11/8/2019 SAP Stock Transport Order and Stock Transfer Process - SAP MM Training

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SAP Stock Transport Order and Stock Transfer

Process

Written by Afshad Irani and last updated on July 13, 2017.

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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.

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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.

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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.

Menu 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.

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ME21N – 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:

Items of Stock Transport Order

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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.

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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.

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Goods Receipt against STO

A Material Document for Goods Receipt

against SAP Stock Transport Order was
Created

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Did you like this SAP MM tutorial? Have any questions or comments? We would love to hear your feedback in the
comments section below. It’d be a big help for us, and hopefully it’s something we can address for you in
improvement of our free SAP MM tutorials.

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36 thoughts on “SAP Stock Transport Order and Stock Transfer Process”

monika kute
April 28, 2017 at 12:37 pm

Thanks,
its so useful in my industry work.

Srikanta Beura
August 30, 2019 at 9:00 am

Dear,
This is Intrastate STO process.
Will you please share Inter state STO process.

Julia
June 19, 2017 at 5:39 pm

Thank you! Very good explanation.

Didier GK
July 10, 2017 at 8:43 pm

Clear and fruitful explanations

Eric Ekinde
July 16, 2017 at 5:19 am

As a SAMS-1E, ULLS -AE n GCSS user, I see so much resemblance in processes though there is a slight change in
the terminologies used. SAP ERP, has broken down the purchasing process, made it simpler to understand once you
can understand and keep track of the terminology.

Ashish Kumar
July 27, 2017 at 12:47 pm

STO process made easily understandable by excellent explanation.

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Mohamed Chenider
July 29, 2017 at 7:21 pm

Do we need PO number in STO?

In the first step you have mentioned to do STO, what should we put in PO space?

Cleo Isco
August 10, 2017 at 12:31 pm

STO is simply a special type of PO.

Ashwini
August 10, 2017 at 6:19 am

it was very useful

Maha
August 10, 2017 at 5:32 pm

Hello All,
Can i know , how to find STO no , but via material document ?

Cleo Isco
August 11, 2017 at 11:47 am

If you open your material document in MIGO transaction, you can see STO number in item details on tab “Purchase
Order Data”. It is also saved in MSEG table (field EBELN).

King
August 21, 2017 at 12:29 pm

I want to say a very big thanks, the write up was very useful.
I would also want to know how to raise a PR.
And would also want to take a course on PM.

Cleo Isco
August 21, 2017 at 12:48 pm

Please check the tutorial about SAP Purchase Requisitions. Here is the link to our free SAP PM training.

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Jatinder Pal Singh

September 9, 2017 at 6:31 pm

Sometimes TR generated but TO not generated. How I can see the list of documents not have transfer order number
generated. Or how I can have list documents without TO order

Jatinder Pal Singh

September 9, 2017 at 6:36 pm

If there is any help on line. SAP related queries

Cleo Isco
September 10, 2017 at 9:52 pm

Please post your queries at our SAP Forum.

Anand
October 17, 2017 at 1:45 pm

Hi Cleo. Please explain the answers to this question especially the last one

SAP supports several variations of Stock Transfer process with a Stock Transport Order (STO). What are they?
Stock transfer with STO and a delivery document in one step
Stock transfer with STO and a delivery document in two steps

Stock transfer with STO without a delivery document in two steps

Cleo Isco
November 1, 2017 at 8:34 pm

Stock transfer with STO and a delivery document in one step -> Possible
Stock transfer with STO and a delivery document in two steps -> Possible
Stock transfer with STO without a delivery document in two steps -> Possible

Anand
October 17, 2017 at 1:51 pm

Hi Cleo. Please explain the answers to this question also especially the last one

In two-steps Stock Transfer process, when accounting documents are created and posted?

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During goods issue from the supplying plant.

Accounting documents are created only if materials have different valuation classes at the supplying and the receiving
plants.

Cleo Isco
November 1, 2017 at 8:40 pm

SAP needs to create accounting documents only if material stock will be allocated to different G/L accounts. This is
the case when materials have different valuation classes. Otherwise, since the material stock is just moved from
plant to plant within the same storage location, SAP doesn’t need to update accounting records.

Waqas Bhutto
November 2, 2017 at 7:59 am

Excellent Knowledge for Goods movement.

Thanks A lot.

Suresh Chandra Nayak

November 18, 2017 at 8:16 am

Very Good Stock Transfer Oder from Plant To Palt ,Thanks A Lot

Bala
December 6, 2017 at 7:32 am

Hi Team,
May I know who will create PO Ex: Big branch plant or receiver plant?
Regards,
Bala.

supriya
December 17, 2017 at 10:14 am

what is stock transfer and transfer posting? what is the difference between them?

Manan
July 26, 2018 at 2:48 pm

i created sto no. in me21n and now i am searching it on migo but it didnt search i want to transfer stock one plant to
other plant

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Arun
August 14, 2018 at 10:58 pm

Great place to learn. Being new to MM, it’s helpful for me to get an idea of how MM works.

Balachander Peddi
October 1, 2018 at 8:44 am

Nice explanation, its really good.

Solaiappan
October 24, 2018 at 8:28 pm

Thanks . Very handy and useful.

ahmed
October 29, 2018 at 2:51 pm

Thank you!

Veera
December 19, 2018 at 8:15 am

Nice explanation..easy to understand

Ehsan Shah
February 27, 2019 at 1:24 am

Wonderful explanation.

GS
April 7, 2019 at 12:37 pm

# How do we do Inter-plant stock transfers? e.g. Plant A (Belgium, Currency: EUR) and Plant B (China, Currency:
CNY); stock requirement is from Plant A; Source is Plant B; Both the plants are of the same group company
Please suggest.

Akshay
April 11, 2019 at 8:16 pm

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Very good explanation, just to add small information the item category used is “U”.

Shahid Naseer
May 16, 2019 at 10:11 am

Hello
When I am trying to do the MIGO for 2nd time with MT101 it is showing posting not allowed for document type ZST.
Can u please help

ASWINI KUMAR SAHOO

August 21, 2019 at 10:48 am

Excellent article with simplicity. Many thanks!!

Popon Kaphan
October 24, 2019 at 6:38 am

Hi Thank you for all tutorials. Could you please advise the process of how to run oustanding STO.

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