STO Process – MM STO/Intra /Inter STO (MM-SD Integration)

STO- Stock transport order

Concept:

Every company will be having many plants and even they have same kind of materials for
few kind of production activities, every time procuring from vendor is time consuming and
even money because one of the other plant having those stocks without usage, so to save
money for the company we use STO process.

SAP has been recommended STO type order “UB” for internal procurement purpose and we
can have goods moment within company to company and plant to plant.
1. One step Method between two plants
2. Two step Method between two plants
3. Stock transfer between two plants without delivery (MM STO)
4. Stock transfer between two plants with delivery without billing (Intra STO)
5. Stock transfer between two plants with delivery with billing (Inter STO)

1.One step Method between two plants:

One step method means -the supplying plant will transfer the goods to receiving plant and
posting goods movement accordingly by supplying plant,

Like using 301 movement in MB1B, the member will transfer the goods to other plant.

2.Two step Method between two plants:

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Two step method means- the supplying plant will transfer the goods to receiving plant and
now once they transfer the goods to receiving plant it will get posted in Transit in order
stock and when the receiver sees the stock in plant then receiver will post the other
movement to move from in transit to plant stock.

Supplying plant will do 303 movement type in MB1B and receiving plant will do 305
movement type in MB1B.

3.Stock transfer between two plants without delivery (MM STO):

This process is also called as MM STO, but many of the companies will use intra or inter
process because of more features wrt stock.

In this case the respective receiving plant will creates a PO, with details mentioned as from
which plant and stock required and all the details.

PO will be created with document category UB and item category as U, so that it’s a inter
STO PO created for internal stock movement.

Once the PO is created will give to the supplying plant and the from the supplying plant
there is a goods movement done by plant person.

Using movement type 351-MB1B, movement of goods will happen once we create PO.
Now the goods will be in in transit and the receiving plant person will be doing MIGO wrt
PO, so that stock will show as unrestricted stock.

4.Stock transfer between two plants with delivery without billing (Intra STO)

Inter STO also have the same features as I mentioned below, whereas here the stock
transfer is 2 different company codes with different plants and each from one company
code.

Here we require help of SD Consultant, whenever you were creating STO PO, we need to
take help of SD consultant. Stakeholders need to inform the receiving plant, so that they will
be creating the customer code for that particular plant and maintain some distribution
channel accordingly for that, As a SAP MM Consultant we need to maintain the backend
settings for the receiving plant, so that will get shipping tab in the PO for that particular
receiving plant.
This type of process is called MM-SD Integration

**********We cannot perform 3rd scenario if we are working 4th as present, to work
for 3rd scenario we need to delete the settings for 4th step and process always*********
Requirements

We need to ensure that material that we are shipping from 1 plant to other plant should be
extended in material master for both the plants.

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Both the materials should have sales and purchasing and accounting views mandatory.

Sales data will be given by SD Consultant and if not, we can request SD Consultant to give
the sales data to update for the material master.

Ensure to select all the 3 sales views and maintain the important data required in all the 3
screens to avoid SD errors.

In Material master we need to maintain the standard language for those receiving plants-
Additional Data-Languages, Maintain the language like DE_ Germany

Ensure stock is there in supplying plant, or else we will get error in OBD-Outbound delivery

Back-End settings for Shipping (Intra):

To get shipping tab details in PO, we need to maintain few backend settings for PO-STO

SPRO-
Materials Management-
Purchasing-
Purchase Order-
Setup STO

(!) Define Shipping data for Plants:

Here we need to define the shipping data for plants, maintain the receiving plant details like
-double click on receiving plant-Enter Customer number, Sales organization, Distribution
channel E.t.c.

All the Above information will be given by SD Consultant.

Enter all the details and save the screen.

(!!) Assign delivery type and checking rules:

We need to maintain the delivery type and some checking rules for this step.
Order type as Order type-UB
Supplying plant-
Delivery type- NL(Intra)
We have 2 delivery types NL and NLCC
Checking rule maintain as 01

(!!!) Assign Document type One step Procedure, Under Tolerance

SPL plant –
Rece plant-

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Order type-

Once we done all this correct -PO will take shipping tab automatically for this scenario.

Process:

We have done with backend settings, now create PO- Me21n and mention the purchasing
document as UB and item category as U.

Enter the material, shipping plant and receiving plant- enter the quantity and other data-PO
will pop up a Shipping tab with NL order type.

Now let’s think shipping pant is having stock to create OBD.

OBD is the process where shipping plant will create a delivery invoice in which material will
be adjusted to move out to receiving plant.

VL10D-Outbound Delivery

Open VL10D and Purchase orders- maintain the purchase order and check the dates the PO
delivery is between that dates and execute -so that it will take to quantity screen and select
line and go to background.

If you want to check the log- check and take the OBD number or else if any errors found, try
to resolve.

PGI-

Once the OBD is done, the supplying plant should issue the goods to receiving plant, for that
they require PGI-Post goods issue.

PGI will be done based on OBD quantity and same will be moved as in transit.

VL02N-PGI will be done with OBD reference number – just take the picking tab and mention
the quantity as OBD posted and post PGI.

Once PGI is posted, goods will be moved to in transit and we can see in MMBE stock report-
in transit.

If we check for movement type happening its 641 and once everything is done and goods
received to plant, then post MIGO

Following with MIGO with OBD and not with PO, Post MIRO and this Intra goods concept
has been end.

*****there will be no billing for with in company code transfers **********

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5.Stock transfer between two plants with delivery with billing (Inter STO)

Inter STO is also same as intra STO, whereas we have little different because vendor (XK01)
is involving in terms of supplying plant.

Why we are involving vendor, because they should be billing to be done to supplying plant
from receiving plant.

Inter STO is also called as MM-SD Integration

Because higher level credits and debits will be involved for company code level, here two
different company codes, so billing should TAKES PALCE.

We will be creating material as normally and maintaining in both the plants as we did for
intra STO by maintaining sales data for both.

Now create maintain a vendor and inside purchasing data -maintain for plant as supplying
plant-once you enter vendor in PO -it will take supplying plant backend.

Requirements

Material (SP+RP)
Vendor-Purchasing to plant as SP
Customer number from SD Consultant

Back-End settings
Define shipping data for plants

Maintain the receiving plant customer code and remaining data that received from SD
Consultant

Assign Delivery type and checking rule

Here we re creating PO with Document type NB- because vendor is involving indirectly
NB document type
Item category -Standard

Assign Document type One step Procedure, Under Tolerance

Document type is NB-mention the shipping and delivery plant and save the back-end
settings.
Process

Now we can create a PO, with NB document type and blank item category, whereas we
already maintained vendor as plant in XK01.

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Now as per the backend settings and XK01 vendor mater shipping tab will come
automatically with delivery type NLCC

Now post OBD-Outbound delivery, VL10D-proceadure has been explained above

Now post the PGI-Post goods issue with respect the OBD and once PGI is posted goods will
be in intransist.

Now do the billing for the plant to which we are sending through VF01 and this implies with
billing from the respective cost center.

Now we can do the MIGO with respect to OBD and following with MIRO.

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Pricing Procedure and Price flow process in PO----SAP MM Consultants

Pricing procedure: pricing procedure defines the price flow process in purchasing document
like PO, we can define a pricing conditions as per our needs and requirements and maintain
+/- accordingly.
Price flows into purchase documents with the help of access sequence- where access
sequence is a 3-digit key and consists of sequence of some purchase documents like
Contract, PIR with plant, scheduled agreement.

Based on the access sequence the price will go and enter in PO from contract or PIR or
scheduled agreement.

few basic concepts need to know before entering in to pricing procedure.

1. Access sequence
2. Condition types
3. Condition table
4. Calculation schema
5. Schema group
6. Schema determination

On what basis pricing conditions flow into PO.

Based on Vendor and purchase organization.

4.Schema group

Schema group: grouping all international vendor into one grouping pricing condition called
as schema group

Explanation:

we all know, in procurement we will deal domestic and international vendors and pricing
conditions are different as per there location like discounts, tax and net calculation and for
differentiating those price we need schema group(which will be assigned to vendor) and 1
more schema group for purchase organization.

SPRO-
Materials Management-
Purchasing-
Conditions-
Define price determination process-
Define schema group-

Schema group- vendor

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Schema group- purchase organization
5.Schema determination: Assign schema group to purchase organization

Schema group- vendor:

Here we will define a schema group based on vendor location like either its local or
international.
We need to assign the schema group to vendor in vendor master-Purchasing data-schema
group.
We will be assigning to all the vendors which was created in the SAP for the procurement
purpose.

Totally we will define 2 schema groups for an organization, 1 is for local and 1 is for
International.

Schema group- purchase organization:

Here we will define schema group for purchase organization, in which we will assign
calculation schema with schema group

Basically, we have RM0000 as a default condition and based on that we will define a new
condition and assign to schema group for purchase organization.

Assign schema group to purchase organization:

We will link schema group to purchase organization and schema condition-calculation

schema.

Now, based on vendor schema group and purchase organization the condition- calculation
schema will be defined automatically.

Pricing flow procedure- from contract, Outline agreement and PIR Overview:

1.Access Sequence:

SPRO-
Materials Management-
Purchasing-
Conditions-
Define price determination process-
Define Access sequence-

We all know, price will flow into PO from Older PO’s or PIR or Contract.

But where this is defined and how the system is taking priority like this, this can be achieved
by access sequence.

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Where we will maintain the access sequence with this condition like below.

1. Scheduled agreement
2. Contract
3. PIR
4. Older PO’s

Based on this sequence, price will be picked in PO automatically.

Because access sequence is always linked to condition types like PB00.

PB00 is a condition where gross price will be calculated for auto PO’s- so we need to
maintain an access sequence and link to condition type.

1 condition type can be linked to 1 access sequence only.

2. Condition types-

SPRO-
Materials Management-
Purchasing-
Conditions-
Define price determination process-
Define Condition types-

Condition type defines the debit or credit or discount (+/-)

Few of the condition types are PB00- Gross price

PBXX- Gross price manually

FRA1- Freight charges
ZA03- Discount
Condition types are mainly 4 types-
Basic price
Discount
Tax
Freight

If we are defining new condition type, then always copy from standard condition types

Like for net/gross- copy from PB00

For freight related- Copy from FRA1
For surcharge related- copy from ZA00

3.Calculation schema:

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SPRO-
Materials Management-
Purchasing-
Conditions-
Define price determination process-
Define Calculation schema -

Here we will define a schema condition in which all the price condition types will be
maintained.
Will define all condition types like Gross, friend, Discount conditions

1.Step- indicates the sequence

2.counter- Indicates the sub in the sequent
3.Condition type- define the condition type required
4.from- if it’s a net/gross price- then we need to maintain the excel formula to calculi like
10:10
5. To- if it’s a net/gross price- then we need to maintain the excel formula to calculi like
10:10 or 10:20
6.Manual- Means we need to maintain the field in PO manually
7.required- It means the condition type is mandatory.
8.Statistical- It means it will be there but 0 price also, no problem.
9. printing control
10. subtotal field – press F4 and select the total number like 9.
11. Requirement
12.Cal. type
13.Bastype
14. Accrual Key- If any new account key effect is there then we can mention it here
15. Accrual account Key

3.Condition table:

Condition table is a 3-digit key, where we fill update the sequence of condition to be
impacted in the condition record like PB00.

Here we will update the sequence of combination like material, vendor, plant, Purchase
organization.

Once we have updated the conditions, system will check for any master data which contains
price and update the same condition in PO.

Material
Vendor
Plant

Final Overview to understand the pricing procedure:

Price flow process:

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Condition fields- Material, vendor, Plant and Purchase organization
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Condition table: 017
|
Access Sequence: 0002
|
Condition types: PB00
Calculation schema: ZRM0001

flow from condition fields which will be maintained in condition table.

Access sequence tells from which sequence price should take either from contract or PIR

Condition types will be always linked to access sequence, so PB00 – linked to 0002
Calculation schema would be implemented by vendor and purchase organization setup.

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