 ProductsProducts

 IndustriesIndustries
 SupportSupport
 TrainingTraining
 CommunityCommunity
 DeveloperDeveloper
 PartnerPartner
 AboutAbout

Search
Log O n


o
o
o
o


Home / Community /Blogs
Actions
Inter-company STO with SD Delivery, Billing & LIV
September 5, 2013 | 61,966 Views |

Satish Babu
more by this author
MM (Materials Management)
SAP ERP 062800669406846068490685406855enterprise resource planning

 share 0
 share 4
 tweet
 share 0

Follow

Dear Friends,

In this document I’m going to explain inter-Company Stock transport Order with SD Delivery, Billing
& Logistics Invoice verification.
Prerequisites:

1. Knowledge of MM & SD
2. Two organization structures: one for purchasing and another for sales

Purchasing: Company Code:8888, Plant: 8881, Sto. Loc: 0002, Purchase Organization: 8881,
Sales: Company Code:6666, Delivering Plant: 6661, Sto. Loc: 0001, Sales Area:6666, 66, 66,
Shipping Point 6666.

Step1. In Transaction XK01, Create Vendor Master to represent Supplying plant(6661) in receiving
company code(8888) & Pur.Org(8881).

In Purchasing Data, Goto Menu Bar, Extras > & click on Additional Purchasing Data. Here Maintain
the supplying plant(6661) so that it is linked to the vendor master.
Note: A Plant can only be assigned to one vendor number. So we have to extend the same vendor
number to different Pur.Org if required.
Step2. In Transaction XD01, Create Customer Master to represent Receiving Plant(8881) in
Supplying Company Code(6666) & Sales Area(6666,66,66).
In Sales Area Data, Shipping tab, Maintain Delivery Priority, Shipping Condition & Delivering
Plant(6661) as shown below.
Step3. Create Material Master with below selected views, in Supplying Plant(6661), Sto.Loc.(0001),
Sales Org(6666), Dist.Ch(66).
In Basic Data1 View maintain Division(66) & General Item Category Group Ex. Norm(Standard Item)

In Sales Org1 View, Maintain Delivering Plant(6661) & Tax Details as shown below
Note: If You are not able to see tax condition types or not maintaining any tax indicators then it is not
possible to Create a delivery against STO. Same applies to Customer Master in Step2.
In Sales Org2 View, Maintain Item category Group Ex. Norm (Standard Item)
.
Note: The Item Category group maintained here is preferred over general item category group and
used to determine ‘Item Category in Delivery’ Ex. NLC(For Inter Company) NLN(For Intra-
Company).
In Sales General Plant Data, maintain Availability Check Group(Ex.01), Transportation
Group(Ex.0001), Loading Group(Ex.0001).
Step4. Extend the Material Created in Step3 to Purchasing plant(8881) & Sto.Loc(0002) with below
selected views.
Configuration Settings

Step5. Define Shipping Data for Plants in below path

SPRO > Materials Management > Purchasing > Purchase Order > Setup Stock Transport Order

For Supplying Plant(6661), assign Sales Area(6666,66,66) as shown below.

For Receiving Plant(8881), assign Customer Number(100216) Created in Step2.
Step6. If required Create a Checking Rule by entering a two digit code & Description. Ex. B – SD
Delivery(Standard)
Step7. Define Checking rule Created in Step6 in combination with Availability Check Group(01)
assigned in material master Step3. Here select the stocks, receipts & requirements as per
requirement.
Step8. Assign Delivery type & Checking rule
Here Assign Delivery type(NLCC) & Checking rule(B) to the Purchase order Document type(NB) &
Supplying plant(6661) Combination as shown below.
Step9. Assign Document type, One Step Procedure & Under delivery Tolerance.
Here for Supplying & Receiving Plant(6661 & 8881 respectively) Combination Assign PO Document
Type(NB).

Select One step Check box to post the Goods receipt while doing PGI itself. Otherwise Goods
Receipt have to be carried out in another step.

If You Select tolerance limits check box, Then SAP closes the STO by marking final delivery Check
box, if delivered Quantity is within the under delivery tolerance limits maintained in delivery tab of
PO. It depends on Partial deliveries allowed or not. Then the remaining quantity will not be shown as
open in requirements.
Step10. Define Shipping Point Determination in below path
SPRO > Logistics Execution > Shipping > Basic Shipping Function > Shipping point Determination >
Assign Shipping Points.

Here assign Shipping Point(6666) for the Combination of Shipping Condition(01) (customer master
step2), Loading Group(0001) (material master step3) & Supplying Plant(6661).

Step11. Define Item Category Determination in Deliveries in below path

SPRO > Logistics Execution > Shipping > Deliveries > Define Item Category Determination in
Deliveries

Here assign Item Category (NLC – Replenishment delivery inter Company) for the combination of
Delivery Document type (NLCC), Item Category Group (NORM), Usage V (Purchase order) & Higher
level item category group ( ‘ ‘-blank) as shown below.

Assign Sales pricing procedure ICAA01 to the combination of Sales Area(6666,66,66), Document
pricing grp ‘ I ‘ (for billing doument type IV) & Costomer pricing grp ‘1’

Testing:
Make sure You have sufficient stock in issuing storage location(0001) of supplying plant
Step1. Create Purchase Order in Transaction ME21N with Document type NB, Vendor(2122),
Material(2116), PurOrg(8881) Pur Grp(001), Company Code(8888), Receiving Plant(8881).
Note: If you are using one step procedure the enter the receiving storage location(0002).

Here Observe the shipping tab with the above details as shown. Here first of all SAP checks for any
plant assigned in vendor Master. if not assigned then it will be a standard PO
Note: You Can process inter Company STO by using PO document type UB with Clearing accounts,
without delivery, w/o billing, w/o invoice(Mov.types 351 &101). If You are using document type NB
then it is only possible with delivery & trigger point is vendor master.
make sure you have proper sales tax setup in SD > Basic Functions > Taxes.. Customer & Material
Master is assigned to tax indicators. Create condition record for output tax condition type in
Trasaction VK11. Ex. MWST output tax
In Transaction VK11 Create Condition Record for Condition type PR00 with the sales price if
required.
Note: To adopt price from purchasing in to billing create a condition type with same name as PB00.
In copy control enter reference as application purchasing & condition type PB00. Now assign this
condition type in procedure ICAA01 after step of condition type IV01. Now the PO price is adopted
in to billing.
Step2. Generate Outbound delivery against purchase order in Transaction VL10G or VL10D
Here make sure that delivery date is in between the dates entered. & enter the shipping point
triggered in PO shipping tab. Then Execute.

Then Select the Purchase order line item & click on back ground.

Note: If you are able to see an extra line item with status green proceed to next step or else click on
log button as shown above.
Now click on line item & click on notes. now you will see some error messages & solve them.

Step3. Select the Line item & Click on Log Icon. Now click on documents & note down the outbound
delivery document number.
Go to Transaction VL02N. Enter the outbound delivery document number & Click enter. Here in
picking tab enter the issuing storage location & picked Quantity.

Check the Delivery item Category NLC. In Goods Movement tab observe the movement type 643(
two step). In item Conditions Tab Observe conditions as shown below.

Note(movement type 645 is for one step procedure)

Carry out the post goods Issue.
If You are not able to process PGI, then check WM is activated in storage location or if one step
procedure check PO whether receiving storage location entered or not.

Check The Accounting Document where stock account from BSX is credited & Cogs Account from
GBB-VAX is debited with the price as per supplying plant material master
Step4. In Transaction VF01 Create billing document with reference to outbound delivery.
Create Condition record for Condtion type PI01 in transaction VK11.
The Condition type PR00 & PI00 are for Information purpose only & the Condtion type IV01 is the
main condition type which is based on PI01.

Make Sure Account determination has been done and Save the billing document. Observe the
accounting document. Where Customer account is debited with the sum of revenues(credited) &
Tax(credited).
Step5. In Transaction MIGO do Goods receipt wrt Outbound delivery. Enter the receiving storage
location & post the goods receipt.
Check the accounting document. Whre stock account from BSX is debited & GR/IR account from
WRX is Credited with the price in PO.
Step6. In transaction MIRO carryout Logistics Invoice verification in receiving company code(8888).
Post the invoice & observe the accounting document. Where the vendor account is credited with the
sum of amount entered in PO to GR/IR A/c(debited) & Input tax account(debited)

NAVICUTS (Check Points for Error Messages):-

1. Not possible to determine shipping point for item 00010 Message no. 06855
Check Step2, Step3, Step10
2. There is no item category available in item category determination in the delivery (table T184L) for
the following entries: NLCC NORM V
Error Message No. VL320

Check Step3, Step11

3. Enter Stor. Location Message no. M7018
Check Step1 in Testing
4. No sales and distribution data maintained for material & Message no. 06854
Check Step3.
5. No delivery type defined for supplying plant 6661 and document type NB Message no. 06694

Check Step8
6. Please maintain sales org./division/distr. channel in supplying plant 6661 Message no. 06846

Check Step5
7. Customer does not exist (please change entry in plant 8881)

Message no. 06849

Check Step5
8. Not possible to determine shipping data for material & Message no.06280

This Error Message will not come in inter company stock transport orders & Will only come in Intra
company STO with Delivery & W/o Billing

-End Of Document
 Thanks For Reading. Please share your reviews & feedback….
Regards
Satish

Alert Moderator
123 Comments
You must be Logged on to comment or reply to a post.

1. SAP MM WMMarch 19, 2014 at 1:43 pm

Hi Babu

Thanks for sharing document & your efforts, its really very very useful.
Regards

Anubhav

like (0)

2. Baurzhan ZhakeleyevMarch 27, 2014 at 6:20 pm

Satish, thank you very much for such a contribution! It’s very helpful for me, the one who just begins
with SD.

As far as I understood from the following thread, it is better to use Account Group “0007” – Plants
instead of “0001” – Vendor.
Is that correct? i’m just wondering… & thinking which one to use… Thanks in advance!

Thank You for Your job!

plant assignment to vendor | SCN

Sujit Borse, in the end of the thread

like (0)

1. Satish Babu Post authorMarch 28, 2014 at 6:19 pm

Hi Baurzhan,
Thanks for your feedback,

Coming to your question, there is nothing much difference in using a 0007 or 0001 account group
except the number range series assigned to the vendor master to be created. You can assign a
plant to the vendor created with either of any account groups. But to differentiate a vendor of sister
plant it is better to create with 0007 vendor group. Coming to my scenario in this document, both are
independent plants existing in a single server, that’s why i have used account group 0001.

Regards

Satish

like (0)
3. abilash nMarch 31, 2014 at 2:33 pm
Nice doc Satish. Special thanks for your patience for making perfect doc which can make
understand even beginners.

like (0)

4. Baurzhan ZhakeleyevApril 15, 2014 at 9:46 am

Dear Satish, thanks you for this post! sorry if I’m asking a lot… Thank you again for your help.
In the text above you told:
“Note: To adopt price from purchasing in to billing create a condition type with same name as PB00.
In copy control enter reference as application purchasing & condition type PB00. Now assign this
condition type in procedure ICAA01 after step of condition type IV01. Now the PO price is adopted
in to billing.”
It is kindly requested from you to comment it a little bit in more details with SPRO path if necessary.
Please help…
Thanks!

PS: actually i do not have conditions copied into the Delivery document NLCC, and therefore have a
error during billing in step 4 of your document…

like (0)

1. Satish Babu Post authorApril 15, 2014 at 11:34 am

Dear Baurzhan,

Please check my previous replies(comments) for the same question in this document.

Regards
Satish

like (0)

1. Baurzhan ZhakeleyevApril 17, 2014 at 11:06 am

Dear Satish, thank you very much, for your reply!!! This presentation gave a lot in understanding the
Intercompany Procurement.

Coming back to your reply, I actually saw what you answered to Mr.Rijil Raj and Mr.Ahmed Fawzy
and did what you replied (with screen-shot) to them.
Right now when I post a billing in SD, the system gets the price “PR00” from records that I
maintained for condition type “PR00” in transaction VK11.
I have few questions:

1) Is it correct that the system takes price from condition type PR00 record and not from MM PO (NB
type)?
 2) If yes is it possible to adopt prices for material/services from MM PO into SD Outbound delivery,
and more importantly, in to SD Intercompany Billing? if so what i need to do in terms of
customising…
Thank you in advance… All other things works properly…

like (0)

5. Venkat PrasadApril 22, 2014 at 5:39 pm

Hi Satish Babu,

It is a extraordinary document. Thank you for preparing and sharing the document.

I have one question. I tried to create vendor with account group 0001, but i don’t see any place to
enter plant number under purchasing tab in extras. All i could see is

Two radio buttons:

1. Data retent. at VSR level allowed

2. Data retent. at plant level allowed
Please help me on where to enter supplying plant in vendor master when creating vendor with
account group 0001.

Thanks in advance.

like (0)

1. Satish Babu Post authorApril 23, 2014 at 2:50 am

Dear Venkat,

Thank you very much for your feedback.

Coming to your question, check whether the plant field is suppressed in field selection of Vendor
account group 0001 additional purchasing data.

Regards
Satish

like (0)

6. span 1April 22, 2014 at 6:59 pm

Very detailed.

Thank you.

like (0)

7. Ananth Thiruvengadam June 5, 2014 at 1:05 pm

Nice documentation. Thank You.

like (0)
8. Atul MahajanJune 9, 2014 at 11:55 am
Very Nice Knowledge sharing Document.

like (0)

9. Binoy VargisJune 9, 2014 at 1:18 pm

Very precise going to the minutest detail. Continue the good work. Thanks.

like (0)

10. Eric ChenJune 11, 2014 at 12:32 pm

nice documentation, and thanks for sharing!

like (0)

11. Udo WernerJune 16, 2014 at 8:41 am

I would like to remark that the described 2-step process has an issue from accounting perspective:

 Step 4 moves the stock out

of inventory and the credits the stock value from the inventory account
 Step 5 receives the material in the other company code and would again debit a
inventory account, but there is no guarantee that step 4 and 5 are posted in any
timely sequence. It might occur that the goods are loaded on a ship and would be
received only weeks later at the receiver.

From a consolidated group perspective the inventory has to stay in the books also in the meantime,
which is not the case in this process.

To enhance that, SAP has introduced the valuated stock in transit with ERP 6.0, enhancement pack
5, behind the switch LOG_MM_SIT:

http://help.sap.com/erp2005_ehp_05/helpdata/en/ee/045184edf24e15928397fc12b6296e/content.ht
m?frameset=/en/aa/12664becca415b912949adb49ddb4e/frameset.htm&current_toc=/en/4d/4b9036
dfe4b703e10000009b38f889/plain.htm&node_id=51
Best Regards, Udo
like (0)

3. Satish Babu Post authorJune 23, 2014 at 3:30 pm

Hi Udo
Thanks for the info

Regards
Satish

like (0)
1. KUMAR SUBRAMANIAMJuly 16, 2014 at 6:26 am
Hello Satish,
Thanks for your valuable input on Inter Company STO scenario.
I have verified the document yesterday only and request you to clarify following doubt,
In Step1 you have mentioned created vendor master data in receiving company code – 8888
but in snapshots company code is 8881?
If my understanding is wrong please correct me and expecting your response at earliest.
Regards,
Kumar
like (0)

1. Satish Babu Post authorJuly 21, 2014 at 5:04 am

Hi Kumar,

Thanks for your feedback. Company code 8888 is correct.

Regards
Satish

like (0)

1. KUMAR SUBRAMANIAMJuly 22, 2014 at 5:34 am

Hello Satish,

Thanks for the clarification will revert back if i have any more doubts.
Need your guidance on the same.
Regards,

Kumar S

like (0)

12. Bhargav tJune 25, 2014 at 4:43 pm

Satish Anna……..Fabulous work
like (0)

13. Parthasarathi R BJuly 8, 2014 at 6:05 pm

Hi satish,

very good document

Thanks,

Partha

like (0)
14. Cem atesJuly 23, 2014 at 7:07 am
Very good document Satish. Appreciated.
Thanks and regards.

Cem ATES

like (0)

15. surya prakashJuly 25, 2014 at 6:17 pm

Thank you Satish, for excellent job. This is really helpful document for all the people those who are
eagerly waiting for STO process.

I have one small doubt.

Here why we need to use IV01, why can’t we use PR00? to calculate the list price in inter company
invoice.

Waht is the exact logic behind this?

Please clarify
thanks,

like (0)

16. Venkat PrasadJuly 31, 2014 at 12:34 am

Hi Satish,
Could you please tell me that How does the price get copied onto delivery document (NLCC) from
the intercompany STO? I have maintained the pricing procedure for NLCC document. Pricing
condition amounts are coming in conditions tab of delivery. But the quantity is showing as zero.
Because of that all the condition values are zero. I want the condition values, Line item Net value to
have the values on conditions tab of delivery. Please let me know how to achieve this.

Currently Net value is showing as zero. Because qty in the conditions tab of delivery (NLCC) is zero.

Thank you.

like (0)

17. Umakanth Rao BathinaAugust 11, 2014 at 11:12 am

Hello Satish,

A very good article on Inter Company STO process. Very helpful.

Thank you so much for uploading this document.

Regards,

Umakanth

like (0)
18. Eswaras TDecember 5, 2014 at 7:36 am
Hello Sathish
The documents looks excellent.

I have one doubt, in the step 2, you are creating the customer in XD01 and giving supplying plants
sales area, distribution channel and division.
After that for the same customer, you’re assigning the supplying plant as delivery plant.

Please confirm my understanding is correct?

Regards

Ewaras

like (0)

19. Santosh SharmaDecember 5, 2014 at 11:31 am

Good informative documents thanks for sharing!!

Thanks,

Santosh Sharma

like (0)

20. S NMDecember 16, 2014 at 8:23 am

Very much informative document, thanks for sharing

the scenario was STO

do we have to follow same settings in the case of inter company sale.

Regards

Suresh

like (0)

21. S NMDecember 16, 2014 at 2:37 pm

HI Satish,

After the entire process,

Then how to clear the customer and vendor accounts

Regards,

SNM

like (0)
22. Romit PoddarJanuary 18, 2015 at 6:40 pm
Great document, big help for me at least
Thanks

Romit

like (0)

23. Vikal KumarApril 10, 2015 at 6:59 pm

Many Many Thanks Satish.Your Post clearly shows your hard work and passion for SAP.You have
attached Each and every screenshot with proper explanation.this is called a complete document.

I was struggling to map intercompany STO process since last 3 days ,Found many posts related to
that but maximum people has just copy paste the material from one place to another.and i would like
to mention there are major major gap in all the links.
Thank you so much once again.

Vikal.

like (0)

24. Revanth ChittoorAugust 14, 2015 at 10:20 am

Its an awesome doc ever seen till now

like (0)

25. Tianfu LiuOctober 14, 2015 at 7:07 am

i like you，thank you！

like (0)

26. Aman ShariefNovember 12, 2015 at 8:27 pm

I really appreciate the efforts in preparing this detailed document and I believe this document will

stop every question on inter-company STO.

like (0)

27. LE PONovember 29, 2015 at 7:48 am

Thank you so much

like (0)

28. SUBHASH PANDITDecember 27, 2015 at 9:51 am

HI,
 This is great effort.

Thanks for sharing knowledge.

Subhash P.

like (0)

29. Kishore PanchakarlaJanuary 7, 2016 at 11:00 am

Very much Detailed explanation with screen captures

like (0)

30. Prasad TatikondaFebruary 24, 2016 at 10:58 pm

Hi Satish,

Well done.. Nice document.

Regards,

prasad

like (0)

31. Simar AkmalMarch 22, 2016 at 7:31 am

Thank a lots

like (0)

32. SAIKIRAN KOCHARLAJuly 23, 2016 at 2:20 pm

Perfect explanation …
.
.
Ur a Man with Genuine efforts..

if u have an email..pls let me know.

as i have some doubts need to be solve.
like (0)

0. Jürgen LJuly 23, 2016 at 2:35 pm

If you have doubts on this excellent document then you should add them here in the comments
section, visible for all, as well as the reply will then be visible to all.

Asking for email is not a desired action in SCN and posting the email as well restricted by our rules
since the goal is to keep the knowledge online and visible for anybody.

like (0)
33. Bhanuteja ReddyJuly 27, 2016 at 12:55 pm
Thank you sir for sharing your knowledge with us.I failed so many times while doing Inter STO
process but this document helped me a lot.

like (0)

34. Subash MohanvelSeptember 20, 2016 at 5:45 pm

Very nice Doc !!!!

like (0)

35. Ben MortimerNovember 23, 2016 at 3:35 pm

Hi Satish,

This is a great document, so thank you!

I was wondering if there is any issue in having multiple supplying plants from the supplying company
code? To relate to your example, we have several plants in “Company Code” ‘6666’ that hold
different materials and we would like all of these plants to replenish stock for plant 8881 in
purchasing company code ‘8888’. Would it just be a case of repeating the process, assigning
different plants for distinct vendors and amending the supply chain by configuring the Material
Master special procurement accordingly?

I understand that a vendor can only have 1 plant assignment, and a plant only 1 vendor assignment,
but is this ok as long as the vendor/plant combinations are all different?
I was going to give this a try but wondered if anyone else has this same requirement?

Thanks,
Ben.

like (0)

36. Jasraj KFebruary 26, 2017 at 11:59 pm

Hi Satish,

Very informative and detailed document. Thank you so much for your work.
Also wondering if you have similar document for STO with SD Delivery but no billing

like (0)

37. Amol SawantOctober 27, 2017 at 5:39 am

Above process is really helpful.

like (0)
38. Sunny KumarNovember 7, 2017 at 2:43 pm
Hello,
Great document thank you so much.

One question, Can we skip the MIRO transaction on the STO ?

like (0)
Comment navigation
Previous12

Comment navigation
Share & Follow


Privacy

Terms of Use

Legal Disclosure

Copyright

Trademark

Sitemap

Newsletter