ERPTwin
643101MMME21NVL10Badvanced

Intercompany Stock Transport Order: Delivery (NLCC), Goods Issue (643), Intercompany Billing (IV) and Receipt

Stock moves between plants of two different company codes, so it is a sale and a purchase: the receiving company orders with an STO, the supplying company ships it with an intercompany delivery and goods issue (643), bills the transfer price with an intercompany invoice (IV), and the receiving company posts the receipt and the supplier invoice.

Educational content. SAP behaviour varies by configuration and release. Spotted something off? Report it.

Digital twin

Docs
SAP DOCUMENTSVisualization of Intercompany Stock Transport Order: Delivery (NLCC), Goods Issue (643), Intercompany Billing (IV) and Receipt. All information shown in the scene is also available in the caption and the panels next to it.
Demo data

01Receiving company orders

Plant 2100 orders 50 EA from plant 1000 at ₹1,500 — a purchase order with a supplying plant instead of a vendor.

Business scenario

Demo Components Pvt. Ltd. (company code 2000, plant 2100) needs 50 EA of FG-2000 from Demo Manufacturing (company code 1000, plant 1000). The agreed transfer price is ₹1,500 per EA; plant 1000 values the goods at ₹1,200.

All companies, numbers and documents are fictional demo data.

Step-by-step flow

  1. 01

    Receiving company orders open in twin

    Plant 2100 orders 50 EA from plant 1000 at ₹1,500 — a purchase order with a supplying plant instead of a vendor.

    The supplying plant is linked to an internal supplier, and the receiving plant to an internal customer, so SD and MM can treat the transfer as a sale and a purchase.

  2. 02

    Intercompany delivery and goods issue (643) open in twin

    Delivery type NLCC; goods issue 643: plant 1000 stock 200 → 150 EA. Company 1000 posts cost of goods sold at ₹1,200.

    Compare with 641 (same company), which keeps the stock in transit in the receiving plant. Here the goods leave the supplying company's books.

  3. 03

    Goods travel between companies open in twin

    The truck carries the goods to plant 2100.

    Nothing is posted while the goods travel in this demo.

  4. 04

    How is the transfer paid for? open in twin

    The two companies are separate legal entities. How does company 1000 get paid?

    Each company must record its side: revenue and receivable, or inventory and payable.

  5. 05

    Two sets of books, one side missing open in twin

    Without the IV invoice, company 1000 has cost of goods sold but no revenue, and company 2000 has GR/IR that never clears.

    Tax, statutory accounts and group consolidation all rely on the intercompany invoice.

  6. 06

    Intercompany invoice (IV) open in twin

    Company 1000 bills ₹75,000 to company 2000: intercompany receivable and revenue.

    The supplying company now shows a margin of ₹15,000 on the transfer.

  7. 07

    Receiving company posts the goods receipt open in twin

    Plant 2100 receives 50 EA against the STO with 101, valued at the transfer price.

    The goods enter company 2000's books at what it paid, not at company 1000's cost.

  8. 08

    Receiving company posts the supplier invoice open in twin

    Company 2000 posts the intercompany invoice: GR/IR cleared, payable to company 1000.

    Company 1000's receivable and company 2000's payable match, which consolidation eliminates.

  9. 09

    Intercompany transfer complete open in twin

    Company 1000: revenue ₹75,000, COGS ₹60,000. Company 2000: inventory ₹75,000, payable ₹75,000.

    In group reporting the intercompany margin and the receivable/payable are eliminated.

SAP documents

Drag to pan · Ctrl + scroll to zoom

Stock impact

StepPlant / SLocStock typeMvTChange
Intercompany delivery and goods issue (643)1000 / 0001Unrestricted use643−50 EA
Receiving company posts the goods receipt2100 / 0001Unrestricted use101+50 EA

Accounting impact

Goods issue for an intercompany STO (supplying company)

Typical

Intercompany delivery and goods issue (643)

  • Dr Cost of goods sold — company 1000 (GBB/VAX)₹60,000
  • Cr Inventory — company 1000 (BSX)₹60,000

The supplying company is selling, so the inventory value goes to cost of goods sold, as in a sales delivery.

Intercompany billing (supplying company)

Typical

Intercompany invoice (IV)

  • Dr Intercompany receivable — company 2000₹75,000
  • Cr Intercompany revenue (ERL)₹75,000

Billing type IV posts a receivable from the internal customer and intercompany revenue, determined by revenue account determination. Tax treatment depends on the countries and configuration.

Goods receipt for the intercompany STO (receiving company)

Typical

Receiving company posts the goods receipt

  • Dr Inventory — company 2000 (BSX)₹75,000
  • Cr GR/IR clearing — company 2000 (WRX)₹75,000

Valued at the STO price, as for an external purchase order.

Intercompany supplier invoice (receiving company)

Typical

Receiving company posts the supplier invoice

  • Dr GR/IR clearing — company 2000 (WRX)₹75,000
  • Cr Intercompany payable — company 1000₹75,000

Often created automatically from the IV billing document by EDI/IDoc; otherwise entered in MIRO. Configuration dependent.

Typical conceptual flow. Actual G/L accounts and posting behaviour depend on material valuation, automatic account determination and system configuration.

Movement type

  • 643GI for cross-company STOReversal: 644
  • 101GR for STOReversal: 102

Moves stock between legal entities of the same group, recording a sale in the supplying company and a purchase in the receiving company.

Transactions & Fiori apps

  • ME21N — Create Stock Transport Order
  • VL10B — Create Deliveries for POs
  • VL02N — Post Goods Issue
  • VF01 — Intercompany Billing
  • MIGO — Goods Receipt
  • MIRO — Supplier Invoice
  • Manage Stock Transport OrdersAvailability depends on release and scope

Differences by SAP version

Classic intercompany STO with 643/101 and billing type IV.

Configuration

  • STO setup per supplying/receiving plant

    Configuration dependent

    Document type NB, delivery type NLCC, checking rule, one- or two-step procedure.

  • Intercompany billing type IV

    Typical

    Assigned to the sales organization; uses the internal customer of the receiving company code.

  • Automatic invoice receipt

    Configuration dependent

    Whether company 2000's invoice is created automatically from IV via EDI/IDoc.

Prerequisites

  • Supplying plant assigned to a sales area; receiving plant has an internal customer number
  • Internal supplier for the supplying company code in the receiving company
  • Transfer price conditions (e.g. intercompany price condition) for billing and the STO
  • Delivery type, document type and checking rule assigned for the plant pair

Master data

Internal customer and internal supplier
Represent the companies to each other.
Material master in both plants
Sales views in the supplying plant, purchasing views in the receiving plant.

Organizational structure

  • Company code 1000, plant 1000
  • Company code 2000, plant 2100
  • Shipping point 1000

Tables

TableDescription
EKKO / EKPOSTO
LIKP / LIPSIntercompany delivery
VBRK / VBRPIV billing document
MATDOC643 and 101

Integration

  • SDDelivery and intercompany billing in the supplying company.
  • FITwo company codes, intercompany receivable/payable, consolidation.

Common errors

  • “No delivery can be created for the STO”

    Likely causes: Receiving plant has no customer number; Supplying plant not assigned to a sales area; Shipping data missing on the STO

    Where to look: STO shipping tab · Plant/customer assignment

  • “Intercompany billing not possible”

    Likely causes: Billing type IV not assigned; Intercompany price condition missing

    Where to look: Billing due list (VF04) · Pricing analysis

Troubleshooting

Something went wrong? Work through these checks in order. They are diagnostic questions, not configuration instructions — confirm changes with your system owner.

  1. CHECK 1

    Delivery

    • Customer number of receiving plant
    • Sales area of supplying plant
  2. CHECK 2

    Billing

    • Billing type IV assigned?
    • Intercompany price condition?

Interview questions

  • What is the difference between an intra-company and an intercompany STO?

    Intra-company plants share a company code: 641 moves stock into transit of the receiving plant with no sale. Intercompany plants belong to different company codes: the supplying company sells (delivery type NLCC, GI 643, billing type IV) and the receiving company buys (GR 101, supplier invoice).

  • What is billing type IV?

    Intercompany billing: the supplying company invoices the receiving company code (as an internal customer) at the transfer price, posting intercompany receivable and revenue.

Quiz

Q1 · Identify the movement type

Which movement type is the goods issue for a cross-company STO?

Q2 · Document flow

Put the intercompany documents in order.

References

  • SAP SE — SAP Help Portal: Cross-Company-Code Stock Transport Order (source)
  • SAP SE — SAP Help Portal: Intercompany Billing (source)

Explanations are original. They summarize standard behaviour; always validate against your system's release and configuration.

Version history

VersionChange
1.0.0Initial version.