Interview Questions

What is the difference between the stock transfer between two plants belonging to same company code and those belonging to different company code?

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What is the difference between the stock transfer between two plants belonging to same company code and those belonging to different company code?

Answer1:
A stock transfer from plant to plant generally takes place within a company code. It can, however, also take place between two company codes, if the plants are assigned to different valuation areas, which belong to different company codes.

Unlike a stock transfer from storage location to storage location, a stock transfer from plant to plant affects both accounting and Materials Planning, as follows:

* Accounting

Accounting is affected if both plants are assigned to different valuation areas. This means that a stock transfer leads not only to a quantity update but also to a value update (stock value, G/L accounts). Thus, parallel to the material document for stock transfer, an accounting document is created.

* Materials Planning

Materials Planning is affected because a change of plant stock is taken into account by Materials Planning.

Answer2:
The stock transfer from one plant to another belonging to same company code is same as that of belonging to different company code functionally.

In both the types of transfers, there will be a material document generated which will update the QTY in both the plants in the respective storage location.

Accounting document generation will depend on the valuation level of the material. If the materials are being valuated at company level and it is being transferred from one plant to another belonging to the same company code, no accounting entry is generated. However, if the valuation is being done at plant level, the accounting document will be generated in both the cases.

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