STOCK TRANSFER ORDER (STO)

In SAP, Stock Transfer Order (STO) is a process that allows organisations to move materials
internally between different plants, storage locations, or company codes. STO normally refers to
physical move of material

Why STO?

When plants are relatively far from each other we need some documents to show during transit of
stock and we can track our stock easily with STO process.

Types of STO’s

1. STO without delivery (Intra STO between 2 Plants same company code)

2. STO with delivery without Billing (Intra STO between 2 Plants same company code)

3. STO with delivery with Billing (Inter STO  between 2 Plants different company code)

STO with delivery without Billing

STO with delivery without billing also referred as INTRA STO it’s a stock transfer between two
plants under same company code with delivery (Shipping). Since activity is under same company
code there will be no billing (Proforma Invoice)

Its MM-SD integration

The Benefits of Intra STO in SAP

1. Efficient Inventory Management: Intra STO allows businesses to optimize their inventory levels
across different locations. By facilitating the movement of goods between warehouses or plants,
companies can ensure that stock is distributed where it is needed most, minimizing excess
inventory and stock outs.
2. Cost Savings: By consolidating stock transfers within the same company, businesses can reduce
transportation costs and eliminate the need for external logistics providers. This can result in
significant cost savings over time, especially for companies with multiple distribution centers or
production facilities.
3. Streamlined Processes: SAP's Intra STO functionality automates many aspects of the stock
transfer process, streamlining workflows and reducing the potential for errors. With features such

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as automatic posting and document generation, businesses can save time and resources while
ensuring accuracy and compliance.
4. Improved Visibility and Control: Intra-STO transactions are fully integrated with SAP's inventory
management and reporting systems, providing real-time visibility into stock levels and movement.
This allows businesses to track the status of stock transfers, monitor inventory levels, and generate
comprehensive reports for analysis and decision-making.

Prerequisites

 Material is created with sales views should extended to Both plants

 In PO document type should UB
 In PO item category should be U
 Delivery Type in NL
 Sales area should assign to supplying plant
 Create a customer and assign it to Receiving plant

Supplying Plant AB01 Vendor Assign Sales Area

Receiving plant AB02 Customer Assign Customer

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 Definition of Sales Organization Data

1. Define Sales organization

2. Define Distribution channel

3. Define Division

4. Define Shipping Point

5. Maintain Loading Point

6. Define shipping Condition

7. Define Loading Group

1. Define Sales organization

SPRO SAP ref IMG Enterprise structureDefinition Sales & Distribution Define ,copy
,delete check sales organization

2. Define Distribution channel

SPRO SAP ref IMG Enterprise structureDefinitionSales & Distribution Define ,copy
,delete check Distribution channel

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3. Define Division

SPRO SAP ref IMG Enterprise structureDefinition Logistic generalDefine, copy ,delete ,
check division

4. Define Shipping Point

SPRO SAP ref IMG Enterprise structureDefinition Logistic execution Define, copy ,delete
, check shipping point

5. Maintain Loading Point

SPRO SAP ref IMG Enterprise structureDefinition Logistic execution Maintain Loading
Point

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6. Define shipping Condition

SPRO SAP ref IMG Logistic Execution Shipping Basic shipping Functions Shipping point
and goods receiving point determination Define shipping condition

7. Define Loading Group

SPRO SAP ref IMG Logistic Execution Shipping Basic shipping Functions Shipping point
and goods receiving point determination Define Loading Group

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 Assignment of sales Organization Data

1. Assign sales organization to Company code

2. Assign sales organization to Distribution channel

3. Assign sales organization to Division

4. Set up sales Area

5. Assign sales area To Plant

6. Assign shipping Point to supplying Plant

7. Create a Customer and Assign it to receiving Plant

1. Assign sales organization to Company code

SPRO SAP ref IMG Enterprise structure Assignment Sales & Distribution Assign sales
organization to Company code

2. Assign sales organization to Distribution channel

SPRO SAP ref IMG Enterprise structure Assignment Sales & Distribution Assign sales
organization to Distribution channel

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3. Assign sales organization to Division

SPRO SAP ref IMG Enterprise structure Assignment Sales & Distribution Assign sales
organization to Division

4. Set up sales Area

SPRO SAP ref IMG Enterprise structure Assignment Sales & Distribution set up sales
area

Sales Area = Sales Organization+ Distribution channel+ Division

5. Assign sales area To Plant

SPRO SAP ref IMG Enterprise structure Assignment Sales & Distribution Assign sales
org, distribution channel to Plant

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6. Assign shipping Point to supplying Plant

SPRO SAP ref IMG Logistic Execution Shipping Basic shipping Functions Shipping point
and goods receiving point determinationassign shipping points

7. Create a Customer and Assign it to receiving Plant

Create customer in XD01

Standard Account Group  KUNA

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 Set up Stock Transport Order

1. Define shipping data for Plants

2. Create Checking Rule

3. Define Checking Rule

4. Assign delivery Type to Checking Rule

5. Assign document type, one step procedure, under delivery tolerance

6. Pricing Procedure for STO

1. Define shipping data for Plants

SPRO SAP ref Img Materials management Purchasing Purchase order Set up stock
transport order Define shipping data for plants

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2. Create Checking Rule

SPRO SAP ref Img Materials management Purchasing Purchase order Set up stock
transport order Create Checking Rule

3. Define Checking Rule

SPRO SAP ref Img Materials management Purchasing Purchase order Set up stock
transport order Define Checking Rule

4. Assign delivery Type to Checking Rule

SPRO SAP ref Img Materials management Purchasing Purchase order Set up stock
transport order Assign delivery Type to Checking Rule

Standard Delivery Type for Intra STO NL

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5. Assign document type, one step procedure, under delivery tolerance

SPRO SAP ref Img Materials management Purchasing Purchase order setup stock
transport order Assign document type, one step procedure, Under delivery tolerance

Note: We are doing two steps Procedure

6. Pricing Procedure for STO

a) SPRO SAP ref img Materials managementpurchasingconditions Define price

determination process Define schema group for Purchase org

b) SPRO SAP ref img Materials managementpurchasingconditions Define price

determination process Assign schema group for purchase org

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c) SPRO SAP ref img Materials managementpurchasingconditionsDefine schema
determinationDefine schema for stock transport order

Steps Involved in INTRA-STO with Delivery

1. Create material with sales view T code: MM01

2. Create STO Purchase requisition with Item category U T code: ME51N

3. Create STO Purchase order with reference To PR T code: ME21N

4. Create outbound delivery T code: VL10B

5. GI against Outbound delivery supplying plant with Mvt type 641 T code: VL02N

6. Check stock in transit T code: MB5T

7. GR against OBD in Receiving Plant with Mvt type 101 T code MIGO

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1. Create material T Code: MM01

Supplying Plant AB01

Receiving Plant AB02

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Material 9999840 created in Plant AB01

Extend material to Plant AB02

IN SE16N MARC table we can see material exists at both plants

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2. Create STO Purchase requisition with Item category U T code: ME51N

Purchase requisition number 0010049126 created

3. Create STO Purchase order with reference To PR T code:ME21N

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S.T.O Standard created under the number 4500025952

4. Create outbound delivery T code: VL10B

Note: Outbound delivery in SAP is the process of fulfilling customer orders by shipping goods from a
company's warehouse or production facility to a customer's location

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Outbound Delivery Number 80018331

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5. GI against Outbound delivery supplying plant with Mvt type 641 T code: VL02N

Enter outbound delivery Number 80018331

& Press enter

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In Picking Tab Maintain the Picked Quantity

Before issuing Goods check quantity available In AB01 plant with T code: MB52

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Post goods issue

Replenishment delivery 80018331 has been saved

Note:

In SAP, replenishment delivery is a method for supplying merchandise to customers or sites based
on demand. It can include stock transfers between plants. For example, if a picking location's stock
runs out, it can be replenished (Refill) from the inventory stock warehouse.

6. Check stock in transit T code: MB5T

Check accounting Document for goods issue in MB51

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Double click on Material document number 9200001581

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BSX Inventory accounting (+) At Receiving plant

BSX Inventory Accounting (-) At supplying plant

AUM Expense / revenue from stock transfer

FR1 Freight clearing

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7. GR against OBD in Receiving Plant with Mvt type 101 T code: MIGO

Check stock in MB52 before GR

GR in MIGO

Material document 22000277 posted

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Check stock after GR

Note: There will be no accounting entries Generated in Goods receipt for INTRA STO Mvt type 101

Invoice Verification for Freight clearing in MIRO (Proforma Invoice)

Document no. 1071 created

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Accounting entries in MIRO

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