You use Transfer Order when you are having Warehouse managemnet Module active in your business.
Transfer order will move the material from Interim storage location to Warehouse.
Shipping is used to group together the deliveries, transportation planning, Shipment Cost calculation.
Hope this is clear.
Reward points if this helps.
You need to create TO after saving the delivery without PGI. First create delivery using T-code VL01N. then save it Now you need to create Transfer Order using T-code LT03. You must activate Warehouse management to process TO.
TO means selecting of materials from warehouse and assigning them to a particular delivery.
After create TO, you need to create Shipment using T-code VT01N. Shipment is nothing but planning and assigning the deliveries to a particular vehicle.
After creating Shipment, you need to confirm TO. it means the allocated qty has been loaded into truck.
now you need to go for shipment planning using t-code VT01N.
Then you will do PGI.
R 3 wrote:
> Like the title. I am usually accustomed to do delivery using VL01. So when do I need to use Transfer orders and Shipments?
> Thank you
As told in previous replies we use transfer order when Warehouse Management is active.
Now as to your question to check if WM is active
Goto SPRO->Logistics Execution->Shipping->Picking->Lean WM->Control Plant/Storage Location Warehouse Number Assignment.
In this you can see plants and storage locations which are active for Warehouse and the respective Warehouse number.
When we say transfer order what we basically mean is we have to pick the item from Warehouse and transfer it to our delivery. So to see if your delivery will b relevant for Transfer Order (LT03) just check if the plant is WM active.
Doing Transfer Order we change the picking status in Delivery.
If you go to delivery in picking tab you can see Ovrall pick status this changes from A to C after transfer order in case WM is active for the supplying plant.
Addressing your second question
Shipments: Imagine a Courier service company when you create delivery all you do is tell the system there is so much goods to be delivered to ship to party on such a date from this plant for this Material. It is like receiving the Bill for your courier Packet from say Blue Dart. Now Blue Dart will create a shipment which is nothing but a truck who is going to deliver it physically to the customer. So here we choose a Vehicle who will deliver, the deliveries (Blue Dart sends multiple deliveries destined to same location in single truck) the time for the truck to start and so on. This schedule of physical delivery is called shipment in SAP you have 2 types of shipment Bulk can be created using O4F1
For a detailed process
and SD can be created using VT01N
Hope it clarifies to some extent
Post for further clarification
Reward if Helpful
Regarding the question of transfer order and shipment.
Transfer order is generally required if you have maintained warehouse and its related configuration.
Transfer order as the name suggest, is responsible for stock transfer between warehouses for loading and unloading purposes.
for Warehouse mgt to be active or not is not really the lookout of a team member, its generally of a project manager.
so dont worry about it as such, with every facility you use the client have to pay for it, so if its active it will automatically be present in your business blue print.
second regarding shipment, it is more of how you co-ordinate the transfer of goods from your factory to the customer.
the organization of transportation, like the medium of transportation, the time required for the transportation,etc.
all these scenarios are generally related to pharma and hardcore manufacturing industries.