SAP Cross Company STO with Billing | Configuration Guide Part 3

 Shipping Point Determination in Cross-Company STO | Configuration Guide [Part 3]

In this part of the configuration, focused on how SAP determines the Shipping Point, a crucial element that drives outbound delivery creation from the supplying plant in an STO process.

Shipping Point is determined based on three key factors, all of which must align correctly in your master data and configuration. Let’s explore them one by one with the help of real-time screenshots.

Step - 1

Shipping Condition "09 – Pickup", which is maintained in the Sales Area Data (Shipping tab) of the customer master. This value is one of the key inputs used during shipping point determination in a Cross-Company Stock Transport Order (STO).

It reflects how the goods will be shipped — in this case, picked up by the receiving plant or customer.

Step - 2

In this step, we assign the Sales Organization, Distribution Channel, and Plant to define the sales area responsible for processing outbound deliveries and billing in the Cross-Company Stock Transport Order scenario. This configuration ensures proper linkage between logistics and sales modules, allowing the supplying plant to behave like a delivering sales entity.

This setting is especially critical when the supplying plant is tied to a different company code and needs to generate an outbound delivery followed by an intercompany invoice.

Refer to the screenshot given below.

Step - 3

Assigning a shipping point to the supplying plant is a crucial configuration in SAP Cross-Company STO. This step ensures that the logistics execution process knows from which shipping point goods will be dispatched. The assignment is based on shipping conditions, loading group, and delivering plant, enabling automatic shipping point determination during the PO-to-delivery process.

Refer to the screenshot given below for the actual SAP configuration screen.

Step - 4

In the Cross-Company STO configuration process, assigning a Shipping Point to a Plant is a crucial step. This setting tells SAP which shipping point is responsible for handling outbound deliveries from the supplying plant.

Shipping point determination is influenced by three key factors:

• Shipping condition – Defined in the customer master for the receiving plant

• Loading group – Maintained in the material master for the sales: general/plant view

• Supplying plant – The physical location from where goods are shipped

By correctly assigning the shipping point to the supplying plant, SAP ensures accurate delivery processing, optimized scheduling and smooth logistics execution.

Refer to the SPRO navigation path screenshot given below to configure this setting.

Part 3 Summary: Shipping Point Determination in Cross-Company STO

In this part, I explored how SAP determines the Shipping Point during a Cross-Company Stock Transport Order (STO) process. We discussed the three critical factors that influence this determination:

• Shipping Condition – Maintained in the Customer Master, representing how the goods should be delivered (e.g., pickup or delivery).

• Loading Group – Defined in the Material Master (Sales: General/Plant view) indicating how the goods are loaded.

• Supplying Plant – The plant responsible for shipping the material.

Additionally, we navigated through key configuration steps, such as:

• Assigning Sales Organization – Distribution Channel – Plant

• Defining and Assigning Shipping Points

• Linking Shipping Points to Supplying Plants

These settings ensure that the system can accurately propose a shipping point during delivery creation in the STO flow.

Proper configuration of shipping point determination is essential for automated and error-free outbound delivery processing in cross-company procurement.

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

Part 2 : SAP Cross Company STO with Billing | Configuration Guide Part 2

🔄 What’s Next?

 

Part 4 of this series | covering detailed STO customization settings — will be published soon.

🙌 Final Thoughts

This was Part 3 of the end-to-end guide for configuring Cross-Company STO with Billing.

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🔗 Part 4 – STO Delivery & Billing Configuration (Coming Soon...)