Two-step movement

Within SAP Inventory Management, there are two methods how stock are moved between plants using a 2-step process:
Stock Transport Orders (UB)
Transfer Posting

What does 2-step mean?Example: Let’s assume stock is moving from Plant A (Storage Location 0001) to Plant B (storage location 0002). Two step means that two transactions will be used to move the stock. After the first transaction, stock has left plant A but it is not yet available at Plant B. Only after the second transaction is it available for use in Plant B.

Some reasons for using 2-step movements (and not 1 step):
1. Long time span between leaving Plant A and arriving at Plant B
2. Need to control when goods leave plant A but not received at plant B

Using Stock Transport Orders (STO) Steps:
Create a Stock Transport Order (ME21N, Purchase Order doc type UB)
Process Goods Issue against STO (MIGO > Goods Issue > PO) – movement type 351
Process Goods Receipt against STO (MIGO > Goods Receipt > PO) – movement type 101 The use of Planned Orders and Purchase Requisitions are optional.

Using Transfer Postings (TP) Steps:
Process a Transfer Posting (MIGO > Transfer Posting) – movement type 303
Process a Transfer Posting (MIGO > Transfer Posting) – movement type 305