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How does SAP MM stock transport order help track goods shipment?

Stock transport order in SAP MM helps you transfer, track and monitor goods movement between supplying and receiving plants.

Companies transporting goods among their own warehouses, plants or distribution centers can maintain complete visibility...

of goods movement with stock transport order, a feature of SAP Materials Management (MM). Stock transport order is a special procurement type that a warehouse supervisor uses to transfer a company's goods from one warehouse or plant to another.

The warehouse supervisor creates a stock transport order in the SAP system and maintains details of the plant supplying the goods, the goods' transfer quantity and the receiving plant. The supplying plant's warehouse supervisor issues the goods with reference to the stock transport order. The issued goods are shown in transit (see Figure 1) until they reach their destination. Once the goods reach the receiving plant, the warehouse supervisor accepts receipt of the goods with reference to the same stock transport order. This ensures three-dimensional goods' visibility -- from issuance, in transit, to receipt.

Figure 1 shows the stock in transit for material 400-300 for stock transport order 4500017351. Here, the supplying plant code is 1100 and the receiving plant code is 1400. Because material 400-300 (two PCs) is in transit, the system shows this information, thereby helping the company keep track of its goods.

Figure 1. Stock in transit between supplying and receiving plants.

In some companies, a stock transport requisition precedes a stock transport order. A stock transport requisition, a request from the receiving plant for the goods required, is sent to the supplying plant. The warehouse supervisor converts the stock transport requisition into a stock transport order.

Using a stock transport order ensures that transportation and other allied costs, such as goods' loading or unloading charges, are covered. In such a business scenario, the company engages a freight vendor to transport goods between two plants and pays the freight vendor. The freight charges become part of a material's cost. For example, a material in one plant is valuated at $100. When transported to another plant, its value becomes $110 to account for $10 in transportation costs.

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