Cross Company STO with Billing in SAP | Step-by-Step Configuration Guide [Part 1]
Introduction
Setting up a Cross-Company Stock Transport Order with Billing in SAP involves multiple configuration steps across MM and SD modules. Unlike intra-company STOs, cross-company STOs include intercompany billing, meaning the supplying company will issue an invoice to the receiving company.
This 4-part guide will walk you through the entire setup, starting with Part 1 – Configuration. Each step is explained in a practical sequence with supporting screenshots to make it easy for learners to follow.
Step-by-Step Configuration
Step - 1
This flow chart shows the organizational structure for a Cross Company STO with Billing where two different controlling areas are involved. The supplying company is linked to a Plant, Sales Organization, Distribution Channel and Division, while the receiving company is linked to a Purchasing Organization and its respective plant.
Step - 2
In this step, we configure the Supplying Plant by assigning it to the correct sales area. This is required to enable intercompany billing and delivery processing in a Cross-Company STO scenario.
SPRO Navigation Path:
SPRO → Materials Management → Purchasing → Purchase Order → Set up Stock Transport Order → Define Shipping Data for Plants
you need to link:
Sales Organization : IN49
Distribution Channel : 01
Division : 00
to the Supplying Plant.
Step - 3
In this step, we verify and maintain the Division in the Material Master for the sales area used in the Cross-Company STO process.
The material must be extended to the same Sales Org / Dist. Channel / Division used in supplying plant configuration.
Material Master Check
Transaction: MM03
Select material
Go to Sales: Sales Org 1 view
Ensure correct Sales Org, Distribution Channel, and Division are maintained.
Go to Sales: Sales Org 2 view
Ensure correct Item Category Group is maintained.
Step - 4
In this step, we maintain the Loading Group for the Supplying Plant in the Material Master, under the Sales: General/Plant view. This setting is essential for the system to determine the correct Shipping Point during outbound delivery creation in a Cross-Company STO scenario.
Steps in Material Master (MM03):
Transaction: MM03
Select the material
Ensure Correct plant and loading group maintained, if not got to transaction MM02 and maintain
Go to Sales: General/Plant view
Supplying Plant : LU4
Loading Group : 0001
Ensure the plant belongs to the sales area assigned in previous steps.
Step - 5
In this step, we ensure that the Receiving Plant is extended in the Material Master with Purchasing Data. This is necessary so the system can process the Stock Transport Order (STO) correctly.
Step - 6
In this step, we ensure that Customer Master (created for the Receiving Plant) is extended with the Sales Area belonging to the Supplying Company Code. Screenshot highlights this mapping — showing the customer assigned to the receiving plant, and the supplying plant’s Sales Org, Distribution Channel and Division.
How to Extend in Customer Master
Transaction: XD02 (Change Customer Centrally)
Enter the customer : 1400000
Company Code : IN49
Enter the Sales Area of the Supplying Company
Sales Org: e.g., IN49
Distribution Channel: e.g., 01
Division: e.g., 00
Step - 7
Maintain Company Code and Shipping Data in Customer Master for Supplying Company
This step ensures the Receiving Plant’s customer is fully configured in the Customer Master, specifically:
- Extended to the Supplying Company Code
- Maintained with correct Shipping Conditions in the Shipping View, required for Shipping Point Determination
These two setups are crucial for successful outbound delivery and intercompany billing.
Extend Customer to Supplying Company Code
Transaction: XD02
Enter the Receiving Plant's customer number : 1400000
Select the Supplying Company Code : IN49
Maintain
Reconciliation Account : 1500100
Sort Key : 001
Cash mgmt group : A1
Tick Open Item Management if required
Note : Without company code extension, you’ll get accounting errors during billing.
Maintain Shipping Conditions in Sales Area View
In XD02, go to:
Sales Area Data → Shipping Tab
Ensure:
Shipping Conditions are maintained : 02
Step - 8
Create Vendor for Supplying Plant in Receiving Company Code and Purchasing Org
In this step, you need to create a vendor master for the Supplying Plant, assigning it to the Receiving Company Code and Purchasing Organization. This enables the receiving plant to raise a Stock Transport Order treating the supplying plant as an external vendor.
XK02 transaction screen for vendor maintenance
Vendor assignment highlighting that it must be created under the Receiving Company Code.
Step - 9
Add Purchasing Data and Link Vendor to Supplying Plant
In this step, you’ll complete the vendor master setup by:
Adding Purchasing Data for the Receiving Plant’s Purchasing Org
Linking the vendor (which represents the supplying plant) using the “Add Purchasing Data” option from the Extras dropdown in XK02
Vendor maintenance screen with Extras > Add Purchasing Data highlighted.
Linking the vendor to the Supplying Plant
Part 1 Summary
Cross Company STO Configuration – Supplying & Receiving Plant Setup
In this first part of the Cross-Company STO with Billing series, we covered the end-to-end master data and configuration steps required before initiating STO transactions between plants belonging to different company codes. This included:
- Setting up the organizational structure : Controlling Areas, Company Codes, Plants, Sales Org, Purchasing Org.
- Defining Shipping Data for both Supplying and Receiving Plants.
- Extending Material Master and Customer Master for Sales & Purchasing views.
- Maintaining the correct Item Category Group, Shipping Point Determination and Reconciliation Accounts.
- Creating and linking Customer–Vendor Master Data between the two companies.
These foundational steps ensure that the MM-SD integration is properly configured for intercompany delivery and billing processes to function without errors.
🔄 What’s Next?
Part 2 of this series | covering detailed STO customization settings — will be published soon.
🙌 Final Thoughts
This was Part 1 of the end-to-end guide for configuring Cross-Company STO with Billing.
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📢 Coming Up Next:
🔗 Part 2 – STO Delivery & Billing Configuration (Coming Soon...)
