Configure Intercompany Stock Transport Order

Explain STO.
STO is Stock Transport order. It is used for intercompany transfer of goods. Plant to
plant transfer and even transferring raw material to Third party contractors (Job
Work).
The Process is you create a STO do delivery against the STO and create a Billing
Document against the STO.
How to configure the inter-company Stock Transport Order? - Prassee
Material should exist in both the plants (Delivering & Ordering),
Internal customer should be assigned to the ordering plant (MM -> Purchasing ->
Purchase Order -> Setup stock transport order -> assign the internal customer to the
ordering plant and assign the Sales area of the internal customer.
T-code : OMGN

Assign its Sales area to the delivering plant

Assign the document type and Delivery type NB and NLCC
Assign the Supplying plant --> Receiving Plant --> NB

Take the delivering plant and assign the sales area.

Vendor master has to be created and assaign the supply source ( Delivering Plant).
Create a puchase order ME21N ---> Save
Delivery VL10 G ---> Calculation rule (appropriate) --> Assaign the purchase order
number here and execute.
Select the Delivery creation line and do the back ground process.
Start the log display and see the delivery document number by the documents button
Goto VL02N --> do picking and PGI --> Then do the MIGO with respect to the
delivery document.
Billing (Intercompany pricing conditions should be set).

Configuring Intercompany Billing

How to configure Inter Company Billing
INTERCOMPANY BILLING
Business case: - Customer orders goods to company code/Sales organization A
(Eg.4211/4211). Sales org 4211 will accept and punch the order in the system with
sold to party as end customer code in the system. Company code/sales org B
(Eg.4436) will deliver the goods to end customer and raise an inter-company billing
on 4211 with reference to delivery. This can happen only after 4211 raises invoice to
his end customer to whom the material has been delivered by 4436.
SPRO Customization required:1. Assign plant of delivering company code (Eg.SI81) to sales org/distribution
channel combination of ordering company code (Eg.4211/RT)
2. Maintain intercom any billing type as IV for sales document type OR
3. Assign Organizational Units By Plant (Eg.SI81/4211/RT/11)
4.Define Internal Customer Number By Sales Organization (Eg.4436 will create
customer master for 4211 company code and that number will be maintained in this
relationship:-4211/231)
5. Automatic posting to vendor account (Optional)
6. Maintain pricing procedure determination for 4211/RT/A/1/RVAA01-For customer
sales and billing
Maintain pricing procedure determination for 4436/RT/A/1/ICAA01-For intercompany billing
Master data to be maintained:1. Create end customer master in company code/sales org 4211/RT/11
2. Create customer master for 4211 company code/sales org in 4436/RT/11
3. Maintain PR00 as price for end customer-Active in RVAA01
4. Maintain PI01 as price which has to be paid to 4436-Statistical in RVAA01
5. Maintain IV01 as inter-company Price-Active in ICAA01
Process:1. Create OR with sold to party as end customer.
2. Plant to be selected is delivering plant belonging to different company code. With
this selection system will treat this order as inter-company sales.
3. Pricing procedure is RVAA01
4. With reference to this order delivery will be created from the delivering plant and

post the goods issue for this delivery.

5. Ordering sales org will create billing document F2 with reference to delivery for
end customer.
6. Delivering sales org will create inter-company billing IV with reference to delivery
document.
A company arranges direct delivery of the goods to the customer from the stocks of
another company belonging to the same corporate group. To put in simple terms,
Company code A orders goods through its sales organization A from Plant B
belonging to Company code B. It is imperative that both Plants A & B should have
the material. In other words, the material is created for both the Plants A & B + their
respective storage locations.
Sales Organizations and Plants are uniquely assigned to Company codes. It is not
possible to assign either a plant or a sales organization to more than one company
code.
Sales organizations and plants assigned to each other need not belong to the same
company code.
In other terms, a plant belonging to Company code A & assigned to Sales
Organization A can also be assigned to Sales Organization B of Company Code B.
This enables cross company sales.
PARTIES INVOLVED
1) End Customer 2) Ordering Company code 3) Supplying Company Code.
End customer:
Customer who orders goods from the ordering company code.
Ordering Company Code:
Which orders goods from Plant belonging to Supplying Company code through its
sales organization and bills the end customer.
Supplying Company Code: Supplies goods from its plant to the end customer
specified by the ordering company code and bill the ordering company code.
CONFIGURATION SETTINGS
Assign Delivery Plant of the supplying company code to Sales Org + Distribution
channel of the Ordering company code in the Enterprise Structure.

DEFINE ORDER TYPES FOR INTERCOMPNY BILLING:

Menu path: IMG/ SD/Billing/Intercompany Billing/Define Order Types for
Intercompany billing
Assign Organizational units by Plant:
Menu Path: IMG/ SD/Billing/Intercompany Billing/Assign Organizational units by
Plant.
Define Internal Customer Number By Sales Organization:
Menu Path: IMG/ SD / Billing/ Intercompany Billing/ Define Internal Customer
Number By Sales Organization:
Creating / Showing Ordering Sales Organization as Internal Customer for Supplying
Company code:
Transaction Code: XD01
The ordering sales organization is represented as Internal customer of Supplying
company code.
We need to create customer master in Account Group Sold to Party and maintain
minimum required financial & Sales Area data.
This internal customer number has to be assigned to the ordering sales organization.
Hence, the system automatically picks up this Internal customer number whenever
there is Intercompany billing.
PRICING:
We need to maintain two pricing procedures RVAA01 & ICAA01. Pricing procedure
RVAA01 represents condition type PR00 & any other discounts or surcharges that are
meant for end customer.
We assign Pricing procedure RVAA01 to combination of Sales area (Of Ordering
company code) + Customer Pricing Procedure + Document Pricing Procedure of Sales
document type.
This pricing Procedure (RVAA01) is determined both at Sales Order level & Billing
processing for the end customer.
We maintain PR00 condition type to represent the ordering company codes price to
the end customer.
Condition records for PR00 are maintained using organizational elements of Ordering

company code, end customer & the Material.

Eg: Sales Org. of Ordering company code + End customer + Material.
We also need to maintain PI01 condition type to represent costs to Ordering company
code (in other words revenue to supplying company code). It is statistical condition
type & meant for information purpose only.
Condition records for PI01 are created with the following key combination:
Ordering sales Org + Supplying Plant + Material
Pricing Procedure ICAA01is determined at Intercompany billing processing level.
Pricing Procedure ICAA01 Pricing Procedure for Inter company billing is assigned
to the combination of:
1) Sales Area (of supplying company code) + Document pricing Procedure of Billing
document type IV + Customer Pricing Procedure of the Internal customer.
Pricing Procedure ICAA01 has condition type IV01 that represents revenues for
Supplying company code in the intercompany billing.
PR00 condition type also appears in Intercompany billing document. It is for
information purposes only and does not have bearing on the value of the document.
PI01 represented under pricing procedure RVAA01 is reference condition type for
IV01 and the same is defined in the condition type IV01. Due to this these two
condition types represent same value.
The condition type IV01 in intercompany billing document represents revenue to the
Supplying Company. But its corresponding condition type PI01 in the billing
document to the end customer is shown as a statistical item meant for information
purposes.
Condition Type VPRS in the intercompany-billing document indicates cost to the
supplying company code.
The use of two different condition types in Intercompany billing is necessary to
ensure that data is transmitted correctly to the financial statement (Component COPA).