SAP Stock Transport Order and Stock Transfer Process

Large companies having many plants in different geographical locations

commonly require stock movement from one plant to another. For this
purpose, SAP ERP has a special process with SAP stock transport order (STO)
that enables to move stock from one plant to another or between different
storage locations of plants.
For example, in one of my trading client, we used to import materials from
abroad in big containers and then those containers were unloaded into one big
branch (plant) as it was cost efficient to import materials in bulk to one
location. Next, other smaller branches (plans) raised SAP stock transport order
(STO) to purchase stock from big branch for the quantity required. The big
branch dispatched the quantity against the STO on the mentioned delivery
dates.
In the below screenshot, you can see a diagram illustrating the stock transfer
process. STO is raised by a receiving plant and sent to a supplying plant. The
supplying plant then delivers the material, which in the SAP system will be
shown as stock in transit. When the receiving plant receives the material,
goods receipt takes place at the receiving plant. There is no invoicing, as the
stock is transferred between plant that are part of the same company.

Stock Transfer with SAP Stock Transfer Order (Example)

How to Create SAP Stock Transport Order?
To create a stock transport order in SAP, please follow the steps described
below. First, either start the transaction ME21N or navigate to the following
path in SAP menu: Logistics – Materials Management – Purchasing – Purchase
Order – Create – ME21N – Vendor/Supplying Plant Known.

Men
u Path for ME21N Transaction
Stock transfer process uses the standard transaction ME21N for creating
purchase orders (PO), where we trigger STO process by selecting document
type = Stock Transport Order as shown on the screenshots below.
 ME

21N – Create a Purchase Order Select Stock Transport

Order as the Document Type
Here you need to provide your supplying plant. As mentioned above, the
supplying plant in our example is the big branch which imported the stock and
has stock available. You also have to provide your purchase organization,
purchase group and company code as show on the screenshot below. Our
tutorials about SAP MM organizational structure should be helpful in learning
more about purchasing organization and other MM organizational units.

Enter Supplying Plant, Purchasing Organization, and Company Code in STO

In the item overview screen below, you need to provide the material that you
would like to procure from the supplying plant along with the plant number
which is ordering this material, quantity, storage location and delivery dates as
shown below:

I
tems of Stock Transport Order
If you have any additional charges which needs to be added to the cost of the
material, you should provide the details in the conditions tab. For instance, it is
possible to add freight charges as shown below:

Pricing Conditions of Stock Transport Order

Now, your stock transport order is ready and to cross check for any errors in
your STO, click on button which will tell you if everything is correct in your
document. If not, then a red button will come up notifying you about error(s) in
the document that needs to be fixed before you can save the document. Once
all issues are fixed, you click the button, which will save the document. The
SAP system will provide you with SAP generated document number as shown
below notifying that the document has been created.
SAP Stock Transport Order
has been created.

Goods Issue Against SAP Stock Transport Order

Once the STO is created, the next step is to do a goods issue against the STO raised
above. Go to the transaction MIGO or navigate to the following path in SAP
menu: Logistics – Materials Management – Inventory Management – Goods

Movement – MIGO.

MIGO Transaction in SAP Menu

In MIGO, it is necessary to do goods issue against a purchase order, with a

movement type 351 which is used for moving materials from supplying plants to
stock in transit of receiving plants.

Goods Issue in MIGO Transaction

Here you need to enter the number of STO, set OK checkbox for the item and then
click on Post button which will post your goods issue and provide you a message
that a material document was created (see screenshots below).

Set OK Checkbox for the Item A Material

Document for Goods Issue against SAP Stock Transport Order was created.

Goods Receipt Against SAP Stock Transport Order

Now, the last step is to do goods receipt in the receiving plant when the goods
physically arrive there. Goods receipt is also done in MIGO transaction. It is
necessary to perform goods receipt against a purchase order using the movement
type 101 as shown below. Then, set the OK checkbox next to the material item and
finally post the document by pressing Post button. The system will provide you a
message that the material document was posted.
Goods Receipt against STO A Material
Document for Goods Receipt against SAP Stock Transport Order was created.