Lesson Summary

Stock transfer refers to the process of transferring materials from one location to another within a company. It commonly involves transferring materials from a manufacturing plant to a distribution center.

There are different ways to carry out stock transfers, such as through goods movements using transactions like MIGO in SAP or through stock transfer orders (STOs). STOs are a common method used for stock transfers between plants.

STOs are similar to purchase orders but have characteristics of both buying and selling. They are used for internal transfers within a company and involve one plant acting as the customer and the other plant acting as the vendor or supplier.

Stock transfer orders are typically created from the requirement side, meaning the plant that needs the materials creates the STO. Other examples of stock transfers include returns from a customer to a vendor, transfers between store locations within a plant, and transfers between plants belonging to the same or different company codes.

Intracompany stock transfers occur when both plants involved in the transfer belong to the same company code. In contrast, if the plants belong to different company codes, the transfer is referred to as intracompany stock transfer. In the latter case, proper accounting and invoicing entries are needed between the separate legal entities represented by the different company codes.

It is important to distinguish between intracompany stock transfers and intracompany sales, as they are separate processes. Intracompany stock transfers involve the movement of materials within a company, while intracompany sales involve the sale of materials between different legal entities within the same company.