Stock Transport Order

Stock Transfer/ Transport Order

Introduction:

Usually, large companies have plants at varied locations and as per the inventory requirement they transfer materials from one location (plant) to another. To mitigate this need of the company, SAP has a special arrangement of stock transfer/ transport order widely known as STO.

STO can be carried out with two processes:

1.     One step STO

2.     Two Step STO (Involves two different documents for Goods Issue and Goods Receipt)

Practical Scenario:

Company A has one plant (Plant I)  at Canada and they have another plant (Plant II) at USA. As per the demand Plant I needs  100 units of product X immediately and it is available in stock with Plant II. In this scenario plant II transfers the required quantity to plant I.

Here,

Plant I -à Creates STO and is the receiving plant

Plant II-à Issues material and is issuing plant

Details:

Key Points to remember:

·        Transaction codes

·        Overall concept with one example

·        Concept of valuation