LO530 Warehouse Management

LO530 Warehouse Management
LO530
Release 676 07.11.2006

LO530 Warehouse Management.................................................................................................................................1
Copyright.................................................................................................................................................................2
Logistics Execution.............................................................................................................................................3
Course Prerequisites............................................................................................................................................4
Target Group.......................................................................................................................................................5
Course Overview.....................................................................................................................................................1
Course Goals.......................................................................................................................................................2
Course Objectives...............................................................................................................................................3
Course Content....................................................................................................................................................4
Course Overview Diagram..................................................................................................................................5
Main Business Scenario......................................................................................................................................6
Logistics Execution Overview................................................................................................................................1
Logistics Execution Overview: Overview Diagram...........................................................................................2
Logistics Execution Overview: Business Scenario.............................................................................................3
Logistics Execution Overview: Topic Objectives...............................................................................................4
Integration Process..............................................................................................................................................5
Overview.............................................................................................................................................................6
Warehouse Management.....................................................................................................................................7
WM Integration with Other Systems..................................................................................................................8
Logistics Execution Overview: Topic Objectives...............................................................................................9
Goods Receipt Process......................................................................................................................................10
Process for Stock Placement.............................................................................................................................11
Planning a Movement........................................................................................................................................12
Transfer Requirement Information....................................................................................................................13
Steps for Stock Placement.................................................................................................................................14
Transfer Order Information...............................................................................................................................15
Screen Sequence in Transfer Order Creation....................................................................................................16
Palletization Notices..........................................................................................................................................17
Transfer Order Confirmation............................................................................................................................18
Logistics Execution Overview: Topic Objectives.............................................................................................19
The Goods Issue Process...................................................................................................................................20
Steps for Stock Removal...................................................................................................................................21
Transfer Requirement Information....................................................................................................................22
Steps for Stock Removal...................................................................................................................................23
Transfer Order for Stock Removal....................................................................................................................24
Data Entry Help for Stock Removal.................................................................................................................25
Printing a Transfer Order..................................................................................................................................26
Change Destination Bin....................................................................................................................................27
Cancel Transfer Order.......................................................................................................................................28
Logistics Execution Overview: Unit Summary................................................................................................29
Logistics Execution Overview - Exercises 1.....................................................................................................30
Logistics Execution Overview - Solutions 1.....................................................................................................35

Logistics Execution Overview - Exercises 2.....................................................................................................37
Logistics Execution Overview - Solutions 2.....................................................................................................40
Warehouse Management Structure.........................................................................................................................1
Warehouse Management Structure: Course Overview Diagram........................................................................2
WM Structure: Business Scenario.......................................................................................................................3
Warehouse Management Structure: Objectives..................................................................................................4
Example of a Physical Warehouse Structure......................................................................................................5
Warehouse Structure in the System....................................................................................................................6
Storage Bins and Quants.....................................................................................................................................7
WM-System Hierarchy.......................................................................................................................................8
Examples of a (Physical) Warehouse Structure..................................................................................................9
The Warehouse Structure in the IM System.....................................................................................................10
Possible Structure with the WM System (1-1)..................................................................................................11
Possible Structure with the WM System (1-2)..................................................................................................12
Possible Structure with the WM System (2).....................................................................................................13
Possible Structure with the WM System (3).....................................................................................................14
Organization Structures in the Warehouse........................................................................................................15
Warehouse Level Data......................................................................................................................................16
Storage Type Level Data...................................................................................................................................17
Copying a Warehouse.......................................................................................................................................18
Warehouse Management Structure: Unit Summary..........................................................................................19
Warehouse Management Structure - Exercises 1..............................................................................................20
Warehouse Management Structure - Solutions 1..............................................................................................22
Master Data.............................................................................................................................................................1
Master Data: Course Overview Diagram............................................................................................................2
Master Data: Business Scenario..........................................................................................................................3
Master Data: Topic Objectives............................................................................................................................4
Master Data.........................................................................................................................................................5
Storage Bin Data.................................................................................................................................................6
Creating Storage Bins Automatically..................................................................................................................7
Define Sort Sequence for Placement / Removal.................................................................................................8
Master Data: Topic Objectives............................................................................................................................9
Material Data.....................................................................................................................................................10
Views in a Material Master Record...................................................................................................................11
Screens in a Material Master.............................................................................................................................12
Palletization Data..............................................................................................................................................13
Units of Measure...............................................................................................................................................14
Master Data: Unit Summary.............................................................................................................................15
Master Data - Exercises 1..................................................................................................................................16
Master Data - Solutions 1..................................................................................................................................18
Master Data - Exercises 2..................................................................................................................................21
Master Data - Solutions 2..................................................................................................................................23

Integration with Inventory Management.................................................................................................................1
Integration with Inventory Management: Course Overview Diagram................................................................2
Integration with IM: Business Scenario..............................................................................................................3
Integration with Inventory Management: Objectives..........................................................................................4
Inventory Management/WM Interface................................................................................................................5
Interim Storage Area Search...............................................................................................................................6
Interim Storage: Bin Types.................................................................................................................................7
Transfer Order Storage Type Search - Placement...............................................................................................8
Transfer Order Storage Type Search - Removal.................................................................................................9
TO Processing Overview..................................................................................................................................10
Automatic Creation of Transfer Orders.............................................................................................................11
Integration with IM: Unit Summary..................................................................................................................12
Integration with Inventory Management - Exercises........................................................................................13
Integration with Inventory Management - Solutions........................................................................................15
Goods Receipt.........................................................................................................................................................1
Goods Receipt: Course Overview Diagram........................................................................................................2
Goods Receipt: Business Scenario......................................................................................................................3
Goods Receipt: Objectives..................................................................................................................................4
Capacity Check...................................................................................................................................................5
Capacity Usage Based on the Material...............................................................................................................6
Capacity Check based on the SUT......................................................................................................................7
Capacity Check based on material and SUT (1).................................................................................................8
Capacity Check based on material and SUT (2).................................................................................................9
Handling Differences........................................................................................................................................10
Difference Indicator..........................................................................................................................................11
2 Step Confirmation..........................................................................................................................................12
Pre-allocated Stock Check................................................................................................................................13
Storage Type Search Control............................................................................................................................14
Storage Section Search Control.........................................................................................................................15
Variable Control by Storage Unit Type............................................................................................................16
Special Movement Indicator.............................................................................................................................17
Stock Placement Control...................................................................................................................................18
Stock Placement Strategy..................................................................................................................................19
Manual Bin........................................................................................................................................................20
Fixed Bin (F).....................................................................................................................................................21
Near Fixed Bin (K)............................................................................................................................................22
Addition to Existing Stock (I)...........................................................................................................................23
Pallet Strategy (P)..............................................................................................................................................24
Storage Bin Section Definition.........................................................................................................................25
Open Storage (C)...............................................................................................................................................26
Next Empty Bin (L)...........................................................................................................................................27
Bulk Storage (B)................................................................................................................................................28

Transfer Order and Multiple Printing................................................................................................................29
Setting Up Printing............................................................................................................................................30
Goods Receipt: Unit Summary.........................................................................................................................31
Goods Receipt - Exercises.................................................................................................................................32
Goods Receipt - Solutions.................................................................................................................................34
Goods Issue.............................................................................................................................................................1
Goods Issue: Course Overview Diagram............................................................................................................2
Goods Issue: Business Scenario..........................................................................................................................3
Goods Issue: Objectives......................................................................................................................................4
Full Stock Removal Options...............................................................................................................................5
Stock Removal Control.......................................................................................................................................6
Stock Removal Strategy......................................................................................................................................7
FIFO (F)..............................................................................................................................................................8
LIFO (L)..............................................................................................................................................................9
Partial Quantities First (A)................................................................................................................................10
Large/Small Quantities (M)..............................................................................................................................11
Cascadable through Quantity Rounding - M.....................................................................................................12
Picking Strategy for Fixed Bins (P)..................................................................................................................13
Shelf Life Expiration Date (H)..........................................................................................................................14
Stringent FIFO (***).........................................................................................................................................15
Goods Issue: Summary......................................................................................................................................16
Goods Issue - Exercises.....................................................................................................................................17
Goods Issue - Solutions.....................................................................................................................................19
Posting Changes......................................................................................................................................................1
Posting Changes: Course Overview Diagram.....................................................................................................2
Posting Changes: Business Scenario...................................................................................................................3
Posting Changes: Objectives...............................................................................................................................4
Stock Transfer / Transfer Posting........................................................................................................................5
Bin to Bin Transfer..............................................................................................................................................6
Create TO from Stock List..................................................................................................................................7
Material to Material / Change in Batch...............................................................................................................8
Posting Change: Material Number......................................................................................................................9
Stock Transfer/Transfer Posting (II).................................................................................................................10
Stock Transfer / Posting Change: Plant to Plant...............................................................................................11
Posting Changes During Stock Placement........................................................................................................12
Transfer Posting: Initiated in WM....................................................................................................................13
Customizing Posting Changes WM/IM............................................................................................................14
Posting Changes: Summary..............................................................................................................................15
Posting Changes - Exercises 1..........................................................................................................................16
Posting Changes - Solutions 1...........................................................................................................................18

Production Integration.............................................................................................................................................1
Production Integration: Course Overview Diagram............................................................................................2
Production Integration: Business Scenario.........................................................................................................3
Production Integration: Topic Objectives...........................................................................................................4
Scenario for WM Staging....................................................................................................................................5
Production Order Process Review.......................................................................................................................6
Production Supply Area......................................................................................................................................7
Control Cycle......................................................................................................................................................8
Material Staging Indicators.................................................................................................................................9
Production Storage Bins....................................................................................................................................10
Material Supply.................................................................................................................................................11
Decreasing the Quantity during TO Creation...................................................................................................12
Supply to Production Storage Bins...................................................................................................................13
Usage posting....................................................................................................................................................14
System Definition..............................................................................................................................................15
Distinctive Features for Repetitive Orders........................................................................................................16
Standard Reports...............................................................................................................................................17
Production Integration: Topic Objectives.........................................................................................................18
Scenario for KANBAN Replenishment............................................................................................................19
KANBAN..........................................................................................................................................................20
KANBAN Replenishment Strategy with WM..................................................................................................21
Setup of KANBAN Replenishment..................................................................................................................22
Production Integration: Summary.....................................................................................................................23
Production Integration - Exercises 1.................................................................................................................24
Production Integration - Solutions 1.................................................................................................................29
Production Integration - Exercises 2.................................................................................................................32
Production Integration - Solutions 2.................................................................................................................35
Delivery Processing.................................................................................................................................................1
Delivery Processing: Course Overview Diagram...............................................................................................2
Delivery Processing: Business Scenario.............................................................................................................3
Delivery Processing: Objectives.........................................................................................................................4
Overview of Shipping Process and WM.............................................................................................................5
Picking Process...................................................................................................................................................6
Transfer Order for Outbound Delivery...............................................................................................................7
Creation of Groups in the Delivery Monitor.......................................................................................................8
Two-Step Picking................................................................................................................................................9
Transfer Order Splitting....................................................................................................................................10
Creation of TOs: WMTA..................................................................................................................................11
Delivery Processing: Summary.........................................................................................................................12
Delivery Processing - Exercises 1.....................................................................................................................13

Delivery Processing - Solutions 1.....................................................................................................................15
Delivery Processing - Exercises 2.....................................................................................................................17
Delivery Processing - Solutions 2.....................................................................................................................19
Replenishment.........................................................................................................................................................1
Replenishment: Course Overview Diagram........................................................................................................2
Replenishment: Business Scenario......................................................................................................................3
Replenishment: Objectives..................................................................................................................................4
Replenishment for Fixed Storage Bins................................................................................................................5
Replenishment for Fixed Bins: Batch Report.....................................................................................................6
Planned Replenishment.......................................................................................................................................7
Creating TOs Automatically for TRs..................................................................................................................8
Replenishing Random Bin Management: TR/TO...............................................................................................9
Replenishment: Summary.................................................................................................................................10
Replenishment - Exercises 1.............................................................................................................................11
Replenishment - Solutions 1.............................................................................................................................13
Replenishment - Exercises 2.............................................................................................................................15
Replenishment - Solutions 2.............................................................................................................................16
Physical Inventory...................................................................................................................................................1
Physical Inventory: Course Overview Diagram..................................................................................................2
Physical Inventory: Business Scenario...............................................................................................................3
Physical Inventory: Objectives............................................................................................................................4
Inventory Methods..............................................................................................................................................5
Inventory Process................................................................................................................................................6
Enjoy in Warehouse Management Inventory......................................................................................................7
Continuous Inventory..........................................................................................................................................8
Cycle Counting....................................................................................................................................................9
Cycle Counting Time Interval...........................................................................................................................10
Inventory Based on First Stock Placement.......................................................................................................11
Zero Stock Check..............................................................................................................................................12
Zero Stock Check as Inventory.........................................................................................................................13
Inventory Sampling Procedure..........................................................................................................................14
Physical Inventory: Summary...........................................................................................................................15
Physical Inventory Processes with WM - Exercises.........................................................................................16
Physical Inventory Processes with WM - Solutions.........................................................................................20
Conclusion...............................................................................................................................................................1
Course Objectives...............................................................................................................................................2
Recommended Follow-up Courses.....................................................................................................................3
Recommended Follow-up Activities...................................................................................................................4
Warehouse Management Structure - Exercises 2................................................................................................5
Warehouse Management Structure - Solutions 2................................................................................................8
Appendix.................................................................................................................................................................1
Frequently-used Menu Paths...............................................................................................................................2

Warehouse Structure...........................................................................................................................................5
Case Study...........................................................................................................................................................6

0
© SAP AG 1999
LO530 Warehouse Management
LO530LO530
Warehouse ManagementWarehouse Management
© SAP AG
 R/3 System
 Release 4.6C
 September 2000
 Material number 50041468

0.2
© SAP AG 2006
Copyright 2006 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in
any form or for any purpose without the express permission of
SAP AG. The information contained herein may be changed
without prior notice.
Copyright
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Informix are trademarks or registered trademarks of IBM Corporation in the United States and/or other
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implemented by Netscape.
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 SAP, R/3, mySAP, mySAP.com, xApps, xApp, and other SAP products and services mentioned herein as well
as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other
countries all over the world. All other product and service names mentioned are the trademarks of their
respective companies. Data contained in this document serves informational purposes only. National product
specifications may vary.
 These materials are subject to change without notice. These materials are provided by SAP AG and
its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of
any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only
warranties for SAP Group products and services are those that are set forth in the express warranty statements
accompanying such products and services, if any. Nothing herein should be construed as constituting an
additional warranty.

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© SAP AG 1999
Logistics Execution
Processes in
Logistics Execution
LO140 3 days
Level 2 Level 3
Delivery Processes
LO610 2 days
Transportation
LO611 3 days
Additional Topics in
Warehouse
Management
LO531 3 days
Warehouse
Management
LO530 3 days
LO650 3 days
Cross - Functional
Customizing in SD

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© SAP AG 1999
Course Prerequisites
 LO140 Processes in Logistics Execution

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© 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 intended
to be additional examples that are dealt with during the course. Participants can also use them to
deepen their knowledge after the course.

1
© SAP AG 1999
Course Overview
 Course Goals
 Course Objectives
 Course Content
 Course Overview Diagram
 Main Business Scenario
Contents:
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© 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
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© SAP AG 1999
Course Objectives
 Perform basic WM functions such asputaway 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:
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© 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 Execution
Overview
Unit 3 Warehouse Management
Structure
Unit 4 Master Data
Unit 5 Integration with
Inventory Management
Unit 6 Goods Receipt
Preface
Appendices
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© 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
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Main Business Scenario
 The model company is a producer and distributor
of pumps. To optimize the logistics process, the
company will implement Logistics Execution
utilizing Warehouse Management functionality.
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 Logistics Execution Process Review
Contents:
Logistics Execution Overview
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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
Logistics ExecutionOverview
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 The project team must be oriented to the Logistics
Execution Process.
Logistics Execution Overview: Business Scenario
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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:
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© SAP AG 1999
Integration Process
IMIM
Purchasing (MM)
RequirementRequirement
determinationdetermination
Goods
Receipt
InventoryInventory
Require-
ment
Goods
Issue
Accounts
Debitor
Creditor
Payment
Payment
Presales
Activities
Order
Processing
Shipping Invoicing
SourceSource
determinationdetermination
POPO ProcessingProcessing
InvoiceInvoice
verificationverification
LogisticsExecution(LE)
Require-
ment
 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.
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Overview
GoodsGoods
IssueIssue
Internal and ExternalInternal and External
AccountingAccounting
MRP
Invoice VerificationInvoice Verification
Goods ReceiptGoods Receipt
PostingPosting
ChangeChange
Invoice
Entry
Internal Supply
Production
External Supply
Procurement
Presales
Activities
Sales 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 material
flow 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.
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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.
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© SAP AG 1999
WM Integration with Other Systems
© SAP AG1999
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
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 Create a Goods Receipt in Inventory
Management and follow through placement
and confirmation in the Warehouse
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© 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.
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Process for Stock Placement
differences
Confirmation/
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.
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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).
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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
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Steps for Stock Placement
Goods receipt
posting TO
from 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.
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© 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
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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 transfer
requirement. It is possible to select one or several items in the list and process them either in the
foreground or in the background.
 On the preparation screen, the quantity of a specific transfer requirement item is distributed to
different storage bins (where appropriate with a palletization recommendation by the system).
 The detail screen of a transfer order item contains a source item, a destination item, and sometimes
also a return item.
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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.
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© 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.
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2.19
© SAP AG 1999
 Create a Goods Issue in Inventory Management
and follow through the removal process in the
warehouse
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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.
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© SAP AG 1999
Steps for Stock Removal
differences
Confirmation/
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.
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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
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2.23
© SAP AG 1999
Steps for Stock Removal
Goods issue
posting
TO 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 transfer
order is created, the system determines the source storage bin.
 The goods are physically removed from the warehouse with the help of the transfer order documents.
 As soon as the physical stock removal is completed, the user confirms the transfer order. Here it is
possible to enter differences.
 Depending upon the set-up, it is possible for the system to create transfer orders automatically in the
background.
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© 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.
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© 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 the
quantity is to be removed.
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© 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.
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© SAP AG 1999
Change DestinationBin
 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.
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© 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.
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© 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
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2.30Logistics Execution Overview - Exercises 1
Unit: Logistics Execution Overview
Topic: Goods Receipt
At the conclusion of this exercise, you will be able to:
• Create a Goods Receipt in Inventory Management and follow
through placement and confirmation in WM.
In your company, when goods are received from an external source, the
material comes into a receiving area and is processed in the SAP System
with the appropriate Inventory Management transaction. This material is
then placed into a Goods Receipt area and identified with the Purchase
Order number.
It is the responsibility of the warehouse then to pick up the material from
the Goods Receipt area and put it away. Once the material is put away, the
warehouse will confirm that the material has been stored as requested.
It is your responsibility to ensure that this process is efficient and to
troubleshoot any issues that may arise. In order to test the efficiency of
this process, you must understand all of the steps within the receiving
process.
In this exercise, you will walk through the complete cycle of a Goods
Receipt, from the time materials are received on the dock until those goods
are placed in the appropriate storage type in the warehouse. At several
points along the way, you will need to verify the stock situation.
The ## indicates your group number that has been assigned by your
instructor. Wherever you see ##, please insert your group number. Please
be sure to work only within your warehouse.
(C) SAP AG LO530 30

1-1 Materials have arrived at the receiving dock with reference to a Purchase order. You
know the material number but not the Purchase Order Number.
Your Warehouse Number is 1## and your Storage Location is 01##.
The ‘##’ is your group number that has been assigned by your
instructor. Wherever you see ‘##’, please insert your GROUP
NUMBER. Be careful to create and change data only within your
warehouse number.
1-1-1 Check the stock situation of the material T-BW03-## before you begin.
Plant Sloc StorType Available For Putaway Pick Quantity
1000 01## 001
1-1-2 Add this task to your Favorites. Change the text to Warehouse Management
Stock Overview.
1-1-3 Now access the function for entering a goods receipt with reference to a
purchase order.
1-1-4 Find the Purchase Order for material T-BW03-##. Enter the goods receipt for
100 pieces.
Save/Post the document. Material Document ___________________
1-1-5 Display the Stock Overview again for material T-BW03-##
1000 01## 001
1000 01## 902
TOTAL
1-1-6 From the Stock Overview, display the quant data and determine the following
information:
Quant Number _______ Goods Receipt Date ____________________
(C) SAP AG LO530 31

1-2 Convert the Transfer Requirement to a Transfer Order.
1-2-1 Display all TRs for your warehouse. (Add this task to your Favorites. Change
the text to Display Transfer Requirements by Storage Type.)
1-2-2 Is there a TR for the Purchase Order you received in the prior section? _____.
Display the TR and make note of the following information:
The Purchase Order number is displayed in the Requirement field.
Transfer Requirement number ________________________________
Requirement tracking number ____ __________________________
Source Storage type & bin number ____ __________________________
Material Document number ________________________________
Hint: The material document number is stored in the header
information.
1-2-3 Now convert the Transfer Requirement (TR) into a Transfer Order (TO) in
the foreground.
1-2-4 What palletization data is proposed? ______________________________
1-2-5 How does the system default the palletization data? __________________
____________________________________________________________
1-2-6 What destination storage bins are proposed? ________________________
1-2-7 Before posting, determine what stock placement strategy was used to
determine the destination of the final storage bin.
Environment → Storage Bin Search log
Putaway Strategy _____ _____________________
(C) SAP AG LO530 32

Save the TO. TO Number _________________
(C) SAP AG LO530 33

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? _______
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2.31Logistics Execution Overview - Solutions 1
Topic: Goods Receipt
1-1
1-1-1 Logistics → Logistics Execution → Internal Whse Processes →Bins and
Stocks → Display → Total Stock per Material (Warehouse Management)
Field Name or Data Type Values
Warehouse Number 1##
Material Number T-BW03-##
Plant 1000
Select MM Stock Figures to see Inventory Management total stock.
1-1-2 Favorites →Add. Select Favorites → Change to modify the text.
1-1-3 Logistics → Logistics Execution → Inbound Process →Goods Receipt for
Purchase Order, Order, Other → Enter Goods Receipt for Purchase
Order
1-1-4 Select the match code icon in the first blank space next to Purchase Order to
search for the Purchase Order Number. Select M:Purchasing Documents for
Material.
Material Number T-BW03-##
Plant 1000
Select the Purchase Order and choose enter. Select Item OK to receive the
entire lot of 100 pieces. Enter Storage Location 01##. Save/Post the receipt.
1-1-5 Favorites →Warehouse Management Stock Overview.
1-1-6 From the Stock Overview, select the Plant Summary line for Storage Type 902
with a single click on the line. Then select Bin Stock. Position your cursor on
the Quantity and select it to display the quant.
1-2
(C) SAP AG LO530 35

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.
1-3-1 Favorites → Warehouse Management Stock Overview.
The materials are now available in the destination storage bin.
(C) SAP AG LO530 36

2.32Logistics Execution Overview - Exercises 2
Topic: Goods Issue
• Create a Goods Issue in Inventory Management and follow through
the removal process in the warehouse.
A Goods Issue to a Cost Center is often referred to as a ‘Miscellaneous
Issue’. Typically, these types of issues are done in the warehouse when
other departments are requesting materials outside of regular production or
maintenance; for example, materials that are stocked in the warehouse, but
not consumed by the production process. These materials are to be issued
from the warehouse and expensed to a department’s cost center.
In this exercise, your favorite Engineer has requested 5 Shafts, material T-
BW02-## for some testing. These shafts will be expensed to the cost
center of the Engineering Department (Cost Center 1000). In your
company, the process for this type of transaction is that the Goods Issue
(GI) is posted first in IM, and the appropriate documentation is generated
in the warehouse for material removal. The movement type for GI to a
Cost Center is configured such that a transfer requirement is created in the
warehouse as notification to move inventory from the warehouse to a GI
area. You then create a Transfer Order with reference to the Transfer
Requirement. The TO that is generated is printed in the warehouse and the
materials are pulled from stock.
Remember that a material is not available for subsequent functions within
the warehouse until the confirmation process is complete.
2-1 An Engineer, Mr. KC Jones, has requested 5 shafts, material number T-BW02-## to be
issued to his cost center 1000.
2-1-1 Before you start, note the stock balances for T-BW02-##.
1000 01## 001
2-1-2 Post a goods issue transaction issuing the 5 shafts (T-BW02-##) to Mr. Jones’
cost center.
2-1-3 Note the stock balances for T-BW02-##.
(C) SAP AG LO530 37

1000 01## 001
1000 01## 911
TOTAL
2-2 Display all TRs for material T-BW02-##. (Add this transaction to your favorites and
change the description to Display TR by material.) Select the one created by the GI
transaction and determine the following:
Transfer Requirement number ______________________________
Requirement tracking number ____ ________________________
Destination Storage type & bin number _______ _________________
Material Document number ________________________________
Material Document number is contained in the Header data.
2-3 Create a TO in the foreground with reference to your TR.
2-3-1 The Storage Type Search displays the storage type sequence the system will use
to search for the stock to remove. What are they?
__________ __________
Where does this sequence come from? _____________________________
_____________________________________________________________
2-3-2 Let the system select the quant for removal.
What removal strategy did the system use to select the quant for removal?
________________________________________
Environment →Storage Bin Search Log
(C) SAP AG LO530 38

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
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2.33Logistics Execution Overview - Solutions 2
Topic: Goods Issue
2-1
2-1-1 Favorites →Warehouse Management Stock Overview
2-1-2 Logistics → Logistics Execution → Outbound Process →Goods Issue for
Other Transaction → Enter Goods Issue
Movement Type 201
Plant 1000
Storage Location 01##
Cost Center 1000
Material T-BW02-##
Quantity 5
2-1-3 Favorites →Warehouse Management Stock Overview
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
Storage Location 01##
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.
(C) SAP AG LO530 40

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.
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3
© SAP AG 1999
Warehouse Management Structure
 Warehouse Management Structure Elements
© SAP AG 2000
(C) SAP AG LO530 1

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
WarehouseManagementStructure
Warehouse Management Structure:
Course Overview Diagram
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3.3
© SAP AG 1999
 The model company is a producer and distributor
of pumps. To optimize the logistics process, this
company will implement Logistics Execution
utilizing Warehouse Management functionality.
WM Structure: Business Scenario
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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:
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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.
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3.6
© SAP AG 1999
High rack storage
Storage type 001
Fixed Bin area
Storage type 005
Storage type 004
Storage type
902
GR area
Storage type
902
GR area
Storage type
910
GI area
Storage type
910
GI area
Good receipt
Goods issue
Bulk storage
Warehouse Structure in the System
 Possible representation of the physical structure in the SAP Warehouse Management system:
 The entire warehouse structure is managed under a warehouse number
 The various storage areas are defined as storage types that are differentiated according to their
organizational and technical characteristics.
 Examples:
GR area
picking area with fixed storage bins
high rack storage area with random picking
bulk storage area with rows of the same material
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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.
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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.
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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.
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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.
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3.11
© SAP AG 1999
Possible Structure withthe 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.
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3.12
© SAP AG 1999
Possible Structure with theWM System (1-2)
Storage
types
001001 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 location
0003).
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3.13
© SAP AG 1999
Possible Structure with theWM System (2)
Storage
types
001001 002002
003003 004004
Storage
locations
00870087 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.
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3.14
© SAP AG 1999
Possible Structure with theWM System (3)
Storage
types
004004
916916
Storage
locations
00900090 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.
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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 the
goods are temporarily stored after unloading/before loading. In Customizing, these areas are
assigned to the corresponding doors.
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3.16
© SAP AG 1999
Warehouse Level Data
Define Weights/
Units of Measure
Define
Blocking
Logic
Notifications &
Messages
Assign
Number
Ranges
Assign
Region
Code
Control Data
Define
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:
Shipping
Production
Quality Management
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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
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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.
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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
You are now able to:
(C) SAP AG LO530 19

3.20Warehouse Management Structure - Exercises 1
Unit: Warehouse Management Structure
Topic: Organizational Elements in WM
• Change the name of your warehouse
• Verify your warehouse to plant / storage location assignment
• Create a new high rack storage type
• Create a new goods receipt interim storage type
• Create storage sections for these new storage types
Your company is implementing the R/3 Warehouse Management system. It
is your responsibility to maintain the customizing. You need to ensure the
flow of the warehouse data matches the business processes of your
warehouse.
In this exercise, you are setting up a high rack storage area and a receiving
area. You will review and change some administrative information about
the warehouse, create two new storage types and create the supporting data
for these new storage types.
1-1 Review and change some administrative information about your current warehouse.
Remember that a warehouse is first defined as part of the enterprise structure. The
warehouse is activated when it is assigned to the plant/storage location.
1-1-1 In the Enterprise structure, change your warehouse (1##) description to a
more appropriate description for your business.
1-1-2 Still within the Enterprise structure, check your warehouse assignment.
Your warehouse is assigned to which Plant / Storage Location?
Plant ______________ Storage Location ____________________
1-2 Once your warehouse has been defined, there are controls which you can set in WM
Customizing to have your warehouse perform within your required parameters. In
your warehouse, what values are set for the following parameters:
Default Unit of Weight: _______
SU management active: (on/off) _______________
1-3 Create a new storage type, ’015 – High Rack Storage Group##’ by copying the
current high rack storage type ‘001’.
(C) SAP AG LO530 20

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.
(C) SAP AG LO530 21

3.21Warehouse Management Structure - Solutions 1
Unit: Warehouse Management Structure
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.
(C) SAP AG LO530 22

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
(C) SAP AG LO530 23

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: CourseOverview Diagram
Master Data
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4.3
© SAP AG 1999
 Your company is a major producer of pumps.
Engineering has designed a new flywheel for the
chrome steel pump. Over the next units, this pump
will be integrated into the warehouse processes
and production area for sale of the final pump. You
must create the master data to support this effort.
Master Data: Business Scenario
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4.4
© SAP AG 1999
Master Data: Topic Objectives
 Create storage bin data
 Create storage bin data using a template
(C) SAP AG LO530 4

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.
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4.6
© SAP AG 1999
Storage Bin Data
Storage bin dataWarehouse no.: 001
Storage type 001
Storage 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
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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
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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
Row
R = Row (Aisle)
S = Stack
L = 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 bin
coordinate itself.
 You normally define the sort variable before you create the storage bins.
 Without the sort variable, the system fills the storage type row by row. For example, the system fills
the first row completely first, then the second row, then the third. This can result in a one-sided load
of the warehouse.
 With the sort variable, the system fills the storage bins on a stack by stack basis for each row. When
the system selects bins for stock received in the warehouse, it fills the lowest level in each stack first,
then the second level in each stack, then the third level, and so on.
(C) SAP AG LO530 8

4.10
© SAP AG 1999
General Data
Material number
Description
Weight
Base unit of measure
Order unit
Hazardous material number
...
Plant-Specific Data
Requirements planning data
Issue unit of measure
Batch check requirement
...
Warehouse No.-Specific Data
WM unit of measure
Storage type indicator
Storage section indicator
Storage unit quantity
...
Storage Type-Specific Data
Fixed bin
Control quantity
Replenishment quantity
Max./min. per storage bin
Rounding 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
(C) SAP AG LO530 10

LO530 Warehouse Management

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LO530 Warehouse Management