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Inter-company STO with SD Delivery, Billing

& LIV
September 5, 2013 | 47,490 Views |

Satish Babu
more by this author

MM (Materials Management)

SAP ERP | 06280 | 06694 | 06846 | 06849 | 06854 | 06855 | enterprise resource planning

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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

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123 Comments
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SAP MM WM

March 19, 2014 at 1:43 pm

Hi Babu

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

Regards

Anubhav

Baurzhan Zhakeleyev

March 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

Satish Babu Post author

March 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

abilash n

March 31, 2014 at 2:33 pm

Nice doc Satish. Special thanks for your patience for making perfect doc which can
make understand even beginners.

Baurzhan Zhakeleyev

April 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…
Satish Babu Post author

April 15, 2014 at 11:34 am

Dear Baurzhan,

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

this document.

Regards

Satish

Baurzhan Zhakeleyev

April 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…

Venkat Prasad

April 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.

Satish Babu Post author

April 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

span 1

April 22, 2014 at 6:59 pm

Very detailed.
Thank you.

Ananth Thiruvengadam

June 5, 2014 at 1:05 pm

Nice documentation. Thank You.

Atul Mahajan

June 9, 2014 at 11:55 am

Very Nice Knowledge sharing Document.

Binoy Vargis

June 9, 2014 at 1:18 pm

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

Eric Chen

June 11, 2014 at 12:32 pm

nice documentation, and thanks for sharing!

Udo Werner

June 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/045184edf24e15928397fc12b62
96e/content.htm?
frameset=/en/aa/12664becca415b912949adb49ddb4e/frameset.htm&current_toc=/en
/4d/4b9036dfe4b703e10000009b38f889/plain.htm&node_id=51

Best Regards, Udo

Satish Babu Post author

June 23, 2014 at 3:30 pm

Hi Udo

Thanks for the info

Regards

Satish
KUMAR SUBRAMANIAM

July 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

Satish Babu Post author

July 21, 2014 at 5:04 am

Hi Kumar,

Thanks for your feedback. Company code

8888 is correct.

Regards

Satish

KUMAR SUBRAMANIAM

July 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

Bhargav t

June 25, 2014 at 4:43 pm

Satish Anna……..Fabulous work

Parthasarathi R B

July 8, 2014 at 6:05 pm

Hi satish,

very good document

Thanks,

Partha

Cem ates

July 23, 2014 at 7:07 am

Very good document Satish. Appreciated.

Thanks and regards.

Cem ATES

surya prakash

July 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,

Venkat Prasad

July 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.
Umakanth Rao Bathina

August 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

Eswaras T

December 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

Santosh Sharma
December 5, 2014 at 11:31 am

Good informative documents thanks for sharing!!

Thanks,

Santosh Sharma

S NM

December 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

S NM

December 16, 2014 at 2:37 pm

HI Satish,

After the entire process,

Then how to clear the customer and vendor accounts

Regards,

SNM

Romit Poddar
January 18, 2015 at 6:40 pm

Great document, big help for me at least

Thanks

Romit

Vikal Kumar

April 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.

Revanth Chittoor

August 14, 2015 at 10:20 am

Its an awesome doc ever seen till now

Tianfu Liu

October 14, 2015 at 7:07 am

i like you，thank you！

Aman Sharief

November 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.

LE PO

November 29, 2015 at 7:48 am

Thank you so much

SUBHASH PANDIT

December 27, 2015 at 9:51 am

HI,

This is great effort.

Thanks for sharing knowledge.

Subhash P.

Kishore Panchakarla

January 7, 2016 at 11:00 am

Very much Detailed explanation with screen captures

Prasad Tatikonda

February 24, 2016 at 10:58 pm

Hi Satish,

Well done.. Nice document.

Regards,

prasad

Simar Akmal

March 22, 2016 at 7:31 am

Thank a lots

SAIKIRAN KOCHARLA

July 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.

 Jürgen L

July 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.

Bhanuteja Reddy

July 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.

Subash Mohanvel

September 20, 2016 at 5:45 pm

Very nice Doc !!!!

Ben Mortimer

November 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.

Jasraj K

February 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

Amol Sawant

October 27, 2017 at 5:39 am

Above process is really helpful.

 Sunny Kumar

November 7, 2017 at 2:43 pm

Hello,

Great document thank you so much.

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

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