MM / P2Padvanced

MM Stock Transport Order Part 4: Intercompany STO — Billing and FI Integration

Key takeaway

Cross-company transfers: STO document type (e. g. NB) with delivery type NLCC, supplying company code as seller, intercompany billing (e. g. IV) to the receiving company, supplier invoice in the receiving company (manual or automatic via IDoc), pricing, valuation and reconciliation.

Explanation

📌 KEY POINTS
✅ Cross-company STO: receiving company orders from the supplying plant (internal supplier); delivery type NLCC.
✅ GI (643) and intercompany billing (e.g. IV) create revenue in the supplying company.
✅ The receiving company posts the supplier invoice (manual or automatic via EDI/IDoc).
✅ Transfer price comes from purchasing conditions (STO) and SD pricing (billing) — they must match.
⚠️ Mismatched STO price and billing price create permanent GR/IR differences.

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▶ WHERE WE ARE
Part 3 covered steps. Now cross-company finance.

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▶ 1. SETUP

Supplying plant's company as internal supplier; receiving plant as internal customer.
Document type NB, delivery NLCC.\n\n━━━━━━━━━━━━━━━━━━━━\n▶ 2. FLOW\n• STO → delivery → GI 643 → IV billing → GR 101 → supplier invoice.

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▶ 3. PRICING

Purchasing condition in STO = SD price in billing (transfer price).

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▶ 4. INVOICE AUTOMATION

IV output → IDoc → incoming invoice.

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▶ 5. RECONCILIATION

GR/IR and intercompany balances monthly.

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▶ STEP BY STEP

Create cross-company STO.
Deliver, GI, bill.
Post GR and supplier invoice; check GR/IR.

✅ CHECKPOINT: GR/IR clears and intercompany balances match.

Code example

ABAP Code

===== STEP 1: flow =====ME21N NB (supplier = internal supplier of supplying company) → VL10B NLCC → PGI 643 → VF01 billing IV → MIGO 101 → MIRO / IDoc invoice ===== STEP 2: pricing =====STO condition PB00 = SD transfer price (e.g. PR00/PI01 per design) → no price differences ===== STEP 3: reconciliation =====GR/IR per STO | intercompany receivables vs payables

Real project scenario

A cross-company STO completed physically, but GR/IR balances grew monthly: the STO price used an old info record, while billing used current transfer prices. Aligning conditions from one transfer price source and automating invoices via IDoc cleared differences.

Common mistakes

Different price sources.
Manual supplier invoices late.
Using UB for cross-company.
No reconciliation.
Missing internal customer/supplier data.

Best practices

One transfer price source.
Automate invoices.
Use correct document types.
Reconcile monthly.
Maintain internal partners.

Interview angle

Questions: "How does an intercompany STO work?", "Which documents are created?", "Why do GR/IR differences occur?"
Strong answer: NB/NLCC, 643, IV billing, supplier invoice automation, transfer price alignment, reconciliation.

Practice this lesson

Quick check

1. How can the receiving company's supplier invoice for a cross-company STO be automated?

2. A cross-company STO shows growing GR/IR differences. What is the most likely cause?

3. In a cross-company STO, which document creates revenue in the supplying company?

Interview questions

1. Your organization is implementing intercompany stock transport orders where goods sit in stock-in-transit for several weeks between plants. How would you design valuation classes and account determination to correctly reflect stock-in-transit value separately from unrestricted stock in each plant's balance sheet?

Answer it in your own words first, then compare.

2. A cross-company STO process shows GR/IR differences and late supplier invoices. How do you design intercompany STO billing and FI integration?