Stock Transfer Procedure for Cross-Company-Code Stock Transfer: A Complete Guide

Stock transfers between plants of different company codes are essential for businesses with multiple legal entities. These transfers ensure seamless inventory management, financial transparency, and compliance with accounting standards. This guide explains the various stock transfer procedures available, their features, and how they impact logistics, finance, and pricing. 

Stock Transfer Procedures for Cross-Company-Code Stock Transfer

1. One-Step, Plant-to-Plant Stock Transfer

Key Features:

• Immediate update in inventory records.
• No tracking of stock in transit.
• Suitable for short-distance transfers where transit monitoring is not necessary.

2. Two-Step, Plant-to-Plant Stock Transfer

Key Features:

• The first step posts stock as "in transit."
• The second step confirms receipt at the receiving plant.
• Allows better tracking and visibility of stock movement.
• Useful for long-distance or high-value stock transfers.

3. Stock Transport Order Without the Delivery Function

Key Features:

• No shipping activities like picking or packing are required.
• The system monitors stock movement between plants.
• Pricing is determined based on internal procurement data.

4. Stock Transport Order with the Delivery Function

Key Features:

• Shipping-related activities such as delivery planning, picking, and packing.
• Billing and invoice verification are included in the process.
• Improved control over stock movement.

5. Stock Transport Order with Delivery and Billing Document

Key Features:

• Shipping data determination: Enables better tracking of stock movement.
• Pricing execution: Works like a purchase order, with price determination based on internal records.
• Billing process: Pricing occurs as in a normal sales transaction.
• Financial postings: The stock transfer value is posted to a company code clearing account in both the issuing and receiving company codes.

Stock Transfer and Financial Impact

1. Posting to Company Code Clearing Accounts

• Issuing company code: A clearing account records the stock movement.
• Receiving company code: The clearing account ensures proper accounting of incoming stock.

2. Pricing and Invoice Verification

• Pricing is determined based on the purchasing info record or internal pricing conditions.
• When using the delivery function, billing takes place during invoice verification.

Benefits of Using Stock Transfer Orders for Cross-Company Transfers

Frequently Asked Questions (FAQs)

1. What is the difference between a stock transfer and a stock transport order?
A stock transfer is the physical movement of goods between locations, while a stock transport order is a documented process that records the transfer and enables tracking.

2. When should I use a one-step vs. two-step stock transfer?
Use a one-step transfer for short distances and when tracking in transit is not needed. Use a two-step transfer for longer distances or high-value items that require transit monitoring.

3. How does pricing work in stock transport orders?
Pricing in an STO follows internal procurement rules, often using the material's cost from an info record or price list.

4. What is a company code clearing account?
A company code clearing account is a temporary financial account used to balance stock transfers between different company codes.

5. Why should I use a stock transport order with the delivery function?
Using an STO with the delivery function ensures proper tracking, logistics integration, and financial accuracy for cross-company transfers.

6. Does stock transport order affect financial reporting?
Yes, STO transactions are reflected in financial statements, ensuring proper valuation and transparency in inventory management.

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