LO530 Warehouse Management LO530

R/3 System Release 46D 11.04.2001

LO530 Warehouse Management............................................................................................................................ 0-1 Copyright ........................................................................................................................................................... 0-2 Logistics Execution........................................................................................................................................ 0-4 Course Prerequisites....................................................................................................................................... 0-5 Target Group .................................................................................................................................................. 0-6 Course Overview................................................................................................................................................ 1-1 Course Goals .................................................................................................................................................. 1-2 Course Objectives .......................................................................................................................................... 1-3 Course Content............................................................................................................................................... 1-4 Course Overview Diagram............................................................................................................................. 1-5 Main Business Scenario ................................................................................................................................. 1-6 Logistics Execution Overview ........................................................................................................................... 2-1 Logistics Execution Overview: Overview Diagram....................................................................................... 2-2 Logistics Execution Overview: Business Scenario ........................................................................................ 2-3 Logistics Execution Overview: Topic Objectives.......................................................................................... 2-4 Integration Process ......................................................................................................................................... 2-5 Overview........................................................................................................................................................ 2-6 Warehouse Management................................................................................................................................ 2-7 WM Integration with Other Systems ............................................................................................................. 2-8 Logistics Execution Overview: Topic Objectives.......................................................................................... 2-9 Goods Receipt Process................................................................................................................................. 2-10 Process for Stock Placement ........................................................................................................................ 2-11 Planning a Movement .................................................................................................................................. 2-12 Transfer Requirement Information............................................................................................................... 2-13 Steps for Stock Placement............................................................................................................................ 2-14 Transfer Order Information.......................................................................................................................... 2-15 Screen Sequence in Transfer Order Creation ............................................................................................... 2-16 Palletization Notices .................................................................................................................................... 2-17 Transfer Order Confirmation ....................................................................................................................... 2-18 Logistics Execution Overview: Topic Objectives........................................................................................ 2-19 The Goods Issue Process.............................................................................................................................. 2-20 Steps for Stock Removal.............................................................................................................................. 2-21 Transfer Requirement Information............................................................................................................... 2-22 Steps for Stock Removal.............................................................................................................................. 2-23 Transfer Order for Stock Removal............................................................................................................... 2-24 Data Entry Help for Stock Removal ............................................................................................................ 2-25 Printing a Transfer Order ............................................................................................................................. 2-26 Change Destination Bin ............................................................................................................................... 2-27 Cancel Transfer Order.................................................................................................................................. 2-28 Logistics Execution Overview: Unit Summary............................................................................................ 2-29 Logistics Execution Overview - Exercises 1................................................................................................ 2-30

Logistics Execution Overview - Solutions 1................................................................................................ 2-35 Logistics Execution Overview - Exercises 2................................................................................................ 2-37 Logistics Execution Overview - Solutions 2................................................................................................ 2-40 Warehouse Management Structure .................................................................................................................... 3-1 Warehouse Management Structure: Course Overview Diagram.................................................................... 3-2 WM Structure: Business Scenario.................................................................................................................. 3-3 Warehouse Management Structure: Objectives ............................................................................................. 3-4 Example of a Physical Warehouse Structure ................................................................................................. 3-5 Warehouse Structure in the System ............................................................................................................... 3-6 Storage Bins and Quants ................................................................................................................................ 3-7 WM-System Hierarchy .................................................................................................................................. 3-8 Examples of a (Physical) Warehouse Structure ............................................................................................. 3-9 The Warehouse Structure in the IM System ................................................................................................ 3-10 Possible Structure with the WM System (1-1) ............................................................................................. 3-11 Possible Structure with the WM System (1-2) ............................................................................................. 3-12 Possible Structure with the WM System (2) ................................................................................................ 3-13 Possible Structure with the WM System (3) ................................................................................................ 3-14 Organization Structures in the Warehouse................................................................................................... 3-15 Warehouse Level Data ................................................................................................................................. 3-16 Storage Type Level Data.............................................................................................................................. 3-17 Copying a Warehouse .................................................................................................................................. 3-18 Warehouse Management Structure: Unit Summary..................................................................................... 3-19 Warehouse Management Structure - Exercises 1......................................................................................... 3-20 Warehouse Management Structure - Solutions 1 ......................................................................................... 3-22 Master Data........................................................................................................................................................ 4-1 Master Data: Course Overview Diagram ....................................................................................................... 4-2 Master Data: Business Scenario..................................................................................................................... 4-3 Master Data: Topic Objectives....................................................................................................................... 4-4 Master Data .................................................................................................................................................... 4-5 Storage Bin Data ............................................................................................................................................ 4-6 Creating Storage Bins Automatically............................................................................................................. 4-7 Define Sort Sequence for Placement / Removal ............................................................................................ 4-8 Master Data: Topic Objectives....................................................................................................................... 4-9 Material Data................................................................................................................................................ 4-10 Views in a Material Master Record.............................................................................................................. 4-11 Screens in a Material Master........................................................................................................................ 4-12 Palletization Data ......................................................................................................................................... 4-13 Units of Measure.......................................................................................................................................... 4-14 Master Data: Unit Summary ........................................................................................................................ 4-15 Master Data - Exercises 1 ............................................................................................................................ 4-16 Master Data - Solutions 1............................................................................................................................. 4-18 Master Data - Exercises 2 ............................................................................................................................ 4-21

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

Bulk Storage (B) .......................................................................................................................................... 6-28 Transfer Order and Multiple Printing........................................................................................................... 6-29 Setting Up Printing....................................................................................................................................... 6-30 Goods Receipt: Unit Summary .................................................................................................................... 6-31 Goods Receipt - Exercises ........................................................................................................................... 6-32 Goods Receipt - Solutions............................................................................................................................ 6-34 Goods Issue........................................................................................................................................................ 7-1 Goods Issue: Course Overview Diagram ....................................................................................................... 7-2 Goods Issue: Business Scenario..................................................................................................................... 7-3 Goods Issue: Objectives................................................................................................................................. 7-4 Full Stock Removal Options .......................................................................................................................... 7-5 Stock Removal Control .................................................................................................................................. 7-6 Stock Removal Strategy................................................................................................................................. 7-7 FIFO (F) ......................................................................................................................................................... 7-8 LIFO (L)......................................................................................................................................................... 7-9 Partial Quantities First (A) ........................................................................................................................... 7-10 Large/Small Quantities (M) ......................................................................................................................... 7-11 Cascadable through Quantity Rounding - M................................................................................................ 7-12 Picking Strategy for Fixed Bins (P) ............................................................................................................. 7-13 Shelf Life Expiration Date (H)..................................................................................................................... 7-14 Stringent FIFO (***).................................................................................................................................... 7-15 Goods Issue: Summary ................................................................................................................................ 7-16 Goods Issue - Exercises ............................................................................................................................... 7-17 Goods Issue - Solutions................................................................................................................................ 7-19 Posting Changes................................................................................................................................................. 8-1 Posting Changes: Course Overview Diagram ................................................................................................ 8-2 Posting Changes: Business Scenario.............................................................................................................. 8-3 Posting Changes: Objectives.......................................................................................................................... 8-4 Stock Transfer / Transfer Posting................................................................................................................... 8-5 Bin to Bin Transfer ........................................................................................................................................ 8-6 Create TO from Stock List............................................................................................................................. 8-7 Material to Material / Change in Batch .......................................................................................................... 8-8 Posting Change: Material Number................................................................................................................. 8-9 Stock Transfer/Transfer Posting (II) ............................................................................................................ 8-10 Stock Transfer / Posting Change: Plant to Plant .......................................................................................... 8-11 Posting Changes During Stock Placement ................................................................................................... 8-12 Transfer Posting: Initiated in WM ............................................................................................................... 8-13 Customizing Posting Changes WM/IM ....................................................................................................... 8-14 Posting Changes: Summary ......................................................................................................................... 8-15 Posting Changes - Exercises 1 ..................................................................................................................... 8-16 Posting Changes - Solutions 1...................................................................................................................... 8-18 Posting Changes - Exercises 2 ..................................................................................................................... 8-20

Posting Changes - Solutions 2...................................................................................................................... 8-22 Posting Changes - Exercises 3 ..................................................................................................................... 8-23 Posting Changes - Solutions 3...................................................................................................................... 8-25 Production Integration........................................................................................................................................ 9-1 Production Integration: Course Overview Diagram....................................................................................... 9-2 Production Integration: Business Scenario..................................................................................................... 9-3 Production Integration: Topic Objectives ...................................................................................................... 9-4 Scenario for WM Staging............................................................................................................................... 9-5 Production Order Process Review.................................................................................................................. 9-6 Production Supply Area ................................................................................................................................. 9-7 Control Cycle ................................................................................................................................................. 9-8 Material Staging Indicators ............................................................................................................................ 9-9 Production Storage Bins............................................................................................................................... 9-10 Material Supply............................................................................................................................................ 9-11 Decreasing the Quantity during TO Creation............................................................................................... 9-12 Supply to Production Storage Bins .............................................................................................................. 9-13 Usage posting............................................................................................................................................... 9-14 System Definition ........................................................................................................................................ 9-15 Distinctive Features for Repetitive Orders................................................................................................... 9-16 Standard Reports .......................................................................................................................................... 9-17 Production Integration: Topic Objectives .................................................................................................... 9-18 Scenario for KANBAN Replenishment ....................................................................................................... 9-19 KANBAN .................................................................................................................................................... 9-20 KANBAN Replenishment Strategy with WM ............................................................................................. 9-21 Setup of KANBAN Replenishment ............................................................................................................. 9-22 Production Integration: Summary ................................................................................................................ 9-23 Production Integration - Exercises 1 ............................................................................................................ 9-24 Production Integration - Solutions 1 ............................................................................................................ 9-29 Production Integration - Exercises 2 ............................................................................................................ 9-32 Production Integration - Solutions 2 ............................................................................................................ 9-35 Delivery Processing ......................................................................................................................................... 10-1 Delivery Processing: Course Overview Diagram......................................................................................... 10-2 Delivery Processing: Business Scenario ...................................................................................................... 10-3 Delivery Processing: Objectives .................................................................................................................. 10-4 Overview of Shipping Process and WM ...................................................................................................... 10-5 Picking Process ............................................................................................................................................ 10-6 Transfer Order for Outbound Delivery ........................................................................................................ 10-7 Creation of Groups in the Delivery Monitor ................................................................................................ 10-8 Two-Step Picking......................................................................................................................................... 10-9 Transfer Order Splitting ............................................................................................................................. 10-10 Creation of TOs: WMTA ........................................................................................................................... 10-11 Delivery Processing: Summary.................................................................................................................. 10-12

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

Frequently-used Menu Paths........................................................................................................................ 14-2 Warehouse Structure .................................................................................................................................... 14-5 Case Study ................................................................................................................................................... 14-6

LO530 Warehouse Management

LO530
Warehouse Management
SAP AG 1999

R/3 System Release 4.6C September 2000 Material number 50041468

Copyright

Copyright 2001 SAP AG. All rights reserved. Neither this training manual nor any part thereof may be copied or reproduced in any form or by any means, or translated into another language, without the prior consent of SAP AG. The information contained in this document is subject to change and supplement without prior notice. All rights reserved.

SAP AG 1999

Trademarks: Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, WINDOWS, NT, EXCEL, Word and SQL Server are registered trademarks of Microsoft Corporation. IBM, DB2, OS/2, DB2/6000, Parallel Sysplex, MVS/ESA, RS/6000, AIX, S/390, AS/400, OS/390, and OS/400 are registered trademarks of IBM Corporation. ORACLE is a registered trademark of ORACLE Corporation, California, USA. INFORMIX-OnLine for SAP and Informix Dynamic ServerTM are registered trademarks of Informix Software Incorporated. UNIX, X/Open, OSF/1, and Motif are registered trademarks of The Open Group. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C, World Wide Web Consortium, Laboratory for Computer Science NE43-358, Massachusetts Institute of Technology, 545 Technology Square, Cambridge, MA 02139. JAVA is a registered trademark of Sun Microsystems, Inc. , 901 San Antonio Road, Palo Alto, CA 94303 USA. JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, SAP Logo, mySAP.com, mySAP.com Marketplace, mySAP.com Workplace, mySAP.com Business Scenarios, mySAP.com Application Hosting, WebFlow, R/2, R/3, RIVA, ABAP, SAP Business Workflow, SAP EarlyWatch, SAP ArchiveLink, BAPI, SAPPHIRE, Management Cockpit, SEM, are trademarks or registered trademarks of SAP AG in Germany and in several other countries

all over the world. All other products mentioned are trademarks or registered trademarks of their respective companies. Design: SAP Communications Media

Logistics Execution

Level 2
LO530 Warehouse Management 3 days

Level 3
LO531 3 days Additional Topics in Warehouse Management

LO140 3 days Processes in Logistics Execution

LO610

2 days

Delivery Processes LO611 3 days

3 days LO650 Cross - Functional Customizing in SD

Transportation

SAP AG 1999

Course Prerequisites

LO140 Processes in Logistics Execution

SAP AG 1999

Target Group

Audience:
Project team members responsible for the implementation of Warehouse Management SAP and Partner consultants responsible for customer implementation of Warehouse Management

Duration: 3 days

SAP AG 1999

Notes to the user The training materials are not teach-yourself programs. They complement the course instructor's explanations. Your material includes space for noting down this additional information. There may not be enough time to do all the exercises during the course. The exercises are intended to be additional examples that are dealt with during the course. Participants can also use them to deepen their knowledge after the course.

Course Overview

Contents:
Course Goals Course Objectives Course Content Course Overview Diagram Main Business Scenario

SAP AG 1999

(C) SAP AG

LO530 1-1

Course Goals

This course will prepare you to: Gain an understanding of the basic Warehouse Management functions and the available tools used to configure the SAP Warehouse to your companys requirements.

SAP AG 1999

(C) SAP AG

LO530 1-2

Course Objectives

At the conclusion of this course, you will be able to: Perform basic WM functions such as putaway and retrieval of stocks and process posting changes Customize the integration with Inventory Management, Production Planning and Delivery Processing Discuss customizing options and settings within the Warehouse Management System

SAP AG 1999

(C) SAP AG

LO530 1-3

Course Content

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

(C) SAP AG

LO530 1-4

Course Overview Diagram

Course Overview Logistics Execution Overview Warehouse Management Structure Master Data Integration with Inventory Management Goods Receipt

1 2 3 4 5 6
Conclusion

Goods Issue Posting Changes Production Integration Delivery Processing Replenishment Physical Inventory

7 8 9 10 11 12

13

SAP AG 1999

(C) SAP AG

LO530 1-5

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.

SAP AG 1999

(C) SAP AG

LO530 1-6

Logistics Execution Overview

Contents:
Logistics Execution Process Review

SAP AG 1999

(C) SAP AG

LO530 2-1

Logistics Execution Overview: Overview Diagram

Course Overview
Logi stics Logistics Execution Exec u OverOverviewn view tio Warehouse Management Structure

1 2 3 4 5 6
Conclusion

Goods Issue Posting Changes Production Integration Delivery Processing Replenishment Physical Inventory

7 8 9 10 11 12

Master Data Integration with Inventory Management Goods Receipt

13

SAP AG 1999

(C) SAP AG

LO530 2-2

Logistics Execution Overview: Business Scenario

The project team must be oriented to the Logistics Execution Process.

SAP AG 1999

(C) SAP AG

LO530 2-3

Logistics Execution Overview: Topic Objectives

At the conclusion of this topic, you will be able to: Describe the Logistics Execution Process

SAP AG 1999

(C) SAP AG

LO530 2-4

Integration Process

Presales Activities

Order Processing

Shipping

Invoicing

Payment

Logistics Execution (LE)

Requirement

Goods Issue

Requirement determination
Requirement

IM

Inventory

Accounts

Debitor

Creditor

Source determination

Goods Receipt

PO Processing

Invoice verification

Payment

Purchasing (MM)
SAP AG 1999

In version 4.5, the applications of Warehouse Management, Shipping and Transportation were brought together to form the Logistics Execution system. As part of SAPs Supply Chain Management, these components are combined to build strong links between processes of Production, Procurement and Sales and Distribution.

(C) SAP AG

LO530 2-5

Overview
Sales Order Presales Activities

External Supply Procurement

MRP Internal Supply Production

Invoice Verification

Inventory Management Posting Change Goods Receipt Goods Issue

Invoice Entry

Shipping

Invoicing

Internal and External Accounting

SAP AG 1999

Logistics Execution supports the flow of materials along the supply chain, not only between entities, but also within the warehouse for the entire supply chain management from the supplier through the customer. The Warehouse Management system is embedded in the total SAP system as well as in the material flow of the entire organization. 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.

(C) SAP AG

LO530 2-6

Warehouse Management

Bin Management

Planning and Monitoring

Movements

Radio - Frequency

Warehouse Control

SAP AG 1999

What tasks does the SAP Warehouse Management system accomplish? Management of complex warehouse structures with various types of storage areas (high rack random storage, block storage, fixed bin storage, and so on) within one or several plants down to the storage bin level. Planning and Monitoring with such tools as the Warehouse Activity Monitor, Rough Workload Estimate, Time Performance and the Delivery Monitor. Processing of all stock movements such as goods receipts, goods issues, stock transfers using stock placement and stock removal strategies, also taking the characteristics of the individual materials into account. Direct Radio Frequency support. The control of information transfers between the WM system and automated control systems.

(C) SAP AG

LO530 2-7

WM Integration with Other Systems

Inventory Management

Quality Management

Production Supply

Delivery Processing

Transportation

Human Resources
SAP AG 1999

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

(C) SAP AG

LO530 2-8

Logistics Execution Overview: Topic Objectives

At the conclusion of this topic, you will be able to: Create a Goods Receipt in Inventory Management and follow through placement and confirmation in the Warehouse

SAP AG 1999

(C) SAP AG

LO530 2-9

Goods Receipt Process

GR area

SAP AG 1999

Goods receipt: physical process When goods are received, they are usually transferred first to the goods receipt (GR) area. Stock placement into the warehouse takes place after a suitable storage bin has been determined for the goods. Goods receipt: process within the system Inventory Management (IM) 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.

(C) SAP AG

LO530 2-10

Process for Stock Placement

IM
Goods Receipt

WM
Transfer Requirement QUANT

IM

Transfer Order

Confirmation/ differences

differences

SAP AG 1999

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.

(C) SAP AG

LO530 2-11

Planning a Movement

GR area Transfer requirement

Transfer order

HRS

SAP AG 1999

A Transfer Requirement (TR) is created in order to plan a stock movement. The TR indicates a need to move a specific quantity (quant) of a material into the warehouse (stock placement) or to move a quantity out of the warehouse (stock removal). The TR provides information about anticipated stock movements. The TR is later converted into one or several Transfer Orders (TO).

(C) SAP AG

LO530 2-12

Transfer Requirement Information

Goods Receipt area Transfer requirement What How much Palletization When From where Reason/Origin

Goods Issue area

Storage area
SAP AG 1999

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

(C) SAP AG

LO530 2-13

Steps for Stock Placement

Goods receipt posting TO from TR

TO

Pallet slip

Stock available

Confirm transfer order

SAP AG 1999

When goods are delivered, the goods receipt is entered in the Inventory Management system. On the basis of the goods receipt posting, a transfer requirement and a quant in the GR area are created. To place the goods into storage, a transfer order is created on the basis of the transfer requirement. When the transfer order is created, the system determines the destination storage bin. The transfer order documents are used to physically place the goods into storage. The transfer quantity remains unavailable in the warehouse as long as the stock placement is not confirmed in the system. As soon as the physical stock placement has taken place, you confirm the transfer order and also enter differences, if any. Depending upon the system set-up, it is possible for the system to create transfer orders automatically in the background.

(C) SAP AG

LO530 2-14

Transfer Order Information

Goods Receipt area

HRS

Goods Issue area

SAP AG 1999

The transfer order is an instruction to move materials from a source storage bin to a destination storage bin within the warehouse complex. Transfer orders contain the following information: 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

(C) SAP AG

LO530 2-15

Screen Sequence in Transfer Order Creation

TR

Transfer requirement list

TR items

Overview of TR items

Preparation screen

Details of TO item

SAP AG 1999

The transfer requirement list contains all transfer requirements that respond to the selection criteria entered. On this list, it is possible to select a transfer requirement, process it and post the transfer order in the background. The overview of transfer requirement items contains all the items in the selected transfer requirement. It is possible to select one or several items in the list and process them either in the foreground or in the background. On the preparation screen, the quantity of a specific transfer requirement item is distributed to different storage bins (where appropriate with a palletization recommendation by the system). The detail screen of a transfer order item contains a source item, a destination item, and sometimes also a return item.

(C) SAP AG

LO530 2-16

Palletization Notices
Preparation screen

TR item 1
200 pcs

Transfer order Item 1 Item 2 Item 3 Item 4 50 pcs 50 pcs 50 pcs 50 pcs

Mat. master Pallet S1 50 pcs

SAP AG 1999

The preparation screen is used to divide the transfer requirement quantity among the various pallets (storage bins). Any previously entered palletization data in the transfer requirement is displayed in the preparation screen as default entries. If standard palletization is defined in the material master record, the system proposes distribution of the materials based on the storage unit type (SUT). If several SUTs are defined for the material, the system proposes that any remaining amount be placed on a smaller pallet. You can change the palletization recommendation or carry out the palletization manually. A user exit is also available for this process.

(C) SAP AG

LO530 2-17

Transfer Order Confirmation

TO Header TO Items --Item material src bin

TO item item... 1 2 3
SAP AG 1999

material tmx1 tmx1 tmx2

dest bin 01-01 01-02 01-03

act quantity 50 45 50

diff quantity ... 5

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.

(C) SAP AG

LO530 2-18

Logistics Execution Overview: Topic Objectives

At the conclusion of this topic, you will be able to: Create a Goods Issue in Inventory Management and follow through the removal process in the warehouse

SAP AG 1999

(C) SAP AG

LO530 2-19

The Goods Issue Process

Goods issue area

SAP AG 1999

Goods issue: physical process: When goods are issued, stock removal from the warehouse takes place after the appropriate storage bin has been determined. The goods are usually transferred to the goods issue (GI) area before leaving the warehouse. Goods issue: process within the system Inventory Management (IM) 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.

(C) SAP AG

LO530 2-20

Steps for Stock Removal

IM
Goods Issue

WM
Transfer Requirement negative QUANT

IM

Transfer Order

Confirmation/ differences

differences

SAP AG 1999

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.

(C) SAP AG

LO530 2-21

Transfer Requirement Information

Goods Receipt area Transfer requirement What How much When Where to Why

Goods Issue area

Storage area
SAP AG 1999

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

(C) SAP AG

LO530 2-22

Steps for Stock Removal

Goods issue posting TO for TR

Transfer order

Confirm transfer order

Material available

SAP AG 1999

For the removal of material, the goods issue is posted in the Inventory Management system. On the basis of this goods issue posting a transfer requirement and a negative quant in the GI area are created. To remove the goods, a transfer order is created from the transfer requirement. When the transfer order is created, the system determines the source storage bin. The goods are physically removed from the warehouse with the help of the transfer order documents. As soon as the physical stock removal is completed, the user confirms the transfer order. Here it is possible to enter differences. Depending upon the set-up, it is possible for the system to create transfer orders automatically in the background.

(C) SAP AG

LO530 2-23

Transfer Order for Stock Removal

Goods Receipt area

HRS

Goods Issue area

SAP AG 1999

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

(C) SAP AG

LO530 2-24

Data Entry Help for Stock Removal

Preparation screen Available stock X 100 400 X 100 x 100 100 Bin Transfer order Item 1 Item 2 Item 3 100 pcs 100 pcs 100 pcs

TR item 1
300 pcs

01-01-01 01-01-02 01-01-03 01-02-01 01-03-01

SAP AG 1999

If you select Stock Overview from the TO Create Overview screen, you can view the available quants and select the quants you want to process. On the preparation screen, quants of the required material are proposed by the system for stock removal. You can override the system proposal and manually enter the storage bin from which the quantity is to be removed.

(C) SAP AG

LO530 2-25

Printing a Transfer Order

Item 1 Item 2 Item 3

TA Item 1 Item 2 Item 3 . . . Mat 1 Mat 2 . . .

Pick list Src. Dest. Src. Dest.

Single printout

Multiple printout

SAP AG 1999

As a rule, transfer orders are printed immediately after they have been created. You can print transfer orders in different ways: 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.

(C) SAP AG

LO530 2-26

Change Destination Bin

SAP AG 1999

As of release 4.5A, you can change the destination storage bin when you confirm transfer orders. This new feature is available in all standard situations. The situations in which you can enter the destination bin is self-evident since the destination bin field is only available for data entry in those cases. It is not possible for dynamic coordinates, return items, in Lean WM, when the destination bin is defined in the movement type, for posting change TOs, for inventory based on putaway and for addition to existing stock in a storage unit.

(C) SAP AG

LO530 2-27

Cancel Transfer Order

Before Confirmation

SAP AG 1999

It is possible to cancel transfer orders that have not yet been confirmed in the WM system. If, while placing goods into stock, you find a storage bin that cannot be used or if you determine that for some reason, a stock removal cannot take place, it is possible for you to cancel a transfer order. You can notify an external system of a transfer order cancellation from the WM system and notify the WM system of a cancellation from the external system. After a transfer order is canceled, reference documents (for example, the TR) are reopened.

(C) SAP AG

LO530 2-28

Logistics Execution Overview: Unit Summary

You are now able to: 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

SAP AG 1999

(C) SAP AG

LO530 2-29

Logistics Execution Overview - Exercises 1

Unit: Logistics Execution Overview Topic: Goods Receipt
At the conclusion of this exercise, you will be able to: Create a Goods Receipt in Inventory Management and follow through placement and confirmation in WM. In your company, when goods are received from an external source, the material comes into a receiving area and is processed in the SAP System with the appropriate Inventory Management transaction. This material is then placed into a Goods Receipt area and identified with the Purchase Order number. It is the responsibility of the warehouse then to pick up the material from the Goods Receipt area and put it away. Once the material is put away, the warehouse will confirm that the material has been stored as requested. It is your responsibility to ensure that this process is efficient and to troubleshoot any issues that may arise. In order to test the efficiency of this process, you must understand all of the steps within the receiving process. In this exercise, you will walk through the complete cycle of a Goods Receipt, from the time materials are received on the dock until those goods are placed in the appropriate storage type in the warehouse. At several points along the way, you will need to verify the stock situation. The ## indicates your group number that has been assigned by your instructor. Wherever you see ##, please insert your group number. Please be sure to work only within your warehouse.

(C) SAP AG

LO530 2-30

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 1000

Sloc 01##

StorType 001

Available

For Putaway

Pick Quantity

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-## Plant 1000 1000 Sloc 01## 01## StorType 001 902 TOTAL 1-1-6 From the Stock Overview, display the quant data and determine the following information: Quant Number _______ Goods Receipt Date ____________________ Available For Putaway Pick Quantity

(C) SAP AG

LO530 2-31

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 2-32

Save the TO. TO Number _________________

(C) SAP AG

LO530 2-33

1-2-8 Display the WM stock overview for the material T-BW03-##. Plant 1000 1000 Sloc 01## 01## StorType 001 902 Available For Putaway Pick Quantity

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? _______

Plant

Sloc

StorType

Available

For Putaway

Pick Quantity

(C) SAP AG

LO530 2-34

Logistics Execution Overview - Solutions 1

Unit: Logistics Execution Overview 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 Warehouse Number Material Number Plant Values 1## T-BW03-## 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. Field Name or Data Type Material Number Plant Values T-BW03-## 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.

(C) SAP AG

LO530 2-35

1-2 1-2-1 Logistics Logistics Execution Internal Whse Processes TranRqmt Display By Storage Type. (Favorites Add, Highlite the line and choose Favorites Change to change the description) 1-2-2 Yes, a Transfer Requirement was created by the Goods Receipt transaction. 1-2-3 Select the TR line item, then choose TO in foregr. 1-2-4 The system suggests 5 pallets with a quantity of 20 pieces each on a Europallet. 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.

1-2-8 Favorites Warehouse Management Stock Overview.

(C) SAP AG

LO530 2-36

Logistics Execution Overview - Exercises 2

Unit: Logistics Execution Overview Topic: Goods Issue
At the conclusion of this exercise, you will be able to: 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 departments 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-##. Plant 1000 Sloc 01## StorType 001 Available For Putaway Pick Quantity

2-1-2 Post a goods issue transaction issuing the 5 shafts (T-BW02-##) to Mr. Jones cost center.

2-1-3
(C) SAP AG

Note the stock balances for T-BW02-##.

LO530 2-37

Plant 1000 1000

Sloc 01## 01##

StorType 001 911 TOTAL

Available

For Putaway

Pick Quantity

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 2-38

2-3-3 Display the Transfer Order. Which bins are affected? Stor. Type Source Destination Return Stor. Bin

_________________ ________________ _________________ ________________ _________________ ________________

2-3-4 Display the stock balance for T-BW02-##. Plant 1000 1000 Sloc 01## 01## StorType 001 911 TOTAL Available For Putaway Pick Quantity

2-4

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

Plant 1000

Sloc 01##

StorType 001

Available

For Putaway

Pick Quantity

(C) SAP AG

LO530 2-39

Logistics Execution Overview - Solutions 2

Unit: Logistics Execution Overview Topic: Goods Issue

2-1 2-1-1 2-1-2 Favorites Warehouse Management Stock Overview Logistics Logistics Execution Outbound Process Goods Issue for Other Transaction Enter Goods Issue Values 201 1000 01## 1000 T-BW02-## 5

Field Name or Data Type Movement Type Plant Storage Location Cost Center Material Quantity

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. Field Name or Data Type Warehouse Material Plant Storage Location Values 1## T-BW02-## 1000 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 2-40

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 2-3-4 Favorites Warehouse Management Stock Overview.

2-4

Favorites Confirm TO, One Step 2-4-1 Save the TO. 2-4-2 Favorites Warehouse Management Stock Overview.

(C) SAP AG

LO530 2-41

Warehouse Management Structure

Warehouse Management Structure Elements

SAP AG 1999 2000

(C) SAP AG

LO530 3-1

Warehouse Management Structure: Course Overview Diagram

Course Overview Logistics Execution Overview Ware Warehouseuse Mana ho Management ge Structure Struc ment ture Master Data Integration with Inventory Management Goods Receipt

1 2 3 4 5 6
Conclusion

Goods Issue Posting Changes Production Integration Delivery Processing Replenishment Physical Inventory

7 8 9 10 11 12

13

SAP AG 1999

(C) SAP AG

LO530 3-2

WM Structure: Business Scenario

The model company is a producer and distributor of pumps. To optimize the logistics process, this company will implement Logistics Execution utilizing Warehouse Management functionality.

SAP AG 1999

(C) SAP AG

LO530 3-3

Warehouse Management Structure: Objectives

At the conclusion of this unit, you will be able to: Describe the basic elements of the warehouse structure Define possible warehouse structure scenarios with and without warehouse management

SAP AG 1999

(C) SAP AG

LO530 3-4

Example of a Physical Warehouse Structure

Goods receipt

GR area

High rack storage 1

Bulk storage Goods issue

GI area

Fixed Bin area

SAP AG 1999

Example of a complex physical warehouse structure without regard to R/3, consisting of several storage areas: high rack storage, bulk storage, fixed bin area, goods receipt and goods issue area.

(C) SAP AG

LO530 3-5

Warehouse Structure in the System

Storage type 001

Storage type Storage type 902 902 GR area GR area

Good receipt

High rack storage Storage type 004

Bulk storage Storage type Storage type 910 910 GI area GI area Storage type 005

Goods issue
SAP AG 1999

Fixed Bin area

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

(C) SAP AG

LO530 3-6

Storage Bins and Quants

Bin type

High bins

Lower bins

Fast-moving items Fast-moving items

Lower bins

Storage section

SAP AG 1999

Within each storage type the individual storage bins are defined. A storage bin is the smallest geographical or organizational unit (also called coordinate) that can be addressed by the system. Example: 02-04-09 (aisle 02, stack 04, level 09) Storage bins are identified by a bin type. Example: Bin type P1 for high bins Storage bins are organizationally grouped into storage sections. Example: Section 001 for fast-moving items. The existence of a material in a bin is defined as a quant. In bins designated for single-material storage, only one quant may be stored in the storage bin. In bins designated for mixed storage, different materials (or batches) may be stored in the same storage bin.

(C) SAP AG

LO530 3-7

WM-System Hierarchy

Warehouse (complex) number

Storage type

Storage section/ Picking area

Storage bin Quants are defined by:

Material / Batch Stock category Special stock Plant / Storage location Storage unit number
SAP AG 1999

Quant

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.

(C) SAP AG

LO530 3-8

Examples of a (Physical) Warehouse Structure

Plants

Storage areas

A B

HRS

Picking area Bulk storage

HRS

Shelving area

SAP AG 1999

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

(C) SAP AG

LO530 3-9

The Warehouse Structure in the IM System

Plants

0001

0002

Storage locations

0001 0001

0002 0002

0001 0001

0002 0002

0003 0003

SAP AG 1999

In an Inventory Management system without Warehouse Management, the various warehouses are defined as storage locations. Example: Plant 0002 Plant 0001 0002 0002 0003 Storage loc. Storage loc. 0001 0001 High rack storage Bulk storage High rack storage Bulk storage Picking area

The stock quantities are managed in cumulative form at the storage location level.

(C) SAP AG

LO530 3-10

Possible Structure with the WM System (1-1)

Scenario 1 Example 1 Plants

0001

0002

Storage locations

0088 0088

0088 0088

Warehouse number 001

Warehouse number 002 001 001 002 002 003 003

Storage types
SAP AG 1999

001 001

002 002

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.

(C) SAP AG

LO530 3-11

Possible Structure with the WM System (1-2)

Scenario 1 Example 2 Plants

0001

0002

Storage locations

0088 0088

0088 0088

0001 0001

Warehouse number 001

Storage types
SAP AG 1999

001 001

002 002

003 003

004 004

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).

(C) SAP AG

LO530 3-12

Possible Structure with the WM System (2)

Scenario 2 Plant

0001

Storage locations

0087 0087

0088 0088

0003 0003

Warehouse number 001

Storage types
SAP AG 1999

001 001

002 002

003 003

004 004

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.

(C) SAP AG

LO530 3-13

Possible Structure with the WM System (3)

Scenario 3 Plant

0001

Storage locations

0090 0090

0088 0088

0092 0092

Warehouse number 001

Storage types
SAP AG 1999

902 902

004 004

005 005

100 100

916 916

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.

(C) SAP AG

LO530 3-14

Organization Structures in the Warehouse

W A R E H O U S E

D O O R

S T A G I N G A R E A

Goods Issue

Goods Receipt

SAP AG 1999

Door: A door in a warehouse can be used for both receiving and issuing goods. In Customizing it is possible to restrict the area of usage to either receipt or issue. The door from which delivery takes place is already defined in the delivery. Material Staging Area: The Staging areas are intermediate areas in the warehouse in which the goods are temporarily stored after unloading/before loading. In Customizing, these areas are assigned to the corresponding doors.

(C) SAP AG

LO530 3-15

Warehouse Level Data

Define Weights/ Units of Measure

Notifications & Messages

Define Blocking Logic

Assign Region Code

Allow Partial Picking

Assign Number Ranges

Control Data

Define Differences

SAP AG 1999

storage types: Unit of Weight Unit of Measure default data Blocking Logic Error Messaging / Notifications Number Ranges Define Doors Handling of inventory differences Interfaces: - Inventory Management - Shipping - Production - Quality Management

(C) SAP AG

LO530 3-16

Storage Type Level Data

Storage type Level

Activate Storage Unit Management

Placement Strategies

Assign Inventory Methods

Activate Hazardous Material Handling

Activate Full Removal

Removal Strategies

SAP AG 1999

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

(C) SAP AG

LO530 3-17

Copying a Warehouse

001

002

SAP AG 1999

In WM, a default warehouse number is delivered with the standard system. The entries for this organizational unit are usually used as the basis for prototyping. If you require several warehouses for testing purposes or to define your company structure, it is often useful to copy an existing organizational unit.

Copy the respective warehouse numbers using the organizational unit copier (transaction /nEC09). You will need to then maintain number range data for the new warehouse numbers and activate the respective plants / storage locations in which you want to use the new warehouse number.

(C) SAP AG

LO530 3-18

Warehouse Management Structure: Unit Summary

You are now able to: Describe the basic elements of the warehouse structure Define possible warehouse structure scenarios with and without Warehouse Management

SAP AG 1999

(C) SAP AG

LO530 3-19

Warehouse Management Structure - Exercises

Unit: Warehouse Management Structure Topic: Organizational Elements in WM

At the conclusion of this exercise, you will be able to: 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.
LO530 3-20

(C) SAP AG

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 3-21

Warehouse Management Structure - Solutions

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 1-2 Storage Location 01##

SAP Reference IMG Logistics Execution Warehouse Management Master Data Define Control Parameters for Warehouse Number Default Unit of Weight: KG SU management active: On

1-3

SAP Reference IMG Logistics Execution Warehouse Management 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. SAP Reference IMG Logistics Execution Warehouse Management 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.

1-4

(C) SAP AG

LO530 3-22

1-5

SAP Reference IMG Logistics Execution Warehouse Management Master Data Define Storage Sections New Entries Field Name or Data Type Warehouse Number Storage Type Storage Section Description Warehouse Number Storage Type Storage Section Description Warehouse Number Storage Type Storage Section Description Values 1## 015 001 Fast Moving 1## 015 002 Slow Moving 1## 802 001 GR Area

1-6

SAP Reference IMG Logistics Execution Warehouse Management Strategies Activate Storage Bin Type Search. Under Assignments, choose Storage Unit Types to Storage Type. Choose New Entries. Field Name or Data Type Warehouse Number Type 1st 2nd Values 1## 015 E1 IP

(C) SAP AG

LO530 3-23

Master Data

Contents:
Storage Bin Data Material Master Data

SAP AG 1999

(C) SAP AG

LO530 4-1

Master Data: Course Overview Diagram

Course Overview Logistics Execution Overview Warehouse Management Structure

MasMaster Data te r D a ta

1 2 3 4 5 6
Conclusion

Goods Issue Posting Changes Production Integration Delivery Processing Replenishment Physical Inventory

7 8 9 10 11 12

Integration with Inventory Management Goods Receipt

13

SAP AG 1999

(C) SAP AG

LO530 4-2

Master Data: Business Scenario

Your company is a major producer of pumps. Engineering has designed a new flywheel for the chrome steel pump. Over the next units, this pump will be integrated into the warehouse processes and production area for sale of the final pump. You must create the master data to support this effort.

SAP AG 1999

(C) SAP AG

LO530 4-3

Master Data: Topic Objectives

At the conclusion of this topic, you will be able to: Create storage bin data Create storage bin data using a template

SAP AG 1999

(C) SAP AG

LO530 4-4

Master Data

Warehouse

Material

Warehouse Structure Warehouse number Storage type Storage bins

Material General data Data/warehouse no. Data/storage type

SAP AG 1999

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.

(C) SAP AG

LO530 4-5

Storage Bin Data

Warehouse no.: 001 Storage type 001 Storage bin: 01-02-02

Storage bin data Section Capacity Storage bin type Blocking indicator Inventory data Verification Data

Quant data Material number Stock quantity GR date Inventory data Inspection Lot SLED
SAP AG 1999

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

(C) SAP AG

LO530 4-6

Creating Storage Bins Automatically

Warehouse number Warehouse number 001 001 Storage type 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 . . .

SAP AG 1999

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

(C) SAP AG

LO530 4-7

Define Sort Sequence for Placement / Removal

Storage type 001

Top view

Storage bin

R R

S S 3 4

L L 1 2

Row

Sort Sequence Sort field

L L S S

R = Row (Aisle) S = Stack L = Level

without sort variable with sort variable

SAP AG 1999

With all of the stock placement / removal strategies, you can influence the search for a suitable storage bin with the aid of a sort variable. The sort variable helps the system to search for storage bins. The system sorts storage bins by the sort variable first. If the sort variable has not been maintained, the system sorts by the storage bin coordinate itself. You normally define the sort variable before you create the storage bins. Without the sort variable, the system fills the storage type row by row. For example, the system fills the first row completely first, then the second row, then the third. This can result in a one-sided load of the warehouse. With the sort variable, the system fills the storage bins on a stack by stack basis for each row. When the system selects bins for stock received in the warehouse, it fills the lowest level in each stack first, then the second level in each stack, then the third level, and so on.

(C) SAP AG

LO530 4-8

Master Data: Topic Objectives

At the conclusion of this topic, you will be able to: Extend a material master view for WM data

SAP AG 1999

(C) SAP AG

LO530 4-9

Material Data
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
SAP AG 1999

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 4-10

Views in a Material Master Record

Basic data
St

Purchasing

MRP Stock in plant/ storage in plant Accounting

Sales

A B

Material master record

Work scheduling Quality assurance Forecast

Storage Warehouse management

Classification

SAP AG 1999

Each user department has its own view of the material master record. For each material type you can define which views of the material master record are possible. For each user you can define which views of the material master records are to be displayed/maintained. Each user can define which views will be displayed when the material master record is displayed/maintained. The data in some views is assigned to specific organizational levels: plant, warehouse or storage type level.

(C) SAP AG

LO530 4-11

Screens in a Material Master

Material Material (Ind. sector) (Material type) (Reference)

Views - Basic data - Purchasing - Accounting - Warehouse Management

Organizational levels - Plant - Storage location - Warehouse no. - Storage type

Data screen(s)

: Standard screen sequence (without preselection)

SAP AG 1999

The material type on the initial screen is proposed during the transaction "Create special". The industry sector can be preset on a user-individual basis. Additionally, you can suppress the display of the industry sector on the initial screen. The views and organizational levels can also be preset on a user-individual basis. The views selection and organizational level screens can be removed from the standard screen sequence by setting defaults in the material master.

(C) SAP AG

LO530 4-12

Palletization Data
Warehouse 2

LE Quantity 1 2 3 40 25

Un PC PC

SUT IP E1

Transfer order

SAP AG 1999

The system uses the LE (Loading Equipment) quantity in conjunction with the storage unit type to propose how to pack a quantity onto loading devices upon stock placement.

(C) SAP AG

LO530 4-13

Units of Measure

Base unit of measure

Alternative UoM in the plant (Issue/Order/Sales unit) 4

Piece

48 12

Carton

Warehouse Management
Alternative unit of measure Pallet quantity

Box

Palletization

SAP AG 1999

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

(C) SAP AG

LO530 4-14

Master Data: Unit Summary

You are now able to: Create storage bin data Create storage bin data using a template Extend a material master view for WM data

SAP AG 1999

(C) SAP AG

LO530 4-15

Master Data - Exercises

Unit: Master Data Topic: Storage Bin Definition

At the conclusion of this exercise, you will be able to: Create storage bin data Create storage bin data using a template Your company is a major producer of pumps. Engineering has designed a new fly wheel for the chrome steel pump. Over the next units, this pump will be integrated into the warehouse processes and production area for sale of the final pump. In this unit, you must create the master data to support this effort. In the first part of the exercise, you need to create a storage bin in the Fixed bin / Picking area. This is the area where you will store the finished pump. In the second part of the exercise, you will create a range of bins using a template for the storage type that was created in the prior unit. Your warehouse number is 1##. Please remember to be careful and create or change data only within your warehouse number. 1-1 In preparation for the sale of the finished pump, you must create the storage bin where the pump will ultimately be stored and later picked for delivery. 1-1-1 In warehouse 1##, in the Fixed Bin Storage Type, create a storage bin Box##. Assign the bin to a storage section. 1-2 Now you wish to create multiple bins using a template for the storage type 015 that you created in a prior exercise. In this area, you want to create 2 sequences of bins. In the first sequence, you have small bins (E1) and in the second you have the larger (P1) bins. 1-2-1 In the first section, you have 4 rows with 9 sections and 4 levels. You want to create a range of bins for the coordinates ranging from A-01-01 to D-0904. These are the smaller bin type E1 bins with a weight limit of 1000 KG. These bins are assigned to storage section 001. How many E1 bins were created? _______ 1-2-2 In the second section, you have 5 rows with 8 sections and 3 levels. These bins have the coordinate range of E-01-01 through I-08-03. These are larger bin type P1 bins with a weight limit of 2000 KG and they are assigned to storage section 002. How many P1 bins were created? ________

(C) SAP AG

LO530 4-16

1-2-3 Display the empty bin list to verify you have E1 bin type in storage section 001 and P1 bin type in storage section 002.

(C) SAP AG

LO530 4-17

Master Data - Solutions 1

Unit: Master Data Topic: Storage Bin Definition

1-1 1-1-1 Logistics Logistics Execution Master Data Warehouse Storage Bin Create Manually. Field Name or Data Type Warehouse Number Storage Type Storage Bin Storage Section 1-2 1-2-1 Logistics Logistics Execution Master Data Warehouse Storage Bin Create Automatically. Select New Entries. Values 1## 005 Box-## 001

Field Name or Data Type Warehouse Number Storage Type Sequence Number Template Structure Start Value End Value Increment Storage Section Storage Bin Type Maximum Weight * Columns must be lined up

Values 1## 015 001 ACNNCNNCCC* A BB CC* A-01-01* D-09-04* 1 1 1* 001 E1 1000 KG

Enter. Select Environment Create Bins. Create Online. 144 Bins are created.
(C) SAP AG LO530 4-18

(C) SAP AG

LO530 4-19

1-2-2 Field Name or Data Type Warehouse Number Storage Type Sequence Number Template Structure Start Value End Value Increment Storage Section Storage Bin Type Maximum Weight 120 Storage Bins Created. 1-2-3 Logistics Logistics Execution Internal Whse Processes Bins and Stock Display Empty Storage Bins. Enter your warehouse number and storage type 015. Change the number of storage bins to display to 1000 You should see a list of bins for each section 001 and section 002 with the appropriate bin types and weight in each section. Values 1## 015 002 ACNNCNNCCC* A BB CC* E-01-01* I-08-03* 1 1 1* 002 P1 2000 KG

* Columns must be lined up.

(C) SAP AG

LO530 4-20

Master Data - Exercises 2

Unit: Master Data Topic: Material Master
At the conclusion of this exercise, you will be able to: Create Warehouse Management views for an existing material master record Create a Warehouse Management / Storage Type view for an existing material master record Set up user defaults for maintaining the material master in the future For the new flywheel number that Engineering has designed, the material master record T-BW01-## already exists; however, the WM view for the flywheel has not yet been created. You must create the WM view for the new flywheel and for the finished pump number T-MS-##. In an effort to facilitate future material master maintenance, you want to set up your user defaults for maintaining the material master. 2-1 You need to create the appropriate Warehouse Management views in the material master in order to manage the materials within your warehouse. 2-1-1 Create the Warehouse Management views for the new flywheel, material number T-BW01-##. The industry sector M and material type HALB have already been established. Organization structures are plant 1000 and your warehouse number 1##. Purchasing has made an agreement with your vendor that the material will be shipped either on industrial pallets holding 50 pieces or Europallets holding 30 pieces. On receipt, the flywheels should be directed to the Shelf Storage area and on removal picked from the Shelf Storage area and addition to stock is allowed.

(C) SAP AG

LO530 4-21

2-1-2

Now create the Warehouse Management view for the finished pump TMS-##. The finished pump is moved from production to Fixed Bin Storage. The material master must be created at the Storage Type level so the fixed bin can be assigned. The industry sector M and material type FERT have already been established. This material is being created for plant 1000, your warehouse number 1## and your fixed bin storage type (005). These pumps will come from your production facility stacked on industrial pallets with 5 pieces each. When these pumps are delivered from production, they are put into the fixed bin storage, therefore you want to assign a stock placement and a stock removal indicator of FIX. The storage bin you created in the first part of this exercise, Box-##, is the final storage bin for these pumps. You have capacity at this bin to hold a maximum of 50 pumps.

2-2

In the future you will only process material master records from the Warehouse Management view for plant 1000 and your warehouse 1##. Create the material master user defaults so the system will automatically default these values. You only want to see the view selection window when requested. You always want to see the organizational levels since you are working with various storage types. Set the Industry Sector to M and hide it.

(C) SAP AG

LO530 4-22

Master Data - Solutions 2

Unit: Master Data Topic: Material Master

2-1 2-1-1 Logistics Logistics Execution Master Data Material Material Create Immediately Field Name or Data Type Material Select Views Organizational Levels: Warehouse Stock Removal Stock Placement Addition to Stock LE Quantity UM SUT 1## REG REG On 50;30 PC IP; E1 Values T-BW01-## Warehouse Management 1 & 2

(C) SAP AG

LO530 4-23

2-1-2 Field Name or Data Type Material Select Views Organizational Levels: Warehouse Storage Type Stock Removal Stock Placement LE Quantity UM SUT Storage Bin Maximum Bin Quantity 2-2 1## 005 FIX FIX 25 PC IP Box-## 50 Values T-MS-## Warehouse Management 1 & 2

In the material create screen, select Defaults Industry Sector. Set the Industry Sector to M and choose Hide Industry. Select Defaults Views. Page down to find Warehouse Management 1 & 2. Select them and set View Selection so you only get the screen when you request it. Finally, select Defaults Organization Levels. Set the Plant to 1000 and Warehouse to 1##. Do not set the Org/Prof field, so you will continue to be prompted for organization level data.

(C) SAP AG

LO530 4-24

Integration with Inventory Management

Contents:
Inventory Management Interface

SAP AG 1999

(C) SAP AG

LO530 5-1

Integration with Inventory Management: Course Overview Diagram

Course Overview Logistics Execution Overview Warehouse Management Structure Master Data
Int g rat Inven eIntegration with tory io Management Inventoryn with Mana geme nt Goods Receipt

1 2 3 4 5 6
Conclusion

Goods Issue Posting Changes Production Integration Delivery Processing Replenishment Physical Inventory

7 8 9 10 11 12

13

SAP AG 1999

(C) SAP AG

LO530 5-2

Integration with IM: Business Scenario

The project team is responsible for customizing the Inventory Management interface. An overview of this interface is essential to understanding the options for customizing.

SAP AG 1999

(C) SAP AG

LO530 5-3

Integration with Inventory Management: Objectives

At the conclusion of this topic, you will be able to: Define how the WM Movement Type and thus, the interim storage type and bin are determined by a movement type in Inventory Management Define the overall process of Goods Movements in the WM system

SAP AG 1999

(C) SAP AG

LO530 5-4

Inventory Management/WM Interface

Inventory Management

Stock in the storage location

Goods receipt document

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

Stock placement in Warehouse Management

SAP AG 1999

In addition to quantity and cost updates in the Inventory Management system, a GR posting results in the following activities in the Warehouse Management system: A quant is automatically created in the interim storage area for goods receipt, that is, the stock quantity in Warehouse Management is the same as the quantity in Inventory Management (parallel inventory management)). A transfer requirement can be created automatically. This is used as an information help for stock placement later on. These automatic postings take place as a result of the Customizing settings.

(C) SAP AG

LO530 5-5

Interim Storage Area Search

Movement type

Inventory Management

Reference movement type

Movement type

Warehouse Management

Storage type search

SAP AG 1999

The movement type that is used for a material movement in the Inventory Management system, together with other indicators, is linked to a reference movement type for the Warehouse Management system. With the reference movement type and other indicators, the system determines the following information: movement type for Warehouse Management stock category of the quant to be generated indicator for generating transfer requirements From the WM movement type then, the following information is determined: interim storage type and interim storage bin control indicator for processing, confirming and printing transfer orders special movement indicator for storage type search

(C) SAP AG

LO530 5-6

Interim Storage: Bin Types

Warehouse Number Movement Type Dynamic

Ty

Stor.bin

FxdBn Dyn
Fix ed Bin

Src Dest Ret

Pr

ede fin ed

SAP AG 1999

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

(C) SAP AG

LO530 5-7

Transfer Order Storage Type Search - Placement

Movement Type / Transfer requirement type Stor. type 902 Stor. sect. Source bin 001 GR area

(-) Source item

(+) Dest. item Dest.

St. type 001

Stor. sect. Dest. bin 002 05-06-01

(3) (2) (1)

Stock placement strategy Storage section search Storage type search

SAP AG 1999

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

(C) SAP AG

LO530 5-8

Transfer Order Storage Type Search - Removal

(1) (2)
(-) Source item Stor. type 001 Stor. sect. 002

Storage type search Stock removal strategy Source bin 05-06-01

(+)

Dest. item Dest.

Stor. type 9XX

Stor. sect. 001

Dest. bin GI area Transfer requirement / Movement TYpe

(+) Return item

Stor. type 001

Stor. sect. 002

Return bin 05-06-01 Stock return control + Stock placement strategy

SAP AG 1999

With stock removals, the system assigns the destination bin (interim storage bin for goods issues) when the movement is posted in the IM system and the transfer requirement is created (see "Interim Storage Type Search"). When you create the transfer order, the source bin is assigned. The source bin can be: entered manually by the user assigned by the system using the storage type search and removal strategy. The storage section is not considered for stock removals. If picking areas are being used, the picking area is considered. If a quantity remains after complete stock removal from the bin, the system also assigns a return storage bin.

(C) SAP AG

LO530 5-9

TO Processing Overview IM WM
Interim storage type search

Goods movement MM - Mov.Type

WM - Mov.Type

Ref. Mov. Type

Transfer requirement

TO processing
Storage type search Storage section search Storage bin search Storage bin type search

SAP AG 1999

During a goods movement, the reference movement type is used as a key to convert the MM movement type into a Warehouse Management movement type. The WM movement type defines the interim storage type and interim storage bin. The subsequent creation of a transfer order is influenced by: the movement type material-specific factors: stock placement and removal indicators, storage class, water pollution class, stock category and special stock indicators the put-away and picking strategies for each storage type As an option, you can specify a storage section control factor or a section search within a storage type with material-specific section indicators, storage class and water pollution class As an additional option, the system can check whether a particular storage unit type may be stored in a specific storage bin or storage bin type. Finally, using the strategy assigned for the storage type, the storage bin is determined and suggested.

(C) SAP AG

LO530 5-10

Automatic Creation of Transfer Orders IM

IM Document Inventory Management

WM
Transfer requirement

asynchronous Error
Transfer order

Mail

Warehouse Management
SAP AG 1999

It is possible to set up your system so that transfer orders are created automatically when you post material documents in the Inventory Management system. When the system is configured for this process, you create material documents in the normal manner in the IM system and the Warehouse Management system subsequently creates the corresponding transfer requirements and posting change notices. The definition of the WM movement type determines whether the system will automatically create transfer orders from the transfer requirements and posting change notices initiated in the IM system. This process takes place in the background. If there are errors, the system can send an express mail message to a specified user. The user can then process the error from within the message. When you post a material document in the IM system, and movement types both with and without automatic transfer order creation exist in that document, the system goes directly to the screen to create a transfer order for a material document.

(C) SAP AG

LO530 5-11

Integration with IM: Unit Summary

You are now able to: Define how the WM Movement Type and thus, the interim storage type and bin are determined by a movement type in Inventory Management Define the overall process of Goods Movements in the WM system

SAP AG 1999

(C) SAP AG

LO530 5-12

Integration with Inventory Management - Exercises

Unit: Integration with Inventory Management Topic: Integration with Inventory Management
At the conclusion of this exercise, you will be able to: Verify the link between IM and WM movement types Change an existing WM movement type Customize a WM movement type You have created Storage Type 802 for external receipts in your warehouse. You now need to customize the system so that all Purchase Order receipts and reversals are directed to this area. In this exercise, verify the existing movement types and then modify the WM movement types to fit the structure you created. Remember to work only within your warehouse number! 1-1 Before you can modify the WM movement type to direct goods receipts to the goods receipt area 802, you must verify the link between the IM movement type and the WM movement type. 1-1-1 Compare the movement type 101 for a Purchase Order Goods Receipt to a 101 Production Order Goods Receipt. Find the Reference Movement Type: Movement Type 101 101 1-1-2 101 101 1-2 Movement Indicator B F Now find the WM Movement Type: Movement Indicator B F WM Movement Type ______________________ ______________________ Reference Movement Type ______________________ ______________________

Movement Type

Update the 101 WM movement type for purchase order receipts so that new receipts are directed to the 802 Goods Receipt area. Also modify the 102 movement type so that reversals will come from storage type 802. Production receipts will continue to be directed to storage type 901.

(C) SAP AG

LO530 5-13

1-3

Now test your configuration. Your supplier delivers 100 pieces of material TBW01-##. Enter a goods receipt for the purchase order for storage location 01##. Search for the Purchase Order number using the material number. 1-3-1 Enter a Goods Receipt for 100 pieces of the material T-BW01-##. 1-3-2 Display stock balance. If your stock shows in storage type 802, your configuration is correct.

Plant 1000 1-4

Sloc 0100

StorType 802

Available

For Putaway

Pick Quantity

Process the TR by converting it to a Transfer Order and confirming it.

(C) SAP AG

LO530 5-14

Integration with Inventory Management - Solutions

Unit: Integration with Inventory Management Topic: Integration with Inventory Management

1-1-1

SAP Reference IMG Logistics Execution Warehouse Management Interfaces Inventory Management Define Movement Types. Choose Assign WM movement type references to IM movement types. Position on: Field Name or Data Type Movement Type Value updating Qqty updating Values 101 X X

Movement Type Movement Indicator Reference Movement Type 101 101 B F _______101_____ _______101_______

1-1-2 SAP Reference IMG Logistics Execution Warehouse Management Interfaces Inventory Management Define Movement Types. Choose LE-WM Interface Inventory Management. Movement Type Movement Indicator WM Movement Type 101 101 1-2 B F ________101____ ________103______

SAP Reference IMG Logistics Execution Warehouse Management Activities Transfers Define movement types. Position on your warehouse and movement type 101. Select and choose the entry. Modify the Src Storage Type to 802. Also modify the 102 movement type Dest to 802.

(C) SAP AG

LO530 5-15

1-3 1-3-1 Logistics Logistics Execution Inbound Process Goods Receipt for Purchase Order, Order, Other Transactions Enter Goods Receipt for Purchase Order. Select the match code for Purchase Order Number and choose M:Purchasing Documents for Material. Enter the material TBW01-##. Select the entry and post the goods receipt for a quantity of 100 pieces. 1-3-2 Favorites Warehouse Management Stock Overview

1-4

Logistics Logistics Execution Inbound Process Goods Receipt for Purchase Order, Order, Other transaction Putaway Create Transfer Order by Material. Favorites Confirm Transfer Order, One Step

(C) SAP AG

LO530 5-16

Goods Receipt

Contents:
The Goods Receipt Process: Influencing factors and options for customizing

SAP AG 1999

(C) SAP AG

LO530 6-1

Goods Receipt: Course Overview Diagram

Course Overview Logistics Execution Overview Warehouse Management Structure Master Data Integration with Inventory Management
GooGoods Receipt ds R eceip t

1 2 3 4 5 6
Conclusion

Goods Issue Posting Changes Production Integration Delivery Processing Replenishment Physical Inventory

7 8 9 10 11 12

13

SAP AG 1999

(C) SAP AG

LO530 6-2

Goods Receipt: Business Scenario

In the model company, the process for goods receipt is such that a Transfer Order is created immediately following the Inventory Management receipt. In this unit, the participant will customize the goods receipt transaction to fit the business practice then test the process.

SAP AG 1999

(C) SAP AG

LO530 6-3

Goods Receipt: Objectives

At the completion of this unit, you will be able to: Customize the goods receipt activity so that the Transfer Order process immediately follows the Inventory Management process Customize the storage type and storage section search so materials are put away into the appropriate storage bin Explain the printing customizing options for Transfer Orders

SAP AG 1999

(C) SAP AG

LO530 6-4

Capacity Check

Option 1 Option 2
Check By Weight

Check By Quantity

Storage Type Option 3

Check By Palletization

SAP AG 1999

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

(C) SAP AG

LO530 6-5

Capacity Usage Based on the Material

Storage Bin 01-01-01 Total Capacity = 100 Material 4711 Capacity Usage = 11

9 x 11 = 99 Remaining capacity = 1

SAP AG 1999

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

(C) SAP AG

LO530 6-6

Capacity Check based on the SUT

Storage Bin 01-01-01 Total Capacity = 100

Material 4711 SUT Capacity = 12

8 x 12 = 96 Remaining capacity = 4

SAP AG 1999

Example 2: Capacity usage based only on SUT (storage unit type) (Must be using SUM in this storage type) Eight wire baskets can be stored in storage bin 01-01-01. This leaves a remaining capacity of 4. This capacity check is advantageous when the SUTs are next to each other and the materials can be removed one at a time from each container.

(C) SAP AG

LO530 6-7

Capacity Check based on material and SUT (1)

Storage Bin 01-01-01 Total Capacity = 100

Material 4711 Capacity Usage = 11 SUT Capacity = 12

(8 X 11) + (1 X 12) = 100 eg cubic feet Remaining Capacity = 0

SAP AG 1999

Example 3: Capacity usage based on the sum of the material and SUT (must be using SUM in this storage type) Eight pieces can be stored in storage bin 01-01-01 on an E1 pallet. This leaves no remaining capacity for the bin.

(C) SAP AG

LO530 6-8

Capacity Check based on material and SUT (2)

Storage Bin 01-01-01 Total Capacity = 100

Material 4711 Capacity Usage = 11 SUT Capacity = 12

(4 X 11) + (4 X 12) = 92 eg cubic feet Remaining Capacity = 8

SAP AG 1999

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

(C) SAP AG

LO530 6-9

Handling Differences

GR posting

50 pcs

TO item SRC GR Target 50 pcs DEST HRS Confirm Target 50 pcs Actual 40 pcs Diff. 10 pcs Difference 10 pcs Difference posting inventory management

40 pcs

SAP AG 1999

If a difference is determined during a stock transfer, you can enter this into the system during confirmation. When the transfer order item is confirmed, the difference is posted to the storage bin that has been specified for the difference indicator. In a second step, the differences are cleared in the Inventory Management system either manually or using the batch input procedure. When differences are processed in the system, the quantity of stock in the Inventory Management and Warehouse Management systems remains the same.

(C) SAP AG

LO530 6-10

Difference Indicator

Differences can be directed to: A pre-defined coordinate (Eg: Storage Type 999, Bin: Differences) A dynamic coordinate (Eg: Storage Type 999, Bin = TO Number) The source storage bin of the movement type for the TO item

SAP AG 1999

You can specify a predefined coordinate by entering the interim storage type for differences in the Typ field the identifier of the storage bin coordinate in the Diff.bin field You can specify a dynamic coordinate by entering the interim storage type for differences in the Typ field selecting the TO column for the interim storage type - If a discrepancy occurs during the confirmation process, the system generates the coordinates for the storage bin based on the transfer order number. You can specify that the difference is posted to the source storage bin of the movement type for the transfer order item by selecting the SrcBn column. If the source storage type does not allow negative stock balances, the system checks whether the stock balance is going to be negative. For more information, see Negative Stock Check. - If you use this type of difference indicator, the transfer order item cannot contain a return. Furthermore, you cannot use this difference indicator for stock removals from bulk storage.

(C) SAP AG

LO530 6-11

2 Step Confirmation

2 First confirmation when goods are picked from the bin

Second confirmation when goods are placed in the goods issue area

SAP AG 1999

Business Background: With the two-step confirmation procedure, the complete confirmation process is split into two separate steps. The first step is the confirmation of the removal from the source bin. In the goods issue process, this would be the bin from which the material is picked. Then the goods are transferred to the destination bin or area. When they are put away at the destination bin, the second confirmation for the putaway is done. In the goods issue process, this would be the goods issue area. Customer Benefits This reflects the physical process in the warehouse and is important when working with radio frequency devices. The source bin is available for putaway as soon as the first confirmation is complete. Two-step confirmation reflects real-time work in the SAP system. As a result of the separation of the picking and putaway process for every transaction, improved performance for delivery processing is achieved. The first confirmation is often done on the transfer order item level; at this point the delivery is not updated. The second confirmation is done for the complete transfer order; then the delivery update is performed. Additional information: A transfer order split is done if one step and two step confirmation occur in one single TO document. Even with two step confirmation switched on, it is possible to confirm the first and the second step in one step. Differences handling is possible for each step.

(C) SAP AG

LO530 6-12

Pre-allocated Stock Check

Goods Receipt area

Reserve storage

Production storage area

XX Pre-allocated stock check Pre-allocated stock Bin XY Mat. XX Qty 20 pcs
SAP AG 1999

Bin XY Bin XY

If the pre-allocated stock check is active for a movement type, the system checks during stock placement if the material has an entry in the pre-allocated stock table. By pressing a function key you can display all storage bins for which the material has been pre-allocated. You decide during TO creation if and how you want to fill the pre-allocated storage bins.

(C) SAP AG

LO530 6-13

Storage Type Search Control

Goods Receipt area

High rack storage

X Material

Fixed Bin Picking Area

Stor. type ind. 00 3

Y Material

FIX-Y Material Y Storage type indicator 003

SAP AG 1999

In the material master record it is possible to define a storage type indicator for stock placements. In the storage type search table you can define a default vector of 30 storage types. Access Optimization: When storage type indicators are used and several materials with different stock categories (such as special stock) exist, the number of entries in the storage type search table can become very large. To decrease the number of these entries, you can define an access strategy for the storage type search table using the access strategy table.

(C) SAP AG

LO530 6-14

Storage Section Search Control

Goods Receipt area Section 001 Section 002

X Material

L LL nd. t. i sec tor. S

Y Material

Fast-moving items

Slow-moving items

Mat. Y Stor. sect. ind. LLL

SAP AG 1999

(LLL = Storage section indicator for slow-moving items)

In the material master record you can define a storage section indicator. In the storage section search table you can define a default/check vector of 30 storage sections. The storage section is checked only if the storage section check in the storage type is active. If the storage section check is activated, the system will search for a storage bin defined in the storage section search table. If the check is set to X, the system will also check whether a stock placement is allowed for this table. If the check is set to Y, the system will allow a manual override at the time of TO creation, even if the section is not defined in this table.

(C) SAP AG

LO530 6-15

Variable Control by Storage Unit Type

Goods Receipt area

1 SUT S

Small bins

Std. pallet
P SUT I

Industrial pallet Mat. X 100 pcs IP 50 pcs S1

SAP AG 1999

Large bins

In the material master record you can define up to three different palletization instructions for the material. If the SUT (storage unit type) check in the storage type is active, the system will first check if the SUT is allowed in the storage type. The system will then check whether the SUT is allowed for that storage bin type. You can define up to 30 SUTs in a storage type and up to 30 storage bin types for a storage unit type. As an option, you can enter *** as an allowed SUT in the customizing table. This entry means that all the SUTs are allowed in this storage type. The system then searches for a suitable storage bin for the SUT based on the allowed bin types per SUT.

(C) SAP AG

LO530 6-16

Special Movement Indicator

Goods receipt posting Special movement indicator

Interim storage area

Fixed bin storage

Fixed bin storage: FIX- Mat

Inside the warehouse

High rack storage

SAP AG 1999

Using the special movement indicator, you can ensure that the GR posting creates a quant in a storage type in which a fixed bin is defined for each material. The quant is placed directly into this storage bin and no transfer requirement is created. The interim storage bin is the final storage bin for the quant. The special movement indicator is set either on the warehouse management view of the material master record or can be set at the time of the Inventory Management movement. This indicator is used to determine the warehouse management movement type, and thus the interim storage type for the creation of the quant. Using this indicator, different WM movement types can be assigned to one IM movement type.

(C) SAP AG

LO530 6-17

Stock Placement Control

Storage Type Control

Placement Strategy Changeable Destination Bin Allow Mixed Storage Allow Addition to Stock Activate Storage Unit Management Activate Storage Unit Type Check Assign Capacity Check Method

SAP AG 1999

You need to define important control indicators at the storage type level that determine the material flow (putaway and picking activities) and the way inventory is handled in each storage type. These control indicators are only meaningful when they are implemented in a particular combination. Not all indicators are allowed in every situation. Once defined, some of these indicators can only be changed with great caution. Some control settings can only be implemented based on strict prerequisites. For example, storage unit management can only be implemented if no stock at all exists within a storage type. Certain capacity checks can only be activated if all factors have been configured that pertain to that particular type of capacity check. You should be especially cautious when changing control indicators that pertain to stock placement strategies. There are indicators in the storage type record that can be overwritten in the movement type. That is to say, certain functions, such as confirmation requirement for putaway and picking or allowing posting changes in the same bin, are valid in general for a particular storage type, but not for a particular posting (for example, goods receipts from production do not need to be confirmed).

(C) SAP AG

LO530 6-18

Stock Placement Strategy

Manual Bin Fixed Bin (F) Near Fixed Bin (K) Addition to Existing Stock (I) Storage Unit Type (P) Open Storage (C) Next Empty Bin (L) Bulk Storage (B) User Exit

SAP AG 1999

Stock placement strategies are used to search for an appropriate storage bin within a storage type when goods are to be placed into storage. For each storage type, a stock placement strategy is defined that serves to optimize warehouse usage and the flow of materials.

(C) SAP AG

LO530 6-19

Manual Bin

SAP AG 1999

The system does not use a strategy to search for a storage bin. The user enters the destination storage bin when the transfer order is created. This procedure is used if the search for a storage bin is done on-site by the warehouse worker. First the warehouse worker searches for the appropriate storage bin. Then the data about the storage bin (for example, storage type and coordinates) is entered into the transfer order. We recommend that you use "no strategy" for mixed storage and interim storage types. Since no strategy is used, you leave the Stock placement strategy field blank in the storage type record.

(C) SAP AG

LO530 6-20

Fixed Bin (F)

AA
FIX-AA FIX-BB FIX-CC

FIX-DD

FIX-EE

Material AA Stor. type 005 Fixed bin: Fix-AA

SAP AG 1999

With stock placement strategy F (fixed bin assignment), the system reads the fixed bin that is defined for the storage type in the material master record. If no fixed bin is defined, an error message appears. Characteristics combination: addition to existing stock allowed capacity check

(C) SAP AG

LO530 6-21

Near Fixed Bin (K)

AA

BB

AA
FIX-AA FIX-BB FIX-CC

FIX-DD

FIX-EE

Material AA Stor. type 005 Fixed bin: Fix-AA

SAP AG 1999

Strategy K refers to stock placement of a material into a storage bin NEAR the fixed bin of the material. So that if your fixed bin is full, the system would recommend a bin in close proximity to the fixed bin. Strategy K will assign a destination bin in a storage area that serves as a goods buffer area for fixed bin storage. Although the fixed bin storage and reserve storage are in the same physical unit, they are defined as different storage types. The same conditions must exist for both storage types. The coordinate structure for bins in both storage types must be the same with the same sequence. The bins located above one another in the fixed bin storage area and the reserve area must have the same coordinates in the shelf and aisle areas, but different level numbers. You can customize so that put away is attempted first in the fixed bin storage area, then in the reserve area. Strategy K only searches in the reserve area and does not check the fixed bin area. Search first occurs within the same stack, then right beside the same stack, then the aisle on the opposite side, then neighboring aisles.

(C) SAP AG

LO530 6-22

Addition to Existing Stock (I)

AA

AA

SAP AG 1999

With stock placement strategy I, the system looks for a storage bin where the material already exists. If the system cannot find such a bin or if the capacity of the bin will be exceeded, it looks for the next empty bin. Characteristics combination: capacity check addition to existing stock allowed no mixed storage

(C) SAP AG

LO530 6-23

Pallet Strategy (P)

Bin type PA

Standard pallet

Standard pallet 02-10-01

Standard pallet

SUT: P2

Bin type PA

Industrial pallet 02-09-01 Standard pallet 02-08-01

Industrial pallet

SUT: P1

Bin type PA

SUT: P2

industrial pallet

SAP AG 1999

With stock placement strategy P, the maximum number of quants is defined dependent on the bin type and storage unit type. The first stock placement determines how the storage bin will be divided as well as which and how many quants can be placed into the other sections of the shelf. If you assign the same bin type and a different storage unit type to the same section key, is also possible for you to putaway more than one type of pallet into the same storage bin. Characteristics combination: SUT check mixed storage

(C) SAP AG

LO530 6-24

Storage Bin Section Definition

Storage bin P-001

1 A 2 B 3

1 1

A A

2 2

B B

3 3

SAP AG 1999

Rack storage is frequently designed so that a shelf section can accommodate different storage unit types (SUT). For example, a shelf section may accommodate a number. You define the maximum number of quants for each combination of storage bin type and SUT. The first time goods are transferred into the storage bin the system determines what type of bin sectioning is assigned to the shelf section. The system also determines which and how many SUTs can be transferred into the positions (compartments) of the shelf sections. The section indicates where exactly a quant is stored within the bin. You can recognize the section by the last positions following the \ in the bin coordinate. You can define up to 99 sections per bin.

(C) SAP AG

LO530 6-25

Open Storage (C)

Storage type 003

Y Material X B

Bin XXX

Bin YYY

Material F

SAP AG 1999

With stock placement strategy C, the first available storage bin in the storage section is always proposed, unless the bin is blocked. It is possible to enter another storage bin manually.

(C) SAP AG

LO530 6-26

Next Empty Bin (L)

High rack storage (top view)

Stock placement sequence without sort field Stock placement with sort field
SAP AG 1999

With stock placement strategy L, the system assigns the first empty bin for stock placement (random storage). This strategy is especially suited for high rack storage and shelf storage. The sort sequence of the storage bins can be influenced by a sort field (for example, cross-line placement).

(C) SAP AG

LO530 6-27

Bulk Storage (B)

XX

Row 02

Bin: A05-01 Quant: XX SUT: IP

A05-02 XX S1

A05-03 ZZ S1

A05-04

SAP AG 1999

General characteristics of stock placement strategy B: customer-individual definition of storage bins (for example, row / row block) definition of the capacity (stack height) based on the storage unit type and special material characteristics one SUT per line compressed stock placement possible blocking for further stock placements upon first stock removal, with automatic unblocking upon final removal partial quantities and mixed storage possible time limit for FIFO (set placement block based on time limit) variable control possible via the block storage indicator in the material master record Characteristics combination: addition to existing stock allowed SUT check

(C) SAP AG

LO530 6-28

Transfer Order and Multiple Printing

Print Report: Multiple Processing and Two- step picking:

RLVSDR40 RLKOMM40

SAPSCRIPT form Header

Transfer order

Main section

Footer
SAP AG 1999

Transfer Orders are printed using Print Report RLVSDR40. You can sort and print transfer order items from several transfer orders using report RMKOMM40 with the multiple processing task. In the standard system, various forms are available for printing individual transfer orders, combined picking lists and transfer orders from posting change notices. All transfer order printing is available for barcode scanning.

(C) SAP AG

LO530 6-29

Setting Up Printing

Create the spool indicators for each warehouse number Create the print indicators for each warehouse number Assign the printer to the movements

Assign the printer to the storage type / picking area Assign the print codes to the movement types Assign the print reports to the warehouse numbers Define the print control for multiple processing
SAP AG 1999

The spool code defines data to be passed on to the spool file. This data includes number of copies to be printed, dataset name of the printout in the spool system, whether to print immediately and whether to delete after print. The print code defines such things as the SAPscript form that is to be used for printing and the spool indicator. A Transfer Order always contains a movement type. Depending on the movement, you can assign different printers and spool codes. You can also suppress printing of the Transfer Order if required. You assign a print code to a movement type. You can designate a specific printer for each storage type or picking area. Each warehouse number must also have a print report. SAP recommends that you use a separate print report because in most cases, modifications are required in the delivered print report. The procedure for this is contained in the program documentation for RLVSDR40. Before you begin the table maintenance, you should look at each table individually and see which ones are required. Then, maintain the tables in the sequence given. Printing user exits MWMD0001 + MWMD0002

(C) SAP AG

LO530 6-30

Goods Receipt: Unit Summary

You are now able to: Customize the goods receipt activity so that the Transfer Order process immediately follows the Inventory Management process Customize the storage type and storage section search so materials are put away into the appropriate storage bin Explain the printing customizing options for Transfer Orders

SAP AG 1999

(C) SAP AG

LO530 6-31

Goods Receipt - Exercises

Unit: Goods Receipt Topic: Customizing the Goods Receipt
At the conclusion of this exercise, you will be able to: Customize the goods receipt activity so the Transfer Order process immediately follows the Inventory Management process Customize the storage type and storage section search functions so materials are put away into the appropriate storage bin In your company, the process for a goods receipt is such that a Transfer Order should be created immediately following the Inventory Management Goods Receipt. When the materials are received, the receiving personnel enter the goods receipt into the IM system with reference to a Purchase Order. The Transfer Order is created dynamically in the background and printed. When the materials have been put away to their final location, the Transfer Order is then confirmed. Received materials are to be directed to storage type 015. Materials on the smaller (E1) pallets are directed to the front of the warehouse (section 001) while the larger (IP) pallets are directed to the rear of the warehouse (section 002). It is your responsibility to configure and test this process in the SAP System. Please remember to work only within your warehouse. 1-1 When material is received into your warehouse, it is placed into storage type 015. Because this is the process for the majority of your materials, you would like to accomplish this without using a storage type or storage section placement indicator. The material you are testing with is T-BW04-##. You must first verify the material master data. 1-1-1 Look at the material master record and verify that the storage section and storage type indicators are blank. Also note the palletization data. Stock Placement Storage Section Palletization _______ _______ _______________________

_______________________ 1-2 Now you want to customize the process. In the first step, you will set the Transfer Order to be created automatically in the background following the Goods Receipt. Then you will customize the storage type and storage section search functions to place the material into the appropriate storage type and section. 1-2-1 Add an entry in the LE-WM Interface table for your warehouse and movement type 101 with reference to a purchase order so the TO is created
(C) SAP AG LO530 6-32

in the background when the transaction is run. If there is an error, you want to send a mail message to help you troubleshoot the problem. You want to find an existing entry in this table, copy it and modify it for your warehouse only. 1-2-2 To direct the materials to storage type 015, you must make an entry in the Storage Type Search table. You want materials to be first placed into 015. If there is not available space, you want the materials to be directed first to high rack storage type 001, then alternatively to shelf storage type 002. Make the appropriate table entry. 1-2-3 You must now make an entry in the Storage Section Search table. When materials arrive, you want them to go first to the smaller bins in the front rows of the warehouse (section 001), then to the larger bins in the back of the warehouse (section 002). Make this entry in the storage section search table. 1-2-4 When you created the bins for storage type 015, in section 001, you created bin type E1 and in section 002, you created bin bype P1. E1 represents the smaller bin sizes and P1 represents the larger bins. When small pallets are received, they will be directed to the smaller bins in section 001 first. The larger pallets will not fit in section 001, so they will be directed to section 002. These entries are found in the Storage Bin Type Search table. 1-3 Now test your configuration. There is a purchase order that exists for material TBW04-##. Find the purchase order and process the goods receipt for a quantity of 80. You will have 1 pallet of 50 (SUT IP) and 1 pallet of 30 (SUT E1). If you have configured the warehouse correctly, a TO will be automatically created and the materials will be directed to storage type 015 with the pallet of 30 going to storage section 001 and the pallet of 50 going to storage section 002. You will need to confirm the TO before the materials are available. 1-3-1 Process the goods receipt for a purchase order for Material T-BW04-##, quantity 80. 1-3-2 Display the Transfer Order and note the following information: Item 1: Source Storage Type _____ Storage Bin ______________ Section ____ Destination Storage Type _____ Storage Bin ______________ Section ____ Item 2: Source Storage Type _____ Storage Bin ______________ Section ____ Destination Storage Type _____ Storage Bin ______________ Section ____ The storage section is not displayed on the first page of the Transfer Order display. If you select the bin, you can see the storage section.

1-3-3 Confirm the TO.

(C) SAP AG

LO530 6-33

Goods Receipt - Solutions

Unit: Goods Receipt Topic: Customizing the Goods Receipt

1-1-1 Logistics Logistics Execution Master Data Material Material Change Immediately. Enter material T-BW04-##. Select the Warehouse Management 1 view for your warehouse number 1##. Stock Placement BLANK Storage Section Palletization: 30 PC E1 1-2 1-2-1 Tools AcceleratedSAP Customzing Edit Project Goto SAP Reference IMG Logistics Execution Warehouse Management Interfaces Inventory Management Define Movement Types LEWM Interface inventory management. Find the row for all warehouse (***), Reference movement type 101, Movement Indicator B, WM Movement Type 101. Select the row and enter Copy As. Specify the target entry by entering your warehouse number 1##, and in the column IM ->, enter A. Also enter an A in the Mail column to send mail in case of an error. Enter and Save. 1-2-2 SAP Reference IMG Logistics Execution Warehouse Management Strategies Activate Storage Type Search Determine Search Sequence. Position on warehouse 1##, activity E. Modify the storage type sequence of the first entry to read: W 1## Oper E TyIn S S Stor W 0 Ref. 0 S. 1 ST 015 2 ST 001 3 ST 002 BLANK 50 PC IP

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

1-2-4 SAP Reference IMG Logistics Execution Warehouse Management Strategies Activate Storage Bin Type Search
(C) SAP AG LO530 6-34

1-3-1 Logistics Logistics Execution Inbound Process Goods Receipt for Purchase Order, Order, Other Transactions. Search for the Purchase Order number by selecting the matchcode M:Purchasing Documents for Material and entering the material number T-BW04##. Verify the quantity of 80. Select OK and Save. 1-3-2 Logistics Logistics Execution Inbound Process Goods Receipt for Purchase Order, Order, Other Transactions Putaway Display Transfer Order By Material. Enter your warehouse number 1## and material T-BW04-##. 1-3-3 Favorites Confirm TO, One Step.

(C) SAP AG

LO530 6-35

Goods Issue

Contents:
Customizing the Goods Issue Process

SAP AG 1999

(C) SAP AG

LO530 7-1

Goods Issue: Course Overview Diagram

Course Overview Logistics Execution Overview Warehouse Management Structure Master Data Integration with Inventory Management Goods Receipt

1 2 3 4 5 6
Conclusion

Good Issue Goods s Is s ue

7 8 9 10 11 12

Posting Changes Production Integration Delivery Processing Replenishment Physical Inventory

13

SAP AG 1999

(C) SAP AG

LO530 7-2

Goods Issue: Business Scenario

In the model company, the process for goods issue is such that a Transfer Order is created in the foreground, immediately following the movement in Inventory Management. In this unit, the participant will customize the transaction to fit the business practice then test the process.

SAP AG 1999

(C) SAP AG

LO530 7-3

Goods Issue: Objectives

At the conclusion of this unit, you will be able to: Customize the goods issue activity so that the Transfer Order in the Warehouse is created in the foreground, immediately following the Inventory Management process and the goods are picked from the optimal location.

SAP AG 1999

(C) SAP AG

LO530 7-4

Full Stock Removal Options

Transfer to another bin

Return to same bin

Retain at destination
SAP AG 1999

When stock is removed from a storage type for which "complete removal" has been defined, sometimes a smaller quantity remains after the required quantity is picked. The remaining quantity is returned to a storage bin via a "return" sub-item in the transfer order. With the Warehouse Management (WM) component there are three methods for returning quantities to a storage bin: Stock remains at the destination bin, that is, the storage bin to which it is being transferred Stock is returned to the source bin, that is, the storage bin in which it was originally stored Stock is transferred to another storage bin - When stock is returned to another storage bin, the system uses the stock placement strategy specified for the storage type. You can change the default that the system proposes for the return storage bin in the transfer order.

(C) SAP AG

LO530 7-5

Stock Removal Control

Storage Type Control

Removal Strategy Confirmation Control Allow Negative Stock Allow Zero Stock Check Activate Full Removal Activate Rounding Quantity Post Change to Same Bin

SAP AG 1999

Again, you define important control indicators at the storage type level that determine the material flow (putaway and picking activities) and the way inventory is handled in each storage type. These control indicators are only meaningful when they are implemented in a particular combination. Not all indicators are allowed in every situation. Once defined, some of these indicators can only be changed with great caution. Also, some control indicators for storage types are mutually exclusive; legal or internal directives may not allow some combinations of indicators. In these cases, an error message will appear if a combination is not allowed. You should carefully check and test any new combinations before they are released in the production system.

(C) SAP AG

LO530 7-6

Stock Removal Strategy

FIFO (F) LIFO (L) Partial Quantities (A) Large/Small Quantities (M) Cascadable with Rounding (M) Fixed Bin Picking (P) SLED (H) Stringent FIFO (***) User Exit

SAP AG 1999

A stock removal strategy is the procedure used to search for a suitable quant for stock removal within a storage type. For each storage type you define a stock removal strategy (FIFO for example) that serves to optimize warehouse usage and the flow of materials. You can define the stock removal strategy Stringent FIFO to apply to more than one storage type.

(C) SAP AG

LO530 7-7

FIFO (F)

4-1

Goods Receipt: 3-1

5-1

3-1

Goods Receipt = Current Date Goods Receipt = Document Date Goods Receipt = Posting Date

SAP AG 1999

With this picking strategy the system proposes the oldest quant in the storage type as the quant that should be transferred. The system generally calculates the "age" (length of time in storage) of a quant on the basis of the goods receipt posting date from the Inventory Management (IM) application component. The system automatically sets the goods receipt date in the quant and in the transfer requirement for every goods receipt posting in IM. When the transfer order is created, this date is copied over to the quant record of the destination storage bin. You can accept the goods receipt date that the system sets or you can enter a different date. Regardless of whether the system proposes the goods receipt date or you enter a different date, the date is used to calculate the age of the quant. This date influences the sorting sequence for each material.

(C) SAP AG

LO530 7-8

LIFO (L)

5-4

5-3

Last In, First Out

5-2

5-1

SAP AG 1999

For some warehouse organizations or sectors of industry, the FIFO principle cannot be used. For example, in the building material industry material that is being stored temporarily, that is, material that is going to be transferred immediately out of the warehouse, is stacked on material that is already in the warehouse. If the FIFO strategy is used during picking, the material lying on top must be moved so that the warehouse worker can reach the material with the oldest goods receipt date. The LIFO strategy is provided for such situations. When the system searches for a quant to remove from stock, it always selects the last quant that was placed into stock.

(C) SAP AG

LO530 7-9

Partial Quantities First (A)

100 pcs

100 pcs

80 pcs

Order amount

100 pcs

30 pcs

SAP AG 1999

With stock removal strategy A, the system compares the requirement quantity with the largest bin quantity in the storage type. If the requirement quantity is the same or larger (for example, because an entire pallet is required), stock is removed from this bin. If the requirement quantity is smaller, it is removed from a pallet with a partial quantity. When the system searches for a quant, it follows these steps: If the required quantity in the transfer order is the same or greater than the quantity of a standard storage unit, the system attempts to remove a standard storage unit from stock. If no standard storage units are available, partial storage unit quantities are used. If the required quantity in the transfer order is less than the quantity of the standard storage unit, the system first tries to remove partial storage unit quantities from the stock. If no partial storage unit quantities are available, full storage units are broken.

(C) SAP AG

LO530 7-10

Large/Small Quantities (M)

Quantity to be removed smaller / larger than control quantity

?
Fixed bin storage High rack storage

Small quantity Stock removal strategy: M

SAP AG 1999

Large quantity

With stock removal strategy M, only an amount smaller than or equal to the control quantity defined in the material master record can be removed from the storage type. If the requirement quantity is larger than the control quantity, the system searches for a quantity in the next storage type (default vector in the storage type search table).

(C) SAP AG

LO530 7-11

Cascadable through Quantity Rounding - M

1 - 19 = Piece Storage Type=005 Control Qty = 19

Material Master: Palletization Qty = 100

20-100 = Box Storage Type = 001 Control Qty = 99 Rounding Qty = 20

Multiples of 100 = Pallet Storage Type = 007 Rounding Qty = 100

SAP AG 1999

Quantity rounding is meaningful in combination with picking strategy M. If pallet quantites, carton quantities or individual quantities are to be picked from a chain of storage types, this can be done by defining the rounding quantity and control quantity in the material master record. First, in customizing, switch on the round off quantity field at the storage type level. For the first storage type of the search sequence, (pieces) enter the number of pieces in a carton minus 1 as the control quantity. For requirement quantities greater than or equal to a carton, the system will skip over this storage type. For the second storage type of the search sequence, (cartons) enter the pallet quantity minus 1 as the control quantity and the rounding quantity equal to the carton quantity. For requirement quantities greater than or equal to one pallet, the system skips this storage type and generates transfer order items for complete carton quantities only. In the third storage type, you do not enter a control quantity, but the rounding quantity is equal to the pallet quantity. The system then generates transfer order items for full pallets only. For remaining quantities, the system returns to the storage type sequence and picks from the first or second storage types. Note: the system does not round to zero so if there are not enough individual pieces in the first storage type, a carton will be broken. Also, if the requested quantity is larger than the available quantity in a bin, it is not rounded. If a carton plus a few individual pieces are located in a bin in the second storage type, and the requirement quantity is greater, the bin will be emptied.

(C) SAP AG

LO530 7-12

Picking Strategy for Fixed Bins (P)

AA BB
FIX-AA FIX-BB FIX-CC

FIX-DD

FIX-EE

Material AA Stor. type 005 Fixed bin: Fix-AA

SAP AG 1999

Picking Strategy P allows the bin from the material master to be posted, even if the bin has no stock quantities, thus driving the on hand balance of the fixed bin to a negative quantity. Characteristics combination: Stock Placement Strategy F Negative Stocks are allowed

(C) SAP AG

LO530 7-13

Shelf Life Expiration Date (H)

IM
Goods receipt area
4711 6/10

Goods receipt 20 Feb Material 4711 Expiration date 21 March

4711 4/3

OK Goods receipt Material 4711 Expiration date 13 July

Goods issue on 22 February Material 4711

4711 7/13

Stock removal strategy H

Goods issue area

4711 3/21

Material 4711 Minimum remaining time 150 days

SAP AG 1999

SLED Control List Type Bin Mat. Rem.Time 001 A 4711 - 12 days 001 B 4711 - 9 days ..... ... ....... - 6 days

For materials managed with shelf life expiration date (SLED), the expiration date is noted in the quant data when the goods are received. At that time the system checks whether the SLED entered is allowed or not. By using stock removal strategy H, you ensure that materials with the fewest days remaining before the expiration date are removed from storage first. A report is also available to select and list materials in the warehouse that respond to a user-defined remaining time before a given expiration date. This is known as the shelf life expiration date (SLED) control list. For materials that are managed in batches, the processing of materials that are to be removed from stock can be handled using the general batch search task.

(C) SAP AG

LO530 7-14

Stringent FIFO (***)

Storage Type Search: WH Act TypIn 100 100 100 A A A FIX REG C S Class WPC Ref SL 001 002 003 (Stor Types) 001 002 005 *** ***

SAP AG 1999

It is generally assumed that only one picking strategy is allocated to each storage type. However, a strategy based on the storage type is not usable in all sectors of industry. In WM, it is possible to remove stock according to the FIFO principle by taking into account all quants within a warehouse. In this case, the system does not scan individual storage types in sequence but it proposes the oldest quant in the entire warehouse as the quant to be removed from the warehouse. The system does not take into account the picking strategies specified for the individual storage types. This would lead to inconsistencies. Some storage types should be excluded from the stringent FIFO strategy, otherwise incorrect picks would result. For example, the interim storage area for differences should be excluded from the stringent FIFO strategy. The stringent FIFO strategy is set or switched off in the table Exclusion of storage types from Stringent FIFO.

(C) SAP AG

LO530 7-15

Goods Issue: Summary

You are now able to: Customize the goods issue activity so that the Transfer Order in the Warehouse is created in the foreground, immediately following the Inventory Management process and the goods are picked from the optimal location.

SAP AG 1999

(C) SAP AG

LO530 7-16

Goods Issue - Exercises

Unit: Goods Issue Topic: Customizing the Goods Issue
At the conclusion of this exercise, you will be able to: Customize the goods issue activity so that the TO creation progrm is called immediately following the Inventory Management transaction A Goods Issue to a Cost Center is often referred to as a Miscellaneous Issue. Typically, these types of issues are done in the warehouse when other departments are requesting materials outside of regular production or maintenance; for example, materials that are stocked in the warehouse, but not consumed by the production process. These materials are issued from the warehouse and expensed to a cost center. When you process a goods issue, you want to be able to combine the Inventory Management and Warehouse Management activities so that immediately following the IM transaction, the Transfer Order program comes into the foreground. During the stock removal, you want the system to look first in your storage type 015 for available inventory. If there is no stock in storage type 015, then you want the system to search throughout the other storage types for the oldest quant. The user will make the final decision about which quant to select.You want to process the TO online in the foreground and then confirm the TO as a separate step. It is your responsibility to configure and test this business process. Remember to work only within your warehouse!! 1-1 When materials are requested from outside departments, you first process the issue in IM and then follow through with the WM transactions. You want to customize the system to follow the business scenario outlined above. You will be testing with material T-BW04-##. 1-1-1 Check the material master record and verify the Stock Removal indicator. Stock Removal: _________________

(C) SAP AG

LO530 7-17

1-2

Now configure the system to match the process. 1-2-1 First, you must find the Reference Movement Type for the Goods Issue 201. IM Movement 201 Reference Movement: ____ 1-2-2 Add an entry in the LE-WM Interface table for your warehouse and movement type 201 Goods Issue to a Cost Center so the TO program is called to the foreground when the IM transaction is run. You want to find an existing entry in this table, copy it and modify it for your warehouse only. 1-2-3 Now you want to modify the storage type search sequence so that the system will search first in storage type 015 for an available quant. If there is no material available in 015, then you want to search throughout the warehouse for the oldest available quant. Customize the storage type search sequence for stock removals to fit this scenario.

1-3

Now test your configuration. 1-3-1 Before you begin, check your stock situation for T-BW04-##. ial 04-## 1-3-2 Issue 100 of material T-BW04-## to cost center 1000. 1-3-3 Process the TO in the foreground. During the processing of the TO, list the quants and choose one from the list. 1-3-4 Confirm the TO as a separate step. 1-3-5 Check your stock situation once again. ial 04-## ype able utaway Quantity ype able utaway Quantity

(C) SAP AG

LO530 7-18

Goods Issue - Solutions

Unit: Goods Issue Topic: Customizing the Goods Issue

1-1 1-1-1 Logistics Logistics Execution Master Data Material Material Display Display Current Status. Enter material T-BW04-##. Select the Warehouse Management 1 view for your warehouse number 1##. Stock Removal BLANK 1-2 1-2-1 Tools AcceleratedSAP Customzing Edit Project Goto SAP Reference IMG Logistics Execution Warehouse Management Interfaces Inventory Management Define Movement Types Assign WM movement type references to IM movement types. Position on Movement Type 201, Quantity Updating (X), Value Updating (X). IM Movement 201 Reference Movement: 201 1-2-2 SAP Reference IMG Logistics Execution Warehouse Management Interfaces Inventory Management Define Movement Types LE-WM Interface inventory management. Position on Warehouse number ***, Reference movement type 201. Select the row and enter Copy As. Specify the target entry by entering your warehouse number 1##, and in the column IM ->, enter X. Enter and Save. 1-2-3 SAP Reference IMG Logistics Execution Warehouse Management Strategies Activate Storage Type Search Determine Search Sequence. Position on warehouse 1##, activity A. Modify the storage type sequence of the first entry to read: W 1## Oper A TyIn S S Stor W Ref. S. 1 ST 015 2 ST *** 3 ST

(C) SAP AG

LO530 7-19

1-3 1-3-1 Favorites Warehouse Management Stock Overview 1-3-2 Logistics Logistics Execution Outbound Process Goods Issue for Other Transactions Enter Goods Issue. Field Name or Data Type Movement Type Plant Storage Location Cost Center Material Quantity 1-3-3 Values 201 1000 01## 1000 T-BW04-## 100

When you save, you are now in the TO Processing screen. Select Enter. Choose Stock Figures. Enter the quantity for removal from each quant and Save. Favorites Confirm TO, One Step Favorites Warehouse Management Stock Overview

1-3-4 1-3-5

(C) SAP AG

LO530 7-20

Posting Changes

Contents:
Stock Transfer: Logical vs Physical Bin to Bin Movements Change in Stock Category Material to Material/Batch to Batch Transfer Initiate Post Change from WM

SAP AG 1999

(C) SAP AG

LO530 8-1

Posting Changes: Course Overview Diagram

Course Overview Logistics Execution Overview Warehouse Management Structure Master Data Integration with Inventory Management Goods Receipt

1 2 3 4 5 6
Conclusion

Goods Issue
Post Changes Postingng i Chan ges

7 8 9 10 11 12

Production Integration Delivery Processing Replenishment Physical Inventory

13

SAP AG 1999

(C) SAP AG

LO530 8-2

Posting Changes: Business Scenario

In day-to-day warehouse activity, it is often necessary for warehouse workers to move inventory from one bin to another, whether combining inventory, rearranging shelves or correcting errors. For this activity, we need to be able to move quants from one bin location to another. There are also processes in IM which create posting change notices in the warehouse. These scenarios include release from Quality Inspection or Blocked Stock, material identification changes and corrections to batch-managed materials. Warehouse workers need to be able to process these activities, using posting change notices.

SAP AG 1999

(C) SAP AG

LO530 8-3

Posting Changes: Objectives

At the conclusion of this unit, you will be able to: Recognize when an inventory movement will create a posting change notice in WM Process bin to bin movements within the warehouse Demonstrate how to process a posting change notice in WM in the foreground Demonstrate how to configure the system so that posting change notices can be initiated in WM

SAP AG 1999

(C) SAP AG

LO530 8-4

Stock Transfer / Transfer Posting

Stock Transfer
Materials Warehouse

Distribution Center

Physical movement

Transfer Posting
In quality inspection

Unrestricted Use

Logical movement

SAP AG 1999

Although postings are made in both cases, simple transfer postings differ from stock transfers in that transfer postings do not usually also involve a physical material movement; instead, simply the stock type, batch number, or material number is changed. Further examples of transfer postings are postings recording release from quality inspection or the transfer from blocked material into unrestricted stock, a change in the stock category of the material

(C) SAP AG

LO530 8-5

Bin to Bin Transfer

Trans. order without reference

Transfer order

Confirm TO

Material available

SAP AG 1999

To transfer stock from one storage bin to another storage bin within the same warehouse, you manually create and confirm a transfer order for the material to be moved. A transfer requirement is not needed. Since the total quantity of stock in the warehouse remains the same, stock movements that take place within the same warehouse number do not require the use of the Inventory Management system.

(C) SAP AG

LO530 8-6

Create TO from Stock List

Clear Bins / Bin areas Group together Supply to Pick Areas

Transfer when capacity reached

Transfer for change in classes in storage type

SAP AG 1999

The new report Stock Transfer allows the creation of Transfer Orders from a list of bin stock. The following tasks can be performed from this report: Clear bins or bin (for example, because of maintenance work or for other reasons). Group together stocks that are dispersed throughout the warehouse (consolidation). Supply stocks to a picking area. Transfer stock as soon as a specified capacity has been reached. Transfer stock when there has been a change in the storage classes in a storage type.

(C) SAP AG

LO530 8-7

Material to Material / Change in Batch

1994

Mild Cheese

Sharp Cheese

Batch
SAP AG 1999

Batch

A stock transfer from material to material requires that both materials are managed in the same base units of measure. A stock transfer from material to material can be necessary if a material changes over the course of time. It no longer matches the data defined in the material master, but rather fits the criteria of another material master number. This typically occurs in the chemical and pharmaceutical industries. Use the same transaction to change the batch identification of a material. Enter the same material number, but change the batch information.

(C) SAP AG

LO530 8-8

Posting Change: Material Number

Transfer posting in Inventory Management Material A to Material B (100 pcs)

Posting change area Example: Material A to Material B Posting change notice Item 1 A 100 Item 2 B 100 + Posting change transfer order Item 1 Src Dest Item 2 Src Dest
SAP AG 1999

Quant A 100 Quant B 100 +

Storage type 001

Mat. 001 922 Mat. 922 001

A 001 01-01-01 001 PC area B 001 PC area 001 01-01-01

A posting change or stock transfer is first posted in the Inventory Management system as a transfer posting. As a result, the system creates a posting change notice and two quants in the posting change area (a logical interim storage area). You process the posting change in the WM system by creating a transfer order for the posting change notice. You can post the posting change quantity to the original bin or to another storage bin.

(C) SAP AG

LO530 8-9

Stock Transfer/Transfer Posting (II)

Company code

Company code

Plant

Plant

Storage Location
SAP AG 1999

Storage Location

Physical stock transfers can occur at three different levels: Company code to company code Plant to plant Storage location to storage location Such a stock transfer consists of a goods issue from the issuing point and a goods receipt at the receiving point. You can post stock transfers in one step or two. To transfer material company code to company code, you use the transaction plant to plant, but the plants are assigned to different company codes. In this instance, two accounting documents are generated, one for the sending plant and one for the receiving plant.

(C) SAP AG

LO530 8-10

Stock Transfer / Posting Change: Plant to Plant

Plant 1

Plant 2

Plant 1

Plant 2

0088

Storage location

0099

0088

Storage location

0099

001

Warehouse

002

Warehouse

001

Stock Removal
SAP AG 1999

Stock Placement

Posting Change

A plant-to-plant transfer posting in the Inventory Management system can result in a posting change within a warehouse number. If stocks for two separate plants are managed within the same warehouse number, a transfer posting in the Inventory Management system results in a posting change within the warehouse number (in the WM system). However, if the two plants are managed in two separate warehouse numbers, the transfer posting results in a stock removal from the one warehouse number and a stock placement into the second warehouse number.

(C) SAP AG

LO530 8-11

Posting Changes During Stock Placement

Tr. requirement 50 pieces Reserve storage

GR area 50 pcs GR posting A Q 50 pcs A Q Posting changes (Release from quality inspec.) Material A 100 pcs
SAP AG 1999

Posting change area A Q -100 A +100

To release materials from quality inspection, you can carry out a transfer posting in the Inventory Management system or make a usage decision for an inspection lot in the Quality Management System. Afterwards, you create a transfer order for the posting change notice in the WM system. This is used to convert the material quants (possible on a material document basis) with stock category Q. If a transfer requirement for the stock placement is still open, this is also updated by the posting change. Depending upon the set-up, it is possible for the system to create transfer orders automatically in the background. Again, the posting change quantity can be posted to the original bin or to another storage bin.

(C) SAP AG

LO530 8-12

Transfer Posting: Initiated in WM

WM Posting Change

IM Posting Change

Automatic Update

SAP AG 1999

The transaction Transfer Posting in WM and IM will process posting changes for quants entirely from within WM. The entire quant must be selected.The system then performs all necessary processes in Inventory Management. With this program, no posting change notice is created in Warehouse Management so you can carry out certain posting changes directly as a one-step process.

(C) SAP AG

LO530 8-13

Customizing Posting Changes WM/IM

Stock
WM Movement Type IM Movement Type

B B A B C

Stock Category Source

Stock Category Destination

Special Stock Source

Special Stock Destination

Quality to Unrestricted

Consignment to Own

SAP AG 1999

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

(C) SAP AG

LO530 8-14

Posting Changes: Summary

You are now able to: Recognize when an inventory movement will create a posting change notice in WM Process bin to bin movements within the warehouse Demonstrate how to process a posting change notice in WM in the foreground Demonstrate how to configure the system so that posting change notices can be initiated in WM

SAP AG 1999

(C) SAP AG

LO530 8-15

Posting Changes - Exercises 1

Unit: Posting Changes Topic: Bin to Bin Movements
At the conclusion of this exercise, you will be able to: Process bin to bin movements within the warehouse

In day to day warehouse activity, it is often necessary for warehouse workers to move inventory from one bin to another, whether combining inventory, rearranging shelves or correcting errors. For this activity, we need to be able to move quants from one bin location to another. Within the warehouse, there is a movement type 999 defined for bin to bin movements. This movement type allows you to move freely from one bin to another without reference to any other document and without affecting IM. This first section of this exercise is two-part. In the first part, you will move one material within the warehouse from one bin to another. In the second part, you will move several materials from one bin to another using a list. When you use the list, you want to create a variant for the display for your use in the future. 1-1 Move a quant from a bin in storage type 007 to a bin in storage type 001 by creating a TO without reference. 1-1-1 Look at the Bin Stock per Material for material T-BW08-##. Note several of the quants in Storage Type 007. ge Type ge Bin Stock

1-1-2 You want to move one quant from storage type 007 to storage type 001 (high rack storage). Create a Transfer Order without reference and move the material from storage type 007 to storage type 001 into an available bin. 1-1-3 Confirm the TO.

(C) SAP AG

LO530 8-16

1-1-4 Display the Bin Stock per Material and note the change. ge Type ge Bin Stock

1-2

You have just been notified that the maintenance department needs to fix some of the shelving in Storage Type 007 Section 002 area. You must select all materials in the Storage Type 007 Section 002 and move them to Storage Type 007 Section 001 while this maintenance occurs. 1-2-1 Look at the function Create Transfer Orders from List. You want to select those materials that are in Section 002, but the Section is not visible from the current list display. Change the display list format so the section is visible. You can remove other information that is not relevant as you wish (for example, Special Stock Number). Save the new display format as a variant with the name Group-##. 1-2-2 Using the Create Transfer Orders from List function, create the appropriate Transfer Orders to move the material in Storage Type 007, Section 002 to Section 001 of the same storage type. Transfer the quants in the foreground and choose to confirm the TO immediately. 1-2-3 Refresh the list to see the effect of the movements.

(C) SAP AG

LO530 8-17

Posting Changes - Solutions 1

Unit: Posting Changes Topic: Bin to Bin Movements
1-1 1-1-1 Logistics Logistics Execution Internal Whse Processes Bins and Stock Bin Stock per Material 1-1-2 Logistics Logistics Execution Internal Whse Processes Stock Transfer Create Transfer Order No Source Object. Field Name or Data Type Movement Type Material Number Requested Quantity Values 999 T-BW08-## (from 1-1-1)

Enter. Enter the Source information from 1-1-1 (Source Storage Type and Bin) and enter 001 in the Destination Storage Type and press enter again to let the system find an appropriate bin for placement. 1-1-3 From the Create Transfer Order: Initial Screen, select Transfer Order Confirm Transfer Order. Alternatively, select Favorites Confirm TO, One Step. 1-1-4 Logistics Logistics Execution Internal Whse Processes Bins and Stock Bin Stock per Material 1-2 1-2-1 Logistics Logistics Execution Internal Whse Processes Stock Transfer Create Transfer Order From Stock List. Field Name or Data Type Warehouse Number Storage Type Material Number Movement Type Values 1## 007 T-BW08-## 999

Select Current Display Variant. Select Storage Section from the right side of the display and choose the single arrow pointing to the left. Select any fields as you wish from the left and move to the right to remove them from the display. When you have finished, select Copy. Select Save Display Variant and save your changes under Group-##, TO List Display. Exit the list.
(C) SAP AG LO530 8-18

1-2-2 Execute the TO from Stock List again as above, but this time enter Group## in the Display Variant field. Select all the lines from storage type 002 then select Stock Transf.frgrnd. Field Name or Data Type Storage Type Storage Section Confirm Immediately 1-2-3 Refresh Values 007 001 Select

(C) SAP AG

LO530 8-19

Posting Changes - Exercises 2

Unit: Posting Changes Topic: Transfer Posting Material to Material
At the conclusion of this exercise, you will be able to: Process a Material to Material Posting Change

Transfer Postings are movements within the warehouse that can be either physical (moving a material from one place to another) or logical (changing the identification or characteristic of a material). These Inventory Management Transfer Postings cause Posting Change Notices to be created within the warehouse. Examples of IM Transfer Postings that cause posting change notices include inventory releases from Quality Inspection or Block Stock, material revision changes that change the identification of a material, or changes and corrections to a batch managed material. In this exercise, you will change the identification of a material and process the resulting posting change notice in the foreground. 2-1 You have a quantity of 100 pumps material number T-BW-## in your warehouse. Engineering notifies you that 25 of these pumps have been retested and are now to be identified as T-MS-## pumps. 2-1-1 Look at the stock balances for the materials T-BW-## and T-MS-##. Material Stor Type Available For Putaway Pick Qty

T-BW-## 015 Material T-MS-## Stor Type Available For Putaway Pick Qty

2-1-2 Execute the Transfer Posting Material to Material to change 25 pumps from material number T-BW-## to T-MS-##.

2-1-3 Display the Stock Overview again for both materials. Material
(C) SAP AG

Stor Type

Available

For Putaway Pick Qty

LO530 8-20

T-BW-## 015 922 TOTAL Material T-MS-## TOTAL 2-1-4 Process the Posting Change that was created in the warehouse. 2-1-5 Confirm the TO. 2-1-6 Display the WM Stock Overview again. Material TOTAL Material T-MS-## TOTAL Stor Type 005 Available For Putaway Pick Qty Stor Type Available For Putaway Pick Qty Stor Type 922 Available For Putaway Pick Qty

T-BW-## 015

(C) SAP AG

LO530 8-21

Posting Changes - Solutions 2

Unit: Posting Changes Topic: Transfer Posting Material to Material

2-1 2-1-1 Favorites Warehouse Management Stock Overview. (Note: While you do have an inventory balance for T-BW-##, there is no inventory yet for TMS-##.) 2-1-2 Logistics Logistics Execution Internal Whse Processes Post Change Via Inventory Management Enter Posting Change. Field Name or Data Type Movement Type Plant Storage Location Receiving Material Material Quantity Values 309 1000 01## T-MS-## T-BW-## 25

2-1-3 From the Enter Transfer Posting: Initial Screen select Environment Stock Overview Stock Material. To see the WM inventory, select the line, then select Environment WM Stocks. 2-1-4 Logistics Logistics Execution Internal Whse Processes Post Change Via Inventory Management Transfer Order Create From List of Posting Change Notices. Display the posting change notices for your warehouse. Select the line and choose Create trans.order. Select the line for Stock in Storage Types, then choose Quant List. Select quants as appropriate up to the quantity of 25 and indicate that quantity in the field provided. Then choose Process in the foreground. Choose enter (for each quant) and save. 2-1-5 Favorites Confirm TO, One Step 2-1-6 Favorites Warehouse Management Stock Overview

(C) SAP AG

LO530 8-22

Posting Changes - Exercises 3

Unit: Posting Changes Topic: Posting Changes Initiated in WM
At the conclusion of this exercise, you will be able to: Customize a WM movement type to initiate a posting change in WM Perform a Posting Change in WM and have the system create the required IM documents Occasionally in the warehouse, you have the requirement to change the status of a quant--for example, to change a quant from Unrestricted Status to Blocked Stock. You want to configure SAP to allow you to move materials to Blocked Stock from within the warehouse without creating a posting change notice in WM. 3-1 You want to process movements into and out of Blocked Stock, initiating those movements from within the warehouse. You will create two new WM movement types and customize the IM interface for posting changes to allow this transaction to occur within the warehouse. 3-1-1 Create two new WM Movement Types (943, 944) by copying 309 with the following changes: Allow manual TO creation Allow TO to be confirmed immediately Propose Confirmation 3-1-2 Define the control for the posting change activity from Blocked Stock (S) to Unrestricted Use (Blank). Also define the control from Unrestricted Use to Blocked Stock.

3-2

Test your configuration by converting a quant from Unrestricted Use to Blocked Stock from the WM Posting Change Bin Stock function. 3-2-1 Before you begin, note your stock situation. Material T-BW-## 3-2-2 Now execute the transfer posting from within WM, converting a quant of the T-BW-## pumps from Unrestricted to Blocked Stock. 3-2-3 3-2-4 What TO number is generated? ____________ Check the stock overview again. StorType Available For Putaway Pick Quantity

(C) SAP AG

LO530 8-23

Material T-BW-##

StorType

Available

For Putaway

Pick Quantity

(C) SAP AG

LO530 8-24

Posting Changes - Solutions 3

Unit: Posting Changes Topic: Posting Changes Initiated in WM
3-1 3-1-1 SAP Reference IMG Logistics Execution Warehouse Management Activities Transfers Define Movement Types. Position on your warehouse, movement type 309. Select 309 and choose Copy As. (Repeat for movement type 944.) Field Name or Data Type Movement Type Manual TO Creation Not Allowed TO Item can be confirmed immediately Propose Confirmation Values 943; 944 Not selected Selected Selected

3-1-2 SAP Reference IMG Logistics Execution Warehouse Management Interfaces Inventory Management Define Posting Changes. Select New Entries. Field Name or Data Type Warehouse WM Movement Type IM Movement Type Stock Category Source Stock Category Destination Warehouse WM Movement Type IM Movement Type Stock Category Source Stock Category Destination 3-2 Field Name or Data Type
(C) SAP AG LO530 8-25

Values 1## 943 343 S (Blank) 1## 944 344 (Blank) S

Values

Warehouse Number Movement Type Material Plant

1## 944 T-BW-## 1000

3-2-1 Favorites Warehouse Management Stock Overview 3-2-2 Logistics Logistics Execution Internal Whse Processes Post Change Bin Stock Other Posting Changes. Select a quant and choose Post Change. 3-2-3 Display Log to see the TO that was created. 3-2-4 Favorites Warehouse Management Stock Overview

(C) SAP AG

LO530 8-26

Production Integration

Contents:
WM Staging Customizing Production Integration Kanban Replenishment

SAP AG 1999

(C) SAP AG

LO530 9-1

Production Integration: Course Overview Diagram

Course Overview Logistics Execution Overview Warehouse Management Structure Master Data Integration with Inventory Management Goods Receipt

1 2 3 4 5 6
Conclusion

Goods Issue Posting Changes

Prod uc o ProductiontiIntegration n Integ ratio n

7 8 9 10 11 12

Delivery Processing Replenishment Physical Inventory

13

SAP AG 1999

(C) SAP AG

LO530 9-2

Production Integration: Business Scenario

In your company, you replenish the production area from the warehouse. You need to examine different possibilities for accomplishing this replenishment.

SAP AG 1999

(C) SAP AG

LO530 9-3

Production Integration: Topic Objectives

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

Describe the replenishment strategy for WM Staging Set up master data and customizing for processing WM Staging

SAP AG 1999

(C) SAP AG

LO530 9-4

Scenario for WM Staging

WAREHOUSE STRUCTURE
R E C E I V I N G

0xx

902

003

002

001

005
100

PRODUCTION LINES -->

901

916
Warehouse 100 Storage Location 0100
SAP AG 1999

Shipping

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

(C) SAP AG

LO530 9-5

Production Order Process Review

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

SAP AG 1999

The production order process has many steps from the creation of the production order through the putaway of the finished assembly or sub-assembly. Typically, many people are involved in the process. It is possible to automate several of these steps. It is important that the companys business process is understood so that the appropriate steps are automated.

(C) SAP AG

LO530 9-6

Production Supply Area

PSA = WM001

Work Center B3 Work Center A1 Production Supply Area

Work Center Master

SAP AG 1999

Storage Location

Production supply areas (PSAs) are used for material replenishment and are situated directly on the shop floor in the production department. The PSA groups work centers near production storage bins based on the material staging methods. The PSA is defined for the storage location and assigned in the work center master data.

(C) SAP AG

LO530 9-7

Control Cycle

Material Plant

Supply Area

Control Data: Number of KANBANs Kanban Quantity

Destination Data: Warehouse Number Storage Type Storage Bin Staging Indicator Storing Position

SAP AG 1999

The control cycle record is made up of the plant, production supply area and material and determines for the WM-PP interface the production storage bin and the type of material staging that is used. The production storage bin is defined by the whole key: warehouse number, storage type and bin. You can also define a control cycle without specifying the material. This general entry is valid for all materials in the supply area for which no control cycle has been defined. The control cycle establishes how and to where a material is to be supplied within a production supply area.

(C) SAP AG

LO530 9-8

Material Staging Indicators

Production Order

Pick Parts

Crate Parts

Release Order Parts

Manual Staging
SAP AG 1999

Pick parts are provided in the quantities requested as specified in the production order. These parts can be provided in a physical storage bin or in the dynamic storage bin for the Production Order. For this type of material staging, transfer requirements can be created: automatically when the production order is released manually. Crate parts are ordered manually when a crate is almost empty. For Release Order parts, the transfer quantity is calculated based on the planned quantities of components of selected, released orders. The stock situation in the production area and the replenishment storage types are included in this calculation. Set the indicator to Manual Staging if you want to handle the process manually.

(C) SAP AG

LO530 9-9

Production Storage Bins

PR Bin-1001

PO 6000378
A

A separate storage bin for production supply is defined for each material and control cycle.
SAP AG 1999

You can define the dynamic storage bin PRODUCTION ORDER in the control cycle for pick parts.

For production supply, you can define a storage bin as a physical or dynamic location. Production storage bins that are used for material staging are determined based on the control cycle.

(C) SAP AG

LO530 9-10

Material Supply

Transfer Requirement Production Order

Components

Transfer Order

Materials Staged

SAP AG 1999

Planning function The transfer requirement (TR) does not block materials, but notifies warehouse management that a particular material is needed on a certain date in a specified quantity at a specified production storage bin. Request for Material Staging Production workers request the needed materials with a transfer requirement. The TR can be created from within the Production Order function (Goto > WM Picklist or Functions > WM Material Staging > Proceed ) or from within Logistics Execution (Outbound Process > Goods Issue for Other Transactions > Prepare Production Supply > For Production Order/Crate Part/Release Order Part). Warehousing personnel transfer the material based on a transfer order created from the TR. The availability check in the production order ensures the availability of materials at the storage area level. You can control automatic transfer order creation within the Production Scheduling Profile in Customizing.

(C) SAP AG

LO530 9-11

Decreasing the Quantity during TO Creation

4711 / 300 lbs

You can only decrease the quantity for pick parts. When you create a TO, the available quantity is calculated and the TO quantity is optionally decreased by the same amount.
TRANSFER ORDER Mat: 4711 600 lbs From: 001 01-01-01 To: 100 01/01

01/01

TRANSFER REQUIREMENT

Mat: 4711 900 lbs To: 100 01/01

Examples: - minimum use - material change - workstation change - previous overdelivery

SAP AG 1999

The unrestricted available quantity can be established dynamically. This later point in time allows more current information than if it were determined at the time of the request for materials. In the Production Scheduler Profile, you can set the indicator Confirmed Quantity for TR Creation. Setting this indicator will cause the TR to be created for the confirmed quantity instead of the requirement quantity of the component.

(C) SAP AG

LO530 9-12

Supply to Production Storage Bins

4711 / 300 lbs 4711 / 300 lbs

01/01

Storage

TRANSFER ORDER Material: 4711 600 lbs From: To: 001 01-01-01 811 01/01

WP 1

SAP AG 1999

A transfer order is created based upon the transfer requirement. The transfer order: determines the source bin based upon the strategy used to select the needed material is the actual instruction for the physical stock transfer moves the quantities in the system determines whether the quantity will be decreased (optional). After the TO is confirmed, the material becomes available at the destination bin.

(C) SAP AG

LO530 9-13

Usage posting

4711 / 300 lbs 4711 / 300 klgs

01/01

03/01

05/01

PSA1

PSA2

PSA3

WS 1

WS 2 WS 5 WS 6

WS 3

WS 4

SAP AG 1999

The final step in the material staging process is to post a goods issue for consumption. When a production order is completed, the materials have been removed from the production storage bins in the warehouse and the final product has been fully assembled, it is still necessary to balance the stock quantities in the IM and WM systems. You post the use of materials to the database either by "backflushing" with the completion confirmation or directly in the IM system. This posting is necessary to reduce the stock quantities in the production storage bins of the WM and IM systems. Since the transfer requirement for the production order was created far in advance of this goods issue posting, the materials are delivered in a timely manner to the production storage bins. You post the actual goods issue in the IM system (or in the PP system) after the product has been assembled in production. Since the production storage bin was noted in the production order when it was released, the material usage posting reduces the quantity in the production bins (in the system) and no further action is required in the WM system.

(C) SAP AG

LO530 9-14

System Definition
Define a Production Storage Type Create the Production Supply Area Define a Movement Type Assign Movement Type to the Production Storage Type Create the Production Storage Bins Define the Control Cycle Records Warehouse Management Customizing Activate the PP Switch Customize the Production Profile (Optionally)

SAP AG 1999

The physical production bins are defined in the Warehouse Management system. If all materials are staged as pick parts to a collective storage bin or dynamic coordinates are used, generally, only one material-independent control cycle per production supply area is sufficient.

(C) SAP AG

LO530 9-15

Distinctive Features for Repetitive Orders

No defined release time. The request is made from the removal list.

The usage posting is based on the release of the current bill of materials.

There are no dynamic coordinates.

SAP AG 1999

The high flexibility of the processes necessary to pick materials directly for serial orders requires extremely complex organization. The timing of material supply should be organized as follows: Early enough to carry out the physical supply using the WM system on time Late enough to avoid charges that are relevant to material supply (location, material, etc.) Especially when many changes must be made, it is recommended that you use crate parts as a material staging type.

(C) SAP AG

LO530 9-16

Standard Reports

Material Stock at Production Storage Bin

List of Control Cycles WM-PP Evaluation Report (Storage Bin Selection)

Analysis of Production Orders

SAP AG 1999

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

(C) SAP AG

LO530 9-17

Production Integration: Topic Objectives

At the conclusion of this topic, you will be able to: Describe the replenishment strategy for KANBAN within WM Set up master data and customizing for KANBAN processing in WM

SAP AG 1999

(C) SAP AG

LO530 9-18

Scenario for KANBAN Replenishment

KANBAN 1 Storage Location 0001 KANBAN 2

R E C E I V I N G

WAREHOUSE STRUCTURE
003 902
007 Warehouse 100 - Storage Location 0100

901

150

002

001

200

005 916
Shipping

SAP AG 1999

In this example, KANBANs are managed in their own storage location that is not WM-relevant. The KANBAN storage location must be different from the WM storage location from which the replenishment materials are taken.

(C) SAP AG

LO530 9-19

KANBAN

Demand

Supply

full full

full

Material

empty

KANBANCard

SAP AG 1999

With KANBAN, the material flow is organized by containers that are located at the work centers. They contain the amount of material that the workers need at their work center for a certain period of time. If the container is emptied by the demand, KANBAN replenishment is triggered. Supply source for the requested material can be another production unit, the warehouse, or a vendor. Since the container arrives at the work center, the worker can help himself from further containers. The goal is that production controls the production process itself and the effort for the worker in production is reduced. Stocks and lead times can be reduced by the self controlling and replenishment created close to actual requests (replenishment is started when the material is needed). Material is staged in production where it is needed. It is available in small buffers; material staging doesnt have to be planned. Instead, material is replaced very soon by KANBAN. As of release 4.5A, Warehouse Management (WM) is interfaced to the SAP Production Planning (PP) application component to replenish kanban stock to production supply areas. Prior to Release 4.5A, replenishment from a WM warehouse could only take place as a stock transfer between two storage locations. This stock transfer had to be started in Inventory Management. With the new process you can initiate replenishment directly from within WM.

(C) SAP AG

LO530 9-20

KANBAN Replenishment Strategy with WM

Warehouse

Set KANBAN to empty and create a Transfer Requirement in WM

Automatic or manual creation of a Transfer Order in WM

Empty Confirmation of the TO sets KANBAN to full and posts stock transfer to KANBAN storage location

full

SAP AG 1999

To provide KANBAN replenishment from a WM warehouse to production, you need to carry out the following steps: 1. Request the KANBAN replenishment either manually using the PP system or by scanning a bar code. Set the container to empty. The system records the request in the form of a transfer requirement (TR). The WM transfer requirement number appears in the KANBAN itself. From the KANBAN information window, you can display the corresponding transfer requirement from within the WM system. 2. Process the transfer requirement (TR) like any normal TR in WM by creating a transfer order (TO) for it. 3. Confirm the transfer order. Once you confirm the TO, the system updates the KANBAN in PP by setting the status to "full". As an alternative to confirming the TO, the confirmation of the replenishment can take place in the KANBAN. If you set the status of the KANBAN to "full", the system confirms the corresponding TO automatically. 4. After the replenishment has been processed in WM, a stock transfer results between the WM storage location and the KANBAN storage location. The system can process this stock transfer automatically when the TO is confirmed or you can process it manually by selecting PostChange Inventory management Stor.loc. to stor.loc. from the WM menu bar.

(C) SAP AG

LO530 9-21

Setup of KANBAN Replenishment

Define KANBAN Storage location (must be different from WM storage location)

Define the replenishment strategy

Specify the replenishment strategy and replenishment storage location in the KANBAN control cycle Set up replenishment movement type Set up storage location control

SAP AG 1999

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

(C) SAP AG

LO530 9-22

Production Integration: Summary

You are now able to: Describe the replenishment strategy for KANBAN within WM Set up master data and customizing for KANBAN processing in WM Describe the replenishment strategy for WM Staging Set up master data and customizing for processing WM Staging

SAP AG 1999

(C) SAP AG

LO530 9-23

Production Integration - Exercises 1

Unit: Production Integration Topic: Setting Up Production
At the conclusion of this exercise, you will be able to: Set up master data and customizing for WM Staging.

In your company, you have materials that are supplied to the production line in three different ways. First, you have crate materials that are supplied to the line based on container quantities. When one container becomes empty, that container is refilled and returned to the line based on a visual cue. These parts are typically parts that are common to multiple assemblies and are often large, bulky materials. Second, you have materials that are picked specifically for a production order, depending on the product that you are building. These parts are typically more specialized, and may be high dollar inventory items that are supplied to the line only when you are building a particular product. Third, you have materials that are supplied to the line for several production orders at a time. These are typically floor stock type items like nuts, bolts and screws, where you want to have 3-6 months of inventory available on the production floor. In this exercise, you will define the process for production orders such that all three material staging types are utilized. Engineering has designed a new flywheel for an existing pump. It is your responsibility to set up the production line for this new material so that the new, revised pump can be manufactured on your existing production line. You want to set this material up to be stored at point of use on the production floor and replenished based on a visual cue. You will verify the supply area, create a control cycle for the new material, enter a production order for the new pump, stage all the required materials, complete the production order and stock the finished assembly. This exercise covers the full circle of events required for managing the entire production process. Keep in mind that the steps in this exercise are not necessarily all performed by warehouse personnel, but are generally performed by a combination of production, planning and warehouse personnel. As you work through the exercise, think about which personnel in your company might perform each task.

PART ONE:
(C) SAP AG LO530 9-24

2-1

In Part One of this exercise, you will set up the production supply process, verifying the configuration and creating or changing the necessary master data. 2-1-1 Look at the Production Supply Area PVB 1310## in the Warehouse Master Data. Which Storage Location is assigned to your supply area? _______ 2-1-2 The production supply area is linked in Production Planning to the Work Center. Go to the work center T-WM## Basic Data view and verify that the correct supply area is assigned. 2-1-3 Use Field Level help to determine where in R/3, other than WM, is the Supply Area Used? _______________________________________ 2-1-4 Display the Control Cycle and verify the following: In order to have pick parts staged by production order, there must be one material-independent control cycle. Does this control cycle exist? _____ For this material-independent control cycle, to which bin will the materials be delivered ? _________________ 2-1-5 There is a release order part T-BW07-## in your process. Verify the control cycle for this material. What is the staging indicator for this control cycle record? __________________ 2-1-6 The new flywheel, T-BW01-##, is a crate part and is delivered to the production line based on a visual cue. There are 2 Containers, each holding 20 flywheels. The container is stored on the production floor in storage type 100 in a bin labeled PROD-1310. When one container becomes empty, it is replenished from the warehouse. Based on this information, create a control cycle record for this flywheel. Field Name or Data Type No. of Kanbans Kanban Quantity Warehouse Number Storage Type Storage Bin Staging Indicator Why cant you use a dynamic bin for a crate part? ________________ _________________________________________________________ Values

2-1-7 For this control cycle, you must request the first lot of materials to be delivered to the floor. Perform WM Staging on the crate part to create a Transfer Requirement in the warehouse. (Note: Typically, this task is
(C) SAP AG LO530 9-25

performed by either a production worker or a material handler in production when the materials need to be refilled. Since this is a new control cycle, this first request is to get the process started.) Create the TR, but do not process it yet. Transfer Requirement _____________ PART TWO: 3-1 Changing responsibilities, you now represent the Production Planner in your company. Engineering has determined that you are ready to build the pump with the new flywheel. You need to create and release a production order, and have the materials moved from the warehouse to support production. 3-1-1 Using the data provided below, create, release and stage a production order. Which materials are selected for staging? __________________________________________________ Why arent the rest of the materials selected for staging? ______________ ____________________________________________________________

Production Order Order Type: PP01

Production Plant: 1000

Material T-MS-##

Quantity 10

Delivery Date One week from Today

Production Order Number:

_______________________

(C) SAP AG

LO530 9-26

4-1

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

5-1

Confirming the Production Order confirms that the work has been completed and signals that you have consumed the materials from the production floor. It is possible to have the system complete the finished assembly at this point, delivering the finished pump to the warehouse for put away into stock. In our test system, the confirmation of the Production Order will consume all of the materials required to build the assembly and perform the receipt of the finished assembly into stock. 5-1-1 In PP, perform the Completion Confirmation. How many goods issues were processed? _______ Failed? ________ 5-1-2 Recheck your stock for the materials T-BW01-##, T-BW03-## and T-MS##. Material T-BW01-## T-BW03-## T-MS-## StorType Available For Putaway Pick Quantity

(C) SAP AG

LO530 9-27

6-1

The Production Order accomplished two functions: consumed the components and received the finished pump into the warehouse. Now you must process the finished pump to the fixed bin in the warehouse. 6-1-1 Process the finished pump to its final destination bin. Which storage type/bin is suggested by the TO you created? ________________________ Where does the system get that information? ________________________ 6-1-2 6-1-3 Material T-MS-## Confirm the TO. Check stock on the T-MS-##. StorType Available For Putaway Pick Quantity

(C) SAP AG

LO530 9-28

Production Integration - Solutions 1

Unit: Production Integration Topic: Setting up Production

2-1 2-1-1 Logistics Logistics Execution Master Data Warehouse Production Supply Production Supply Area Display. Enter Plant 1000. Select the line for PVB 1310##, and choose Details. Your storage location 01## is assigned to your supply area. 2-1-2 Logistics Production Master Data Work Centers Work Center Display. Enter Plant 1000 and Work Center T-WM## and choose Basic Data. 2-1-3 Position on the field: Supply Area and Choose F1. The Supply Area is used in Kanban and in Warehouse Management. 2-1-4 Logistics Logistics Execution Master Data Warehouse Production Supply Control Cycle Production Supply Display. Field Name or Data Type Material Plant Supply Area Values Blank 1000 PVB 1310##

Yes, there is a control cycle record that is material-independent for pick parts. Materials will be delivered to Storage Type 100 and will be stored in a Dynamic Bin. 2-1-5 Logistics Logistics Execution Master Data Warehouse Production Supply Control Cycle Production Supply Display. Field Name or Data Type Material Plant Supply Area Values T-BW07-## 1000 PVB 1310##

The Staging Indicator for the control cycle for T-BW07-## is 3. 2-1-6 Logistics Logistics Execution Master Data Warehouse Production Supply Control Cycle Production Supply Create.

(C) SAP AG

LO530 9-29

Field Name or Data Type Material Plant Supply Area No. of Kanbans Kanban Quantity Warehouse Number Storage Type Storage Bin Staging Indicator

Values T-BW01-## 1000 PVB 1310## 2 20 1## 100 PROD-1310 2

You cant use a dynamic bin for a Crate Part because Crate Parts are delivered to the production area without regard to the production order number. 2-1-7 Logistics Logistics Execution Outbound Process Goods Issue for Other Transactions Prepare Production Supply For Crate Part. Enter the material T-BW01-## and select WM Material Staging. Select WM Material Staging again to create the TR and Save. Select Logistics Logistics Execution Internal Whse Processes Transfer Requirement Display By Requirement. Use Requirement Type P and enter to see the Transfer Requirement that was created by the WM Staging Process. (Do not process it yet.) PART TWO: 3-1 3-1-1 Logistics Production Production Control Order Create With Material. Field Name or Data Type Material Production Plant Order Type Total quantity Finish Values T-MS-## 1000 PP01 10 One week from today

Functions Release. Goto WM PickList Proceed. Select WM Material Staging. Save the order. The pick parts are selected for staging. The other materials are crate or release order parts and are not relevant for staging here. 4-1 4-1-1 Logistics Logistics Execution Internal Whse Processes Transfer Requirement Display By Requirement. Use Requirement Type P and enter. You should see two TRs available for processing.
(C) SAP AG LO530 9-30

4-1-2 Select the TRs from the list display above and choose TO in Background. 4-1-3 Favorites Confirm TO, One Step 4-1-4 Favorites Warehouse Management Stock Overview 5-1 5-1-1 Logistics Production Production Control Confirmation Enter For Order. Enter the Production Order Number. Select Final Confirmation and save. If your setup is correct, you should have 8 transactions processed; 0 failed. 5-1-2 Favorites Warehouse Management Stock Overview 6-1 6-1-1 Favorites Display TR by Storage Type. Select the TR and convert it into a TO. The system should select your fixed bin Box-## as the final destination because that is what you have identified in the Material Master at the storage type level. 6-1-2 Favorites Confirm TO, One Step 6-1-3 Favorites Warehouse Management Stock Overview

(C) SAP AG

LO530 9-31

Production Integration - Exercises

Unit: Production Integration Topic: Kanban (Optional Exercise)

At the conclusion of this exercise, you will be able to: Set up master data and customizing for KANBAN

In one area of your company, you are running a separate storage location using KANBAN as your method of resupply to production. You need to configure the system so that materials can be supplied from your warehouse to the production area using KANBAN methodology. In this exercise, you will configure the system and create the master data required for utilizing the KANBAN functionality. This exercise covers the full circle of events required for managing the entire production process. Keep in mind that the steps in this exercise are not necessarily all performed by warehouse personnel, but are generally performed by a combination of production, planning and warehouse personnel. As you work through the exercise, consider which personnel in your company might perform each task. 1-1 First you must define the control between Production and the Warehouse. In Production Customizing, verify the Stock Transfer Strategy. 1-1-1 In the Stock Transfer Strategy, verify that for plant 1200, strategy 0006 is configured as Stock Transfer with transfer requirement. The TO should be automatically created and no difference indicator is set. Be sure that From Different Plant movement is indicated. 1-1-2 The Storage Type for Kanban for your warehouse has been defined as 150. In WM Customizing under Interfaces Define KANBAN, you must verify the assignment of WM movement type 350 to storage type 150 in your warehouse. 1-1-3 Verify the Storage Location Control from your warehouse to Plant 1200 Storage Location PL06. What movement type will be run in the background at the time of the TO Confirmation? ________________ 1-2 Create the master data. 1-2-1 Create material K-1## to use for the KANBAN test by copying the material R-1270C. You need to create this material for both Plant 1200, Sloc PL06 and for Plant 1000, Warehouse 1##. The Industry Sector is M, and the Material Type is Raw Material.

(C) SAP AG

LO530 9-32

Plant 1200 and storage location PL06, create the Basic Data, Purchasing, General Plant Data/Storage 1 and 2, and Accounting views with reference to R1270C, Plant 1200, Storage Location PL06. In Plant 1000, Storage Location 01##, create Purchasing, General Plant Data/Storage 1 and 2, Warehouse Management 1 & 2 and the Accounting 1 view with reference to R-1270C, Plant 1200, Storage Location PL06. In the Warehouse Management 2 View, set the pallet size to 80 pieces on an Industrial pallet. 1-2-2 Create a Bin KANBAN in Storage Type 150, Storage Section 001.

(C) SAP AG

LO530 9-33

1-2-3 Create a Control Cycle Record in PP for this new material K-1##, Plant 1200 and Supply Area PVB_PC. Choose the Classic KANBAN and copy from R-1270C, Plant 1200 and Supply Area PVB_PC. In the Stock Transfer tab of the control cycle record, establish the Issuing Plant as 1000, Storage Location 01##, use your warehouse number 1##, Storage Type 150 and Storage Bin KANBAN. 1-2-4 Do a goods receipt without reference to bring in 800 pieces of the K-1## material into Plant 1000, Storage Location 01##. Create a Transfer Order with reference to the Transfer Requirement that is created by the 501 transaction, and remember to confirm the Transfer Order. 1-3 Test the connection 1-3-1 Call the Kanban Board Demand Source View and for Plant 1200 and supply area PVB_PC. 1-3-2 Choose one of the boxes that represent the KANBAN and set it to empty. Is a TR created? Select the box to see the TR that is created. 1-3-3 Set status to Full. 1-3-4 Display the stock overview from Inventory Management for the K-1## so you can see inventory for Plants 1000 and 1200. ge Location tricted Use Stock

Be sure to leave the plant field blank so you can overview the inventory balances for both plants.

(C) SAP AG

LO530 9-34

Production Integration - Solutions 2

Unit: Production Integration Topic: Kanban

1-1 1-1-1 Tools AcceleratedSAP Customizing Edit Project Goto SAP Reference IMG Production Kanban Replenishment Strategies Define Stock Transfer Strategies. Select Plant 1200, Replenishment Strategy 0006. Select From diff plnt and verify Immed TO Crtn is selected. 1-1-2 SAP Reference IMG Logistics Execution Warehouse Management Interfaces Define Kanban Movement Type Assignment to Kanban Supply. Position on your warehouse and storage type 150. 1-1-3 SAP Reference IMG Logistics Execution Warehouse Management Interfaces Define Kanban Storage Location Control in Warehouse Mgmt. The movement type 301 (Plant to Plant) is the movement type that will be executed upon TO Confirmation. 1-2 1-2-1 Logistics Logistics Execution Master Data Material Material Create Immediately Field Name or Data Type Material Industry Sector Material Type Copy From Select Views Values K-1## Mechanical Engineering Raw material R-1270C Basic Data, Purchasing, General Plant 1 and 2, Accounting 1 1200 PL06 1200 PL06

Plant Storage Location Copy from Plant Copy from Storage Location

(C) SAP AG

LO530 9-35

Create the material a second time with the following data: Field Name or Data Type Material Industry Sector Material Type Copy From Select Views K-1## Mechanical Engineering Raw material R-1270C Purchasing, General Plant 1 and 2, Warehouse Management 1 and 2, Accounting 1 1000 01## 1## 1200 PL06 Values

Plant Storage Location Warehouse Copy from Plant Copy from Storage Location Warehouse Management 2 View: Field Name or Data Type LE Quantity UN SUT

Values 80 PC IP

1-2-2 Logistics Logistics Execution Master Data Warehouse Storage Bin Create Manually Field Name or Data Type Warehouse Storage Type Storage Bin Storage Section Values 1## 150 KANBAN 001

(C) SAP AG

LO530 9-36

1-2-3 Logistics Production KANBAN Control Cycle Create Field Name or Data Type Material Plant Supply Area Classic KANBAN Copy from Material Plant Supply Area Select the Stock Transfer Tab: Field Name or Data Type Issuing Plant Storage Location Warehouse Number Storage Type Storage Bin Values 1000 01## 1## 150 KANBAN Values K-1## 1200 PVB_PC Select R-1270C 1200 PVB_PC

1-2-4 Logistics Logistics Execution Inbound Process Goods Receipt for Purchase Order, Order, Other Goods Receipt for Other Activities Field Name or Data Type Movement Type Plant Storage Location Material Number Quantity Values 501 1000 01## K-1## 800

Still under Inbound Process, select Putaway Create Transfer Order By Material Document. Generate the TO in the background. Save. Choose Transfer Order Confirm Input List. Save.

(C) SAP AG

LO530 9-37

1-3 1-3-1 Logistics Production KANBAN Control Kanban Board Demand Source View Field Name or Data Type Plant Supply Area 1-3-2 Values 1200 PVB_PC

Logistics Logistics Execution Internal Whse Processes Bins and Stock Display Total Stock per Material (Inventory Management)

(C) SAP AG

LO530 9-38

Delivery Processing

Contents:
Processing Delivery Notes Collective Processing Two-Step Picking

SAP AG 1999

(C) SAP AG

LO530 10-1

Delivery Processing: Course Overview Diagram

Course Overview Logistics Execution Overview Warehouse Management Structure Master Data Integration with Inventory Management Goods Receipt

1 2 3 4 5 6
Conclusion

Goods Issue Posting Changes Production Integration

Deliv Deliveryery Proc Processing essin g

7 8 9 10 11 12

Replenishment Physical Inventory

13

SAP AG 1999

(C) SAP AG

LO530 10-2

Delivery Processing: Business Scenario

In this unit, you will examine different possibilities for processing delivery notes and customizing the delivery function in the warehouse. You will create delivery notes and process them through shipping and post goods issue, using different techniques.

SAP AG 1999

(C) SAP AG

LO530 10-3

Delivery Processing: Objectives

At the conclusion of this unit, you will be able to: Demonstrate the shipping process in WM

SAP AG 1999

(C) SAP AG

LO530 10-4

Overview of Shipping Process and WM

Create sales order Create delivery
SD Pick list

Picking technique

Create transfer order Confirm transfer order

no

Print TO (or multiple TO list)

Picking from fixed bin

Differences
yes yes Post goods issue
SAP AG 1999

?
no

Copy transfer data to the delivery

Depending upon the picking technique, materials are picked from the fixed bin (with a picking list from the Sales and Distribution system) or a transfer order for a delivery is created. If picking takes place without a transfer order, the WM status in the delivery is set to N (not relevant for Warehouse Management). If picking takes place with a transfer order, the WM status in the delivery is set to A (relevant for Warehouse Management). The WM status is updated after each step during transfer order processing.

(C) SAP AG

LO530 10-5

Picking Process
Dely 80004092
Transfer Order

4711 Mat. 4711 50

50

Updates Delivery

916 0080004092 4711 50 Post Goods Issue

SAP AG 1999

Relieves Inventory

When the picking technique is set to Random Picking, the system will always expect a Transfer Order to be created for the delivery item. Upon confirmation, the materials are delivered to the interim storage type and bin defined for the movement type (601). Upon post goods issue, the materials are relieved from the interim storage type and bin, and the order is available for billing.

(C) SAP AG

LO530 10-6

Transfer Order for Outbound Delivery

Transfer Order Delivery

Source Dest

Item 1 Item 2 Item 3

Source Dest Source Dest Source Dest Source Dest Source Dest
GI- Area

SAP AG 1999

No transfer requirement is created for a delivery; instead, a transfer order is created on the basis of the delivery. If the requirement quantity of a delivery item is to be removed from several storage bins, several transfer order items are created for the delivery item.

(C) SAP AG

LO530 10-7

Creation of Groups in the Delivery Monitor

Printout without Group Delivery Monitor: Creation of single TOs
Transfer Transfer auftrag auftrag Transfer order zur LF 4711 zur Transfer LF 4725 order LF 4720 zur for Del 4813

Selection and assignment of groups Del 4711 Del 4720 Del 4725 Del 4813

Release/ Printout with group Collective Processing: Creation of TOs for the group Picking list Group #23

Group #23

Interface LSR IDoc Release Group #23

SAP AG 1999

With the Delivery Monitor, dialog processing of inbound and outbound deliveries is possible with SAP's Enjoy initiative. The delivery data is organized in process-oriented groups. Foreground navigation is possible with buttons and tabstrip controls. A status overview gives you a summary of the delivery document's processing status. You can switch from display to change mode without having to exit the application. It is possible to combine multiple delivery notes together to pick as a group, or have a Transfer Order for each delivery note.

(C) SAP AG

LO530 10-8

Two-Step Picking
Stock removal based on materials Delivery based distribution

1st Step: Picking Group

Del 4813
Mat.01 3 Ea Mat.02 4 Ea

2nd step: Allocation

Picking TO for a Group Item 1 Mat.01 10 Ea Srce 001 Dest 200

TO #250
Mat.01 3 Ea Mat.02 4 Ea

TO #251
Mat.01 4 Ea Mat.02 5 Ea

Del 4814
Mat.01 4 Ea Mat.02 5 Ea

Srce: Dest:

200 916

Del 4815
Mat.01 3 Ea Mat.02 1 Ea

Srce: Dest:

200 916

TO #252
Mat.01 3 Ea Mat.02 1 Ea

Item 2 Mat.02

10 Ea

Srce 001 Dest 200

Srce: Dest:

200 916

SAP AG 1999

Two-Step Picking is an extension of multiple processing. For Two-Step picking, the picking process is divided into 2 steps: First Step: - The entire quantity of needed materials is picked to fill requests (for example, several deliveries) for the materials. Second Step: - The total quantity is divided and allocated to match the individual requirements. The goal is to go once to a bin to pull materials, even if the requirements are from different deliveries. Two-Step picking was developed using the group number as a basis. The group number serves as a means to combine several deliveries. Additionally, you can carry out other functions associated with the group number, such as printing and confirmation.

(C) SAP AG

LO530 10-9

Transfer Order Splitting

DELIVERY
Not fulfilled

Transfer Order

Split Criteria?

Fulfilled
Transfer Order Transfer Order Transfer Order

SAP AG 1999

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

(C) SAP AG

LO530 10-10

Creation of TOs: WMTA

Condition Records Processing time Automatic TO-Creation

Delivery

Job

RLAUTA20 BatchProgram Transaction: Messages from Deliveries

Shp. point. 1200 Shipping Condition immediately

Del Type LF Shipping Condition Immediately

Transaction

Message WMTA

Immediate TO-Creation
immediately

Direct Processing with delivery creation

SAP AG 1999

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

(C) SAP AG

LO530 10-11

Delivery Processing: Summary

You are now able to: Demonstrate the shipping process in WM

SAP AG 1999

(C) SAP AG

LO530 10-12

Delivery Processing - Exercises 1

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

(C) SAP AG

LO530 10-13

1-1-3 Still using the delivery monitor before confirming the TO, check the WM Status and Picking Status within the Delivery Note to see how the system keeps track of what processes are going on within the warehouse. WM Status _______ Picking Status _______ 1-1-4 Confirm the Transfer Order. (Leave Adopt Pick Quantity field blank.) 1-1-5 Check the Stock Overview for material T-MS-##. ial -## ype able utaway Quantity

1-2

Posting goods issue is the step that actually removes the inventory from your warehouse, creating the material and accounting documents in IM. Following this step, the Sales Order is available for billing. 1-2-1 From the Delivery Monitor, Post Goods Issue against the delivery note. Before you exit the Delivery Monitor, verify that the Pick Quantity is now updated and recheck the WM and Picking Status. WM Status _______ Picking Status _______

1-2-2 Look at the Document Flow. What is the material document number that was created for the goods issue? _________________________ 1-2-3 Check the stock overview to verify that inventory has been updated. ial -## ype able utaway Quantity

(C) SAP AG

LO530 10-14

Delivery Processing - Solutions 1

Unit: Delivery Processing Topic: Processing Delivery Notes in WM

1-1 1-1-1 Logistics Logistics Execution Outbound Process Goods Issue for Outbound Delivery Outbound Delivery Create Single Document With Reference to Sales Order. Select Add to Favorites then Change Favorites to change the text. Use Shipping Point 1000. Set the selection date out one week. Search for the order number by selecting the match code and choose A:Sales document according to customer PO number. Search for PO of your group number. Select the item and enter. Select the Picking tab to overview picking. Save the delivery. 1-1-2 Logistics Logistics Execution Outbound Process Goods Issue for Outbound Delivery Outbound Delivery Lists and Logs Outbound Delivery Monitor. Select Add to Favorites then Change Favorites to change the text. Select For Picking. Field Name or Data Type Shipping Point/receiving pt Only WM Picking Warehouse Number Values 1000 Select 1##

Execute. Select your delivery and choose TO in backgr. Leave the Adopt Pick Quantity field blank. 1-1-3 From the Outbound Delivery Monitor select For confirmatn. Enter Shipping Point 1000 and execute. Select the line and choose Subsequent Display outbound deliveries to see the WM and Picking status. 1-1-4 Still in Outbound Deliveries for Confirmation, select your delivery and choose Confirm in Background. Leave the Adopt Pick Quantity field blank. 1-1-5 Favorites Warehouse Management Stock Overview.

(C) SAP AG

LO530 10-15

1-2 1-2-1 Favorites Delivery Monitor For goods issue. Shipping Point 1000. Select your delivery note and choose Post Goods Issue. Enter todays date as the actual goods issue date. Select the line and choose Subsequent Display outbound deliveries to see the pick quantity and the WM and Picking status settings. 1-2-2 From the delivery display, choose Environment Document Flow. 1-2-3 Favorites Warehouse Management Stock Overview.

(C) SAP AG

LO530 10-16

Delivery Processing - Exercises 2

Unit: Delivery Processing Topic: Two-Step Picking (Optional Exercise)
At the conclusion of this exercise, you will be able to: Process multiple delivery requirements with 2-step picking

When picking for multiple sales orders, it is your goal to go once to a bin to pick the required materials, regardless of the number of sales order requirements you may have. It is your process to pick all materials required for shipment within a given period, then deliver those materials to an area to be sorted for shipment against the specific requirement. Therefore, you move material from the warehouse to an intermediate area, then from that area to the shipping area where requirements are matched to the specific delivery note. 2-1 In this scenario, you have three sales orders with products due to ship for various combinations of materials that are stored in your warehouse. You want to process these deliveries using two-step picking functionality, where you want to go once to a bin to pick all of the requirements, then redistribute those materials back to the original delivery notes for shipping. 2-1-1 Go to customizing interfaces in Warehouse Management to verify that your warehouse is relevant for 2-Step Picking. What is the WM movement type configured for removal 2-Step Picking? __________ 2-1-2 Look at WM Movement Type 850 in your warehouse. What is the Destination Storage Type for movement type 850? _________ 2-1-3 Look at Storage Type 200 in your warehouse. Is this an Interim Storage Type? ____________ How can you tell? _____________________________________________ 2-1-4 Now look at the Storage Type Search Sequence. Is there a special entry in your warehouse for 2-step picking? ______ 2-2 In this exercise, you are processing delivery notes that are required for service parts for your pump. Your order processing department has received orders that are due for processing today. The delivery notes have already been created for you. You have 3 delivery notes with various combinations of materials T-BW04-## and TBW05-##. 2-2-1 In the first step, you must group together the deliveries and assign a group number for further processing. Use the grouping functionality in the Outbound Delivery process to group together the deliveries. Group Number _______ 2-2-2 Create the first TO that will move the material from the warehouse to the I intermediate area Storage Type 200.
(C) SAP AG LO530 10-17

2-2-3 Confirm your Transfer Order. 2-2-4 Check your inventory for the T-BW04-## and T-BW05-## materials. Your inventory for the deliveries now shows in storage type 200. Material T-BW04-## StorType Available For Putaway Pick Quantity

T-BW05-##

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

2-2-7 Post Goods Issue for your delivery notes. 2-2-8 Check your inventory balances. Material T-BW04-## T-BW05-## StorType Available For Putaway Pick Quantity

(C) SAP AG

LO530 10-18

Delivery Processing - Solutions 2

Unit: Delivery Processing Topic: Two-Step Picking

2-1 2-1-1 Tools AcceleratedSAP Customizing Edit Project Goto SAP Reference IMG Logistics Execution Warehouse Management Interfaces Shipping Two-Step Picking. Two step picking is relevant for your warehouse and is determined by material. The WM movement type for removal is 850. 2-1-2 SAP Reference IMG Logistics Execution Warehouse Management Activities Transfers Define Movement Types. Position on your warehouse 1## and Movement Type 850. Select the line and choose Details. The destination storage type for movement type 850 is Storage Type 200. 2-1-3 SAP Reference IMG Logistics Execution Warehouse Management Master Data Define Storage Type. Position on your warehouse 1## and Storage Type 200. Storage Type 200 is not an interim storage type because it has a placement and a removal strategy. In both cases, the strategy is R, which will cause the system to use the Reference Number as the dynamic coordinate. 2-1-4 SAP Reference IMG Logistics Execution Warehouse Management Strategies Activate Storage Type Search Determine Search Sequence. Position on your warehouse 1##. Activity 2 is relevant only for 2-Step Picking.

(C) SAP AG

LO530 10-19

2-2 2-2-1 Favorites Delivery Monitor. Choose Picking. Use shipping pt/receiving pt 1000. Select Only WM Picking for your warehouse. Select your deliveries, then choose Subsequent Functions Group Create with WM Reference. Field Name or Data Type Group Type Description Warehouse Number Values K Group ## 1##

2-2-2 Logistics Logistics Execution Outbound Process Goods Issue for Outbound Delivery Picking Create Transfer Order Via 2-Step Picking. Enter your Group Number and choose enter then Generate TO. 2-2-3 Favorites Confirm TO, One Step 2-2-4 Favorites Warehouse Management Stock Overview 2-2-5 Logistics Logistics Execution Outbound Process Goods Issue for Outbound Delivery Picking Wave Picks 2-Step Picking Analysis. Enter your Group Number that was previously assigned and execute. Select the Allocation line, then choose Create TOs. Enter your Warehouse 1## and Group Number, set control to Background, and choose Start Multiple Processing. Select your Group Number and Display Details. Return to the analysis and Refresh Data. You should now show all Green lights! 2-2-6 Favorites Warehouse Management Stock Overview 2-2-7 Favorites Delivery Monitor For Goods Issue. Select only your deliveries and Post Goods Issue, using todays date. 2-2-8 Favorites Warehouse Management Stock Overview

(C) SAP AG

LO530 10-20

Replenishment

Contents:
Various Replenishment Techniques

SAP AG 1999

(C) SAP AG

LO530 11-1

Replenishment: Course Overview Diagram

Course Overview Logistics Execution Overview Warehouse Management Structure Master Data Integration with Inventory Management Goods Receipt

1 2 3 4 5 6
Conclusion

Goods Issue Posting Changes Production Integration Delivery Processing

ReReplenishment pleni shme nt

7 8 9 10 11 12

Physical Inventory

13

SAP AG 1999

(C) SAP AG

LO530 11-2

Replenishment: Business Scenario

In this area of the warehouse, you store materials in fixed bins to be picked for delivery from this storage type and then replenished from other areas of the warehouse. You would like to experiment with different approaches to this strategy and automate the process as much as possible.

SAP AG 1999

(C) SAP AG

LO530 11-3

Replenishment: Objectives

At the conclusion of this unit, you will be able to: Execute two methods of fixed bin replenishment Explain different possibilities to execute replenishment within the warehouse

SAP AG 1999

(C) SAP AG

LO530 11-4

Replenishment for Fixed Storage Bins

SAP AG 1999

When you use fixed bin replenishment, the system calculates the replenishment quantities that are necessary to maintain appropriate stock levels based on information that you provide. You first must define a WM movement type for storage types that use the fixed bin stock placement strategy. In the standard WM system, movement type 319 was created for this purpose. Link the movement type with the fixed bin storage type. You must maintain the material master record for the fixed bin storage type. You must enter data in the Storage bin, Maximum bin quantity, Minimum bin quantity and Replenishment Quantity data fields at the Storage Type level in the Warehouse Management view of the Material Master record.

(C) SAP AG

LO530 11-5

Replenishment for Fixed Bins: Batch Report

min. storage bin quantity 3 ctn replenishment quantity 8 ctn

Transfer requirement

R LL N A C H 1

Transfer order

SAP AG 1999

You can process a report (RLLNACH1) in batch to replenish fixed bin storage types at regular predefined time intervals or online as required. When you run RLLLNACH1, the system will recommend a Transfer Requirement if your stock falls below the minimum bin quantity you have defined. The Transfer Requirement will be recommended in increments of the Replenishment Quantity up to the Maximum Bin Quantity. Afterwards, you process the transfer requirements to create transfer orders according to the normal procedures you would use to carry out stock movements within WM.

(C) SAP AG

LO530 11-6

Planned Replenishment

Firma Firma Firma Rechnung Firma Rechnung Firma Rechnung Firma Rechnung

Firma Firma Firma Rechnung Firma Rechnung Firma Rechnung Firma Rechnung

Rechnung Rechnung

Rechnung Rechnung

Planned Replenishment

RLLNACH2

SAP AG 1999

This report creates transfer requirements for fixed bin replenishment where stock removals are allowed to take place before put aways because of the respective deliveries. This report takes into account, in addition to the stock situation, planned stock removals and replenishment transfer requirements. Using this report, you can create all the replenishment transfer requirements for supplying the fixed bins based on delivery requirements and rounded to the replenishment quantity. Use this report to create the transfer requirement which can then be processed according to normal procedures you use to carry out stock movements within WM.

(C) SAP AG

LO530 11-7

Creating TOs Automatically for TRs

IM Document

PP System

Manual

Transfer requirement
Batch

RLAUTA10 Transfer order

SAP AG 1999

Mail

For certain classes of transfer requirements, it is possible to set up the Warehouse Management system to create transfer orders automatically as a background process. You set up the system to carry out this process by setting an indicator in each movement type. When you create a transfer requirement manually, the system copies this indicator into the transfer requirement header. To activate the automatic creation of transfer orders for these transfer requirements you must start the report RLAUTA10 as a batch job. For this process you define a variant for each different indicator. This makes it possible for you to define different starting times and time spans to repeat each task periodically

(C) SAP AG

LO530 11-8

Replenishing Random Bin Management: TR/TO

4.6C

min. storage bin quantity 6 ctn replenishment quantity 8 ctn

H4 AC LN RL

Transfer requirement

SAP AG 1999

As of this release, you can take care of internal warehouse replinishment at the time of transfer order confirmation. This replenishment can be triggered for random bin managed storage types and for fixed bin storage types. For random bin managed storage types, you define the minimum bin quantity for the storage type view in material master as minimum quantity in the storage type. For random bin management replenishment, you can use the report RLLNACH4 to create a TR. This processing is similar to the processing of RLLNACH1 and RLLNACH2. Else, you have the possibility to use immediate TO creation for replenishing the whole storage type.

(C) SAP AG

LO530 11-9

Or: TO imme cre d atio iate n

Transfer order

Replenishment: Summary

You are now able to: Execute two methods of fixed bin replenishment Explain different possibilities to execute replenishment within the warehouse

SAP AG 1999

(C) SAP AG

LO530 11-10

Replenishment - Exercises 1
Unit: Replenishment Topic: Replenishment for Fixed Bins
At the conclusion of this exercise, you will be able to: Create the appropriate master data to run fixed bin replenishment Run the fixed bin replenishment process in the warehouse You have a process in the warehouse where you establish a minimum quantity, together with a maximum and a replenishment quantity for a fixed bin. You would like to run a replenishment program that would, when your minimum is exceeded, create a requirement to replenish your bins based on the replenishment quantity up to the maximum. 1-1 Set up the appropriate data for fixed bin replenishment, using minimum, maximum and replenishment data. Run the replenishment report and process the resulting TRs to restock the bins. 1-1-1 Storage type 005 is your fixed bin storage type. Verify the WM movement type for replenishment is assigned to storage type 005. Movement Type _____ 1-1-2 The material master T-BW20-## already exists in the system, but the replenishment data has not been defined. Create the material T-BW20-## for your warehouse number 1## and storage type 005. Assign the material to fixed bin 400-##. When your inventory dips below 100, you would like to replenish the stock in increments of your pallet size, up to 5 full pallets. Also make sure that the material is set up to be picked from the fixed bin. 1-1-3 Check your stock situation for T-BW20-##. rial 20-## 1-1-4 Create the TR by running Replenishment for Fixed Bins (Acc to Bin Situation). 1-1-5 Convert your TR to a TO and confirm the TO. ype able utaway Quantity

(C) SAP AG

LO530 11-11

1-1-6 Recheck your stock situation for T-BW20-##. ial 20-## ype able utaway Quantity

(C) SAP AG

LO530 11-12

Replenishment - Solutions 1
Unit: Replenishment Topic: Replenishment for Fixed Bins

1-1 1-1-1 SAP Reference IMG Logistics Execution Warehouse Management Activities Transfers Define Stock Transfers and Replenishment Control Define Replenishment Control for Storage Type.. (4.6B Menu Path: SAP Reference IMG Logistics Execution Warehouse Management Activities Transfers Define Stock Transfers and Replenishment Control Assign replenishment mvt type to stor. Type.) Position on your warehouse and storage type 005. Movement type 320 is assigned as the replenishment movement type for storage type 005. 1-1-2 Logistics Logistics Execution Internal Whse Processes Master Data Material Material Create Immediately. Field Name or Data Type Material View Warehouse Stock Removal Storage Type Storage Bin Maximum Quantity Minimum Quantity Replenishment Quantity Values T-BW20-## Warehouse Management 1 & 2 1## FIX 005 400-## 500 100 100

1-1-3 Favorites Warehouse Management Stock Overview

(C) SAP AG

LO530 11-13

1-1-4 Logistics Logistics Execution Internal Whse Processes Stock Transfer Planning of Replenishments Acc to Bin Situation Field Name or Data Type Plant Storage Location Warehouse number Storage Type Requirement Type Requirement Tracking Number Values 1000 01## 1## 005 N FB##

Execute. Select the line and choose Material Staging. Save. 1-1-5 Favorites Display Transfer Requirements by Storage Type. Select the TR and choose TO in backgr. Favorites Confirm TO, One Step 1-1-6 Favorites Warehouse Management Stock Overview

(C) SAP AG

LO530 11-14

Replenishment - Exercises 2
Unit: Replenishment Topic: Planning Replenishment
At the conclusion of this exercise, you will be able to: Create the appropriate master data to run planning replenishment Run the planning replenishment in the warehouse In this scenario, you want the system to consider TRs open for replenishment to the fixed bin as supply and delivery notes as demand. You want to create Transfer Requirements to cover deliveries for a period, in increments of the replenishment quantity.

2-1

In planning replenishment, you want to cover tomorrows demand in your fixed bin area. 2-1-1 Change the material master view for storage type 005, material T-BW21##. Assign the bin 401-##. Modify the material if necessary to have a replenishment quantity equal to the pallet size. No minimum or maximum quantity is required. 2-1-2 There are 3 sales orders that exist for T-BW21-##. Create delivery notes for them. Search for the sales orders using the Purchase Order LO530-##. You will need to set the Selection Date out one week to select the deliveries. Also, choose the three sales orders with the highest sales order numbers.

2-1-3 Check the Delivery Monitor. How many are scheduled for delivery? ____ 2-1-4 Run Planning Replenishment. 2-1-5 How many TRs are created by the replenishment program? _____ What is the quantity of the TR generated by the planning replenishment program? _______

(C) SAP AG

LO530 11-15

Replenishment - Solutions 2
Unit: Replenishment Topic: Planning Replenishment

2-1 2-1-1 Logistics Logistics Execution Internal Whse Processes Master Data Material Material Create Immediately. Field Name or Data Type Material View Warehouse Storage Type Storage Bin Replenishment Quantity Minimum Quantity Maximum Quantity Values T-BW21-## Warehouse Management 2 1## 005 401-## 100 100 500

2-1-2 Favorites Create Delivery. Enter Shipping Point 1000. Select the matchcode and search for sales orders with the Purchase Order Number LO530-##. Create a delivery note for each sales order. 2-1-3 Favorites Delivery Monitor For Picking. Enter Shipping Point 1000 and your warehouse number. Choose Item View to see the quantity on the deliveries. 2-1-4 Logistics Logistics Execution Internal Whse Processes Stock Transfer Planning of Replenishments Based Upon Outbound Deliveries to be Selected. Field Name or Data Type Plant Storage Location Warehouse Storage Type Requirement Type Requirement Tracking Number Values 1000 01## 1## 005 N PL##

2-1-5 One TR for a quantity of 100 is created for the replenishment.

(C) SAP AG

LO530 11-16

Physical Inventory

Contents:
Inventory Methods The Physical Inventory Process

SAP AG 1999

(C) SAP AG

LO530 12-1

Physical Inventory: Course Overview Diagram

Course Overview Logistics Execution Overview Warehouse Management Structure Master Data Integration with Inventory Management Goods Receipt

1 2 3 4 5 6
Conclusion

Goods Issue Posting Changes Production Integration Delivery Processing Replenishment

Phys i Inventory Physicalcal Inven tory

7 8 9 10 11 12

13

SAP AG 1999

(C) SAP AG

LO530 12-2

Physical Inventory: Business Scenario

You must decide which inventory method your company will use. You must configure and test at least one inventory method.

SAP AG 1999

(C) SAP AG

LO530 12-3

Physical Inventory: Objectives

At the conclusion of this unit, you will be able to: Execute the basic physical inventory process in the warehouse Customize settings in the warehouse to allow different inventory methods

SAP AG 1999

(C) SAP AG

LO530 12-4

Inventory Methods

Inventory Methods
Annual inventory Continuous inventory Cycle counting Inventory Based on First Placement Zero Stock Check Inventory sampling procedure

SAP AG 1999

The description of the inventory methods refer only to the technical prerequisites that are necessary to set up and carry out the different inventory methods. These notes can be used to supplement and check the company-specific inventory requirements. The inventory method is assigned at the storage type level with the exception of cycle counting. All of the inventory methods are executed within the storage type. If cycle counting is the chosen inventory method, it can be run above the storage type level, provided all storage types involved have cycle count assigned as the inventory method.

(C) SAP AG

LO530 12-5

Inventory Process
Inventory planning Inventory planning Create system inventory record Create system inventory record Activate system Activate system inventory record inventory record Print out Print out inventory list inventory list Count, weigh, Count, weigh, Count, measure, estimate measure, estimate measure, Take physical Take physical inventory count inventory count Start differences // Start differences control list control list Clear differences in the Warehouse Clear differences in the Warehouse Management system Management system Clear differences in the Inventory Clear differences in the Inventory Management system Management system
SAP AG 1999

Storage bins Storage bins blocked blocked

123

Storage bins Storage bins unblocked unblocked

The process for taking inventory is the same, whether you are doing annual or continuous inventory. When you take annual inventory, the entire storage type is blocked for movement and all bins are counted. With continuous inventory and cycle counting, only the affected bins are blocked for movement. When you select continuous inventory, you are counting the bin and you must count all quants within that bin. When you select cycle count, you are counting the material, wherever that material is within the storage type(s) selected. In the case of mixed storage, all quants within the bin must be counted. When you clear differences in WM, any discrepant amount is written to the interim storage type for differences and the bins are unblocked. You then clear differences in IM to adjust the inventory balance and create the accounting document. Warehouse inventory data is year-dependent and must be reset at the beginning of a new inventory period. The program RLREOLPQ is provided for this purpose.

(C) SAP AG

LO530 12-6

Enjoy in Warehouse Management Inventory

Table controls replace step loops

SAP AG 1999

With the Enjoy release, the physical inventory was changed to Table Controls. Effected transactions are Create System Inventory Record, Change System Inventory Record,Display System Inventory Record, Enter Inventory Count,Change Inventory Count, and Display Inventory Count. For the transactions Create, Change, and Display Inventory Record, the processing logic is such that with the creation of an inventory record, new items are visible on the same screen where you enter the new item. The transactions Create, Change, and Display Inventory Record use per default the latest recount version. If you wish to work with a prior version, you must specify it. There is one central function module L_COUNT_DATA_PROCESS that ensures the necessary data verification. This is also used for IDOC processing instead of processing the inventory screens in the background.

(C) SAP AG

LO530 12-7

Continuous Inventory

Only the selected bins are blocked Inventory Document x x x

SAP AG 1999

With the continuous inventory method you take inventory on a selected number of storage bins in a storage type. The inventory can take place at any time during the fiscal year. Compared to the annual inventory count at the end of the fiscal year, the continuous inventory has some advantages: The effort for the inventory is not concentrated on a certain day or days but is distributed over the entire year. This can result in a better leveling of the workload in the warehouse. Inventory can be conducted during slow times in the warehouse, for example, during summer vacation. With a reduction in the effort required at the end of the fiscal year, a company can respond better to problems that might arise during an end-of-year closing. When an inventory is carried out on a continuous basis, up-to-date information about the correspondence between the warehouse stock and the book inventory is always available..

(C) SAP AG

LO530 12-8

Cycle Counting

Goal: Goal:

Count Material Count Material Based on Cycle Based on Cycle Count Indicator Count Indicator

Continue normal WM inventory process:

Print Print

A Items 12 times // year A Items 12 times year B Items 6 times // year B Items 6 times year C Items 1 time // year C Items 1 time year

Count Count

Record results Record results Assign CC Indicator: RMCBIN00

Recount Recount

Clear differences Clear differences

SAP AG 1999

Cycle counting in the Warehouse Management system makes it possible for you to separate materials into classes (such as A, B, C) and take inventory for each class separately several times throughout the year. You define the count frequency by class. It is possible to cycle count within a storage type or count across storage types as long as all storage types are set with cycle counting as the inventory method. In the Inventory Management IMG under Physical Inventory, you define the cycle counting indicators and the number of times per year that inventory counts are to be taken for each class. Then you enter the cycle count indicator (A, B, C) into the Storage View of the material master record for each material that will be counted using the cycle counting task. This can be set manually or by using the report RMCBIN00.

(C) SAP AG

LO530 12-9

Cycle Counting Time Interval

Starting the selection report for a time interval

February
Mat. 4711

March
Mat. 4711

April
Mat. 4711

May
Mat. 4711

10 - 24 March
Mat. 4712 Mat. 4713 Mat. 4712

Selection displays: Selection displays: displays:

123

Stor.Bin Mat Stor.Bin Mat Stor.Bin

Comments Comments

Material 4711 12 times // year Material 4711 12 times year Material 4712 6 times // year Material 4712 6 times year Material 4713 1 time // year Material 4713 1 time year

01-07-03 4711 to be counted 01-07-03 4711 to be counted 01-07-04 4711 to be counted 01-07-04 4711 to be counted 01-06-09 4713 overdue (was not 01-06-09 4713 overdue (was not counted in February) counted in February) February)

SAP AG 1999

The system searches for all materials in the storage type(s) that are marked for cycle counting within a given date interval and creates a list of storage bins for which inventory is to be taken.

(C) SAP AG

LO530 12-10

Inventory Based on First Stock Placement

Create TO

Inventory already taken at destination bin? no Print TO with inventory data Storage bin Inventory data Book quantity = Counted quantity Confirm TO

123

1 2 3
Difference in interim storage area Clear differences in Inventory Management

SAP AG 1999

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

(C) SAP AG

LO530 12-11

Zero Stock Check

Create transfer order Print TO Note: Check bin Physical stock removal Confirm TO Verify zero stock check Bin occupied Enter counted qty Zero stock check message returned Correct qty in source bin (diff. calculated automatically) Post difference in Inventory Management
SAP AG 1999

Bin empty?

Bin empty Zero stock check confirmed

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

(C) SAP AG

LO530 12-12

Zero Stock Check as Inventory

Confirm TO Zero stock check confirmed or requested manually

Bin occupied Enter counted quantity

Bin empty Zero stock check returned confirmed

Correct qty in source bin (diff. calculated automatically) Inventory data Bin Quant Inventory data Bin

SAP AG 1999

The zero stock check can also be defined as an inventory method for the storage type. In this case, an inventory record is made each time a zero stock check is carried out, not only in the case of a difference. When the transfer order is confirmed, the system updates the physical inventory data for the bin. Zero stock check is not applicable for all storage types (ie mixed storage).

(C) SAP AG

LO530 12-13

Inventory Sampling Procedure

Random selection Stock mgmt unit to be counted Strata ..... Complete-count area

Physical inventory documents

Inventory
1000 2317 L-Bin A L-Bin B

Updating

Actual value of selected stock management units Estimation Estimated actual value of all stock units Comparison Book value of all stock units

Extrapolation

SAP AG 1999

The inventory can be carried out with periodic sampling (at a given date) or continuous (over an extended period of time). A stock management unit is the Storage Type. You must assign stock levels by assigning which stock management units are to be included in the sampling. The Stock Population is divided in a complete count area and a sampling area, which is divided into several classes. (This is done automatically.) After the stratification, the Random Selection is generated (the system determines the stock management units to be counted for each stratum). The inventory documents are created. These documents are required for all stock management units drawn during random selection and for all that were allocated to the complete-count areas. You then count, weight, and measure your stocks. Carry out the update: During this process, the system reads the count results and reads any changed book inventory balances and book values. Extrapolation: The system estimates the physical inventory value on the basis of the latest counting results. The inventory is successful if the total physical inventory value deviates from the book inventory value by no more than 2% (in the standard system).

(C) SAP AG

LO530 12-14

Physical Inventory: Summary

You are now able to: Execute the basic physical inventory process in the warehouse Customize settings in the warehouse to allow different inventory methods

SAP AG 1999

(C) SAP AG

LO530 12-15

Physical Inventory Processes with WM - Exercises

Unit: Physical Inventory Processes with WM Topic: Continuous Inventory and Cycle Counting
At the conclusion of this exercise, you will be able to: Customize settings in the warehouse to allow different inventory methods Execute the basic physical inventory process in the warehouse You must decide which inventory method your company will use in the warehouse. You must configure and test at least one inventory method. With the continuous inventory method, you take inventory on a selected number of storage bins in a storage type at any time during the fiscal year. Cycle Counting in the warehouse allows you to separate materials into classes (such as A, B, C) and take inventory for each class separately several times throughout the year. With either inventory method, the basic inventory process remains the same once the inventory document is created. In this exercise, you can choose whether you would like to process an inventory using Continuous or Cycle Count as the inventory method. 1-1 You must make the appropriate entry in customizing to run the inventory method of your choice. 1-1-1 Remember that the inventory method is set in customizing at the storage type level. Decide whether you want to use Continuous or Cycle Count as your inventory method and set the method for storage type 002 appropriately. 1-1-2 If you chose Continuous as your inventory method, proceed to step 1-2. 1-1-3 If you chose Cycle Count as your inventory method, proceed to step 1-3.

(C) SAP AG

LO530 12-16

1-2

Continuous Inventory 1-2-1 Create an inventory document for continuous inventory in storage type 002. Select some empty bins and select at least one bin that contains a material. When you go to create the inventory document, all of the bins are initially selected. Choose Edit Deselect All, then choose the bins you wish to include in your inventory document.

1-2-2 Activate the document immediately. Inventory document ____________ 1-2-3 Print the inventory document. 1-2-4 Enter the results of the count. You can enter any quantities you like. If you enter a 0 quantity, be sure to select the Zero Count indicator. 1-2-5 Initiate a recount document. 1-2-6 Enter the results of the recount. 1-2-7 Look in the Information System for Warehouse Management and run the Differences List. Modify the report to show the Goods Receipt Date, Count Date, Total Stock, and Counted Quantity. Save your changes as a variant (Group-##). 1-2-8 Clear differences in the Warehouse Management system. Note the items that are to be cleared. Check the stock overview for one of the materials. Has the inventory balance been updated? Material StorType 002 999 Total 1-2-9 Clear differences in Inventory Management. Material document number: _________________. Select the material document to view the transaction. 1-2-10 Display again the stock overview for one of the materials to verify the inventory balance has now been updated and your 999 storage type is clear. Material StorType 002 Available For Putaway Pick Quantity Available For Putaway Pick Quantity

(C) SAP AG

LO530 12-17

1-3

Cycle Count 1-3-1 The cycle count indicator is set in the storage view of the material master. Run the CC Indicator Report to see the system recommendations for this indicator. Choose your area to analyze (Plant 1000) and look at all stock materials. Under Key Figures, choose Consumption/Usage and set the period to cover the last 3 months. You can override the CC Percentages that are set in customizing if you select the Change CC Percentages box (Note: this does NOT change customizing settings!). Under processing, select Display list first. At the end of the report you will find a summary. Note the breakdown of ABC indicators: ndicator A B C D 1-3-2 Look at the storage location view for the material T-BW02-##. What is the Cycle Count Indicator for this material? ____________ What does the CC fixed indicate? _________________________________ 1-3-3 Create a Cycle Count worksheet. If you are using a 4.6C System, you may choose to create the document by material or by quant. If you generate the inventory by quant, enter a range of materials from T-BW-## to T-BW99##. DeSelect all, then select 2 or 3 materials to count. Activate the document immediately. Document Number: ________________ When you go to create the inventory document, all of the bins are initially selected. Choose Edit Deselect All, then choose the bins you wish to include in your inventory document. rials Inventories ts

1-3-4 Print the inventory document. 1-3-5 Enter the results of the count. You can enter any quantities you like. If you enter a 0 quantity, be sure to select the Zero Count indicator. 1-3-6 Initiate a recount document. 1-3-7 Enter the results of the recount. 1-3-8 Look in the Information System for Warehouse Management and run the Differences List. Modify the report to show the Goods Receipt Date, Count Date Total Stock and Counted Quantity. Save your changes as a variant (Group-##).

(C) SAP AG

LO530 12-18

1-3-9 Clear differences in the Warehouse Management system. Note the items that are to be cleared. Check the stock overview for one of the materials. Has the inventory balance been updated? 1-3-10 Clear differences in Inventory Management. Material document number: _________________. Select the material document to view the transaction. 1-3-11 Display again the stock overview for one of the materials to verify the inventory balance has now been updated and your 999 storage type is clear. Material StorType Available For Putaway Pick Quantity

(C) SAP AG

LO530 12-19

Physical Inventory Processes with WM - Solutions

Unit: Physical Inventory Processes with WM Topic: Continuous Inventory and Cycle Counting

1-1 1-1-1 Tools Accelerated SAP Customizing Edit Project Goto SAP Reference IMG Logistics Execution Warehouse Management Activities Physical Inventory Define Types per Storage Type Position on your warehouse 1## and storage type 002. If you choose to use the Continuous Inventory, set the inventory method to PZ. If you choose to use Cycle Counting, set the inventory method to ST and set the indicator for Cycle Count. 1-2 1-2-1 Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Physical Inventory Document Create Continuous Inventory Field Name or Data Type Warehouse Number Storage Type Count Date Only bins not yet counted 1-2-2 1-2-3 Values 1## 002 Todays Date Selected

Edit Deselect all. Manually choose a few bins then select Physical Inventory Document Activate. Save. Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Physical Inventory Document Print Whse Inventory List. System Services Output Controller. Execute. Select the report and choose Display.

1-2-4

Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Physical Inventory Document Count Results Enter. Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Physical Inventory Document Count Results Recount.

1-2-5

(C) SAP AG

LO530 12-20

1-2-6

Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Physical Inventory Document Count Results Enter. Logistics Logistics Execution Information System Warehouse Physical Inventory With bin Inventory Management Different List of Open Inventory Documents. Execute the report. Choose the Current Display Variant. Identify the fields you wish to add to the report, then select the arrow Show selected fields. Choose the Save Display Variant icon to save your changes. Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Clear Differences Warehouse Management Display List. Select the lines to be cleared and choose Clear. When you check the stock balance (Favorites Warehouse Management Stock Overview), you will notice that the inventory balance has not yet been updated. You can see that the bin is no longer blocked and the quantity at the bin is corrected, but there is an offsetting entry in the 999 Differences Storage Type. Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Clear Differences Inventory Management. Enter the storage type to clear (999) and execute. Select the line and choose clear.

1-2-7

1-2-8

1-2-9

1-3 1-3-1 1-3-2 Logistics Materials Management Physical Inventory Special Procedures Cycle Counting Set CC Indicator Logistics Logistics Execution Master Data Material Material Display Display Current Status. Enter your material number, then select the Storage Location View for Plant 1000, Storage Location 01##. Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Physical Inventory Document Create Cycle Counting (Or choose Cycle Counting Quantwise). Execute the report, then Edit Deselect all. Select what you wish to count then Activate the document. Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Physical Inventory Document Print Whse Inventory List. System Services Output Controller. Execute. Select the report and choose Display. 1-3-5 Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Physical Inventory Document Count Results Enter. 1-3-6 Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Physical Inventory Document Count Results Recount.

1-3-3

1-3-4

(C) SAP AG

LO530 12-21

1-3-7 Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Physical Inventory Document Count Results Enter. 1-3-8 Logistics Logistics Execution Information System Warehouse Physical Inventory With bin Inventory Management Different List of Open Inventory Documents. Choose the Current Display Variant. Identify the fields you wish to add to the report, then select the arrow Show selected fields. Choose the Save Display Variant icon to save your changes. 1-3-9 Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Clear Differences Warehouse Management Display List. Select the lines to be cleared and choose Clear. The inventory balance has not yet been updated. You can see that the bin is no longer blocked and the quantity at the bin is corrected, but there is an offsetting entry in the 999 Differences Storage Type. 1-3-10 Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Clear Differences Inventory Management. Enter the storage type to clear (999) and execute. Select the line and choose clear.

(C) SAP AG

LO530 12-22

Conclusion

Course Overview Logistics Execution Overview Warehouse Management Structure Master Data Integration with Inventory Management Goods Receipt

1 2 3 4 5 6
Conclusion

Goods Issue Posting Changes Production Integration Delivery Processing Replenishment Physical Inventory

7 8 9 10 11 12

13

SAP AG 1999

(C) SAP AG

LO530 13-1

Course Objectives

You are now able to: Perform basic WM functions such as putaway and retrieval of stocks and process posting changes Customize the integration with Inventory Management, Production Planning and Delivery Processing Discuss customizing options and settings within the Warehouse Management system

SAP AG 1999

(C) SAP AG

LO530 13-2

Recommended Follow-up Courses

LO531 Additional Topics in Warehouse Management LO610 Shipping LO611 Transportation

SAP AG 1999

(C) SAP AG

LO530 13-3

Recommended Follow-up Activities

Go through the exercises using IDES data or your own data Read on-line documentation Read IMG documentation Read release notes

SAP AG 1999

(C) SAP AG

LO530 13-4

Warehouse Management Structure - Exercises 2

Unit: Warehouse Management Structure Topic: Storage Location Control
At the conclusion of this exercise, you will be able to: Copy an existing warehouse Create two Storage Locations and assign them to your warehouse. Set up a Storage Location as the standard. Set up the Storage Location to Storage Location Transfer Posting to be automatic when the Transfer Order confirmation for putaway occurs. Send a mail message to the person confirming the Transfer Order if an error should occur.

Your Delivery process is such that you want materials in the Goods Receipt area to be excluded from availability until they are put away to their final destination. Your delivery process considers materials in storage location 11## as available inventory. You want to create a new storage location 22## for your GR area. When you process materials from 22## to 11##, you want the storage location to storage location transfer to happen automatically upon Transfer Order confirmation. If an error should occur during the TO confirmation, you want to send a mail message to the person confirming the Transfer Order. 2-1 In your company, you want to structure your warehouse such that received materials are not available for sales order delivery notes until those materials are put away to their final storage type. Your delivery notes are created to ship from storage location 11##. You want to create a new warehouse (2##) with two storage locations (11## and 22##). 11## will be your standard storage location. 2-1-1 Copy warehouse 001 to your new warehouse 2##. 2-1-2 Create new Storage Locations 11## and 02## in Plant 1000. 2-1-3 Assign the new Storage Locations 11## and 22## to your Plant 1000, Warehouse 2##. 2-1-4 Establish Storage Location 11## as the standard storage location in Plant 1000 warehouse 2##. 2-1-5 In the same table, set up the new Storage Location 22## so it is not copied into the transfer requirement from the reference document. This allows the system to use the standard storage location (11##) when creating a Transfer Order from the Transfer Requirement. 2-1-6 Set up the Storage Location to Storage Location Transfer to be automatic upon confirmation of the Transfer Order used to move the goods from the
(C) SAP AG LO530 13-5

interim GR area Sloc 22## into the main warehouse (Sloc. 11##) using a 311 movement type. In addition, send a message to the person confirming the Transfer Order in case an error should occur. 2-1-7 You will need some storage bins in storage type 001. Create 2 storage bins (Bin 01, Bin 02) manually. These bins are bin type P1, storage section 001. 2-2 Now test your configuration settings. 2-2-1 Create the Warehouse Management view for material T-BW08-## for warehouse 2##. You want this material to be directed to high rack storage upon receipt. There is a placement indicator HRL defined for this purpose. Set the Stock Placement and Stock Removal indicators to HRL for plant 1000, warehouse 2##. 2-2-2 Create a Purchase Order for material T-BW08-##. Note: Leave the storage location field blank. Standard PO Vendor: 1000 C.E.B Berlin Purchasing Org.: 1000 IDES Deutschland Purchasing Grp.: 001 LO530 Company Code: 1000 SAP AG

Item Material 0001 T-BW08-##

Quantity 100

Dely Today

Plant 1000

Price 15 UNI

PO Number:

_______________________

2-2-3 Receive the goods into your warehouse and storage location 22## with reference to the above Purchase Order. Material Document ________________________

2-2-4 Display the Stock Overview for the material T-BW08-##.

(C) SAP AG

LO530 13-6

Plant 1000

Sloc 2200

StorType 902

Available

For Putaway

Pick Qty

2-2-5 Create a Transfer Order with reference to the above Transfer Requirement. TO Number __________ 2-2-6 Display the Stock Overviews for the material T-BW08-##. Plant 1000 1000 1000 Sloc 1100 1100 2200 StorType 001 902 902 Available For Putaway Pick Qty

2-2-7 Confirm the Transfer Order. 2-2-8 Display the Stock Overview for the material T-BW08-##. Plant 1000 Sloc 1100 StorType 001 Available For Putaway Pick Qty

(C) SAP AG

LO530 13-7

Warehouse Management Structure - Solutions

Unit: Warehouse Management Structure Topic: Storage Location Control

2-1 2-1-1 Tools Accelerated SAP Customizing Edit Project Goto SAP Reference IMG Enterprise Structure Definition Logistics Execution Define, copy, delete, check warehouse number Copy/Delete/Check Warehouse Number. Choose Copy org object. Field Name or Data Type From Warehouse Number To Warehouse Number Values 001 2##

2-1-2 SAP Reference IMG Enterprise Structure Definition Materials Management Maintain Storage Location. Enter the plant value below, then choose New Entries. Field Name or Data Type Plant Sloc Description Sloc Description Values 1000 11## Standard 22## GR Location

2-1-3 SAP Reference IMG Enterprise Structure Allocation Logistics Execution Assign warehouse number to plant/storage location. Select New Entries.

Field Name or Data Type Plant Storage Location

(C) SAP AG LO530 13-8

Values 1000 11##

Warehouse Plant Storage Location Warehouse

2## 1000 22## 2##

2-1-4 SAP Reference IMG Logistics Execution Warehouse Management Interfaces Inventory Management Define Storage Location Control Control of Assignment Plant/Stor.Loc Whse Number. Find your Storage Location 11## /Warehouse 2## combination and select Choose. Set the Standard stor loc field to On.

2-1-5 In the same table find the Storage Location 22## for your warehouse and set the Stor loc not in TR field to On.

2-1-6 SAP Reference IMG Logistics Execution Warehouse Management Interfaces Inventory Management Define Storage Location Control Stor Location Control in Warehouse Mgmt. Select New Entries. Field Name or Data Type Warehouse Storage Type Plant Storage Location Movement Type Combine post changes Mail Receiving Plant Values 2## 902 1000 22## 311 Blank A Blank

(C) SAP AG

LO530 13-9

2-1-7 Logistics Logistics Execution Master Data Warehouse Storage Bin Create Manually

Field Name or Data Type Warehouse Number Storage Type Storage Bin Storage Section Storage Bin Type

Values 2## 001 Bin-01; Bin-02 001 P1

2-2 2-2-1 Logistics Logistics Execution Master Data Material Material Create Immediately. Field Name or Data Type Material View Plant Warehouse Number Storage Type Stock Removal Stock Placement LE Quantity Unit SUT Values Warehouse Management 1 1000 2## Blank HRL HRL 50 PC IP

2-2-2 Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant known.

2-2-3 Logistics Logistics Execution Inbound Process Goods Receipt for Purchase Order, Order, Other Enter Goods Receipt for Purchase Order. Enter your purchase order and line item number. Select the Where tab, enter Storage Location 22##, Select OK and Save.

(C) SAP AG

LO530 13-10

2-2-4 Favorites Warehouse Management Stock Overview

2-2-5 Favorites Display Transfer Requirement By Material Field Name or Data Type Warehouse Material Plant Storage Location Values 1## T-BW08-## 1000 Blank

Select the appropriate TR line item and choose TO in foregr. Choose Putaway background and save the TO.

2-2-6 Favorites Total Stock per Material (Warehouse Management)

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

(C) SAP AG

LO530 13-11

Appendix

Contents:
This section contains supplementary material to be used as reference This material is not part of the standard course Therefore, the instructor might not cover this during the course presentation

SAP AG 1999

(C) SAP AG

LO530 14-1

Frequently-used Menu Paths

Activity Master Data
Create Storage Bin Logistics Logistics Execution Master Data Warehouse Storage Bin Create Manually Logistics Logistics Execution Master Data Warehouse Storage Bin Change Single Bin Logistics Logistics Execution Master Data Warehouse Storage Bin Display Logistics Logistics Execution Master Data Material Material Create Immediately Logistics Logistics Execution Master Data Material Material Change Immediately Logistics Logistics Execution Master Data Warehouse Production Supply Production Supply Area Create/ Change Logistics Logistics Execution Master Data Warehouse Production Supply Control Cycle Production Supply Create Logistics Logistics Execution Inbound Process Goods Receipt for Purchase Order, Order, Other Transactions Post Goods Receipt Enter Goods Receipt for Purchase Order Logistics Logistics Execution Inbound Process Goods Receipt for Purchase Order, Order, Other Transactions Post Goods Receipt Enter Goods Receipt for Production Order Logistics Logistics Execution Inbound Process Goods Receipt for Purchase Order, Order, Other Transactions Post Goods Receipt Enter Goods Receipt for Other Activities

Menu Path

Change Storage Bin

Display Storage Bin

Create Material Master

Change Material Master

Create Production Supply Area

Create Control Cycle

IM Processing
Goods Receipt for Purchase Order

Goods Receipt for Production Order

Goods Receipt without Reference

(C) SAP AG

LO530 14-2

Activity
Display Material Document

Menu Path
Logistics Logistics Execution Inbound Process Goods Receipt for Purchase Order, Order, Other Transactions Post Goods Receipt Display Material Document Logistics Logistics Execution Outbound Process Goods Receipt for Other Transactions Enter Goods Issue Logistics Logistics Execution Internal Whse Processes Bins and Stock Display Total Stock per Material (Inventory Management) Logistics Logistics Execution Internal Whse Processes Bins and Stock Display Total Stock per Material (Warehouse Management) Logistics Logistics Execution Outbound Process Goods Issue for Outbound Delivery Outbound Delivery Lists and Logs Outbound Delivery Monitor Logistics Logistics Execution Internal Whse Processes TransRqmt Display Logistics Logistics Execution Inbound Process Goods Receipt for Purchase Order, Order, Other Transactions Putaway Create Transfer Order Logistics Logistics Execution Inbound Process Goods Receipt for Purchase Order, Order, Other Transactions Putaway Confirm Transfer Order Single Item In one step Logistics Logistics Execution Internal Whse Processes Bins and Stock Display Total Stock per Material (Warehouse Management) Logistics Logistics Execution

Goods Issue for Cost Center

Display Stock Balances (IM Perspective)

Display Stock Balances (WM Perspective)

SD Processing
Delivery Monitor

WM Processing
Display Transfer Requirement Create TO following Goods Receipt process

Confirm TO

Display Stock Balances (WM Perspective)

Display Posting Change

(C) SAP AG LO530 14-3

Activity
Notice

Menu Path
Internal Whse Processes PostChange Via Inventory Management Posting Change Notice Display Single Document Logistics Logistics Execution Internal Whse Processes Bins and Stock Block Logistics Logistics Execution Master Data Warehouse Storage Bin Change Selectively Logistics Logistics Execution Internal Whse Processes Physical Inventory In Warehouse Management Physical Inventory Document Create Logistics Logistics Execution Information System Warehouse Physical Inventory With Bin Inventory Management (2nd one) Different List of Open Inventory Documents Logistics Logistics Execution Physical Inventory In Warehouse Management Clear Differences Warehouse Management Logistics Logistics Execution Physical Inventory In Warehouse Management Clear Differences Inventory Management

Block/Unblock Storage Bins

Mass Change Storage Bins

Create Physical Inventory Document

Differences List

Clear Differences (WM)

Clear Differences (IM)

(C) SAP AG

LO530 14-4

Warehouse Structure WAREHOUSE STRUCTURE

R E C E I V I N G

0xx

902

003

002

001

005 100 100 PRODUCTION LINES --> 901 916

STORAGE TYPES
001 002 003 005 0xx High-rack storage Shelf storage Open storage Fixed bin / Picking Temperature Controlled 901 902 916 100

SHIPPING

GR area from production GR area from external source Shipping area deliveries Production supply areas

SAP AG 1999

(C) SAP AG

LO530 14-5

Case Study

R/3 System Release 4.0

LO530 Warehouse Management

Case Study

(C) SAP AG

LO530 14-6

(C) SAP AG

LO530 14-7

Unit: Case Study

Objective
This case study has been created to challenge you and reinforce the concepts of the warehouse management application and customizing that you learned this week. The task is to customize a warehouse from a presented business scenario, then test the configuration using standard business processes. This week, you have been introduced to basic warehouse management processes within the R/3 system. At the beginning of the week, we looked at the application and focused on processing transactions in a warehouse that was already customized for this purpose. Later in the week, we made changes to that existing warehouse configuration and tested some transactions. Now, you will create a new warehouse using an existing warehouse structure as a model, and test your configuration using standard business transactions.

Business Scenario
Your company has decided to build a new warehouse because the existing warehouse has exceeded its capacity. This new warehouse will be used mainly for storage and shipping of finished pumps. Your team is responsible for creating and customizing this new warehouse so that standard business processes can be carried out using the SAP R/3 system. On the following pages, you are given the information required to set up the structure and master data for this new warehouse. A description of the business processes and a rough layout of the new warehouse are included. Read through this information carefully before you proceed to the activities that follow.

(C) SAP AG

LO530 16-8

Materials
You will store the materials T-MS-##, T-BW-##, and T-BW20-## in the new warehouse. The following chart describes the palletization data for these materials. Use this chart when you are ready to enter the material master data later in the exercise. Material T-MS-## T-BW-## T-BW20-## Palletization 15 10 15 10 25 UoM PC PC PC PC PC Pallet IP E1 IP E1 E1

Warehouse Structure
You will have three different types of storage: a fixed bin storage area for picking, a shelf storage area for smaller amounts and partials, and a pallet storage area for full pallets. You will need to create some bins in each of these storage types. You can create the bins manually or automatically for each storage type. In your shelf storage, you will create some bins with bin type E1 and some with bin type P1.

Processes
For each material listed above, you want to carry a minimum quantity in the fixed bin of at least 10 PC. Upon goods receipt of these materials, you want them first to be placed in pallet storage, then in the shelf area if the pallet area is full. The fixed bins will be resupplied from the shelf storage area, then the pallet area. You will then test your configuration with goods receipts and goods issue for delivery. It is your process that goods issue in small quantities (less than 100) should be issued from the fixed bin storage type, while large quantities (greater than 100) are picked from the other storage areas. One way to consider your processes is to think about each movement type and how the business process in your company works with each movement type in the warehouse. The following matrix example is intended to help you make the decisions that are relevant to each movement type. In the first column, you would list the movement types that are necessary to support your business processes. In the second column, you can decide whether you need for that movement type to create a TR, not create a TR, or cancel an existing TR. In the TO column, indicate whether you want to create the TO manually, create it in the background automatically or using a batch process, or do you want to have the IM transaction call the TO creation. In the next column, should confirmation happen automatically or is confirmation of the TO a required step. Printing options to consider include whether you want to print one item on a page, multiple items on a page, multiple processing, or no printing at all. Once you have completed the matrix, you have the information you need to customize the warehouse movements according to your business requirements. The first line is provided as an example. It is not
(C) SAP AG LO530 19-9

necessary for you to complete the table at this time. The table is provided here only as a reference.

(C) SAP AG

LO530 19-10

Reference Movement Type matrix: Movement Type Transfer Requirement Transfer Order Confirmation Printing (TO)

101 102 122 201 311 312 501 561 601

Create TR

Manual

Manual

Single item

(C) SAP AG

LO530 19-11

Warehouse Drawing

New Warehouse

Shelf

Pallet Storage

Goods

Fixed Bin Storage

Goods Issue

(C) SAP AG

LO530 19-12

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

Change unit of weight if desired from KG to LB

Allow Storage Unit management

(C) SAP AG

LO530 19-13

Number ranges definition: Verify that your new warehouse has an entry in each of the number range fields. If not, select the number ranges from your warehouse 1## and enter Copy As. NR-quant 01 NR-TO 01 NR-TR 01 NR-PstChg 01 NR-RefNo 01 NR-SU VA 01 2

Note: VA= Method of Assignment. Storage Type Definition: When you copied your warehouse, all of the standard storage types for warehouse 001 copied over to your new warehouse. You can create new storage types for the three storage areas defined in your business scenario, or you can use the standard storage types 002 for Shelf Storage, 005 for Fixed Bin Storage, 007 for Pallet Storage. If you create new storage types, use the standard storage type to copy from. In either case, verify that the storage types have the following characteristics:

(C) SAP AG

LO530 19-14

Shelf Storage SU Mgmt not active Stock placement control: Stock placement strategy: Next Empty Bin Stock placement requires confirmation SUT Check active Storage section check/search: Storage section determination and check Retain over deliveries Stock removal control: Stock removal strategy: FIFO Stock removal requires confirmation

Fixed Bin Storage SU Mgmt not active Stock placement control: Stock placement strategy: Fixed Bins Stock placement requires confirmation Addition to stock permitted Capacity check method based on maximum quantity per bin in storage type Stock removal control: Stock removal strategy: Fixed bin from material master Allow negative stock

Pallet Storage SU Mgmt not active Stock placement control: Stock placement strategy: Storage Unit Type Stock placement requires confirmation Mixed storage allowed without limitation Addition to stock permitted SUT Check active Stock removal control: Stock removal strategy: FIFO Complete removal active Return storage type 002

(C) SAP AG

LO530 19-15

Storage section definition: When you copied the warehouse, the storage sections were copied for the existing storage types. If you are not using the standard storage types, you need to create the following storage sections. If you are using the standard storage types, verify that the following sections exist: Shelf Storage: Fixed Bin: Pallet Storage: Storage sections Storage section Storage section 001 - Fast moving items 002 - Slow moving items 001 - Total Section. 001 Total Section

Strategies
Storage type indicators: Storage type indicators can be used to influence the storage type search sequence. If you would like to create a storage type indicator, make sure that you have an entry in the storage type search table for each storage type indicator that you create. Then tie that storage type indicator to the material master record for placement or removal. The material then will be directed to the storage type indicated in the storage type search table for that entry. Activate the new storage type search according to specifications described in the business process. Use the following table for reference.

(C) SAP AG

LO530 20-16

In the Storage Type Search table above, for warehouse 200, when material with no storage type indicator is received (activity E) into unrestricted use or quality stock, it is placed into storage type 001, then 002. On removal (activity A), materials with no storage type indicator in unrestricted use or quality stock is picked from storage type 001, then 002. If material with a storage type indicator of FIX comes in for placement (activity E), it will be placed first in storage type 007 (pallet storage), and then in storage type 002 (shelf storage). For removal, (activity A) those materials will be picked from storage type 005, unless the reference movement type = 320 (replenishment), in which case the material will be resupplied from storage type 002, then 007. Storage Section Indicators: Storage section indicators can also be added to the material master record to direct specific materials into specific sections. In this case, we have said that in the storage type for fixed bins and pallets, there is only one section. In the shelf storage area, we have defined two sections: fast and slow moving. Be sure that there is an entry in the storage section search table for a blank storage section indicator.

The Storage Section Search table above specifies that if material is received into storage type 002 with no storage section indicator, it will be directed first to storage section 001, then storage section 002. Materials with a storage section indicator of 001 will also be directed first into section 001, then 002. Materials with a storage section indicator of 002 will be directed first into section 002, then 001. Storage Unit Type definition: In the storage types for shelf storage and pallet storage, you indicated that the SUT Check was active. This means that the system will check the bin type against the storage unit type before allowing a putaway into a stoage bin. You will be working with pallet sizes E1 (Europallets) and IP (Industrial pallets). A Europallet will fit in either an E1 or P1 bin. The Industrial pallet will only fit in the P1 size bin. Under Definitions, you first verify that the bin types E1 and P1 and storage unit types E1 and IP exist. Under Assignments, specify that the storage unit types are allowed in the storage types for shelf and pallet storage.

(C) SAP AG

LO530 20-17

Storage Type Shelf (002) Pallet (007)

Storage Unit Type E1 E1 IP IP

Check the assignment of storage unit type to storage bin type. The chart below indicates that pallet size E1 can go into bin sizes E1 or P1, and that IP can only go into storage bin type P1. Storage Unit Type E1 IP Storage Bin Type E1 P1 P1

Activities
Movement Types
Verify WM movement types were copied for your warehouse number. There are no changes to make to the standard WM movement types at this time.

Inventory
Define the Inventory method for each storage type. Continuous Inventory method (PZ) will be used for all three storage types.

Interfaces
Inventory Management - Movement Types
Verify MM-WM Interface to inventory management. There are no changes to make to this table at this time. If you make any changes to this table based on the movement type matrix provided above, be sure to affect only your warehouse number.

(C) SAP AG

LO530 20-18

Master Data
Storage Bins

Storage Bin Definition: Storage bins will need to be created in all 3 storage types.
These bins can be created manually or generated automatically using a template. Shelf and Pallet Storage: Create according to the structure: St. Type Shelf Shelf Pallet Storage Section 001 002 001 Maximum Weight 1000 2000 2000 Bin Type E1 P1 P1 Bin Structure Begin End 01-01-01 01-05-05 02-01-01 02-05-05 A-01 A-10

BIN Fixed Bin Storage: FIX-1## FIX-2## FIX-3##

Material T-MS-## T-BW-## T-BW20-##

Max Qty 150 150 250

You will also need to create the pre-defined storage bins for the interim storage types.

Remember that these bins are master data and are created from the WM menu.
Add the material master warehouse view to the three materials you are testing with.

Use the information given to you in the business scenario to determine how to fill in the material master data below. Then, create the material master records/warehouse view as required for your new warehouse.

Warehouse 2## (Warehouse level data)

Material

Palletization (LE Quantity)

U N

SUT

Stock Removal

Stock Placement

Addn to Stock

T-MS-## T-BW-## T-BW20-##

Fixed Storage Area (Storage Type level data)

Material Storage Bin Minimum quantity Maximum quantity Control quantity Replenishment quantity

(C) SAP AG

LO530 20-19

T-MS-## T-BW-## T-BW20-##

Test your warehouse configuration

Goods Receipt
Because you are creating the new warehouse to off load inventory from your existing warehouse, you will be moving material from the old warehouse into the new one using movement type 311, Storage location to storage location. Transfer the following quantities of materials from storage location 01## to storage location 02##: Material T-MS-## T-BW-## Total 65 50 Industrial Pallets (IP) 3 pallets of 15 2 pallets of 15 Europallets (E1) 2 pallets of 10 2 pallets of 10

Goods Issue (Note: contact instructor if you are not familiar with the SD process)

Create a sales order for 5 pieces of T-BW20-##. Before saving the order, add storage location 02## to the line items shipping detail. Create a Delivery Note with reference to the Sales Order you created. Create a Transfer Order with reference to the delivery note. Was the quantity picked from your fixed bin picking area? If so, confirm the TO and post goods issue. (Note: remember that you can post the goods issue by putting a 2 in the Adopt pick qty field from the TO confirmation screen.) Customer Sales Org. Dist. Channel Division Stor. Location 1400 1000 10 00 02##

(C) SAP AG

LO530 20-20

OPTIONAL:

Additional set-up

Change the movement type 101 in the MM WM movement type table to create transfer orders automatically. Be sure to work only in your warehouse! (You will need to copy the entry provided for warehouse *** to your own warehouse number.) In addition, have a mail message sent to your user-id if there are any errors. Step 1: Copy the appropriate 101 entry in the MM-WM movement type table and set the field IM A. WM to

Step 2: Look at the Mail column and select the appropriate entry. (To verify that customizing, look under Activities Transfers Setup automatic TO creation for TRs and posting change notices.) Step 3: Test your configuration. Create a Purchase order for 50 pieces of T-BW20-## using the following data: Vendor 1000

Purchasing Org. Plant Stor. Location

1000 1000 02##

Purchasing Group 001

Step 4: Receive 10 pieces into your warehouse. Your TO should be created automatically and you will need to confirm it. Step 5: Create a pre-allocated stock entry for 10 pieces of the material. Step 6: Receive the remaining 40 pieces into your warehouse. (Your TO will not be created automatically and you will get an express message in your inbox describing the error).

Set-up a special movement indicator, so that a goods receipt (101) for material T-BW-## will be placed directly in Fixed bin storage (005). Change the MM-WM table so that a TR and a TO are not created for movement type 101. Again, please be sure to affect only your warehouse! Step 1: Create a special movement indicator in customizing (master data). Step 2: Create a new WM movement type. (Copy 101. Change the source storage type to 005 and Fixed Bin.) Step 3: Copy the appropriate 101 entry in the MM-WM table. Enter your warehouse number, the new special movement indicator, reference the new WM movement type you created to the 101 Reference movement type and remove the TR create flag.

(C) SAP AG

LO530 20-21

Step 4: You can tie the special movement indicator to the material master record for T-BW-##, or you can enter the special movement indicator at the time of the goods receipt by clicking on WM parameters. Step 5: Test. Create a Purchase Order for 10 pieces of T-BW20-##. Receive the goods. Check the WM parameters.

(C) SAP AG

LO530 20-22

Menu Path Aid for Case Study

Customizing:
Create Storage Location: Enterprise Structure Materials management Maintain Structure Definition Maintain storage location. Select New Entries. Definition Materials

Copy a Warehouse: Enterprise Structure Maintain Structure management Warehouse icon. Change Warehouse Description: Enterprise Structure Materials management

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

Maintain Structure

Definition

Define, copy, delete, check warehouse number. Select New Entries. Maintain Structure

Assign Warehouse to Storage Location and Plant: Enterprise Structure Assignment Materials management storage location. Select New Entries.

Assign warehouse number to plant /

Define / Change Control Parameters for warehouse: Materials Management Management Master Data

Warehouse

Define control parameters for warehouse number. Warehouse Management

Define / Change Number Ranges: Materials Management Master Data Define number ranges

Assignment. Warehouse Management

Define / Change Storage Types: Materials Management Master Data Define storage type.

Define / Change Storage Sections: Materials Management Master Data Define Storage Sections.

Warehouse Management

Storage Type Indicators / Search Sequence: Materials Management Management Strategies Activate storage type search.

Warehouse

Storage Section Indicators / Search Sequence: Materials Management Management Strategies Activate storage section search.

Warehouse

Storage Unit Type Search: Materials Management Strategies

Warehouse Management

Activate storage bin type search. Warehouse Management

Define Special Movement Indicator: Materials Management Master Data Material

Define Special Movement Indicator.

(C) SAP AG

LO530 20-23

Master Data:
Create Storage Bins Manually: Logistics management Master data Materials management Create Warehouse Storage bin Manually. Warehouse

Create Storage Bins Automatically: Logistics management Master data

Materials management Create

Storage bin

Automatically. Warehouse

Create Storage Bins for Interim Storage: Logistics management Master data Storage bin

Materials management Create

For interim storage. Warehouse management

Create Material Master: Logistics Master data Material

Materials management Create. Materials management Change.

Change Material Master: Logistics Master data Material

Warehouse management

IM Processing:
Storage Location to Storage Location: Logistics management Goods movement Materials management Inventory Transfer posting. Materials management Stock overview. Inventory

Display Stock Balances from IM: Logistics management Environment

Stock

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

WM Processing:
Display Transfer Requirement: Logistics management TransRqmt for all TRs to display). Display Transfer Order: Logistics TransOrder Display Materials management List Warehouse management Materials management Warehouse Display By storage type (leave storage type blank

Create Transfer Order from Transfer Requirement: From TR display, select a TR and TO in foregr. Select Palletization; Stock plcmnt foregrnd; Enter; Generate+next mat. Save.

(C) SAP AG

LO530 20-24

Confirm Transfer Order: Logistics TransOrder Confirm

Materials management Transfer Order

Warehouse management

Display Stock Balances from WM: Logistics Management Bin Stock). Create a TO for a delivery: Logistics TransOrder Create Master data

Materials management Stock

Warehouse

Material

Stock Overview (or Stock

Materials management For delivery.

Warehouse management

Create entry for Pre-Allocated Stock: Logistics management TransOrder

Materials management

Warehouse

Pre-allocated stock

(C) SAP AG

LO530 20-25