Inter Company STO Process in S/4 HANA

For Example: We are transferring material from company code G800 to J500 Company code

Company code G800 act as supplying Plant and J500 company code acts as receiving plant

Configurations to-do from SD Side:

 Create Sales organization
 Create Distribution Channel
 Create Check Division
 Create Customer Master
 Assign Sales Organization to Company Code
 Assign Distribution to Sales organization
 Assign Division to Sales organization
 Set up Sales Area
 Assign Sales organization – Distribution Channel – Plant

For the Inter Company Code STO:

 Create the Supplier in Receiving Company Code and Receiving Purchasing Organization and assign
Supplying Plant in the Vendor General Data. (i.e., For the Receiving Company Code, the Supplying
Plant acts as a Supplier.)
 Create the Customer in the Supplying Company Code (i.e., the Customer acts as a Receiving Plant for
the Supplying Company Code.)
For the Supplier:
 In FLVN00 create the supplier in Receiving Company Code
 In FLVN01 create the Supplier in Receiving Company Code and assign the Supplying plant in the
vendor General Data.

For the Customer:

 Create the Customer in the Supplying Company Code of FLCU00.
 Create the Customer in Supplying Sales Organization, Distribution Channel and Division in FLCU01.

Extend the Material Master

In Basic Data 1 Maintain Sales Division for both company code should use G8
Extend the sales view with the following parameters
G800 G8 G8

In Sales: General Data View

Maintain Availability Check – 01 ; Transportation Group – 0001; Loading Group – 0001

Page 1 of 4
Define Shipping Point:

Shipping point is an independent organizational entity and is required to ship the products to a customer.
 Shipping point processes and monitors the deliveries as well as goods issue is carried out.
Configuration: SPRO –> IMG –> Enterprise Structure –> Definition – >Logistics Execution –> Define, Copy,
Delete, Check shipping point

Transaction Code: OVXD

Here we can Create the Shipping Point by Copying from the Standard one or we can create new one by
clicking on the new entries.

Here I create the Shipping Point by Copying from the standard one.

Assign Shipping Point to Plant:

Configuration: SPRO –> IMG –> Enterprise Structure –> Assignment –> Logistics Execution –> Assign
shipping point to plant

Transaction code: OVXC

Select the Plant and click on the Assign tab and choose the shipping Point to assign to the Plant.

Shipping Point Determination:

A Shipping Point is an independent organizational entity where the issuance and delivery processing of goods
take place.
 SAP Shipping point determination depends on the following factors: Shipping terms and conditions
from the customer master record (shipping screen).
Configuration: SPRO –> IMG –> Logistics Execution –> Shipping –> Basic Shipping Functions –> Shipping
Point and Goods Receiving Point Determination –> Assign Shipping Points

Transaction Code: OVL2

Define Shipping Data for Plants:

Configuration: SPRO –> IMG –> Material Management –> Purchasing –> Purchase order –> Set up Stock
Transport order –> Define Shipping Data for Plants

For Supplying Plant – G800

Select the Plant and click on the details button, or double click on the line item.

Maintain the Sales organization – Distribution Channel – Check Division

For the Receiving Plant:

 Enter the Customer Number

Assign Delivery Type and Checking Rule:

Page 2 of 4
  Configuration: SPRO –> IMG –> Material Management –> Purchasing –> Purchase order –> Set up
Stock Transport order –> Assign Delivery Type and Checking Rule
 For Inter Company STO, The Delivery Type should be NLCC.
 Assign Delivery Type and Checking Rule to the Document Type and Suppling Plant.

Assign Document Type, One-Step Procedure, Under delivery Tolerance:

 Configuration: SPRO –> IMG –> Material Management –> Purchasing –> Purchase order –> Set up
Stock Transport order –> Assign Document Type, One-Step Procedure, Under delivery Tolerance
 By clicking on New Entries, we can assign Supplying plant and Delivering Plant to Document type
(or) else by copying the existing one change the plants and document type.

END USER PROCESS

Create Purchase Order in ME21N

 Document Type will be “NB” for Inter Company STO Process.

 If we maintain all the back-end settings correctly then only the shipping tab will appear while creating
Purchase order.
The Receiving Plant will create the PO. So, create the PO in the Receiving Purchasing Organization, Receiving
Company Code and Receiving Purchasing Group.

Create the Outbound Delivery in (VL01N, VL10B, VL10D)

VL10D

Page 3 of 4
Page 4 of 4