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
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
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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
Stock impact
| Step | Plant / SLoc | Stock type | MvT | Change |
|---|---|---|---|---|
| Intercompany delivery and goods issue (643) | 1000 / 0001 | Unrestricted use | 643 | −50 EA |
| Receiving company posts the goods receipt | 2100 / 0001 | Unrestricted use | 101 | +50 EA |
Accounting impact
Goods issue for an intercompany STO (supplying company)
TypicalIntercompany 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)
TypicalIntercompany 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)
TypicalReceiving 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)
TypicalReceiving 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
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.
Same core flow; newer releases add options for stock in transit across company codes. Requires configuration validation.
Intercompany stock transfer is a scope item; documents created through Fiori apps.
Configuration
STO setup per supplying/receiving plant
Configuration dependentDocument type NB, delivery type NLCC, checking rule, one- or two-step procedure.
Intercompany billing type IV
TypicalAssigned to the sales organization; uses the internal customer of the receiving company code.
Automatic invoice receipt
Configuration dependentWhether 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
| Table | Description |
|---|---|
| EKKO / EKPO | STO |
| LIKP / LIPS | Intercompany delivery |
| VBRK / VBRP | IV billing document |
| MATDOC | 643 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.
CHECK 1
Delivery
- Customer number of receiving plant
- Sales area of supplying plant
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
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
| Version | Change |
|---|---|
| 1.0.0 | Initial version. |