This type of stock transfer not only involves Inventory Management but Purchasing in the receiving plant. The goods issue posting in Inventory Management is carried out without the involvement of SD.
Characteristics of a Stock Transfer Order
This enables the quantity "on the road" to be monitored.
Plant A would like to order materials from plant B. Plant A enters a stock transfer order. The stock transfer is used to plan the movement.
Plant B supplies the goods to plant A. Plant B enters the goods issue for the stock transfer order. The goods are then posted to the stock in transit of the receiving plant.
Once the goods arrive in the receiving plant, the plant posts the goods receipt. The stock in transit is therefore reduced and the unrestricted-use stock increased.
The goods receipt is entered with reference to the purchase order.