Step Transfer This process describes to transfer the material stock between plants 1-step. This type of stock transfer can only be carried out in Inventory Management. Neither Shipping in the issuing plant nor purchasing in the receiving plant is involved in the process. Transferring stock in one step has the following characteristics: – The stock transfer is entered as a transfer posting in Inventory Management. Creating a reservation can plan the transfer posting. The quantity of the stock transferred is posted immediately from the unrestricted-use stock of the issuing plant to the unrestricted-use stock of the receiving plant The transfer posting is valuated at the valuation price of the material in the issuing plant. If the plants involved belong to different company codes, the transfer between plants is also a transfer between company codes. In this case, the system creates two accounting documents for the transfer posting. The stock posting is offset against a company code clearing account. 2- Step Transfer This process describes to transfer the material stock between plants in 2-step. This type of stock transfer can only be carried out in Inventory Management. If you post a stock transfer from plant to plant using the two-step procedure, you post the removal from storage at the issuing plant first. After you post the removal from storage, the quantity being transferred is managed in stock in transfer at the receiving plant. It is not yet part of unrestricted-use stock, however. You post the placement into storage at the receiving plant in a second step. Only then are the event completed and the transferred quantity part of unrestricted-use stock. Possible reasons for carrying out the a stock transfer in two steps may be: The plants are located at quite a distance from each other and the goods are in transit for a prolonged period of time; or there is one employee responsible at each plant, and each can only post movements for his/her own plant.