Handling Unit Management in SAP

Packing during Outbound Process in SAP ECC

Ankur Srivastav & Krishnakanth A N

Deloitte Consulting LLP
1/4/19
About Us
Name : Ankur Srivastav , Consultant, SAP Package Technologies , Bengaluru
Office, USI (ansrivastav@deloitte.com)
Industry Focus : Process and Industrial Products
Project Work & Experience: Ankur has close to 3 years of experience in Metal
and Mining Sector. Ankur has worked with Hindustan Zinc Ltd (Subsidiary of
Vedanta Resources Plc.)for 3 years.
School(s) & Degree(s) : MBA in Operations from SIBM Pune, B.Tech in
Electronics & Communication Engineering – Chandra Shekhar Azad University
Kanpur

Name : Krishnakanth A N , Consultant, SAP Package Technologies , Bengaluru

Office, USI (krnarasimha@deloitte.com)
Industry Focus : Consumer and Industrial Products
Project Work & Experience: Krishnakanth has 3 years of experience in New
Product Development in Automotive Sector. He is APICS Certified in Basics of
Supply Chain Management.
School(s) & Degree(s): PGDM – T.A.Pai Management Institute(TAPMI),
Manipal. B.E.(Electrical & Electronics) – College of Engineering, Guindy,
Chennai.

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Index
Introduction to Handling Unit Management
Structure of a Handling Unit
Handling Unit Monitor
Handling Units in Inventory Management
Handling Units in Warehouse Management
Handling Units with EWM
Packing in Logistics Process
Packing Station
Packing Instructions
Packaging Instruction Determination
Create Determination Records for Packing Instruction
Packing in the Outbound Delivery Process
Packing in Outbound - Demo
Customization Settings for Handling Units
Material Master Settings for Packaging Material and Material to be Packed

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Introduction to Handling Unit Management

A handling unit represents a physical object in the SAP system. It consists of a

load carrier, one or more packed products and an unlimited quantity of packaging
materials. Each handling unit has a unique identification number, which is typically
printed as a barcode on a material tag
Handling units can be nested, meaning that you can also create new handling
units from several handling units as often as you like.

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Introduction to Handling Unit Management (cont.)

 You can specify the material and the quantity that is to be packed in certain
packaging, that is, in one handling unit. These requirements are reproduced in
a packing instruction. This packing instruction can be used to create handling
units automatically
 You can execute multi-level packing in delivery. Two packed HUs can be
packed again into one HU (Nesting of Handling Units) so that a set of products
are packed together.

Benefits of Handling Units:

 Track movements of groups of individual materials by tracking the handling
units that contain them
 Automatic packaging according to packing instructions
 Full integration into the logistic chain

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Structure of a Handling Unit

The handling unit object contains the following attributes:

• Identification number
• Dimensions
• Weight
• Volume
• Status
• Materials and quantities
• Packaging materials
• Packing instructions

A handling unit consists of a handling unit header and handling unit items. For
identification purposes, it is given a unique number.

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Structure of a Handling Unit (Contd.)

Handling unit header

The header data of a handling unit is divided in the following way:
• Weight/Volume/Dimensions
• General data
• Means-of-transport data
• Additional data
• Output determination procedure

Handling unit item

The items of a handling unit can consist of material items, packaging materials or
other handling units that appear in an overview under Contents

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Structure of a Handling Unit (Contd.)

All documents affected by the handling unit can be:

• Inbound and outbound deliveries
• Material documents
• Work orders
• Transfer orders

Handling Unit Header

Handling Unit Item

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Handling Unit Monitor

The Handling Unit Monitor (TCode: HUMO) is a tool that displays and processes
handling units.

The packing object, a two-character numeric key, indicates the document type to
which a handling unit has been assigned. The packing object is always
linked to an object key that is based on the number of the actual document. This
combination produces a unique reference. Handling Unit Object Reference
ensures that the handling unit currently being used in certain process cannot be
mistakenly processed somewhere else.

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Handling Units in Inventory Management
Handling Unit Management requires at least two storage locations . one handling
unit-managed, and one non-handling unit managed, otherwise known as the
partner storage location.
Handling units, or packed stocks, are always inventory managed in handling unit
storage locations. Unpacked stocks are inventory managed in non-handling unit
storage locations (as normal).
Repacking and other changes to the handling unit is often forbidden for the
following reasons:
- A delivery handling unit is packed further during transport.
- The status prohibits changes (goods issue posted, blocked, user status).
- In Warehouse Management, the handling unit is in the warehouse in a storage
type that does not permit repacking. In this case, you must first pick the
handling unit into an interim storage type before making changes.

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Handling Units in Warehouse Management

Handling Unit Management when used in connection with Warehouse

Management, then storage unit management must be activated for all storage
types in which you want to store handling units.

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Handling Units with EWM

1. With EWM, Handling Units are controlled at the storage type level, and within
the storage type, it can be set whether the use of a HU is mandatory, optional
or not required.
2. SAP EWM uses Handling Unit Management functionality to assign LPNs
(license plate numbers) to track pallets or containers of products.
3. With EWM, it is easy to pack/unpack using either RF or GUI transactions.
4. Simplified processing of HUs requires less overhead and more efficient
processing.
5. Unloading of Trailers (Transport Units) is a functionality only available in EWM.
Through the use of RF guns, the operator can verify the contents of the trailer
by scanning the handling units and then moving them to their appropriate
destination bin.
6. Deconsolidation is another feature in EWM where specific HUs that meet
specific rules and conditions are directed to a deconsolidation station to be
disassembled.

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Packing in Logistics Process

Packing in the SAP system means assigning materials, which have been grouped
according to packing attributes, to packaging materials. These packaging
materials are also materials with a certain material type (VERP).
Packing options:
- Pack: The system creates one handling unit. Packaging material tolerances
are considered.
- New HU per partial quantity of material
- New HU per x HUs: Causes the system to display a dialog box so that you
can make more precise packing-relevant entries for one or more previously
created handling units.
- New HU if full: Only the total quantity is considered, not the packaging
material tolerance.

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Packing Station

Packing Station (Transaction HUPAST) was developed to simplify the display for
packing transactions in the system, especially for end users who perform packing.

The following activities are available:

. Create and change handling units with reference to a delivery.
. Create handling units without object reference.
. Print labels for individual handling units.
. Update the handling unit weight.

There are packing station profiles to create handling units for inbound and
outbound deliveries, and without object reference.

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Packing Instructions
Packing instructions enable the business to automate the packing process.
Depending on specific characteristics, the system creates proposals for handling
units based on the previously defined packing instructions. Based on this
proposal, the vendor can pack the materials according to customer requirements,
and then create the HU in the system, by confirming the proposal.
A packing instruction consists of a load carrier, or a packaging material, and a
material (to pack).

Automatic Packing: There are several available options for automating packing
transactions. If you have created packing instructions, then the system can create
handling units in the background.

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Packing Instructions (Contd.)

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Packaging Instruction Determination

You define a packing instruction that refers to specific characteristics, such as

material and ship-to party. If you now want to pack this specific material for this
specific ship-to party, the system can find the pre-defined packing instruction and
use it to create one or more HU proposals that exactly fit the requirements of the
customer. Packing instruction determination thus automates the packing process.
Integration:

The system starts packing instruction determination when you enter a quantity of a
material to be packed and choose Pack automatically.

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Create Determination Records for Packing Instruction

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Create Determination Records for Packing Instruction (Contd.)

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Packing in the Outbound Delivery Process

Steps:
• Create Delivery for the Sales Order
• Create the transfer order (TO) with reference to the delivery. Determine the
withdrawal storage bins using Warehouse Management.
• Confirm the material withdrawn
• Enter any difference quantities that have occurred during picking
• Create pick containers (pick-handling unit) in the delivery.

For each delivery item, the system searches pickable stocks according to the
picking strategy valid in the source storage type. The decisive criteria here are the
material and the quantity. In the outbound delivery, you cannot specify which
handling units should be picked.

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Packing in the Outbound Delivery Process (Contd.)

Pick-Handling Unit (Pick-HU):

• A pick-handling unit is always required when you only pick a partial quantity of a
warehouse handling unit.
• You can create the pick-handling unit and assign it to the transfer order before
you confirm the latter.
• Or you can create the Pick-HU during packing in the delivery.

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Packing in the Outbound Delivery Process (contd.)

Procedures to create Pick-Handling Units:

- Manual pick-handling unit creation using transaction LH01
- Automatic pick-handling unit creation when creating transfer orders
according to Customizing settings
- Pick-handling units construction using packing instructions in the delivery

HU Withdrawal

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Packing in Outbound - Demo

1. Create Sales Order (VA01):

2. Sales Order Number generated by the System is 612

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Packing in Outbound – Demo (Contd.)

1. Create Delivery (VL01n):

2. Delivery Number generated by the System is 80000346

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Packing in Outbound – Demo (Contd.)

1. Check Document Flow (VL02n):

2. Automatic Transfer Order generated by the System is 1000000326

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Packing in Outbound – Demo (Contd.)

1. Confirm Transfer Order (LT12)

3. Transfer Order 1000000326 confirmed.

2. Material being moved to

Shipping Area for deliveries
D51.

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Packing in Outbound – Demo (Contd.)

1. Packing in Delivery (VL02n)

2. Click on “Pack” icon

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Packing in Outbound – Demo (Contd.)

1. Click on Automatic Packing Icon

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Packing in Outbound – Demo (Contd.)

1. Based on the Packing Instructions, a New HU 1000000124 (Total Weight: 50.9

Kg) gets created using Packaging Material WDE-MATL4. Now, let us further
pack the Pick-HU No. 1000000124

2. Click the Pack HUs Tab

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Packing in Outbound – Demo (Contd.)

1. Select the row under “All HUs

that can be packed” sub-screen
and Click on New HU per x HUs
Icon

2. Fill up the details in the dialog box which

opens up.
a. PackMat. For new HU: LARGEBOX100
b. No.HUs to be packed per HU: 01

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Packing in Outbound – Demo (Contd.)

1. New HU no. 1000000127 is

Created which is a nested HU
containing HU no. 1000000124

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Customization Settings for Handling Units

IMG Steps
1. HU Requirement for Storage Locations and Default values for Deliveries

2. Define Number ranges for Handling Units

3. Set Unique Number Assignment for HU Identification

4. Number Range Maintenance for HU Identification

5. Define Packaging Material Types

6. Define Material Group for Packaging Materials

7. Define allowed Packaging Materials

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HU Requirement for Storage Locations and Default values for
Deliveries

In this step, for each storage location, you maintain the handling unit requirement
and the default values for creating a delivery.

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HU Requirement for Storage Locations and Default values for
Deliveries (Contd.)

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Define Number Ranges for Handling Units

When creating a handling unit, the system assigns a clear number internally. This
number is from the number range interval, which you can maintain in this menu
option.

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Set Unique Number Assignment for HU Identification
• If you want to process or display a handling unit, it is only possible to find and
select it if this identification occurs only once.
• If you allow multiple assignment of the same handling unit identification, the
system cannot determine exactly which handling unit you are requesting,
thereby ruling out any chance of scanner-supported processing, for example.
• In this activity, you establish that assignment of handling unit identification is
unique in this client.

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Number Range Maintenance for HU Identification

In this activity, you can maintain number ranges for number assignment for
handling unit identification via number range intervals.

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Define Packaging Material Types

The packaging material type combines packaging materials into groups and
contains essential control features which apply to the corresponding shipping
materials.

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Define Packaging Material Types (Contd.)

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Define Material Group for Packaging Materials

We define material groupings packaging materials, with which materials that are to
be packed into similar packaging materials are grouped together. The material
grouping for packaging materials is entered in the material master record of the
shipping material. A material grouping for packaging materials can, for example,
include all materials that are to packed in bottles

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Define Material Group for Packaging Materials (Contd.)

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Define allowed Packaging Materials

When packing materials or handling units, the system checks whether the
packaging materials for the handling unit, to which the items are to be packed, is
allowed for packing.
By assigning packaging material types to the material groups for packaging
materials, you define which packaging materials are allowed for packing.

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Define allowed Packaging Materials (Contd.)

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Material Master Settings

Steps

1. Assign Material Type “Packaging (VERP)” to the Packaging Material

2. Assign the Packaging Material Type to the Packaging Material

3. Assign the “Material Group for Packaging Material” for material to be

packed

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Material Master Settings for Packaging Material

• When creating material master records for packaging materials, enter either
material type VERP (packaging) or a customer-specific material type that you
have already set in Customizing.
• Material type VERP contains additional packing-relevant fields (Sales:
General/Plant Data screen). You can use the field selection to make the
additional fields available for input for all of the material types.

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Material Master Settings for Packaging Material (Contd.)

The data relevant for packing appears in the material master record for the
packaging material in the Packaging material data section of the screen.

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Material Master Settings for Material to be Packed

You should assign the “Material Groups for Packaging Materials" in the
material master for those materials to be packed.

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References:
1. http://help.sap.com/printdocu/core/print46c/en/data/pdf/LOHU/LOHU.pdf
2. http://www.ciber.com/downloads/whitepapers/CIBER_SAP_SupplyChain.pdf

THANK YOU

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