In the following engaging dialogue, consultant Julia and supply chain manager Paul introduce the various options available for stock transfers between plants.
Options for Processing Stock Transfer Between Plants
To perform a transfer between plants, the following options are available:
Stock Transport Order with Delivery
This is the SAP Best Practice scenario Stock Transfer with Delivery (BME). It defines a standardized process for transferring stock between plants, combining the control of a purchase order with the logistical advantages of delivery-based shipping.
The process begins in the requesting plant, where a stock transport order (STO) is created. Optionally, the STO can be based on a stock transport requisition, which may be automatically generated by Material Requirements Planning (MRP).
The STO is visible in both the delivering and receiving plants. When the order is ready for shipment, an outbound delivery is created in the delivering plant. After the shipping process is completed, a goods issue is posted, and the goods are physically transferred to the receiving plant.
During transit, the issued quantity is tracked as stock in transit, assigned to the receiving plant. This ensures accurate inventory visibility throughout the transfer.
The process concludes when the goods receipt is posted in the receiving plant, completing the stock transfer.
Stock Transport Order without Delivery
This is the SAP Best Practice scenario Stock Transfer without Delivery (BMH). It defines a streamlined process for transferring stock between plants, combining the efficiency of a lean workflow with the control and visibility of a purchase order accessible in both the supplying and receiving plants.
The key difference between this scenario and the Stock Transfer with Delivery (BME) process is the absence of an outbound delivery. Instead, when the goods are ready to leave the supplying plant, a goods issue is posted directly with reference to the stock transport order (STO).
This simplified approach reduces logistical steps while still ensuring traceability and integration with inventory and procurement processes.
Stock Transfer Posting
This is the SAP Best Practice scenario Cross-Plant Transfer Posting (1P7). It defines a process for transferring stock between plants using transfer postings, offering flexibility through either a one-step or two-step procedure.
A transfer posting consists of a goods issue from the issuing plant and a goods receipt in the receiving plant. This can be executed in one of two ways:
One-step procedure:
Both the goods issue and goods receipt are posted in a single transaction. This approach simplifies processing and minimizes system effort.
Two-step procedure:
The goods issue and goods receipt are posted separately. After the goods issue is posted, the quantity is recorded as transfer stock, which belongs to the valuated stock of the receiving plant. This method provides better visibility and control over goods in transfer.
Note
In the two-step transfer posting process, the stock being moved is referred to as transfer stock. In contrast, for a stock transport order, the stock is referred to as stock in transit. This distinction reflects differences in how the system manages and tracks the transferred inventory.
Now, listen again as Julia, the SAP consultant, offers Paul, the supply chain manager, some valuable insights on selecting the appropriate transfer procedure.