Inter-company STO with SD Delivery, Billing & LIV
In this document I’m going to explain inter-Company Stock transport Order with SD Delivery, Billing & Logistics Invoice verification.
- Knowledge of MM & SD
- 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.
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’
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
5. No delivery type defined for supplying plant 6661 and document type NB Message no. 06694
6. Please maintain sales org./division/distr. channel in supplying plant 6661 Message no. 06846
7. Customer does not exist (please change entry in plant 8881)
Message no. 06849
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….
Thanks for sharing document & your efforts, its really very very useful.
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
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.
Nice doc Satish. Special thanks for your patience for making perfect doc which can make understand even beginners.
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...
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...
Please check my previous replies(comments) for the same question in this document.
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...
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.
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.
Nice documentation. Thank You.
Very Nice Knowledge sharing Document.
Very precise going to the minutest detail. Continue the good work. Thanks.
nice documentation, and thanks for sharing!
I would like to remark that the described 2-step process has an issue from accounting perspective:
of inventory and the credits the stock value from the inventory account
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:
Best Regards, Udo
Thanks for the info
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.
Thanks for your feedback. Company code 8888 is correct.
Thanks for the clarification will revert back if i have any more doubts.
Need your guidance on the same.
Satish Anna........Fabulous work
very good document
Very good document Satish. Appreciated.
Thanks and regards.
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?
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.
A very good article on Inter Company STO process. Very helpful.
Thank you so much for uploading this document.
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?
Good informative documents thanks for sharing!!
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.
After the entire process,
Then how to clear the customer and vendor accounts
Great document, big help for me at least
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.
Its an awesome doc ever seen till now
i like you，thank you！
I really appreciate the efforts in preparing this detailed document and I believe this document will stop every question on inter-company STO. 🙂
Thank you so much 🙂
This is great effort.
Thanks for sharing knowledge.
Very much Detailed explanation with screen captures
Well done.. Nice document.
Thank a lots
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.
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.
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.
Very nice Doc !!!!
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?
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
Above process is really helpful.
Great document thank you so much.
One question, Can we skip the MIRO transaction on the STO ?
Thanks, it is a great document.
Manu thanks. Excelent document.
Very useful article. Thanks a lot for shearing!
I have few question-
Thanks and Regards,
A very good document. It helped me configure the system till billing.
But i am stuck at billing and when i try to create a IV using VF01, it gives me the error " Sales organisation is not defined". I don't see the interco sales org and interco billing type in LIKP for the delivery. Can you please help?
Great job Satish!!
Thanks for sharing
Thanks for your efforts in sharing knowledge with us!.
Useful document for basic understanding of STO process
Excellent document, thanks a lot Satish for the effort ans the great work, keep it up please !
Wonderful efforts with screen shot and proper example.
Really very much useful configuration
Very helpful document, thanks Satish. Keep posting
Indeed, wonderful document with detailed explanations and clear logic.
In order to save somebody time, I would like to add one fact:
in case if you face with trouble to determine Sales area on Item level in the Shipping tab, you can double check a table T9POSD - Map Supplying Plant to Sales Area. If there do not exist records for your suppling plant, material type and Sales area, you can easily add the necessary data in SM30.
Really good one..