Stock Transfer Process in SAP SD (Interview Perspective + Configurations)
Stock Transfer Process is one of the most important topics in SAP SD for Global Rollout Projects — especially when dealing with Intercompany or Intracompany stock movements between plants or countries.
It’s frequently asked in Order-to-Cash (OTC) interviews to check how well you understand logistics integration between SD, MM, and FI.
1. What is Stock Transfer Process in SAP SD?
Stock Transfer Process is the movement of materials from one plant (or storage location) to another, either within the same company code (Intra Company) or between two different company codes (Intercompany).
Types of Stock Transfers:
| Type | Scenario | Billing Type |
| Intra Company Stock Transfer | Between plants within the same company code | No Billing |
| Intercompany Stock Transfer | Between plants in different company codes | Intercompany Billing |
| Cross Company Stock Transfer | Across countries or subsidiaries | Intercompany Billing + Customs |
2. Stock Transfer Process Flow
a) Intra Company Stock Transfer (Plant to Plant)
✅ Same Company Code
✅ No Billing Involved
✅ Material Movement only
Process Flow:
- Stock Transfer Order (STO) – (ME21N)
- Outbound Delivery – (VL10B / VL02N)
- Goods Issue Posting – (VL02N)
- Goods Receipt Posting – (MIGO)
Accounting Entries:
| Transaction | Debit | Credit |
| Goods Issue | Stock Sending Plant | Stock Transit Account |
| Goods Receipt | Stock Receiving Plant | Stock Transit Account |
3. Intercompany Stock Transfer Process
✅ Between plants of different company codes
✅ Intercompany Billing
✅ FI Invoices
Process Flow:
- Stock Transfer Order (STO) – (ME21N)
- Outbound Delivery – (VL10B / VL02N)
- Goods Issue – (VL02N)
- Intercompany Billing (VF01)
Configuration Steps
| Configuration | Details |
| Define Supplying Plant | Assign Plant to Company Code |
| Assign Sales Area to Plant | SD Integration |
| Define Intercompany Billing Type | IV (Internal Invoice) |
| Pricing Procedure | Include Condition Type PI01 for Intercompany Price |
| Copy Control | Delivery to Billing |
Pricing Procedure Example
| Step | Condition Type | Description |
| 10 | PR00 | Customer Price |
| 20 | PI01 | Intercompany Price |
| 30 | VPRS | Cost Price |
| 40 | MWST | Tax |
4. Configuration Steps (Step-by-Step)
a) Define Document Types for STO
👉 ME21N (Purchase Order)
- NB – Standard PO
- UB – Stock Transport Order (Intra Company)
- ZUB – Intercompany STO
b) Assign Delivery Type to STO
- Delivery Type: NL (Intra Company)
- Delivery Type: NLCC (Intercompany)
c) Define Billing Document Type
- Billing Type: IV (Intercompany Invoice)
- Copy Control: Delivery ➡️ Invoice
d) Assign Customer to Supplying Plant
- Create Customer Master using Account Group CPD (One-Time Customer)
- Use XD01 / BP to create the customer
- Link Customer to Supplying Plant via Assign Sales Area to Plant
Interview Questions
| Question | Key Answer |
| What is the difference between Intra and Intercompany STO? | Billing in Intercompany, No Billing in Intra |
| How is Intercompany Price determined? | Pricing Condition Type PI01 |
| How does SAP automatically create deliveries from STO? | Use transaction VL10B |
| How do you configure Intercompany Billing? | Define Billing Type IV + Pricing Procedure |
| What are the accounting entries in Stock Transfer? | Stock Transit + GR/IR Clearing |
5. Common Issues in Global Rollouts 🌍
| Issue | Solution |
| Tax Calculation for Intercompany | Configure MWST Condition |
| Automatic Delivery Creation | VL10B Job Scheduling |
| Different Currencies for Plants | Currency Conversion in Pricing |
EDI Integration for Stock Transfer
- ORDERS ➡️ Stock Transfer Order
- DESADV ➡️ Advanced Shipping Notification
- INVOIC ➡️ Intercompany Invoice
6. Configuration Objects Required
| Configuration | T-Code |
| Define Document Type | OME2 |
| Assign Delivery Type | MM06 |
| Create STO | ME21N |
| Delivery Creation | VL10B |
| Billing Document | VF01 |
Special Scenarios
| Scenario | Configuration |
| Stock Transfer with Batch | Batch Management |
| Serial Number Tracking | Serial Number Profile |
| STO with Handling Unit | HU Management |
Final Summary
| Process | Key Points |
| Intra Company STO | Plant to Plant, No Billing |
| Intercompany STO | Company to Company, Intercompany Billing |
| Cross Company STO | Customs + EDI |
