Akila Wedasinghe
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SAP Stock Transfer Order Process
Comprehensive guide to understand stock transfers in SAP
A stock transfer is the movement of materials from one plant to another within the same organization. In this process, one plant acts as a vendor (supplying plant) and the other acts as a customer (receiving plant).
Has Material X
Needs Material X
Types of Stock Transfers
Simple inventory movement using transaction code 301 for plant-to-plant transfers.
Can be used for both intra-company and inter-company transfers in simpler scenarios.
Transfer between plants that belong to the same company code.
Can use stock transfer orders with or without delivery documents.
Transfer between plants that belong to different company codes.
Typically requires invoicing and financial postings between company codes.
When Plant A supplies directly to Customer X, but the sales order is with Plant B.
Completely different from stock transfers - handled primarily by SD module.
Note: Financial documents are posted during the Goods Issue (GI) step in stock transfers. This is important because different plants may value the same material differently.
Stock Transfer Process Flow
The receiving plant or MRP generates a request for materials from the supplying plant.
In continuous scenarios, MRP can automatically generate STRs based on special procurement keys in the material master.
The STO can be created:
- By converting an STR to an STO
- Directly creating an STO manually
- By the receiving plant (pull scenario)
- By the supplying plant (push scenario)
A delivery document can be created based on the STO for transport tracking purposes.
This is recommended when trucks are involved in transferring materials between plants that are at different locations.
The supplying plant posts goods issue, reducing their inventory.
Important: This is when financial documents are posted. The material's value moves from inventory to cost accounts.
The receiving plant confirms receipt of the materials, increasing their inventory.
Valuation may be different at the receiving plant, depending on the valuation strategy.
Master Data Requirements
| Requirement | Supplying Plant (SG25) | Receiving Plant (SG15) |
|---|---|---|
| Material Master | Must be created with Sales view and MRP view | Must be created with Purchasing view and MRP view |
| Business Partner | Needs receiving plant as a customer (SG15) | Needs supplying plant as a vendor (SG25) |
| Special Procurement Key | Not required | Define special procurement key that points to SG25 |
| Sales Organization | Requires sales org and distribution channel | Not required |
| Valuation | Plant-specific valuation | Plant-specific valuation (may differ from SG25) |
Critical Configuration Steps:
-
Plant Creation
Create or copy plants, and ensure Material Ledger is activated for the plants.
-
Sales Organization Assignment
For the supplying plant, assign sales organization and distribution channel.
-
Special Procurement Key
Define special procurement key for the receiving plant that points to the supplying plant.
-
Shipping Point Determination
Assign shipping points to plants and configure shipping point determination.
-
Stock Transfer Configuration
Configure shipping data for plants, delivery type, and availability check procedure.
-
One-Step vs. Two-Step Configuration
Configure whether you want one-step or two-step procedure for goods movement.
Comparison: Transfer Methods
| Feature | Transfer Posting (301) | STO without Delivery | STO with Delivery |
|---|---|---|---|
| Complexity | Low | Medium | High |
| Transport Tracking | No | Limited | Yes |
| Financial Impact | Yes, at transfer | Yes, at GI | Yes, at GI (and invoice if inter-company) |
| Batch Management | Limited | Yes | Yes, with enhanced capabilities |
| Recommended for | Simple transfers within same location | Regular internal transfers | Complex transfers requiring shipping/transport |
Pull vs. Push Scenarios
- Receiving plant initiates the stock transfer
- Receiving plant creates the STO
- Based on demand at the receiving plant
- Common for replenishment scenarios
- Supplying plant initiates the stock transfer
- Supplying plant creates the STO
- Based on production/inventory at supplying plant
- Common for distribution center scenarios
Key SAP Transactions for Stock Transfer
| Transaction | Description | Used for |
|---|---|---|
| ME51N | Create Purchase Requisition | Creating STR manually |
| ME59 | Convert Requisitions to POs | Converting STR to STO |
| ME21N | Create Purchase Order | Creating STO manually |
| VL01N | Create Outbound Delivery | Creating delivery document for STO |
| VL02N | Change Outbound Delivery | Modifying delivery document |
| VL06 | PGI Processing | Post goods issue for delivery |
| MIGO | Goods Movement | Post goods receipt at receiving plant |
| MB1B | Transfer Posting | Simple transfer between plants (without STO) |
Important Note: The stock transfer process may require collaboration between MM, SD, and FI modules. Make sure proper authorization and alignment exist between these teams for smooth execution.