Stock transport orders (STO) in SAP S/4HANA

A stock transport order (STO) moves material from one plant to another using SAP's purchasing flow, so the transfer is planned, trackable, and — between company codes — correctly valuated and invoiced. It is the controlled alternative to a plain transfer posting: instead of just rebooking stock, you get a document, a delivery, stock-in-transit visibility, and (where needed) billing.

What an STO is

An STO is a purchase-order-type document whose supplier is one of your own plants. Where a simple transfer posting (a single goods movement) just shifts stock between two storage locations, an STO models the full receiving-plant-orders-from-supplying-plant process — with separate goods issue and goods receipt steps, and the goods visible in transit in between. That makes it the right tool when material physically travels, when two plants need their own documents, or when company codes differ.

Intra-company vs cross-company

• Intra-company STO — both plants belong to the same company code. The stock moves, but there is no sale: no billing, just a goods issue at the supplying plant and a goods receipt at the receiving plant. The classic document type is UB.
• Cross-company STO — the plants belong to different company codes, so the transfer is effectively an internal sale. It runs as a purchase order against the supplying plant (document type NB) and triggers billing and an invoice between the two company codes, with the appropriate pricing.

The company-code relationship is the design decision that drives everything else (billing, pricing, accounts).

With or without delivery

An STO can run with an SD delivery or without one:

• With delivery — the supplying plant creates an outbound delivery (e.g. via VL10B), with picking, optional handling units, and shipping, then posts goods issue. This gives full logistics execution and is the usual choice when warehousing or transport is involved.
• Without delivery — goods issue is posted directly against the STO with a goods movement, a simpler flow for straightforward transfers.

Stock in transit

The value of the STO is the stock-in-transit concept: when the supplying plant posts goods issue, the stock leaves its unrestricted stock but does not yet belong to the receiving plant — it sits in transit, owned by the receiving plant but not yet available. Only when the receiving plant posts goods receipt does it become usable stock. This gives an honest, real-time picture of material that is on the road, which a plain transfer posting cannot.

Why it matters

STOs give procurement and logistics one controlled, auditable process for inter-plant supply: planned quantities and dates, in-transit visibility, clean valuation, and — across company codes — correct intercompany billing. They are foundational to multi-plant supply networks and to scenarios like plant-to-plant replenishment and returns.

Common questions

STO or a simple transfer posting? Use a transfer posting for a quick rebooking in the same location/plant with no transport; use an STO when material physically moves between plants, needs in-transit tracking, or crosses company codes.

What is the difference between document types UB and NB? UB is the intra-company STO (no billing); NB is the cross-company STO that runs as a purchase order and triggers intercompany billing.

What does stock in transit mean? Material that has left the supplying plant (goods issue posted) but not yet been received by the receiving plant — owned by the receiver, not yet available.

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Related: purchase contract management · lean services. Designing multi-plant supply in S/4HANA? Explore our SAP MM training.