LO530 en 46C Warehouse Management

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© SAP AG LO530 Preface-2

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be copied or reproduced in any form or by any means,or translated into another language, without the prior consent of SAP AG. The information contained in thisdocument is subject to change and supplement without prior notice.

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SAP AG 1999

Logistics Execution

Processes inLogistics Execution

LO140 3 days

Level 2 Level 3

Delivery Processes

LO610 2 days

Transportation

LO611 3 days

Additional Topics inWarehouse Management

LO531 3 days

Cross - FunctionalCustomizing in SD

WarehouseManagement

LO530 3 days

LO650 3 days




SAP AG 1999

Course Prerequisites

LO140 Processes in Logistics Execution




SAP AG 1999

Target Group

Audience:

Project team members responsible for the

implementation of Warehouse Management SAP and Partner consultants responsible for customer

implementation of Warehouse Management

Duration: 3 days

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 intendedto be additional examples that are dealt with during the course. Participants can also use them to

deepen their knowledge after the course.



© SAP AG LO530 1-2

SAP AG 1999

Gain an understanding of the basic Warehouse

Management functions and the available tools

used to configure the SAP Warehouse to your

company’s requirements.

This course will prepare you to:

Course Goals



© SAP AG LO530 1-3

SAP AG 1999

Course Objectives

Perform basic WM functions such as putaway and

retrieval of stocks and process posting changes

Customize the integration with Inventory

Management, Production Planning and Delivery

Processing

Discuss customizing options and settings within

the Warehouse Management System

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



© SAP AG LO530 1-4

SAP AG 1999

Course Content

Unit 7 Goods Issue

Unit 8 Posting Changes

Unit 9 Production Integration

Unit 10 Delivery Processing

Unit 11 Replenishment

Unit 12 Physical Inventory

Unit 13 Conclusion

Unit 1 Course Overview

Unit 2 Logistics ExecutionOverview

Unit 3 Warehouse ManagementStructure

Unit 4 Master Data

Unit 5 Integration withInventory Management

Unit 6 Goods Receipt

Preface

Appendices



© SAP AG LO530 1-5

SAP AG 1999

Course Overview Diagram

Conclusion

Warehouse Management

Structure 333

Master Data 444

Integration with

Inventory Management 555

Goods Receipt 666 Physical Inventory 121212

Production Integration 999

Replenishment 111111

Posting Changes 88

Delivery Processing 101010

222

Goods Issue 777

Logistics Execution

Overview

Course Overview 111

1313



© SAP AG LO530 1-6

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Main Business Scenario

The model company is a producer and distributor

of pumps. To optimize the logistics process, thecompany will implement Logistics Execution

utilizing Warehouse Management functionality.



© SAP AG LO530 2-1

SAP AG 1999

Logistics Execution Process Review

Contents:

Logistics Execution Overview



© SAP AG LO530 2-2

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Conclusion


Structure 333

Master Data 444

Integration with





Posting Changes 88


222

Goods Issue 777

Logistics Execution

Overview

Course Overview 111

131313

Logistics Execution Overview: Overview Diagram

Lo g i s t i c s E x e c u t i o n O v e r v i e w



© SAP AG LO530 2-3

SAP AG 1999

The project team must be oriented to the Logistics

Execution Process.

Logistics Execution Overview: Business Scenario



© SAP AG LO530 2-4

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Logistics Execution Overview: Topic Objectives

Describe the Logistics Execution Process

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



© SAP AG LO530 2-5

SAP AG 1999

Integration Process

IMIM

Purchasing (MM)

RequirementRequirement

determinationdetermination

G o o d s

R e c e i p t

InventoryInventory

R e q u i r e -

m e n t

G o o d s

I s s u e

A c c o u n t s Debitor

Creditor

Payment

Payment

Presales

Activities

Order

ProcessingShipping Invoicing

SourceSource

determinationdetermination PO PO ProcessingProcessing

InvoiceInvoice

verificationverification

L o g i s t i c s

E x e c u t i o n

( L E )

R e q u i r e -

m e n t

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.



© SAP AG LO530 2-6

SAP AG 1999

Overview

GoodsGoodsIssueIssue

Internal and ExternalInternal and ExternalAccountingAccounting

MRP

Invoice VerificationInvoice Verification

Goods ReceiptGoods Receipt

PostingPosting

ChangeChange

InvoiceEntry

Inventory Management

Internal Supply

Production

External SupplyProcurement

Presales

ActivitiesSales Order

Shipping Invoicing

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 materialflow of the entire organization.

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.



© SAP AG LO530 2-7

SAP AG 1999


Planning and Monitoring

Movements Warehouse Control

Bin Management

Radio - Frequency

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.



© SAP AG LO530 2-8

SAP AG 1999

WM Integration with Other Systems

Delivery ProcessingDelivery Processing

Inventory ManagementInventory Management

Quality ManagementQuality Management

Production SupplyProduction Supply

TransportationTransportation

Human ResourcesHuman Resources

The Warehouse Management system is integrated with other SAP system modules that provide the

following functions:

All goods movements in the WM system affect data posted in the Inventory Management system

The handling of inventory samples in connection with Quality Management

The supply of materials in connection with the PP/PI systems

The processing of deliveries in conjunction with the Sales and Distribution Shipping system

The processing of items through the Transportation system

The processing of transfer orders using hand-held terminals

Passing data to Human Resources for Incentive Wages



© SAP AG LO530 2-10

SAP AG 1999

Goods Receipt Process

GR area

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)

A Material Document is created to represent the movement of goods into the warehouse. It is

possible to enter palletization data at this point.

An Accounting Document is created to represent the change in value of the goods in the

warehouse.

Warehouse Management (WM)

A quant is created in the Goods Receipt area to represent the existence of goods now in the

warehouse.

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.



© SAP AG LO530 2-11

SAP AG 1999

Process for Stock Placement

differencesConfirmation/differences

IM WM IM

Transfer

Order

Goods

Receipt

Transfer

Requirement

QUANT

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

material document created in IM

accounting document created in IM

quant created in the GR area in WM

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:

a material document is created and

an accounting document is created

There are opportunities for automation at various points throughout the process.



© SAP AG LO530 2-12

SAP AG 1999

Planning a Movement

GR area

Transfer order

Transfer

requirement

HRS

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).



© SAP AG LO530 2-13

SAP AG 1999

Transfer Requirement Information

Transfer requirement

?

Goods Receipt

area

Goods Issue

area

Storage area

What

How much

Palletization

When

From where

Reason/Origin

A transfer requirement (TR) contains the following information:

What is to be moved (material number)?

How much is to be moved (quantity)?

How is it palletized (material master)?

What is the reason/origin (movement type / purchase order)?

What has already been moved (if partial)?

List display functions

single transfer requirement (transfer requirement number)

all TRs for a material

all TRs for a storage type

all TRs for a requirement (original document)

all TRs for a material document



© SAP AG LO530 2-14

SAP AG 1999

Steps for Stock Placement

Goods receipt

posting TOfrom TR

Confirm

transfer

order

Pallet slip

TO

Stock available

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.



© SAP AG LO530 2-15

SAP AG 1999

Transfer Order Information

Goods Receipt

area

Goods Issue

area

HRS

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:

Material number

Quantity to be moved

Source, destination and return storage bins

The information that the transfer order needs comes from several sources:

Material master record

Warehouse management movement type

Strategies for finding the source or destination storage bins

User entries

Source documents, such as transfer requirements and deliveries



© SAP AG LO530 2-16

SAP AG 1999

Transfer requirement list

Overview of TR items

Preparation screen

Details of TO item

TR items

TR

Screen Sequence in Transfer Order Creation

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 transferrequirement. 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.



© SAP AG LO530 2-17

SAP AG 1999

Palletization Notices

200 pcs

TR item 1

Preparation

screen

Transfer order

Item 1 50 pcs

Item 2 50 pcs

Item 3 50 pcs

Item 4 50 pcs

Mat. master

Pallet S1

50 pcs

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.



© SAP AG LO530 2-18

SAP AG 1999

TO Header TO Items ---

Item material src bin

TO item

item...

1

2

3

material

tmx1

tmx1

tmx2

dest bin

01-01

01-02

01-03

act quantity

50

45

50

diff quantity ...

5

Transfer Order Confirmation

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:

Standard 1st screen - confirm actual quantities equal to target quantities

2nd screen - enter differences, if any (one screen per line item)

Input List One screen to confirm quantities and enter differences

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.



© SAP AG LO530 2-19

SAP AG 1999

Create a Goods Issue in Inventory Management

and follow through the removal process in the

warehouse


Logistics Execution Overview: Topic Objectives



© SAP AG LO530 2-20

SAP AG 1999

The Goods Issue Process

Goods issue area

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)

A Material Document is created to represent the movement of goods into the warehouse. It is

possible to enter palletization data at this point.

An Accounting Document is created to represent the change in value of the goods in the

warehouse.

Warehouse Management (WM)

A negative quant is created in the Goods Issue area to represent the existence of goods now in the

warehouse.

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.



© SAP AG LO530 2-21

SAP AG 1999

Steps for Stock Removal

differencesConfirmation/differences

IM WM IM

Transfer

Order

Goods

Issue

Transfer

Requirement

negative QUANT

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

material document created in IM

accounting document created in IM

transfer requirement created in WM

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:

a material document is created and

an accounting document is created

There are opportunities for automation at various points throughout the process.



© SAP AG LO530 2-22

SAP AG 1999

Transfer Requirement Information

?Transfer requirement

Goods Receipt

area

Goods Issue

area

Storage area

What

How much

When

Where to

Why

A transfer requirement (TR) contains the following information:

What is to be moved (material number)?

How much is to be moved (quantity)?

How is it palletized (material master)?

What is the reason/origin (movement type/reference?)

What has already been moved (if partial)?

List display functions:

single transfer requirement (transfer requirement number)

all TRs for a material

all TRs for a storage type

all TRs for an account assignment

all TRs for a material document



© SAP AG LO530 2-23

SAP AG 1999

Steps for Stock Removal

Goods issue

postingTO for TR

Transfer order

Confirm

transfer

order

Material available

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 transferorder 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.



© SAP AG LO530 2-24

SAP AG 1999

Transfer Order for Stock Removal

Goods Receipt

area

Goods Issue

area

HRS

For each stock removal a transfer order is created, which is used to transfer the goods from the

warehouse to the GI area.



© SAP AG LO530 2-25

SAP AG 1999

Data Entry Help for Stock Removal

TR item 1

Preparation

screen

Available

stock

Bin

X 100

400

X 100

x 100

100

01-01-01

01-01-02

01-01-03

01-02-01

01-03-01

Transfer order

Item 1 100 pcs

Item 2 100 pcs

Item 3 100 pcs

300 pcs

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 thequantity is to be removed.



© SAP AG LO530 2-26

SAP AG 1999

Item 1

Item 2

Item 3

Pick list

Mat 1 Src. – Dest.

Mat 2 Src. – Dest.

. . .

Single printout Multiple printout

TA

Item 1

Item 2

Item 3 . . .

Printing a Transfer Order

As a rule, transfer orders are printed immediately after they have been created.

You can print transfer orders in different ways:

as a single document (one TO item per page)

as a combined document (multiple TO items on one page)

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.



© SAP AG LO530 2-27

SAP AG 1999

Change Destination Bin

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.



© SAP AG LO530 2-28

SAP AG 1999

Before Confirmation

Cancel Transfer Order

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.



© SAP AG LO530 2-29

SAP AG 1999

Describe the Logistics Execution Process

Create a Goods Receipt in Inventory

Management and follow through placement and

confirmation in the Warehouse

Create a Goods Issue in Inventory Management

and follow through the removal process in the

Warehouse

You are now able to:

Logistics Execution Overview: Unit Summary



© SAP AG LO530 2-31

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 fromthe 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.



© SAP AG LO530 2-32

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 GROUPNUMBER . 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 WarehouseManagement 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 ____________________



© SAP AG LO530 2-33

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) inthe 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 _________________



© SAP AG LO530 2-34

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? _______




© SAP AG LO530 2-35

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 theentire 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



© SAP AG LO530 2-36

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.



© SAP AG LO530 2-37

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.



© SAP AG LO530 2-38

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?

________________________________________



© SAP AG LO530 2-39

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



© SAP AG LO530 2-41

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




© SAP AG LO530 2-42

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.




© SAP AG LO530 3-1

SAP AG 1999

Warehouse Management Structure

Warehouse Management Structure Elements

SAP AG 2000



© SAP AG LO530 3-2

SAP AG 1999

Conclusion


Structure 333

Master Data 444

Integration with





Posting Changes 88


222

Goods Issue 777

Logistics Execution

Overview

Course Overview 111

131313

W a r e h o u s e M a n a g e m e n t S t r u c t u r e

Warehouse Management Structure:Course Overview Diagram



© SAP AG LO530 3-3

SAP AG 1999

The model company is a producer and distributor

of pumps. To optimize the logistics process, thiscompany will implement Logistics Execution

utilizing Warehouse Management functionality.

WM Structure: Business Scenario



© SAP AG LO530 3-4

SAP AG 1999

Warehouse Management Structure: Objectives

Describe the basic elements of the warehouse

structure

Define possible warehouse structure

scenarios with and without warehouse

management

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



© SAP AG LO530 3-5

SAP AG 1999

GR area

GI area Fixed Bin area

High rack storage 1

Goods receipt

Goods issue

Bulk storage

Example of a Physical Warehouse Structure

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.



© SAP AG LO530 3-7

SAP AG 1999

Storage Bins and Quants

Lower bins

Lower bins

High bins

Bin type

Fast-moving items

Fast-moving items

Storage section

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.



© SAP AG LO530 3-8

SAP AG 1999

Quant

Storage bin

Storage section/ Picking area

Storage type

Warehouse (complex) number

Quants are defined by:

Material / Batch

Stock category

Special stock

Plant / Storage location

Storage unit number

WM-System Hierarchy

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.



© SAP AG LO530 3-9

SAP AG 1999

Examples of a (Physical) Warehouse Structure

Storage areas

HRS

A

B

Shelving areaHRSBulk storagePicking area

PlantsPlants

Example of a physical warehouse structure that can be depicted in the SAP System.



© SAP AG LO530 3-10

SAP AG 1999

The Warehouse Structure in the IM System

PlantsPlants

0001

Storage

locations 00010001 00020002 00010001 00020002 00030003

0002

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.



© SAP AG LO530 3-11

SAP AG 1999

Possible Structure with the WM System (1-1)

Storage

types

PlantsPlants

001001 002002 001001 002002 003003

Storage

locations

0001 0002

Warehouse number 001 Warehouse number 002

00880088 00880088

Scenario 1

Example 1

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.



© SAP AG LO530 3-12

SAP AG 1999

Possible Structure with the WM System (1-2)

Storage

types001001 002002

Warehouse number 001

Storage

locations 00880088 00880088

PlantsPlants

0001 0002

Scenario 1

Example 2

003003 004004

00010001

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 location0003).



© SAP AG LO530 3-13

SAP AG 1999

Possible Structure with the WM System (2)

Storage

types001001 002002


003003 004004

Storage

locations00870087 00880088 00030003

PlantPlant

Scenario 2

0001

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.



© SAP AG LO530 3-14

SAP AG 1999

Possible Structure with the WM System (3)

Storage

types004004


916916

Storage

locations00900090 00880088 00920092

PlantPlant

Scenario 3

0001

005005902902 100100

For this scenario there are two examples:

Movement of Stock from the Goods Receipt Area

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.



© SAP AG LO530 3-15

SAP AG 1999

D

O

O

R

S

T

A

G

I

N

G

A

R

E

A

Goods Issue

Goods Receipt

W

A

R

E

H

O

U

S

E

Organization Structures in the Warehouse

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 thegoods are temporarily stored after unloading/before loading. In Customizing, these areas are

assigned to the corresponding doors.



© SAP AG LO530 3-16

SAP AG 1999

Warehouse Level Data

Define Weights/

Units of Measure

Define

BlockingLogic

Notifications &

Messages

Assign

Number

Ranges

Assign

Region

Code

Control DataDefine

Differences

Allow

Partial Picking

storage types:

Unit of Weight

Unit of Measure default data

Blocking Logic

Error Messaging / Notifications

Number Ranges

Define Doors

Handling of inventory differences

Interfaces:

- Inventory Management

- Shipping

- Production

- Quality Management



© SAP AG LO530 3-17

SAP AG 1999

Storage Type Level Data

Storage typeStorage type LevelLevel

Placement

Strategies

Assign Inventory

Methods

Activate Full

Removal

Removal

Strategies

Activate Hazardous

Material Handling

Activate Storage

Unit Management

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

control indicators for stock placement

(examples: placement strategy, mandatory confirmation, mixed storage, addition to existing stock,

capacity check, overdeliveries, hazardous material control).

control indicators for stock removal

(examples: removal strategy, mandatory confirmation, complete stock removal, return storage,

zero stock check, negative stock).

control indicator for inventory procedures



© SAP AG LO530 3-18

SAP AG 1999

Copying a Warehouse

001 002

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.



© SAP AG LO530 3-19

SAP AG 1999

Warehouse Management Structure: Unit Summary

Describe the basic elements of the warehouse

structure

Define possible warehouse structure scenarios

with and without Warehouse Management




© SAP AG LO530 3-21

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) _______________



© SAP AG LO530 3-22

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.



© SAP AG LO530 3-23

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.



© SAP AG LO530 3-24


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

1st E1

2nd

IP



© SAP AG LO530 4-1

SAP AG 1999

Master Data

Storage Bin Data

Material Master Data

Contents:



© SAP AG LO530 4-2

SAP AG 1999

Conclusion


Structure 333

Master Data 444

Integration with





Posting Changes 88


222

Goods Issue 777

Logistics Execution

Overview

Course Overview 111

131313

Master Data: Course Overview Diagram

M a s t e r D a t a



© SAP AG LO530 4-3

SAP AG 1999

Your company is a major producer of pumps.

Engineering has designed a new flywheel for thechrome 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.

Master Data: Business Scenario



© SAP AG LO530 4-4

SAP AG 1999

Master Data: Topic Objectives

Create storage bin data

Create storage bin data using a template




© SAP AG LO530 4-5

SAP AG 1999

Master Data

Warehouse

Material

Warehouse Structure

Warehouse number

Storage type

Storage bins

Material

General data

Data/warehouse no.

Data/storage type

The master data of the Warehouse Management system is divided into:

Warehouse structure data (for example, capacity, fire-containment sections)

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.



© SAP AG LO530 4-6

SAP AG 1999

Storage Bin Data

Storage bin dataWarehouse no.: 001

Storage type 001Storage bin: 01-02-02

Section

Capacity

Storage bin type

Blocking indicator

Inventory data

Verification Data

Quant data

Material number

Stock quantity

GR date

Inventory data

Inspection Lot

SLED

Each storage bin is defined in the system by a master record. The master record contains the

following:

The bin characteristics data (storage section, storage bin type, max. weight, blocking indicators)

is created when you create the storage bin master record.

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:

storage bin identification

material identification (material number, plant, batch, stock category, special stock)

movement data (for example, GR date)

stock quantities (total, available, currently in transfer for stock placement or stock removal)

inventory data

blocking indicators



© SAP AG LO530 4-7

SAP AG 1999

Creating Storage Bins Automatically

Warehouse number

001

Storage type 001

Warehouse number

001

Storage type 001

Level

01 to 04

Row

A01 to A02

Stack

10 to 40

A01-10-01

A01-10-02

A01-10-03

A01-10-04

A01-20-01

.

.

.

A02-10-01

A02-10-02

A02-10-03

.

.

.

To define a range of coordinates, you must define:

the location of the bins to be generated (warehouse number / storage type)

the current number of the coordinate range

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)

characteristics/features of the storage bins

assignment to a storage section

storage bin type

max. weight



© SAP AG LO530 4-8

SAP AG 1999

Storage typeStorage type 001001

Storage bin R R S S L L

Sort Sequence 3 4 1 2

Sort field L L S S

without sort variable

with sort variable

R o w

R = Row (Aisle)

S = StackL = Level

Top view

Define Sort Sequence for Placement / Removal

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 bincoordinate 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.



© SAP AG LO530 4-9

SAP AG 1999

Extend a material master view for WM data


Master Data: Topic Objectives



© SAP AG LO530 4-10

SAP AG 1999

General Data

Material number Description

WeightBase unit of measureOrder unitHazardous material number ...

Plant-Specific Data

Requirements planning dataIssue unit of measureBatch check requirement...

Warehouse No.-Specific Data

WM unit of measureStorage type indicator Storage section indicator Storage unit quantity...

Storage Type-Specific Data

Fixed binControl quantityReplenishment quantityMax./min. per storage binRounding quantity

Material Data

The material data relevant for the Warehouse Management system is grouped as follows:

general material data

plant-specific data

data specific to the warehouse number

data specific to the storage type



© SAP AG LO530 4-12

SAP AG 1999

: Standard screen sequence (without preselection)

Material

Material

(Ind. sector)

(Material type)

(Reference)

Data screen(s)Views

- Basic data

- Purchasing

- Accounting- Warehouse

Management

Organizational

levels

- Plant

- Storage location- Warehouse no.

- Storage type

Screens in a Material Master

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.



© SAP AG LO530 4-13

SAP AG 1999

LE Quantity

1

2

3

Un SUT

40 PC IP

Transfer order

Warehouse 2

Palletization Data

25 PC E1

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.



© SAP AG LO530 4-14

SAP AG 1999

Alternative UoM in the plant

(Issue/Order/Sales unit)

Piece

Box

Alternative

unit of measure


Base unit of measure

Carton

Palletization

Pallet quantity

4

12

48

Units of Measure

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).



© SAP AG LO530 4-15

SAP AG 1999

Master Data: Unit Summary

Create storage bin data

Create storage bin data using a template

Extend a material master view for WM data




© SAP AG LO530 4-17

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 binwhere 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.



© SAP AG LO530 4-18

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.



© SAP AG LO530 4-19

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.



© SAP AG LO530 4-20

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.



© SAP AG LO530 4-21

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.



© SAP AG LO530 4-22

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.



© SAP AG LO530 4-23

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



© SAP AG LO530 4-24

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.



© SAP AG LO530 5-1

SAP AG 1999

Integration with Inventory Management

Contents:

Inventory Management Interface



© SAP AG LO530 5-2

SAP AG 1999

Conclusion


Structure 333

Master Data 444

Integration with





Posting Changes 88


222

Goods Issue 777

Logistics Execution

Overview

Course Overview 111

131313

I n t e g r a t i o n w i t h I n v e n t o r y M a n a g e m e n

t

Integration with Inventory Management:Course Overview Diagram



© SAP AG LO530 5-3

SAP AG 1999

The project team is responsible for customizing the

Inventory Management interface. An overview of this interface is essential to understanding the

options for customizing.

Integration with IM: Business Scenario



© SAP AG LO530 5-5

SAP AG 1999

Inventory Management/WM Interface

Inventory

Management

Warehouse

Management

Quant in the

warehouseTransfer

order

Goods receiptdocument

Stock in thestorage location

Quant

GR areaTransfer

requirement

Interim storage

Stock placement in Warehouse Management

Inside the warehouseInside the warehouse

GR posting in Inventory ManagementGR posting in Inventory Management

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 (parallelinventory 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.



© SAP AG LO530 5-6

SAP AG 1999

Storage type searchStorage type search


Movement type

Reference movement type

InventoryInventory ManagementManagement

Movement type

Interim Storage Area Search

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 followinginformation:

movement type for Warehouse Management

stock category of the quant to be generated

indicator for generating transfer requirements

From the WM movement type then, the following information is determined:

interim storage type and interim storage bin

control indicator for processing, confirming and printing transfer orders

special movement indicator for storage type search



© SAP AG LO530 5-7

SAP AG 1999

WarehouseWarehouse Number Number

Movement TypeMovement TypeDynamic

F i x e d B i n

Src

Dest

Ret

Ty Stor.bin FxdBn Dyn

Interim Storage: Bin Types

P r e - d e f i n e d

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.



© SAP AG LO530 5-8

SAP AG 1999

Transfer Order Storage Type Search - Placement

MovementMovement Type /Type /

Transfer Transfer requirement typerequirement type

Stock placement strategy

St. type Stor. sect. Dest. bin

001 002 05-06-01(+)(+) Dest Dest.. itemitem

Storage section search

Storage type search

Stor. type Stor. sect. Source bin

902 001 GR area(-)(-) Source item Source item

(1)

(2)

(3)

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 warehouseis assigned. The destination storage bin can be:

entered manually by the user

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.



© SAP AG LO530 5-9

SAP AG 1999

Transfer Order Storage Type Search - Removal

Stor. type Stor. sect. Source bin

001 002 05-06-01(-)(-) Source item Source item

Stor. type Stor. sect. Dest. bin

9XX 001 GI area(+)(+) Dest Dest.. itemitem

Stor. type Stor. sect. Return bin

001 002 05-06-01(+)(+) Return item Return item

Storage type search

Transfer requirement /

Movement TYpe

Stock removal strategy

Stock return control

+ Stock placement strategy

(1)

(2)

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:

entered manually by the user

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.



© SAP AG LO530 5-10

SAP AG 1999

TO Processing Overview

Goods movementGoods movement

Storage bin

search

Storage bin type search

Ref. Mov. Type

Interim storage

type search

Storage section search

TO processingTO processing

MM - Mov.Type

Storage type

search

WM - Mov.Type

IMIM

WMWM

Transfer

requirement

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:

the movement type

material-specific factors: stock placement and removal indicators, storage class, water pollution

class, stock category and special stock indicators

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.



© SAP AG LO530 5-11

SAP AG 1999

Automatic Creation of Transfer Orders

IM

Document

IMIM

WMWM



asynchronousasynchronous

Transfer

requirement

Transfer

order

Mail

Error Error

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 postingchange 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”.



© SAP AG LO530 5-13

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 theWM 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 ______________________



© SAP AG LO530 5-14

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.



© SAP AG LO530 5-15

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 _______


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.



© SAP AG LO530 5-16

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



© SAP AG LO530 6-1

SAP AG 1999

Goods Receipt

The Goods Receipt Process:Influencing factors and options for customizing

Contents:



© SAP AG LO530 6-2

SAP AG 1999

Conclusion


Structure 333

Master Data 444

Integration with





Posting Changes 88


222

Goods Issue 777

Logistics Execution

Overview

Course Overview 111

131313

Goods Receipt: Course Overview Diagram

G o o d s R e c e i p t



© SAP AG LO530 6-3

SAP AG 1999

In the model company, the process for goods

receipt is such that a Transfer Order is createdimmediately 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.

Goods Receipt: Business Scenario



© SAP AG LO530 6-4

SAP AG 1999

Goods Receipt: Objectives

Customize the goods receipt activity so that the

Transfer Order process immediately follows the

Inventory Management process

Customize the storage type and storage section

search so materials are put away into the

appropriate storage bin

Explain the printing customizing options for

Transfer Orders

At the completion of this unit, you will be able to:



© SAP AG LO530 6-5

SAP AG 1999

Storage Type

Check

By

Quantity

Option 2Check

By

Weight

Option 1

Check

By Palletization

Option 3

Capacity Check

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.



© SAP AG LO530 6-6

SAP AG 1999

Capacity Usage Based on the Material

Storage Bin 01-01-01

Total Capacity = 100

9 x 11 = 99

Remaining capacity = 1

Material 4711

Capacity Usage = 11

The storage of materials in a bin can be based on a neutral indicator. The basic prerequisites for

these capacity checks include:

Each storage bin must have a dimensional and unit-less capacity

Each material can use a specific capacity for each unit of measure

Each storage unit type can have a specific capacity for each storage unit

Example 1: Capacity usage based on Material

The material is managed in the base unit of measure “pieces” and has a capacity usage of 11 per

piece.

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.



© SAP AG LO530 6-7

SAP AG 1999

Capacity Check based on the SUT



Material 4711

SUT Capacity = 12

8 x 12 = 96

Remaining capacity = 4

Example 2: Capacity usage based only on SUT (storage unit type)

(Must be using SUM in this storage type)

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.



© SAP AG LO530 6-8

SAP AG 1999

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

Example 3: Capacity usage based on the sum of the material and SUT (must be using SUM in this

storage type)

Eight pieces can be stored in storage bin 01-01-01 on an E1 pallet. This leaves no remaining

capacity for the bin.



© SAP AG LO530 6-9

SAP AG 1999

Capacity Check based on material and SUT (2)



(4 X 11) + (4 X 12) = 92

eg cubic feet

Remaining Capacity = 8

Material 4711

Capacity Usage = 11

SUT Capacity = 12

Example 3: Capacity usage based on the sum of the material and SUT (must be using SUM in this

storage type)

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 stackedon 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.



© SAP AG LO530 6-10

SAP AG 1999

Handling Differences

40 pcs

Confirm Target

Actual

Diff.

50 pcs

40 pcs

10 pcs

GR posting

TO item

SRC GR Target 50 pcs

DEST HRS

Difference posting

inventory management

50 pcs

Difference

10 pcs

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.



© SAP AG LO530 6-12

SAP AG 1999

2 Second confirmation

when goods are

placed in the goods

issue area

2 Step Confirmation

1

First confirmation

when goods arepicked from the bin

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 transferredto 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.



© SAP AG LO530 6-13

SAP AG 1999

Pre-allocated Stock Check

Goods Receipt

area

Bin XYBin XYPre-allocatedstock check

Pre-allocated stock

Bin XY Mat. XX Qty 20 pcs

Reserve storage

Production storage areaXXXX

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.



© SAP AG LO530 6-14

SAP AG 1999

Storage Type Search Control

Material

X

Material Y

Storage type

indicator 003

St or . t y pe ind. 003

Goods Receipt

area

Goods Receipt

areaHigh rack storageHigh rack storage

Fixed Bin Picking AreaFixed Bin Picking Area

FIX-YMaterial

Y

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.



© SAP AG LO530 6-15

SAP AG 1999

Storage Section Search Control

Mat. Y

Stor. sect. ind.

LLL

Material

X

Section 001 Section 002

Fast-moving

items

Slow-moving

items

(LLL = Storage section indicator

for slow-moving items)

Material

Y

S t o r. s

e c t. i n

d. “ L L L

”

Goods Receipt

area

Goods Receipt

area

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.



© SAP AG LO530 6-16

SAP AG 1999

Variable Control by Storage Unit Type

Goods Receipt

area

Mat. X100 pcs IP50 pcs S1

SmallSmall binsbins

Large binsLarge bins

Std. pallet

Industrialpallet

S U T I P

S U T S 1

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 thatstorage 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.



© SAP AG LO530 6-17

SAP AG 1999

Special Movement Indicator

Goods receipt postingGoods receipt posting

High rack storage

FixedFixed binbin storagestorage

Special movement

indicator

Fixed bin

storage: FIX- Mat

Inside theInside the

warehousewarehouse

InterimInterim storage areastorage area

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.



© SAP AG LO530 6-18

SAP AG 1999

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

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 bechanged 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).



© SAP AG LO530 6-19

SAP AG 1999

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.



© SAP AG LO530 6-20

SAP AG 1999

Manual Bin

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 intothe 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.



© SAP AG LO530 6-21

SAP AG 1999

Fixed Bin (F)

Material AA

Stor. type 005

Fixed bin: Fix-AA

Material AA

Stor. type 005

Fixed bin: Fix-AA

FIX-AA FIX-BB FIX-CC

FIX-DD FIX-EE

AAAA

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:

addition to existing stock allowed

capacity check



© SAP AG LO530 6-22

SAP AG 1999

Near Fixed Bin (K)

Material AA

Stor. type 005

Fixed bin: Fix-AA

Material AA

Stor. type 005

Fixed bin: Fix-AA

FIX-AA FIX-BB FIX-CC

FIX-DD FIX-EE

AAAA

AA BB

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.



© SAP AG LO530 6-23

SAP AG 1999

Addition to Existing Stock (I)

AAAA

AAAA

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.


capacity check

addition to existing stock allowed

no mixed storage



© SAP AG LO530 6-24

SAP AG 1999

BinBin typetype PAPA SUT: P2SUT: P2



Standard

pallet

Standard

pallet

Standard

pallet

Industrial palletIndustrial pallet

Standard

pallet

02-10-01

02-08-01

02-09-01

Industrial palletIndustrial pallet

industrial palletindustrial pallet

Pallet Strategy (P)

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.


SUT check

mixed storage



© SAP AG LO530 6-25

SAP AG 1999

Storage Bin Section Definition

1

2

A

B

3

1 2 3 A B

1 2 3 A B

Storage bin P-001

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.



© SAP AG LO530 6-26

SAP AG 1999

Open Storage (C)

Bin XXX Bin YYY

Storage type 003Storage type 003

Material F

Material XMaterial X

Y Y BB

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.



© SAP AG LO530 6-27

SAP AG 1999

Next Empty Bin (L)

Stock placement sequence without sort field

Stock placement with sort field

High rack storage (top view)High rack storage (top view)

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).



© SAP AG LO530 6-29

SAP AG 1999

Transfer order

Print Report:Multiple Processing and

Two- step picking:

RLVSDR40

RLKOMM40

SAPSCRIPTSAPSCRIPT formform

Header

Mainsection

Footer

Transfer Order and Multiple Printing

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.



© SAP AG LO530 6-30

SAP AG 1999

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

Setting Up Printing

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 spoolindicator.

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



© SAP AG LO530 6-31

SAP AG 1999

Goods Receipt: Unit Summary


Customize the goods receipt activity so that the

Transfer Order process immediately follows the

Inventory Management process

Customize the storage type and storage section

search so materials are put away into the

appropriate storage bin

Explain the printing customizing options for

Transfer Orders



© SAP AG LO530 6-34

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.



© SAP AG LO530 6-35

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.



© SAP AG LO530 6-37

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.

1-2-2 SAP Reference IMG Logistics Execution Warehouse Management 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 2

nd 3rd

1## 015 001 002



© SAP AG LO530 6-38

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.



© SAP AG LO530 7-1

SAP AG 1999

Goods Issue

Customizing the Goods Issue Process

Contents:



© SAP AG LO530 7-2

SAP AG 1999

Conclusion


Structure 333

Master Data 444

Integration with





Posting Changes 88


222

Goods Issue 777

Logistics Execution

Overview

Course Overview 111

131313

Goods Issue: Course Overview Diagram

G o o d s I s s u e



© SAP AG LO530 7-3

SAP AG 1999

In the model company, the process for goods issue

is such that a Transfer Order is created in theforeground, 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.

Goods Issue: Business Scenario



© SAP AG LO530 7-4

SAP AG 1999

Goods Issue: Objectives

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 LO530 7-5

SAP AG 1999

Full Stock Removal Options

Return to same binReturn to same bin

Retain at destinationRetain at destination

Transfer to another binTransfer to another bin

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 quantitiesto a storage bin:

Stock remains at the destination bin, that is, the storage bin to which it is being transferred

Stock is returned to the source bin, that is, the storage bin in which it was originally stored

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.



© SAP AG LO530 7-6

SAP AG 1999

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

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 bechanged 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.



© SAP AG LO530 7-8

SAP AG 1999

FIFO (F)

5-1

3-1

4-1Goods Receipt:

3-1

Goods Receipt = Current Date

Goods Receipt = Document DateGoods Receipt = Posting Date

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.



© SAP AG LO530 7-10

SAP AG 1999

Partial Quantities First (A)

Order Order

amountamount

100 pcs

100 pcs

100 pcs

80 pcs

30 pcs

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:

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.

If no standard storage units are available, partial storage unit quantities are used.

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.

If no partial storage unit quantities are available, full storage units are broken.



© SAP AG LO530 7-12

SAP AG 1999

Cascadable through Quantity Rounding - M

1 - 19 = Piece

Storage Type=005

Control Qty = 19

20-100 = Box

Storage Type = 001

Control Qty = 99Rounding Qty = 20

Multiples of 100 = PalletStorage Type = 007

Rounding Qty = 100

Material Master:

Palletization Qty = 100

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.



© SAP AG LO530 7-14

SAP AG 1999

Shelf Life Expiration Date (H)

Material 4711

Minimum

remaining time

150 days

Material 4711

Minimum

remaining time

150 days

47114711

7/137/13

Goods receiptGoods receipt 2020 FebFebMaterial 4711Material 4711

ExpirationExpiration date 21 Marchdate 21 March

Goods receiptGoods receipt

Material 4711Material 4711

ExpirationExpiration date 13date 13 JulyJuly

OKOK

IMIMGoods receipt area 4711

4/3

Goods issue area

47114711

3/213/21

47116/10

Stock removal

strategy “H”

SLED Control List

Type Bin Mat. Rem.Time001 A 4711 - 12 days

001 B 4711 - 9 days

..... ... ....... - 6 days

Goods issueGoods issue

onon 22 22 FebruaryFebruary

Material 4711Material 4711

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.



© SAP AG LO530 7-15

SAP AG 1999

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 ***

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.



© SAP AG LO530 7-16

SAP AG 1999

Goods Issue: Summary

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 LO530 7-17

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: _________________



© SAP AG LO530 7-20

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.

1-3-4 Favorites Confirm TO, One Step




© SAP AG LO530 8-1

SAP AG 1999

Posting Changes

Contents:

Stock Transfer: Logical vsPhysical

Bin to Bin Movements

Change in Stock Category

Material to Material/Batch to

Batch Transfer

Initiate Post Change from WM



© SAP AG LO530 8-2

SAP AG 1999

Conclusion


Structure 333

Master Data 444

Integration with





Posting Changes 88


222

Goods Issue 777

Logistics Execution

Overview

Course Overview 111

131313

Posting Changes: Course Overview Diagram

P o s t i n g C h a n g e s



© SAP AG LO530 8-3

SAP AG 1999

In day-to-day warehouse activity, it is often necessary

for warehouse workers to move inventory from onebin 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.

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, usingposting change notices.

Posting Changes: Business Scenario



© SAP AG LO530 8-5

SAP AG 1999

Stock Transfer / Transfer Posting

Stock Transfer

Materials Warehouse

Distribution Center

In quality inspection

Unrestricted Use

“Logical” movement

Physical movement

Transfer Posting

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 thetransfer from blocked material into unrestricted stock, a change in the stock category of the material



© SAP AG LO530 8-6

SAP AG 1999

Bin to Bin Transfer

Trans. order

without

reference

Transfer order

Confirm

TO Material available

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 placewithin the same warehouse number do not require the use of the Inventory Management system.



© SAP AG LO530 8-7

SAP AG 1999

Create TO from Stock List

Clear Bins / Bin areas

Group together

Transfer when capacity reached

Transfer for change in classes in storage type

Supply to Pick Areas

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:

Clear bins or bin (for example, because of maintenance work or for other reasons).

Group together stocks that are dispersed throughout the warehouse (consolidation).

Supply stocks to a picking area.

Transfer stock as soon as a specified capacity has been reached.

Transfer stock when there has been a change in the storage classes in a storage type.



© SAP AG LO530 8-8

SAP AG 1999

Material to Material / Change in Batch

“Sharp Cheese”“Mild Cheese”

1994

BatchA

BatchA

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 ofanother 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.



© SAP AG LO530 8-9

SAP AG 1999

Posting Change: Material Number

Example:

Material Ato

Material B

Transfer posting in Inventory Management

Material A to Material B (100 pcs)

Posting change

area

Quant A 100 -

Quant B 100 +

Posting change

notice

Item 1 A 100 -

Item 2 B 100 +

Item 1 Mat. A

Src 001 001 01-01-01Dest 922 001 PC area

Item 2 Mat. B

Src 922 001 PC areaDest 001 001 01-01-01

Storage type 001 Posting change transfer order

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 changenotice.

You can post the posting change quantity to the original bin or to another storage bin.



© SAP AG LO530 8-10

SAP AG 1999

Stock Transfer/Transfer Posting (II)

Company code Company code

Plant Plant

Storage Location Storage Location

Physical stock transfers can occur at three different levels:

Company code to company code

Plant to plant

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.



© SAP AG LO530 8-11

SAP AG 1999

Stock Transfer / Posting Change: Plant to Plant

Stock PlacementStock Placement

Storage

location

Warehouse

Storage

location

Ware-

house

Plant 1

0088

Plant 2

0099

002001

Plant 1 Plant 2

0088 0099

Stock RemovalStock Removal

001

Posting ChangePosting Change

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 (inthe 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.



© SAP AG LO530 8-12

SAP AG 1999

Posting Changes During Stock Placement

Reserve storage

50 pcsA Q

GR area

Posting change

areaPosting changes

(Release from

quality inspec.)

Material A

100 pcs

GR posting

A Q

50 pcs

A Q -100

A +100

Tr. requirement

50 pieces

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 usedto 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.



© SAP AG LO530 8-13

SAP AG 1999

Transfer Posting: Initiated in WM

Posting

Change

Posting

Change

Automatic Update

WM IM

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 carryout certain posting changes directly as a one-step process.



© SAP AG LO530 8-15

SAP AG 1999

Posting Changes: Summary


Recognize when an inventory movement will

create a posting change notice in WM

Process bin to bin movements within the

warehouse

Demonstrate how to process a posting change

notice in WM in the foreground

Demonstrate how to configure the system so that

posting change notices can be initiated in WM



© SAP AG LO530 8-17

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 fromone 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.

Storage Type Storage Bin Total Stock

007

007

007

007

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.




© SAP AG LO530 8-19

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 ConfirmTO, One Step.


Stock Bin Stock per Material



© SAP AG LO530 8-20

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 thelist.

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



© SAP AG LO530 8-21

Exercises 2


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 QualityInspection 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-##.



© SAP AG LO530 8-22

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



© SAP AG LO530 8-23

Solutions 2


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.





© SAP AG LO530 8-25

Exercises 3


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.



© SAP AG LO530 8-26

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 QuantityT-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.

Material StorType Available For Putaway Pick Quantity

T-BW-##



© SAP AG LO530 8-27

Solutions 3


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



© SAP AG LO530 8-28

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.




© SAP AG LO530 9-1

SAP AG 1999

Production Integration

WM Staging

Customizing Production Integration

Kanban Replenishment

Contents:



© SAP AG LO530 9-2

SAP AG 1999

Conclusion


Structure 333

Master Data 444

Integration with





Posting Changes 88


222

Goods Issue 777

Logistics Execution

Overview

Course Overview 111

131313

P r o d u c t i o n I n t e g r a t i o n

Production Integration: Course Overview Diagram



© SAP AG LO530 9-3

SAP AG 1999

In your company, you replenish the production

area from the warehouse. You need to examinedifferent possibilities for accomplishing this

replenishment.

Production Integration: Business Scenario



© SAP AG LO530 9-4

SAP AG 1999


Describe the replenishment strategy for

WM Staging

Set up master data and customizing for

processing WM Staging

Production Integration: Topic Objectives



© SAP AG LO530 9-5

SAP AG 1999

R

EC

E

I

V

I

N

G

902 003 002

0xx

001

005

916

PRODUCTION LINES -->

WAREHOUSE STRUCTURE

100100 901901

ShippingWarehouse 100 Storage Location 0100

Scenario for WM Staging

In this example, the Production Area is managed within a WM-relevant Storage Location.



© SAP AG LO530 9-6

SAP AG 1999

Backflush Components

Goods Receipt for

Finished Assembly

Production

Planning

Warehouse

Management

Inventory

Management

Create Production Order

Release Production Order

Stage Components

Confirm Production Order

Transfer Requirement

Transfer Order

Confirm TO

Transfer Requirement

Transfer Order

Confirm TO

Production Order Process Review

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.



© SAP AG LO530 9-7

SAP AG 1999

Production Supply Area

Production Supply Area

Work Center Master Storage Location

Work Center A1

Work

Center B3

PSA = WM001

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.



© SAP AG LO530 9-8

SAP AG 1999

Control Data:Control Data:

Number of KANBANsNumber of KANBANsKanban QuantityKanban Quantity

Supply Area

PlantMaterial

Destination Data:Destination Data:

Warehouse Number Warehouse Number Storage TypeStorage Type

Storage BinStorage Bin

Staging Indicator Staging Indicator

Storing PositionStoring Position

Control Cycle

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.



© SAP AG LO530 9-9

SAP AG 1999

Material Staging Indicators

Crate Parts

Release Order Parts

Pick Parts

Production

Order

Manual Staging

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:

automatically when the production order is released

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.



© SAP AG LO530 9-10

SAP AG 1999

A separate storage bin for production supply is

defined for each material

and control cycle.

You can define thedynamic storage bin

“PRODUCTION ORDER”

in the control cycle for

pick parts.

PO 6000378

A

B

PR Bin-1001

Production Storage Bins

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.



© SAP AG LO530 9-11

SAP AG 1999

Production Order

Transfer

Requirement

Transfer

Order

Materials

Staged

Components

Material Supply

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.



© SAP AG LO530 9-12

SAP AG 1999

TRANSFERORDER

Mat: 4711

600 lbs

From: 00101-01-01

To: 100

01/01

TRANSFERREQUIREMENT

Mat: 4711

900 lbs

To: 100 01/01

01/01

4711 / 300 lbs

-

You can only decrease

the quantity for pickparts.

When you create a TO,

the available quantity is

calculated and the TO

quantity is optionally

decreased by the same

amount.

Examples:

- minimum use- material change

- workstation change

- previous overdelivery

Decreasing the Quantity during TO Creation

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.



© SAP AG LO530 9-13

SAP AG 1999

Storage

TRANSFERORDER

Material: 4711 600 lbs

From: 001 01-01-01

To: 811 01/01

4711 / 300 lbs

4711 / 300 lbs

WP 1

01/01

Supply to Production Storage Bins

A transfer order is created based upon the transfer requirement.

The transfer order:

determines the source bin based upon the strategy used to select the needed material

is the actual instruction for the physical stock transfer

moves the quantities in the system

determines whether the quantity will be decreased (optional).

After the TO is confirmed, the material becomes available at the destination bin.



© SAP AG LO530 9-14

SAP AG 1999

03/0101/01

4711 / 300 klgs

4711 / 300 lbs

05/01

PSA1PSA2 PSA3

WS 3 WS 4

WS 5

WS 1 WS 2

WS 6

Usage posting

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.



© SAP AG LO530 9-15

SAP AG 1999

System Definition

Warehouse

Management

Customizing

Define a Production

Storage Type

Create the ProductionSupply Area

Activate the PP Switch

Define the Control

Cycle Records

Create the Production

Storage Bins

Assign Movement Type to

the Production Storage Type

Define a Movement Type

Customize the Production

Profile (Optionally)

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.



© SAP AG LO530 9-16

SAP AG 1999

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.

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:

Early enough to carry out the physical supply using the WM system on time

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.



© SAP AG LO530 9-17

SAP AG 1999

Standard Reports

List of Control Cycles

Analysis of Production

Orders

WM-PP Evaluation Report

(Storage Bin Selection)

Material Stock at

Production Storage Bin

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.



© SAP AG LO530 9-18

SAP AG 1999

Production Integration: Topic Objectives


KANBAN within WM


KANBAN processing in WM




© SAP AG LO530 9-19

SAP AG 1999

R

E

C

E

I

VI

N

G

902

003 002 001

200005

916

WAREHOUSE STRUCTURE

007

Storage Location 0001

KANBAN 2

KANBAN 1

Warehouse 100 - Storage Location 0100 Shipping

Scenario for KANBAN Replenishment

901 150

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.



© SAP AG LO530 9-20

SAP AG 1999

KANBAN-Card

SupplyDemand

Material

fullfull

emptyempty

f u l l f u l l

f u l l f u l l

KANBAN

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.



© SAP AG LO530 9-21

SAP AG 1999

fullfull

EmptyEmpty

Set KANBAN toSet KANBAN to empty andempty and

createcreate a Transfer a Transfer RequirementRequirement in WMin WM

Confirmation of

the TO sets

KANBAN to full

and posts stock

transfer to

KANBAN

storage location

Automatic or manual creation

of a Transfer

Order in WM

Warehouse

KANBAN Replenishment Strategy with WM

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 transferrequirement (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 transferautomatically when the TO is confirmed or you can process it manually by selecting PostChange

Inventory management Stor.loc. to stor.loc. from the WM menu bar.



© SAP AG LO530 9-22

SAP AG 1999

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

Setup of KANBAN Replenishment

To activate KANBAN in WM, you need to take the following into consideration in the KANBAN

control cycle:

KANBAN replenishment must be defined using its own KANBAN storage location that must be

different from the WM storage location.

Change system parameters in customizing:

You define the strategy for the KANBAN replenishment under Production KANBAN

Replenishment strategies 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.

You need to specify this replenishment strategy which is specifically defined for KANBAN

replenishment.

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..

Set up the appropriate replenishment movement type for KANBAN in WM (standard is movement

type 350).

Setup the storage location control for manual posting chnages or for automatic processing.



© SAP AG LO530 9-23

SAP AG 1999

Production Integration: Summary


KANBAN within WM


KANBAN processing in WM

Describe the replenishment strategy for WM

Staging


processing WM Staging




© SAP AG LO530 9-25

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 acombination of production, planning and warehouse personnel. As you

work through the exercise, think about which personnel in your company

might perform each task.



© SAP AG LO530 9-26

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 MasterData.

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 controlcycle record for this flywheel.


No. of Kanbans

Kanban Quantity

Warehouse Number

Storage Type

Storage BinStaging Indicator

Why can’t you use a dynamic bin for a crate part? ________________

_________________________________________________________



© SAP AG LO530 9-27

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: _______________________



© SAP AG LO530 9-28

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-##



© SAP AG LO530 9-29

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-##



© SAP AG LO530 9-31

Solutions 1


Topic: Setting up Production

PART ONE:

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.



© SAP AG LO530 9-32


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 aredelivered 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.)



© SAP AG LO530 9-33

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 forstaging 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 finaldestination because that is what you have identified in the Material Master

at the storage type level.





© SAP AG LO530 9-35

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 coversthe 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? ________________



© SAP AG LO530 9-36

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.



© SAP AG LO530 9-39

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.

1-1-3 SAP Reference IMG Logistics Execution Warehouse Management 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



© SAP AG LO530 9-40

Create the material a second time with the following data:


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



© SAP AG LO530 9-41

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.



© SAP AG LO530 9-42

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)



© SAP AG LO530 10-2

SAP AG 1999

Conclusion


Structure 333

Master Data 444

Integration with





Posting Changes 88


222

Goods Issue 777

Logistics Execution

Overview

Course Overview 111

131313

Delivery Processing: Course Overview Diagram

D e l i v e r y P r o c e s s i n g



© SAP AG LO530 10-3

SAP AG 1999

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.

Delivery Processing: Business Scenario



© SAP AG LO530 10-6

SAP AG 1999

Picking Process

Transfer

Order

916 0080004092

4711 50

Dely 80004092

Mat. 4711 50

Post

Goods Issue Relieves

Inventory

Updates

Delivery

4711 50

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.



© SAP AG LO530 10-7

SAP AG 1999

Transfer Order for Outbound Delivery

Transfer Order

Source – Dest

Source – Dest

Source – Dest

Source – Dest

Source – Dest

Source – Dest

Delivery

Item 1

Item 2

Item 3

GI- Area

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.



© SAP AG LO530 10-8

SAP AG 1999

Creation of Groups in the Delivery Monitor

Printout without

Group

Collective Processing:

Creation of TOs for

the group

Release/

Printout with group

Interface LSR

IDoc

Release Group #23

Picking list

Group #23

Selection and

assignment of groups

Del 4711

Del 4720

Del 4725

Del 4813

Group #23

Transfer

auftrag

zur LF 4711

Transfer

auftrag

zur LF 4725

Transfer

order

zur LF 4720

Transfer

order

for Del 4813

Delivery Monitor:Creation of single TOs

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.



© SAP AG LO530 10-9

SAP AG 1999

Two-Step Picking

Picking TO for a

Group

1st Step: Picking

Item 1 Mat.01 10 Ea

Srce 001

Dest 200

Srce 001

Dest 200

Item 2 Mat.02 10 Ea

2nd step: Allocation

Srce: 200

Dest: 916

TO #252

Mat.01 3 Ea

Mat.02 1 Ea

Srce: 200

Dest: 916

TO #251

Mat.01 4 Ea

Mat.02 5 Ea

Srce: 200

Dest: 916

TO #250

Mat.01 3 Ea

Mat.02 4 Ea

Del 4813

Mat.01 3 Ea

Mat.02 4 Ea

Del 4814

Mat.01 4 Ea

Mat.02 5 Ea

Del 4815

Mat.01 3 EaMat.02 1 Ea

Group

Stock removal based

on materials

Delivery based

distribution

Two-Step Picking is an extension of multiple processing. For Two-Step picking, the picking process

is divided into 2 steps:

First Step:

- The entire quantity of needed materials is picked to fill requests (for example, several

deliveries) for the materials.

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.



© SAP AG LO530 10-10

SAP AG 1999

DELIVERY Transfer

Order

Notfulfilled

Fulfilled

Transfer

Order Transfer

Order

Transfer

Order

Split

Criteria?

Transfer Order Splitting

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:

Storage type and picking area

Target time (header information) , volume and weight as value limits

User exit (either for sorting or for splitting)



© SAP AG LO530 10-13

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 groupnumber 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 _________________



© SAP AG LO530 10-14

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-##.


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.

Material StorType Available For Putaway Pick QuantityT-MS-##



© SAP AG LO530 10-15

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.

1-1-2 Logistics Logistics Execution Outbound Process Goods Issue forOutbound 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 .




© SAP AG LO530 10-18

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 eachdelivery, 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-##



© SAP AG LO530 10-19

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.



© SAP AG LO530 10-20

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.




© SAP AG LO530 11-2

SAP AG 1999

Conclusion


Structure 333

Master Data 444

Integration with





Posting Changes 88


222

Goods Issue 777

Logistics Execution

Overview

Course Overview 111

131313

Replenishment: Course Overview Diagram

R e p l e n i s h m e n t



© SAP AG LO530 11-3

SAP AG 1999

In this area of the warehouse, you store materials

in fixed bins to be picked for delivery from thisstorage 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.

Replenishment: Business Scenario

SAP AG 1999



© SAP AG LO530 11-4

SAP AG 1999

Replenishment: Objectives

Execute two methods of fixed bin

replenishment

Explain different possibilities to

execute replenishment within the

warehouse




© SAP AG LO530 11-5

SAP AG 1999

Replenishment for Fixed Storage Bins

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 themovement 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.



© SAP AG LO530 11-6

SAP AG 1999

Transfer

requirement

Transfer

order

R L L N A C H 1

min. storage bin quantity 3 ctn

replenishment quantity 8 ctn

Replenishment for Fixed Bins: Batch Report

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 recommendedin 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.



© SAP AG LO530 11-7

SAP AG 1999

Firma

Rechnung

Firma

Rechnung

Planned Replenishment

Firma

Rechnung

Firma

RechnungFirma

Rechnung

Firma

RechnungFirma

Rechnung

Firma

Rechnung

Firma

Rechnung

Firma

RechnungFirma

Rechnung

Firma

Rechnung

RLLNACH2

Planned Replenishment

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.



© SAP AG LO530 11-8

SAP AG 1999

Mail

Transfer

requirement

Transfer

order

Manual

BatchBatch

PP SystemIM

Document

RLAUTA10

Creating TOs Automatically for TRs

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 transferrequirement 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



© SAP AG LO530 11-9

SAP AG 1999

Transfer

requirement

Transfer

order

R L L N

A C H 4

min. storage bin quantity 6 ctn

replenishment quantity 8 ctn

Replenishing Random Bin Management: TR/TO

O r :

i m m e d i a

t e

T O

c r e a t i o

n

6C 6C

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.



© SAP AG LO530 11-10

SAP AG 1999

Replenishment: Summary


Execute two methods of fixed bin replenishment

Explain different possibilities to execute

replenishment within the warehouse



© SAP AG LO530 11-11

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 tofixed 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-##.


T-BW20-##

1-1-4 Create the TR by running Replenishment for Fixed Bins (Acc to BinSituation).

1-1-5 Convert your TR to a TO and confirm the TO.



© SAP AG LO530 11-13

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




© SAP AG LO530 11-14


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




© SAP AG LO530 11-15

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? _______



© SAP AG LO530 11-17

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 1000and 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.



© SAP AG LO530 12-2

SAP AG 1999

Physical Inventory: Course Overview Diagram

Conclusion


Structure 333

Master Data 444

Integration with





Posting Changes 88


222

Goods Issue 777

Logistics Execution

Overview

Course Overview 111

131313

P h y s i c a l I n v e n t o r y



© SAP AG LO530 12-3

SAP AG 1999

You must decide which inventory method your

company will use. You must configure and test atleast one inventory method.

Physical Inventory: Business Scenario



© SAP AG LO530 12-4

SAP AG 1999

Physical Inventory: Objectives

Execute the basic physical inventory process

in the warehouse

Customize settings in the warehouse to allow

different inventory methods




© SAP AG LO530 12-5

SAP AG 1999

Inventory Methods

Annual inventoryAnnual inventory

Continuous inventoryContinuous inventory

Cycle countingCycle counting

Inventory Based on First PlacementInventory Based on First Placement

Zero Stock CheckZero Stock Check

Inventory sampling procedureInventory sampling procedure

Inventory MethodsInventory Methods

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. Allof 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.



© SAP AG LO530 12-6

SAP AG 1999

Inventory Process

Inventory planningCreate system inventory record

Inventory planningInventory planningCreate system inventory recordCreate system inventory record

Storage binsblocked

Storage binsStorage binsblockedblocked

Print outinventory list

Print outPrint outinventory listinventory list

Count, weigh,measure, estimate

CountCount,, weigh,weigh,measuremeasure,, estimateestimate

Take physicalinventory count

Take physicalTake physicalinventory countinventory count

Clear differences in the InventoryManagement system

Clear differencesClear differences inin the Inventorythe InventoryManagementManagement systemsystem

Activate systeminventory recordActivate systemActivate systeminventory recordinventory record

Clear differences in the WarehouseManagement system

Clear differencesClear differences inin the Warehousethe WarehouseManagementManagement systemsystem

1 2 31 2 3

Start differences /control list

StartStart differencesdifferences / / control listcontrol list

Storage binsunblocked

Storage binsStorage binsunblockedunblocked

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.



© SAP AG LO530 12-7

SAP AG 1999

Table controls

replace step loops

Table controls

replace step loops

Enjoy in Warehouse Management Inventory

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 thatwith 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.



© SAP AG LO530 12-8

SAP AG 1999

Inventory Document

Only the selected

bins are blocked

xxx

Continuous Inventory

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:

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.

Inventory can be conducted during slow times in the warehouse, for example, during summer

vacation.

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.

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..



© SAP AG LO530 12-9

SAP AG 1999

Cycle Counting

Goal: Count Material

Based on Cycle

Count Indicator

Goal:Goal: Count MaterialCount Material

Based on CycleBased on Cycle

Count Indicator Count Indicator

A Items 12 times / year

B Items 6 times / year

C Items 1 time / year

A ItemsA Items 12 12 timestimes / / year year

B ItemsB Items 6 6 timestimes / / year year

C ItemsC Items 1 1 timetime / / year year

PrintPrintPrint

CountCountCount

Record resultsRecord resultsRecord results

RecountRecountRecount

Continue normal WM inventory process:

Clear differencesClear differencesClear differences

Assign CC Indicator:Assign CC Indicator:

RMCBIN00RMCBIN00

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 asthe 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.



© SAP AG LO530 12-10

SAP AG 1999

Cycle Counting Time Interval

FebruaryFebruary AprilAprilMarchMarch MayMay

Mat. 4711

Mat. 4712

Starting the selection report for a time intervalStarting the selection report for a time interval

Mat. 4713

10

1 2 3

- 24 March

Mat. 4712

Mat. 4711 Mat. 4711Mat. 4711

Selection displays:

Stor.Bin Mat Comments

01-07-03 4711 to be counted

01-07-04 4711 to be counted

01-06-09 4713 overdue (was not

counted in February)

Selection displaysSelection displays::

Stor Stor .Bin.Bin Mat Comments Mat Comments

01-07-03 4711 to01-07-03 4711 to be countedbe counted

01-07-04 4711 to01-07-04 4711 to be countedbe counted

01-06-09 471301-06-09 4713 overdue overdue (was not(was not

counted counted inin FebruaryFebruary))

Material 4711 12 times / year

Material 4712 6 times / year

Material 4713 1 time / year

MaterialMaterial 47114711 12 12 timestimes / / year year

Material 4712 6Material 4712 6 timestimes / / year year

Material 4713 1Material 4713 1 timetime / / year year

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.



© SAP AG LO530 12-11

SAP AG 1999

Inventory Based on First Stock Placement

CreateCreate TOTO

Print TO

with inventory

data

Inventory dataBook quantity =

Counted quantityClear differences

in Inventory

Management

Difference in

interim storage

area

no1 2 3

1 2 3

ConfirmConfirm TOTO

Inventory alreadyInventory alreadytaken attaken at

destinationdestination bin?bin?

Storage bin

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.



© SAP AG LO530 12-12

SAP AG 1999

Create transfer order

Print TO

Note:

Check bin

Bin

empty?

Physical stock removal

Enter counted qty

Zero stock check message returned

BinBin occupiedoccupied

Correct qty in source bin(diff. calculated

automatically)

Post difference in


ConfirmConfirm TOTO

Verify zero stock checkVerify zero stock check

Zero stock check

confirmed

BinBin emptyempty

Zero Stock Check

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.



© SAP AG LO530 12-13

SAP AG 1999

Zero stock check returned

confirmed

BinBin emptyempty

Correct qty

in source bin

(diff. calculated automatically)

Inventory dataInventory data

BinBin

QuantQuant

ConfirmConfirm TOTO

Enter counted quantity

BinBin occupiedoccupied

Inventory dataInventory data

BinBin

Zero stock check confirmed

or requested manually

Zero Stock Check as Inventory

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).



© SAP AG LO530 12-14

SAP AG 1999

Random selectionRandom selection

Physical inventoryPhysical inventory

documentsdocuments

UpdatingUpdating

Strata

. . . . .

Complete-count

area

Actual value of

selected stock

management units

ExtrapolationExtrapolationEstimated actual

value of all

stock units

Book value

of all

stock units

Comparison

Inventory1000 2317

L-Bin AL-Bin B

Stock mgmt

unit to be counted

Estimation

Inventory Sampling Procedure

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 intoseveral 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).



© SAP AG LO530 12-15

SAP AG 1999

Physical Inventory: Summary


Execute the basic physical inventory process in

the warehouse

Customize settings in the warehouse to allow

different inventory methods



© SAP AG LO530 12-17

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 ofyour 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.



© SAP AG LO530 12-18

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 theDifferences 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



© SAP AG LO530 12-19

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:

CC Indicator Materials Phys Inventories Counts

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-##).



© SAP AG LO530 12-20

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 theinventory balance has now been updated and your 999 storage type is clear.




© SAP AG LO530 12-21

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.

1-2-3 Logistics Logistics Execution Internal Whse Processes Physical

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.



© SAP AG LO530 12-22




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.

1-2-9 Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Clear Differences

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##. 1-3-3 Logistics Logistics Execution Internal Whse Processes Physical


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. 1-3-5 Logistics Logistics Execution Internal Whse Processes Physical





Document Count Results Recount.



© SAP AG LO530 12-23




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.



© SAP AG LO530 13-1

SAP AG 1999

Conclusion

Conclusion


Structure 333

Master Data 444

Integration with





Posting Changes 88


222

Goods Issue 777

Logistics ExecutionOverview

Course Overview 111

131313



© SAP AG LO530 13-2

SAP AG 1999


Perform basic WM functions such as putaway and

retrieval of stocks and process posting changes

Customize the integration with Inventory

Management, Production Planning and Delivery

Processing

Discuss customizing options and settings

within the Warehouse Management

system

Course Objectives



© SAP AG LO530 13-3

SAP AG 1999

Recommended Follow-up Courses

LO531 Additional Topics in Warehouse Management

LO610 Shipping

LO611 Transportation



© SAP AG LO530 13-4

SAP AG 1999

Recommended Follow-up Activities

Go through the exercises using IDES data

or your own data

Read on-line documentation

Read IMG documentation

Read release notes



© SAP AG LO530 13-5

Exercises


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 GoodsReceipt 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



© SAP AG LO530 13-6

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 ________________________



© SAP AG LO530 13-7

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



© SAP AG LO530 13-9

Solutions


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



© SAP AG LO530 13-10

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



© SAP AG LO530 13-11

2-1-7 Logistics → Logistics Execution → Master Data → Warehouse → 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.

2-2-3 Logistics Logistics Execution Inbound Process Goods Receipt for 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.



© SAP AG LO530 13-12


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)



© SAP AG LO530 Appendix-1

SAP AG 1999

This section contains supplementary material to be

used as reference

This material is not part of the standard course

Therefore, the instructor might not cover this

during the course presentation

Contents:

Appendix




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 Master DataWarehouse Storage Bin Change Single

Bin

Display Storage Bin Logistics Logistics Execution Master Data

Warehouse Storage 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 SupplyArea

Logistics Logistics Execution Master DataWarehouse 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

Order Logistics Logistics Execution Inbound

Process Goods Receipt for Purchase Order,

Order, Other Transactions Post Goods Receipt

Enter Goods Receipt for Purchase Order

Goods Receipt for Production

Order Logistics Logistics Execution Inbound



Enter Goods Receipt for Production Order

Goods Receipt without

Reference Logistics Logistics Execution Inbound



Enter Goods Receipt for Other Activities

Display Material Document Logistics Logistics Execution Inbound



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

Perspective) Logistics Logistics Execution Internal Whse

Processes Bins and Stock Display Total

Stock per Material (Inventory Management)

Display Stock Balances (WM



Stock per Material (Warehouse Management)

SD ProcessingDelivery Monitor Logistics Logistics Execution Outbound

Process Goods Issue for Outbound Delivery

Outbound Delivery Lists and Logs Outbound

Delivery Monitor

WM Processing

Display Transfer

Requirement Logistics Logistics Execution Internal Whse

Processes TransRqmt Display …

Create TO following Goods

Receipt process

Logistics Logistics Execution Inbound

Process Goods Receipt for Purchase Order,Order, Other Transactions Putaway Create

Transfer Order …

Confirm TO Logistics Logistics Execution Inbound


Order, Other Transactions Putaway Confirm

Transfer Order Single Item In one step …

Display Stock Balances (WM



Stock per Material (Warehouse Management)

Display Posting Change Notice

Logistics Logistics Execution Internal Whse Processes PostChange 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 Master Data

Warehouse Storage Bin Change

Selectively

Create Physical Inventory

Document

Logistics Logistics Execution 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 Warehouse Management

Clear Differences (IM) Logistics Logistics Execution Physical

Inventory In Warehouse Management Clear

Differences Inventory Management




SAP AG 1999

RECEIVING

S H I P P I N G

902 003 002

0xx

001

100 901

005

916

PRODUCTION LINES -->

001 High-rack storage

002 Shelf storage

003 Open storage005 Fixed bin / Picking

0xx Temperature Controlled

901 GR area from production

902 GR area from external source916 Shipping area deliveries

100 Production supply areas

S T O R A G E T Y P E S

WAREHOUSE STRUCTURE

100

Warehouse Structure




Case Study

R/3 System

LO530


Case Study




Unit: Case Study

This case study has been created to challenge you and reinforce

the concepts of the warehouse management application andcustomizing that you learned this week. The task is to customize awarehouse from a presented business scenario, then test theconfiguration using standard business processes.

This week, you have been introduced to basic warehousemanagement processes within the R/3 system. At the beginning ofthe week, we looked at the application and focused on processingtransactions in a warehouse that was already customized for thispurpose. Later in the week, we made changes to that existingwarehouse configuration and tested some transactions. Now, youwill create a new warehouse using an existing warehouse structure

as a model, and test your configuration using standard businesstransactions.

Your company has decided to build a new warehouse because theexisting warehouse has exceeded its capacity. This newwarehouse will be used mainly for storage and shipping of finishedpumps. Your team is responsible for creating and customizing thisnew 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 toset up the structure and master data for this new warehouse. Adescription of the business processes and a rough layout of thenew warehouse are included. Read through this informationcarefully 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-## 1510

PCPC

IPE1

T-BW-## 15

10

PC

PC

IP

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. Youwill 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 thatmovement 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

Type

Transfer Requirement Transfer Order Confirmation Printing (TO)

101 Create TR Manual Manual Single item

102

122

201

311

312

501

561

601




Warehouse Drawing

New Warehouse

PalletStorage

Fixed Bin

Goods




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-

quant

NR-TO NR-TR NR-

PstChg

NR-

RefNo

NR-SU VA

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 storagetypes 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 activeStorage 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 forthat 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 storagetypes for shelf and pallet storage.

Storage

Type

Storage

Unit

Type

Shelf (002) E1 IP

Pallet

(007)

E1 IP

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

Unit Type

Storage

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.

Type

Storage

Section

Maximum

Weight

Bin

Type

Bin Structure

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

(LEQuantity)

U

N

SUT Stock

Removal

Stock

Placement

Addn to

Stock

T-MS-##

T-BW-##




T-BW20-##




Fixed Storage Area (Storage Type level data)

Material Storage

Bin

Minimum

quantity

Maximum

quantity

Control

quantity

Replenishment

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

(IP)

Europallets

(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 yourfixed 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 IM WM to A.

Step 2: Look at the Mail column and select the appropriate entry. (To verify that

customizing, look under Activities Transfers 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 Maintain Structure Definition

Materials management Maintain storage location. Select New Entries.

Copy a Warehouse: Enterprise StructureMaintain Structure Definition Materials

management Define, copy, delete, check warehouse number. Select the ‘Copy

Warehouse’ icon.

Change Warehouse Description: Enterprise Structure Maintain Structure Definition

Materials management

Define, copy, delete, check warehouse number. Select‘New Entries’.

Assign Warehouse to Storage Location and Plant: Enterprise Structure Maintain Structure

Assignment Materials management Assign warehouse number to plant /

storage location. Select New Entries.

Define / Change Control Parameters for warehouse: Materials Management Warehouse

Management Master Data Define control parameters for warehouse number.

Define / Change Number Ranges: Materials Management Warehouse Management

Master Data Define number ranges Assignment.

Define / Change Storage Types: Materials Management Warehouse Management

Master Data Define storage type.

Define / Change Storage Sections: Materials Management Warehouse Management

Master Data Define Storage Sections.

Storage Type Indicators / Search Sequence: Materials Management Warehouse

Management Strategies Activate storage type search.

Storage Section Indicators / Search Sequence: Materials Management Warehouse

Management Strategies Activate storage section search.




Storage Unit Type Search: Materials Management Warehouse Management

Strategies Activate storage bin type search.

Define Special Movement Indicator: Materials Management Warehouse Management

Master Data Material Define Special Movement Indicator.

Master Data:

Create Storage Bins Manually: Logistics Materials management Warehouse

management Master data Storage bin Create Manually.

Create Storage Bins Automatically: Logistics Materials management Warehouse

management Master data Storage bin Create Automatically.

Create Storage Bins for Interim Storage: Logistics Materials management Warehouse

management Master data Storage bin Create For interim storage.

Create Material Master: Logistics Materials management Warehouse management

Master data Material Create.

Change Material Master: Logistics Materials management Warehouse management

Master data Material Change.

IM Processing:

Storage Location to Storage Location: Logistics Materials management Inventory

management Goods movement Transfer posting.

Display Stock Balances from IM: Logistics Materials management Inventory

management Environment Stock Stock overview.

SD Processing:

Create a delivery note: Logistics Sales and distribution Shipping Delivery Create.

LO530 en 46C Warehouse Management

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Transcript of LO530 en 46C Warehouse Management