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SAP Intercompany Processes: STO with Billing step by step guideline

Leelamohan
Participant
‎2025 Apr 07 10:50 AM
0 Kudos
2,425

The Intercompany Stock Transfer Order (STO) process in SAP enables organizations to manage the transfer of goods between different company codes while ensuring proper valuation, taxation, and financial reconciliation.

When billing is integrated into the intercompany STO process, it ensures that the supplying entity invoices the receiving entity, maintaining compliance with transfer pricing regulations and providing a clear audit trail for cross-company transactions.

In this blog, we will explore the key configuration steps, master data requirements, and process flow for setting up and executing an Intercompany STO with Billing in SAP.

Steps to be carried out:

1. Create Intercompany Stock Transfer order (ME21N)

  • Vendor (Receiving company, set up an intercompany vendor)
  • Plant (Shipping & Receiving)
  • Save to Generate the Intercompany STO Number.

2. Outbound Delivery Creation (VL10D)

  • Reference the STO to Create the Outbound Delivery
  • Enter the Pick Qty & from Storage Location
  • Post Goods Issue (GI) (MIGO) to reduce stock in the supplying plant

3. Goods Receipt (GR) at Receiving Plant (MIGO)

  • The receiving company posts Goods Receipt (GR) to update its inventory

4. Post Invoice Document (MIRO)

  • The receiving company posts the Invoice Verification

5. Post Billing Document (VF01)

  • Create billing document (invoice) from the outbound delivery:
  • Pricing is determined based on intercompany conditions.

Step 1: Create Supplier in the Receiving Company Code

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Step 2: Create Customer in the Supplying Company Code

Maintain Shipping Condition under Sales and Distribution view under shipping tab.

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Step 3: Create Material and Extend for both the plants

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Step 4: Define Shipping Point

Path: SPRO -> Enterprise Structure –> Definition – >Logistics Execution –> Define, Copy, Delete, Check shipping point

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Step 5: Assign Shipping Point to Plant

Path: SPRO –> Enterprise Structure –> Assignment –> Logistics Execution –> Assign shipping point to plant.

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Step 6: Shipping Point Determination

Path: SPRO–> Logistics Execution –> Shipping –> Basic Shipping Functions –> Shipping Point and Goods Receiving Point Determination –> Assign Shipping Points

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Step 7: Define Shipping Data for Plants

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

For Supplying Plant

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For Receiving Plant

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Step 8: Assign Delivery Type & Checking Rule

Path: SPRO –> Material Management –> Purchasing –> Purchase order –> Set up Stock Transport order –> Assign Delivery Type and Checking Rule

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Step 9: Assign Document Type, One Step Procedure, Under Delivery Tolerance

Path: SPRO –> Material Management –> Purchasing –> Purchase order –> Set up Stock Transport order –> Assign Document Type, One-Step Procedure, Under delivery Tolerance.

Note: If one step check box ticked, In this process as soon as the supplying plant posted Goods Issue with 645 Mvt. type, 101 (GR) in receiving plant will be posted immediately with same material document number.

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Step 10: Create Stock Transfer Order

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STO 9900051 Created

Step 11: Create Outbound Delivery with STO Reference

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Outbound Delivery Created 80000121

Step 12: Pick Outbound Delivery & Post Goods Issue

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Navigate to Item Details

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Enter Pick Quantity & Storage Location details and click on Apply

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Click Save

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Click Post GI

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Check PO History

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Check Accounting Entries for GI document.

BSX - Credit Entry

GBB - Debit Entry

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Check In-Transit Stock (Transaction: MB5T)

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Check Stock in MMBE

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Step 13: Post Goods Receipt in Receiving Plant

Post Goods Receipt can be done against Purchase Order or against outbound delivery with 101 movement type.

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Check PO History

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Check FI Entries for GR document

BSX - Debit Entry

WRX - Credit Entry

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Step 14: Check the document flow (Transaction: VL03N or Manage Outbound delievries App)

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Step 15: Invoice Verification in Receiving Company Code

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Check PO History

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Check Follow on documents for invoice

KBS - Credit Entry

WRX - Debit Entry

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Check the stock in MMBE

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Step 16: Create Billing Document

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Check Document flow

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Click the below link for Intra-company purchasing process.

Intra-Company Purchasing in S/4 HANA: A Guide to Efficient STO Processes

 

 

Regards, 

Leelamohan Mannem

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