Lesson 3 of 6
Transfers, transfer postings and goods issues
9 min
Stock does not stay where it was received. Rotors move from the receiving area to the line-side store, alternators move from Detroit to Chicago, inspected goods move from quality inspection to unrestricted use. SAP distinguishes two kinds of transfer: stock transfers, which physically move stock between storage locations or plants, and transfer postings, which change the stock's status or identity without necessarily moving it.
Stock transfers between storage locations and plants
| Transfer | One step | Two step | Valuation effect |
|---|---|---|---|
| Storage location to storage location (same plant) | 311 | 313 (remove) then 315 (place in storage); stock in transfer in between | None; same plant, same value |
| Plant to plant (same company code) | 301 | 303 (remove) then 305 (place in storage) | Possible: each plant can have its own price |
| With a stock transport order | - | Delivery and goods issue from the issuing plant, receipt at the receiving plant | Possible; with planning, tracking and optional billing |
One step is simpler: one posting, both sides updated at once. Two step reflects reality when the goods spend time on a truck: stock in transfer shows what has left but not yet arrived. Contoso moves rotors from 171A to 171B in one step (same building) and alternators from Detroit to Chicago with stock transport orders so planning and shipping are involved.
- Issuing plant 1710100 CMC-ALT-100 removed from 171A at standard $150 = $15,000
- In transitStock in transfer (two-step) or immediate (one-step 301)
- Receiving plant 1720100 placed in 172A at standard $156 = $15,600
- Journal entryInventory 1710 credit $15,000; inventory 1720 debit $15,600; $600 difference to a price difference account
Transfer postings: changing stock type
Transfer postings change usability. After inspection, rotors move from quality inspection to unrestricted use with 321. A damaged pallet of alternators is moved from unrestricted to blocked with 344 and back with 343 after repair. These postings change stock type quantities but usually not the value, because all three stock types are valuated. In the Fiori world, the Transfer Stock - In-Plant app shows the stock types side by side and lets you move quantities between them.
Goods issues
A goods issue reduces stock. Issues to a production order (261) usually happen through backflush or order confirmation rather than manually. Issues to a cost center (201) are for internal consumption, such as rotors used on the engineering test bench. Scrapping (551) writes off damaged stock. Issues for sales (601) are posted from the outbound delivery, not in MIGO.
| Goods issue | Debit | Credit |
|---|---|---|
| 201 to cost center | Consumption expense on the cost center | Inventory |
| 261 to production order | Consumption on the production order | Inventory |
| 551 scrapping | Scrapping expense (with cost center) | Inventory |
| 601 outbound delivery | Cost of goods sold | Inventory |
Typical journal entries for goods issues.
Many issues refer to a reservation: a planned withdrawal created in advance (manually, or automatically by a production order for its components). Posting the issue with reference to the reservation reduces the reserved quantity. Lesson 4 explains why reservations matter for availability.
What would you do?
A two-step transfer of rotors from 171A to 171B was started with 313 last week. The line-side store says they never got the stock. Where do you look?
- Stock transfers move stock between storage locations or plants in one step or two.
- Transfer postings change stock type, such as 321 from inspection to unrestricted.
- Plant-to-plant transfers can create value differences when plant prices differ.
- Goods issues reduce stock and debit a cost object; many reference reservations.
Check your understanding · not graded
Lesson check
1. Which movement type transfers stock between storage locations in one step?
2. In a two-step storage location transfer, where is stock between 313 and 315?
3. Which movement type moves stock from quality inspection to unrestricted use?
4. Why can a plant-to-plant transfer post a value difference?