Describing Stock Transport Orders in SAP

Objectives

After completing this lesson, you will be able to:

  • Describe Stock Transport Orders in SAP
  • Explain Intra-Company vs. Cross-Company STOs

Stock Transport Order Overview

A Stock Transport Order (STO) is a Purchase Order used to request or instruct a plant to transport stock from one plant to another within the same corporate enterprise. Stock Transport Orders allow for the monitoring of the stock transit and associating delivery costs with the stock. The use of Goods Issue and Goods Receipt can be associated with a Stock Transport Order.​

For example, a company may purchase in bulk from an overseas supplier to save on shipping and delivery costs. Goods are delivered to a distribution center. Stock Transport Orders are created by plants to request the transfer of goods from the distribution center to their plant.

The process flow for a Stock Transport Order in SAP is shown in the diagram below.​

Process flow for a Stock Transport Order in SAP

Watch the following video for an overview of Stock Transport Orders

Stock Transport Order Simulation

Differences between Stock Transfers and Stock Transport Orders

SAP supports multiple ways of moving stock from one location to another. One way is to use a Stock Transfer. Another way is to use a Stock Transport Order. Both of these methods facilitate the movement of stock from one location to another but each have their own features.​

Here is a list of some of the differences between a Stock Transfer and a Stock Transport Order.​

  • Stock Transfers do NOT require an order
  • Stock Transport Orders are a type of Purchase Order
  • Stock Transport Orders take advantage of Goods Issues for delivery via shipping
  • Stock Transport Orders support the creation of Goods Receipts
  • Stock Transport Orders can specify a freight vendor
  • Stock Transport Orders can be monitored via the Purchase Order history--there is no traceability for Stock Transfers​
  • Stock Transport Orders support delivery and billing​
  • Stock Transport Orders support dates and tolerances
  • Stock Transport Orders can monitor stock in transit
  • Stock Transport Orders can be part of an MRP process

Intra-Company STOs

An Intra-Company Stock Transport Order is one where the Supplying Plant and the Receiving Plant are both in the same SAP Company.​

The process flow for the Intra-Company​ Stock Transport Order in SAP is​ shown in the diagram below.

Intra-Company Stock Transport Order Process Flow

Here is a description of the steps of the process flow for an Intra-Company Stock Transport Order:

  1. Create the Stock Transport Order (this is visible to both the Supplying and Receiving Plants).
  2. The Outbound Delivery is created.
  3. The Goods Issue is created and posted.
  4. The Inbound Delivery is created. This is an optional step. Whether or not the Inbound Delivery is automatically created is dependent on the configuration.
  5. The stock is transported.
  6. The Goods Receipt is posted

Cross-Company STOs

A Cross-Company Stock Transport Order is one where the Supplying Plant and the Receiving Plant are in different SAP Companies.

The process flow for the Cross-Company Stock Transport Order in SAP is shown in the diagram below.

Cross-Company Stock Transport Order Process Flow

Here is a description of the steps of the process flow for a Cross-Company Stock Transport Order:

  1. Create the Stock Transport Order (this is visible to both the Supplying and Receiving Plants).
  2. The Outbound Delivery is created.
  3. The Goods Issue is created and posted.
  4. The Inbound Delivery is created. This is an optional step. Whether or not the Inbound Delivery is automatically created is dependent on the configuration.
  5. The stock is transported.
  6. The Billing Document is created. This contains information about price and quantity.
  7. The Goods Receipt is posted.
  8. The Invoice is created based on the Goods Receipt and the Billing Document.

The following video explains the difference between an Intra-Company and Cross-Company Stock Transport Order.

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