI01.

Make Sure Account determination has been done and Save the billing document. Observe the accounting document. Where
Customer account is debited with the sum of revenues(credited) & Tax(credited).
Step5. In Transaction MIGO do Goods receipt against Outbound delivery. Enter the receiving
storage location & post the goods receipt.
Check the accounting document. Whre stock account from BSX is debited & GR/IR
account from WRX is Credited with the price in PO.

Step6. In transaction MIRO carryout

Logistics Invoice verification in
receiving company code(8888).
Post the invoice & observe the accounting document. Where the vendor
account is credited with the sum of amount entered in PO to GR/IR A/c
(debited) & Input tax account(debited)