Inter Company STO: (With Delivery and Billing)

Materials are transported between the plants belonging to the different company codes
in INTER COMPANY STO Where the supplying and receiving plants are in different
company codes.

Configurations to-do from SD Side:

 Create Sales organization

 Create Distribution Channel

 Create Check Division

 Create Customer Master

 Assign Sales Organization to Company Code

 Assign Distribution to Sales organization

  Assign Division to Sales organization

 Set up Sales Area

 Assign Sales organization – Distribution Channel – Plant

Create Sales organization:

Configuration: SPRO –> IMG –> Enterprise Structure –> Definition –> Sales and
Distribution –> Define, Copy, delete, check sales organization

Transaction Code: OVX5

We can create Sales organization by copying from the Standard one or we can enter create
manually in New Entries.

Here I Create the Sales organization by copying from the Standard one.
Double click on the line Item or select the line item and click on the details tab.

If you want to change the currency you can change here and assign the Reference Sales
organization.

Create Distribution Channel:

Configuration: SPRO –> IMG –> Enterprise Structure –> Definition –> Sales and
Distribution –> Define, copy, delete, check distribution channel

Transaction Code: OVXI

We can create the Distribution channel by copying from the Standard one or we can enter
create manually in New Entries

Here I Create the Distribution channel by copying from the Standard one.

Create Check Division:

Configuration: SPRO –> IMG –> Enterprise Structure –> Definition –> Logistics General –>
Define, Copy, Delete, check division

Transaction Code: OVXB

We can create the Di vision by copying from the Standard one or we can enter create
manually in New Entries

Here I Create the Division by copying from the Standard one.

Assign Sales Organization to Company Code:

Configuration: SPRO –> IMG –> Enterprise Structure –> Assignment –> Sales organization
–> Assign Sales organization to Company Code

Transaction Code: OVX3

Assign DistributionChaneel to Sales organization:

Configuration: SPRO –> IMG –> Enterprise Structure –> Assignment –> Sales and
Distribution –> Assign distribution channel to sales organization

Transaction Code: OVXK

Check Distribution Channel is assigned to the Sales organization or not. If not assigned, click
on new entries to assign.

Assign Division to Sales organization:

Configuration: SPRO –> IMG –> Enterprise Structure –> Assignment –> Sales and
Distribution –> Assign Division to sales organization

Transaction Code: OVXA

Check Division is assigned to the Sales organization or not. If not assigned, click on new
entries to assign.

Set up Sales Area:

Configuration: SPRO –> IMG –> Enterprise Structure –> Assignment –> Sales and
Distribution –> Setup Sales Area

Transaction Code: OVXG

In Set up Sales Area we assign Sales organization –> Distribution Channel –> Check
Division.

Check if they are assigned or not. If they are maintained Click on the new entries to assign.
Assign sales organization - distribution channel – plant:

Configuration: SPRO –> IMG –> Enterprise Structure –> Assignment –> Sales and
Distribution –> Assign sales organization –> Distribution channel –> Plant

Transaction Code: OVX6

Assign Sales organization and Distribution Channel to both Supplying plant and Receiving
plant.

These are the Configurations settings maintained from SD Side.

Note: In S/4 Hana we can create both Supplier and Customer in a single Transaction Code
BP.

For the Inter Company Code STO:

 Create the Supplier in Receiving Company Code and Receiving Purchasing

Organization and assign Supplying Plant in the Vendor General Data. (i.e., For the
Receiving Company Code, the Supplying Plant acts as a Supplier.)
  Create the Customer in the Supplying Company Code (i.e., the Customer acts as a
Receiving Plant for the Supplying Company Code.)

For the Supplier:

 In FLVN00 create the supplier in Receiving Company Code

 In FLVN01 create the Supplier in Receiving Company Code and assign the Supplying
plant in the vendor General Data.
For the Customer:

 Create the Customer in the Supplying Company Code of FLCU00.

 Create the Customer in Supplying Sales Organization, Distribution Channel and

Division in FLCU01.
Now we Maintain the Configurations settings From MM Side

Here I Create the material –> 13000083 and extended to both Plants.
In Basic Data 1 Maintain Sales Division.

In Sales Organization 1 View maintain the Tax Classification

In Sales organization –>2 View Maintain Item category group - NORM.

In Sales: General Data View

Maintain Availability Check – 01

Transportation Group – 0001

Loading Group – 0001

In Accounting 1 view Maintain the Valuation Class and Price.

Extend the Material Master to Receiving Plant – 9003

Go to MM01 Transaction code.

 Enter the Material Number, Industry Sector and Material Type.

 Enter the Receiving Plant and Receiving Storage location.

Check and enter the missing fields in the selected views.

Define Shipping Point:

Shipping point is an independent organizational entity and is required to ship the products to
a customer.

 Shipping point processes and monitors the deliveries as well as goods issue is carried
out.

Configuration: SPRO –> IMG –> Enterprise Structure –> Definition – >Logistics Execution
–> Define, Copy, Delete, Check shipping point

Transaction Code: OVXD

Here we can Create the Shipping Point by Copying from the Standard one or we can create
new one by clicking on the new entries.

Here I create the Shipping Point by Copying from the standard one.
Assign Shipping Point to Plant:

Configuration: SPRO –> IMG –> Enterprise Structure –> Assignment –> Logistics
Execution –> Assign shipping point to plant

Transaction code: OVXC

Select the Plant and click on the Assign tab and choose the shipping Point to assign to the
Plant.
Shipping Point Determination:

A Shipping Point is an independent organizational entity where the issuance and delivery
processing of goods take place.

 SAP Shipping point determination depends on the following factors: Shipping

terms and conditions from the customer master record (shipping screen).

Configuration: SPRO –> IMG –> Logistics Execution –> Shipping –> Basic Shipping
Functions –> Shipping Point and Goods Receiving Point Determination –> Assign Shipping
Points

Transaction Code: OVL2

Define Shipping Data for Plants:

Configuration: SPRO –> IMG –> Material Management –> Purchasing –> Purchase order –>
Set up Stock Transport order –> Define Shipping Data for Plants

For Supplying Plant – 9001

Select the Plant and click on the details button, or double click on the line item.
Maintain the Sales organization – Distribution Channel – Check Division

For the Receiving Plant:

 Enter the Customer Number

Assign Delivery Type and Checking Rule:

Configuration: SPRO –> IMG –> Material Management –> Purchasing –> Purchase order –>
Set up Stock Transport order –> Assign Delivery Type and Checking Rule

For Inter Company STO, The Delivery Type should be NLCC.

Assign Delivery Type and Checking Rule to the Document Type and Suppling Plant.

Assign Document Type, One-Step Procedure, Under delivery Tolerance:

Configuration: SPRO –> IMG –> Material Management –> Purchasing –> Purchase order –>
Set up Stock Transport order –> Assign Document Type, One-Step Procedure, Under
delivery Tolerance
By clicking on New Entries, we can assign Supplying plant and Delivering Plant to
Document type (or) else by copying the existing one change the plants and document type.

If we tick the checkbox the system thinks the STO process should be a one-step Procedure.

Create Purchase Order in ME21N

 Document Type will be “NB” for Inter Company STO Process.

 If we maintain all the back-end settings correctly then only the shipping tab will
appear while creating Purchase order.

The Receiving Plant will create the PO. So, create the PO in the Receiving Purchasing
Organization, Receiving Company Code and Receiving Purchasing Group.
 Standard PO created under the number 4500000911.

Here I am creating the Inter Company Code STO in Two-Step process.

Create the Outbound Delivery in (VL01N, VL10B, VL10D)

Here I am creating the Outbound Delivery in VL10D Transaction Code.

  Enter the Shipping Point and Purchase order Number and click on Execute Button.

Select the PO Number and click on the Background button.

Another line will be generated with Green Mark. Select that line and click on the Delivery
log creation Tab.
Place the Cursor and click on the documents button the Outbound Delivery Number will be
displayed.

The Outbound Delivery Number is – 80000364.

Next Change the Outbound Delivery Number (i.e., Post Goods Issue in VLO2N)

Enter the Picked Quantity, Storage location and check the Incompleteness data.

If all the data is ok, click on the Post Goods Issue or save button.
 Replenishment Cross-Company 80000364 has been saved.

Now Check the Purchase order History in the Purchase Order in ME23N.
The Supplying Plant has issued the Goods, but the stock will be in Transit until the Receiving
the Plant does the Goods Movement.

Check the Stock Transit in MB5T

Now done the Goods Movement in MIGO

Goods Receipt –> Purchase order

 Material document 177 posted.

The Accounting Entries are:

For Goods Receipt:

BSX –> DR

WRX –> CR
For Goods Issue:

BSX –> CR

GBB –> DR

Next do Invoice Verification in MIRO.

 Invoice Verification is done by the Receiving Company Code.

Document no. 46 created.

The Accounting Entries are:

KBS –> CR

WRX –> DR

Next do Billing in VF01.

Enter the Outbound Delivery number and click on the Execute button.

Check the data and click on the save button to generate the Billing Number.
 Document 90000193 has been saved.

Now Check the Purchase Order History in the PO.

Goto ME23N (Display of the Purchase Order)

One Step Process:

Select the one Step check box and click on the save button.

The Remaining all the process is same

 Create the PO in ME21N

  Create Outbound Delivery in VL01N, VL10B, VL10D.

 Change the Outbound Delivery (i.e., Post Goods Issue in VL02N)

 After Posting the Goods Issue the Goods Receipt is created automatically with the
same document number which is generated for Post Goods issue.

Create the Purchase order in ME21N.

 Standard PO created under the number 4500000912.

Create the Outbound Delivery: (VL01N, VL10B, VL10D)

The creation of Outbound Delivery is same as explained for the Two-Step Process.

The Outbound Delivery Number – 80000365

Change the Outbound Delivery in VL02N (Post Goods Issue)

Replenishment Cross-Company 80000365 has been saved.

Now check the Purchase Order History in the PO.

Goto the Display mode of ME23N.

The Accounting Entries are:

For Receiving Company Code: 5000

BSX –> DR

WRX –> CR
For the Suppling Company Code: 9000

BSX –> CR

GBB –> DR

Next do Invoice Verification in MIRO and Billing in VF01.

Invoice Verification:
 Document no. 47 created.

Billing in VF01:
 Document 90000194 has been saved.

Now Goto the display mode of the Purchase Order in ME23N.