SAP Cross Company STO with Billing | Configuration Guide Part 2

 Configure Purchasing Document Type for Cross-Company STO | Configuration Guide [Part 2]

Step 1

In this Step, we define a custom Purchasing Document Type specifically for Cross-Company Stock Transport Orders (STO). This document type controls the overall behavior of the STO such as item category, number range, account assignment and more.

SPRO Navigation Path:

SPRO - Materials Management - Purchasing - Purchase Order - Set up stock transport order - Assign Document type, One-step Procedure, Underdelivery Tolerance

Step 2

Define Transfer Scenario – SD Delivery + MM Goods Receipt Flow

Cross-Company STO with billing, the Receiving Plant (Plant 1001) issues a Stock Transport Order to the Supplying Plant (Plant LU4), even though they belong to different company codes.

This process uses the standard PO Document Type NB and follows a two-step transfer scenario:

Transfer Process Overview:

Step 1: SD Outbound Delivery

• Supplying Plant processes an outbound delivery

• A delivery document is created with reference to the STO

• Delivery can be picked, packed, and posted as goods issue

Step 2: MM Goods Receipt (GR)

• Receiving Plant posts a Goods Receipt against the STO

• Inventory is updated, and intercompany invoice can be triggered (if billing is active)

Enter Below Details (Example):

Supplying Plant: LU4

Receiving Plant: 1001

Document Type: NB

Click on Save.

Step 3

Assign PO Document Type to Delivery Type for Supplying Plant

In this step, we configure the system to assign the PO Document Type NB to a Delivery Type NLCC for the Supplying Plant (LU4). This is a key setting that tells SAP to create an outbound delivery using the SD module when a Stock Transport Order is created.

SPRO Navigation Path

SPRO - Materials Management - Purchasing - Purchase Order - Set up stock transport order - Assign Delivery Type and Checking Rule

Configuration Overview

Document Type: NB

Supplying Plant: LU4

Delivery Type: NLCC

Checking Rule: B

Notes:

• NLCC is the standard delivery type used for Cross-Company STO with billing

• This setup triggers an SD delivery creation automatically from the supplying plant when the STO is saved or processed

Part 2 Summary

Cross Company STO – Purchasing & Delivery Configuration

In this second part of our Cross-Company STO with Billing guide, we focused on the critical purchasing and SD delivery configuration steps, including:

• Defining or using PO Document Type NB for STO

• Mapping the 2-step transfer process: SD Delivery and MM Goods Receipt

• Assigning the Supplying Plant and PO Document Type to Delivery Type NLCC

These steps ensure that when a Stock Transport Order is created, SAP can automatically trigger the SD delivery process from the Supplying Plant, setting the stage for intercompany billing and smooth goods movement.

Part 1 : SAP Cross Company STO with Billing | Configuration Guide Part 1

🔄 What’s Next?

 

Part 3 of this series | covering detailed STO customization settings — will be published soon.

🙌 Final Thoughts

This was Part 2 of the end-to-end guide for configuring Cross-Company STO with Billing.

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📢 Coming Up Next:

🔗 Part 3 – STO Delivery & Billing Configuration (Coming Soon...)