SAP MM Interview Questions and Answers by B G Basetty & Rajendra G

STOCK TRANSFER & TRANSFER POSTING

1. What are the settings for STO?

A: Definitions:
• IMG → Enterprise Structure → Definition → Financial Accounting
➢ Define company
➢ Edit, Copy, Delete, Check Company Code

• IMG → Enterprise Structure → Definition → Controlling → Maintain

Controlling Area

• IMG → Enterprise Structure → Logistics General

➢ Define, copy, delete, check plant
➢ Define, copy, delete, check division

• IMG → Enterprise Structure → Sales and Distribution

➢ Define, copy, delete, check sales organization
➢ Define, copy, delete, check distribution channel

• IMG → Enterprise Structure → Materials Management

➢ Maintain storage location
➢ Maintain purchasing organization

• IMG → Enterprise Structure → Logistics Execution → Define, copy,

delete, check shipping point
Assignments:
• IMG → Enterprise Structure → Assignment → Financial Accounting →
Assign company code to company

• IMG → Enterprise Structure → Assignment → Controlling → Assign

company code to controlling area

• IMG → Enterprise Structure → Assignment → Logistics General →

Assign plant to company code

• IMG → Enterprise Structure → Assignment → Sales and Distribution

➢ Assign sales organization to company code
➢ Assign distribution channel to sales organization
➢ Assign division to sales organization
➢ Set up sales area
➢ Assign sales organization - distribution channel – plant

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SAP MM Interview Questions and Answers by B G Basetty & Rajendra G

• IMG → Enterprise Structure → Assignment → Materials Management

➢ Assign purchasing organization to company code
➢ Assign purchasing organization to plant
➢ Assign standard purchasing organization to plant
➢ Assign purch. organization to reference purch. Organization

• IMG → Enterprise Structure → Assignment → Logistics Execution →

Assign shipping point to plant

• IMG → Logistics Execution → Shipping → Basic Shipping Functions →

Shipping Point and Goods Receiving Point Determination → Assign
Shipping Points

• IMG → Sales and Distribution → Basic Functions → Taxes → Define

Tax Determination Rules

• SAP Easy Access → Logistics → Sales & Distribution → Master Data →

Business Partner → Customer → Create → XD01 Complete

• IMG → Materials Management → Purchasing → Purchase Order → Set

up Stock Transport Order → Define Shipping Data for Plants
[Assign Customer No of Receiving plant to Supplying plant and
Customer No of supplying plant to receiving plant]

• IMG → Materials Management → Purchasing → Purchase Order → Set

up Stock Transport Order → Assign Delivery Type and Checking Rule
[Doc.Types: NL – Without Billing, NLCC – With Billing]

2. What is the setting required in the material master for automating stock
transport order?

A: In material master record, in Sales organization 1 view “Delivering Plant” and

“Tax codes” are to be maintained. In Sales organization2 maintain “Item category
group” as NORM. In sales org 3 maintain “Transportation Group” and “Loading
Group”

3. How do you configure Stock Transport Order?

A: For IMG settings refer Q.No – 1

• Create a material master record with “sales organization views” in both
supplying and receiving plants.
• In material master record, in Sales organization 1 view “Delivering Plant”
and “Tax codes” are to be maintained. In Sales organization2 maintain
“Item category group” as NORM. In sales org 3 maintain “Transportation
Group” and “Loading Group”

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SAP MM Interview Questions and Answers by B G Basetty & Rajendra G

• Create stocks of material in supplying plant.

• Create PO with respect to document type UB.
• In PO you must get shipping tab in Item details.
• Create outbound delivery at VL10B.
• Pick materials with respect to outbound delivery at VL02n.
• After this two accounting documents with a material document are
generated.
• You can monitor the stock form looking at stock in transit of receiving
plant.
• At receiving plant do the receipt of the material with respect to outbound
delivery at MIGO.
• No accounting document is generated after this receipt at receiving plant.
Only material document is generated.

4. What is the transaction code for creating stock transport order?

A: ME21N with document type UB

5. How do you set up single step stock transfer between two plants?

A: This type of stock transfer can only be carried out in Inventory Management.
Neither Shipping in the issuing plant nor Purchasing in the receiving plant is
involved in the process.
Transferring stock in one step has the following characteristics:
• 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.
Procedure:
• Choose Goods movement → Transfer posting.
• Enter the data on the initial screen:
➢ Enter the header data.
➢ Select movement type Transfer posting → Plant to plant →
Rem.fm/pl.in storage (301).

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➢ Enter the issuing plant and the issuing storage location as default
values for the individual items.
• Maintain the data on the collective entry screen:
➢ Enter the receiving plant and the receiving storage location. The
plant must already exist in this material's master record. If the
storage location does not yet exist in the material master record, it
is automatically created (provided that automatic creation of
storage locations is allowed in this plant).
➢ Enter the items. For each item, you can still change the issuing
plant and the issuing storage location.
• Check the data on the overview screen and post the document.
The stock transfer reduces unrestricted-use stock in the issuing plant and increases
the same stock in the receiving plant. Parallel to the material document, an
accounting document is created.

6. What are the different types of stock transfer? What are the movement
types/delivery types involved?

A: Different types of stock transfer:

• Stock transfer from company code to company code: A stock transfer
from company code to company code corresponds to a stock transfer from
plant to plant, with both plants belonging to different company codes.

• Stock transfer from plant to plant: A stock transfer from plant to plant not
only leads to a change in stock quantity in both plants; if both plants are
assigned to different valuation areas, an accounting document is also
created.
This type of stock transfer can only be carried out from unrestricted-use
stock of the issuing plant to unrestricted-use stock of the receiving plant.
Stock transfers from plant to plant are relevant for Material Planning,
since Materials Planning operates at plant level.

• From storage location to storage location (in the plant): A stock transfer
from storage location to storage location in the same plant simply causes
an update of the stock quantities in both storage locations. The stock value
remains unchanged, and the event is not relevant for accounting.
A stock transfer from storage location to storage location is possible for all
stock types.

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SAP MM Interview Questions and Answers by B G Basetty & Rajendra G

Movement types:

Sl
Mvt Type Description
No
1 301 Transfer posting plant to plant (one-step)
2 303 Transfer posting plant to plant - remove from storage
3 305 Transfer posting plant to plant - place in storage
4 309 Transfer posting material to material
5 311 Transfer posting storage location (one-step)
6 313 Transfer posting SLoc to SLoc - remove from storage
7 315 Transfer posting SLoc. to SLoc. - place in storage
8 321 Transfer posting quality inspection to unrestricted
9 323 Transfer posting quality to quality within plant
10 325 Transfer posting blocked stock to blocked stock
11 343 Transfer posting blocked stock to unrestricted-use stock
12 349 Transfer posting blocked stock to quality inspection stock
14 411 Transfer posting storage location (one-step)

Delivery Types:
• NL – Replenishment delivery.
• NLCC – Replenishment. Cross-company

7. What is the difference between stock transfer between two plants belonging
to same company code and those belonging to different company code?

A: In stock transfer between two plants of same company code only One accounting
document is generated.
Where as in stock transfer between two plants of different company codes, Two
accounting documents are generated.

8. In stock transport setup what is the importance of loading group?

A: In stock transport set up, the loading group automatically determines the
“shipping point” for the item.

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SAP MM Interview Questions and Answers by B G Basetty & Rajendra G

9. What is meant by one step and two step stock transfers?

A: One step stock transfer: It’s a one type of stock transfer in which a stock transfer
is done by entering a single transaction in the system.
Two step stock transfer: Its another type of stock transfer which contains a "goods
issue" from an issuing point and a "goods receipt" at a receiving point.
The two-step procedure, on the other hand, allows you to monitor the stocks in
transit. After the goods issue is posted at the issuing point, the stock appears "in
stock transfer" at the receiving point and is managed as such in the system.

10. How do you make transport order? What is the document type for stock
transport order?

A: The receiving plant request a stock transfer from the issuing plant in the form of
stock transport order. The issuing plant performs a goods issue (from IM or SD).
The stock is managed and valuated in the stock in transit of the receiving plant
while in transit. The receiving plant does the goods receipt. When using SD
delivery and billing the issuing plant sends an invoice. The receiving plant
verifies the invoice and enters the invoice.
The document type for stock transport order is UB

11. When is a stock transport order used?

A: For plant – plant stock transfer where (within same company or across
companies) the company wants to document and plan the goods movements.

12. Name the functions using stock transport orders available in the SAP
system?

A: Stock transport order without SD, Stock transport order with SD delivery and
Stock transport order with SD delivery & billing.

13. List some of the advantages of the stock transport orders (STO)?

A: The followings are the advantages of STO:

• Goods movements can be planned in either plant.
• Delivery costs can be entered in the stock transport order.
• The stock transport order can be taken into account in MRP for both
plants.
• Purchase requisitions created in MRP can be converted into stock
transport orders.
• The entire process can be monitored via the purchase order history.
• Enables the stock in transfer to be monitored.
• The goods issue can be entered using a delivery via Shipping

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• The goods receipt can be posted directly to consumption.

14. On what organizational level is stock in transit is managed?

A: Plant level

15. When stock is in transfer between two plants, in which plant does the stock
in transit, appears?

A: At the receiving plant.

16. What documents can be used in purchasing to request and monitor a stock
transfer?

A: Stock transport requisition, stock transport order and a stock transport scheduling
agreement.

17. What is the difference between stock in transfer and stock in transit?

A: Stock in transit is used for stock transfers involving stock transport orders. Stock
in transfer is used in the standard transfer posting with two step without
referencing a stock transport order.

18. What is the main advantage of stock transport orders with SD delivery?

A: It allows you to plan details associated with the delivery routes, carriers, shipping
points, availability check, rescheduling delivery dates.

19. When is processing completes in the issuing plant?

A: When the goods is posted. (Unless using SD delivery + Billing – then it is when
invoice is paid).

20. Describes the prerequisites for using SD to perform stock transfer?

A: Assuming not using SD delivery & Billing

Order type NB
Delivery type NL
Sales data for material master at the issuing plant (ie. Assign sales area)
Delivery type and checking rule assigned to purchasing document in the issuing
plant.
Customer master record must be maintained for the receiving plant (ie. Assign a
customer number to receiving plant)

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SAP MM Interview Questions and Answers by B G Basetty & Rajendra G

21. Explain how one step stock transport order is different from a one step
transfer posting?

A: The one step stock transport order uses the advantages of stock transport orders
such as, making the movement visible for MRP and flexibility to include a fright
vendor & delivery costs. An order is created followed by an SD delivery and
goods issue which automatically creates the goods receipt in the receiving pant.
The one step stock transfer posting is simply one goods movement transaction
that moves the goods to another location.

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