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8/10/2019 Returns STO

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R etur ns Stock T ransfer Order – Overviewand Implementation in S AP

Introduction

STO – Stock T ransport Order is vastly used in today’s global business scenario. An example would

be where stock is purchased from V endor and received into one ore more plants. From each of

these plants the stock can then be directed to many other plants based on demands.

In the chart below Plant Y places an order on Vendor A. Vendor A supplies the product to Plant Y. Now Plant Y

receives an order from Plant X. This is called the Stock Transport Order where the goods are moved from PlantY to Plant X. Once Plant X receives the goods, it receives an invoice from Plant Y. This is the intercompany

invoice.

Return STO is exactly the opposite of STO. Here the flow of goods and the payment is in the oppositedirection. This is primarily used to return goods into the original plant. Some of the occasions where this couldbe used are

1. 1. 1. To consolidate EOL products at a single location2. To return excess or damaged goods back to vendor through the original PO

The below table gives an overall summary highlighting the difference between a STO and a Return STO w.r.torganization, inventory movement, stock movement and financial postings.

Standard STO created at

Plant x

Return STO created at

Plant X



R etur ns Stock T ransfer Order – Overview

Org values Vendor = P00YY

Plant = X

Vendor = P00YY

Plant = X

Physical movement From Y to X From X to Y

DN creation & system

Movement @ PGI/R

Created at Plant Y

Inventory decremented at Y

Created at Plant Y

Inventory incremented at Y

STO GR/GI &

System movement

STO GR > Inventory Incremented

at X

STO GI > Inventory decremented

at X

Financial postings Inter-co AP at Co.Code X (KR)Inter-co invoice at Co Code Y (IV)

Vendor debit memo at X (KG)Internal credit memo in Y (IG)

Process Flow

Given below is a generic flow that a standard return STO would be following.




• • When there is a requirement to return goods from Plant X to Plant Y, a return STO iscreated on plant ‘X’ with vendor of plant ‘Y’.

• Now a delivery is created at Plant ‘Y’ to get the goods from plant ‘X’. • Once the goods are shipped from Plant ‘X’, the return STO GR is done. This will r esult

in reduction on inventory at plant ‘X’. • Once the goods arrive at Plant ‘Y’, the STO DN GR is done. This will result in inventory

increment at Plant ‘Y’. • Now Plant ‘Y’ raises an internal credit memo crediting for the return and Plant ‘Y’

balances this with a debit memo.

The number of human touch points can be reduced by automation through the use of 856SC, 861 EDI signals.




SAP Configuration to Implement return STO

This section gives a step-by-step procedure of configuring return STO using standard SAP.

Note: The presumption to this section is that a STO model already exists and hence configurations for STO arenot covered.

Following are the standard entities available in SAP that we would be using during this configuration process

PO Type: NBDN Type: NCR

Item Category Type: NCRNVendor Credit Memo: KG

Step 1: Enabling return for STO.

In order for a plant to be capable of receiving return STO, a DN type has to be assigned to the STO doc typ.

SPRO > Materials Management > Purchasing > Purchase Order > Returns Order > Store return / Plant to Plant




Here we are enabling plant ‘64PP’ to receive return STO and hence assigning standard STO r etur n

type ‘NCR’. Without this entry, if you try to create a return STO you will receive an error message

indicating no delivery type is assigned for the PO type. Please note that for a return STO identified

by the Partner as well as the return flag highlighted below on t-code ME23N




Step 2: Assign item category for return Deliveries

SAP has a standard return STO item category ‘NCRN’.

This is assigned to our return delivery type ‘NCR’ and all the item category groups that are part of

the material master. This can be done via the below path

SPRO>Logistics Execution>Deliveries>Define Item Category Determination in Deliveries




Step 3: Maintain Copy Control for deliveries

Copy control between STO and DN needs to be maintained to copy the relevant information. This can be done

via the below path.

SPRO>Logistics Execution>Shipping>Copying Control>Specify Copy Control for Deliveries




Step 4: Activate Cost determination for item category

Now in order for the price/ cost details to be picked up for crediting the returning entity, we need to enable costdetermination for those item categories that are being used for returns. This can be done via the below path

SPRO>Sales and Distribution >Basic Functions > Pricing > Pricing Control > Define Pricing by Item Category

Here we have activated the cost determination for ‘NCRN’ item categor y.

Step 5: Deactivate Availability check for return STO item

Category




This is one of the important setup required. Basically SAP does not differentiate between return and forward

STO per their program design. As a result, when a return STO is created it will do an availability check atvendor plant instead of the return at the time of delivery creation. This is incorrect as rightfully, the return isoriginating at the return plant and availability check needs to be carried out at return plant. To over come

this, SAP has advised to turn off availability check for the return STO item categories. Please refer SAP note

329775 for further information.

The availability check for the item category can be turned off via the following path.

SPRO>Logistics Execution>Shipping>Basic Shipping Functions>Availability Check and Transfer of

Requirement>Availability Check>Determine procedure for Each Delivery Item Category




Step 6: Finance Configuration

Inter Company AP posting needs to be set up via t.code OBCB for the following combination.

Partner type ‘LI’,

Partner No = Vendor Customer number,Company code to which returning plant belongs to

The above configurations will apply for each of the item categories that are relevant for return STO. With EDI,one can automate the return STO GR process and DN PGR process. There may be enhancements requiredto the 940, 856SC and 861 EDI messages particularly to those segments carrying source and destination

information as the source and destination gets swapped here when compared to the forward STO process.




References

1. 1. SAP Note 329775: Availability Check for Plant returns delivery not deactivated

https://service.sap.com/sap/support/notes/329775

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