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Inventory Management 229

Figure 7-4: Plant-to-plant transfer

Demo 7.1: Plant-to-plant stock transfer (1 step)

Company-Code-to-Company-Code Transfer
A movement of materials between two plants in different company codes
is called a company code-to-company code transfer. This type of transfer
can be accomplished via both the one-step and two-step procedures. In both
cases the movements are very similar to plant-to-plant transfers. The obvious
difference is that, in this scenario, the two plants are located in different com-
pany codes. Consequently, two FI documents are created, one for each company
code. One line item is for the material account, and the other (offsetting) line
item is for a clearing account created to accommodate such a transfer.

STOCK TRANSPORT ORDERS
The plant-to-plant movements discussed above are simple, straightforward
ways of moving materials. However, they have limitations. Among their major
limitations are the following:
• They cannot take into account the cost of transporting materials
between plants.
• They cannot track the progress of the transfer.
• Valuation can only be based on the book value of the materials at
the sending plant and not a negotiated value or price between plants.

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