Warehouse Management PDF

LO530 Warehouse Management
LO530
Release 46D 08.05.2003

LO530 Warehouse Management
LO530
Warehouse Management
© SAP AG 1999
R/3 System
Release 4.6C
September 2000
Material number 50041468
Copyright
Copyright 2002 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in
any form or for any purpose without the express permission of
SAP AG. The information contained herein may be changed
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© SAP AG 2002
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Logistics Execution
Level 2 Level 3
LO530 3 days LO531 3 days

Warehouse Additional Topics in
Management Warehouse
Management
LO140 3 days
Processes in
Logistics Execution
LO610 2 days LO650 3 days

Delivery Processes Cross - Functional
Customizing in SD
LO611 3 days
Transportation
© SAP AG 1999
Course Prerequisites
z LO140 Processes in Logistics Execution
© SAP AG 1999
Target Group
z Audience:
Project team members responsible for the
implementation of Warehouse Management
SAP and Partner consultants responsible for customer
implementation of Warehouse Management
z Duration: 3 days
© SAP AG 1999
Notes to the user

The training materials are not teach-yourself programs. They complement the course instructor's
explanations. Your material includes space for noting down this additional information.
There may not be enough time to do all the exercises during the course. The exercises are intended
to be additional examples that are dealt with during the course. Participants can also use them to
deepen their knowledge after the course.
Course Overview
Contents:
z Course Goals
z Course Objectives
z Course Content
z Course Overview Diagram
z Main Business Scenario
© SAP AG 1999
Course Goals
This course will prepare you to:

z Gain an understanding of the basic Warehouse
Management functions and the available tools
used to configure the SAP Warehouse to your
company’s requirements.
© SAP AG 1999
Course Objectives
At the conclusion of this course, you will be able to:
z Perform basic WM functions such as putaway and

retrieval of stocks and process posting changes
z Customize the integration with Inventory
Management, Production Planning and Delivery
Processing
z Discuss customizing options and settings within
the Warehouse Management System
© SAP AG 1999
Course Content
Preface
Unit 1 Course Overview Unit 7 Goods Issue

Unit 2 Logistics Execution Unit 8 Posting Changes
Overview
Unit 9 Production Integration
Unit 3 Warehouse Management
Structure Unit 10 Delivery Processing
Unit 4 Master Data Unit 11 Replenishment
Unit 5 Integration with Unit 12 Physical Inventory
Inventory Management
Unit 13 Conclusion
Unit 6 Goods Receipt
Appendices
© SAP AG 1999
Course Overview Diagram
Course Overview 1 Goods Issue 7

Logistics Execution
Overview 2 Posting Changes 8
Structure 3 Production Integration 9
Master Data 4 Delivery Processing 10

Integration with
Inventory Management 5 Replenishment 11
Goods Receipt 6 Physical Inventory 12
Conclusion 13
© SAP AG 1999
Main Business Scenario
z The model company is a producer and distributor

of pumps. To optimize the logistics process, the
company will implement Logistics Execution
utilizing Warehouse Management functionality.
© SAP AG 1999
Logistics Execution Overview
Contents:
z Logistics Execution Process Review
© SAP AG 1999
Logistics Execution Overview: Overview Diagram

Logi
stics
Logistics Execution
Exec
u
OverOverview
2 Posting Changes 8
view tion

Integration with
Conclusion 13
© SAP AG 1999
Logistics Execution Overview: Business Scenario
z The project team must be oriented to the Logistics

Execution Process.
© SAP AG 1999
Logistics Execution Overview: Topic Objectives
At the conclusion of this topic, you will be able to:
z Describe the Logistics Execution Process
© SAP AG 1999
Integration Process
Presales Order
Shipping Invoicing Payment
Activities Processing
Logistics Execution (LE)

Require-
Goods
Issue
ment
Debitor
Accounts
Requirement IM Inventory
determination
Creditor
Require-
Receipt
Goods
ment
Source Invoice Payment

PO Processing
determination verification
Purchasing (MM)
© SAP AG 1999
In version 4.5, the applications of Warehouse Management, Shipping and Transportation were
brought together to form the Logistics Execution system. As part of SAP‘s Supply Chain
Management, these components are combined to build strong links between processes of Production,
Procurement and Sales and Distribution.
Overview
Sales Order Presales

Activities
MRP
External Supply Internal Supply
Procurement Production
Invoice Verification Inventory Management

Posting
Change
Goods Receipt
Invoice Goods
Entry Issue
Shipping Invoicing
Internal and External

Accounting
© SAP AG 1999
Logistics Execution supports the flow of materials along the supply chain, not only between entities,
but also within the warehouse for the entire supply chain management from the supplier through the
customer.
The Warehouse Management system is embedded in the total SAP system as well as in the material
flow of the entire organization.
y Example:
If a goods receipt is posted in the Inventory Management system, the stock level is increased in the
WM system. Because of the goods receipt posting, an action is started in the WM system that
notifies the user that material must be stored in the warehouse.
Bin Management Planning and Monitoring
Movements Radio - Frequency Warehouse Control
© SAP AG 1999
What tasks does the SAP Warehouse Management system accomplish?

Management of complex warehouse structures with various types of storage areas (high rack random
storage, block storage, fixed bin storage, and so on) within one or several plants down to the storage
bin level.
Planning and Monitoring with such tools as the Warehouse Activity Monitor, Rough Workload
Estimate, Time Performance and the Delivery Monitor.
Processing of all stock movements such as goods receipts, goods issues, stock transfers using stock
placement and stock removal strategies, also taking the characteristics of the individual materials
into account.
Direct Radio Frequency support.
The control of information transfers between the WM system and automated control systems.
WM Integration with Other Systems
Quality Management
Production Supply
Delivery Processing
Transportation
Human Resources
© SAP AG 1999
The Warehouse Management system is integrated with other SAP system modules that provide the
following functions:
y All goods movements in the WM system affect data posted in the Inventory Management system
y The handling of inventory samples in connection with Quality Management
y The supply of materials in connection with the PP/PI systems
y The processing of deliveries in conjunction with the Sales and Distribution Shipping system
y The processing of items through the Transportation system
y The processing of transfer orders using hand-held terminals
y Passing data to Human Resources for Incentive Wages
z Create a Goods Receipt in Inventory

Management and follow through placement
and confirmation in the Warehouse
© SAP AG 1999
Goods Receipt Process
GR area
© SAP AG 1999
Goods receipt: physical process

When goods are received, they are usually transferred first to the goods receipt (GR) area. Stock
placement into the warehouse takes place after a suitable storage bin has been determined for the
goods.
Goods receipt: process within the system
Inventory Management (IM)
y A Material Document is created to represent the movement of goods into the warehouse. It is
possible to enter palletization data at this point.
y An Accounting Document is created to represent the change in value of the goods in the
warehouse.
Warehouse Management (WM)
y A quant is created in the Goods Receipt area to represent the existence of goods now in the
warehouse.
y A Transfer Requirement is created since the goods must later be transferred by means of a transfer
order to a storage area within the warehouse.
Process for Stock Placement
IM WM IM
Transfer
Goods
Requirement
Receipt
QUANT
Transfer
Order
Confirmation/
differences
differences
© SAP AG 1999
1. The goods receipt is entered in the Inventory Management system:

y material document created in IM
y accounting document created in IM
y quant created in the GR area in WM
y transfer requirement created in WM
2. The transfer order is created based on the transfer requirement.
3. The goods become available, upon confirmation of the transfer order. Also, any differences noted at
put away are entered at this time.
4. Differences, if any, are moved to a storage type for differences, and when cleared in IM:
y a material document is created and
y an accounting document is created
There are opportunities for automation at various points throughout the process.
Planning a Movement
GR area
Transfer
requirement
Transfer order
HRS
© SAP AG 1999
A Transfer Requirement (TR) is created in order to plan a stock movement.

The TR indicates a need to move a specific quantity (quant) of a material into the warehouse (stock
placement) or to move a quantity out of the warehouse (stock removal).
The TR provides information about anticipated stock movements.
The TR is later converted into one or several Transfer Orders (TO).
Transfer Requirement Information
Goods Receipt Goods Issue

area area
Transfer requirement
What
?
How much
Palletization
When
From where
Reason/Origin
Storage area
© SAP AG 1999
A transfer requirement (TR) contains the following information:

y What is to be moved (material number)?
y How much is to be moved (quantity)?
y How is it palletized (material master)?
y What is the reason/origin (movement type / purchase order)?
y What has already been moved (if partial)?
List display functions
y single transfer requirement (transfer requirement number)
y all TRs for a material
y all TRs for a storage type
y all TRs for a requirement (original document)
y all TRs for a material document
Steps for Stock Placement
Goods receipt
posting TO
from TR
TO
Pallet slip
Stock available
Confirm
transfer
order
© SAP AG 1999
When goods are delivered, the goods receipt is entered in the Inventory Management system. On
the basis of the goods receipt posting, a transfer requirement and a quant in the GR area are
created.
To place the goods into storage, a transfer order is created on the basis of the transfer requirement.
When the transfer order is created, the system determines the destination storage bin.
The transfer order documents are used to physically place the goods into storage. The transfer
quantity remains unavailable in the warehouse as long as the stock placement is not confirmed in the
system.
As soon as the physical stock placement has taken place, you confirm the transfer order and also
enter differences, if any.
Depending upon the system set-up, it is possible for the system to create transfer orders
automatically in the background.
Transfer Order Information
Goods Receipt HRS Goods Issue

area area
© SAP AG 1999
The transfer order is an instruction to move materials from a source storage bin to a destination
storage bin within the warehouse complex.
Transfer orders contain the following information:
y Material number
y Quantity to be moved
y Source, destination and return storage bins
The information that the transfer order needs comes from several sources:
y Material master record
y Warehouse management movement type
y Strategies for finding the source or destination storage bins
y User entries
y Source documents, such as transfer requirements and deliveries
Screen Sequence in Transfer Order Creation
TR Transfer requirement list
TR items
Overview of TR items
Preparation screen
Details of TO item
© SAP AG 1999
The transfer requirement list contains all transfer requirements that respond to the selection criteria
entered. On this list, it is possible to select a transfer requirement, process it and post the transfer
order in the background.
The overview of transfer requirement items contains all the items in the selected transfer
requirement. It is possible to select one or several items in the list and process them either in the
foreground or in the background.
On the preparation screen, the quantity of a specific transfer requirement item is distributed to
different storage bins (where appropriate with a palletization recommendation by the system).
The detail screen of a transfer order item contains a source item, a destination item, and sometimes
also a return item.
Palletization Notices
Preparation
screen
TR item 1
Transfer order
200 pcs
Item 1 50 pcs
Item 2 50 pcs
Item 3 50 pcs
Item 4 50 pcs
Mat. master
Pallet S1
50 pcs
© SAP AG 1999
The preparation screen is used to divide the transfer requirement quantity among the various pallets
(storage bins).
Any previously entered palletization data in the transfer requirement is displayed in the preparation
screen as default entries.
If standard palletization is defined in the material master record, the system proposes distribution of
the materials based on the storage unit type (SUT).
If several SUTs are defined for the material, the system proposes that any remaining amount be
placed on a smaller pallet.
You can change the palletization recommendation or carry out the palletization manually.
A user exit is also available for this process.
Transfer Order Confirmation
TO Header
TO Items ---
Item material src bin
TO item
item... material dest bin act quantity diff quantity ...
1 tmx1 01-01 50
2 tmx1 01-02 45 5
3 tmx2 01-03 50
© SAP AG 1999
When you confirm a transfer order or a transfer order item, you are verifying that the required
quantity of material has actually been transferred from one location to another and that the
processing of the transfer order or item has been completed.
The TO Confirmation function allows three options:
y Standard 1st screen - confirm actual quantities equal to target quantities
2nd screen - enter differences, if any (one screen per line item)
y Input List One screen to confirm quantities and enter differences
y Pack ship unit - switch to packaging dialog of the delivery where you can create shipping units.
Whether or not to automatically confirm transfer orders is set in Customizing.
z Create a Goods Issue in Inventory Management

and follow through the removal process in the
warehouse
© SAP AG 1999
The Goods Issue Process
Goods issue area
© SAP AG 1999
Goods issue: physical process: When goods are issued, stock removal from the warehouse takes
place after the appropriate storage bin has been determined. The goods are usually transferred to the
goods issue (GI) area before leaving the warehouse.
Goods issue: process within the system
Inventory Management (IM)
y A Material Document is created to represent the movement of goods into the warehouse. It is
possible to enter palletization data at this point.
y An Accounting Document is created to represent the change in value of the goods in the
warehouse.
Warehouse Management (WM)
y A negative quant is created in the Goods Issue area to represent the existence of goods now in the
warehouse.
y A Transfer Requirement is created since the goods are later transferred using a transfer order
from a storage area within the warehouse to the GI area.
Steps for Stock Removal
IM WM IM
Transfer
Goods
Requirement
Issue
negative QUANT
Transfer
Order
Confirmation/
differences
differences
© SAP AG 1999
1. The goods issue is entered in the Inventory Management system:

y material document created in IM
y accounting document created in IM
y transfer requirement created in WM
y negative quant created in the GI area in WM
2. The transfer order is created based on the transfer requirement.
3. The goods become available, upon confirmation of the transfer order. Also, any differences noted at
the time of stock removal are entered at this time.
4. Differences, if any, are moved to a storage type for differences, and when cleared in IM:
y a material document is created and
y an accounting document is created
y There are opportunities for automation at various points throughout the process.
Transfer Requirement Information
Goods Receipt Goods Issue

area area
Transfer requirement
What
How much
When
Where to
Why
?
Storage area
© SAP AG 1999
A transfer requirement (TR) contains the following information:

y What is to be moved (material number)?
y How much is to be moved (quantity)?
y How is it palletized (material master)?
y What is the reason/origin (movement type/reference?)
y What has already been moved (if partial)?
List display functions:
y single transfer requirement (transfer requirement number)
y all TRs for a material
y all TRs for a storage type
y all TRs for an account assignment
y all TRs for a material document
Steps for Stock Removal
Goods issue
posting
TO for TR
Transfer order
Confirm
transfer Material available
order
© SAP AG 1999
For the removal of material, the goods issue is posted in the Inventory Management system. On the
basis of this goods issue posting a transfer requirement and a negative quant in the GI area are
created.
To remove the goods, a transfer order is created from the transfer requirement. When the transfer
order is created, the system determines the source storage bin.
The goods are physically removed from the warehouse with the help of the transfer order documents.
As soon as the physical stock removal is completed, the user confirms the transfer order. Here it is
possible to enter differences.
Depending upon the set-up, it is possible for the system to create transfer orders automatically in the
background.
Transfer Order for Stock Removal
Goods Receipt HRS Goods Issue

area area
© SAP AG 1999
For each stock removal a transfer order is created, which is used to transfer the goods from the
warehouse to the GI area.
Data Entry Help for Stock Removal
Preparation
screen
Available Bin
stock
TR item 1 Transfer order
X 100 01-01-01
300 pcs Item 1 100 pcs
400 01-01-02
X 100 01-01-03 Item 2 100 pcs
x 100 01-02-01 Item 3 100 pcs
100 01-03-01
© SAP AG 1999
If you select Stock Overview from the TO Create Overview screen, you can view the available
quants and select the quants you want to process.
On the preparation screen, quants of the required material are proposed by the system for stock
removal. You can override the system proposal and manually enter the storage bin from which the
quantity is to be removed.
Printing a Transfer Order
TA Pick list
Item 1
Item 1 Mat 1 Src. – Dest.
Item 2
Item 2 Mat 2 Src. – Dest.
Item 3
Item 3 .
. .
. .
.
Single printout Multiple printout
© SAP AG 1999
As a rule, transfer orders are printed immediately after they have been created.
You can print transfer orders in different ways:
y as a single document (one TO item per page)
y as a combined document (multiple TO items on one page)
y as a picking list (several TO with different sort options per page)
You can print with or without a bar code.
Labels can be printed for each transfer order.
Change Destination Bin
© SAP AG 1999
As of release 4.5A, you can change the destination storage bin when you confirm transfer orders.
This new feature is available in all standard situations. The situations in which you can enter the
destination bin is self-evident since the destination bin field is only available for data entry in those
cases.
It is not possible for dynamic coordinates, return items, in Lean WM, when the destination bin is
defined in the movement type, for posting change TOs, for inventory based on putaway and for
addition to existing stock in a storage unit.
Cancel Transfer Order
Before Confirmation
© SAP AG 1999
It is possible to cancel transfer orders that have not yet been confirmed in the WM system.
If, while placing goods into stock, you find a storage bin that cannot be used or if you determine that
for some reason, a stock removal cannot take place, it is possible for you to cancel a transfer order.
You can notify an external system of a transfer order cancellation from the WM system and notify
the WM system of a cancellation from the external system.
After a transfer order is canceled, reference documents (for example, the TR) are reopened.
Logistics Execution Overview: Unit Summary
You are now able to:

z Describe the Logistics Execution Process
z Create a Goods Receipt in Inventory
Management and follow through placement and
confirmation in the Warehouse
z Create a Goods Issue in Inventory Management
and follow through the removal process in the
Warehouse
© SAP AG 1999
Logistics Execution Overview - Exercises 1
Unit: Logistics Execution Overview

Topic: Goods Receipt
At the conclusion of this exercise, you will be able to:

• Create a Goods Receipt in Inventory Management and follow through
placement and confirmation in WM.
In your company, when goods are received from an external source, the
material comes into a receiving area and is processed in the SAP System
with the appropriate Inventory Management transaction. This material is
then placed into a Goods Receipt area and identified with the Purchase
Order number.
It is the responsibility of the warehouse then to pick up the material from
the Goods Receipt area and put it away. Once the material is put away,
the warehouse will confirm that the material has been stored as requested.
It is your responsibility to ensure that this process is efficient and to
troubleshoot any issues that may arise. In order to test the efficiency of
this process, you must understand all of the steps within the receiving
process.
In this exercise, you will walk through the complete cycle of a Goods
Receipt, from the time materials are received on the dock until those
goods are placed in the appropriate storage type in the warehouse. At
several points along the way, you will need to verify the stock situation.
The ## indicates your group number that has been assigned by your
instructor. Wherever you see ##, please insert your group number.
Please be sure to work only within your warehouse.
1-1 Materials have arrived at the receiving dock with reference to a Purchase order.
You know the material number but not the Purchase Order Number.
Your Warehouse Number is 1## and your Storage Location is 01##.

The ‘##’ is your group number that has been assigned by your
instructor. Wherever you see ‘##’, please insert your GROUP
NUMBER. Be careful to create and change data only within your
warehouse number.
1-1-1 Check the stock situation of the material T-BW03-## before you begin.
Plant Sloc StorType Available For Putaway Pick Quantity

1000 01## 001
1-1-2 Add this task to your Favorites. Change the text to Warehouse
Management Stock Overview.
1-1-3 Now access the function for entering a goods receipt with reference to a
purchase order.
1-1-4 Find the Purchase Order for material T-BW03-##. Enter the goods receipt
for 100 pieces.
Save/Post the document. Material Document ___________________
1-1-5 Display the Stock Overview again for material T-BW03-##

1000 01## 001
1000 01## 902
TOTAL
1-1-6 From the Stock Overview, display the quant data and determine the
following information:
Quant Number _______ Goods Receipt Date ____________________
1-2 Convert the Transfer Requirement to a Transfer Order.
1-2-1 Display all TRs for your warehouse. (Add this task to your Favorites.
Change the text to Display Transfer Requirements by Storage Type.)
1-2-2 Is there a TR for the Purchase Order you received in the prior section?
_____. Display the TR and make note of the following information:
The Purchase Order number is displayed in the Requirement field.
Transfer Requirement number ________________________________
Requirement tracking number ____ __________________________
Source Storage type & bin number ____ __________________________
Material Document number ________________________________
Hint: The material document number is stored in the header

information.
1-2-3 Now convert the Transfer Requirement (TR) into a Transfer Order (TO) in
the foreground.
1-2-4 What palletization data is proposed? ______________________________
1-2-5 How does the system default the palletization data? __________________
____________________________________________________________
1-2-6 What destination storage bins are proposed? ________________________
1-2-7 Before posting, determine what stock placement strategy was used to
determine the destination of the final storage bin.
Environment → Storage Bin Search log
Putaway Strategy _____ _____________________
Save the TO. TO Number _________________

1-2-8 Display the WM stock overview for the material T-BW03-##.

1000 01## 001
1000 01## 902
Is the material available in the destination storage bin? ____

Why or Why Not?
_______________________________________________
_______________________________________________
1-3 Confirm the Transfer Order. (Add this task to your Favorites. Change the text to
Confirm TO, One Step).
1-3-1 Once again, display the stock overview for the material T-BW03-##. Is the
material now available in the destination storage bin? _______

Logistics Execution Overview - Solutions 1

Topic: Goods Receipt
1-1
1-1-1 Logistics → Logistics Execution → Internal Whse Processes → Bins and
Stocks → Display → Total Stock per Material (Warehouse Management)
Field Name or Data Type Values

Warehouse Number 1##
Material Number T-BW03-##
Plant 1000
Select MM Stock Figures to see Inventory Management total stock.
1-1-2 Favorites → Add. Select Favorites → Change to modify the text.

1-1-3 Logistics → Logistics Execution → Inbound Process → Goods Receipt for
Purchase Order, Order, Other → Enter Goods Receipt for Purchase Order
1-1-4 Select the match code icon in the first blank space next to Purchase Order to
search for the Purchase Order Number. Select M:Purchasing Documents for
Material.

Plant 1000
Select the Purchase Order and choose enter. Select Item OK to receive the
entire lot of 100 pieces. Enter Storage Location 01##. Save/Post the
receipt.
1-1-5 Favorites → Warehouse Management Stock Overview.
1-1-6 From the Stock Overview, select the Plant Summary line for Storage Type
902 with a single click on the line. Then select Bin Stock. Position your
cursor on the Quantity and select it to display the quant.
1-2
1-2-1 Logistics → Logistics Execution → Internal Whse Processes →
TranRqmt → Display→ By Storage Type. (Favorites → Add, Highlite the
line and choose Favorites → Change to change the description)
1-2-2 Yes, a Transfer Requirement was created by the Goods Receipt transaction.
1-2-3 Select the TR line item, then choose TO in foregr.
1-2-4 The system suggests 5 pallets with a quantity of 20 pieces each on a Euro-
pallet.
1-2-5 The system determines the default for the palletization data from the LE
Quantities in the material master, warehouse management view.
1-2-6 Select the icon for Putaway Foreground. The system will recommend the
placement bin for each pallet of 20. Enter to accept each recommendation
up to TO Item 5.
1-2-7 On TO Item 5, select Environment → Storage Bin Search Log. The
putaway strategy used is L – Next Empty Bin from Storage Type 001. Go
back to the TO creation and Enter, then save.
The material is not available in the destination storage bin until the Transfer
Order is confirmed.
1-3 Logistics → Logistics Execution → Internal Whse Processes → Stock Transfer

→ Confirm Transfer Order → Single Document → In One Step (Favorites →
Add, Highlite the line and choose Favorites → Change)
Alternate Menu Path: Logistics → Logistics Execution → Inbound Process →
Goods Receipt for PO, Order, Other Transaction → Putaway → Confirm TO →
Single Document → In One Step
Enter the TO Number. Review the active worklist and save to confirm.
The materials are now available in the destination storage bin.
Logistics Execution Overview - Exercises 2

Topic: Goods Issue

• Create a Goods Issue in Inventory Management and follow through
the removal process in the warehouse.
A Goods Issue to a Cost Center is often referred to as a ‘Miscellaneous

Issue’. Typically, these types of issues are done in the warehouse when
other departments are requesting materials outside of regular production
or maintenance; for example, materials that are stocked in the warehouse,
but not consumed by the production process. These materials are to be
issued from the warehouse and expensed to a department’s cost center.
In this exercise, your favorite Engineer has requested 5 Shafts, material
T-BW02-## for some testing. These shafts will be expensed to the cost
center of the Engineering Department (Cost Center 1000). In your
company, the process for this type of transaction is that the Goods Issue
(GI) is posted first in IM, and the appropriate documentation is generated
in the warehouse for material removal. The movement type for GI to a
Cost Center is configured such that a transfer requirement is created in
the warehouse as notification to move inventory from the warehouse to a
GI area. You then create a Transfer Order with reference to the Transfer
Requirement. The TO that is generated is printed in the warehouse and
the materials are pulled from stock.
Remember that a material is not available for subsequent functions within
the warehouse until the confirmation process is complete.
2-1 An Engineer, Mr. KC Jones, has requested 5 shafts, material number T-BW02-## to be
issued to his cost center 1000.
2-1-1 Before you start, note the stock balances for T-BW02-##.

1000 01## 001
2-1-2 Post a goods issue transaction issuing the 5 shafts (T-BW02-##) to Mr. Jones’
cost center.
2-1-3 Note the stock balances for T-BW02-##.

1000 01## 001
1000 01## 911
TOTAL
2-2 Display all TRs for material T-BW02-##. (Add this transaction to your favorites and
change the description to Display TR by material.) Select the one created by the GI
transaction and determine the following:
Transfer Requirement number ______________________________
Requirement tracking number ____ ________________________
Destination Storage type & bin number _______ _________________
Material Document number ________________________________

Material Document number is contained in the Header data.
2-3 Create a TO in the foreground with reference to your TR.

2-3-1 The Storage Type Search displays the storage type sequence the system will use
to search for the stock to remove. What are they?
__________ __________
Where does this sequence come from? _____________________________
_____________________________________________________________
2-3-2 Let the system select the quant for removal.
What removal strategy did the system use to select the quant for removal?
________________________________________
Environment → Storage Bin Search Log

2-3-3 Display the Transfer Order. Which bins are affected?
Stor. Type Stor. Bin
Source _________________ ________________
Destination _________________ ________________
Return _________________ ________________
2-3-4 Display the stock balance for T-BW02-##.

1000 01## 001
1000 01## 911
TOTAL
2-4 Confirm the Transfer Order.

2-4-1 Confirm that you have completed movement.
2-4-2 Once again, view the stock overview.

1000 01## 001
Logistics Execution Overview - Solutions 2

Topic: Goods Issue
2-1
2-1-1 Favorites → Warehouse Management Stock Overview
2-1-2 Logistics → Logistics Execution → Outbound Process → Goods Issue for
Other Transaction → Enter Goods Issue

Movement Type 201
Plant 1000
Storage Location 01##
Cost Center 1000

Material T-BW02-##
Quantity 5
2-2 Logistics → Logistics Execution → Internal Whse Processes → TrnsRqmt →

Display → By Material. Favorites → Add, highlight the entry and choose
Favorites → Change.

Warehouse 1##
Material T-BW02-##
Plant 1000
2-3 Select the appropriate TR from the list display, then choose TO in foregr.
2-3-1 001, 002. These storage types default from the Storage Type Search
Sequence table in customizing.
2-3-2 Select the icon for Picking Foreground. Then choose Environment →
Stor.bin Search Log. Back out of the search log, enter and save the TO.
The removal strategy the system uses to select the quant for removal is
FIFO (storage type 001).
2-3-3 Logistics → Logistics Execution → Internal Whse Processes → Stock

Transfer → Display Transfer Order → By Material
2-4 Favorites → Confirm TO, One Step

2-4-1 Save the TO.
Warehouse Management Structure
z Warehouse Management Structure Elements
© SAP AG 2000
1999
Warehouse Management Structure:

Logistics Execution
Ware
Mana houMa
Warehouse se nagement
gStructu
emen re 3 Production Integration 9
Struc t
ture
Integration with
Conclusion 13
© SAP AG 1999
WM Structure: Business Scenario
z The model company is a producer and distributor

of pumps. To optimize the logistics process, this
company will implement Logistics Execution
utilizing Warehouse Management functionality.
© SAP AG 1999
Warehouse Management Structure: Objectives
At the conclusion of this unit, you will be able to:
z Describe the basic elements of the warehouse

structure
z Define possible warehouse structure
scenarios with and without warehouse
management
© SAP AG 1999
Example of a Physical Warehouse Structure
Goods receipt
GR area High rack storage 1
Bulk storage
Goods issue
GI area Fixed Bin area
© SAP AG 1999
Example of a complex physical warehouse structure without regard to R/3, consisting of several
storage areas: high rack storage, bulk storage, fixed bin area, goods receipt and goods issue area.
Warehouse Structure in the System
Storage
Storage type
type Storage type 001
902
902
GR
GR area
area
Good receipt
High rack storage
Storage type 004
Bulk storage
Storage
Storage type
type Storage type 005
910
910
GI
GI area
area
Goods issue Fixed Bin area
© SAP AG 1999
Possible representation of the physical structure in the SAP Warehouse Management system:
y The entire warehouse structure is managed under a warehouse number
y The various storage areas are defined as storage types that are differentiated according to their
organizational and technical characteristics.
y Examples:
- GR area
- picking area with fixed storage bins
- high rack storage area with random picking
- bulk storage area with rows of the same material
Storage Bins and Quants
Bin type
High bins
Lower bins
Fast-moving items
Lower bins Fast-moving items
Storage section
© SAP AG 1999
Within each storage type the individual storage bins are defined. A storage bin is the smallest
geographical or organizational unit (also called “coordinate”) that can be addressed by the system.
Example: 02-04-09 (aisle 02, stack 04, level 09)
Storage bins are identified by a bin type.
Example: Bin type P1 for high bins
Storage bins are organizationally grouped into storage sections.
Example: Section 001 for fast-moving items.
The existence of a material in a bin is defined as a quant.
In bins designated for single-material storage, only one quant may be stored in the storage bin.
In bins designated for mixed storage, different materials (or batches) may be stored in the same
storage bin.
WM-System Hierarchy
Warehouse (complex) number
Storage type
Storage section/ Picking area
Storage bin
Quants are defined by:
Material / Batch
Stock category
Quant
Special stock
Plant / Storage location
Storage unit number
© SAP AG 1999
Warehouse: Organizational divisioning, usually of a plant that is used for the purpose of managing
materials or goods that are stored in storage bins.
Storage Type: A physical or logical storage area that can be defined for a warehouse in the WM
system.
Storage Section / Picking Area: A logical or physical subdivision of the storage type.
Storage Bin: The smallest addressable unit of space in a warehouse (often referred to as a “storage
slot“). Since the address of a storage bin is frequently derived from a coordinate system, a storage
bin is often referred to as a coordinate.
Quant: The existence of a material or a batch (same lot number) of a material in a storage bin. The
material quantity in a quant can be increased by an addition to existing stock.
Examples of a (Physical) Warehouse Structure
Plants
Storage areas
A
B
HRS Picking area Bulk storage HRS Shelving area
© SAP AG 1999
Example of a physical warehouse structure that can be depicted in the SAP System.
The Warehouse Structure in the IM System
Plants
0001 0002
Storage
0001
0001 0002
0002 0001
0001 0002
0002 0003
0003
locations
© SAP AG 1999
In an Inventory Management system without Warehouse Management, the various warehouses are
defined as storage locations.
Example: Plant 0001 Storage loc. 0001 High rack storage
0002 Bulk storage
Plant 0002 Storage loc. 0001 High rack storage
0002 Bulk storage
0003 Picking area
The stock quantities are managed in cumulative form at the storage location level.
Possible Structure with the WM System (1-1)
Scenario 1
Example 1
Plants
0001 0002
Storage
0088
0088 0088
0088
locations
Warehouse number 001 Warehouse number 002
Storage 001 002 001 002 003

001 002 001 002 003
types
© SAP AG 1999
Scenario 1, Example 1: One Storage Location per Plant in One Warehouse Number.
In this example, each warehouse is assigned directly to one storage location and one plant.
In each warehouse, the various storage areas are represented by storage types.
Possible Structure with the WM System (1-2)
Scenario 1
Example 2
Plants
0001 0002
Storage
0088
0088 0088
0088 0001
0001
locations
Warehouse number 001
Storage 001 002 003 004

001 002 003 004
types
© SAP AG 1999
Scenario 1, Example 2: It is possible to manage warehouses from different plants or different

company codes under one warehouse number.
Warehouse areas (that is, storage types) that are not managed by the Warehouse Management system
are defined in the Inventory Management system as storage locations (for example, storage location
0003).
Possible Structure with the WM System (2)
Scenario 2
Plant
0001
Storage 0087
0087 0088
0088 0003
0003
locations
Storage 001 002 003 004

001 002 003 004
types
© SAP AG 1999
Scenario 2: Several Storage Locations per Plant in One Warehouse Number.

You can assign any number of plant/storage location combinations to the same warehouse number to
indicate actual ownership of the stock.
When the goods movements between storage locations are initiated solely via IM postings, no further
customizing settings are required. You only need to assign the storage locations to the respective
warehouse number.
In this scenario, the system can no longer determine the storage location from the contents of the
fields Plant and Warehouse number automatically. When the system creates transfer orders for
deliveries or transfer requirements, it copies the storage location from the reference document. When
you create transfer orders without a reference document manually, you must enter the storage
location in addition to the plant.
Possible Structure with the WM System (3)
Scenario 3
Plant
0001
Storage 0090
0090 0088
0088 0092
0092
locations
Storage 902 004 005 100 916

902 004 005 100 916
types
© SAP AG 1999
For this scenario there are two examples:

y Movement of Stock from the Goods Receipt Area
y Material Staging for Production
The reason for this scenario could be to make the goods available for deliveries only after the goods
receipt processing has been fully carried out. This is possible by allowing deliveries to pick stock
only from storage location 0091.
Organization Structures in the Warehouse
S
T
W
A
A Goods Issue
G
R D I
E O N
H O G
O R
U
A
S R Goods Receipt
E
E
A
© SAP AG 1999
Door: A door in a warehouse can be used for both receiving and issuing goods. In Customizing it is
possible to restrict the area of usage to either receipt or issue. The door from which delivery takes
place is already defined in the delivery.
Material Staging Area: The Staging areas are intermediate areas in the warehouse in which the
goods are temporarily stored after unloading/before loading. In Customizing, these areas are
assigned to the corresponding doors.
Warehouse Level Data
Define Weights/ Define

Notifications &
Units of Measure Blocking
Messages
Logic
Assign
Allow
Region
Partial Picking
Code
Assign
Number Define
Control Data
Ranges Differences
© SAP AG 1999
storage types:
y Unit of Weight
y Unit of Measure default data
y Blocking Logic
y Error Messaging / Notifications
y Number Ranges
y Define Doors
y Handling of inventory differences
y Interfaces:
- Inventory Management
- Shipping
- Production
- Quality Management
Storage Type Level Data
Storage type Level
Activate Storage
Unit Management
Placement
Strategies
Activate Hazardous
Assign Inventory Material Handling
Methods
Removal
Activate Full Strategies
Removal
© SAP AG 1999
The characteristics of a storage type are defined using various indicators:

y control indicators for stock placement
(examples: placement strategy, mandatory confirmation, mixed storage, addition to existing stock,
capacity check, overdeliveries, hazardous material control).
y control indicators for stock removal
(examples: removal strategy, mandatory confirmation, complete stock removal, return storage,
zero stock check, negative stock).
y control indicator for inventory procedures
Copying a Warehouse
001 002
© SAP AG 1999
In WM, a default warehouse number is delivered with the standard system. The entries for this
organizational unit are usually used as the basis for prototyping. If you require several warehouses
for testing purposes or to define your company structure, it is often useful to copy an existing
organizational unit.
Copy the respective warehouse numbers using the organizational unit copier (transaction /nEC09).
You will need to then maintain number range data for the new warehouse numbers and activate the
respective plants / storage locations in which you want to use the new warehouse number.
Warehouse Management Structure: Unit Summary

z Describe the basic elements of the warehouse
structure
z Define possible warehouse structure scenarios
with and without Warehouse Management
© SAP AG 1999
Warehouse Management Structure - Exercises 1
Unit: Warehouse Management Structure

Topic: Organizational Elements in WM

• Change the name of your warehouse
• Verify your warehouse to plant / storage location assignment
• Create a new high rack storage type
• Create a new goods receipt interim storage type
• Create storage sections for these new storage types
Your company is implementing the R/3 Warehouse Management system.
It is your responsibility to maintain the customizing. You need to ensure
the flow of the warehouse data matches the business processes of your
warehouse.
In this exercise, you are setting up a high rack storage area and a
receiving area. You will review and change some administrative
information about the warehouse, create two new storage types and create
the supporting data for these new storage types.
1-1 Review and change some administrative information about your current warehouse.
Remember that a warehouse is first defined as part of the enterprise structure. The
warehouse is activated when it is assigned to the plant/storage location.
1-1-1 In the Enterprise structure, change your warehouse (1##) description to a

more appropriate description for your business.
1-1-2 Still within the Enterprise structure, check your warehouse assignment.
Your warehouse is assigned to which Plant / Storage Location?
Plant ______________ Storage Location ____________________
1-2 Once your warehouse has been defined, there are controls which you can set in WM
Customizing to have your warehouse perform within your required parameters. In
your warehouse, what values are set for the following parameters:
Default Unit of Weight: _______

SU management active: (on/off) _______________
1-3 Create a new storage type, ’015 – High Rack Storage Group##’ by copying the
current high rack storage type ‘001’.
The placement and removal controls should have the following characteristics:
Stock Placement control
stock placement strategy ‘next empty bin’
stock placement requires confirmation
activate SUT check
activate storage section check
Stock Removal control
stock removal strategy ‘FIFO’
stock removal requires confirmation
activate complete removal
return stock to same storage bin
1-4 Now create a new interim storage type,’ 802 – GR area for group ##’ by copying
storage type 902.
The placement and removal controls should have the following characteristics:
Stock Placement control
stock placement strategy ‘none’
allow for mixed storage without limitation
addition to stock is permitted
Stock Removal control
stock removal strategy ‘none’
negative stock will be allowed
propose post. change at storage bin
1-5 Create Storage Sections for your new storage types. Storage Type 015 will contain
two sections: 001 for Fast Moving items and 002 for Slow Moving items.
Remember that the Goods Receipt Storage Type 802 must have one storage section
(001 GR Area).
1-6 When you created the new storage type 015, you selected the option to activate the
SUT check. It is this setting that will verify that the SUT is allowed in the bin type
when you create the Transfer Order. You need to allow the SUTs E1 and IP into the
storage type 015. Still in customizing under Strategies → Activate storage bin type
search, add an entry assigning SUT E1 and IP to your new storage type 015.
Warehouse Management Structure - Solutions 1

Topic: Organizational Elements in WM
1-1
1-1-1 Tools → AcceleratedSAP → Customizing → Edit Project → SAP
Reference IMG → Enterprise Structure → Definition → Logistics
Execution → Define, Copy, Delete, Check warehouse number → Define
warehouse number
1-1-2 SAP Reference IMG → Enterprise Structure → Assignment → Logistics
Execution → Assign warehouse number to plant / storage location
Plant 1000 Storage Location 01##
1-2 SAP Reference IMG → Logistics Execution → Warehouse Management →

Master Data → Define Control Parameters for Warehouse Number
Default Unit of Weight: KG
SU management active: On

Master Data → Define Storage Type. Position on Warehouse 1##. Select
Warehouse 1##, Storage Type 001 and choose Copy As. Modify fields as required,
then Enter and Save.

Master Data → Define Storage Type. Position on Warehouse 1##. Select
Warehouse 1##, Storage Type 902 and choose Copy As. Modify fields as required,
then Enter and Save.
Master Data → Define Storage Sections → New Entries

Storage Type 015
Storage Section 001
Description Fast Moving
Storage Type 015
Storage Section 002
Description Slow Moving
Storage Type 802
Storage Section 001
Description GR Area

Strategies → Activate Storage Bin Type Search. Under Assignments, choose
Storage Unit Types to Storage Type. Choose New Entries.

Type 015
st
1 E1
nd
2 IP
Master Data
Contents:
z Storage Bin Data
z Material Master Data
© SAP AG 1999
Master Data: Course Overview Diagram

Logistics Execution
MasMaster
ter D Data 4 Delivery Processing 10
ata
Integration with
Conclusion 13
© SAP AG 1999
Master Data: Business Scenario
z Your company is a major producer of pumps.

Engineering has designed a new flywheel for the
chrome steel pump. Over the next units, this pump
will be integrated into the warehouse processes
and production area for sale of the final pump. You
must create the master data to support this effort.
© SAP AG 1999
Master Data: Topic Objectives
z Create storage bin data

z Create storage bin data using a template
© SAP AG 1999
Master Data
Warehouse
Material
Warehouse Structure Material
Warehouse number General data

Storage type Data/warehouse no.
Storage bins Data/storage type
© SAP AG 1999
The master data of the Warehouse Management system is divided into:

y Warehouse structure data (for example, capacity, fire-containment sections)
y Material data (for example, weight, hazardous material data, palletization instructions)
The characteristics of the warehouses and the materials are taken into consideration for all stock
movements.
Storage Bin Data
Warehouse no.: 001 Storage bin data

Storage type 001 Section
Storage bin: 01-02-02 Capacity
Storage bin type
Blocking indicator
Inventory data
Verification Data
Quant data
Material number
Stock quantity
GR date
Inventory data
Inspection Lot
SLED
© SAP AG 1999
Each storage bin is defined in the system by a master record. The master record contains the
following:
y The bin characteristics data (storage section, storage bin type, max. weight, blocking indicators)
is created when you create the storage bin master record.
y Bin usage and inventory information (number of quants, weight used, date of the last movement,
inventory data, blocking indicators) is automatically maintained by the system during a stock
movement.
Whenever a storage bin becomes occupied, the system creates a quant which contains:
y storage bin identification
y material identification (material number, plant, batch, stock category, special stock)
y movement data (for example, GR date)
y stock quantities (total, available, currently in transfer for stock placement or stock removal)
y inventory data
y blocking indicators
Creating Storage Bins Automatically
Warehouse number
Warehouse number
001
001
Storage type
Storage type 001
001 A01-10-01
A01-10-02
A01-10-03
A01-10-04
A01-20-01
.
Level .
01 to 04 .
A02-10-01
A02-10-02
A02-10-03
Row Stack .
A01 to A02 10 to 40 .
.
© SAP AG 1999
To define a range of coordinates, you must define:

y the location of the bins to be generated (warehouse number / storage type)
y the current number of the coordinate range
y the structure of the coordinates:
- template (shows the format of the bin coordinate)
- structure (shows how to increment)
- initial value (first coordinate / start value)
- final value (last coordinate / end value)
- increment (amount to be increased for each of the variable blocks)
y characteristics/features of the storage bins
y assignment to a storage section
y storage bin type
y max. weight
Define Sort Sequence for Placement / Removal
Storage type 001
Top view
Storage bin R R S S L L
Row
Sort Sequence 3 4 1 2
Sort field L L S S
R = Row (Aisle)
S = Stack
L = Level
without sort variable

with sort variable
© SAP AG 1999
With all of the stock placement / removal strategies, you can influence the search for a suitable
storage bin with the aid of a sort variable.
The sort variable helps the system to search for storage bins. The system sorts storage bins by the
sort variable first. If the sort variable has not been maintained, the system sorts by the storage bin
coordinate itself.
You normally define the sort variable before you create the storage bins.
Without the sort variable, the system fills the storage type row by row. For example, the system fills
the first row completely first, then the second row, then the third. This can result in a one-sided load
of the warehouse.
With the sort variable, the system fills the storage bins on a stack by stack basis for each row. When
the system selects bins for stock received in the warehouse, it fills the lowest level in each stack first,
then the second level in each stack, then the third level, and so on.
Master Data: Topic Objectives
z Extend a material master view for WM data
© SAP AG 1999
Material Data
General Data
Material number
Description
Weight
Base unit of measure
Order unit
Hazardous material number
...
Plant-Specific Data Warehouse No.-Specific Data

Requirements planning data WM unit of measure
Issue unit of measure Storage type indicator
Batch check requirement Storage section indicator
... Storage unit quantity
...
Storage Type-Specific Data

Fixed bin
Control quantity
Replenishment quantity
Max./min. per storage bin
Rounding quantity
© SAP AG 1999
The material data relevant for the Warehouse Management system is grouped as follows:
y general material data
y plant-specific data
y data specific to the warehouse number
y data specific to the storage type
Views in a Material Master Record
Basic data Purchasing

St
t
MRP Sales
Stock in plant/
Material
A Work
B
storage in plant master record scheduling
Quality
Accounting
assurance
Storage Forecast
Warehouse
Classification
management
© SAP AG 1999
Each user department has its own view of the material master record.
For each material type you can define which views of the material master record are possible.
For each user you can define which views of the material master records are to be
displayed/maintained.
Each user can define which views will be displayed when the material master record is
displayed/maintained.
The data in some views is assigned to specific organizational levels: plant, warehouse or storage
type level.
Screens in a Material Master
Material
Material
(Ind. sector)
(Material type)
(Reference)
Views Organizational Data screen(s)

- Basic data levels
- Purchasing - Plant
- Accounting - Storage location
- Warehouse - Warehouse no.
Management - Storage type
: Standard screen sequence (without preselection)

© SAP AG 1999
The material type on the initial screen is proposed during the transaction "Create special".
The industry sector can be preset on a user-individual basis. Additionally, you can suppress the
display of the industry sector on the initial screen.
The views and organizational levels can also be preset on a user-individual basis. The views
selection and organizational level screens can be removed from the standard screen sequence by
setting defaults in the material master.
Palletization Data
Warehouse 2
LE Quantity Un SUT
1 40 PC IP
25 PC E1
2
Transfer order
© SAP AG 1999
The system uses the LE (Loading Equipment) quantity in conjunction with the storage unit type to
propose how to pack a quantity onto loading devices upon stock placement.
Units of Measure
Base unit of measure Piece
Alternative UoM in the plant 4

(Issue/Order/Sales unit)
48
12
Carton
Alternative Pallet quantity
unit of measure
Box Palletization
© SAP AG 1999
The Warehouse Management system uses the following units of measure:

The base unit of measure (or stock keeping unit) is the basis for inventory management and
evaluation. Quantities in alternative units of measure are always converted to the base unit of
measure using the conversion factor.
The alternative units of measure are for inventory management (unit of issue), purchasing (order
unit), and sales (sales unit). These units of measure are defined at plant level.
Alternative units of measure that are specific to the warehouse number are:
- WM unit of measure
- Palletization data (storage unit type).
Master Data: Unit Summary

z Create storage bin data
z Create storage bin data using a template
z Extend a material master view for WM data
© SAP AG 1999
Master Data - Exercises 1
Unit: Master Data

Topic: Storage Bin Definition

• Create storage bin data
• Create storage bin data using a template
Your company is a major producer of pumps. Engineering has designed

a new fly wheel for the chrome steel pump. Over the next units, this
pump will be integrated into the warehouse processes and production area
for sale of the final pump. In this unit, you must create the master data to
support this effort.
In the first part of the exercise, you need to create a storage bin in the
Fixed bin / Picking area. This is the area where you will store the
finished pump.
In the second part of the exercise, you will create a range of bins using a
template for the storage type that was created in the prior unit.
Your warehouse number is 1##. Please remember to be careful and
create or change data only within your warehouse number.
1-1 In preparation for the sale of the finished pump, you must create the storage bin
where the pump will ultimately be stored and later picked for delivery.
1-1-1 In warehouse 1##, in the Fixed Bin Storage Type, create a storage bin Box-
##. Assign the bin to a storage section.
1-2 Now you wish to create multiple bins using a template for the storage type 015 that
you created in a prior exercise. In this area, you want to create 2 sequences of bins.
In the first sequence, you have small bins (E1) and in the second you have the
larger (P1) bins.
1-2-1 In the first section, you have 4 rows with 9 sections and 4 levels. You want
to create a range of bins for the coordinates ranging from A-01-01 to D-09-
04. These are the smaller bin type E1 bins with a weight limit of 1000 KG.
These bins are assigned to storage section 001.
How many E1 bins were created? _______
1-2-2 In the second section, you have 5 rows with 8 sections and 3 levels. These
bins have the coordinate range of E-01-01 through I-08-03. These are
larger bin type P1 bins with a weight limit of 2000 KG and they are
assigned to storage section 002.
How many P1 bins were created? ________
1-2-3 Display the empty bin list to verify you have E1 bin type in storage section
001 and P1 bin type in storage section 002.
Master Data - Solutions 1
Unit: Master Data

Topic: Storage Bin Definition
1-1
1-1-1 Logistics → Logistics Execution → Master Data → Warehouse →
Storage Bin → Create → Manually.

Storage Type 005
Storage Bin Box-##
Storage Section 001
1-2
Storage Bin → Create → Automatically. Select New Entries.

Storage Type 015
Sequence Number 001
Template ACNNCNNCCC*
Structure A BB CC*
Start Value A-01-01*
End Value D-09-04*
Increment 1 1 1*
Storage Section 001
Storage Bin Type E1
Maximum Weight 1000 KG
* Columns must be lined up

Enter. Select Environment → Create Bins. Create Online.
144 Bins are created.
1-2-2

Storage Type 015
Sequence Number 002
Template ACNNCNNCCC*
Structure A BB CC*
Start Value E-01-01*
End Value I-08-03*
Increment 1 1 1*
Storage Section 002
Storage Bin Type P1
Maximum Weight 2000 KG
* Columns must be lined up.
120 Storage Bins Created.
1-2-3 Logistics → Logistics Execution → Internal Whse Processes → Bins

and Stock → Display → Empty Storage Bins. Enter your warehouse
number and storage type 015. Change the number of storage bins to
display to 1000 You should see a list of bins for each section 001 and
section 002 with the appropriate bin types and weight in each section.
Master Data - Exercises 2
Unit: Master Data

Topic: Material Master

• Create Warehouse Management views for an existing material master
record
• Create a Warehouse Management / Storage Type view for an existing
material master record
• Set up user defaults for maintaining the material master in the future
For the new flywheel number that Engineering has designed, the material
master record T-BW01-## already exists; however, the WM view for the
flywheel has not yet been created. You must create the WM view for the
new flywheel and for the finished pump number T-MS-##.
In an effort to facilitate future material master maintenance, you want to
set up your user defaults for maintaining the material master.
2-1 You need to create the appropriate Warehouse Management views in the material
master in order to manage the materials within your warehouse.
2-1-1 Create the Warehouse Management views for the new flywheel, material
number T-BW01-##. The industry sector M and material type HALB
have already been established. Organization structures are plant 1000
and your warehouse number 1##. Purchasing has made an agreement
with your vendor that the material will be shipped either on industrial
pallets holding 50 pieces or Europallets holding 30 pieces. On receipt,
the flywheels should be directed to the Shelf Storage area and on
removal picked from the Shelf Storage area and addition to stock is
allowed.
2-1-2 Now create the Warehouse Management view for the finished pump T-
MS-##. The finished pump is moved from production to Fixed Bin
Storage. The material master must be created at the Storage Type level
so the fixed bin can be assigned. The industry sector M and material
type FERT have already been established. This material is being
created for plant 1000, your warehouse number 1## and your fixed bin
storage type (005). These pumps will come from your production
facility stacked on industrial pallets with 5 pieces each. When these
pumps are delivered from production, they are put into the fixed bin
storage, therefore you want to assign a stock placement and a stock
removal indicator of FIX. The storage bin you created in the first part
of this exercise, Box-##, is the final storage bin for these pumps. You
have capacity at this bin to hold a maximum of 50 pumps.
2-2 In the future you will only process material master records from the Warehouse
Management view for plant 1000 and your warehouse 1##. Create the material
master user defaults so the system will automatically default these values.
You only want to see the view selection window when requested. You always want
to see the organizational levels since you are working with various storage types.
Set the Industry Sector to M and hide it.
Master Data - Solutions 2
Unit: Master Data

Topic: Material Master
2-1
2-1-1 Logistics → Logistics Execution → Master Data → Material → Material
→ Create → Immediately

Material T-BW01-##
Select Views Warehouse Management 1 & 2
Organizational Levels:
Warehouse 1##
Stock Removal REG
Stock Placement REG
Addition to Stock On
LE Quantity 50;30
UM PC
SUT IP; E1
2-1-2
Material T-MS-##
Select Views Warehouse Management 1 & 2
Organizational Levels:
Warehouse 1##
Storage Type 005
Stock Removal FIX
Stock Placement FIX
LE Quantity 25
UM PC
SUT IP
Storage Bin Box-##
Maximum Bin Quantity 50
2-2 In the material create screen, select Defaults → Industry Sector. Set the Industry
Sector to M and choose Hide Industry. Select Defaults → Views. Page down to find
Warehouse Management 1 & 2. Select them and set View Selection so you only get the
screen when you request it. Finally, select Defaults → Organization Levels. Set the
Plant to 1000 and Warehouse to 1##. Do not set the Org/Prof field, so you will
continue to be prompted for organization level data.
Integration with Inventory Management
Contents:
z Inventory Management Interface
© SAP AG 1999
Integration with Inventory Management:

Logistics Execution

Int g
Inven eIntegration
ratio
n
with
5 Replenishment 11
t o
Inventory w i th
ry Ma Management
nage
ment
Conclusion 13
© SAP AG 1999
Integration with IM: Business Scenario
z The project team is responsible for customizing the

Inventory Management interface. An overview of
this interface is essential to understanding the
options for customizing.
© SAP AG 1999
Integration with Inventory Management: Objectives
z Define how the WM Movement Type and thus, the

interim storage type and bin are determined by a
movement type in Inventory Management
z Define the overall process of Goods Movements in

the WM system
© SAP AG 1999
Inventory Management/WM Interface
Stock in the Goods receipt

Inventory storage location
Management document
GR posting in Inventory Management
Quant Transfer
GR area requirement
Interim storage
Warehouse
Management Inside the warehouse
Quant in the Transfer

warehouse order
Stock placement in Warehouse Management
© SAP AG 1999
In addition to quantity and cost updates in the Inventory Management system, a GR posting results in
the following activities in the Warehouse Management system:
A quant is automatically created in the interim storage area for goods receipt, that is, the stock
quantity in Warehouse Management is the same as the quantity in Inventory Management (parallel
inventory management)).
A transfer requirement can be created automatically. This is used as an information help for stock
placement later on.
These automatic postings take place as a result of the Customizing settings.
Interim Storage Area Search
Movement type Inventory Management
Reference movement type
Movement type Warehouse Management
Storage type search
© SAP AG 1999
The movement type that is used for a material movement in the Inventory Management system,
together with other indicators, is linked to a reference movement type for the Warehouse
Management system.
With the reference movement type and other indicators, the system determines the following
information:
y movement type for Warehouse Management
y stock category of the quant to be generated
y indicator for generating transfer requirements
From the WM movement type then, the following information is determined:
y interim storage type and interim storage bin
y control indicator for processing, confirming and printing transfer orders
y special movement indicator for storage type search
Interim Storage: Bin Types
Warehouse Number
Movement Type
Dynamic
Ty Stor.bin FxdBn Dyn

Src
Dest Fix
e dB
Ret in
Pr
e-
de
fin
ed
© SAP AG 1999
In the case of goods receipts that have a reference to a purchase order, you want to be able to identify
the quants in the GR area according to the purchase order number. The quants are managed in the
GR area (interim storage type) in a bin whose coordinate is the same as the purchase order number.
This storage bin is created dynamically during the GR posting. Example storage bin: 4500000369.
If the quant is posted from Inventory Management without reference to a Purchase Order, the quant
can be directed to a predefined bin. A predefined bin is defined in the WM movement type table and
generated only once in the WM system with transaction LX20 (Create Bins for InterimStorage
Types). Example storage bin: GR area.
In the case of a fixed bin, the system will look to the material master to find the storage bin defined
for that material. If the fixed bin storage type is the same as the interim storage type, there is no
transfer order required for the movement; however, you must ensure that a fixed bin is assigned to
each material master at the storage type level. In this case, there are no WM-specific checks. In the
case of picking from a fixed bin where the storage type is the interim storage type, the quant is
removed from a fixed bin when the GI posting takes place.
Transfer Order Storage Type Search - Placement
Movement Type /
Transfer requirement type
Stor. type Stor. sect. Source bin

(-) Source item
902 001 GR area
St. type Stor. sect. Dest. bin

(+) Dest.
Dest. item
001 002 05-06-01
(3)
Stock placement strategy
(2)
Storage section search
(1)
Storage type search
© SAP AG 1999
With goods receipts, the source bin (interim storage bin) is assigned when the IM movement is
posted and the transfer requirement is created (see "Interim Storage Type Search"). This data comes
from the Movement Type.
When you create a transfer order using the transfer requirement, the destination bin in the warehouse
is assigned. The destination storage bin can be:
y entered manually by the user
y assigned directly by the system.
In the creation of the Transfer Order, the system will first determine the storage type for placement
using the placement indicator on the material master and the storage type search table. From the
storage type, the system will determine whether or not storage sections are being used. If so, the
storage section will be determined using the section indicator on the material master and the storage
section search table. Finally, using the stock placement strategy for the storage type, the system will
determine the bin for placement.
Transfer Order Storage Type Search - Removal
Storage type search

(1)
Stock removal strategy
(2)
Stor. type Stor. sect. Source bin

(-) Source item
001 002 05-06-01
Stor. type Stor. sect. Dest. bin

(+) Dest.
Dest. item
9XX 001 GI area
Transfer requirement /
Movement TYpe
Stor. type Stor. sect. Return bin
(+) Return item
001 002 05-06-01
Stock return control

+ Stock placement strategy
© SAP AG 1999
With stock removals, the system assigns the destination bin (interim storage bin for goods issues)
when the movement is posted in the IM system and the transfer requirement is created (see "Interim
Storage Type Search").
When you create the transfer order, the source bin is assigned. The source bin can be:
y entered manually by the user
y assigned by the system using the storage type search and removal strategy.
The storage section is not considered for stock removals. If picking areas are being used, the picking
area is considered.
If a quantity remains after complete stock removal from the bin, the system also assigns a return
storage bin.
TO Processing Overview
IM Goods movement MM - Mov.Type Ref. Mov. Type
WM WM - Mov.Type
Interim storage Transfer

type search requirement
TO processing
Storage type
search
Storage section search Storage bin type search
Storage bin
search
© SAP AG 1999
During a goods movement, the reference movement type is used as a key to convert the MM
movement type into a Warehouse Management movement type. The WM movement type defines the
interim storage type and interim storage bin.
The subsequent creation of a transfer order is influenced by:
y the movement type
y material-specific factors: stock placement and removal indicators, storage class, water pollution
class, stock category and special stock indicators
y the put-away and picking strategies for each storage type
As an option, you can specify a storage section control factor or a section search within a storage
type with material-specific section indicators, storage class and water pollution class
As an additional option, the system can check whether a particular storage unit type may be stored
in a specific storage bin or storage bin type.
Finally, using the strategy assigned for the storage type, the storage bin is determined and suggested.
Automatic Creation of Transfer Orders
IM
IM
Document
WM
Transfer
requirement
asynchronous Mail
Error
Transfer
order
© SAP AG 1999
It is possible to set up your system so that transfer orders are created automatically when you post
material documents in the Inventory Management system. When the system is configured for this
process, you create material documents in the normal manner in the IM system and the Warehouse
Management system subsequently creates the corresponding transfer requirements and posting
change notices.
The definition of the WM movement type determines whether the system will automatically create
transfer orders from the transfer requirements and posting change notices initiated in the IM system.
This process takes place in the background. If there are errors, the system can send an express mail
message to a specified user. The user can then process the error from within the message.
When you post a material document in the IM system, and movement types both “with” and
“without” automatic transfer order creation exist in that document, the system goes directly to the
screen to “create a transfer order for a material document”.
Integration with IM: Unit Summary

z Define how the WM Movement Type and thus,
the interim storage type and bin are
determined by a movement type in
z Define the overall process of
Goods Movements in the WM
system
© SAP AG 1999
Integration with Inventory Management - Exercises
Unit: Integration with Inventory Management

Topic: Integration with Inventory Management

• Verify the link between IM and WM movement types
• Change an existing WM movement type
• Customize a WM movement type
You have created Storage Type 802 for external receipts in your
warehouse. You now need to customize the system so that all Purchase
Order receipts and reversals are directed to this area.
In this exercise, verify the existing movement types and then modify the
WM movement types to fit the structure you created.
Remember to work only within your warehouse number!
1-1 Before you can modify the WM movement type to direct goods receipts to the
goods receipt area 802, you must verify the link between the IM movement type
and the WM movement type.
1-1-1 Compare the movement type 101 for a Purchase Order Goods Receipt to a
101 Production Order Goods Receipt.
Find the Reference Movement Type:

Movement Type Movement Indicator Reference Movement Type
101 B ______________________
101 F ______________________
1-1-2 Now find the WM Movement Type:

Movement Type Movement Indicator WM Movement Type
101 B ______________________
101 F ______________________
1-2 Update the 101 WM movement type for purchase order receipts so that new
receipts are directed to the 802 Goods Receipt area. Also modify the 102
movement type so that reversals will come from storage type 802. Production
receipts will continue to be directed to storage type 901.
1-3 Now test your configuration. Your supplier delivers 100 pieces of material T-
BW01-##. Enter a goods receipt for the purchase order for storage location 01##.
Search for the Purchase Order number using the material number.
1-3-1 Enter a Goods Receipt for 100 pieces of the material T-BW01-##.
1-3-2 Display stock balance. If your stock shows in storage type 802, your
configuration is correct.

1000 0100 802
1-4 Process the TR by converting it to a Transfer Order and confirming it.

Integration with Inventory Management - Solutions
Unit: Integration with Inventory Management

Topic: Integration with Inventory Management
1-1-1 SAP Reference IMG → Logistics Execution → Warehouse Management →

Interfaces → Inventory Management → Define Movement Types. Choose
Assign WM movement type references to IM movement types. Position on:

Movement Type 101
Value updating X
Qqty updating X
Movement Type Movement Indicator Reference Movement Type

101 B _______101_____
101 F _______101_______
1-1-2 SAP Reference IMG → Logistics Execution → Warehouse Management

→ Interfaces → Inventory Management → Define Movement Types.
Choose LE-WM Interface Inventory Management.
Movement Type Movement Indicator WM Movement Type
101 B ________101____
101 F ________103______

Activities → Transfers → Define movement types. Position on your warehouse
and movement type 101. Select and choose the entry. Modify the Src Storage
Type to 802. Also modify the 102 movement type Dest to 802.
1-3
Purchase Order, Order, Other Transactions → Enter Goods Receipt for
Purchase Order. Select the match code for Purchase Order Number and
choose M:Purchasing Documents for Material. Enter the material T-
BW01-##. Select the entry and post the goods receipt for a quantity of 100
pieces.
1-4 Logistics → Logistics Execution → Inbound Process → Goods Receipt for

Purchase Order, Order, Other transaction → Putaway → Create Transfer Order
→ by Material.
Favorites → Confirm Transfer Order, One Step
Goods Receipt
Contents:
z The Goods Receipt Process:
Influencing factors and options for customizing
© SAP AG 1999
Goods Receipt: Course Overview Diagram

Logistics Execution

Integration with
GooGoods
ds R Receipt 6 Physical Inventory 12
eceip
t
Conclusion 13
© SAP AG 1999
Goods Receipt: Business Scenario
z In the model company, the process for goods

receipt is such that a Transfer Order is created
immediately following the Inventory Management
receipt. In this unit, the participant will customize
the goods receipt transaction to fit the business
practice then test the process.
© SAP AG 1999
Goods Receipt: Objectives
At the completion of this unit, you will be able to:
z Customize the goods receipt activity so that the

Transfer Order process immediately follows the
Inventory Management process
z Customize the storage type and storage section
search so materials are put away into the
appropriate storage bin
z Explain the printing customizing options for
Transfer Orders
© SAP AG 1999
Capacity Check
Option 1
Check
Option 2 By
Weight
Check
By
Quantity Storage Type
Option 3
Check
By Palletization
© SAP AG 1999
Capacity check is activated at the storage type level.

Weight. The weight of the material that is being transferred to the storage bin is checked against the
remaining weight capacity of the bin.
Maximum quantity for a bin in the storage type: For each storage type you can define the maximum
quantity of material that can be stored in a bin. This is often the method used with the Fixed Bin
Strategy.
Storage Unit Type: You can stipulate that the storage bin can contain only one standard storage unit
type. This is taken from the first SUT field on the material master record.
With strategies B (Bulk) and P (Storage Unit Management), the maximum bin occupancy or stack
height depends on the bin type and the SUT. For bulk storage, capacity checking is defined in the
block definition.
Capacity Usage Based on the Material
Storage Bin 01-01-01

Total Capacity = 100
Material 4711
Capacity Usage = 11
9 x 11 = 99
Remaining capacity = 1
© SAP AG 1999
The storage of materials in a bin can be based on a neutral indicator. The basic prerequisites for
these capacity checks include:
y Each storage bin must have a dimensional and unit-less capacity
y Each material can use a specific capacity for each unit of measure
y Each storage unit type can have a specific capacity for each storage unit
Example 1: Capacity usage based on Material
y The material is managed in the base unit of measure “pieces” and has a capacity usage of 11 per
piece.
y Storage Bin 01-01-01 has a capacity of 100.
- Nine pieces of this material can be stored in storage bin 01-01-01. This leaves a remaining
capacity of 1. This capacity check is advantageous if you can stack materials as desired into
this storage bin. It could also replace capacity checks 2 and 3 if there are different batches that
result in mixed storage.
Capacity Check based on the SUT

Material 4711
SUT Capacity = 12
8 x 12 = 96
Remaining capacity = 4
© SAP AG 1999
Example 2: Capacity usage based only on SUT (storage unit type)

(Must be using SUM in this storage type)
y Eight wire baskets can be stored in storage bin 01-01-01. This leaves a remaining capacity of 4.
This capacity check is advantageous when the SUTs are next to each other and the materials can
be removed one at a time from each container.
Capacity Check based on material and SUT (1)

Material 4711
Capacity Usage = 11
SUT Capacity = 12
(8 X 11) + (1 X 12) = 100

eg cubic feet
Remaining Capacity = 0
© SAP AG 1999
Example 3: Capacity usage based on the sum of the material and SUT (must be using SUM in this
storage type)
y Eight pieces can be stored in storage bin 01-01-01 on an E1 pallet. This leaves no remaining
capacity for the bin.
Capacity Check based on material and SUT (2)

Material 4711
Capacity Usage = 11
SUT Capacity = 12
(4 X 11) + (4 X 12) = 92
eg cubic feet
Remaining Capacity = 8
© SAP AG 1999
Example 3: Capacity usage based on the sum of the material and SUT (must be using SUM in this
storage type)
y If the material is stored in the bin with one piece per E1 pallet, 4 pallets will fit in the bin (44 + 48)
and a remaining capacity of 8 exists. This capacity check is advantageous if the pallets are stacked
on top of each other and the thickness of the pallet must be taken into consideration.
Before you make the first stock placement, you need to define the type of capacity check and the
capacity usage of material and storage unit types. Changes that are made to these parameters
afterwards cause automatic changes to storage bins, storage units and quants. If you make changes in
the operational system, you must run report RLS10200 to adjust the occupied capacities for bins,
storage units and quants.
Active Capacity Check: There is a switch that can be set at the storage type level so that the
capacity check is integrated into the bin search. When searching for an empty bin without active
capacity, the system assumes that a bin found through customizing can be used and the capacity
check happens after the search. If using active capacity, the search process may take longer because
each bin is examined individually.
Handling Differences
GR posting
50 pcs
TO item
SRC GR Target 50 pcs
DEST HRS
Confirm Target 50 pcs

Actual 40 pcs
Diff. 10 pcs
40 pcs
Difference Difference posting
10 pcs inventory management
© SAP AG 1999
If a difference is determined during a stock transfer, you can enter this into the system during
confirmation.
When the transfer order item is confirmed, the difference is posted to the storage bin that has been
specified for the difference indicator.
In a second step, the differences are cleared in the Inventory Management system either manually or
using the batch input procedure.
When differences are processed in the system, the quantity of stock in the Inventory Management
and Warehouse Management systems remains the same.
Difference Indicator
Differences can be directed to:
A pre-defined coordinate
(Eg: Storage Type 999, Bin: Differences)
A dynamic coordinate
(Eg: Storage Type 999, Bin = TO Number)
The source storage bin of the movement

type for the TO item
© SAP AG 1999
You can specify a predefined coordinate by entering

y the interim storage type for differences in the Typ field
y the identifier of the storage bin coordinate in the Diff.bin field
You can specify a dynamic coordinate by
y entering the interim storage type for differences in the Typ field
y selecting the TO column for the interim storage type
- If a discrepancy occurs during the confirmation process, the system generates the coordinates
for the storage bin based on the transfer order number.
You can specify that the difference is posted to the source storage bin of the movement type for the
transfer order item by selecting the SrcBn column. If the source storage type does not allow negative
stock balances, the system checks whether the stock balance is going to be negative. For more
information, see Negative Stock Check.
- If you use this type of difference indicator, the transfer order item cannot contain a return.
Furthermore, you cannot use this difference indicator for stock removals from bulk storage.
2 Step Confirmation
2 Second confirmation
when goods are
First confirmation placed in the goods
when goods are issue area
1 picked from the bin
© SAP AG 1999
Business Background:
With the two-step confirmation procedure, the complete confirmation process is split into two
separate steps. The first step is the confirmation of the removal from the source bin. In the goods
issue process, this would be the bin from which the material is picked. Then the goods are transferred
to the destination bin or area. When they are put away at the destination bin, the second confirmation
for the putaway is done. In the goods issue process, this would be the goods issue area.
Customer Benefits
This reflects the physical process in the warehouse and is important when working with radio
frequency devices. The source bin is available for putaway as soon as the first confirmation is
complete. Two-step confirmation reflects real-time work in the SAP system. As a result of the
separation of the picking and putaway process for every transaction, improved performance for
delivery processing is achieved. The first confirmation is often done on the transfer order item level;
at this point the delivery is not updated. The second confirmation is done for the complete transfer
order; then the delivery update is performed.
Additional information:
A transfer order split is done if one step and two step confirmation occur in one single TO document.
Even with two step confirmation switched on, it is possible to confirm the first and the second step in
one step. Differences handling is possible for each step.
Pre-allocated Stock Check
Goods Receipt
area Reserve storage
Production storage area

XX
Pre-allocated
stock check Bin
Bin XY
XY
Pre-allocated stock
Bin XY Mat. XX Qty 20 pcs
© SAP AG 1999
If the pre-allocated stock check is active for a movement type, the system checks during stock
placement if the material has an entry in the pre-allocated stock table. By pressing a function key
you can display all storage bins for which the material has been pre-allocated. You decide during TO
creation if and how you want to fill the pre-allocated storage bins.
Storage Type Search Control
Goods Receipt High rack storage

area
X
Material
Fixed Bin Picking Area
Y Stor. type ind. 00

3
Material
FIX-Y
Material Y
Storage type
indicator 003
© SAP AG 1999
In the material master record it is possible to define a storage type indicator for stock placements.
In the storage type search table you can define a default vector of 30 storage types.
Access Optimization: When storage type indicators are used and several materials with different
stock categories (such as special stock) exist, the number of entries in the storage type search table
can become very large. To decrease the number of these entries, you can define an access strategy
for the storage type search table using the access strategy table.
Storage Section Search Control
Goods Receipt
area
Section 001 Section 002
X
Material
L”
d. “LL
in
.s ect.
Stor
Y
Fast-moving Slow-moving
Material items items
(LLL = Storage section indicator

Mat. Y for slow-moving items)
Stor. sect. ind.
LLL
© SAP AG 1999
In the material master record you can define a storage section indicator.
In the storage section search table you can define a default/check vector of 30 storage sections.
The storage section is checked only if the storage section check in the storage type is active. If the
storage section check is activated, the system will search for a storage bin defined in the storage
section search table. If the check is set to X, the system will also check whether a stock placement is
allowed for this table. If the check is set to Y, the system will allow a manual override at the time of
TO creation, even if the section is not defined in this table.
Variable Control by Storage Unit Type
Goods Receipt
area
1
SUT S Small bins
Std. pallet
P
SUT I
Industrial
pallet
Mat. X Large bins
100 pcs IP
50 pcs S1
© SAP AG 1999
In the material master record you can define up to three different palletization instructions for the
material.
If the SUT (storage unit type) check in the storage type is active, the system will first check if the
SUT is allowed in the storage type. The system will then check whether the SUT is allowed for that
storage bin type. You can define up to 30 SUTs in a storage type and up to 30 storage bin types for a
storage unit type.
As an option, you can enter *** as an allowed SUT in the customizing table. This entry means that
all the SUTs are allowed in this storage type. The system then searches for a suitable storage bin for
the SUT based on the allowed bin types per SUT.
Special Movement Indicator
Goods receipt posting
Special movement
indicator
Interim storage area Fixed bin storage
Fixed bin
storage: FIX- Mat
Inside the
warehouse
High rack storage
© SAP AG 1999
Using the special movement indicator, you can ensure that the GR posting creates a quant in a
storage type in which a fixed bin is defined for each material.
The quant is placed directly into this storage bin and no transfer requirement is created. The interim
storage bin is the final storage bin for the quant.
The special movement indicator is set either on the warehouse management view of the material
master record or can be set at the time of the Inventory Management movement. This indicator is
used to determine the warehouse management movement type, and thus the interim storage type for
the creation of the quant. Using this indicator, different WM movement types can be assigned to one
IM movement type.
Stock Placement Control
Storage Type Control
Placement Strategy
Changeable Destination Bin
Allow Mixed Storage
Allow Addition to Stock
Activate Storage Unit Management
Activate Storage Unit Type Check
Assign Capacity Check Method
© SAP AG 1999
You need to define important control indicators at the storage type level that determine the material
flow (putaway and picking activities) and the way inventory is handled in each storage type. These
control indicators are only meaningful when they are implemented in a particular combination. Not
all indicators are allowed in every situation. Once defined, some of these indicators can only be
changed with great caution. Some control settings can only be implemented based on strict
prerequisites. For example, storage unit management can only be implemented if no stock at all
exists within a storage type. Certain capacity checks can only be activated if all factors have been
configured that pertain to that particular type of capacity check. You should be especially cautious
when changing control indicators that pertain to stock placement strategies.
There are indicators in the storage type record that can be overwritten in the movement type. That is
to say, certain functions, such as confirmation requirement for putaway and picking or allowing
posting changes in the same bin, are valid in general for a particular storage type, but not for a
particular posting (for example, goods receipts from production do not need to be confirmed).
Stock Placement Strategy
Manual Bin
Fixed Bin (F)
Near Fixed Bin (K)
Addition to Existing Stock (I)
Storage Unit Type (P)
Open Storage (C)
Next Empty Bin (L)
Bulk Storage (B)
User Exit
© SAP AG 1999
Stock placement strategies are used to search for an appropriate storage bin within a storage type
when goods are to be placed into storage.
For each storage type, a stock placement strategy is defined that serves to optimize warehouse usage
and the flow of materials.
Manual Bin
© SAP AG 1999
The system does not use a strategy to search for a storage bin. The user enters the destination storage
bin when the transfer order is created. This procedure is used if the search for a storage bin is done
on-site by the warehouse worker. First the warehouse worker searches for the appropriate storage
bin. Then the data about the storage bin (for example, storage type and coordinates) is entered into
the transfer order.
We recommend that you use "no strategy" for mixed storage and interim storage types.
Since no strategy is used, you leave the Stock placement strategy field blank in the storage type
record.
Fixed Bin (F)
AA
FIX-AA FIX-BB FIX-CC
FIX-DD FIX-EE
Material AA
Stor. type 005
Fixed bin: Fix-AA
© SAP AG 1999
With stock placement strategy “F” (fixed bin assignment), the system reads the fixed bin that is
defined for the storage type in the material master record.
If no fixed bin is defined, an error message appears.
Characteristics combination:
y addition to existing stock allowed
y capacity check
Near Fixed Bin (K)
AA BB
AA
FIX-DD FIX-EE
Material AA
Stor. type 005
Fixed bin: Fix-AA
© SAP AG 1999
Strategy K refers to stock placement of a material into a storage bin NEAR the fixed bin of the
material. So that if your fixed bin is full, the system would recommend a bin in close proximity to
the fixed bin.
Strategy K will assign a destination bin in a storage area that serves as a goods buffer area for fixed
bin storage. Although the fixed bin storage and reserve storage are in the same physical unit, they
are defined as different storage types.
The same conditions must exist for both storage types. The coordinate structure for bins in both
storage types must be the same with the same sequence. The bins located above one another in the
fixed bin storage area and the reserve area must have the same coordinates in the shelf and aisle
areas, but different level numbers.
You can customize so that put away is attempted first in the fixed bin storage area, then in the
reserve area. Strategy K only searches in the reserve area and does not check the fixed bin area.
Search first occurs within the same stack, then right beside the same stack, then the aisle on the
opposite side, then neighboring aisles.
Addition to Existing Stock (I)
AA
AA
© SAP AG 1999
With stock placement strategy “I”, the system looks for a storage bin where the material already
exists.
If the system cannot find such a bin or if the capacity of the bin will be exceeded, it looks for the
next empty bin.
y capacity check
y no mixed storage
Pallet Strategy (P)
Standard Standard Standard

Bin type PA pallet pallet pallet SUT: P2
02-10-01
Bin type PA Industrial pallet Industrial pallet SUT: P1
02-09-01
Standard
Bin type PA pallet SUT: P2
02-08-01
industrial pallet
© SAP AG 1999
With stock placement strategy “P”, the maximum number of quants is defined dependent on the bin
type and storage unit type.
The first stock placement determines how the storage bin will be divided as well as which and how
many quants can be placed into the other sections of the shelf.
If you assign the same bin type and a different storage unit type to the same section key, is also
possible for you to putaway more than one type of pallet into the same storage bin.
y SUT check
y mixed storage
Storage Bin Section Definition
Storage bin P-001
A
2
11 22 33
A
A B
B
© SAP AG 1999
Rack storage is frequently designed so that a shelf section can accommodate different storage unit
types (SUT). For example, a shelf section may accommodate a number.
You define the maximum number of quants for each combination of storage bin type and SUT.
The first time goods are transferred into the storage bin the system determines what type of bin
sectioning is assigned to the shelf section. The system also determines which and how many SUTs
can be transferred into the positions (compartments) of the shelf sections.
The section indicates where exactly a quant is stored within the bin. You can recognize the section
by the last positions following the ‘\‘ in the bin coordinate. You can define up to 99 sections per bin.
Open Storage (C)
Storage type 003
Y B
Material X
Bin XXX Bin YYY
Material F
© SAP AG 1999
With stock placement strategy “C”, the first available storage bin in the storage section is always
proposed, unless the bin is blocked.
It is possible to enter another storage bin manually.
Next Empty Bin (L)
High rack storage (top view)
Stock placement sequence without sort field

Stock placement with sort field
© SAP AG 1999
With stock placement strategy “L”, the system assigns the first empty bin for stock placement
(random storage). This strategy is especially suited for high rack storage and shelf storage.
The sort sequence of the storage bins can be influenced by a sort field (for example, cross-line
placement).
Bulk Storage (B)
XX
Row 02
Bin: A05-01 A05-02 A05-03 A05-04

Quant: XX XX ZZ
SUT: IP S1 S1
© SAP AG 1999
General characteristics of stock placement strategy “B”:

y customer-individual definition of storage bins (for example, row / row block)
y definition of the capacity (stack height) based on the storage unit type and special material
characteristics
y one SUT per line
y compressed stock placement possible
y blocking for further stock placements upon first stock removal, with automatic unblocking upon
final removal
y partial quantities and mixed storage possible
y time limit for FIFO (set placement block based on time limit)
y variable control possible via the block storage indicator in the material master record
y SUT check
Transfer Order and Multiple Printing
Print Report: RLVSDR40

Multiple Processing and
Two- step picking: RLKOMM40
SAPSCRIPT form
Header
Transfer order
Main
section
Footer
© SAP AG 1999
Transfer Orders are printed using Print Report RLVSDR40.

You can sort and print transfer order items from several transfer orders using report RMKOMM40
with the multiple processing task.
In the standard system, various forms are available for printing individual transfer orders, combined
picking lists and transfer orders from posting change notices.
All transfer order printing is available for barcode scanning.
Setting Up Printing
Create the spool indicators for each warehouse number
Create the print indicators for each warehouse number
Assign the printer to the movements
Assign the printer to the storage type / picking area
Assign the print codes to the movement types
Assign the print reports to the warehouse numbers
Define the print control for multiple processing
© SAP AG 1999
The spool code defines data to be passed on to the spool file. This data includes number of copies to
be printed, dataset name of the printout in the spool system, whether to print immediately and
whether to delete after print.
The print code defines such things as the SAPscript form that is to be used for printing and the spool
indicator.
A Transfer Order always contains a movement type. Depending on the movement, you can assign
different printers and spool codes. You can also suppress printing of the Transfer Order if required.
You assign a print code to a movement type.
You can designate a specific printer for each storage type or picking area.
Each warehouse number must also have a print report. SAP recommends that you use a separate
print report because in most cases, modifications are required in the delivered print report. The
procedure for this is contained in the program documentation for RLVSDR40.
Before you begin the table maintenance, you should look at each table individually and see which
ones are required. Then, maintain the tables in the sequence given.
Printing user exits MWMD0001 + MWMD0002
Goods Receipt: Unit Summary

z Customize the goods receipt activity so that the
Transfer Order process immediately follows the
Inventory Management process
z Customize the storage type and storage section
search so materials are put away into the
appropriate storage bin
z Explain the printing customizing options for
Transfer Orders
© SAP AG 1999
Goods Receipt - Exercises
Unit: Goods Receipt

Topic: Customizing the Goods Receipt

• Customize the goods receipt activity so the Transfer Order process
immediately follows the Inventory Management process
• Customize the storage type and storage section search functions so
materials are put away into the appropriate storage bin
In your company, the process for a goods receipt is such that a Transfer
Order should be created immediately following the Inventory
Management Goods Receipt. When the materials are received, the
receiving personnel enter the goods receipt into the IM system with
reference to a Purchase Order. The Transfer Order is created dynamically
in the background and printed. When the materials have been put away
to their final location, the Transfer Order is then confirmed. Received
materials are to be directed to storage type 015. Materials on the smaller
(E1) pallets are directed to the front of the warehouse (section 001) while
the larger (IP) pallets are directed to the rear of the warehouse (section
002).
It is your responsibility to configure and test this process in the SAP
System. Please remember to work only within your warehouse.
1-1 When material is received into your warehouse, it is placed into storage type 015.
Because this is the process for the majority of your materials, you would like to
accomplish this without using a storage type or storage section placement indicator.
The material you are testing with is T-BW04-##. You must first verify the material
master data.
1-1-1 Look at the material master record and verify that the storage section and
storage type indicators are blank. Also note the palletization data.
Stock Placement _______
Storage Section _______
Palletization _______________________
_______________________
1-2 Now you want to customize the process. In the first step, you will set the Transfer
Order to be created automatically in the background following the Goods Receipt.
Then you will customize the storage type and storage section search functions to
place the material into the appropriate storage type and section.
1-2-1 Add an entry in the LE-WM Interface table for your warehouse and
movement type 101 with reference to a purchase order so the TO is created
in the background when the transaction is run. If there is an error, you want
to send a mail message to help you troubleshoot the problem. You want to
find an existing entry in this table, copy it and modify it for your warehouse
only.
1-2-2 To direct the materials to storage type 015, you must make an entry in the
Storage Type Search table. You want materials to be first placed into 015.
If there is not available space, you want the materials to be directed first to
high rack storage type 001, then alternatively to shelf storage type 002.
Make the appropriate table entry.
1-2-3 You must now make an entry in the Storage Section Search table. When
materials arrive, you want them to go first to the smaller bins in the front
rows of the warehouse (section 001), then to the larger bins in the back of
the warehouse (section 002). Make this entry in the storage section search
table.
1-2-4 When you created the bins for storage type 015, in section 001, you created
bin type E1 and in section 002, you created bin bype P1. E1 represents the
smaller bin sizes and P1 represents the larger bins. When small pallets are
received, they will be directed to the smaller bins in section 001 first. The
larger pallets will not fit in section 001, so they will be directed to section
002. These entries are found in the Storage Bin Type Search table.
1-3 Now test your configuration. There is a purchase order that exists for material T-
BW04-##. Find the purchase order and process the goods receipt for a quantity of
80. You will have 1 pallet of 50 (SUT IP) and 1 pallet of 30 (SUT E1). If you have
configured the warehouse correctly, a TO will be automatically created and the
materials will be directed to storage type 015 with the pallet of 30 going to storage
section 001 and the pallet of 50 going to storage section 002. You will need to
confirm the TO before the materials are available.
1-3-1 Process the goods receipt for a purchase order for Material T-BW04-##,
quantity 80.
1-3-2 Display the Transfer Order and note the following information:
Item 1: Source Storage Type _____ Storage Bin ______________ Section ____
Destination Storage Type _____ Storage Bin ______________ Section ____
Item 2: Source Storage Type _____ Storage Bin ______________ Section ____
Destination Storage Type _____ Storage Bin ______________ Section ____
The storage section is not displayed on the first page of the Transfer
Order display. If you select the bin, you can see the storage section.
1-3-3 Confirm the TO.

Goods Receipt - Solutions
Unit: Goods Receipt

Topic: Customizing the Goods Receipt

→ Change → Immediately. Enter material T-BW04-##. Select the
Warehouse Management 1 view for your warehouse number 1##.
Stock Placement BLANK
Storage Section BLANK
Palletization: 50 PC IP
30 PC E1
1-2
1-2-1 Tools → AcceleratedSAP → Customzing → Edit Project → Goto → SAP
Reference IMG → Logistics Execution → Warehouse Management →
Interfaces → Inventory Management → Define Movement Types → LE-
WM Interface inventory management. Find the row for all warehouse
(***), Reference movement type 101, Movement Indicator B, WM
Movement Type 101. Select the row and enter Copy As. Specify the target
entry by entering your warehouse number 1##, and in the column IM ->,
enter A. Also enter an A in the Mail column to send mail in case of an error.
Enter and Save.
→ Strategies → Activate Storage Type Search → Determine Search
Sequence. Position on warehouse 1##, activity E. Modify the storage type
sequence of the first entry to read:
W… Oper TyIn S S Stor… W… Ref. S. 1 ST 2 ST 3 ST

1## E 0 0 015 001 002

→ Strategies → Activate Storage Section Search → Determine Search
Sequence. Select New Entries.
Whn Ty SecI Clas WPC 1st 2nd 3rd
1## 015 001 002
1-2-4 SAP Reference IMG → Logistics Execution → Warehouse

Management → Strategies → Activate Storage Bin Type Search
1-3-1 Logistics → Logistics Execution → Inbound Process → Goods
Receipt for Purchase Order, Order, Other Transactions. Search for
the Purchase Order number by selecting the matchcode M:Purchasing
Documents for Material and entering the material number T-BW04-
##. Verify the quantity of 80. Select OK and Save.
Purchase Order, Order, Other Transactions → Putaway → Display
Transfer Order → By Material. Enter your warehouse number 1## and
material T-BW04-##.
1-3-3 Favorites → Confirm TO, One Step.
Goods Issue
Contents:
z Customizing the Goods Issue Process
© SAP AG 1999
Goods Issue: Course Overview Diagram
Course Overview 1 GGoods

oods Issue 7
Issue
Logistics Execution

Integration with
Conclusion 13
© SAP AG 1999
Goods Issue: Business Scenario
z In the model company, the process for goods issue

is such that a Transfer Order is created in the
foreground, immediately following the movement in
Inventory Management. In this unit, the participant
will customize the transaction to fit the business
practice then test the process.
© SAP AG 1999
Goods Issue: Objectives
z Customize the goods issue activity so that the

Transfer Order in the Warehouse is created in
the foreground, immediately following the
Inventory Management process and the goods
are picked from the optimal location.
© SAP AG 1999
Full Stock Removal Options
Transfer to another bin
Return to same bin
Retain at destination
© SAP AG 1999
When stock is removed from a storage type for which "complete removal" has been defined,
sometimes a smaller quantity remains after the required quantity is picked. The remaining quantity is
returned to a storage bin via a "return" sub-item in the transfer order.
With the Warehouse Management (WM) component there are three methods for returning quantities
to a storage bin:
y Stock remains at the destination bin, that is, the storage bin to which it is being transferred
y Stock is returned to the source bin, that is, the storage bin in which it was originally stored
y Stock is transferred to another storage bin
- When stock is returned to another storage bin, the system uses the stock placement strategy
specified for the storage type. You can change the default that the system proposes for the
return storage bin in the transfer order.
Stock Removal Control
Storage Type Control
Removal Strategy
Confirmation Control
Allow Negative Stock
Allow Zero Stock Check
Activate Full Removal
Activate Rounding Quantity
Post Change to Same Bin
© SAP AG 1999
Again, you define important control indicators at the storage type level that determine the material
flow (putaway and picking activities) and the way inventory is handled in each storage type. These
control indicators are only meaningful when they are implemented in a particular combination. Not
all indicators are allowed in every situation. Once defined, some of these indicators can only be
changed with great caution.
Also, some control indicators for storage types are mutually exclusive; legal or internal directives
may not allow some combinations of indicators. In these cases, an error message will appear if a
combination is not allowed. You should carefully check and test any new combinations before they
are released in the production system.
Stock Removal Strategy
FIFO (F)
LIFO (L)
Partial Quantities (A)
Large/Small Quantities (M)
Cascadable with Rounding (M)
Fixed Bin Picking (P)
SLED (H)
Stringent FIFO (***)
User Exit
© SAP AG 1999
A stock removal strategy is the procedure used to search for a suitable quant for stock removal
within a storage type.
For each storage type you define a stock removal strategy (FIFO for example) that serves to
optimize warehouse usage and the flow of materials.
You can define the stock removal strategy Stringent FIFO to apply to more than one storage type.
FIFO (F)
Goods Receipt:
4-1 3-1
5-1
3-1
Goods Receipt = Current Date

Goods Receipt = Document Date
Goods Receipt = Posting Date
© SAP AG 1999
With this picking strategy the system proposes the oldest quant in the storage type as the quant that
should be transferred.
The system generally calculates the "age" (length of time in storage) of a quant on the basis of the
goods receipt posting date from the Inventory Management (IM) application component. The system
automatically sets the goods receipt date in the quant and in the transfer requirement for every goods
receipt posting in IM. When the transfer order is created, this date is copied over to the quant record
of the destination storage bin.
You can accept the goods receipt date that the system sets or you can enter a different date.
Regardless of whether the system proposes the goods receipt date or you enter a different date, the
date is used to calculate the age of the quant. This date influences the sorting sequence for each
material.
LIFO (L)
5-4
5-3
Last In, First Out

5-2
5-1
© SAP AG 1999
For some warehouse organizations or sectors of industry, the FIFO principle cannot be used. For
example, in the building material industry material that is being stored temporarily, that is, material
that is going to be transferred immediately out of the warehouse, is stacked on material that is
already in the warehouse. If the FIFO strategy is used during picking, the material lying on top must
be moved so that the warehouse worker can reach the material with the oldest goods receipt date.
The LIFO strategy is provided for such situations. When the system searches for a quant to remove
from stock, it always selects the last quant that was placed into stock.
Partial Quantities First (A)
100 pcs
100 pcs 80 pcs
Order
amount
100 pcs 30 pcs
© SAP AG 1999
With stock removal strategy “A”, the system compares the requirement quantity with the largest bin
quantity in the storage type. If the requirement quantity is the same or larger (for example, because
an entire pallet is required), stock is removed from this bin. If the requirement quantity is smaller, it
is removed from a pallet with a partial quantity.
When the system searches for a quant, it follows these steps:
y If the required quantity in the transfer order is the same or greater than the quantity of a standard
storage unit, the system attempts to remove a standard storage unit from stock.
y If no standard storage units are available, partial storage unit quantities are used.
y If the required quantity in the transfer order is less than the quantity of the standard storage unit,
the system first tries to remove partial storage unit quantities from the stock.
y If no partial storage unit quantities are available, full storage units are broken.
Large/Small Quantities (M)
Quantity to be removed
smaller / larger than
control quantity
Fixed bin storage High rack storage
Small quantity Large quantity

Stock removal strategy: M
© SAP AG 1999
With stock removal strategy “M”, only an amount smaller than or equal to the control quantity
defined in the material master record can be removed from the storage type.
If the requirement quantity is larger than the control quantity, the system searches for a quantity in
the next storage type (default vector in the storage type search table).
Cascadable through Quantity Rounding - M
1 - 19 = Piece
Storage Type=005
Control Qty = 19 Material Master:
Palletization Qty = 100
20-100 = Box
Storage Type = 001
Control Qty = 99 Multiples of 100 = Pallet
Rounding Qty = 20 Storage Type = 007
Rounding Qty = 100
© SAP AG 1999
Quantity rounding is meaningful in combination with picking strategy “M”. If pallet quantites,
carton quantities or individual quantities are to be picked from a chain of storage types, this can be
done by defining the rounding quantity and control quantity in the material master record.
First, in customizing, switch on the round off quantity field at the storage type level.
For the first storage type of the search sequence, (pieces) enter the number of pieces in a carton
minus 1 as the control quantity. For requirement quantities greater than or equal to a carton, the
system will skip over this storage type.
For the second storage type of the search sequence, (cartons) enter the pallet quantity minus 1 as the
control quantity and the rounding quantity equal to the carton quantity. For requirement quantities
greater than or equal to one pallet, the system skips this storage type and generates transfer order
items for complete carton quantities only.
In the third storage type, you do not enter a control quantity, but the rounding quantity is equal to the
pallet quantity. The system then generates transfer order items for full pallets only. For remaining
quantities, the system returns to the storage type sequence and picks from the first or second storage
types.
Note: the system does not round to zero so if there are not enough individual pieces in the first
storage type, a carton will be broken. Also, if the requested quantity is larger than the available
quantity in a bin, it is not rounded. If a carton plus a few individual pieces are located in a bin in the
second storage type, and the requirement quantity is greater, the bin will be emptied.
Picking Strategy for Fixed Bins (P)
AA
BB
FIX-DD FIX-EE
Material AA
Stor. type 005
Fixed bin: Fix-AA
© SAP AG 1999
Picking Strategy P allows the bin from the material master to be posted, even if the bin has no stock
quantities, thus driving the on hand balance of the fixed bin to a negative quantity.
y Stock Placement Strategy ‘F’
y Negative Stocks are allowed
Shelf Life Expiration Date (H)
IM
4711 4711
Goods receipt area 6/10 4/3
Goods receipt 20 Feb
Material 4711
Expiration date 21 March
Goods receipt OK 4711

7/13
Material 4711
Expiration date 13 July
Stock removal
strategy “H”
Goods issue Goods issue area
on 22 February
Material 4711
4711 SLED Control List
3/21 Type Bin Mat. Rem.Time
001 A 4711 - 12 days
Material 4711 001 B 4711 - 9 days
Minimum ..... ... ....... - 6 days
remaining time
150 days
© SAP AG 1999
For materials managed with shelf life expiration date (SLED), the expiration date is noted in the
quant data when the goods are received. At that time the system checks whether the SLED entered is
allowed or not.
By using stock removal strategy “H”, you ensure that materials with the fewest days remaining
before the expiration date are removed from storage first.
A report is also available to select and list materials in the warehouse that respond to a user-defined
remaining time before a given expiration date. This is known as the shelf life expiration date (SLED)
control list.
For materials that are managed in batches, the processing of materials that are to be removed from
stock can be handled using the general batch search task.
Posting Changes
Contents:
z Stock Transfer: Logical vs
Physical
z Bin to Bin Movements
z Change in Stock Category
z Material to Material/Batch to
Batch Transfer
z Initiate Post Change from WM
© SAP AG 1999
Posting Changes: Course Overview Diagram

Logistics Execution Post Changes
Overview 2 Posting
Chan g
in 8
ges

Integration with
Conclusion 13
© SAP AG 1999
Posting Changes: Business Scenario
z In day-to-day warehouse activity, it is often necessary

for warehouse workers to move inventory from one
bin to another, whether combining inventory,
rearranging shelves or correcting errors. For this
activity, we need to be able to move quants from one
bin location to another.
z There are also processes in IM which create posting
change notices in the warehouse. These scenarios
include release from Quality Inspection or Blocked
Stock, material identification changes and corrections
to batch-managed materials. Warehouse workers
need to be able to process these activities, using
posting change notices.
© SAP AG 1999
Posting Changes: Objectives
z Recognize when an inventory movement will

create a posting change notice in WM
z Process bin to bin movements within the
warehouse
z Demonstrate how to process a posting change
notice in WM in the foreground
z Demonstrate how to configure the
system so that posting change
notices can be initiated in WM
© SAP AG 1999
Stock Transfer / Transfer Posting
Stock Transfer Distribution Center
Materials Warehouse
Physical movement
Unrestricted Use
Transfer Posting
In quality inspection
“Logical” movement
© SAP AG 1999
Although postings are made in both cases, simple “transfer postings” differ from “stock transfers” in
that transfer postings do not usually also involve a physical material movement; instead, simply the
stock type, batch number, or material number is changed.
Further examples of transfer postings are postings recording release from quality inspection or the
transfer from blocked material into unrestricted stock, a change in the stock category of the material
Bin to Bin Transfer
Trans. order
without
reference
Transfer order
Confirm
TO Material available
© SAP AG 1999
To transfer stock from one storage bin to another storage bin within the same warehouse, you
manually create and confirm a transfer order for the material to be moved. A transfer requirement is
not needed.
Since the total quantity of stock in the warehouse remains the same, stock movements that take place
within the same warehouse number do not require the use of the Inventory Management system.
Create TO from Stock List
Clear Bins / Bin areas
Group together
Supply to Pick Areas
Transfer when capacity reached
Transfer for change in classes in storage type
© SAP AG 1999
The new report ”Stock Transfer” allows the creation of Transfer Orders from a list of bin stock.
The following tasks can be performed from this report:
y Clear bins or bin (for example, because of maintenance work or for other reasons).
y Group together stocks that are dispersed throughout the warehouse (consolidation).
y Supply stocks to a picking area.
y Transfer stock as soon as a specified capacity has been reached.
y Transfer stock when there has been a change in the storage classes in a storage type.
Material to Material / Change in Batch
1994
“Mild Cheese” “Sharp Cheese”
A A
Batch Batch
© SAP AG 1999
A stock transfer from material to material requires that both materials are managed in the same base
units of measure.
A stock transfer from material to material can be necessary if a material changes over the course of
time. It no longer matches the data defined in the material master, but rather fits the criteria of
another material master number. This typically occurs in the chemical and pharmaceutical
industries.
Use the same transaction to change the batch identification of a material. Enter the same material
number, but change the batch information.
Posting Change: Material Number
Transfer posting in Inventory Management

Material A to Material B (100 pcs)
Posting change Example: Posting change

area notice
Material A
Quant A 100 - to Item 1 A 100 -
Material B Item 2 B 100 +
Quant B 100 +
Storage type 001 Posting change transfer order
Item 1 Mat. A
Src 001 001 01-01-01

Dest 922 001 PC area
Item 2 Mat. B
Src 922 001 PC area

Dest 001 001 01-01-01
© SAP AG 1999
A posting change or stock transfer is first posted in the Inventory Management system as a “transfer
posting”. As a result, the system creates a posting change notice and two quants in the posting
change area (a logical interim storage area).
You process the posting change in the WM system by creating a transfer order for the posting change
notice.
You can post the posting change quantity to the original bin or to another storage bin.
Stock Transfer/Transfer Posting (II)
Company code Company code
Plant Plant
Storage Location Storage Location
© SAP AG 1999
Physical stock transfers can occur at three different levels:

y Company code to company code
y Plant to plant
y Storage location to storage location
Such a stock transfer consists of a goods issue from the issuing point and a goods receipt at the
receiving point. You can post stock transfers in one step or two.
To transfer material company code to company code, you use the transaction plant to plant, but the
plants are assigned to different company codes. In this instance, two accounting documents are
generated, one for the sending plant and one for the receiving plant.
Stock Transfer / Posting Change: Plant to Plant
Plant 1 Plant 2 Plant 1 Plant 2
Storage Storage
0088 location 0099 0088 location 0099
Ware-
001 002 Warehouse 001
house
Stock Removal Stock Placement Posting Change
© SAP AG 1999
A plant-to-plant transfer posting in the Inventory Management system can result in a posting change
within a warehouse number.
If stocks for two separate plants are managed within the same warehouse number, a transfer posting
in the Inventory Management system results in a posting change within the warehouse number (in
the WM system).
However, if the two plants are managed in two separate warehouse numbers, the transfer posting
results in a stock removal from the one warehouse number and a stock placement into the second
warehouse number.
Posting Changes During Stock Placement
Tr. requirement
50 pieces
Reserve storage
GR area
50 pcs
GR posting A Q
50 pcs
A Q
Posting changes Posting change

area
(Release from
quality inspec.) A Q -100
Material A A +100
100 pcs
© SAP AG 1999
To release materials from quality inspection, you can carry out a transfer posting in the Inventory
Management system or make a usage decision for an inspection lot in the Quality Management
System.
Afterwards, you create a transfer order for the posting change notice in the WM system. This is used
to convert the material quants (possible on a material document basis) with stock category Q.
If a transfer requirement for the stock placement is still open, this is also updated by the posting
change.
Depending upon the set-up, it is possible for the system to create transfer orders automatically in the
background.
Again, the posting change quantity can be posted to the original bin or to another storage bin.
Transfer Posting: Initiated in WM
WM IM
Posting Posting
Change Change
Automatic Update
© SAP AG 1999
The transaction “Transfer Posting in WM and IM” will process posting changes for quants entirely
from within WM. The entire quant must be selected.The system then performs all necessary
processes in Inventory Management.
With this program, no posting change notice is created in Warehouse Management so you can carry
out certain posting changes directly as a one-step process.
Customizing Posting Changes WM/IM
Stock
WM IM
B
Movement Movement
Type Type B B
C
Stock Stock Special Special

Category Category Stock Stock
Source Destination Source Destination
Quality to Unrestricted Consignment to Own
© SAP AG 1999
The transaction is possible for the following posting change transactions:

y Convert stock category between quality inspection, blocked stock and unrestricted-use stock
y Convert special stock consignment to own restricted stock and back
y Convert individual customer stock to own stock and back
y Convert special stock returnable transport packing to own stock and back
y Convert project stock to own stock and back
For active Quality Management components, posting changes (transfer postings) are still carried out
first in Inventory Management and subsequently processed as posting change notices in Warehouse
Management.
Posting Changes: Summary

z Recognize when an inventory movement will
create a posting change notice in WM
z Process bin to bin movements within the
warehouse
z Demonstrate how to process a posting change
notice in WM in the foreground
z Demonstrate how to configure the system so that
posting change notices can be initiated in WM
© SAP AG 1999
Posting Changes - Exercises 1
Unit: Posting Changes

Topic: Bin to Bin Movements

• Process bin to bin movements within the warehouse
In day to day warehouse activity, it is often necessary for warehouse

workers to move inventory from one bin to another, whether combining
inventory, rearranging shelves or correcting errors. For this activity, we
need to be able to move quants from one bin location to another.
Within the warehouse, there is a movement type ‘999’ defined for bin to
bin movements. This movement type allows you to move freely from
one bin to another without reference to any other document and without
affecting IM.
This first section of this exercise is two-part. In the first part, you will
move one material within the warehouse from one bin to another. In the
second part, you will move several materials from one bin to another
using a list. When you use the list, you want to create a variant for the
display for your use in the future.
1-1 Move a quant from a bin in storage type 007 to a bin in storage type 001 by creating
a TO without reference.
1-1-1 Look at the Bin Stock per Material for material T-BW08-##. Note several of
the quants in Storage Type 007.
ge Type ge Bin Stock
1-1-2 You want to move one quant from storage type 007 to storage type 001 (high
rack storage). Create a Transfer Order without reference and move the
material from storage type 007 to storage type 001 into an available bin.
1-1-4 Display the Bin Stock per Material and note the change.
ge Type ge Bin Stock
1-2 You have just been notified that the maintenance department needs to fix some of
the shelving in Storage Type 007 Section 002 area. You must select all materials in
the Storage Type 007 Section 002 and move them to Storage Type 007 Section 001
while this maintenance occurs.
1-2-1 Look at the function Create Transfer Orders from List. You want to select
those materials that are in Section 002, but the Section is not visible from the
current list display. Change the display list format so the section is visible.
You can remove other information that is not relevant as you wish (for
example, Special Stock Number). Save the new display format as a variant
with the name Group-##.
1-2-2 Using the Create Transfer Orders from List function, create the appropriate
Transfer Orders to move the material in Storage Type 007, Section 002 to
Section 001 of the same storage type. Transfer the quants in the foreground
and choose to confirm the TO immediately.
1-2-3 Refresh the list to see the effect of the movements.
Posting Changes - Solutions 1

Topic: Bin to Bin Movements
1-1
Stock → Bin Stock per Material
Transfer → Create Transfer Order → No Source Object.

Movement Type 999
Requested Quantity (from 1-1-1)
Enter. Enter the Source information from 1-1-1 (Source Storage Type and Bin) and
enter 001 in the Destination Storage Type and press enter again to let the
system find an appropriate bin for placement.
1-1-3 From the Create Transfer Order: Initial Screen, select Transfer Order →
Confirm → Transfer Order. Alternatively, select Favorites → Confirm
TO, One Step.
Stock → Bin Stock per Material
1-2
Transfer → Create Transfer Order → From Stock List.

Storage Type 007
Movement Type 999
Select Current Display Variant. Select Storage Section from the right side
of the display and choose the single arrow pointing to the left. Select any
fields as you wish from the left and move to the right to remove them from
the display. When you have finished, select Copy. Select Save Display
Variant and save your changes under Group-##, TO List Display. Exit the
list.
1-2-2 Execute the TO from Stock List again as above, but this time enter Group-
## in the Display Variant field. Select all the lines from storage type 002
then select Stock Transf.frgrnd.

Storage Type 007
Storage Section 001
Confirm Immediately Select
1-2-3 Refresh

Topic: Transfer Posting – Material to Material

• Process a Material to Material Posting Change
Transfer Postings are movements within the warehouse that can be either
‘physical’ (moving a material from one place to another) or ‘logical’
(changing the identification or characteristic of a material). These
Inventory Management Transfer Postings cause Posting Change Notices
to be created within the warehouse. Examples of IM Transfer Postings
that cause posting change notices include inventory releases from Quality
Inspection or Block Stock, material revision changes that change the
identification of a material, or changes and corrections to a batch
managed material. In this exercise, you will change the identification of a
material and process the resulting posting change notice in the
foreground.
2-1 You have a quantity of 100 pumps material number T-BW-## in your warehouse.
Engineering notifies you that 25 of these pumps have been retested and are now to
be identified as T-MS-## pumps.
2-1-1 Look at the stock balances for the materials T-BW-## and T-MS-##.
Material Stor Type Available For Putaway Pick Qty

T-BW-## 015

T-MS-##
2-1-2 Execute the Transfer Posting – Material to Material to change 25 pumps

from material number T-BW-## to T-MS-##.
2-1-3 Display the Stock Overview again for both materials.

T-BW-## 015
922
TOTAL

T-MS-## 922
TOTAL
2-1-4 Process the Posting Change that was created in the warehouse.
2-1-6 Display the WM Stock Overview again.

T-BW-## 015
TOTAL

T-MS-## 005
TOTAL

Topic: Transfer Posting – Material to Material
2-1
2-1-1 Favorites → Warehouse Management Stock Overview. (Note: While you
do have an inventory balance for T-BW-##, there is no inventory yet for T-
MS-##.)
2-1-2 Logistics → Logistics Execution → Internal Whse Processes → Post
Change → Via Inventory Management → Enter Posting Change.

Movement Type 309
Plant 1000
Receiving Material T-MS-##
Material T-BW-##
Quantity 25
2-1-3 From the Enter Transfer Posting: Initial Screen select Environment →
Stock Overview → Stock Material. To see the WM inventory, select the
line, then select Environment → WM Stocks.
Change → Via Inventory Management → Transfer Order → Create →
From List of Posting Change Notices. Display the posting change notices
for your warehouse. Select the line and choose Create trans.order. Select
the line for Stock in Storage Types, then choose Quant List. Select quants as
appropriate up to the quantity of 25 and indicate that quantity in the field
provided. Then choose Process in the foreground. Choose enter (for each
quant) and save.
2-1-5 Favorites → Confirm TO, One Step

Topic: Posting Changes Initiated in WM

• Customize a WM movement type to initiate a posting change in WM
• Perform a Posting Change in WM and have the system create the
required IM documents
Occasionally in the warehouse, you have the requirement to change the
status of a quant--for example, to change a quant from Unrestricted Status
to Blocked Stock. You want to configure SAP to allow you to move
materials to Blocked Stock from within the warehouse without creating a
posting change notice in WM.
3-1 You want to process movements into and out of Blocked Stock, initiating those
movements from within the warehouse. You will create two new WM movement
types and customize the IM interface for posting changes to allow this transaction
to occur within the warehouse.
3-1-1 Create two new WM Movement Types (943, 944) by copying 309 with the
following changes:
Allow manual TO creation
Allow TO to be confirmed immediately
Propose Confirmation
3-1-2 Define the control for the posting change activity from Blocked Stock (S) to
Unrestricted Use (Blank). Also define the control from Unrestricted Use to
Blocked Stock.
3-2 Test your configuration by converting a quant from Unrestricted Use to Blocked
Stock from the WM Posting Change Bin Stock function.
3-2-1 Before you begin, note your stock situation.
Material StorType Available For Putaway Pick Quantity

T-BW-##
3-2-2 Now execute the transfer posting from within WM, converting a quant
of the T-BW-## pumps from Unrestricted to Blocked Stock.
3-2-3 What TO number is generated? ____________
3-2-4 Check the stock overview again.
T-BW-##

Topic: Posting Changes Initiated in WM
3-1

→ Activities → Transfers → Define Movement Types. Position on your
warehouse, movement type 309. Select 309 and choose Copy As. (Repeat
for movement type 944.)

Movement Type 943; 944
Manual TO Creation Not Allowed Not selected
TO Item can be confirmed immediately Selected
Propose Confirmation Selected

→ Interfaces → Inventory Management → Define Posting Changes.
Select New Entries.

Warehouse 1##
WM Movement Type 943
IM Movement Type 343
Stock Category Source S
Stock Category Destination (Blank)
Warehouse 1##
WM Movement Type 944
IM Movement Type 344
Stock Category Source (Blank)
Stock Category Destination S
3-2

Movement Type 944
Material T-BW-##
Plant 1000

Change → Bin Stock → Other Posting Changes. Select a quant and choose
Post Change.
3-2-3 Display Log to see the TO that was created.
Stringent FIFO (***)
Storage Type Search:
WH Act TypIn C S Class WPC Ref SL 001 002 003 (Stor Types)
100 A 001 002 ***
100 A FIX 005
100 A REG ***
© SAP AG 1999
It is generally assumed that only one picking strategy is allocated to each storage type. However, a
strategy based on the storage type is not usable in all sectors of industry.
In WM, it is possible to remove stock according to the FIFO principle by taking into account all
quants within a warehouse. In this case, the system does not scan individual storage types in
sequence but it proposes the oldest quant in the entire warehouse as the quant to be removed from
the warehouse. The system does not take into account the picking strategies specified for the
individual storage types. This would lead to inconsistencies.
Some storage types should be excluded from the stringent FIFO strategy, otherwise incorrect picks
would result. For example, the interim storage area for differences should be excluded from the
stringent FIFO strategy. The stringent FIFO strategy is set or switched off in the table Exclusion of
storage types from Stringent FIFO.
Goods Issue: Summary

z Customize the goods issue activity so that the
Transfer Order in the Warehouse is created in
the foreground, immediately following the
Inventory Management process and the goods
are picked from the optimal location.
© SAP AG 1999
Goods Issue - Exercises
Unit: Goods Issue

Topic: Customizing the Goods Issue

• Customize the goods issue activity so that the TO creation progrm is
called immediately following the Inventory Management transaction
A Goods Issue to a Cost Center is often referred to as a ‘Miscellaneous

Issue’. Typically, these types of issues are done in the warehouse when
other departments are requesting materials outside of regular production
or maintenance; for example, materials that are stocked in the warehouse,
but not consumed by the production process. These materials are issued
from the warehouse and expensed to a cost center.
When you process a goods issue, you want to be able to combine the
Inventory Management and Warehouse Management activities so that
immediately following the IM transaction, the Transfer Order program
comes into the foreground. During the stock removal, you want the
system to look first in your storage type 015 for available inventory. If
there is no stock in storage type 015, then you want the system to search
throughout the other storage types for the oldest quant. The user will
make the final decision about which quant to select.You want to process
the TO online in the foreground and then confirm the TO as a separate
step.
It is your responsibility to configure and test this business process.
Remember to work only within your warehouse!!
1-1 When materials are requested from outside departments, you first process the issue
in IM and then follow through with the WM transactions. You want to customize
the system to follow the business scenario outlined above. You will be testing with
material T-BW04-##.
1-1-1 Check the material master record and verify the Stock Removal indicator.
Stock Removal: _________________
1-2 Now configure the system to match the process.
1-2-1 First, you must find the Reference Movement Type for the Goods Issue 201.
IM Movement 201 – Reference Movement: ____
1-2-2 Add an entry in the LE-WM Interface table for your warehouse and
movement type 201 – Goods Issue to a Cost Center so the TO program is
called to the foreground when the IM transaction is run. You want to find
an existing entry in this table, copy it and modify it for your warehouse
only.
1-2-3 Now you want to modify the storage type search sequence so that the
system will search first in storage type 015 for an available quant. If there is
no material available in 015, then you want to search throughout the
warehouse for the oldest available quant. Customize the storage type search
sequence for stock removals to fit this scenario.
1-3 Now test your configuration.

1-3-1 Before you begin, check your stock situation for T-BW04-##.
ial ype able utaway Quantity

04-##
1-3-2 Issue 100 of material T-BW04-## to cost center 1000.

1-3-3 Process the TO in the foreground. During the processing of the TO, list the
quants and choose one from the list.
1-3-4 Confirm the TO as a separate step.
1-3-5 Check your stock situation once again.

04-##
Goods Issue - Solutions
Unit: Goods Issue

Topic: Customizing the Goods Issue
1-1
→ Display → Display Current Status. Enter material T-BW04-##. Select
the Warehouse Management 1 view for your warehouse number 1##.
Stock Removal BLANK
1-2
1-2-1 Tools → AcceleratedSAP → Customzing → Edit Project → Goto → SAP

Interfaces → Inventory Management → Define Movement Types →
Assign WM movement type references to IM movement types. Position on
Movement Type 201, Quantity Updating (X), Value Updating (X).
IM Movement 201 – Reference Movement: 201
→ Interfaces → Inventory Management → Define Movement Types →
LE-WM Interface inventory management. Position on Warehouse number
***, Reference movement type 201. Select the row and enter Copy As.
Specify the target entry by entering your warehouse number 1##, and in the
column IM ->, enter X. Enter and Save.
→ Strategies → Activate Storage Type Search → Determine Search
Sequence. Position on warehouse 1##, activity A. Modify the storage type
sequence of the first entry to read:
W… Oper TyIn S S Stor… W… Ref. S. 1 ST 2 ST 3 ST

1## A 015 ***
1-3

Other Transactions → Enter Goods Issue.

Movement Type 201
Plant 1000
Cost Center 1000
Material T-BW04-##
Quantity 100
1-3-3 When you save, you are now in the TO Processing screen. Select Enter.
Choose Stock Figures. Enter the quantity for removal from each quant and
Save.
Production Integration
Contents:
z WM Staging
z Customizing Production Integration
z Kanban Replenishment
© SAP AG 1999
Production Integration: Course Overview Diagram

Logistics Execution
Warehouse Management Prod
3 uc Integration
Production 9
Structure Integ tion
ratio
n
Integration with
Conclusion 13
© SAP AG 1999
Production Integration: Business Scenario
z In your company, you replenish the production

area from the warehouse. You need to examine
different possibilities for accomplishing this
replenishment.
© SAP AG 1999
Production Integration: Topic Objectives
z Describe the replenishment strategy for

WM Staging
z Set up master data and customizing for
processing WM Staging
© SAP AG 1999
Scenario for WM Staging
WAREHOUSE STRUCTURE 0xx
R
E
C
E
I
V 902 003 002 001
I
N
G
005
100 901
PRODUCTION LINES -->
916
Warehouse 100 Storage Location 0100 Shipping
© SAP AG 1999
In this example, the Production Area is managed within a WM-relevant Storage Location.
Production Order Process Review
Production Warehouse Inventory

Planning Management Management
Create Production Order
Release Production Order
Stage Components Transfer Requirement
Transfer Order
Confirm TO
Confirm Production Order Backflush Components
Transfer Requirement Goods Receipt for

Finished Assembly
Transfer Order
Confirm TO
© SAP AG 1999
The production order process has many steps from the creation of the production order through the
putaway of the finished assembly or sub-assembly. Typically, many people are involved in the
process. It is possible to automate several of these steps. It is important that the company’s business
process is understood so that the appropriate steps are automated.
Production Supply Area
PSA = WM001
Work
Center B3
Work Center A1
Production Supply Area
Work Center Master Storage Location
© SAP AG 1999
Production supply areas (PSAs) are used for material replenishment and are situated directly on the
shop floor in the production department. The PSA groups work centers near production storage bins
based on the material staging methods.
The PSA is defined for the storage location and assigned in the work center master data.
Control Cycle
Material
Plant
Supply Area
Control Data: Destination Data:
Number of KANBANs Warehouse Number

Kanban Quantity Storage Type
Storage Bin
Staging Indicator
Storing Position
© SAP AG 1999
The control cycle record is made up of the plant, production supply area and material and determines
for the WM-PP interface the production storage bin and the type of material staging that is used. The
production storage bin is defined by the whole key: warehouse number, storage type and bin.
You can also define a control cycle without specifying the material. This general entry is valid for all
materials in the supply area for which no control cycle has been defined.
The control cycle establishes how and to where a material is to be supplied within a production
supply area.
Material Staging Indicators
Production
Order
Pick Parts
Crate Parts
Release Order Parts
Manual Staging
© SAP AG 1999
Pick parts are provided in the quantities requested as specified in the production order. These parts
can be provided in a physical storage bin or in the dynamic storage bin for the Production Order.
For this type of material staging, transfer requirements can be created:
y automatically when the production order is released
y manually.
Crate parts are ordered manually when a crate is almost empty.
For Release Order parts, the transfer quantity is calculated based on the planned quantities of
components of selected, released orders. The stock situation in the production area and the
replenishment storage types are included in this calculation.
Set the indicator to Manual Staging if you want to handle the process manually.
Production Storage Bins
PR Bin-1001
PO 6000378
A
You can define the

A separate storage bin for
dynamic storage bin
production supply is
“PRODUCTION ORDER”
defined for each material
in the control cycle for
and control cycle.
pick parts.
© SAP AG 1999
For production supply, you can define a storage bin as a physical or dynamic location.
Production storage bins that are used for material staging are determined based on the control cycle.
Material Supply
Transfer
Requirement
Production Order
Components Transfer
Order
Materials
Staged
© SAP AG 1999
Planning function
The transfer requirement (TR) does not block materials, but notifies warehouse management that a
particular material is needed on a certain date in a specified quantity at a specified production storage
bin.
Request for Material Staging
Production workers request the needed materials with a transfer requirement. The TR can be created
from within the Production Order function (Goto > WM Picklist or Functions > WM Material
Staging > Proceed ) or from within Logistics Execution (Outbound Process > Goods Issue for Other
Transactions > Prepare Production Supply > For Production Order/Crate Part/Release Order Part).
Warehousing personnel transfer the material based on a transfer order created from the TR.
The availability check in the production order ensures the availability of materials at the storage area
level.
You can control automatic transfer order creation within the Production Scheduling Profile in
Customizing.
Decreasing the Quantity during TO Creation
You can only decrease

the quantity for pick
4711 / 300 lbs
parts.
When you create a TO,

01/01 the available quantity is
calculated and the TO
quantity is optionally
TRANSFER
decreased by the same
REQUIREMENT
Mat: 4711
- TRANSFER
ORDER
amount.
900 lbs Examples:

Mat: 4711
To: 100 01/01 600 lbs - minimum use
From: 001
01-01-01 - material change
To: 100
01/01 - workstation change
- previous overdelivery
© SAP AG 1999
The unrestricted available quantity can be established dynamically.

This later point in time allows more current information than if it were determined at the time of the
request for materials.
In the Production Scheduler Profile, you can set the indicator “Confirmed Quantity for TR Creation”.
Setting this indicator will cause the TR to be created for the confirmed quantity instead of the
requirement quantity of the component.
Supply to Production Storage Bins
4711 / 300 lbs
4711 / 300 lbs
01/01 Storage
TRANSFER
ORDER
Material: 4711 600 lbs
From: 001 01-01-01
To: 811 01/01
WP 1
© SAP AG 1999
A transfer order is created based upon the transfer requirement.

The transfer order:
y determines the source bin based upon the strategy used to select the needed material
y is the actual instruction for the physical stock transfer
y moves the quantities in the system
y determines whether the quantity will be decreased (optional).
After the TO is confirmed, the material becomes available at the destination bin.
Usage posting
4711 / 300 lbs
4711 / 300 klgs
03/01 05/01
01/01
PSA1
PSA2 PSA3
WS 1 WS 2
WS 5 WS 6
WS 3 WS 4
© SAP AG 1999
The final step in the material staging process is to post a goods issue for consumption. When a
production order is completed, the materials have been removed from the production storage bins in
the warehouse and the final product has been fully assembled, it is still necessary to balance the
stock quantities in the IM and WM systems.
You post the use of materials to the database either by "backflushing" with the completion
confirmation or directly in the IM system. This posting is necessary to reduce the stock quantities in
the production storage bins of the WM and IM systems.
Since the transfer requirement for the production order was created far in advance of this goods issue
posting, the materials are delivered in a timely manner to the production storage bins. You post the
actual goods issue in the IM system (or in the PP system) after the product has been assembled in
production.
Since the production storage bin was noted in the production order when it was released, the material
usage posting reduces the quantity in the production bins (in the system) and no further action is
required in the WM system.
System Definition
Define a Production
Storage Type
Create the Production

Supply Area
Define a Movement Type
Assign Movement Type to

the Production Storage Type
Create the Production

Storage Bins
Define the Control

Cycle Records
Warehouse
Activate the PP Switch
Management
Customizing
Customize the Production
Profile (Optionally)
© SAP AG 1999
The physical production bins are defined in the Warehouse Management system.
If all materials are staged as pick parts to a collective storage bin or dynamic coordinates are used,
generally, only one material-independent control cycle per production supply area is sufficient.
Distinctive Features for Repetitive Orders
No defined release time.

The request is made from
the removal list.
The usage posting is based

on the release of the current
bill of materials.
There are
no dynamic coordinates.
© SAP AG 1999
The high flexibility of the processes necessary to pick materials directly for serial orders requires
extremely complex organization.
The timing of material supply should be organized as follows:
y Early enough to carry out the physical supply using the WM system on time
y Late enough to avoid charges that are relevant to material supply (location, material, etc.)
Especially when many changes must be made, it is recommended that you use “crate parts” as a
material staging type.
Standard Reports
Material Stock at
Production Storage Bin
List of Control Cycles
WM-PP Evaluation Report

(Storage Bin Selection)
Analysis of Production
Orders
© SAP AG 1999
Evaluation of the Production Storage Bins per Storage Type:

List of Control Cycles (RLLS4100): Provides a list of control cycles assigned to your warehouse
based on your selection criteria.
Material Stock at Production Storage Bin (RLWMPPC1): Overview of quantity situation in
Production Storage Bins.
WM-PP Evaluation Report (RLWMPPC3): This report provides an overview of the production
storage bins. A traffic light icon displays the status of the respective storage bins depending on the
stock situation. This makes it possible to identify critical situations more quickly. More detailed
information is available in the report documentation.
Analysis of Production Orders (RLWMPPC4): This report evaluates PP orders from the WM view.
A traffic light icon displays critical situations that result from discrepancies between reservations and
the corresponding transfer requirements. More detailed information is available in the report
documentation.
Production Integration: Topic Objectives

KANBAN within WM
KANBAN processing in WM
© SAP AG 1999
Scenario for KANBAN Replenishment
KANBAN 1
Storage Location 0001
KANBAN 2
WAREHOUSE STRUCTURE 901 150

R
E
C 001
E 003 002
I
V 902
I
N 005
G 007 200
916
Warehouse 100 - Storage Location 0100 Shipping
© SAP AG 1999
In this example, KANBANs are managed in their own storage location that is not WM-relevant. The
KANBAN storage location must be different from the WM storage location from which the
replenishment materials are taken.
KANBAN
Demand Supply
full
fu l l
Material
fu l l
empty
KANBAN-
Card
© SAP AG 1999
With KANBAN, the material flow is organized by containers that are located at the work centers.
They contain the amount of material that the workers need at their work center for a certain period of
time. If the container is emptied by the demand, KANBAN replenishment is triggered. Supply source
for the requested material can be another production unit, the warehouse, or a vendor. Since the
container arrives at the work center, the worker can help himself from further containers.
The goal is that production controls the production process itself and the effort for the worker in
production is reduced. Stocks and lead times can be reduced by the self controlling and
replenishment created close to actual requests (replenishment is started when the material is needed).
Material is staged in production where it is needed. It is available in small buffers; material staging
doesn‘t have to be planned. Instead, material is replaced very soon by KANBAN.
As of release 4.5A, Warehouse Management (WM) is interfaced to the SAP Production Planning
(PP) application component to replenish kanban stock to production supply areas. Prior to Release
4.5A, replenishment from a WM warehouse could only take place as a stock transfer between two
storage locations. This stock transfer had to be started in Inventory Management. With the new
process you can initiate replenishment directly from within WM.
KANBAN Replenishment Strategy with WM
Warehouse
Set KANBAN to empty and
create a Transfer Automatic or
Requirement in WM manual creation
of a Transfer
Order in WM
Empty
Confirmation of
the TO sets
KANBAN to full
full and posts stock
transfer to
KANBAN
storage location
© SAP AG 1999
To provide KANBAN replenishment from a WM warehouse to production, you need to carry out
the following steps:
1. Request the KANBAN replenishment either manually using the PP system or by scanning a bar
code. Set the container to “empty”. The system records the request in the form of a transfer
requirement (TR). The WM transfer requirement number appears in the KANBAN itself. From
the KANBAN information window, you can display the corresponding transfer requirement
from within the WM system.
2. Process the transfer requirement (TR) like any normal TR in WM by creating a transfer order
(TO) for it.
3. Confirm the transfer order. Once you confirm the TO, the system updates the KANBAN in PP
by setting the status to "full". As an alternative to confirming the TO, the confirmation of the
replenishment can take place in the KANBAN. If you set the status of the KANBAN to "full",
the system confirms the corresponding TO automatically.
4. After the replenishment has been processed in WM, a stock transfer results between the WM
storage location and the KANBAN storage location. The system can process this stock transfer
automatically when the TO is confirmed or you can process it manually by selecting PostChange
Æ Inventory management Æ Stor.loc. to stor.loc. from the WM menu bar.
Setup of KANBAN Replenishment
Define KANBAN Storage location (must be

different from WM storage location)
Define the replenishment strategy
Specify the replenishment strategy and

replenishment storage location in the
KANBAN control cycle
Set up replenishment movement type
Set up storage location control
© SAP AG 1999
To activate KANBAN in WM, you need to take the following into consideration in the KANBAN
control cycle:
y KANBAN replenishment must be defined using its own KANBAN storage location that must be
different from the WM storage location.
y Change system parameters in customizing:
You define the strategy for the KANBAN replenishment under Production Æ KANBAN Æ
Replenishment strategies Æ Define stock transfer strategies in the SAP Implementation Guide. Set
the control type for the stock transfer stratgies to Transfer reqmts from a storage location
controlled by WM.
y You need to specify this replenishment strategy which is specifically defined for KANBAN
replenishment.
y For the replenishment storage location, you need to enter a WM-relevant storage location. This
way, the system knows that it is dealing with a WM-relevant replenishment. In addition to the
storage location, you need to enter the WM data to include the warehouse number, storage type as
a KANBAN interface (storage type 150 in the standard system) and the storage bin..
y Set up the appropriate replenishment movement type for KANBAN in WM (standard is movement
type 350).
y Setup the storage location control for manual posting chnages or for automatic processing.
Production Integration: Summary

KANBAN within WM
KANBAN processing in WM
z Describe the replenishment strategy for WM
Staging
processing WM Staging
© SAP AG 1999
Production Integration - Exercises 1
Unit: Production Integration

Topic: Setting Up Production

• Set up master data and customizing for WM Staging.
In your company, you have materials that are supplied to the production
line in three different ways. First, you have crate materials that are
supplied to the line based on container quantities. When one container
becomes empty, that container is refilled and returned to the line based on
a visual cue. These parts are typically parts that are common to multiple
assemblies and are often large, bulky materials.
Second, you have materials that are picked specifically for a production
order, depending on the product that you are building. These parts are
typically more specialized, and may be high dollar inventory items that
are supplied to the line only when you are building a particular product.
Third, you have materials that are supplied to the line for several
production orders at a time. These are typically floor stock type items
like nuts, bolts and screws, where you want to have 3-6 months of
inventory available on the production floor.
In this exercise, you will define the process for production orders such
that all three material staging types are utilized. Engineering has
designed a new flywheel for an existing pump. It is your responsibility to
set up the production line for this new material so that the new, revised
pump can be manufactured on your existing production line. You want to
set this material up to be stored at point of use on the production floor and
replenished based on a visual cue.
You will verify the supply area, create a control cycle for the new
material, enter a production order for the new pump, stage all the required
materials, complete the production order and stock the finished assembly.
This exercise covers the full circle of events required for managing the
entire production process.
Keep in mind that the steps in this exercise are not necessarily all
performed by warehouse personnel, but are generally performed by a
combination of production, planning and warehouse personnel. As you
work through the exercise, think about which personnel in your company
might perform each task.
PART ONE:
2-1 In Part One of this exercise, you will set up the production supply process,
verifying the configuration and creating or changing the necessary master data.
2-1-1 Look at the Production Supply Area PVB 1310## in the Warehouse Master
Data.
Which Storage Location is assigned to your supply area? _______
2-1-2 The production supply area is linked in Production Planning to the Work
Center. Go to the work center T-WM## Basic Data view and verify that the
correct supply area is assigned.
2-1-3 Use Field Level help to determine where in R/3, other than WM, is the
Supply Area Used? _______________________________________
2-1-4 Display the Control Cycle and verify the following:
In order to have pick parts staged by production order, there must be one
material-independent control cycle. Does this control cycle exist? _____
For this material-independent control cycle, to which bin will the materials
be delivered ? _________________
2-1-5 There is a release order part T-BW07-## in your process. Verify the
control cycle for this material. What is the staging indicator for this control
cycle record? __________________
2-1-6 The new flywheel, T-BW01-##, is a crate part and is delivered to the
production line based on a visual cue. There are 2 Containers, each
holding 20 flywheels. The container is stored on the production floor in
storage type 100 in a bin labeled PROD-1310. When one container
becomes empty, it is replenished from the warehouse. Based on this
information, create a control cycle record for this flywheel.

No. of Kanbans
Kanban Quantity
Warehouse Number
Storage Type
Storage Bin
Staging Indicator
Why can’t you use a dynamic bin for a crate part? ________________
_________________________________________________________
2-1-7 For this control cycle, you must request the first lot of materials to be
delivered to the floor. Perform WM Staging on the crate part to create a
Transfer Requirement in the warehouse. (Note: Typically, this task is
performed by either a production worker or a material handler in production
when the materials need to be refilled. Since this is a new control cycle, this
first request is to get the process started.) Create the TR, but do not process
it yet.
Transfer Requirement _____________
PART TWO:
3-1 Changing responsibilities, you now represent the Production Planner in your
company. Engineering has determined that you are ready to build the pump with the
new flywheel. You need to create and release a production order, and have the
materials moved from the warehouse to support production.
3-1-1 Using the data provided below, create, release and stage a production order.
Which materials are selected for staging?
__________________________________________________
Why aren’t the rest of the materials selected for staging? ______________
____________________________________________________________
Production Order
Order Type: PP01

Production Plant: 1000
Material Quantity Delivery Date

T-MS-## 10 One week from Today
Production Order Number: _______________________

4-1 Back in the warehouse, there are requirements to be processed from the warehouse
to the production floor.
4-1-1 Display the Transfer Requirements that have been created by the WM
Staging. What requirement type should you use to display production
requirements? ______
Leave the Requirement Number blank so you see all requirements for
production.
4-1-2 Process the TRs by converting them to Transfer Orders.
TO Numbers ________ __________
4-1-3 Confirm the Transfer Orders.
4-1-4 Look at the Stock Overview for materials T-BW01-## (Flywheel – Crate
Part); T-BW03-## (Shaft – Pick Part); and T-MS-## (Finished Pump).

T-BW01-##
T-BW03-##
T-MS-##
5-1 Confirming the Production Order confirms that the work has been completed and
signals that you have consumed the materials from the production floor. It is
possible to have the system complete the finished assembly at this point, delivering
the finished pump to the warehouse for put away into stock. In our test system, the
confirmation of the Production Order will consume all of the materials required to
build the assembly and perform the receipt of the finished assembly into stock.
5-1-1 In PP, perform the Completion Confirmation.

How many goods issues were processed? _______ Failed? ________
5-1-2 Recheck your stock for the materials T-BW01-##, T-BW03-## and T-MS-
##.
T-BW01-##
T-BW03-##
T-MS-##
6-1 The Production Order accomplished two functions: consumed the components and
received the finished pump into the warehouse. Now you must process the finished
pump to the fixed bin in the warehouse.
6-1-1 Process the finished pump to its final destination bin. Which storage type/bin
is suggested by the TO you created? ________________________
Where does the system get that information? ________________________
6-1-3 Check stock on the T-MS-##.

T-MS-##
Production Integration - Solutions 1

Topic: Setting up Production
2-1
Production Supply → Production Supply Area → Display. Enter Plant
1000. Select the line for PVB 1310##, and choose Details. Your storage
location 01## is assigned to your supply area.
2-1-2 Logistics → Production → Master Data → Work Centers → Work Center
→ Display. Enter Plant 1000 and Work Center T-WM## and choose Basic
Data.
2-1-3 Position on the field: Supply Area and Choose F1. The Supply Area is used
in Kanban and in Warehouse Management.
Production Supply → Control Cycle Production Supply → Display.

Material Blank
Plant 1000
Supply Area PVB 1310##
Yes, there is a control cycle record that is material-independent for pick
parts. Materials will be delivered to Storage Type 100 and will be stored in
a Dynamic Bin.
Production Supply → Control Cycle Production Supply → Display.

Material T-BW07-##
Plant 1000
The Staging Indicator for the control cycle for T-BW07-## is 3.

Production Supply → Control Cycle Production Supply → Create.
Material T-BW01-##
Plant 1000
No. of Kanbans 2
Kanban Quantity 20
Storage Type 100
Storage Bin PROD-1310
Staging Indicator 2
You can’t use a dynamic bin for a Crate Part because Crate Parts are
delivered to the production area without regard to the production order
number.
Other Transactions → Prepare Production Supply → For Crate Part.
Enter the material T-BW01-## and select WM Material Staging. Select
WM Material Staging again to create the TR and Save. Select Logistics →
Logistics Execution → Internal Whse Processes → Transfer Requirement
→ Display → By Requirement. Use Requirement Type P and enter to see
the Transfer Requirement that was created by the WM Staging Process. (Do
not process it yet.)
PART TWO:
3-1
3-1-1 Logistics → Production → Production Control → Order → Create →
With Material.

Material T-MS-##
Production Plant 1000
Order Type PP01
Total quantity 10
Finish One week from today
Functions → Release. Goto → WM PickList → Proceed. Select WM Material
Staging. Save the order. The pick parts are selected for staging. The other
materials are crate or release order parts and are not relevant for staging here.
4-1
4-1-1 Logistics → Logistics Execution → Internal Whse Processes → Transfer
Requirement → Display → By Requirement. Use Requirement Type P and
enter. You should see two TRs available for processing.
4-1-2 Select the TRs from the list display above and choose TO in Background.
5-1
5-1-1 Logistics → Production → Production Control → Confirmation → Enter
→ For Order. Enter the Production Order Number. Select Final
Confirmation and save. If your setup is correct, you should have 8
transactions processed; 0 failed.
6-1
6-1-1 Favorites → Display TR by Storage Type. Select the TR and convert it into
a TO. The system should select your fixed bin Box-## as the final
destination because that is what you have identified in the Material Master
at the storage type level.
Production Integration - Exercises 2

Topic: Kanban (Optional Exercise)

• Set up master data and customizing for KANBAN
In one area of your company, you are running a separate storage location
using KANBAN as your method of resupply to production. You need to
configure the system so that materials can be supplied from your
warehouse to the production area using KANBAN methodology.
In this exercise, you will configure the system and create the master data
required for utilizing the KANBAN functionality. This exercise covers
the full circle of events required for managing the entire production
process.
Keep in mind that the steps in this exercise are not necessarily all
performed by warehouse personnel, but are generally performed by a
combination of production, planning and warehouse personnel. As you
work through the exercise, consider which personnel in your company
might perform each task.
1-1 First you must define the control between Production and the Warehouse. In
Production Customizing, verify the Stock Transfer Strategy.
1-1-1 In the Stock Transfer Strategy, verify that for plant 1200, strategy 0006 is
configured as Stock Transfer with transfer requirement. The TO should be
automatically created and no difference indicator is set. Be sure that From
Different Plant movement is indicated.
1-1-2 The Storage Type for Kanban for your warehouse has been defined as 150.
In WM Customizing under Interfaces → Define KANBAN, you must verify
the assignment of WM movement type 350 to storage type 150 in your
warehouse.
1-1-3 Verify the Storage Location Control from your warehouse to Plant 1200
Storage Location PL06. What movement type will be run in the background
at the time of the TO Confirmation? ________________
1-2 Create the master data.

1-2-1 Create material K-1## to use for the KANBAN test by copying the material
R-1270C. You need to create this material for both Plant 1200, Sloc PL06
and for Plant 1000, Warehouse 1##. The Industry Sector is M, and the
Material Type is Raw Material.
Plant 1200 and storage location PL06, create the Basic Data, Purchasing, General
Plant Data/Storage 1 and 2, and Accounting views with reference to R-
1270C, Plant 1200, Storage Location PL06.
In Plant 1000, Storage Location 01##, create Purchasing, General Plant
Data/Storage 1 and 2, Warehouse Management 1 & 2 and the Accounting 1
view with reference to R-1270C, Plant 1200, Storage Location PL06. In the
Warehouse Management 2 View, set the pallet size to 80 pieces on an
Industrial pallet.
1-2-2 Create a Bin KANBAN in Storage Type 150, Storage Section 001.
1-2-3 Create a Control Cycle Record in PP for this new material K-1##, Plant
1200 and Supply Area PVB_PC. Choose the Classic KANBAN and copy
from R-1270C, Plant 1200 and Supply Area PVB_PC. In the Stock
Transfer tab of the control cycle record, establish the Issuing Plant as 1000,
Storage Location 01##, use your warehouse number 1##, Storage Type 150
and Storage Bin KANBAN.
1-2-4 Do a goods receipt without reference to bring in 800 pieces of the K-1##
material into Plant 1000, Storage Location 01##. Create a Transfer Order
with reference to the Transfer Requirement that is created by the 501
transaction, and remember to confirm the Transfer Order.
1-3 Test the connection

1-3-1 Call the Kanban Board → Demand Source View and for Plant 1200 and
supply area PVB_PC.
1-3-2 Choose one of the boxes that represent the KANBAN and set it to empty. Is
a TR created? Select the box to see the TR that is created.
1-3-3 Set status to Full.
1-3-4 Display the stock overview from Inventory Management for the K-1## so
you can see inventory for Plants 1000 and 1200.
ge Location tricted Use Stock
Be sure to leave the plant field blank so you can overview the
inventory balances for both plants.
Production Integration - Solutions 2

Topic: Kanban
1-1
1-1-1 Tools → AcceleratedSAP → Customizing → Edit Project → Goto → SAP
Reference IMG → Production → Kanban → Replenishment Strategies →
Define Stock Transfer Strategies. Select Plant 1200, Replenishment
Strategy 0006. Select From diff plnt and verify Immed TO Crtn is selected.
→ Interfaces → Define Kanban→ Movement Type Assignment to Kanban
Supply. Position on your warehouse and storage type 150.
→ Interfaces → Define Kanban→ Storage Location Control in
Warehouse Mgmt. The movement type 301 (Plant to Plant) is the
movement type that will be executed upon TO Confirmation.
1-2
→ Create → Immediately

Material K-1##
Industry Sector Mechanical Engineering
Material Type Raw material
Copy From R-1270C
Select Views Basic Data, Purchasing,
General Plant 1 and 2,
Accounting 1
Plant 1200
Storage Location PL06
Copy from Plant 1200
Copy from Storage Location PL06
Create the material a second time with the following data:
Field Name or Data Values

Type
Material K-1##
Industry Sector Mechanical Engineering
Material Type Raw material
Copy From R-1270C
Select Views Purchasing, General Plant 1
and 2, Warehouse
Management 1 and 2,
Accounting 1
Plant 1000
Warehouse 1##
Copy from Plant 1200
Copy from Storage Location PL06
Warehouse Management 2 View:

LE Quantity 80
UN PC
SUT IP

Storage Bin → Create → Manually

Warehouse 1##
Storage Type 150
Storage Bin KANBAN
Storage Section 001
1-2-3 Logistics → Production → KANBAN → Control Cycle → Create

Material K-1##
Plant 1200
Supply Area PVB_PC
Classic KANBAN Select
Copy from Material R-1270C
Plant 1200
Supply Area PVB_PC
Select the Stock Transfer Tab:

Issuing Plant 1000
Storage Type 150
Storage Bin KANBAN

Purchase Order, Order, Other → Goods Receipt for Other Activities

Movement Type 501
Plant 1000
Material Number K-1##
Quantity 800
Still under Inbound Process, select Putaway → Create Transfer Order →

By Material Document. Generate the TO in the background. Save. Choose
Transfer Order → Confirm →Input List. Save.
1-3
1-3-1 Logistics → Production → KANBAN → Control → Kanban Board →
Demand Source View

Plant 1200
Supply Area PVB_PC

Stock → Display → Total Stock per Material (Inventory Management)
Delivery Processing
Contents:
z Processing Delivery Notes
z Collective Processing
z Two-Step Picking
© SAP AG 1999
Delivery Processing: Course Overview Diagram

Logistics Execution
Deliv
Master Data 4 Proc eProcessing
Delivery ry 10
essin
g
Integration with
Conclusion 13
© SAP AG 1999
Delivery Processing: Business Scenario
z In this unit, you will examine different possibilities

for processing delivery notes and customizing the
delivery function in the warehouse. You will create
delivery notes and process them through shipping
and post goods issue, using different techniques.
© SAP AG 1999
Delivery Processing: Objectives
z Demonstrate the shipping process in WM
© SAP AG 1999
Overview of Shipping Process and WM
Create
sales order
Create
delivery
SD Pick list Picking Create

technique Print TO
transfer order (or multiple
TO list)
Confirm
Picking
transfer order
from fixed bin
no
Differences
yes ?
Post yes Copy transfer no

data to the
goods issue delivery
© SAP AG 1999
Depending upon the picking technique, materials are picked from the fixed bin (with a picking list
from the Sales and Distribution system) or a transfer order for a delivery is created.
If picking takes place without a transfer order, the WM status in the delivery is set to “N” (not
relevant for Warehouse Management).
If picking takes place with a transfer order, the WM status in the delivery is set to “A” (relevant for
Warehouse Management). The WM status is updated after each step during transfer order
processing.
Picking Process
Transfer
Dely 80004092 Order
4711 50
Mat. 4711 50
Updates
Delivery
916 0080004092
4711 50
Post
Goods Issue Relieves
Inventory
© SAP AG 1999
When the picking technique is set to Random Picking, the system will always expect a Transfer
Order to be created for the delivery item.
Upon confirmation, the materials are delivered to the interim storage type and bin defined for the
movement type (601).
Upon post goods issue, the materials are relieved from the interim storage type and bin, and the order
is available for billing.
Transfer Order for Outbound Delivery
Transfer Order
Delivery
Source – Dest
Source – Dest
Item 1
Source – Dest
Item 2
Source – Dest
Item 3
Source – Dest
Source – Dest
GI- Area
© SAP AG 1999
No transfer requirement is created for a delivery; instead, a transfer order is created on the basis of
the delivery.
If the requirement quantity of a delivery item is to be removed from several storage bins, several
transfer order items are created for the delivery item.
Creation of Groups in the Delivery Monitor
Printout without
Group
Transfer
Delivery Monitor: Transfer
auftrag
Selection and Creation of single TOs auftrag
Transfer
assignment of groups order zur LF 4711
zur LF 4725
Transfer
Del 4711 order
zur LF 4720
Del 4720 for Del 4813

Del 4725
Del 4813
Release/
Printout with group
Collective Processing:
Creation of TOs for Picking list
Group #23
the group Group #23
Interface LSR
IDoc
Release Group #23
© SAP AG 1999
With the Delivery Monitor, dialog processing of inbound and outbound deliveries is possible with
SAP's Enjoy initiative.
The delivery data is organized in process-oriented groups. Foreground navigation is possible with
buttons and tabstrip controls.
A status overview gives you a summary of the delivery document's processing status.
You can switch from display to change mode without having to exit the application.
It is possible to combine multiple delivery notes together to pick as a group, or have a Transfer Order
for each delivery note.
Two-Step Picking
Stock removal based Delivery based

on materials distribution
1st Step: Picking 2nd step: Allocation
Group Picking TO for a

Group TO #250
Del 4813
Mat.01 3 Ea
Mat.01 3 Ea Mat.02 4 Ea
Mat.02 4 Ea Item 1 Mat.01 10 Ea TO #251
Srce 001 Srce: 200 Mat.01 4 Ea

Del 4814 Dest: 916 Mat.02 5 Ea
Mat.01 4 Ea Dest 200
Mat.02 5 Ea Srce: 200 TO #252
Dest: 916
Del 4815 Item 2 Mat.02 10 Ea Mat.01 3 Ea
Mat.01 3 Ea Mat.02 1 Ea
Mat.02 1 Ea
Srce 001
Srce: 200
Dest 200
Dest: 916
© SAP AG 1999
Two-Step Picking is an extension of multiple processing. For Two-Step picking, the picking process
is divided into 2 steps:
y First Step:
- The entire quantity of needed materials is picked to fill requests (for example, several
deliveries) for the materials.
y Second Step:
- The total quantity is divided and allocated to match the individual requirements.
The goal is to go once to a bin to pull materials, even if the requirements are from different
deliveries.
Two-Step picking was developed using the group number as a basis. The group number serves as a
means to combine several deliveries. Additionally, you can carry out other functions associated with
the group number, such as printing and confirmation.
Transfer Order Splitting
DELIVERY Transfer
Order
Not
fulfilled
Split
Criteria?
Fulfilled
Transfer Transfer Transfer

Order Order Order
© SAP AG 1999
To achieve a balanced distribution of the workload of the warehouse, Transfer Orders can be split.
Together with the splitting process, dynamic sorting of the TO items takes place. For this sorting
process, you can use the sequence field in the storage bin. This field allows you to enter the exact
sequence in which the storage bins are to be processed.
Transfer Orders are split by a profile for the warehouse number. You can split the TOs by:
y Storage type and picking area
y Target time (header information) , volume and weight as value limits
y User exit (either for sorting or for splitting)
Creation of TOs: WMTA
Condition Records Processing Automatic

time TO-Creation
Job RLAUTA20
Delivery
Batch-
Program
Del Type LF Transaction Transaction:

Shipping Message Messages from
Shp. point. 1200
Shipping
Condition Deliveries
Condition Immediately WMTA
immediately
Immediate
TO-Creation
immediately
Direct
Processing with
delivery creation
© SAP AG 1999
At the interface from SD Shipping to WM, you can set immediate or automatic transfer order
creation for deliveries. Processing is controlled by the message control function of the shipping
module. Via the condition technique, you can initiate the message type WMTA upon creation of the
delivery. The requirement for this is that at least one item of the delivery is relevant for WM. The
combination “Shipping point / Delivery type” is responsible for finding the message type.
Depending on the processing of the message type “WMTA”, there are different processing type:
y Time 1-3 (processing later)
- In this case, the message is processed either via a batch program or manually via the transaction
“Messages for delivery”. Since this processing type is executed separately from the delivery
creation process, we refer to this as Automatic Transfer Order Creation.
y Time 4 (Processing Immediately)
- Here message processing is initiated immediately after the delivery has been created. Therefore,
this is referred to as Immediate Transfer Order Creation.
Transaction VOK2 Sales and distrib. Document --> Delivery --> Condition Type WMTA
Delivery Processing: Summary

z Demonstrate the shipping process in WM
© SAP AG 1999
Delivery Processing - Exercises 1
Unit: Delivery Processing

Topic: Processing Delivery Notes in WM

• Create a delivery note with reference to a sales order
• Create/confirm a Transfer Order with reference to a delivery
• Post Goods Issue for a Delivery
Your Order Processing Department has received sales orders for the
pump number T-MS-##. In this exercise, you will create a delivery note
with reference to an existing sales order and process that delivery note
through shipping and post goods issue.
Keep in mind that it is not always the warehouse person who performs
each step in this process. Think about the business process in your own
company and which departments or individuals perform which functions.
1-1 In this step, you will create a delivery note with reference to a sales order that has
already been entered through the Order Processing Department.
1-1-1 Create a delivery with reference to a Sales Order. You are processing
deliveries for shipping point 1000 that are due for shipment within the next
week. (Add this function to your Favorites. Change the text to Create
Delivery.)
Using F4, search for the Sales Order Number using your group
number as the Purchase Order Number. Note: You may be prompted
for sales area data when you search. If so, the Sales Organization is
1000, Distribution Channel 10, Division 00. When the Sales Order is
selected, press enter.
Before you save the delivery, go to the Picking tab and verify that the
material will be picked from stores location 01##. Notice that the line is
relevant for Warehouse Management.
WM Status _______ Picking Status _______
Save the delivery. Delivery Number _____________________
1-1-2 Using the Delivery Monitor, create a Transfer Order with reference to the
Delivery. (Add the Delivery Monitor to favorites. Change the text to
Delivery Monitor.) Leave the Adopt Pick Quantity field blank.
Transfer Order _________________
1-1-3 Still using the delivery monitor before confirming the TO, check the WM
Status and Picking Status within the Delivery Note to see how the system
keeps track of what processes are going on within the warehouse.
1-1-4 Confirm the Transfer Order. (Leave Adopt Pick Quantity field blank.)
1-1-5 Check the Stock Overview for material T-MS-##.

-##
1-2 Posting goods issue is the step that actually removes the inventory from your
warehouse, creating the material and accounting documents in IM. Following this
step, the Sales Order is available for billing.
1-2-1 From the Delivery Monitor, Post Goods Issue against the delivery note.
Before you exit the Delivery Monitor, verify that the Pick Quantity is now
updated and recheck the WM and Picking Status.
1-2-2 Look at the Document Flow. What is the material document number that
was created for the goods issue? _________________________
1-2-3 Check the stock overview to verify that inventory has been updated.

-##
Delivery Processing - Solutions 1

Topic: Processing Delivery Notes in WM
1-1
Outbound Delivery → Outbound Delivery → Create → Single Document
→ With Reference to Sales Order. Select Add to Favorites then Change
Favorites to change the text. Use Shipping Point 1000. Set the selection
date out one week. Search for the order number by selecting the match code
and choose A:Sales document according to customer PO number. Search
for PO of your group number. Select the item and enter. Select the Picking
tab to overview picking. Save the delivery.
Outbound Delivery → Outbound Delivery → Lists and Logs → Outbound
Delivery Monitor. Select Add to Favorites then Change Favorites to
change the text. Select For Picking.

Shipping Point/receiving pt 1000
Only WM Picking Select
Execute. Select your delivery and choose TO in backgr. Leave the Adopt
Pick Quantity field blank.
1-1-3 From the Outbound Delivery Monitor select For confirmatn. Enter
Shipping Point 1000 and execute. Select the line and choose Subsequent →
Display outbound deliveries to see the WM and Picking status.
1-1-4 Still in Outbound Deliveries for Confirmation, select your delivery and
choose Confirm in Background. Leave the Adopt Pick Quantity field
blank.
1-2
1-2-1 Favorites → Delivery Monitor → For goods issue. Shipping Point 1000.
Select your delivery note and choose Post Goods Issue. Enter today’s date
as the actual goods issue date. Select the line and choose Subsequent →
Display outbound deliveries to see the pick quantity and the WM and
Picking status settings.
1-2-2 From the delivery display, choose Environment → Document Flow.
Delivery Processing - Exercises 2

Topic: Two-Step Picking (Optional Exercise)

• Process multiple delivery requirements with 2-step picking
When picking for multiple sales orders, it is your goal to go once to a bin
to pick the required materials, regardless of the number of sales order
requirements you may have. It is your process to pick all materials
required for shipment within a given period, then deliver those materials
to an area to be sorted for shipment against the specific requirement.
Therefore, you move material from the warehouse to an intermediate
area, then from that area to the shipping area where requirements are
matched to the specific delivery note.
2-1 In this scenario, you have three sales orders with products due to ship for various
combinations of materials that are stored in your warehouse. You want to process
these deliveries using two-step picking functionality, where you want to go once to
a bin to pick all of the requirements, then redistribute those materials back to the
original delivery notes for shipping.
2-1-1 Go to customizing interfaces in Warehouse Management to verify that your
warehouse is relevant for 2-Step Picking. What is the WM movement type
configured for removal 2-Step Picking? __________
2-1-2 Look at WM Movement Type 850 in your warehouse. What is the
Destination Storage Type for movement type 850? _________
2-1-3 Look at Storage Type 200 in your warehouse. Is this an Interim Storage
Type? ____________
How can you tell? _____________________________________________
2-1-4 Now look at the Storage Type Search Sequence. Is there a special entry in
your warehouse for 2-step picking? ______
2-2 In this exercise, you are processing delivery notes that are required for service parts
for your pump. Your order processing department has received orders that are due
for processing today. The delivery notes have already been created for you. You
have 3 delivery notes with various combinations of materials T-BW04-## and T-
BW05-##.
2-2-1 In the first step, you must group together the deliveries and assign a group
number for further processing. Use the grouping functionality in the
Outbound Delivery process to group together the deliveries. Group Number
_______
2-2-2 Create the first TO that will move the material from the warehouse to the I
intermediate area – Storage Type 200.
2-2-3 Confirm your Transfer Order.
2-2-4 Check your inventory for the T-BW04-## and T-BW05-## materials. Your
inventory for the deliveries now shows in storage type 200.

T-BW04-##
T-BW05-##
2-2-5 In this step, you want to allocate the materials that you picked back against
the original delivery notes. You will create 3 Transfer Orders, one for each
delivery, to move the materials from 200 to 916. You will complete the
process via the 2-Step Picking Analysis function. The Transfer Orders will
be confirmed automatically.
2-2-6 Check again your inventory for the T-BW04-## and T-BW05-## materials.

T-BW04-##
T-BW05-##
2-2-7 Post Goods Issue for your delivery notes.

2-2-8 Check your inventory balances.

T-BW04-##
T-BW05-##
Delivery Processing - Solutions 2

Topic: Two-Step Picking
2-1
2-1-1 Tools → AcceleratedSAP → Customizing → Edit Project → Goto → SAP
Interfaces → Shipping → Two-Step Picking. Two step picking is relevant
for your warehouse and is determined by material. The WM movement
type for removal is 850.
→ Activities → Transfers → Define Movement Types. Position on your
warehouse 1## and Movement Type 850. Select the line and choose Details.
The destination storage type for movement type 850 is Storage Type 200.
→ Master Data → Define Storage Type. Position on your warehouse 1##
and Storage Type 200. Storage Type 200 is not an interim storage type
because it has a placement and a removal strategy. In both cases, the
strategy is R, which will cause the system to use the Reference Number as
the dynamic coordinate.
2-1-4 SAP Reference IMG → Logistics Execution → Warehouse

Management → Strategies → Activate Storage Type Search → Determine
Search Sequence. Position on your warehouse 1##. Activity 2 is relevant
only for 2-Step Picking.
2-2
2-2-1 Favorites → Delivery Monitor. Choose Picking. Use shipping pt/receiving
pt 1000. Select Only WM Picking for your warehouse. Select your
deliveries, then choose Subsequent Functions → Group → Create with
WM Reference.

Group Type K
Description Group ##

Outbound Delivery → Picking → Create Transfer Order → Via 2-Step
Picking. Enter your Group Number and choose enter then Generate TO.
Outbound Delivery → Picking → Wave Picks → 2-Step Picking →
Analysis. Enter your Group Number that was previously assigned and
execute. Select the Allocation line, then choose Create TOs. Enter your
Warehouse 1## and Group Number, set control to Background, and
choose Start Multiple Processing. Select your Group Number and Display
Details. Return to the analysis and Refresh Data. You should now show all
Green lights!
2-2-7 Favorites → Delivery Monitor → For Goods Issue. Select only your
deliveries and Post Goods Issue, using today’s date.
Replenishment
Contents:
z Various Replenishment
Techniques
© SAP AG 1999
Replenishment: Course Overview Diagram

Logistics Execution

Integration with ReReplenishment
pleni
Inventory Management 5 shme 11
nt
Conclusion 13
© SAP AG 1999
Replenishment: Business Scenario
z In this area of the warehouse, you store materials

in fixed bins to be picked for delivery from this
storage type and then replenished from other areas
of the warehouse. You would like to experiment
with different approaches to this strategy and
automate the process as much as possible.
© SAP AG 1999
Replenishment: Objectives
z Execute two methods of fixed bin

replenishment
z Explain different possibilities to
execute replenishment within the
warehouse
© SAP AG 1999
Replenishment for Fixed Storage Bins
© SAP AG 1999
When you use fixed bin replenishment, the system calculates the replenishment quantities that are
necessary to maintain appropriate stock levels based on information that you provide.
You first must define a WM movement type for storage types that use the fixed bin stock placement
strategy. In the standard WM system, movement type 319 was created for this purpose. Link the
movement type with the fixed bin storage type.
You must maintain the material master record for the fixed bin storage type. You must enter data in
the Storage bin, Maximum bin quantity, Minimum bin quantity and Replenishment Quantity data
fields at the Storage Type level in the Warehouse Management view of the Material Master record.
Replenishment for Fixed Bins: Batch Report
min. storage bin quantity 3 ctn

replenishment quantity 8 ctn
1
H
AC
N
LL
R
Transfer
requirement
Transfer
order
© SAP AG 1999
You can process a report (RLLNACH1) in batch to replenish fixed bin storage types at regular
predefined time intervals or online as required.
When you run RLLLNACH1, the system will recommend a Transfer Requirement if your stock falls
below the minimum bin quantity you have defined. The Transfer Requirement will be recommended
in increments of the Replenishment Quantity up to the Maximum Bin Quantity.
Afterwards, you process the transfer requirements to create transfer orders according to the normal
procedures you would use to carry out stock movements within WM.
Planned Replenishment
Firma Firma
Firma Firma
Rechnung
Firma
Rechnung
Firma Rechnung
Firma
Rechnung
Firma
Rechnung
Firma
Rechnung
Firma Rechnung
Firma
Rechnung
Firma
Rechnung
Rechnung Rechnung
Rechnung
Planned Replenishment RLLNACH2
© SAP AG 1999
This report creates transfer requirements for fixed bin replenishment where stock removals are
allowed to take place before put aways because of the respective deliveries. This report takes into
account, in addition to the stock situation, planned stock removals and replenishment transfer
requirements.
Using this report, you can create all the replenishment transfer requirements for supplying the fixed
bins based on delivery requirements and rounded to the replenishment quantity.
Use this report to create the transfer requirement which can then be processed according to normal
procedures you use to carry out stock movements within WM.
Creating TOs Automatically for TRs
IM PP System Manual
Document
Transfer
requirement
Batch
RLAUTA10
Transfer Mail
order
© SAP AG 1999
For certain classes of transfer requirements, it is possible to set up the Warehouse Management
system to create transfer orders automatically as a background process. You set up the system to
carry out this process by setting an indicator in each movement type.
When you create a transfer requirement manually, the system copies this indicator into the transfer
requirement header. To activate the automatic creation of transfer orders for these transfer
requirements you must start the report RLAUTA10 as a batch job. For this process you define a
variant for each different indicator. This makes it possible for you to define different starting times
and time spans to repeat each task periodically
Replenishing Random Bin Management: TR/TO
4.6C
min. storage bin quantity 6 ctn

replenishment quantity 8 ctn
4
ACH
LN
RL
atio iate
n
d
TO imme
cre
Transfer Or:
requirement
Transfer
order
© SAP AG 1999
As of this release, you can take care of internal warehouse replinishment at the time of transfer order
confirmation. This replenishment can be triggered for random bin managed storage types and for
fixed bin storage types.
For random bin managed storage types, you define the minimum bin quantity for the storage type
view in material master as minimum quantity in the storage type.
For random bin management replenishment, you can use the report RLLNACH4 to create a TR. This
processing is similar to the processing of RLLNACH1 and RLLNACH2. Else, you have the
possibility to use immediate TO creation for replenishing the whole storage type.
Replenishment: Summary

z Execute two methods of fixed bin replenishment
z Explain different possibilities to execute

replenishment within the warehouse
© SAP AG 1999
Replenishment - Exercises 1
Unit: Replenishment
Topic: Replenishment for Fixed Bins

• Create the appropriate master data to run fixed bin replenishment
• Run the fixed bin replenishment process in the warehouse
You have a process in the warehouse where you establish a minimum

quantity, together with a maximum and a replenishment quantity for a
fixed bin. You would like to run a replenishment program that would,
when your minimum is exceeded, create a requirement to replenish your
bins based on the replenishment quantity up to the maximum.
1-1 Set up the appropriate data for fixed bin replenishment, using minimum, maximum
and replenishment data. Run the replenishment report and process the resulting TRs
to restock the bins.
1-1-1 Storage type 005 is your fixed bin storage type. Verify the WM movement
type for replenishment is assigned to storage type 005.
Movement Type _____
1-1-2 The material master T-BW20-## already exists in the system, but the
replenishment data has not been defined. Create the material T-BW20-##
for your warehouse number 1## and storage type 005. Assign the material to
fixed bin 400-##. When your inventory dips below 100, you would like to
replenish the stock in increments of your pallet size, up to 5 full pallets.
Also make sure that the material is set up to be picked from the fixed bin.
1-1-3 Check your stock situation for T-BW20-##.
rial ype able utaway Quantity

20-##
1-1-4 Create the TR by running Replenishment for Fixed Bins (Acc to Bin
Situation).
1-1-5 Convert your TR to a TO and confirm the TO.
1-1-6 Recheck your stock situation for T-BW20-##.

20-##
Replenishment - Solutions 1
Unit: Replenishment
Topic: Replenishment for Fixed Bins
1-1
→ Activities → Transfers → Define Stock Transfers and Replenishment
Control → Define Replenishment Control for Storage Type..
(4.6B Menu Path: SAP Reference IMG → Logistics Execution →
Warehouse Management → Activities → Transfers → Define Stock
Transfers and Replenishment Control → Assign replenishment mvt type
to stor. Type.)
Position on your warehouse and storage type 005. Movement type 320 is
assigned as the replenishment movement type for storage type 005.
1-1-2 Logistics → Logistics Execution → Internal Whse Processes → Master

Data → Material → Material → Create → Immediately.

Material T-BW20-##
View Warehouse Management 1 & 2
Warehouse 1##
Stock Removal FIX
Storage Type 005
Storage Bin 400-##
Maximum Quantity 500
Minimum Quantity 100
Replenishment Quantity 100

Transfer → Planning of Replenishments → Acc to Bin Situation
Plant 1000
Warehouse number 1##
Storage Type 005
Requirement Type N
Requirement Tracking Number FB##
Execute. Select the line and choose Material Staging. Save.
1-1-5 Favorites → Display Transfer Requirements by Storage Type. Select the
TR and choose TO in backgr.
Favorites → Confirm TO, One Step
Replenishment - Exercises 2
Unit: Replenishment
Topic: Planning Replenishment

• Create the appropriate master data to run planning replenishment
• Run the planning replenishment in the warehouse
In this scenario, you want the system to consider TRs open for
replenishment to the fixed bin as supply and delivery notes as demand.
You want to create Transfer Requirements to cover deliveries for a
period, in increments of the replenishment quantity.
2-1 In planning replenishment, you want to cover tomorrow’s demand in your fixed bin
area.
2-1-1 Change the material master view for storage type 005, material T-BW21-
##. Assign the bin 401-##. Modify the material if necessary to have a
replenishment quantity equal to the pallet size. No minimum or maximum
quantity is required.
2-1-2 There are 3 sales orders that exist for T-BW21-##. Create delivery notes for
them. Search for the sales orders using the Purchase Order LO530-##.
You will need to set the Selection Date out one week to select the
deliveries. Also, choose the three sales orders with the highest sales
order numbers.
2-1-3 Check the Delivery Monitor. How many are scheduled for delivery? ____
2-1-4 Run Planning Replenishment.
2-1-5 How many TRs are created by the replenishment program? _____
What is the quantity of the TR generated by the planning replenishment
program? _______
Replenishment - Solutions 2
Unit: Replenishment
Topic: Planning Replenishment
2-1
2-1-1 Logistics → Logistics Execution → Internal Whse Processes → Master
Data → Material → Material → Create → Immediately.

Material T-BW21-##
View Warehouse Management 2
Warehouse 1##
Storage Type 005
Storage Bin 401-##
Replenishment Quantity 100
Minimum Quantity 100
Maximum Quantity 500
2-1-2 Favorites → Create Delivery. Enter Shipping Point 1000. Select the
matchcode and search for sales orders with the Purchase Order Number
LO530-##. Create a delivery note for each sales order.
2-1-3 Favorites → Delivery Monitor → For Picking. Enter Shipping Point 1000
and your warehouse number. Choose Item View to see the quantity on the
deliveries.
Transfer → Planning of Replenishments → Based Upon Outbound
Deliveries to be Selected.
Plant 1000
Warehouse 1##
Storage Type 005
Requirement Type N
Requirement Tracking Number PL##
2-1-5 One TR for a quantity of 100 is created for the replenishment.

Physical Inventory
Contents:
z Inventory Methods
z The Physical Inventory Process
© SAP AG 1999
Physical Inventory: Course Overview Diagram

Logistics Execution

Integration with
Phys
Goods Receipt 6 Physicail Inventory
Inven cal 12
to r y
Conclusion 13
© SAP AG 1999
Physical Inventory: Business Scenario
z You must decide which inventory method your

company will use. You must configure and test at
least one inventory method.
© SAP AG 1999
Physical Inventory: Objectives
z Execute the basic physical inventory process

in the warehouse
z Customize settings in the warehouse to allow
different inventory methods
© SAP AG 1999
Inventory Methods
Inventory Methods
Annual inventory
Continuous inventory
Cycle counting
Inventory Based on First Placement
Zero Stock Check
Inventory sampling procedure
© SAP AG 1999
The description of the inventory methods refer only to the technical prerequisites that are necessary
to set up and carry out the different inventory methods. These notes can be used to supplement and
check the company-specific inventory requirements.
The inventory method is assigned at the storage type level with the exception of cycle counting. All
of the inventory methods are executed within the storage type.
If cycle counting is the chosen inventory method, it can be run above the storage type level, provided
all storage types involved have cycle count assigned as the inventory method.
Inventory Process
Inventory
Inventory planning
planning
Create
Create system
system inventory
inventory record
record
Activate
Activate system
system Storage
Storage bins
bins
inventory
inventory record
record blocked
blocked
Print
Print out
out
inventory
inventory list
list
Count,
Count,, weigh,
Count weigh,
measure,
measure,, estimate
measure estimate
123
Take
Take physical
physical
inventory
inventory count
count
Start
Start differences
differences //
control
control list
list
Clear
Clear differences
differences in
in the
the Warehouse
Warehouse Storage
Storage bins
bins
Management
Management system
system unblocked
unblocked
Clear
Clear differences
differences in
in the
the Inventory
Inventory
Management system
Management system
© SAP AG 1999
The process for taking inventory is the same, whether you are doing annual or continuous inventory.
When you take annual inventory, the entire storage type is blocked for movement and all bins are
counted. With continuous inventory and cycle counting, only the affected bins are blocked for
movement.
When you select continuous inventory, you are counting the bin and you must count all quants
within that bin. When you select cycle count, you are counting the material, wherever that material
is within the storage type(s) selected. In the case of mixed storage, all quants within the bin must be
counted.
When you clear differences in WM, any discrepant amount is written to the interim storage type for
differences and the bins are unblocked. You then clear differences in IM to adjust the inventory
balance and create the accounting document.
Warehouse inventory data is year-dependent and must be reset at the beginning of a new inventory
period. The program RLREOLPQ is provided for this purpose.
Enjoy in Warehouse Management Inventory
Table controls
replace step loops
© SAP AG 1999
With the Enjoy release, the physical inventory was changed to Table Controls. Effected transactions
are Create System Inventory Record, Change System Inventory Record,Display System Inventory
Record, Enter Inventory Count,Change Inventory Count, and Display Inventory Count.
For the transactions Create, Change, and Display Inventory Record, the processing logic is such that
with the creation of an inventory record, new items are visible on the same screen where you enter
the new item.
The transactions Create, Change, and Display Inventory Record use per default the latest recount
version. If you wish to work with a prior version, you must specify it.
There is one central function module L_COUNT_DATA_PROCESS that ensures the necessary data
verification. This is also used for IDOC processing instead of processing the inventory screens in the
background.
Continuous Inventory
Only the selected

bins are blocked
Inventory Document
x
x
x
© SAP AG 1999
With the continuous inventory method you take inventory on a selected number of storage bins in a
storage type. The inventory can take place at any time during the fiscal year.
Compared to the annual inventory count at the end of the fiscal year, the continuous inventory has
some advantages:
y The effort for the inventory is not concentrated on a certain day or days but is distributed over the
entire year. This can result in a better leveling of the workload in the warehouse.
y Inventory can be conducted during slow times in the warehouse, for example, during summer
vacation.
y With a reduction in the effort required at the end of the fiscal year, a company can respond better
to problems that might arise during an end-of-year closing.
y When an inventory is carried out on a continuous basis, up-to-date information about the
correspondence between the warehouse stock and the book inventory is always available..
Cycle Counting
Goal:
Goal: Count
Count Material
Material Continue normal WM inventory process:
Based
Based on
on Cycle
Cycle
Count
Count Indicator
Indicator Print
Print
A
A Items
Items 12
12 times
times // year
year
B
B Items
Items 66 times
times // year
year Count
Count
C
C Items
Items 11 time
time // year
year
Record
Record results
results
Assign CC Indicator:
RMCBIN00 Recount
Recount
Clear
Clear differences
differences
© SAP AG 1999
Cycle counting in the Warehouse Management system makes it possible for you to separate
materials into classes (such as A, B, C) and take inventory for each class separately several times
throughout the year. You define the count frequency by class. It is possible to cycle count within a
storage type or count across storage types as long as all storage types are set with cycle counting as
the inventory method.
In the Inventory Management IMG under Physical Inventory, you define the cycle counting
indicators and the number of times per year that inventory counts are to be taken for each class.
Then you enter the cycle count indicator (A, B, C) into the Storage View of the material master
record for each material that will be counted using the cycle counting task. This can be set manually
or by using the report RMCBIN00.
Cycle Counting Time Interval
Starting the selection report for a time interval

February March April May
Mat. 4711 Mat. 4711 Mat. 4711 Mat. 4711
10 - 24 March
Mat. 4712 Mat. 4712
Mat. 4713
Selection
Selection displays:
displays::
displays
123 Stor.Bin
Stor.Bin Mat
Stor.Bin Mat Comments
Comments
Material 01-
01-07-
07-03
01-07-03 4711
4711 to
to be
be counted
counted
Material 4711
4711 12
12 times
times // year
year
Material 01-
01-07-
07-04
01-07-04 4711
4711 to
to be
be counted
counted
Material 4712
4712 66 times
times // year
year
Material 01-
01-06-
06-09
01-06-09 4713
4713 overdue
overdue (was
(was not
not
Material 4713
4713 11 time
time // year
year
counted
counted in
in February)
February))
February
© SAP AG 1999
The system searches for all materials in the storage type(s) that are marked for cycle counting within
a given date interval and creates a list of storage bins for which inventory is to be taken.
Inventory Based on First Stock Placement
Create TO
Inventory already
taken at
destination bin?
no
123
Print TO
with inventory 1 2 3
data
Storage bin Confirm TO Difference in

interim storage
Inventory data area
Book quantity =
Counted quantity
Clear differences
in Inventory
Management
© SAP AG 1999
Inventory based on stock placement: the system sets the inventory indicator for the storage bin the
first time goods are placed in the storage bin for that fiscal year. The indicator is set when the
transfer order is confirmed.
Transfer orders provide proof of movement following the inventory. Because all movements to this
bin must be individually identifiable throughout the fiscal year, you need to archive the transfer
orders when you reorganize the data base.
With this method, bins that are not occupied during the fiscal year are not counted; therefore, you
should also set the annual inventory method for this storage type so that you can conduct an annual
inventory for these storage bins.
Zero Stock Check
Create transfer order

Print TO Bin
Note: empty?
Check bin
Physical stock removal
Confirm TO
Verify zero stock check
Bin occupied Bin empty

Enter counted qty Zero stock check
Zero stock check message returned confirmed
Correct qty in source bin

(diff. calculated
automatically)
Post difference in
© SAP AG 1999
The zero stock check is activated by the system if during transfer order creation it is determined that
the source bin will become empty by the stock removal.
The transfer order for stock removal is printed with a notice that zero stock check is active for a
specific bin.
The zero stock check must be verified when the transfer order is confirmed.
If the warehouse worker determines that the storage bin is not empty, the actual quantity remaining is
entered at confirmation of the transfer order.
The system carries out the correction of stock using the interim storage type for differences.
The difference must be cleared from WM and recorded in IM.
If a bin is empty although there should be stock you can request the zero stock check manually.
Zero Stock Check as Inventory
Confirm TO
Zero stock check confirmed

or requested manually
Bin occupied Bin empty
Zero stock check returned

Enter counted quantity
confirmed
Correct qty
in source bin
(diff. calculated automatically)
Inventory data Inventory data

Bin Bin
Quant
© SAP AG 1999
The zero stock check can also be defined as an inventory method for the storage type.
In this case, an inventory record is made each time a zero stock check is carried out, not only in the
case of a difference. When the transfer order is confirmed, the system updates the physical inventory
data for the bin.
Zero stock check is not applicable for all storage types (ie mixed storage).
Inventory Sampling Procedure
Random selection
Strata Complete-count
Stock mgmt ..... area
unit to be counted
Physical inventory
documents
Inventory
1000 2317
L-Bin A
L-Bin B
Updating
Actual value of
selected stock
management units
Estimation
Extrapolation
Estimated actual Comparison Book value
value of all of all
stock units stock units
© SAP AG 1999
The inventory can be carried out with periodic sampling (at a given date) or continuous (over an
extended period of time). A stock management unit is the Storage Type. You must assign stock
levels by assigning which stock management units are to be included in the sampling.
The Stock Population is divided in a complete count area and a sampling area, which is divided into
several classes. (This is done automatically.)
After the stratification, the Random Selection is generated (the system determines the stock
management units to be counted for each stratum).
The inventory documents are created. These documents are required for all stock management units
drawn during random selection and for all that were allocated to the complete-count areas. You then
count, weight, and measure your stocks.
Carry out the update: During this process, the system reads the count results and reads any changed
book inventory balances and book values.
Extrapolation: The system estimates the physical inventory value on the basis of the latest counting
results.
The inventory is successful if the total physical inventory value deviates from the book inventory
value by no more than 2% (in the standard system).
Physical Inventory: Summary

z Execute the basic physical inventory process in
the warehouse
z Customize settings in the warehouse to allow
different inventory methods
© SAP AG 1999
Physical Inventory Processes with WM - Exercises
Unit: Physical Inventory Processes with WM

Topic: Continuous Inventory and Cycle Counting

• Customize settings in the warehouse to allow different inventory
methods
• Execute the basic physical inventory process in the warehouse
You must decide which inventory method your company will use in the
warehouse. You must configure and test at least one inventory method.
With the continuous inventory method, you take inventory on a selected
number of storage bins in a storage type at any time during the fiscal
year.
Cycle Counting in the warehouse allows you to separate materials into
classes (such as A, B, C) and take inventory for each class separately
several times throughout the year.
With either inventory method, the basic inventory process remains the
same once the inventory document is created.
In this exercise, you can choose whether you would like to process an
inventory using Continuous or Cycle Count as the inventory method.
1-1 You must make the appropriate entry in customizing to run the inventory method of
your choice.
1-1-1 Remember that the inventory method is set in customizing at the storage
type level. Decide whether you want to use Continuous or Cycle Count as
your inventory method and set the method for storage type 002
appropriately.
1-1-2 If you chose Continuous as your inventory method, proceed to step 1-2.
1-1-3 If you chose Cycle Count as your inventory method, proceed to step 1-3.
1-2 Continuous Inventory
1-2-1 Create an inventory document for continuous inventory in storage type 002.
Select some empty bins and select at least one bin that contains a material.
When you go to create the inventory document, all of the bins are
initially selected. Choose Edit → Deselect All, then choose the bins
you wish to include in your inventory document.
1-2-2 Activate the document immediately. Inventory document ____________

1-2-3 Print the inventory document.
1-2-4 Enter the results of the count. You can enter any quantities you like. If you
enter a 0 quantity, be sure to select the Zero Count indicator.
1-2-5 Initiate a recount document.
1-2-6 Enter the results of the recount.
1-2-7 Look in the Information System for Warehouse Management and run the
Differences List. Modify the report to show the Goods Receipt Date, Count
Date, Total Stock, and Counted Quantity. Save your changes as a variant
(Group-##).
1-2-8 Clear differences in the Warehouse Management system. Note the items that
are to be cleared. Check the stock overview for one of the materials. Has
the inventory balance been updated?

002
999
Total
1-2-9 Clear differences in Inventory Management. Material document number:

_________________. Select the material document to view the transaction.
1-2-10 Display again the stock overview for one of the materials to verify the
inventory balance has now been updated and your 999 storage type is clear.

002
1-3 Cycle Count
1-3-1 The cycle count indicator is set in the storage view of the material master.
Run the CC Indicator Report to see the system recommendations for this
indicator. Choose your area to analyze (Plant 1000) and look at all stock
materials. Under Key Figures, choose Consumption/Usage and set the
period to cover the last 3 months. You can override the CC Percentages that
are set in customizing if you select the Change CC Percentages box (Note:
this does NOT change customizing settings!). Under processing, select
Display list first.
At the end of the report you will find a summary. Note the breakdown of ABC
indicators:
ndicator rials Inventories ts

A
B
C
D
1-3-2 Look at the storage location view for the material T-BW02-##. What is the
Cycle Count Indicator for this material? ____________
What does the CC fixed indicate? _________________________________
1-3-3 Create a Cycle Count worksheet. If you are using a 4.6C System, you may
choose to create the document by material or by quant. If you generate the
inventory by quant, enter a range of materials from T-BW-## to T-BW99-
##. DeSelect all, then select 2 or 3 materials to count. Activate the
document immediately.
Document Number: ________________
When you go to create the inventory document, all of the bins are
initially selected. Choose Edit → Deselect All, then choose the bins
you wish to include in your inventory document.
1-3-4 Print the inventory document.

1-3-5 Enter the results of the count. You can enter any quantities you like. If you
enter a 0 quantity, be sure to select the Zero Count indicator.
1-3-6 Initiate a recount document.
1-3-7 Enter the results of the recount.
1-3-8 Look in the Information System for Warehouse Management and run the
Differences List. Modify the report to show the Goods Receipt Date, Count
Date Total Stock and Counted Quantity. Save your changes as a variant
(Group-##).
1-3-9 Clear differences in the Warehouse Management system. Note the items that
are to be cleared. Check the stock overview for one of the materials. Has
the inventory balance been updated?
1-3-10 Clear differences in Inventory Management. Material document number:
_________________. Select the material document to view the transaction.
1-3-11 Display again the stock overview for one of the materials to verify the
inventory balance has now been updated and your 999 storage type is clear.

Physical Inventory Processes with WM - Solutions
Unit: Physical Inventory Processes with WM

Topic: Continuous Inventory and Cycle Counting
1-1
1-1-1 Tools → Accelerated SAP → Customizing → Edit Project → Goto → SAP
Activities → Physical Inventory → Define Types per Storage Type
Position on your warehouse 1## and storage type 002. If you choose to use
the Continuous Inventory, set the inventory method to PZ. If you choose to
use Cycle Counting, set the inventory method to ST and set the indicator for
Cycle Count.
1-2
1-2-1 Logistics → Logistics Execution → Internal Whse Processes → Physical
Inventory → In Warehouse Management → Physical Inventory Document
→ Create → Continuous Inventory

Storage Type 002
Count Date Today’s Date
Only bins not yet counted Selected
1-2-2 Edit → Deselect all. Manually choose a few bins then select Physical
Inventory Document → Activate. Save.
Inventory → In Warehouse Management → Physical Inventory
Document → Print Whse Inventory List.
System → Services → Output Controller. Execute. Select the report and
choose Display.
Document → Count Results → Enter.
Document → Count Results → Recount.
1-2-7 Logistics → Logistics Execution → Information System → Warehouse →
Physical Inventory → With bin Inventory Management → Different List
of Open Inventory Documents. Execute the report. Choose the Current
Display Variant. Identify the fields you wish to add to the report, then
select the arrow Show selected fields. Choose the Save Display Variant
icon to save your changes.
Inventory → In Warehouse Management → Clear Differences →
Warehouse Management → Display List. Select the lines to be cleared and
choose Clear. When you check the stock balance (Favorites → Warehouse
Management Stock Overview), you will notice that the inventory balance
has not yet been updated. You can see that the bin is no longer blocked and
the quantity at the bin is corrected, but there is an offsetting entry in the 999
Differences Storage Type.
Inventory Management. Enter the storage type to clear (999) and execute.
Select the line and choose clear.
1-3
1-3-1 Logistics → Materials Management → Physical Inventory → Special
Procedures → Cycle Counting → Set CC Indicator
→ Display → Display Current Status. Enter your material number, then
select the Storage Location View for Plant 1000, Storage Location 01##.
Document → Create → Cycle Counting (Or choose Cycle Counting
Quantwise). Execute the report, then Edit → Deselect all. Select what you
wish to count then Activate the document.
Document → Print Whse Inventory List.
System → Services → Output Controller. Execute. Select the report and
choose Display.
Document → Count Results → Recount.
1-3-8 Logistics → Logistics Execution → Information System → Warehouse →
Physical Inventory → With bin Inventory Management → Different List
of Open Inventory Documents. Choose the Current Display Variant.
Identify the fields you wish to add to the report, then select the arrow Show
selected fields. Choose the Save Display Variant icon to save your
changes.
Warehouse Management → Display List. Select the lines to be cleared and
choose Clear. The inventory balance has not yet been updated. You can
see that the bin is no longer blocked and the quantity at the bin is corrected,
but there is an offsetting entry in the 999 Differences Storage Type.
Inventory Management. Enter the storage type to clear (999) and execute.
Select the line and choose clear.
Conclusion

Logistics Execution

Integration with
Conclusion 13
© SAP AG 1999
Course Objectives
z Perform basic WM functions such as putaway and

retrieval of stocks and process posting changes
z Customize the integration with Inventory
Management, Production Planning and Delivery
Processing
z Discuss customizing options and settings
within the Warehouse Management
system
© SAP AG 1999
Recommended Follow-up Courses
z LO531 Additional Topics in Warehouse Management

z LO610 Shipping
z LO611 Transportation
© SAP AG 1999
Recommended Follow-up Activities
z Go through the exercises using IDES data

or your own data
z Read on-line documentation
z Read IMG documentation
z Read release notes
© SAP AG 1999
Warehouse Management Structure - Exercises 2

Topic: Storage Location Control

• Copy an existing warehouse
• Create two Storage Locations and assign them to your warehouse.
• Set up a Storage Location as the standard.
• Set up the Storage Location to Storage Location Transfer Posting to be
automatic when the Transfer Order confirmation for putaway occurs.
• Send a mail message to the person confirming the Transfer Order if an
error should occur.
Your Delivery process is such that you want materials in the Goods
Receipt area to be excluded from availability until they are put away to
their final destination. Your delivery process considers materials in
storage location 11## as available inventory. You want to create a new
storage location 22## for your GR area.
When you process materials from 22## to 11##, you want the storage
location to storage location transfer to happen automatically upon
Transfer Order confirmation.
If an error should occur during the TO confirmation, you want to send a
mail message to the person confirming the Transfer Order.
2-1 In your company, you want to structure your warehouse such that received
materials are not available for sales order delivery notes until those materials are
put away to their final storage type. Your delivery notes are created to ship from
storage location 11##. You want to create a new warehouse (2##) with two storage
locations (11## and 22##). 11## will be your standard storage location.
2-1-1 Copy warehouse 001 to your new warehouse 2##.
2-1-2 Create new Storage Locations 11## and 02## in Plant 1000.
2-1-3 Assign the new Storage Locations 11## and 22## to your Plant 1000,
Warehouse 2##.
2-1-4 Establish Storage Location 11## as the standard storage location in Plant
1000 warehouse 2##.
2-1-5 In the same table, set up the new Storage Location 22## so it is not copied
into the transfer requirement from the reference document. This allows the
system to use the standard storage location (11##) when creating a Transfer
Order from the Transfer Requirement.
2-1-6 Set up the Storage Location to Storage Location Transfer to be automatic

upon confirmation of the Transfer Order used to move the goods from the
interim GR area Sloc 22## into the main warehouse (Sloc. 11##) using a
311 movement type. In addition, send a message to the person confirming
the Transfer Order in case an error should occur.
2-1-7 You will need some storage bins in storage type 001. Create 2 storage bins
(Bin 01, Bin 02) manually. These bins are bin type P1, storage section 001.
2-2 Now test your configuration settings.

2-2-1 Create the Warehouse Management view for material T-BW08-## for
warehouse 2##. You want this material to be directed to high rack storage
upon receipt. There is a placement indicator HRL defined for this purpose.
Set the Stock Placement and Stock Removal indicators to HRL for plant
1000, warehouse 2##.
2-2-2 Create a Purchase Order for material T-BW08-##.

Note: Leave the storage location field blank.
Standard PO
Vendor: 1000 C.E.B Berlin

Purchasing Org.: 1000 IDES Deutschland
Purchasing Grp.: 001 LO530
Company Code: 1000 SAP AG
Item Material Quantity Dely Plant Price

0001 T-BW08-## 100 Today 1000 15 UNI
PO Number: _______________________
2-2-3 Receive the goods into your warehouse and storage location 22## with
reference to the above Purchase Order.
Material Document ________________________
2-2-4 Display the Stock Overview for the material T-BW08-##.
Plant Sloc StorType Available For Putaway Pick Qty

1000 2200 902
2-2-5 Create a Transfer Order with reference to the above Transfer Requirement.
TO Number __________
2-2-6 Display the Stock Overviews for the material T-BW08-##.

1000 1100 001
1000 1100 902
1000 2200 902
2-2-7 Confirm the Transfer Order.
2-2-8 Display the Stock Overview for the material T-BW08-##.

1000 1100 001
Warehouse Management Structure - Solutions 2

Topic: Storage Location Control
2-1
2-1-1 Tools → Accelerated SAP → Customizing → Edit Project → Goto → SAP

Reference IMG → Enterprise Structure → Definition → Logistics
Execution → Define, copy, delete, check warehouse number →
Copy/Delete/Check Warehouse Number. Choose Copy org object.

From Warehouse Number 001
To Warehouse Number 2##
2-1-2 SAP Reference IMG → Enterprise Structure → Definition → Materials

Management → Maintain Storage Location. Enter the plant value below,
then choose New Entries.

Plant 1000
Sloc 11##
Description Standard
Sloc 22##
Description GR Location
2-1-3 SAP Reference IMG → Enterprise Structure → Allocation → Logistics

Execution → Assign warehouse number to plant/storage location. Select
New Entries.

Plant 1000
Warehouse 2##
Plant 1000
Warehouse 2##

→ Interfaces → Inventory Management → Define Storage Location
Control → Control of Assignment “Plant/Stor.Loc – Whse Number”.
Find your Storage Location 11## /Warehouse 2## combination and select
Choose. Set the Standard stor loc field to On.
2-1-5 In the same table find the Storage Location 22## for your warehouse and
set the Stor loc not in TR field to On.

→ Interfaces → Inventory Management → Define Storage Location
Control → Stor Location Control in Warehouse Mgmt. Select New
Entries.

Warehouse 2##
Storage Type 902
Plant 1000
Movement Type 311
Combine post changes Blank
Mail A
Receiving Plant Blank
Storage Bin → Create → Manually

Storage Type 001
Storage Bin Bin-01; Bin-02
Storage Section 001
Storage Bin Type P1
2-2

→ Create → Immediately.
Material View Warehouse Management 1
Plant 1000
Storage Type Blank
Stock Removal HRL
Stock Placement HRL
LE Quantity 50
Unit PC
SUT IP
2-2-2 Logistics → Materials Management → Purchasing → Purchase Order →

Create → Vendor/Supplying Plant known.

Purchase Order, Order, Other → Enter Goods Receipt for Purchase
Order.
Enter your purchase order and line item number. Select the Where tab, enter
Storage Location 22##, Select OK and Save.
2-2-5 Favorites → Display Transfer Requirement By Material

Warehouse 1##
Material T-BW08-##
Plant 1000
Storage Location Blank
Select the appropriate TR line item and choose TO in foregr. Choose

Putaway background and save the TO.
2-2-6 Favorites → Total Stock per Material (Warehouse Management)
2-2-7 Favorites → Confirm TO, One Step. Enter the TO Number and choose
Input List. Save.
2-2-8 Favorites → Total Stock per Material (Warehouse Management)

Appendix
Contents:
z This section contains supplementary material to be

used as reference
z This material is not part of the standard course
z Therefore, the instructor might not cover this
during the course presentation
© SAP AG 1999
Frequently-used Menu Paths
Activity Menu Path
Master Data
Create Storage Bin Logistics → Logistics Execution →
Master Data → Warehouse → Storage
Bin → Create → Manually
Change Storage Bin Logistics → Logistics Execution →
Bin → Change → Single Bin
Display Storage Bin Logistics → Logistics Execution →
Bin → Display
Create Material Master Logistics → Logistics Execution →
Master Data → Material → Material →
Create → Immediately
Change Material Master Logistics → Logistics Execution →
Master Data → Material → Material →
Change → Immediately
Create Production Supply Logistics → Logistics Execution →
Area Master Data → Warehouse →
Production Supply → Production Supply
Area → Create/ Change
Create Control Cycle Logistics → Logistics Execution →
Master Data → Warehouse →
Production Supply → Control Cycle
Production Supply → Create
IM Processing
Goods Receipt for Purchase Logistics → Logistics Execution →
Order Inbound Process → Goods Receipt for
Purchase Order, Order, Other
Transactions → Post Goods Receipt →
Enter Goods Receipt for Purchase Order
Goods Receipt for Production Logistics → Logistics Execution →
Order Inbound Process → Goods Receipt for
Enter Goods Receipt for Production
Order
Goods Receipt without Logistics → Logistics Execution →
Reference Inbound Process → Goods Receipt for
Enter Goods Receipt for Other Activities
Activity Menu Path
Display Material Document Logistics → Logistics Execution →
Inbound Process → Goods Receipt for
Display Material Document
Goods Issue for Cost Center Logistics → Logistics Execution →
Outbound Process → Goods Receipt for
Other Transactions → Enter Goods
Issue
Display Stock Balances (IM Logistics → Logistics Execution →
Perspective) Internal Whse Processes → Bins and
Stock → Display → Total Stock per
Material (Inventory Management)
Display Stock Balances (WM Logistics → Logistics Execution →
Material (Warehouse Management)
SD Processing
Delivery Monitor Logistics → Logistics Execution →
Outbound Process → Goods Issue for
Outbound Delivery → Outbound Delivery
→ Lists and Logs → Outbound Delivery
Monitor
WM Processing
Display Transfer Logistics → Logistics Execution →
Requirement Internal Whse Processes → TransRqmt
→ Display …
Create TO following Goods Logistics → Logistics Execution →
Receipt process Inbound Process → Goods Receipt for
Transactions → Putaway → Create
Transfer Order …
Confirm TO Logistics → Logistics Execution →
Inbound Process → Goods Receipt for
Transactions → Putaway → Confirm
Transfer Order → Single Item → In one
step …
Display Stock Balances (WM Logistics → Logistics Execution →
Material (Warehouse Management)
Display Posting Change Logistics → Logistics Execution →
Notice Internal Whse Processes → PostChange
Activity Menu Path
→ Via Inventory Management → Posting
Change Notice → Display → Single
Document
Block/Unblock Storage Bins Logistics → Logistics Execution →
Internal Whse Processes → Bins and
Stock → Block …
Mass Change Storage Bins Logistics → Logistics Execution →
Bin → Change → Selectively
Create Physical Inventory Logistics → Logistics Execution →
Document Internal Whse Processes → Physical
Inventory → In Warehouse Management
→ Physical Inventory Document →
Create …
Differences List Logistics → Logistics Execution →
Information System → Warehouse →
Physical Inventory → With Bin Inventory
Management (2nd one) → Different List
of Open Inventory Documents
Clear Differences (WM) Logistics → Logistics Execution →
Physical Inventory → In Warehouse
Management → Clear Differences →
Clear Differences (IM) Logistics → Logistics Execution →
Physical Inventory → In Warehouse
Management → Clear Differences →
Warehouse Structure
WAREHOUSE STRUCTURE 0xx

R
E
C
E
I 902 003 002 001
V
I
N
G
005
100
100 PRODUCTION LINES --> 901
916
STORAGE TYPES SHIPPING

001 High-rack storage
002 Shelf storage 901 GR area from production
003 Open storage 902 GR area from external source
005 Fixed bin / Picking 916 Shipping area deliveries
0xx Temperature Controlled 100 Production supply areas
© SAP AG 1999
Case Study
R/3 System
Release 4.0
LO530
Case Study
Unit: Case Study
Objective
This case study has been created to challenge you and reinforce
the concepts of the warehouse management application and
customizing that you learned this week. The task is to customize a
warehouse from a presented business scenario, then test the
configuration using standard business processes.
This week, you have been introduced to basic warehouse
management processes within the R/3 system. At the beginning of
the week, we looked at the application and focused on processing
transactions in a warehouse that was already customized for this
purpose. Later in the week, we made changes to that existing
warehouse configuration and tested some transactions. Now, you
will create a new warehouse using an existing warehouse structure
as a model, and test your configuration using standard business
transactions.
Business Scenario
Your company has decided to build a new warehouse because the
existing warehouse has exceeded its capacity. This new
warehouse will be used mainly for storage and shipping of finished
pumps. Your team is responsible for creating and customizing this
new warehouse so that standard business processes can be
carried out using the SAP R/3 system.
On the following pages, you are given the information required to

set up the structure and master data for this new warehouse. A
description of the business processes and a rough layout of the
new warehouse are included. Read through this information
carefully before you proceed to the activities that follow.
Materials
You will store the materials T-MS-##, T-BW-##, and T-BW20-## in the new warehouse. The
following chart describes the palletization data for these materials. Use this chart when you are
ready to enter the material master data later in the exercise.
Material Palletization UoM Pallet

T-MS-## 15 PC IP
10 PC E1
T-BW-## 15 PC IP
10 PC E1
T-BW20-## 25 PC E1
Warehouse Structure
You will have three different types of storage: a fixed bin storage area for picking, a shelf
storage area for smaller amounts and partials, and a pallet storage area for full pallets. You
will need to create some bins in each of these storage types. You can create the bins manually
or automatically for each storage type. In your shelf storage, you will create some bins with
bin type E1 and some with bin type P1.
Processes
For each material listed above, you want to carry a minimum quantity in the fixed bin of at
least 10 PC. Upon goods receipt of these materials, you want them first to be placed in pallet
storage, then in the shelf area if the pallet area is full. The fixed bins will be resupplied from
the shelf storage area, then the pallet area.
You will then test your configuration with goods receipts and goods issue for delivery. It is
your process that goods issue in small quantities (less than 100) should be issued from the
fixed bin storage type, while large quantities (greater than 100) are picked from the other
storage areas.
One way to consider your processes is to think about each movement type and how the
business process in your company works with each movement type in the warehouse. The
following matrix example is intended to help you make the decisions that are relevant to each
movement type.
In the first column, you would list the movement types that are necessary to support your
business processes. In the second column, you can decide whether you need for that
movement type to create a TR, not create a TR, or cancel an existing TR. In the TO column,
indicate whether you want to create the TO manually, create it in the background automatically
or using a batch process, or do you want to have the IM transaction call the TO creation. In the
next column, should confirmation happen automatically or is confirmation of the TO a required
step. Printing options to consider include whether you want to print one item on a page,
multiple items on a page, multiple processing, or no printing at all. Once you have completed
the matrix, you have the information you need to customize the warehouse movements
according to your business requirements. The first line is provided as an example. It is not
necessary for you to complete the table at this time. The table is provided here only as a
reference.
Reference Movement Type matrix:
Movement Transfer Requirement Transfer Order Confirmation Printing (TO)

Type
101 Create TR Manual Manual Single item

102
122
201
311
312
501
561
601
Warehouse Drawing
New Warehouse
Pallet
Storage
Shelf
Goods
Goods Issue
Fixed Bin Storage
Warehouse Configuration
Structure
In customizing under Enterprise Structure, create a new storage location:

Copy storage location 01## as 02##. Remember that the storage location is
the link between IM and WM.
Still under Enterprise Structure, create the new warehouse by copying an existing warehouse.
Warehouse 001 is delivered to you to use as a template for customizing your own warehouse.
Copy warehouse 001 as 2##. 2## becomes your new warehouse number. Remember that the
warehouse structures are copied, but master data for the warehouse is not, so you still need to
create the master data records required for this warehouse.
Still within the Enterprise Structure, assign your new warehouse to plant 1000 / new storage
location 02##. (This activity activates the warehouse.)
Moving to Warehouse management customizing, define the control parameters for

warehouse number:
Change unit of weight if desired from KG to LB
Allow Storage Unit management
Number ranges definition: Verify that your new warehouse has an entry in each of the number
range fields. If not, select the number ranges from your warehouse 1## and enter Copy As.
NR- NR-TO NR-TR NR- NR- NR-SUVA

quant PstChg RefNo
01 01 01 01 01 01 2
Note: VA= Method of Assignment.
Storage Type Definition: When you copied your warehouse, all of the standard storage types
for warehouse 001 copied over to your new warehouse. You can create new storage types for
the three storage areas defined in your business scenario, or you can use the standard storage
types 002 for Shelf Storage, 005 for Fixed Bin Storage, 007 for Pallet Storage. If you create
new storage types, use the standard storage type to copy from. In either case, verify that the
storage types have the following characteristics:
Shelf Storage
SU Mgmt not active
Stock placement control:
Stock placement strategy: Next Empty Bin
Stock placement requires confirmation
SUT Check active
Storage section check/search: Storage section determination and check
Retain over deliveries
Stock removal control:
Stock removal strategy: FIFO
Stock removal requires confirmation
Fixed Bin Storage

SU Mgmt not active
Stock placement strategy: Fixed Bins
Addition to stock permitted
Capacity check method based on maximum quantity per bin in storage type
Stock removal strategy: Fixed bin from material master
Allow negative stock
Pallet Storage
SU Mgmt not active
Stock placement strategy: Storage Unit Type
Mixed storage allowed without limitation
Addition to stock permitted
SUT Check active
Stock removal strategy: FIFO
Complete removal active
Return storage type 002
Storage section definition: When you copied the warehouse, the storage sections were copied
for the existing storage types. If you are not using the standard storage types, you need to
create the following storage sections. If you are using the standard storage types, verify that the
following sections exist:
Shelf Storage: Storage sections 001 - Fast moving items
002 - Slow moving items
Fixed Bin: Storage section 001 - Total Section.
Pallet Storage: Storage section 001 – Total Section
Strategies
Storage type indicators: Storage type indicators can be used to influence the storage type
search sequence. If you would like to create a storage type indicator, make sure that you have
an entry in the storage type search table for each storage type indicator that you create. Then
tie that storage type indicator to the material master record for placement or removal. The
material then will be directed to the storage type indicated in the storage type search table for
that entry.
Activate the new storage type search according to specifications described in the business
process. Use the following table for reference.
In the ”Storage Type Search” table above, for warehouse 200, when material with no storage
type indicator is received (activity E) into unrestricted use or quality stock, it is placed into
storage type 001, then 002. On removal (activity A), materials with no storage type indicator
in unrestricted use or quality stock is picked from storage type 001, then 002. If material with
a storage type indicator of FIX comes in for placement (activity E), it will be placed first in
storage type 007 (pallet storage), and then in storage type 002 (shelf storage). For removal,
(activity A) those materials will be picked from storage type 005, unless the reference
movement type = 320 (replenishment), in which case the material will be resupplied from
storage type 002, then 007.
Storage Section Indicators: Storage section indicators can also be added to the material master
record to direct specific materials into specific sections. In this case, we have said that in the
storage type for fixed bins and pallets, there is only one section. In the shelf storage area, we
have defined two sections: fast and slow moving. Be sure that there is an entry in the storage
section search table for a blank storage section indicator.
The ”Storage Section Search” table above specifies that if material is received into storage type
002 with no storage section indicator, it will be directed first to storage section 001, then
storage section 002. Materials with a storage section indicator of 001 will also be directed
first into section 001, then 002. Materials with a storage section indicator of 002 will be
directed first into section 002, then 001.
Storage Unit Type definition: In the storage types for shelf storage and pallet storage, you
indicated that the SUT Check was active. This means that the system will check the bin type
against the storage unit type before allowing a putaway into a stoage bin. You will be working
with pallet sizes E1 (Europallets) and IP (Industrial pallets). A Europallet will fit in either an
E1 or P1 bin. The Industrial pallet will only fit in the P1 size bin.
Under Definitions, you first verify that the bin types E1 and P1 and storage unit types E1 and
IP exist. Under Assignments, specify that the storage unit types are allowed in the storage
types for shelf and pallet storage.
Storage Storage
Type Unit
Type
Shelf (002) E1 IP
Pallet E1 IP
(007)
Check the assignment of storage unit type to storage bin type. The chart below indicates
that pallet size E1 can go into bin sizes E1 or P1, and that IP can only go into storage bin
type P1.
Storage Storage
Unit Type Bin
Type
E1 E1 P1
IP P1
Activities
Movement Types
Verify WM movement types were copied for your warehouse number. There are no changes
to make to the standard WM movement types at this time.
Inventory
Define the Inventory method for each storage type. Continuous Inventory method (PZ) will be
used for all three storage types.
Interfaces
Inventory Management - Movement Types
Verify MM-WM Interface to inventory management. There are no changes to make to this
table at this time. If you make any changes to this table based on the movement type matrix
provided above, be sure to affect only your warehouse number.
Master Data
Storage Bins
Storage Bin Definition: Storage bins will need to be created in all 3 storage types.
These bins can be created manually or generated automatically using a template.
Shelf and Pallet Storage: Create according to the structure:
St. Storage Maximu Bin Bin Structure

Type Section m Weight Type Begin End
Shelf 001 1000 E1 01-01-01 01-05-
05
Shelf 002 2000 P1 02-01-01 02-05-
05
Pallet 001 2000 P1 A-01 A-10
BIN Material Max Qty

Fixed Bin Storage: FIX-1## T-MS-## 150
FIX-2## T-BW-## 150
FIX-3## T-BW20-## 250
You will also need to create the pre-defined storage bins for the interim storage types.
Remember that these bins are master data and are created from the WM menu.
Add the material master warehouse view to the three materials you are testing with.
Use the information given to you in the business scenario to determine how to fill in the
material master data below. Then, create the material master records/warehouse view as
required for your new warehouse.
Warehouse 2## (Warehouse level data)

Material Palletization U SUT Stock Stock Addn
(LE Quantity) N Removal Placement to
Stock
T-MS-##
T-BW-##
T-BW20-##
Fixed Storage Area (Storage Type level data)

Material Storage Minimu Maximum Control Replenishment
Bin m quantity quantity quantity
quantity
T-MS-##
T-BW-##
T-BW20-##
Test your warehouse configuration
Goods Receipt
Because you are creating the new warehouse to off load inventory from your existing warehouse, you will be moving material from the old
warehouse into the new one using movement type 311, Storage location to storage location. Transfer the following quantities of materials
from storage location 01## to storage location 02##:
Material Total Industrial Pallets Europallets

(IP) (E1)
T-MS-## 65 3 pallets of 15 2 pallets of 10
T-BW-## 50 2 pallets of 15 2 pallets of 10
Goods Issue (Note: contact instructor if you are not familiar with the SD process)
Create a sales order for 5 pieces of T-BW20-##. Before saving the order, add storage
location 02## to the line item‘s shipping detail.
Create a Delivery Note with reference to the Sales Order you created.
Create a Transfer Order with reference to the delivery note. Was the quantity picked from
your fixed bin picking area? If so, confirm the TO and post goods issue. (Note: remember
that you can post the goods issue by putting a 2 in the Adopt pick qty field from the TO
confirmation screen.)
Customer 1400
Sales Org. 1000
Dist. Channel 10
Division 00
Stor. Location 02##
OPTIONAL: Additional set-up
Change the movement type 101 in the MM – WM movement type table to create transfer
orders automatically. Be sure to work only in your warehouse! (You will need to copy the
entry provided for warehouse *** to your own warehouse number.) In addition, have a mail
message sent to your user-id if there are any errors.
Step 1: Copy the appropriate 101 entry in the MM-WM movement type table and set the
field IMÆ WM to A.
Step 2: Look at the Mail column and select the appropriate entry. (To verify that
customizing, look under Activities Æ Transfers Æ Setup automatic TO creation for TRs
and posting change notices.)
Step 3: Test your configuration. Create a Purchase order for 50 pieces of T-BW20-##
using the following data:
Vendor 1000
Purchasing Org. 1000
Purchasing Group 001
Plant 1000
Stor. Location 02##
Step 4: Receive 10 pieces into your warehouse. Your TO should be created automatically
and you will need to confirm it.
Step 5: Create a pre-allocated stock entry for 10 pieces of the material.
Step 6: Receive the remaining 40 pieces into your warehouse. (Your TO will not be
created automatically and you will get an express message in your inbox describing the
error).
Set-up a special movement indicator, so that a goods receipt (101) for material T-BW-## will
be placed directly in Fixed bin storage (005). Change the MM-WM table so that a TR and a
TO are not created for movement type 101. Again, please be sure to affect only your
warehouse!
Step 1: Create a special movement indicator in customizing (master data).
Step 2: Create a new WM movement type. (Copy 101. Change the source storage type to 005 and Fixed Bin.)
Step 3: Copy the appropriate 101 entry in the MM-WM table. Enter your warehouse
number, the new special movement indicator, reference the new WM movement type you
created to the 101 Reference movement type and remove the TR create flag.
Step 4: You can tie the special movement indicator to the material master record for T-
BW-##, or you can enter the special movement indicator at the time of the goods receipt
by clicking on WM parameters.
Step 5: Test. Create a Purchase Order for 10 pieces of T-BW20-##. Receive the goods.
Check the WM parameters.
Menu Path Aid for Case Study
Customizing:
Create Storage Location: Enterprise Structure Æ Maintain Structure Æ Definition Æ
Materials management Æ Maintain storage location. Select New Entries.
Copy a Warehouse: Enterprise StructureÆMaintain Structure Æ Definition Æ Materials

management Æ Define, copy, delete, check warehouse number. Select the ‘Copy
Warehouse’ icon.
Change Warehouse Description: Enterprise Structure Æ Maintain Structure Æ Definition

Æ Materials management Æ Define, copy, delete, check warehouse number. Select
‘New Entries’.
Assign Warehouse to Storage Location and Plant: Enterprise Structure Æ Maintain Structure
Æ Assignment Æ Materials management Æ Assign warehouse number to plant /
storage location. Select New Entries.
Define / Change Control Parameters for warehouse: Materials Management Æ Warehouse

Management Æ Master Data Æ Define control parameters for warehouse number.
Define / Change Number Ranges: Materials Management Æ Warehouse Management Æ

Master Data Æ Define number ranges Æ Assignment.
Define / Change Storage Types: Materials Management Æ Warehouse Management Æ

Master Data Æ Define storage type.
Define / Change Storage Sections: Materials Management Æ Warehouse Management Æ

Master Data Æ Define Storage Sections.
Storage Type Indicators / Search Sequence: Materials Management Æ Warehouse

Management Æ Strategies Æ Activate storage type search.
Storage Section Indicators / Search Sequence: Materials Management Æ Warehouse

Management Æ Strategies Æ Activate storage section search.
Storage Unit Type Search: Materials Management Æ Warehouse Management Æ

Strategies Æ Activate storage bin type search.
Define Special Movement Indicator: Materials Management Æ Warehouse Management Æ

Master Data Æ Material Æ Define Special Movement Indicator.
Master Data:
Create Storage Bins Manually: Logistics Æ Materials management Æ Warehouse
management Æ Master data Æ Storage bin Æ Create Æ Manually.
Create Storage Bins Automatically: Logistics Æ Materials management Æ Warehouse

management Æ Master data Æ Storage bin Æ Create Æ Automatically.
Create Storage Bins for Interim Storage: Logistics Æ Materials management Æ Warehouse
management Æ Master data Æ Storage bin Æ Create Æ For interim storage.
Create Material Master: Logistics Æ Materials management Æ Warehouse management Æ

Master data Æ Material Æ Create.
Change Material Master: Logistics Æ Materials management Æ Warehouse management Æ

Master data Æ Material Æ Change.
IM Processing:
Storage Location to Storage Location: Logistics Æ Materials management Æ Inventory
management Æ Goods movement Æ Transfer posting.
Display Stock Balances from IM: Logistics Æ Materials management Æ Inventory

management Æ Environment Æ Stock Æ Stock overview.
SD Processing:
Create a delivery note: Logistics Æ Sales and distribution Æ Shipping Æ Delivery Æ Create.
WM Processing:
Display Transfer Requirement: Logistics Æ Materials management Æ Warehouse
management Æ TransRqmt Æ Display Æ By storage type (leave storage type blank
for all TRs to display).
Display Transfer Order: Logistics Æ Materials management Æ Warehouse management

Æ TransOrder Æ Display Æ List
Create Transfer Order from Transfer Requirement: From TR display, select a TR and ‘TO in
foregr.’ Select ‘Palletization’; ‘Stock plcmnt foregrnd’; ‘Enter’; ‘Generate+next mat.’
‘Save’.
Confirm Transfer Order: Logistics Æ Materials management Æ Warehouse management Æ

TransOrder Æ Confirm Æ Transfer Order
Display Stock Balances from WM: Logistics Æ Materials management Æ Warehouse

Management Æ Master data Æ Material Æ Stock Æ Stock Overview (or Stock Æ
Bin Stock).
Create a TO for a delivery: Logistics Æ Materials management Æ Warehouse management

Æ TransOrder Æ Create Æ For delivery.
Create entry for Pre-Allocated Stock: Logistics Æ Materials management Æ Warehouse

management Æ TransOrder Æ Pre-allocated stock

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LO530 Warehouse Management

Release 46D 08.05.2003

Copyright 2002 SAP AG. All rights reserved.

All rights reserved.

LO530 3 days LO531 3 days

LO610 2 days LO650 3 days

z LO140 Processes in Logistics Execution

Notes to the user

This course will prepare you to:

At the conclusion of this course, you will be able to:

z Perform basic WM functions such as putaway and

Unit 1 Course Overview Unit 7 Goods Issue

Course Overview 1 Goods Issue 7

Master Data 4 Delivery Processing 10

Goods Receipt 6 Physical Inventory 12

z The model company is a producer and distributor

Course Overview 1 Goods Issue 7

Master Data 4 Delivery Processing 10

Goods Receipt 6 Physical Inventory 12

z The project team must be oriented to the Logistics

At the conclusion of this topic, you will be able to:

z Describe the Logistics Execution Process

Logistics Execution (LE)

Source Invoice Payment

Sales Order Presales

Invoice Verification Inventory Management

Internal and External

Bin Management Planning and Monitoring

Movements Radio - Frequency Warehouse Control

 What tasks does the SAP Warehouse Management system accomplish?

At the conclusion of this topic, you will be able to:

z Create a Goods Receipt in Inventory

 Goods receipt: physical process

1. The goods receipt is entered in the Inventory Management system:

 A Transfer Requirement (TR) is created in order to plan a stock movement.

Goods Receipt Goods Issue

 A transfer requirement (TR) contains the following information:

Goods Receipt HRS Goods Issue

TR Transfer requirement list

At the conclusion of this topic, you will be able to:

z Create a Goods Issue in Inventory Management

Goods issue area

1. The goods issue is entered in the Inventory Management system:

Goods Receipt Goods Issue

 A transfer requirement (TR) contains the following information:

Goods Receipt HRS Goods Issue

Single printout Multiple printout

You are now able to:

Unit: Logistics Execution Overview

At the conclusion of this exercise, you will be able to:

Your Warehouse Number is 1## and your Storage Location is 01##.

Plant Sloc StorType Available For Putaway Pick Quantity

Plant Sloc StorType Available For Putaway Pick Quantity

The Purchase Order number is displayed in the Requirement field.

Transfer Requirement number ________________________________

Requirement tracking number ____ __________________________

Source Storage type & bin number ____ __________________________

Material Document number ________________________________

Hint: The material document number is stored in the header

What tasks does the SAP Warehouse Management system accomplish?

Goods receipt: physical process

A Transfer Requirement (TR) is created in order to plan a stock movement.

A transfer requirement (TR) contains the following information:

A transfer requirement (TR) contains the following information:

Requirement tracking number ______________________

Source Storage type & bin number ______________________

Putaway Strategy _ _________________

Requirement tracking number ____________________

Destination Storage type & bin number _ ___________

Source _

Destination _

Return _

Scenario 1, Example 2: It is possible to manage warehouses from different plants or different

Scenario 2: Several Storage Locations per Plant in One Warehouse Number.

For this scenario there are two examples:

The characteristics of a storage type are defined using various indicators: