STO Process – MM STO/Intra /Inter STO (MM-SDIntegration)
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STO- Stock transport order
Concept:
Every company will be having many plants and even theyhave same kind of materials for few kind of production activities, every timeprocuring from vendor is time consuming and even money because one of the otherplant having those stocks without usage, so to save money for the company weuse STO process.
SAP has been recommended STO type order “UB” forinternal procurement purpose and we can have goods moment within company tocompany and plant to plant.
STO-There are 5 kinds of STO
1.One step Method between two plants
2.Two step Method between two plants
3.Stock transfer between two plantswithout delivery (MM STO)
4.Stock transfer between two plantswith delivery without billing (Intra STO)
5.Stock transfer between two plantswith delivery with billing (Inter STO)
1.One stepMethod between two plants:
One stepmethod means -the supplying plant will transfer the goods to receiving plantand posting goods movement accordingly by supplying plant,
Like using301 movement in MB1B, the member will transfer the goods to other plant.
2.Two stepMethod between two plants:
(Video) SAP MM- Inter STO procurement process with configuration settings overview for All Learners
Two stepmethod means- the supplying plant will transfer the goods to receiving plant and now once they transfer the goods toreceiving plant it will get posted in Transit in order stock and when thereceiver sees the stock in plant then receiver will post the other movement tomove from in transit to plant stock.
Supplyingplant will do 303 movement type in MB1B and receiving plant will do 305movement type in MB1B.
3.Stocktransfer between two plants without delivery (MM STO):
Thisprocess is also called as MM STO, but many of the companies will use intra orinter process because of morefeatures wrt stock.
Inthis case the respective receiving plant will creates a PO, with detailsmentioned as from which plant and stock required and all the details.
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POwill be created with document category UB and item category as U, so that it’sa inter STO PO created for internal stock movement.
Oncethe PO is created will give to the supplying plant and the from the supplyingplant there is a goods movement done by plant person.
Usingmovement type 351-MB1B, movement of goods will happen once we create PO.
Nowthe goods will be in in transit and the receiving plant person will be doingMIGO wrt PO, so that stock will show as unrestricted stock.
4.Stocktransfer between two plants with delivery without billing (Intra STO)
InterSTO also have the same features as I mentioned below, whereas here the stocktransfer is 2 different company codes with different plants and each from onecompany code.
Herewe require help of SD Consultant, whenever you were creating STO PO, we need totake help of SD consultant. Stakeholders need to inform the receiving plant, sothat they will be creating the customer code for that particular plant andmaintain some distribution channel accordingly for that, As a SAP MM Consultantwe need to maintain the backend settings for the receiving plant, so that willget shipping tab in the PO for that particular receiving plant.
Thistype of process is called MM-SD Integration
**********We cannot perform 3rd scenario if we are working 4thas present, to work for 3rd scenario we need to delete the settingsfor 4th step and process always*********
Requirements
We need to ensure that material that weare shipping from 1 plant to other plant should be extended in material masterfor both the plants.
Both the materials should have sales and purchasingand accounting views mandatory.
Sales data will be given by SD Consultant and if not,we can request SD Consultant to give the sales data to update for the materialmaster.
Ensure to select all the 3 sales views and maintainthe important data required in all the 3 screens to avoid SD errors.
In Material master we need to maintain the standardlanguage for those receiving plants-Additional Data-Languages, Maintain thelanguage like DE_ Germany
Ensure stock is there in supplying plant, or else wewill get error in OBD-Outbound delivery
(Video) SAP MM- Intra STO process full explanation for Basic Learners
Back-End settings for Shipping (Intra):
To get shippingtab details in PO, we need to maintain few backend settings for PO-STO
SPRO-
MaterialsManagement-
Purchasing-
PurchaseOrder-
SetupSTO
(!) Define Shipping data for Plants:
Here we need to define the shipping data for plants,maintain the receiving plant details like -double click on receivingplant-Enter Customer number, Sales organization, Distribution channel E.t.c.
All the Above information will be given by SDConsultant.
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Enter all the details and save the screen.
(!!) Assign delivery type and checking rules:
We need to maintain the delivery type and somechecking rules for this step.
Order type as Order type-UB
Supplying plant-
Delivery type- NL(Intra)
We have 2 delivery types NL and NLCC
Checking rule maintain as 01
(!!!) Assign Document type One step Procedure,Under Tolerance
SPL plant –
Rece plant-
Order type-
(Video) SAP SD : STO - Inter Company Stock transport Order Process and Configuration
Once we done all this correct -PO will take shippingtab automatically for this scenario.
Process:
We have done with backend settings, now create PO-Me21n and mention the purchasing document as UB and item category as U.
Enter the material, shipping plant and receivingplant- enter the quantity and other data-PO will pop up a Shipping tab with NLorder type.
Now let’s think shipping pant is having stock tocreate OBD.
OBD is the process where shipping plant will create adelivery invoice in which material will be adjusted to move out to receivingplant.
VL10D-Outbound Delivery
Open VL10D and Purchase orders- maintain the purchaseorder and check the dates the PO delivery is between that dates and execute -sothat it will take to quantity screen and select line and go to background.
If you want to check the log- check and take the OBDnumber or else if any errors found, try to resolve.
PGI-
Once the OBD is done, the supplying plant should issuethe goods to receiving plant, for that they require PGI-Post goods issue.
PGI will be done based on OBD quantity and same willbe moved as intransit.
VL02N-PGI will be done with OBD reference number –just take the picking tab and mention the quantity as OBD posted and post PGI.
Once PGI is posted, goods will be moved to intransistand we can see in MMBE stock report-in transist.
If we check for movement type happening its 641 andonce everything is done and goods received to plant, then post MIGO
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Following with MIGO with OBD and not with PO, PostMIRO and this Intra goods concept has been end.
*****there will be no billing for with in company codetransfers **********
5.Stock transfer between two plants with deliverywith billing (Inter STO)
Inter STO is also same as intra STO, whereas we havelittle different because vendor (XK01) is involving in terms of supplyingplant.
Why we are involving vendor, because they should bebilling to be done to supplying plant from receiving plant.
Inter STO is also called as MM-SD Integration
Because higher level credits and debits will beinvolved for company code level, here two different company codes, so billingshould TAKES PALCE.
(Video) SAP MM With SD Intigration, STO Complete Process
We will be creating material as normally andmaintaining in both the plants as we did for intra STO by maintaining salesdata for both.
Now create maintain a vendor and inside purchasingdata -maintain for plant as supplying plant-once you enter vendor in PO -itwill take supplying plant backend.
Requirements
Material (SP+RP)
Vendor-Purchasing to plant as SP
Customer number from SD Consultant
Back-End settings
Define shipping data for plants
Maintain the receiving plant customer code andremaining data that received from SD Consultant
Assign Delivery type and checking rule
Here we re creating PO with Document type NB- becausevendor is involving indirectly
NB document type
Item category -Standard
Assign Document type One step Procedure, UnderTolerance
Document type is NB-mention the shipping and deliveryplant and save the back-end settings.
Process
Now we can create a PO, with NB document type andblank item category, whereas we already maintained vendor as plant in XK01.
Now as per the backend settings and XK01 vendor matershipping tab will come automatically with delivery type NLCC
Now post OBD-Outbound delivery, VL10D-proceadure hasbeen explained above
Now post the PGI-Post goods issue with respect the OBDand once PGI is posted goods will be in intransist.
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Now do the billing for the plant to which we aresending through VF01 and this implies with billing from the respective costcenter.
Now we can do the MIGO with respect to OBD and followingwith MIRO.
(Video) SAP MM Interview Doubts Session on Intra Company STO Process | MM-SD Integration | SAP Best Videos
This Completes the process of Inter/Intra STO.
1. SAP MM-SD INTEGRATION|| INTRA STO process full explanation WITH CONFIGURATION|| CLASS-61||#sapmm
2. STO Inter company with delivery in SAP MM - real time business process demonstration.
3. SAP SD: STO - Intra Company Stock Transport Order. STO between Plant to Plant within Company Code.
4. SAP MM Regular classes : Inter STO Process with configuration & process
5. SAP MM INTRA STO WITH DELIVERY
6. SAP MM Inter Company STO Process (S/4 HANA)
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FAQs
What is STO process in SAP SD? ›
STO is the intracompany process to transfer materials, between one plant to another within the same company with the same company code. You have to register the supplying plant as a supplier and the receiving plant as a customer. The supplying plant can be customized on the vendor master data.
What is the difference between inter and intra STO in SAP MM? ›Stock transfer between Inter company company happens when the company codes are different. If teh company code is single and the stock is transfering between plants then its called intra company.
What is the difference between intra company STO and inter company STO? ›Intracompany means inside the company transactions with in the branches with same legal entity. Inter comapny means transactions between company and one of its separate legal entity.
How to check STO status in SAP? ›You can check either in the P.O item history tab or from EKBE table. Just pass the STO in EKBE and check the field 'VGABE' , if it has the value = 6, then it means goods issue is done by the supplying plant.
What is difference between STO and transfer posting in SAP? ›Transfer posting is a removing of materials from one plant and moving to another plant or location. Examples of transfer postings are as follows. 2. Stock transfer consists of goods issued from the shipping point & a goods receipt in the receiving point.
How MM and SD are integrated in SAP? ›MM with SD module - SAP SD module is proportionally linked with MM module because it uses the information of the material when creation of sales order or when the quantity sent for production. It is integrated in the area like Delivery, Availability Check, Stock Transfer Requirements etc.
What is intercompany process in SAP SD? ›Use. Intercompany business processing describes business transactions that take place between two companies (company codes) belonging to one organization. The ordering company orders goods from a plant that is assigned to another company code.
How do intercompany transactions work in SAP? ›Intercompany payments refers to the scenario in which subsidiary A wants to pay an invoice via its in-house bank account to another in-house bank account owned by subsidiary B, while the two in-house bank accounts are in the in-house bank of the same corporate group.
How many types of STO are there? ›STO-There are 5 kinds of STO
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Common types of intercompany transactions include purchases for goods and services, loans, management fees, dividends, cost allocations, and royalties.
What is an example of an intercompany? ›
Some common examples of intercompany accounting are the selling and purchasing of goods and services between a parent company and its subsidiaries, cost allocation, and royalty payments.
What is movement type 351 in STO process? ›351 Goods issue for a stock transport order (without Shipping) The quantity is transferred from unrestricted-use stock in the issuing plant to stock in transit in the receiving plant. Movement type 351 is only used if the goods issue is posted without a delivery in Shipping.
What are the movement types in STO? ›In different STO scenario, the movement types of those outbound delivery are different. For example, the vendor consignment stock inter-company STO, the normal owned stock inter-company STO, one-step transfer inter-company STO, two step transfer inter-company STO, the movement types are different.
What is intercompany stock transfer in SAP? ›With the Advanced Intercompany Stock Transfer process, you can transfer stock between different legal entities of a coporate group. Within the group, you can transfer stock from one plant to another if the plants belong to different companies (that is, have different company codes).
What is the difference between transfer posting and stock transport order? ›Transfer postings differ from stock transfers, in that transfer postings are not connected with a physical goods movement. They usually involve a change in stock type, batch number, or material number. An example of transfer posting is the release from inspection into the company's own stock.
How do you check if transport is in production in SAP? ›There a many ways to check the history of transport. You can check either in development or production system. Using STMS, go to Transport Overview, select the appropriate system (development or production) and click on Import History. Using SE01, put the request number and click on Display or Logs for the history.
What are the advantages of STO in SAP? ›- A goods receipt can be planned in the receiving plant and stock in in-transit can be monitor.
- You can enter a Freight/Forwarding vendor and Delivery costs in the stock transport order.
- A goods receipt can be planned in the receiving plant. - You can enter a vendor (transport vendor) in the stock transport order. - Delivery costs can be entered in the stock transport order.
What is the billing type for STO in SAP? ›Stock transfer between two company codes is going to have intercompany process and hence IV billing type needs to be used for billing. This will inherently use the pricing procedure which will take care of transfer pricing between two company codes.
Is SAP SD easy or SAP MM? ›In SAP all modules are easy, SAP SD: SAP Sales and Distribution (SD) is an important module of SAP ERP consisting of business processes required in selling, shipping, billing of a product. This module is tightly integrated with other SAP MM & SAP PP.
How do you explain Fi SD integration in SAP? ›
SAP FI SD Integration – Order to Cash Process
Whenever we sell finished goods to the customer, the customer has to pay for them. In this process, we post the Sales Invoice document which is part of the Sales & Distribution module into the FI module. In SAP, we call this procedure SAP FI SD integration.
VKOA is the transaction code for FI-SD integration. If you access this tcode, below screen will appear. This is FI-SD integration point.
How is intercompany reconciliation done in SAP? ›Running on SAP Business Technology Platform (BTP), the solution is integrated with SAP S/4HANA. By leveraging machine learning algorithms, it learns from the historic intercompany data and infers which documents belong to same transactions and should be grouped together.
What is the difference between intra company and intercompany SAP? ›Intercompany transactions are the buying or selling of assets between a company and one of its separate legal entities or subsidiaries. Intracompany transactions involve different subsidiaries within a single legal entity, such as a cost center, warehouse, manufacturing plant or profit center.
How do you trigger intercompany billing in SAP? ›To enable transfer of intercompany payables to SAP ERP, you need to activate the billing feature Intercompany Payables in Customizing for Customer Relationship Management, under Billing Configure Application. You also need to make the settings described in the documentation for this feature.
What is the journal entry for intercompany? ›An intercompany journal entry records debits and credits to be posted to ledger accounts for transactions between two subsidiaries. Intercompany journal entries adjust the value of any set of accounts without entering transactions such as invoices or bills.
How do you handle intercompany transactions? ›- Standardize transfer pricing: ...
- Flag transactions immediately: ...
- Automate intercompany eliminations: ...
- Settle accounts monthly: ...
- Adopt continuous closing/continuous accounting: ...
- Invest in technology: ...
- Practice access and role management: ...
- Detailed reporting:
- Perform high-speed data matching at any scale.
- Create matching schemes automatically from historical activities.
- Automatically improve matching schemes based on daily activity.
- Automatically find the resolution to a problem.
- From purchasing , choose Purchase order Create Stock transport . ...
- Enter the supplying plant in the Supplying plant field, and register all other necessary data. ...
- Choose Enter . ...
- Enter the individual purchase order items. ...
- Save the stock transport order.
SAP has kept Stock transfer procedure as a different entity to distinguish between normal PO and PO with doc type 'UB'. Keeping in mind the procedure of STO, which requires receiving plant and issuing plant details, different movement types and stock updating, this can only be achieved by maintaining it separately.
What is 643 movement type in SAP? ›
| Movement Type | Description |
|---|---|
| 551 | Scrapping from unrestricted-use stock |
| 601 | Goods Issue for Delivery (Shipping) |
| 641 | Goods issue for a stock transport order (Shipping) |
| 643 | Goods issue for a cross-company stock transport order (Shipping) |
There are three main types of intercompany transactions: downstream, upstream and lateral. It's important to understand how each of these is recorded in the respective unit's books, the impact of the transaction, and how to adjust the consolidated financials.
What is intercompany in simple words? ›: occurring or existing between two or more companies.
Why do companies do intercompany transactions? ›Why are intercompany transactions important for business today? An intercompany transactions list enables your company to: Track, record and reconcile the transactions between your company and group entities. Understand and assess the types of transactions within your group company and parties involved.
What is the difference between intra company and intercompany? ›"Intracompany" payments are those made from one part of the company to another part of the company and do not involve an outside party, whereas "intercompany" payments are those payments made by one company to any other company. Think of intrastate (within the state) vs. interstate commerce (across state lines).
What is intercompany transfer between two related companies? ›Intercompany transactions are financial transactions between related companies, for example between a group and a subsidiary or between two subsidiaries of a group. Intercompany transactions are recorded separately to distinguish them from external transactions and to avoid them being recorded twice.
How do I set up an intercompany? ›- Go to Accounts receivable > Customers > All customers.
- Select a customer account.
- On the Action Pane, on the General tab, select Intercompany.
- Specify intercompany setup parameters for the customer account.
STO-There are 5 kinds of STO
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SAP sends an email notification for an error that is created after the system attempts to generate a stock transport order (STO) from a stock transport requisition (STR).
How to process stock transfer order in SAP? ›- From purchasing , choose Purchase order Create Stock transport . ...
- Enter the supplying plant in the Supplying plant field, and register all other necessary data. ...
- Choose Enter . ...
- Enter the individual purchase order items. ...
- Save the stock transport order.
What is intercompany STO in SAP SD? ›
Companies with plants in multiple locations typically have the requirement to transfer stock between plants, The STO(stock transport order) process is used to handle this transfer systematically in SAP. However if these plants belong to different Company Codes then we need to use intercompany STO process.
What is the Tcode for stock transfer order in SAP? ›Stock Transfer Order Creation Screen ME21N
Run Transaction VL10B to create Replenishment delivery, Enter shipping point, stock transfer order and select execute to display the list of pending activities for this document.
- Post a goods receipt to the missing quantity at the receiving plant.
- Post a stock adjustment with movement types '557/558'.
- Block STO item via transaction ME22N.
- Reverse the goods issue from the supplying plant to the missing quantity.
Inventory management deals with the management of stock, either on value or quantity basis. It includes planning, entry, and keeping records of all the movements of goods. Goods movement creates a document that updates all the stock quantity and value in the inventory that is known as the material document.
How do I manually create a transfer order in SAP? ›- Choose Logistics Logistics Execution Outbound Process Goods Issue for Outbound Process Picking Create Transfer Order Single Document.
- Make all necessary entries and save your transfer order.
In one step stock transfer, after GI, the stock of issuring plant reduces & immediately stock of receiving plant increases. Where as in two step stock transfer, after GI the stock is in 'stock in transit' of receiving plant. After GR at receiving plant, the unrestricted stock of receiving plant increses.
What are the different types of transfer order? ›There are two types of transfer orders: Quick TO and batch transfer orders. It is the movement of a single product from one location to another within the same warehouse.