Stock Transfer

In a stock transfer process, we can transfer the material from one storage location to another, from one plant to another, or from one company code to another.

Stock transfers can be carried out at three different levels 

1. Stock transfer from one company code to another 
2. Stock transfer from one plant to another
3. Stock transfer from one storage location to another

 

Business Scenario

A business engaged in motor car production has two manufacturing plants. During production, the enterprise transfers many of the components from one plant to the other plant or from one storage location to another storage location based on the demand and available quantity to reduce the inventory moving cost.

 

There are two different ways to transfer the material: 

1.  One-step stock transfer 
2. Two-step stock transfer 

Now we’ll discuss both of these processes in the following sections

 

 

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One-step stock transfer

The one-step stock transfer process transfers the stock/material from one plant to another plant or from one storage location to another storage location in a single step. Hence, a single transaction results in goods issued (from the supplying location) and goods receipt (into the receiving area). The one-step stock transfer is mostly used to transfer stock from one storage location to another storage location within the same plant as these are located in the same city. As stocks/materials are moved within the same plant, the stock valuation won’t be changed. So no accounting document is generated. The one-step stock transfer may also be used to transfer stock/material from one plant to another plant when they are located nearby to each other. The one-step stock transfer procedure doesn’t involve stock/material in transit (i.e. in transportation) and materials are posted directly to unrestricted-use stock in the receiving plant. wherever the valuation area is at the plant level, the material transfer from one plant to another plant will generate an accounting document. SevenMentor Training Institute is one of most widely recognized SAP training in Pune that imparts knowledge and skill-based SAP Course in Pune

 

Process steps

Whenever we want to carry out the stock transfer from one storage location to another storage location within the same plant, we can use Transaction MIGO_TR (i.e. in MIGO we use transfer posting with reference to others). We can enter the material and destination storage locations and also enter movement type “311” and post the transaction.

 

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Furthermore, we may want to transfer material from one plant to another plant. We can also do it using the one-step stock transfer procedure. We can use Transaction MIGO_TR (i.e. in MIGO we use transfer posting with reference to others). We can enter the material from and destination plants and also enter movement type “301” and save the transaction. The system will move the stock quantities to the target storage location/plant. We can check stock quantities via transaction MMBE.

A stock transfer between two different plants will generate an accounting document whenever the valuation area is at the plant level.

 

Two-step stock transfer

The two-step stock transfer process transfers the stock/material from one plant to another plant which is located at different locations in two steps. 

In a two-step stock transfer process, materials are issued from one issuing location. The material will remain in transit (i.e. in transportation) until the materials are received at the receiving location. If the valuation area is at the plant level then material valuation takes place.

 

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Registration Link: Click Here!

 

 

Process steps

To transfer the material via the two-step procedure, we can use transaction MIGO_TR (i.e. in MIGO we use transfer posting with reference to others) and we can fill in the fields for material, quantity, from plant and plant and enter movement type “303” (i.e. plant to plant transfer stock removal). Subsequently, we post this transaction, and the material is removed from the issuing/supplying plant and will display as stock in transit ( i.e. in transportation). The SAP system will generate an accounting document wherever the valuation area is at the plant level. After the material is received in the receiving location (i.e. receiving plant), we have to post the transaction with movement type “305” (transfer posting plant to plant—place in storage location). 

 

Author:-

Prahlad Pawar

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