Stock Transfer Order/Stock Transfer Posting

The transfer of stocks between two places is stock transfer order in layman language. In SAP, it’s a bit more than that.The places refer to plants in company codes and they could be same or different.

Now Stock transfer order is different from Stock transport order. Key differences are:

1)Stock Transfer Order is only for inventory management. The Shipping and Purchasing modules or areas are not involved,i.e. Shipping in the issuing plant or Purchasing in the receiving plant are involved.

2) Delivery costs are not involved here.

3) Movement types involved are different.

4) No plant specific configurations are needed for transfer posting.

5)Less number of transactions invoiced incase of stock transfer order.

Usually Stock transfer order can be done in 1-2 steps.

1 Step method- Simple one in fact-Use of MB1B tcode with movement type 301.Wecan use MIGO as well.

Simplest way of transferring the stocks

• The stock transfer is entered as a transfer posting in Inventory Management.
• The transfer posting can be planned by creating a reservation.
• The quantity of the stock transferred is posted immediately from the unrestricted-use stock of the issuing plant to the unrestricted-use stock of the receiving plant
• The transfer posting is valuated at the valuation price of the material in the issuing plant.
• If the plants involved belong to different company codes, the transfer between plants is also a transfer between company codes. In this case, the system creates two accounting documents for the transfer posting. The stock posting is offset against a company code clearing account.

2 Step method-This is preferred when the following conditions are needed-

• Long time span between leaving Plant A and arriving at Plant B
• Need to control when goods leave plant A but not received at plant B

The stock transfer includes the following processes:

1. A goods issue in the issuing plant
2. A goods receipt in the receiving plant

Transferring stock in two steps has the following characteristics:

• The transfer posting cannot be planned by creating a reservation, which makes it different from 1 step transfer
• The quantity posted from stock is first of all managed as stock in transfer in the receiving plant. Only once the goods receipt has been posted is the quantity posted to the unrestricted-use stock of the receiving plant.

This enables the quantity "on the road" to be monitored.

• The transfer posting is valuated at the valuation price of the material in the issuing plant.

If the plants involved belong to different company codes, the transfer between plants is also a transfer between company codes. In this case, the system creates two accounting documents when the goods issue is posted. The stock posting is offset against a company code clearing account.