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STO route to Sale-purchase route

Former Member
0 Kudos
79

Hi experts,

Currently we are doing STO steps for transfer of material from one plant to antother plant. Now, our finance deptt wants to stop STO route for stock transfer. Instead, they want to configure it through Sale-Purchase route.

Kindly help in following:

1. What would be the configuration steps

2. What would be the transaction steps

3. What would be the advantages/Dis-advantages by adopting this route.

thanks in advance,

regards,

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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hi,

In sale purcxhase we cosider 1 plant as vendor & another as a customer so we have to apply Xk 01 for create vendor & XD 01 for create customer In sto there is no need to do this This scenario is simmiler to our daily sale-purchase transaction

Regards

sangita

Former Member
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thanks

Answers (3)

Answers (3)

JL23
Active Contributor
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you only need to remove the plant assignment made to vendor master (master data) and customer master. (customizing)

then you use them like for any external procurement and sale.

disadvantage is certainly that you add the sales order creation step, which was not necessary with STO.

Former Member
0 Kudos

Hi,

Thanks. Can you please explain where and why we do the plant assignment.

In addition, as per my understanding, there would be change in automatic account assignment activities as under:

1) On PGI, following a/c entries takes place at Sending plant:

In case of STO:

Receiving plant Debit

To Inter unit transfer (out)

To Excise Duty Payable (if applicable)

In case of Inter-plant Sale:

COGS

To Inventory

Similarly there would be auto accounting posting at the time of Billing (VF01) and Excise Invoice (J1IIN)

2) At receiving plant there would be different accounting entries while GR against Outbound Delivery / STO PO or against Normal Purchase Order.

Can anybody help on this ..

regards,

Former Member
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Hi,

Can anybody help on this points please..

Former Member
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Hi,

what is the business reason for this...If those plants are under the same entity..we can transfer thru STO..

If you want to track and capture the Frieght..you can go for STO with Shipping (SD route)..

Hope it helps you.

Kuber

Former Member
0 Kudos

Hi,

As per my under standing Sale-purchase route for STO is nothing but external procurement. There are no need of extra config steps. Can set MRP for the external procurement. Thanking you.