SAP R/3 and SAP ERP Offer New Stock Transport Orders Features

  • by Vishwas Karandikar, Systems Project Manager, Applied Materials, Inc.
  • April 15, 2008
Find out what is new with stock transport orders in SAP R/3 4.7 and SAP ERP. The new and enhanced features enable stock transport orders in more business scenarios and reduce the amount of required data maintenance.
Key Concept
Companies use stock transport orders (STOs) to transfer inventory between two network sites. SAP ERP manages STOs similarly to purchase orders in the system. STOs behave as supply at receiving locations, whereas they serve as demand signals at supplying locations and behave akin to sales orders. Traditionally, these locations are plants, which can be in the same company code or in different company codes. You can set up inventory transfers using STOs with or without shipping documents, in a single step, or in two steps. The most common form of inventory transfer is stock transport order using a two-step inventory transfer with shipping documents. This method enables you to track the transfer between the two locations separated by a distance, which is especially useful for transferring materials internationally.

Using the new features available for stock transport orders (STOs), you can deploy STOs more easily and to more business scenarios. Tracking processes are simplified and increased visibility is evident across the supply chain, which eliminates the need for several custom workarounds. For example, these enhanced STO features ease replenishment to customer-facing sites (e.g., retail locations or inventory being held as consignment at a customer site) that maintain service levels. They also alleviate the amount of required data maintenance to transfer excess inventory and other returns to distribution centers and manufacturing plants.

STOs are widely used to distribute inventory in the network. You can create STOs by using the special procurement functionality in material requirements planning (MRP). Logistics tracking is handled using a delivery note, which is a logistics document that reserves inventory for an outbound inventory transaction, such as a sales order or STO. The outbound delivery note can provide an advance shipment notification (ASN) to customers and serves as the basis of the logistics shipping function. In the context of STOs, the delivery note generates all required shipping documents and you can view the document flow. For intercompany transfers, you create billing documents in the supplying company code and vendor invoices in the receiving company code.

Vishwas Karandikar

Vishwas Karandikar, CPIM, CSCP, PMP, is a systems project manager at Applied Materials, Inc. He has more than eight years of solution design and project management experience focused on supply chain planning. He has led multiple implementations of SAP R/3 logistics modules and designed interfaces with external systems.

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