STO Process in SAP: Step-by-Step Guide for Stock Transfer Orders

In supply chain management, stock transfer between locations without breaks is the most significant factor in operational efficiency. In SAP MM (Materials Management), this is achieved by the STO process. This tutorial will simplify how Stock Transfer Orders (STO) in SAP operate.

What is an STO in SAP?

The full form of STO STO is a Stock Transfer Order. It is an SAP MM document used to transfer stocks between various plants, company codes, or warehouses. STOs are more documented, controlled, and monitored than regular stock transfers.

Key benefits of STO in SAP MM:

• Maintains a clear stock movement record.
• Supports inter-company transfer invoice generation.
• Gives real-time stock visibility with accurate information.
• Maintains proper logistics and delivery tracking.

Types of Stock Transfer Orders in SAP

STO process in SAP MM is classified into various types depending on where the stock is being transferred:

Plant-to-Plant Transfer (Intra-Company STO)

• Stock transfer from one plant to another plant in the same company code.
• No invoice generation is required.
• Uses movement type 301 for direct transfer.

Inter-Company STO (Company Code to Company Code Transfer)

• Stock transfer from one company code to another company code.
• Invoice generation and billing are required.
• Follows regular procurement and sales process.

Storage Location to Storage Location Transfer

• Stock is transferred from one storage location to another location in the same plant.
• Uses movement type 311.

Stock Transfer with Delivery (Using SD Module)

• Involves the use of a Sales and Distribution (SD) module for stock transfer.
• Makes use of outbound delivery creation.
• Facilitates improved tracking and logistics management.

Step-by-Step Guide to Creating a Stock Transfer Order in SAP

To effectively create a Stock Transfer Order in SAP, follow the following steps:

Step 1: Create the Stock Transfer Order (STO)

Open transaction ME21N.

• Choose document type (UB for inter-company, NB for intra-company).
• Enter supplying and receiving plant information.
• Enter the material number, quantity, and delivery date.
• Save the document to generate an STO.

Step 2: Approve and Release the STO

Approval can be mandatory depending on business policies.

• Release the STO using ME28, if necessary.

Step 3: Create Outbound Delivery

• Open VL10B and choose the STO.
• Process the shipment and create outbound shipping information.
• Utilize VL02N to select and package material.

Step 4: Post Goods Issue from the Plant Which Supplies

• Utilize MIGO to post goods issues.
• Choose movement type 641 in order to follow stock movement.
• This decreases the inventory of the supplying plant.

Step 5: Receive Goods at the Plant Which Receives

• Open MIGO and choose goods receipt.
• Utilize movement type 101 in order to increase the receiving plant stock.

Step 6: Invoice Processing (For Inter-Company STOs Only)

• Use MIRO to post the invoice.
• Required only for inter-company stock transfer.

Differences: Contract vs. Scheduling Agreement vs. Stock Transfer Order

A note of the difference between different procurement and stock movement documents in SAP MM is necessary. Here is a brief comparison:

Challenges in the STO Process

Common to most organizations, even though the STO process is well-designed in SAP, are:

• Incorrect selection of document type, leading to errors in processing
• Posting delays of goods receipt.
• Invoices missing in inter-company stock transfer.
• Stock differences are due to unsuitable movement types.

Conclusion

Understanding the STO process in SAP MM guarantees effective stock movement, proper tracking, and improved inventory management. You may be responsible for intra-company or inter-company STOs; regardless, mastering this process will maximize your supply chain operations.

If you wish to acquire hands-on experience and enhance SAP MM skills, CloudBook SCM provides professional training in Stock Transfer Orders and other SAP steps. With live case studies and interactive learning, CloudBook SCM is ahead of the pack in supply chain management life.

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