Inter Plant Purchasing: Procedure Flow and Accounting ImpactIntroductionInter Plant Purchasing, where Plant A buys from Plant B, is a common internal stock transfer process in multi-plant organizations. This ensures efficient inventory management and cost optimization. In this guide, we’ll walk through the procedure flow, transaction codes, and accounting impacts of inter-plant purchasing using the SAP ERP system.Procedure Flow of Inter Plant PurchasingStep 1: Purchase Order Creation (Stock Transport Order - STO)Transaction Code: ME27The buying plant creates a Stock Transport Order (STO) using purchase order type UB. This document acts as a purchase order between the two plants. Step 2: Stock Transfer Posting to Transit (Supplying Plant)Transaction Code: MIGO_TRMovement Type: 351 The supplying plant receives the purchase order and issues the stock for transfer. The system records a transfer posting to stock in transit from unrestricted-use stock. Step 3: Goods Receipt at the Buying PlantTransaction Code: MIGO_GRThe buying plant receives the stock and posts a Goods Receipt (GR) for the purchase order. Inventory is updated accordingly in the buying plant. Accounting Entries in Inter Plant PurchasingWhen stock is transferred between plants, an accounting document is created at the time of transfer posting (Movement Type 351). Below is the typical accounting entry:
Price Difference AdjustmentIf the same material has a different valuation price in the two plants, a price difference entry is created.Example: Material Costing View
Accounting Posting
General Ledger (GL) Determination in SAPThe General Ledger (GL) Account Numbers for stock transfers are determined based on Material Valuation Class and Automatic Posting Configuration.Checking GL Account Assignment in SAPTransaction Code: OMWBNavigate to Account Assignment Click on the Description to check the relevant GL account numbers. Common Account Postings in Stock Transfers
ConclusionInter-plant purchasing in SAP involves creating a stock transport order, posting stock transfer, and recording goods receipt. The system ensures accurate inventory valuation and accounting postings. Understanding price differences and GL account assignments is essential for accurate financial reporting. Proper SAP configuration and adherence to process steps help streamline inter-plant purchases efficiently.
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