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Stock Transfer Vs Transfer Posting in SAP MM

Stock transfer

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341 views6 pages

Stock Transfer Vs Transfer Posting in SAP MM

Stock transfer

Uploaded by

mike.jacobi55
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Stock Transfer vs.

Transfer
Posting in SAP MM
1. Introduction to Stock Transfer and Transfer Posting

In SAP Materials Management (MM), Stock Transfer and Transfer


Posting are crucial for material movement management within or
across locations. Stock Transfer physically moves inventory between
storage locations, plants, or warehouses, while Transfer Posting is an
accounting movement that changes the status of materials (e.g.,
from quality inspection to unrestricted) without physically moving
the stock.

2. Stock Transfer in SAP MM

Stock Transfer is a process that involves the physical movement of


materials between different locations, which could include storage
locations within the same plant, different plants, or even between
company codes. This process affects inventory quantity and can
affect valuation based on transfer types.

2.1 Key Features of Stock Transfer

 Physical Movement of Stock: Involves the actual movement of


goods from one location to another.
 Transfer Types: Can be carried out between storage locations,
plants, or company codes.

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 Three-Step Process (for
intercompany): Usually includes
goods issue, transit posting, and goods receipt for multi-
location transfers.
 Impact on Valuation: Depending on whether the transfer is
within the same company or across company codes, inventory
valuation may be affected.

2.2 Benefits of Stock Transfer

 Inventory Management: Enables efficient redistribution of


stock based on demand and supply within different locations.
 Cost Efficiency: Reduces overstocking and stockouts by moving
inventory where it’s most needed.
 Enhanced Tracking: Allows for comprehensive tracking of
inventory in transit and at destination.

3. Transfer Posting in SAP MM

Transfer Posting is a process that changes the stock status or stock


type of materials without physically moving them. Common transfer
postings include changes between unrestricted, blocked, and quality
inspection stock statuses.

3.1 Key Features of Transfer Posting

 Stock Status Change: Alters the classification of stock (e.g.,


from quality inspection to unrestricted use).
 No Physical Movement: The material remains in the same
physical location; only the status or type changes.

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 One-Step Process: Typically
requires only a single posting to
reflect the change in the system.
 Inventory Valuation Impact: Generally has minimal impact on
inventory valuation, though it affects material availability.

3.2 Benefits of Transfer Posting

 Operational Flexibility: Allows for quick status changes to make


materials available for use or inspection.
 Reduced Paperwork: Simplifies processes by only requiring a
status update rather than a full logistics process.
 Improved Inventory Accuracy: Keeps stock classification
accurate, supporting better planning and resource allocation.

4. Comparison: Stock Transfer vs. Transfer Posting


Aspect Stock Transfer Transfer Posting
Purpose Physical movement of Change in stock
stock between locations status without physical
movement
Physical Yes, materials are No, materials remain
Movement moved between storage in the same location
locations
Stock Affects stock quantity at Affects stock type or
Impact source and destination status only
Steps Generally involves Typically a single
Involved goods issue, in-transit, and posting
goods receipt
Impact on May impact valuation if Minimal impact on
Valuation intercompany or cross- valuation

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plant
Document Stock Transfer Order Transfer Posting
Type document
Use Cases Replenishment, Status update,
interplant transfer quality release,
consumption changes
SAP MIGO (Goods MB1B, MIGO for
Transactions Movement), MB1B stock status changes
(Transfer Posting)

5. Best Practices

5.1 Best Practices for Stock Transfer

 Plan and Track Movements: Use SAP MM’s stock transport


orders (STOs) for clear tracking and control.
 Optimize Transfer Routes: Minimize movement times and costs
by planning efficient transfer routes.
 Regular Inventory Reconciliation: Ensure frequent
reconciliations to verify actual vs. system stock.

5.2 Best Practices for Transfer Posting

 Use Quality Inspections: For products needing quality checks,


set up transfer postings from quality inspection to unrestricted
only after inspection is complete.
 Automate Status Updates: Use automated status update rules
to streamline workflows and reduce manual errors.

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 Clear Documentation: Maintain a
clear record of all transfer
postings for auditing and accuracy in stock reporting.

6. Conclusion

Both Stock Transfer and Transfer Posting in SAP MM serve


essential roles in inventory and material management. While Stock
Transfer physically moves materials to optimize stock distribution,
Transfer Posting focuses on updating the material status to reflect
operational needs. Using these processes effectively enhances
operational flexibility, stock visibility, and overall inventory accuracy
within an organization.

7. Additional Resources

 SAP MM Stock Transfer Documentation: Comprehensive guides


on creating stock transfer orders and managing inventory
transit.
 SAP Transfer Posting Guidelines: Detailed steps for setting up
and executing transfer postings for inventory status
management.

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Disclaimer

© Copyright TagSkills. The copyright in this


work is vested in TagSkills. Please note and
abide by copyright laws. This presentation is
for educational purposes only, all logos,
photos, and information, etc used in this
Presentation is the property of TagSkills. SAP
is a registered trademark of SAP AG in
Germany and many other countries. We are
NOT ASSOCIATED with SAP.

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