SAP Intra-Company Stock Transfer (STO) Process Flow

Prepared by Harshvrdhan Rathore

Moving stock between two plants of the same company code — from the requirement and stock transport order, through delivery, goods issue and transit, to goods receipt at the receiving plant. There is no vendor, no billing to a customer and no payment. Solid boxes are the main flow (number = sequence); dashed boxes are setup, supporting or automatic SAP steps. Hover over a box to see details.

Same company codePlant → PlantSTO→ Outbound delivery→ Goods issue→ In transit→ Goods receiptNo billing · no payment

Main process step (number = order) Supporting / master data activity Document flow Input / support

Department-wise role

Step-by-step flow

#	Department	Activity	What happens	Output

Key intra-company STO concepts

One-step vs two-stepOne-step: goods issue and receipt are posted together. Two-step (with delivery): goods issue first, stock sits in transit, then the receiving plant posts goods receipt. Most companies use two-step for control.

Stock in transitQuantity that has left the supplying plant but not reached the receiving plant. It belongs to the receiving plant and is valued, so it must be cleared regularly.

ValuationStock moves at the supplying plant's valuation price. Both plants are in one company, so no revenue or profit is booked; only price differences between plants may post.

Delivery from the supplying plantThe supplying plant uses a normal outbound delivery, so picking, packing, shipping point and goods issue work like a sales delivery.

Movement types641 — goods issue to stock in transit (two-step), 101 — goods receipt at the receiving plant, 647 — one-step transfer (goods issue and receipt together).

GST in IndiaSame GST number: delivery challan. Plants in different states (different GST numbers): the transfer is a taxable supply — a tax invoice, e-way bill and GST input credit at the receiving plant.

Note: when plants have different GST numbers, many companies add an intra-company billing step for the tax invoice. Gate entry is usually a custom development. Codes and settings vary by client configuration.