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232 CHAPTER 7 Inventory and Warehouse Management Processes

impact are identical to those associated with an STO without delivery. When
it uses a one step movement, only one material document is created, and the
materials are placed in unrestricted use at the receiving plant.

Demo 7.3: Stock transport order with delivery

Stock Transport Orders with Delivery and Billing

The third scenario involving STO includes both the delivery document (ship-
ping step) and the billing step from the fulfi llment process at the sending plant.
In addition, it includes the invoice verifi cation step from the procurement pro-
cess (see Chapter 4) at the receiving plant. This scenario is most appropriate
for inter-company transfers. Figure 7-7 illustrates this scenario with a two-step
procedure, although a one-step procedure could also be used. A stock transport
order is created at the receiving plant in response to a need to acquire materi-
als. In contrast to the previous two scenarios, a purchase price is included in
the STO based on pricing conditions and info records, as we discussed in the
Chapter 4. In response, the supplying plant then creates a delivery document
authorizing the shipment. As in the fulfi llment process, when the goods issue
is posted, the quantity designated as unrestricted use is reduced at the sup-
plying plant. In addition, material accounts are credited by the value of the
shipment, and the cost of goods sold account is debited. Corresponding material

Figure 7-7: Stock transport order with delivery and billing

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