Stock transfer Order....Different process

[Former Member]

Hi,

There are various types of STO specially if both the Plants are excisable and the material too is excisable

One follows the steps like

1. Create a STO

2. Then the issuing plant transfer the material using transfer posting with MT 351

3. Then excise invoice is created using J1IS

4. Then GR is done in the receiving plant

5. Finally capture and post the excise invoice using J1IEX

Another process is Using the SD route

1. Create a STO

2. Then using VL10B you create an OutBound Delivery

3. After that PGI is done using VL02N

4. Then you create a Billing document using VF01

5. After that an excise Invoice is created using J1IIN

6. Finally GR is done in the receiving end

Now my question is what are the different business scenarios where in we follow the different procedure.

[former_member187989]

Adding to replies,If material is excisable to be sent between 2 plants then tax invoice will be required for sending & receiving materials in respective plants.

Refer inventory management - special procurement -- stock transfer for steps.

[Former Member]

Can u provide me with any links which contains a proper documents with screenshots for both the process in details.

thanks

[former_member187965]

Hi Joe,

The selection of the process is totally depends on the Business requirement of the client. Normally, the SD route is preferred when the plants are in the different states and the sales pricing is important while creating the proforma invoice in VF01.

The J1IS route is preferred when there are very much transactions of STO and you want to shorten the STO process in terms of transactions in system.

Also the excise transaction types and hence the excise account determination also important in the process selection, as in J1IS the ETT will be OTHR and in J1IIN the ETT will be DLFC.

The decision is need to be taken by discussing with client team and by understanding the client requirement. The application of the process may vary from client to client.

[Former Member]

Hi Sailesh,

First of all for the SD route scenario, you mentioned that it is preferred if the plants are in different states is it compusory?

Secondly what if the plants are in the same state?

Now about the pricing, in our case it is maintained through MM route

there is only Base Price and Freight charges that is maintained through MEK1

which is automatically picked in the Condition tab

Is SD pricing needs to be configr ie mandatory?

The J1IS route is preferred when there are very much transactions of STO and you want to shorten the STO process in terms of transactions in system.

Can you elaborate on this what do you mean by much transaction of STO and what it means to shorten the process in terms of transaction?????

Now about the client requirement to approach by one of the methods

Can you provide me some example where in when to go by the SD route and when to go by the other method.

Regards

Joe

[former_member187965]

Hi Joe,

I already told you that the decision totally depends on the client business requirement. There is no as such thumb rule to decide the process.

It is not compulsory.

If the plants are in the same state, you can go with any of the process which is suitable to the client business.

SD STO pricing is only required when you use the SD router for STO.

I have seen many firms, where material is continuously moved from one plant to other for further processing and dispatch. In this case if you follow the SD route, it takes time to run all the transactions and the material gets stuck until the user completes all these transactions. So, J1IS route is preferred to have quick transactions and completion of the processes.

This is the reason, the process selection totally depends on the client business requirements. I hope, with above practical example the difference is clear to you.

Hope it helps .

[Former Member]

Thanks Shailesh for the brief explanation.

Now things are clear!!!!

Thanks again