In a company, goods movements do not only occur in the form of goods receipts and goods issues. Depending on the organization of the company (for example, decentralized storage) and its sales policy, internal stock transfers might also be necessary.

Stock transfers can occur at three different levels:

• Stock transfer from company code to company code
• Stock transfer from plant to plant
• From storage location to storage location (in the plant)

A stock transfer from company code to company code corresponds to a stock transfer from plant to plant, with both plants belonging to different company codes.

A stock transfer from plant to plant not only leads to a change in stock quantity in both plants; if both plants are assigned to different valuation areas, an accounting document is also created.

This type of stock transfer can only be carried out from unrestricted-use stock of the issuing plant to unrestricted-use stock of the receiving plant.

Stock transfers from plant to plant are relevant for Material Planning, since Materials Planning operates at plant level.

A stock transfer from storage location to storage location in the same plant simply causes an update of the stock quantities in both storage locations. The stock value remains unchanged, and the event is not relevant for accounting.

A stock transfer from storage location to storage location is possible for all stock types.

You can post both stock transfers and transfer postings in SAP R/3. Transfer postings differ from stock transfers, in that transfer postings are not connected with a physical goods movement. They usually involve a change in stock type, batch number, or material number.

An example of transfer posting is the release from inspection into the company's own stock.

There are three different procedures for carrying out a stock transfer:

• Stock transfer via stock transfer posting using the one-step procedure
• Stock transfer via stock transfer posting using the two-step procedure
• Stock transfer using stock transport order

Both stock transfers and transfer postings consist of a "goods issue" from an issuing point and a "goods receipt" at a receiving point. You can post a stock transfer from storage location to storage location or from plant to plant either in one step or in two steps.

The advantage of the one-step procedure is that you enter a single transaction in the system.

The two-step procedure, on the other hand, allows you to monitor the stocks in transit. After the goods issue is posted at the issuing point, the stock appears "in stock transfer" at the receiving point and is managed as such in the system.

The two-step procedure is also required if users have authorizations only for their own plants.

During a one-step stock transfer, the system creates two material document items for every item you enter:

• An item for the removal from storage at the issuing point
• An item for placement into storage at the receiving point

During a two-step stock transfer, the system creates two material documents:

• Upon the removal from storage at the issuing point, the system creates a material document. For every item you enter, two material document items are created, namely:

• An item for the removal from storage at the issuing point
• An item for the placement into stock in transfer at the receiving point

• Upon placement into storage at the receiving point, the system again creates a material document. For every item you enter, only one material document item is created, because the quantity is only transferred from stock in transfer into unrestricted-use stock at the receiving point.