Basic Functions of Warehouse Management

Warehouse Management in SAP ECC contains the following five basic functions:
. Inventory Management exact to storage bin level
. Mapping and control of all goods movements
. Monitoring of the processing of these goods movements
. Connection to mobile data entry as part of the integrated rad io frequency solution
. Connection to specialist external systems using an interface

Main Features of Warehouse Management

While Inventory Management, as part of Materials Management, can only provide information on the
total quantity of material in stock, Warehouse Management enables a precise specification of the exact
location of a particular quantity of material and informs you whether this quantity is currently in a storage bin or
on the move.
These movements of storage bin stocks are generally triggered by goods receipts and goods issues, or
stock transfers. Warehouse Management uses a special document, the transfer order to map and control
warehouse movement you create a transfer order, the system checks all of the relevant settings at master data or
Customizing level and uses this data to determine suitable storage bins to put away or pick stock. You can,
however, specify bins and bin stock manually.
Even with a completely configured system, there can be errors from time to time, or someone might
forget to process open documents, so Warehouse Management is equipped with monitoring tools.

Organizational Units
To use the functions of Warehouse Management, you have to create some specific organizational units. This
organizational units are found in Customizing.

The Warehouse Number and its Substructures

The warehouse number is the organizational unit at the highest level in Warehouse Management in
SAP ECC. It is used to represent the warehouse complex. Each warehouse number has a substructure
that maps the spatial relationships in the warehouse complex in detail.
Substructure of the warehouse

Each warehouse number contains a number of subordinate organizational units (depending on the settings in
Customizing): Storage types, storage sections,and picking areas.
The storage type is used to map a storage space that forms a separate unit within a warehouse number, spatially
and/or organizationally. A standard system already contains a certain set of pre-configured storage types, f or
example: high rack, fixed bin, and bulk storage types. You can modify these templates as required, or add
new storage types. Many of the Customizing settings in Warehouse Management are related to the storage type.
The interim storage areas play a special role and can generally be recognized at first glance in the standard
system by their key (which starts with a 9). These storage areas form a sort of bridge to Inventory Management.
Goods receipt area and goods issue area are typical examples of interim storage areas.
Interim storage areas

Every goods movement that affects both Warehouse Management and Inventory Management is processed using
an interim storage area. An everyday example is a goods receipt for a purchase order, which is posted first in
Inventory Management.
The goods are then brought into the warehouse via an interim storage area, the goods receipt area.
A master record is assigned to each storage type in Customizing. This is where you make the settings to control
goods receipt and goods issue processes for putaway and removal from storage.
storage sections are created within storage types to further divide the storage space. There can be various
criteria for creating various storage sections. Often, the material to be stored in the storage type plays an
important role. It makes sense to store a fast-moving item in easily accessible storage sections, for example, or to
store goods that are easily spoiled in a chilled area. The system only takes storage sections into account during

putaway.
Even if there is no need to divide the area any further within the storage type, you must create at least one
storage section for each storage type.
The picking area is on the same hierarchical level as the storage section and can be used to subdivide the area of
a storage type to control the stock removal process.
Unlike the storage section, the picking area is an optional organizational unit.
Storage bins are master data and are created within a storage section.

Creating a New Warehouse Number

You can use pre-configured warehouse number as a template for creation of New warehouse number.
1. To create a new warehouse number by copying from a template, choose
Enterprise Structure- Definition Logistics Execution Define, copy, delete, check warehouse number and
select the entry Copy/delete/check warehouse number.

Creating New Storage Types and New Storage

Sections

A newly created warehouse number contains all of the storage types transferred from the template, including the
Customizing settings. You can modify these, or add more storage types. If you want to add new storage types,
you can copy
Choose Logistics Execution Warehouse Management Master Data Define Storage Type.
a) Select storage type 001 in your warehouse number 1## and choose Copy As... .
b) In the Storage Type field, overwrite the key of the template (001) with the key of your new storage type (015)
and change the storage type description. Confirm your entries with Enter and save to create the new storage
type.

Details of High rack Storage

STORAGE TYPE - FIELDS AND THEIRS USES

Putaway strategy

Procedure during stock placement whereby the system automatically searches within a storage type
for a suitable storage bin for the material to be placed into storage.

Stock plcmt. Requires confirmation: for Putaway Required

Means that if there is a stock placement into this storage type, the transfer order item must be
confirmed
Dst bin ch. During confirm : This indicator controls whether the system permits changes to the

destination storage bin during confirmation of the transfer order

Mixed storage :

An entry in this field means that several quants can be stored in a storage bin in this storage type.

Addn to Stock
:Addition to existing stock allowed

Means that a quant of a particular material and a particular batch can be placed into storage in a
storage bin with the same material and the same batch as an addition to existing stock

Retain over deliveries : Retain overdeliveries

If a storage type requires complete stock removal, the following options are available for dealing
with the remaining quantities, if such quantities arise.
1. The storage type into which the goods are being placed can retain the overdelivery.
2. The storage type from which the goods are being removed can allow the remaining quantity
to be returned to the storage bin from which the goods were removed.
3. In the movement type, you can have a return storage type (or return storage bin) defined.
4. You can define a return storage type for each storage type.
5. The storage type into which the goods are being placed must keep the overdelivery.
Mail control

If on the basis of immediate transfer order generation transfer orders are automatically created in the
background.

Capacity Check Method

This indicator determines the capacity check that will be carried out for the storage bins in this storage
type

Active capacity check

Using this switch you can set the system so that an active capacity check is executed when goods are
placed into stock.
SUT check active: Activate storage unit type check for stock placement
Means that the storage unit type needs to be specified for stock placements.
Block upon stock plcmt: Set blocking indicator at time of placement into storage
Means that in the case of a stock placement the quant and possibly also the storage bin are to be
blocked.

Assigned ID point stor.type:

Identification point (storage type) of the current storage type.
All goods movements that do not have a specific storage bin in this storage type as their destination are
first directed to the identification point.
Here the goods are identified and a transfer order is generated for the actual transfer of the goods into
the storage type concerned.

User exit: Stock placement strategy via user exit

It is possible for you to set up your own putaway strategy using a user exit

Stock Removal Strategy

Procedure during stock placement whereby the system automatically searches within a storage type for
the material

stock removal requires confirmation: confirmation of stock removal required

Means that if there is a stock removal from this storage type, the transfer order item must be
confirmed.
Allow negative stocks: negative stock quantity allowed
If you set this indicator, the system allows you to post negative quants to the corresponding storage
type

Full stock removal reqrt. Act.complete stock removal required

Means that during stock removal the entire quant is to be removed from storage, regardless of the
quantity required.
Return stock to same storage bin :Upon transfer return quantity to same storage bin
Excute zero stock check :Indicator: Execute Zero Stock Check

This indicator specifies that if a storage bin becomes empty after a stock removal, a zero stock check
should be carried out.
Round off qty. Round off requested quantity for stock removal
Propose post change at storage bin : post and leave materials in same storage bin

Means that no transfer is to take place for a posting change. Instead, the material can be re-labelled at
the bin.
Block upon stock removal : Set blocking indicator at time of stock removal

Means that in the case of a stock removal the quant and possibly also the storage bin are to be
blocked.

Assigned pick point storage typ.: Pick point for storage type

Pick point (storage type) of the current storage type.

Return storage type : Storage type into which any remaining quantity of the material to be transferred

will be placed.

Choose Logistics Execution Warehouse Management Master Data Define Storage Sections and then the
New Entries button.

Define Number Ranges

In this section, you define the number ranges for the objects which have automatic number
assignment in the Warehouse Management system. These are:

Transfer requirement

Transfer order

Quant

Posting change notice

Group

The maintenance of the number range objects for the area "Inventory" is described in the chapter
"Maintain Inventory Number Ranges".
If you are using Storage Unit Management, you must take the following objects into account:

Number range for storage units

The number ranges for the storage units cover all the warehouse numbers.

Type of number assignment for storage units

NR Quant.

Number range for assignment of quant numbers

This number identifies a number range to be used for the assignment of sequential numbers for
quants.
NR TO
Number range for the assignment of transfer order numbers

This number identifies a number range to be used for the assignment of sequential numbers for
transfer orders.
NR TR
Number range for assignment of transfer requirement numbers

This number identifies a number range to be used for the assignment of sequential numbers for
transfer requirements.
NR spt Chg.
Number range for the assignment of posting change numbers

This number identifies a number range to be used for the assignment of sequential numbers for posting
change notices.

NR group
Number range for assignment of WM reference numbers

Definition
This number identifies a number range to be used for the assignment of sequential numbers for WM
reference numbers. Reference numbers are used to create or print a group of transfer orders at one time.
NR SU
Number range for the assignment of storage unit numbers

This number identifies a number range to be used for the assignment of sequential numbers for storage
units.
NA :
Type of number as
signment for storage units

Creating Storage Bins Automatically

1. From the application menu, choose Logistics Logistics Execution Master Data Warehouse

Storage Bin Create Automatically

Template : Format of bin coordinate for automatic creation

Specifies how the storage bins are defined for automatic generation.

N stands for a numeric character between zero and nine

A stands for an alphabetic letter; this may only be one digit

C stands for a character common to all the bins

Example
Curr.No. Template Struct.
Start.Val End Val Increment
---------- --------- -------- --------- ------- --------1
ANNCCCCCC ABC
A11
B22 111
2
ANNCCCCCC ABB
A11
B22 111
3
ANNCCCCCC ABB
A11
B22 101
--------------------------------------------------------Curr.no. 1 creates the following bins: A11, A12, A21, A22, B11, B12
B21, B22
Curr.no. 2 creates the following bins: A11, A22, B11, B22

Curr.no. 3 creates the following bins: A11, A12, A13, A14 ...... A22
B11, B12, B13, B14 ...... B22
Structures : Structure of storage bins for automatic creation

Specifies how the increment for automatic generation of storage bins is to be interpreted. Different
letters mean that the digits are increased by the increment independently of one another. Same letters
mean that the increment is a multi-digit one.
Example
Curr.No. Template Struct. Start.Val End Val Increment
---------- --------- -------- --------- ------- --------1
ANNCCCCCC ABC
A11
B22 111
2
ANNCCCCCC ABB
A11
B22 111
3
ANNCCCCCC ABB
A11
B22 101
--------------------------------------------------------Curr.no. 1 creates the following bins: A11, A12, A21, A22, B11, B12
B21, B22
Curr.no. 2 creates the following bins: A11, A22, B11, B22
Curr.no. 3 creates the following bins: A11, A12, A13, A14 ...... A22
B11, B12, B13, B14 ...... B22
Start Value : Start value of storage bins for automatic creation

Determines the start value for the automatic generation of storage bins. The system adds the defined
increment to this start value to generate the storage bins
End val :End value of storage bins for automatic creation

Determines the end value during the generation of storage bins. As soon as the system reaches this
value (by continuously adding the increment specified), the generation of storage bins is completed.
Increment : Increment for bins for automatic creation

Determines during automatic generation of storage bins how large the addition is that is to be added on
to the storage bin coordinate figures in order to create the "name" of the next storage bin.

Creating Storage Bins

To create a large number of similar storage bins, you can use the transaction for .automatically. creating storage
bin structure (transaction code LS10).
The transaction is also in Customizing under Logistics Execution Warehouse Management Master Data
Storage Bins Define Storage Bin Structure.

Goods receipts against Initial entry :

When we tried to take items against initial entry with 501 MOV the above message showing the storoge bins are
not existing.
We need to create interim Storage (LX20)

1. From the application menu, choose Logistics Logistics Execution Master Data Warehouse Storage
Bin Create For Interim Storage
or
TC : LX20

For the creation of bins click on Create Bins and enter ware house sss and click excute .Upon excuting you get
the screen

After creation of Storage Bins, the Initial goods entry is made with 501 MOV and the GR has been done
successfully.

TR Number is : 1

Creation of Transfer Order (LT04) w.r.t TR

SU : Storage Unit

Number of Storage Units to be Placed Into Storage

Specifies how many storage units are to be created.
Definition: Storage Unit

A logical grouping of one or several amounts of material that can be managed in a warehouse as a unit.
Each storage unit has a storage unit (SU) number.

After saving the document the fowling screen has come to enter Storage Unit Type
The storage Unit bin Types are as follows

Storage Type Unit options

After selecting the Storage Bin Type E1 the message

has come.
The error has come due to non availability storage bin for the storage type.We have to create storage bin for the
storage type
From the application menu, choose Logistics Logistics Execution Master Data Warehouse Storage
Bin Create Automatically
or
TC: LS10

From the above select first line then click details

From this screen go to Environment and click create bins. Upon clicking bins will be created automatically

From this screen click the button create Online button.After clicking you will get a message as follows

Stocks per material (LS24):

Creation of Transfer Order after Creation of bins

(LT04)

click putaway foreground and enter Storage Unit Type E1

Stocks per material (LS24) after creation of Transfer Order:

Confirm Transfer Order (LT12)

click confirm internally

Stocks per material (LS24) after confirmation