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Published on Feb 3, 2015

SAP-Warehouse
LO530 Warehouse Management ...
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Muthu Jegannath , Logistics Engineer at Caterpillar Logistics Services, Inc. at Caterpillar


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LO530 Warehouse Management


1. LO530 Warehouse Management LO530 Release 676 07.11.2006
2. LO530 Warehouse
Management.................................................................................................................................1
Copyright.................................................................................................................................................................2
Logistics
Execution.............................................................................................................................................3
Course
Prerequisites............................................................................................................................................4
Target
Group.......................................................................................................................................................5
Course
Overview.....................................................................................................................................................1
Course
Goals.......................................................................................................................................................2
Course
Objectives...............................................................................................................................................3
Course
Content....................................................................................................................................................4
Course Overview
Diagram..................................................................................................................................5
Main Business
Scenario......................................................................................................................................6
Logistics Execution
Overview................................................................................................................................1

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Logistics Execution Overview: Overview
Diagram...........................................................................................2 Logistics Execution
Overview: Business Scenario.............................................................................................3
Logistics Execution Overview: Topic
Objectives...............................................................................................4 Integration
Process..............................................................................................................................................5
Overview.............................................................................................................................................................6
Warehouse
Management.....................................................................................................................................7
WM Integration with Other
Systems..................................................................................................................8 Logistics
Execution Overview: Topic
Objectives...............................................................................................9 Goods Receipt
Process......................................................................................................................................10
Process for Stock
Placement.............................................................................................................................11
Planning a
Movement........................................................................................................................................12
Transfer Requirement
Information....................................................................................................................13 Steps
for Stock
Placement.................................................................................................................................14
Transfer Order
Information...............................................................................................................................15
Screen Sequence in Transfer Order
Creation....................................................................................................16 Palletization
Notices..........................................................................................................................................17
Transfer Order
Confirmation............................................................................................................................18
Logistics Execution Overview: Topic
Objectives.............................................................................................19 The Goods Issue
Process...................................................................................................................................20
Steps for Stock

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Removal...................................................................................................................................21
Transfer Requirement
Information....................................................................................................................22 Steps
for Stock
Removal...................................................................................................................................23
Transfer Order for Stock
Removal....................................................................................................................24 Data
Entry Help for Stock
Removal.................................................................................................................25 Printing a
Transfer
Order..................................................................................................................................26
Change Destination
Bin....................................................................................................................................27
Cancel Transfer
Order.......................................................................................................................................28
Logistics Execution Overview: Unit
Summary................................................................................................29 Logistics Execution
Overview - Exercises 1.....................................................................................................30
Logistics Execution Overview - Solutions
1.....................................................................................................35
3. Logistics Execution Overview - Exercises
2.....................................................................................................37 Logistics Execution
Overview - Solutions 2.....................................................................................................40
Warehouse Management
Structure.........................................................................................................................1
Warehouse Management Structure: Course Overview
Diagram........................................................................2 WM Structure: Business
Scenario.......................................................................................................................3
Warehouse Management Structure:
Objectives..................................................................................................4 Example of a
Physical Warehouse
Structure......................................................................................................5 Warehouse
Structure in the

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System....................................................................................................................6 Storage
Bins and
Quants.....................................................................................................................................7
WM-System
Hierarchy.......................................................................................................................................8
Examples of a (Physical) Warehouse
Structure..................................................................................................9 The Warehouse
Structure in the IM System.....................................................................................................10
Possible Structure with the WM System (1-
1)..................................................................................................11 Possible Structure with the
WM System (1-2)..................................................................................................12 Possible
Structure with the WM System
(2).....................................................................................................13 Possible Structure with
the WM System (3).....................................................................................................14
Organization Structures in the
Warehouse........................................................................................................15 Warehouse
Level
Data......................................................................................................................................16
Storage Type Level
Data...................................................................................................................................17
Copying a
Warehouse.......................................................................................................................................18
Warehouse Management Structure: Unit
Summary..........................................................................................19 Warehouse Management
Structure - Exercises 1..............................................................................................20
Warehouse Management Structure - Solutions
1..............................................................................................22 Master
Data.............................................................................................................................................................1
Master Data: Course Overview
Diagram............................................................................................................2 Master Data:
Business
Scenario..........................................................................................................................3 Master
Data: Topic

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Objectives............................................................................................................................4
Master
Data.........................................................................................................................................................5
Storage Bin
Data.................................................................................................................................................6
Creating Storage Bins
Automatically..................................................................................................................7 Define
Sort Sequence for Placement /
Removal.................................................................................................8 Master Data: Topic
Objectives............................................................................................................................9
Material
Data.....................................................................................................................................................10
Views in a Material Master
Record...................................................................................................................11 Screens in
a Material
Master.............................................................................................................................12
Palletization
Data..............................................................................................................................................13
Units of
Measure...............................................................................................................................................14
Master Data: Unit
Summary.............................................................................................................................15
Master Data - Exercises
1..................................................................................................................................16 Master
Data - Solutions
1..................................................................................................................................18 Master
Data - Exercises
2..................................................................................................................................21 Master
Data - Solutions
2..................................................................................................................................23
4. Integration with Inventory
Management.................................................................................................................1
Integration with Inventory Management: Course Overview

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Diagram................................................................2 Integration with IM: Business
Scenario..............................................................................................................3 Integration
with Inventory Management:
Objectives..........................................................................................4 Inventory
Management/WM
Interface................................................................................................................5 Interim
Storage Area
Search...............................................................................................................................6
Interim Storage: Bin
Types.................................................................................................................................7
Transfer Order Storage Type Search -
Placement...............................................................................................8 Transfer Order
Storage Type Search - Removal.................................................................................................9
TO Processing
Overview..................................................................................................................................10
Automatic Creation of Transfer
Orders.............................................................................................................11 Integration with
IM: Unit Summary..................................................................................................................12
Integration with Inventory Management -
Exercises........................................................................................13 Integration with Inventory
Management - Solutions........................................................................................15 Goods
Receipt.........................................................................................................................................................1
Goods Receipt: Course Overview
Diagram........................................................................................................2 Goods Receipt:
Business Scenario......................................................................................................................3
Goods Receipt:
Objectives..................................................................................................................................4
Capacity
Check...................................................................................................................................................5
Capacity Usage Based on the
Material...............................................................................................................6 Capacity
Check based on the
SUT......................................................................................................................7 Capacity

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Check based on material and SUT
(1).................................................................................................8 Capacity Check based on
material and SUT (2).................................................................................................9 Handling
Differences........................................................................................................................................10
Difference
Indicator..........................................................................................................................................11
2 Step
Confirmation..........................................................................................................................................12
Pre-allocated Stock
Check................................................................................................................................13
Storage Type Search
Control............................................................................................................................14
Storage Section Search
Control.........................................................................................................................15
Variable Control by Storage Unit
Type............................................................................................................16 Special Movement
Indicator.............................................................................................................................17
Stock Placement
Control...................................................................................................................................18
Stock Placement
Strategy..................................................................................................................................19
Manual
Bin........................................................................................................................................................20
Fixed Bin
(F).....................................................................................................................................................21
Near Fixed Bin
(K)............................................................................................................................................22
Addition to Existing Stock
(I)...........................................................................................................................23 Pallet
Strategy
(P)..............................................................................................................................................24
Storage Bin Section
Definition.........................................................................................................................25 Open

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Storage
(C)...............................................................................................................................................26
Next Empty Bin
(L)...........................................................................................................................................27
Bulk Storage
(B)................................................................................................................................................28
5. Transfer Order and Multiple
Printing................................................................................................................29 Setting Up
Printing............................................................................................................................................30
Goods Receipt: Unit
Summary.........................................................................................................................31
Goods Receipt -
Exercises.................................................................................................................................32
Goods Receipt -
Solutions.................................................................................................................................34
Goods
Issue.............................................................................................................................................................1
Goods Issue: Course Overview
Diagram............................................................................................................2 Goods Issue:
Business
Scenario..........................................................................................................................3 Goods
Issue:
Objectives......................................................................................................................................4
Full Stock Removal
Options...............................................................................................................................5
Stock Removal
Control.......................................................................................................................................6
Stock Removal
Strategy......................................................................................................................................7
FIFO
(F)..............................................................................................................................................................8
LIFO
(L)..............................................................................................................................................................9

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Partial Quantities First
(A)................................................................................................................................10
Large/Small Quantities
(M)..............................................................................................................................11
Cascadable through Quantity Rounding -
M.....................................................................................................12 Picking Strategy for Fixed
Bins (P)..................................................................................................................13 Shelf Life
Expiration Date
(H)..........................................................................................................................14 Stringent
FIFO
(***).........................................................................................................................................15
Goods Issue:
Summary......................................................................................................................................16
Goods Issue -
Exercises.....................................................................................................................................17
Goods Issue -
Solutions.....................................................................................................................................19
Posting
Changes......................................................................................................................................................1
Posting Changes: Course Overview
Diagram.....................................................................................................2 Posting Changes:
Business Scenario...................................................................................................................3
Posting Changes:
Objectives...............................................................................................................................4
Stock Transfer / Transfer
Posting........................................................................................................................5 Bin to Bin
Transfer..............................................................................................................................................6
Create TO from Stock
List..................................................................................................................................7
Material to Material / Change in
Batch...............................................................................................................8 Posting Change:
Material Number......................................................................................................................9
Stock Transfer/Transfer Posting

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(II).................................................................................................................10 Stock Transfer /
Posting Change: Plant to Plant...............................................................................................11
Posting Changes During Stock
Placement........................................................................................................12 Transfer
Posting: Initiated in
WM....................................................................................................................13 Customizing
Posting Changes
WM/IM............................................................................................................14 Posting
Changes:
Summary..............................................................................................................................15
Posting Changes - Exercises
1..........................................................................................................................16 Posting
Changes - Solutions
1...........................................................................................................................18 Posting
Changes - Exercises
2..........................................................................................................................20 Posting
Changes - Solutions
2...........................................................................................................................22
6. Posting Changes - Exercises
3..........................................................................................................................23 Posting
Changes - Solutions
3...........................................................................................................................25 Production
Integration.............................................................................................................................................1
Production Integration: Course Overview
Diagram............................................................................................2 Production Integration:
Business Scenario.........................................................................................................3
Production Integration: Topic
Objectives...........................................................................................................4 Scenario for
WM
Staging....................................................................................................................................5
Production Order Process
Review.......................................................................................................................6
Production Supply

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Area......................................................................................................................................7
Control
Cycle......................................................................................................................................................8
Material Staging
Indicators.................................................................................................................................9
Production Storage
Bins....................................................................................................................................10
Material
Supply.................................................................................................................................................11
Decreasing the Quantity during TO
Creation...................................................................................................12 Supply to
Production Storage
Bins...................................................................................................................13 Usage
posting....................................................................................................................................................14
System
Definition..............................................................................................................................................15
Distinctive Features for Repetitive
Orders........................................................................................................16 Standard
Reports...............................................................................................................................................17
Production Integration: Topic
Objectives.........................................................................................................18 Scenario for
KANBAN Replenishment............................................................................................................19
KANBAN..........................................................................................................................................................20
KANBAN Replenishment Strategy with
WM..................................................................................................21 Setup of KANBAN
Replenishment..................................................................................................................22
Production Integration:
Summary.....................................................................................................................23
Production Integration - Exercises
1.................................................................................................................24 Production
Integration - Solutions
1.................................................................................................................29 Production
Integration - Exercises

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2.................................................................................................................32 Production
Integration - Solutions
2.................................................................................................................35 Delivery
Processing.................................................................................................................................................1
Delivery Processing: Course Overview
Diagram...............................................................................................2 Delivery Processing:
Business Scenario.............................................................................................................3
Delivery Processing:
Objectives.........................................................................................................................4
Overview of Shipping Process and
WM.............................................................................................................5 Picking
Process...................................................................................................................................................6
Transfer Order for Outbound
Delivery...............................................................................................................7 Creation of
Groups in the Delivery
Monitor.......................................................................................................8 Two-Step
Picking................................................................................................................................................9
Transfer Order
Splitting....................................................................................................................................10
Creation of TOs:
WMTA..................................................................................................................................11
Delivery Processing:
Summary.........................................................................................................................12
Delivery Processing - Exercises
1.....................................................................................................................13
7. Delivery Processing - Solutions
1.....................................................................................................................15 Delivery
Processing - Exercises
2.....................................................................................................................17 Delivery
Processing - Solutions
2.....................................................................................................................19
Replenishment.........................................................................................................................................................1
Replenishment: Course Overview

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Diagram........................................................................................................2 Replenishment:
Business Scenario......................................................................................................................3
Replenishment:
Objectives..................................................................................................................................4
Replenishment for Fixed Storage
Bins................................................................................................................5 Replenishment
for Fixed Bins: Batch Report.....................................................................................................6
Planned
Replenishment.......................................................................................................................................7
Creating TOs Automatically for
TRs..................................................................................................................8 Replenishing
Random Bin Management:
TR/TO...............................................................................................9 Replenishment:
Summary.................................................................................................................................10
Replenishment - Exercises
1.............................................................................................................................11
Replenishment - Solutions
1.............................................................................................................................13
Replenishment - Exercises
2.............................................................................................................................15
Replenishment - Solutions
2.............................................................................................................................16 Physical
Inventory...................................................................................................................................................1
Physical Inventory: Course Overview
Diagram..................................................................................................2 Physical Inventory:
Business Scenario...............................................................................................................3
Physical Inventory:
Objectives............................................................................................................................4
Inventory
Methods..............................................................................................................................................5
Inventory
Process................................................................................................................................................6
Enjoy in Warehouse Management

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Inventory......................................................................................................7 Continuous
Inventory..........................................................................................................................................8
Cycle
Counting....................................................................................................................................................9
Cycle Counting Time
Interval...........................................................................................................................10
Inventory Based on First Stock
Placement.......................................................................................................11 Zero Stock
Check..............................................................................................................................................12
Zero Stock Check as
Inventory.........................................................................................................................13
Inventory Sampling
Procedure..........................................................................................................................14
Physical Inventory:
Summary...........................................................................................................................15
Physical Inventory Processes with WM -
Exercises.........................................................................................16 Physical Inventory
Processes with WM - Solutions.........................................................................................20
Conclusion...............................................................................................................................................................1
Course
Objectives...............................................................................................................................................2
Recommended Follow-up
Courses.....................................................................................................................3
Recommended Follow-up
Activities...................................................................................................................4 Warehouse
Management Structure - Exercises
2................................................................................................5 Warehouse Management
Structure - Solutions 2................................................................................................8
Appendix.................................................................................................................................................................1
Frequently-used Menu
Paths...............................................................................................................................2
8. Warehouse
Structure...........................................................................................................................................5

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Case
Study...........................................................................................................................................................6
9. 0 SAP AG 1999 LO530 Warehouse Management LO530LO530 Warehouse
ManagementWarehouse Management SAP AG R/3 System Release 4.6C
September 2000 Material number 50041468
10. 0.2 SAP AG 2006 Copyright 2006 SAP AG. All rights reserved. No part of this publication
may be reproduced or transmitted in any form or for any purpose without the express
permission of SAP AG. The information contained herein may be changed without prior notice.
Copyright Some software products marketed by SAP AG and its distributors contain
proprietary software components of other software vendors. Microsoft, Windows, Outlook,
and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2
Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400,
iSeries, pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli,
and Informix are trademarks or registered trademarks of IBM Corporation in the United States
and/or other countries. Oracle is a registered trademark of Oracle Corporation. UNIX,
X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA,
Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or
registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks
or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of
Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a
registered trademark of Sun Microsystems, Inc., used under license for technology invented
and implemented by Netscape. MaxDB is a trademark of MySQL AB, Sweden. SAP, R/3,
mySAP, mySAP.com, xApps, xApp, and other SAP products and services mentioned herein as
well as their respective logos are trademarks or registered trademarks of SAP AG in Germany
and in several other countries all over the world. All other product and service names
mentioned are the trademarks of their respective companies. Data contained in this document
serves informational purposes only. National product specifications may vary. These
materials are subject to change without notice. These materials are provided by SAP AG and
its affiliated companies ("SAP Group") for informational purposes only, without representation
or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect
to the materials. The only warranties for SAP Group products and services are those that are
set forth in the express warranty statements accompanying such products and services, if any.
Nothing herein should be construed as constituting an additional warranty.

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11. 0.3 SAP AG 1999 Logistics Execution Processes in Logistics Execution LO140 3 days
Level 2 Level 3 Delivery Processes LO610 2 days Transportation LO611 3 days Additional
Topics in Warehouse Management LO531 3 days Warehouse Management LO530 3 days
LO650 3 days Cross - Functional Customizing in SD
12. 0.4 SAP AG 1999 Course Prerequisites LO140 Processes in Logistics Execution
13. 0.5 SAP AG 1999 Target Group Audience: Project team members responsible for
the implementation of Warehouse Management SAP and Partner consultants responsible for
customer implementation of Warehouse Management Duration: 3 days Notes to the user
The training materials are not teach-yourself programs. They complement the course
instructor's explanations. Your material includes space for noting down this additional
information. There may not be enough time to do all the exercises during the course. The
exercises are intended to be additional examples that are dealt with during the course.
Participants can also use them to deepen their knowledge after the course.
14. 1 SAP AG 1999 Course Overview Course Goals Course Objectives Course
Content Course Overview Diagram Main Business Scenario Contents: (C) SAP AG
LO530 1
15. 1.2 SAP AG 1999 Gain an understanding of the basic Warehouse Management
functions and the available tools used to configure the SAP Warehouse to your companys
requirements. This course will prepare you to: Course Goals (C) SAP AG LO530 2
16. 1.3 SAP AG 1999 Course Objectives Perform basic WM functions such asputaway and
retrieval of stocks and process posting changes Customize the integration with Inventory
Management, Production Planning and Delivery Processing Discuss customizing options and
settings within the Warehouse Management System At the conclusion of this course, you will be
able to: (C) SAP AG LO530 3
17. 1.4 SAP AG 1999 Course Content Unit 7 Goods Issue Unit 8 Posting Changes Unit 9
Production Integration Unit 10 Delivery Processing Unit 11 Replenishment Unit 12 Physical
Inventory Unit 13 Conclusion Unit 1 Course Overview Unit 2 Logistics Execution Overview Unit 3
Warehouse Management Structure Unit 4 Master Data Unit 5 Integration with Inventory
Management Unit 6 Goods Receipt Preface Appendices (C) SAP AG LO530 4
18. 1.5 SAP AG 1999 Course Overview Diagram Conclusion Warehouse Management
Structure 333 Master Data 444 Integration with Inventory Management 555 Goods Receipt 666
Physical Inventory 121212 Production Integration 999 Replenishment 111111 Posting Changes
88 Delivery Processing 101010 222 Goods Issue 777 Logistics Execution Overview Course

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Overview 111 1313 (C) SAP AG LO530 5
19. 1.6 SAP AG 1999 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. (C) SAP AG LO530 6
20. 2 SAP AG 1999 Logistics Execution Process Review Contents: Logistics Execution
Overview (C) SAP AG LO530 1
21. 2.2 SAP AG 1999 Conclusion Warehouse Management Structure 333 Master Data 444
Integration with Inventory Management 555 Goods Receipt 666 Physical Inventory 121212
Production Integration 999 Replenishment 111111 Posting Changes 88 Delivery Processing
101010 222 Goods Issue 777 Logistics Execution Overview Course Overview 111 131313
Logistics Execution Overview: Overview Diagram Logistics ExecutionOverview (C) SAP AG
LO530 2
22. 2.3 SAP AG 1999 The project team must be oriented to the Logistics Execution
Process. Logistics Execution Overview: Business Scenario (C) SAP AG LO530 3
23. 2.4 SAP AG 1999 Logistics Execution Overview: Topic Objectives Describe the
Logistics Execution Process At the conclusion of this topic, you will be able to: (C) SAP AG
LO530 4
24. 2.5 SAP AG 1999 Integration Process IMIM Purchasing (MM) RequirementRequirement
determinationdetermination Goods Receipt InventoryInventory Require- ment Goods Issue
Accounts Debitor Creditor Payment Payment Presales Activities Order Processing Shipping
Invoicing SourceSource determinationdetermination POPO ProcessingProcessing
InvoiceInvoice verificationverification LogisticsExecution(LE) Require- ment In version 4.5,
the applications of Warehouse Management, Shipping and Transportation were brought
together to form the Logistics Execution system. As part of 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 5
25. 2.6 SAP AG 1999 Overview GoodsGoods IssueIssue Internal and ExternalInternal and
External AccountingAccounting MRP Invoice VerificationInvoice Verification Goods
ReceiptGoods Receipt PostingPosting ChangeChange Invoice Entry Inventory Management
Internal Supply Production External Supply Procurement Presales Activities Sales Order
Shipping Invoicing Logistics Execution supports the flow of materials along the supply chain,
not only between entities, but also within the warehouse for the entire supply chain
management from the supplier through the customer. The Warehouse Management system

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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 6
26. 2.7 SAP AG 1999 Warehouse Management Planning and Monitoring Movements
Warehouse Control Bin Management Radio - Frequency What tasks does the SAP
Warehouse Management system accomplish? Management of complex warehouse
structures with various types of storage areas (high rack random storage, block storage, fixed
bin storage, and so on) within one or several plants down to the storage bin level. Planning
and Monitoring with such tools as the Warehouse Activity Monitor, Rough Workload Estimate,
Time Performance and the Delivery Monitor. Processing of all stock movements such as
goods receipts, goods issues, stock transfers using stock placement and stock removal
strategies, also taking the characteristics of the individual materials into account. Direct
Radio Frequency support. The control of information transfers between the WM system and
automated control systems. (C) SAP AG LO530 7
27. 2.8 SAP AG 1999 WM Integration with Other Systems SAP AG1999 Delivery
ProcessingDelivery Processing Inventory ManagementInventory Management Quality
ManagementQuality Management Production SupplyProduction Supply
TransportationTransportation Human ResourcesHuman Resources The Warehouse
Management system is integrated with other SAP system modules that provide the following
functions: All goods movements in the WM system affect data posted in the Inventory
Management system The handling of inventory samples in connection with Quality
Management The supply of materials in connection with the PP/PI systems The
processing of deliveries in conjunction with the Sales and Distribution Shipping system The
processing of items through the Transportation system The processing of transfer orders
using hand-held terminals Passing data to Human Resources for Incentive Wages (C) SAP
AG LO530 8
28. 2.9 SAP AG 1999 Create a Goods Receipt in Inventory Management and follow
through placement and confirmation in the Warehouse At the conclusion of this topic, you will
be able to: Logistics Execution Overview: Topic Objectives (C) SAP AG LO530 9
29. 2.10 SAP AG 1999 Goods Receipt Process GR area Goods receipt: physical process
When goods are received, they are usually transferred first to the goods receipt (GR) area.

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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 10
30. 2.11 SAP AG 1999 Process for Stock Placement differences Confirmation/ differences IM
WM IM Transfer Order Goods Receipt Transfer Requirement QUANT 1. The goods receipt is
entered in the Inventory Management system: material document created in IM
accounting document created in IM quant created in the GR area in WM transfer
requirement created in WM 2. The transfer order is created based on the transfer requirement.
3. The goods become available, upon confirmation of the transfer order. Also, any differences
noted at put away are entered at this time. 4. Differences, if any, are moved to a storage type
for differences, and when cleared in IM: a material document is created and an
accounting document is created There are opportunities for automation at various points
throughout the process. (C) SAP AG LO530 11
31. 2.12 SAP AG 1999 Planning a Movement GR area Transfer order Transfer requirement
HRS A Transfer Requirement (TR) is created in order to plan a stock movement. The TR
indicates a need to move a specific quantity (quant) of a material into the warehouse (stock
placement) or to move a quantity out of the warehouse (stock removal). The TR provides
information about anticipated stock movements. The TR is later converted into one or
several Transfer Orders (TO). (C) SAP AG LO530 12
32. 2.13 SAP AG 1999 Transfer Requirement Information Transfer requirement ? Goods
Receipt area Goods Issue area Storage area What How much Palletization When From where
Reason/Origin A transfer requirement (TR) contains the following information: What is to
be moved (material number)? How much is to be moved (quantity)? How is it palletized
(material master)? What is the reason/origin (movement type / purchase order)? What
has already been moved (if partial)? List display functions single transfer requirement
(transfer requirement number) all TRs for a material all TRs for a storage type all TRs
for a requirement (original document) all TRs for a material document (C) SAP AG LO530 13

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33. 2.14 SAP AG 1999 Steps for Stock Placement Goods receipt posting TO from TR
Confirm transfer order Pallet slip TO Stock available When goods are delivered, the goods
receipt is entered in the Inventory Management system. On the basis of the goods receipt
posting, a transfer requirement and a quant in the GR area are created. To place the goods
into storage, a transfer order is created on the basis of the transfer requirement. When the
transfer order is created, the system determines the destination storage bin. The transfer
order documents are used to physically place the goods into storage. The transfer quantity
remains unavailable in the warehouse as long as the stock placement is not confirmed in the
system. As soon as the physical stock placement has taken place, you confirm the transfer
order and also enter differences, if any. Depending upon the system set-up, it is possible for
the system to create transfer orders automatically in the background. (C) SAP AG LO530 14
34. 2.15 SAP AG 1999 Transfer Order Information Goods Receipt area Goods Issue area
HRS The transfer order is an instruction to move materials from a source storage bin to a
destination storage bin within the warehouse complex. Transfer orders contain the following
information: Material number Quantity to be moved Source, destination and return
storage bins The information that the transfer order needs comes from several sources:
Material master record Warehouse management movement type Strategies for finding the
source or destination storage bins User entries Source documents, such as transfer
requirements and deliveries (C) SAP AG LO530 15
35. 2.16 SAP AG 1999 Transfer requirement list Overview of TR items Preparation screen
Details of TO item TR items TR Screen Sequence in Transfer Order Creation The transfer
requirement list contains all transfer requirements that respond to the selection criteria entered.
On this list, it is possible to select a transfer requirement, process it and post the transfer order
in the background. The overview of transfer requirement items contains all the items in the
selected 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 16
36. 2.17 SAP AG 1999 Palletization Notices 200 pcs TR item 1 Preparation screen Transfer
order Item 1 50 pcs Item 2 50 pcs Item 3 50 pcs Item 4 50 pcs Mat. master Pallet S1 50 pcs
The preparation screen is used to divide the transfer requirement quantity among the various

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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 17
37. 2.18 SAP AG 1999 TO Header TO Items --- Item material src bin TO item item... 1 2 3
material tmx1 tmx1 tmx2 dest bin 01-01 01-02 01-03 act quantity 50 45 50 diff quantity ... 5
Transfer Order Confirmation When you confirm a transfer order or a transfer order item, you
are verifying that the required quantity of material has actually been transferred from one
location to another and that the processing of the transfer order or item has been completed.
The TO Confirmation function allows three options: Standard 1st screen - confirm actual
quantities equal to target quantities 2nd screen - enter differences, if any (one screen per line
item) Input List One screen to confirm quantities and enter differences Pack ship unit -
switch to packaging dialog of the delivery where you can create shipping units. Whether or
not to automatically confirm transfer orders is set in Customizing. (C) SAP AG LO530 18
38. 2.19 SAP AG 1999 Create a Goods Issue in Inventory Management and follow through
the removal process in the warehouse At the conclusion of this topic, you will be able to:
Logistics Execution Overview: Topic Objectives (C) SAP AG LO530 19
39. 2.20 SAP AG 1999 The Goods Issue Process Goods issue area Goods issue: physical
process: When goods are issued, stock removal from the warehouse takes place after the
appropriate storage bin has been determined. The goods are usually transferred to the goods
issue (GI) area before leaving the warehouse. Goods issue: process within the system
Inventory Management (IM) A Material Document is created to represent the movement of
goods into the warehouse. It is possible to enter palletization data at this point. An
Accounting Document is created to represent the change in value of the goods in the
warehouse. Warehouse Management (WM) A negative quant is created in the Goods Issue
area to represent the existence of goods now in the warehouse. A Transfer Requirement is
created since the goods are later transferred using a transfer order from a storage area within
the warehouse to the GI area. (C) SAP AG LO530 20
40. 2.21 SAP AG 1999 Steps for Stock Removal differences Confirmation/ differences IM WM
IM Transfer Order Goods Issue Transfer Requirement negative QUANT 1. The goods issue is

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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 21
41. 2.22 SAP AG 1999 Transfer Requirement Information ? Transfer requirement Goods
Receipt area Goods Issue area Storage area What How much When Where to Why A
transfer requirement (TR) contains the following information: What is to be moved (material
number)? How much is to be moved (quantity)? How is it palletized (material master)?
What is the reason/origin (movement type/reference?) What has already been moved (if
partial)? List display functions: single transfer requirement (transfer requirement number)
all TRs for a material all TRs for a storage type all TRs for an account assignment
all TRs for a material document (C) SAP AG LO530 22
42. 2.23 SAP AG 1999 Steps for Stock Removal Goods issue posting TO for TR Transfer
order Confirm transfer order Material available For the removal of material, the goods issue
is posted in the Inventory Management system. On the basis of this goods issue posting a
transfer requirement and a negative quant in the GI area are created. To remove the goods,
a transfer order is created from the transfer requirement. When the transfer order is created,
the system determines the source storage bin. The goods are physically removed from the
warehouse with the help of the transfer order documents. As soon as the physical stock
removal is completed, the user confirms the transfer order. Here it is possible to enter
differences. Depending upon the set-up, it is possible for the system to create transfer
orders automatically in the background. (C) SAP AG LO530 23
43. 2.24 SAP AG 1999 Transfer Order for Stock Removal Goods Receipt area Goods Issue
area HRS For each stock removal a transfer order is created, which is used to transfer the
goods from the warehouse to the GI area. (C) SAP AG LO530 24
44. 2.25 SAP AG 1999 Data Entry Help for Stock Removal TR item 1 Preparation screen
Available stock Bin X 100 400 X 100 x 100 100 01-01-01 01-01-02 01-01-03 01-02-01 01-03-
01 Transfer order Item 1 100 pcs Item 2 100 pcs Item 3 100 pcs 300 pcs If you select Stock
Overview from the TO Create Overview screen, you can view the available quants and select

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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 25
45. 2.26 SAP AG 1999 Item 1 Item 2 Item 3 Pick list Mat 1 Src. Dest. Mat 2 Src. Dest. . . .
Single printout Multiple printout TA Item 1 Item 2 Item 3 . . . Printing a Transfer Order As a
rule, transfer orders are printed immediately after they have been created. You can print
transfer orders in different ways: as a single document (one TO item per page) as a
combined document (multiple TO items on one page) as a picking list (several TO with
different sort options per page) You can print with or without a bar code. Labels can be
printed for each transfer order. (C) SAP AG LO530 26
46. 2.27 SAP AG 1999 Change DestinationBin As of release 4.5A, you can change the
destination storage bin when you confirm transfer orders. This new feature is available in all
standard situations. The situations in which you can enter the destination bin is self-evident
since the destination bin field is only available for data entry in those cases. It is not possible
for dynamic coordinates, return items, in Lean WM, when the destination bin is defined in the
movement type, for posting change TOs, for inventory based on putaway and for addition to
existing stock in a storage unit. (C) SAP AG LO530 27
47. 2.28 SAP AG 1999 Before Confirmation Cancel Transfer Order It is possible to cancel
transfer orders that have not yet been confirmed in the WM system. If, while placing goods
into stock, you find a storage bin that cannot be used or if you determine that for some reason,
a stock removal cannot take place, it is possible for you to cancel a transfer order. You can
notify an external system of a transfer order cancellation from the WM system and notify the
WM system of a cancellation from the external system. After a transfer order is canceled,
reference documents (for example, the TR) are reopened. (C) SAP AG LO530 28
48. 2.29 SAP AG 1999 Describe the Logistics Execution Process Create a Goods
Receipt in Inventory Management and follow through placement and confirmation in the
Warehouse Create a Goods Issue in Inventory Management and follow through the removal
process in the Warehouse You are now able to: Logistics Execution Overview: Unit Summary
(C) SAP AG LO530 29
49. 2.30Logistics Execution Overview - Exercises 1 Unit: Logistics Execution Overview Topic:
Goods Receipt At the conclusion of this exercise, you will be able to: Create a Goods Receipt
in Inventory Management and follow through placement and confirmation in WM. In your
company, when goods are received from an external source, the material comes into a

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receiving area and is processed in the SAP System with the appropriate Inventory Management
transaction. This material is then placed into a Goods Receipt area and identified with the
Purchase Order number. It is the responsibility of the warehouse then to pick up the material
from the Goods Receipt area and put it away. Once the material is put away, the warehouse will
confirm that the material has been stored as requested. It is your responsibility to ensure that
this process is efficient and to troubleshoot any issues that may arise. In order to test the
efficiency of this process, you must understand all of the steps within the receiving process. In
this exercise, you will walk through the complete cycle of a Goods Receipt, from the time
materials are received on the dock until those goods are placed in the appropriate storage type
in the warehouse. At several points along the way, you will need to verify the stock situation.
The ## indicates your group number that has been assigned by your instructor. Wherever you
see ##, please insert your group number. Please be sure to work only within your warehouse.
(C) SAP AG LO530 30
50. 1-1 Materials have arrived at the receiving dock with reference to a Purchase order. You
know the material number but not the Purchase Order Number. Your Warehouse Number is
1## and your Storage Location is 01##. The ## is your group number that has been assigned
by your instructor. Wherever you see ##, please insert your GROUP NUMBER. Be careful to
create and change data only within your warehouse number. 1-1-1 Check the stock situation of
the material T-BW03-## before you begin. Plant Sloc StorType Available For Putaway Pick
Quantity 1000 01## 001 1-1-2 Add this task to your Favorites. Change the text to Warehouse
Management Stock Overview. 1-1-3 Now access the function for entering a goods receipt with
reference to a purchase order. 1-1-4 Find the Purchase Order for material T-BW03-##. Enter
the goods receipt for 100 pieces. Save/Post the document. Material Document
___________________ 1-1-5 Display the Stock Overview again for material T-BW03-## Plant
Sloc StorType Available For Putaway Pick Quantity 1000 01## 001 1000 01## 902 TOTAL 1-1-
6 From the Stock Overview, display the quant data and determine the following information:
Quant Number _______ Goods Receipt Date ____________________ (C) SAP AG LO530 31
51. 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 ____

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__________________________ Source Storage type & bin number ____
__________________________ Material Document number
________________________________ Hint: The material document number is stored in the
header information. 1-2-3 Now convert the Transfer Requirement (TR) into a Transfer Order
(TO) in the foreground. 1-2-4 What palletization data is proposed?
______________________________ 1-2-5 How does the system default the palletization
data? __________________
____________________________________________________________ 1-2-6 What
destination storage bins are proposed? ________________________ 1-2-7 Before posting,
determine what stock placement strategy was used to determine the destination of the final
storage bin. Environment Storage Bin Search log Putaway Strategy _____
_____________________ (C) SAP AG LO530 32
52. Save the TO. TO Number _________________ (C) SAP AG LO530 33
53. 1-2-8 Display the WM stock overview for the material T-BW03-##. Plant Sloc StorType
Available For Putaway Pick Quantity 1000 01## 001 1000 01## 902 Is the material available in
the destination storage bin? ____ Why or Why Not?
_______________________________________________
_______________________________________________ 1-3 Confirm the Transfer Order.
(Add this task to your Favorites. Change the text to Confirm TO, One Step). 1-3-1 Once again,
display the stock overview for the material T-BW03-##. Is the material now available in the
destination storage bin? _______ Plant Sloc StorType Available For Putaway Pick Quantity (C)
SAP AG LO530 34
54. 2.31Logistics 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 Values Warehouse Number 1## Material Number T-BW03-## Plant 1000 Select MM
Stock Figures to see Inventory Management total stock. 1-1-2 Favorites Add. Select
Favorites Change to modify the text. 1-1-3 Logistics Logistics Execution Inbound
Process Goods Receipt for Purchase Order, Order, Other Enter Goods Receipt for
Purchase Order 1-1-4 Select the match code icon in the first blank space next to Purchase
Order to search for the Purchase Order Number. Select M:Purchasing Documents for Material.
Field Name or Data Type Values Material Number T-BW03-## Plant 1000 Select the Purchase
Order and choose enter. Select Item OK to receive the entire lot of 100 pieces. Enter Storage

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Location 01##. Save/Post the receipt. 1-1-5 Favorites Warehouse Management Stock
Overview. 1-1-6 From the Stock Overview, select the Plant Summary line for Storage Type 902
with a single click on the line. Then select Bin Stock. Position your cursor on the Quantity and
select it to display the quant. 1-2 (C) SAP AG LO530 35
55. 1-2-1 Logistics Logistics Execution Internal Whse Processes TranRqmt
Display By Storage Type. (Favorites Add, Highlite the line and choose Favorites
Change to change the description) 1-2-2 Yes, a Transfer Requirement was created by the
Goods Receipt transaction. 1-2-3 Select the TR line item, then choose TO in foregr. 1-2-4 The
system suggests 5 pallets with a quantity of 20 pieces each on a Euro- pallet. 1-2-5 The system
determines the default for the palletization data from the LE Quantities in the material master,
warehouse management view. 1-2-6 Select the icon for Putaway Foreground. The system will
recommend the placement bin for each pallet of 20. Enter to accept each recommendation up
to TO Item 5. 1-2-7 On TO Item 5, select Environment Storage Bin Search Log. The putaway
strategy used is L Next Empty Bin from Storage Type 001. Go back to the TO creation and
Enter, then save. 1-2-8 Favorites Warehouse Management Stock Overview. The material is
not available in the destination storage bin until the Transfer Order is confirmed. 1-3 Logistics
Logistics Execution Internal Whse Processes Stock Transfer Confirm Transfer Order
Single Document In One Step (Favorites Add, Highlite the line and choose Favorites
Change) Alternate Menu Path: Logistics Logistics Execution Inbound Process Goods
Receipt for PO, Order, Other Transaction Putaway Confirm TO Single Document In
One Step Enter the TO Number. Review the active worklist and save to confirm. 1-3-1 Favorites
Warehouse Management Stock Overview. The materials are now available in the destination
storage bin. (C) SAP AG LO530 36
56. 2.32Logistics 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

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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 Sloc StorType Available For Putaway Pick Quantity 1000 01## 001 2-1-2 Post
a goods issue transaction issuing the 5 shafts (T-BW02-##) to Mr. Jones cost center. 2-1-3
Note the stock balances for T-BW02-##. (C) SAP AG LO530 37
57. Plant Sloc StorType Available For Putaway Pick Quantity 1000 01## 001 1000 01## 911
TOTAL 2-2 Display all TRs for material T-BW02-##. (Add this transaction to your favorites and
change the description to Display TR by material.) Select the one created by the GI transaction
and determine the following: Transfer Requirement number
______________________________ Requirement tracking number ____
________________________ Destination Storage type & bin number _______
_________________ Material Document number ________________________________
Material Document number is contained in the Header data. 2-3 Create a TO in the foreground
with reference to your TR. 2-3-1 The Storage Type Search displays the storage type sequence
the system will use to search for the stock to remove. What are they? __________
__________ Where does this sequence come from? _____________________________
_____________________________________________________________ 2-3-2 Let the
system select the quant for removal. What removal strategy did the system use to select the
quant for removal? ________________________________________ Environment Storage
Bin Search Log (C) SAP AG LO530 38
58. 2-3-3 Display the Transfer Order. Which bins are affected? Stor. Type Stor. Bin Source
_________________ ________________ Destination _________________
________________ Return _________________ ________________ 2-3-4 Display the stock
balance for T-BW02-##. Plant Sloc StorType Available For Putaway Pick Quantity 1000 01##
001 1000 01## 911 TOTAL 2-4 Confirm the Transfer Order. 2-4-1 Confirm that you have
completed movement. 2-4-2 Once again, view the stock overview. Plant Sloc StorType

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Available For Putaway Pick Quantity 1000 01## 001 (C) SAP AG LO530 39
59. 2.33Logistics Execution Overview - Solutions 2 Unit: Logistics Execution Overview Topic:
Goods Issue 2-1 2-1-1 Favorites Warehouse Management Stock Overview 2-1-2 Logistics
Logistics Execution Outbound Process Goods Issue for Other Transaction Enter Goods
Issue Field Name or Data Type Values Movement Type 201 Plant 1000 Storage Location 01##
Cost Center 1000 Material T-BW02-## Quantity 5 2-1-3 Favorites Warehouse Management
Stock Overview 2-2 Logistics Logistics Execution Internal Whse Processes TrnsRqmt
Display By Material. Favorites Add, highlight the entry and choose Favorites Change.
Field Name or Data Type Values Warehouse 1## Material T-BW02-## Plant 1000 Storage
Location 01## 2-3 Select the appropriate TR from the list display, then choose TO in foregr. 2-
3-1 001, 002. These storage types default from the Storage Type Search Sequence table in
customizing. (C) SAP AG LO530 40
60. 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 41
61. 3 SAP AG 1999 Warehouse Management Structure Warehouse Management
Structure Elements SAP AG 2000 (C) SAP AG LO530 1
62. 3.2 SAP AG 1999 Conclusion Warehouse Management Structure 333 Master Data 444
Integration with Inventory Management 555 Goods Receipt 666 Physical Inventory 121212
Production Integration 999 Replenishment 111111 Posting Changes 88 Delivery Processing
101010 222 Goods Issue 777 Logistics Execution Overview Course Overview 111 131313
WarehouseManagementStructure Warehouse Management Structure: Course Overview
Diagram (C) SAP AG LO530 2
63. 3.3 SAP AG 1999 The model company is a producer and distributor of pumps. To
optimize the logistics process, this company will implement Logistics Execution utilizing
Warehouse Management functionality. WM Structure: Business Scenario (C) SAP AG LO530 3
64. 3.4 SAP AG 1999 Warehouse Management Structure: Objectives Describe the basic
elements of the warehouse structure Define possible warehouse structure scenarios with
and without warehouse management At the conclusion of this unit, you will be able to: (C) SAP

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AG LO530 4
65. 3.5 SAP AG 1999 GR area GI area Fixed Bin area High rack storage 1 Goods receipt
Goods issue Bulk storage Example of a Physical Warehouse Structure Example of a complex
physical warehouse structure without regard to R/3, consisting of several storage areas: high
rack storage, bulk storage, fixed bin area, goods receipt and goods issue area. (C) SAP AG
LO530 5
66. 3.6 SAP AG 1999 High rack storage Storage type 001 Fixed Bin area Storage type 005
Storage type 004 Storage type 902 GR area Storage type 902 GR area Storage type 910 GI
area Storage type 910 GI area Good receipt Goods issue Bulk storage Warehouse Structure in
the System Possible representation of the physical structure in the SAP Warehouse
Management system: The entire warehouse structure is managed under a warehouse
number The various storage areas are defined as storage types that are differentiated
according to their organizational and technical characteristics. Examples: GR area picking
area with fixed storage bins high rack storage area with random picking bulk storage area with
rows of the same material (C) SAP AG LO530 6
67. 3.7 SAP AG 1999 Storage Bins and Quants Lower bins Lower bins High bins Bin type
Fast-moving items Fast-moving items Storage section Within each storage type the
individual storage bins are defined. A storage bin is the smallest geographical or organizational
unit (also called coordinate) that can be addressed by the system. Example: 02-04-09 (aisle
02, stack 04, level 09) Storage bins are identified by a bin type. Example: Bin type P1 for
high bins Storage bins are organizationally grouped into storage sections. Example: Section
001 for fast-moving items. The existence of a material in a bin is defined as a quant. In
bins designated for single-material storage, only one quant may be stored in the storage bin.
In bins designated for mixed storage, different materials (or batches) may be stored in the
same storage bin. (C) SAP AG LO530 7
68. 3.8 SAP AG 1999 Quant Storage bin Storage section/ Picking area Storage type
Warehouse (complex) number Quants are defined by: Material / Batch Stock category
Special stock Plant / Storage location Storage unit number WM-System Hierarchy
Warehouse: Organizational divisioning, usually of a plant that is used for the purpose of
managing materials or goods that are stored in storage bins. Storage Type: A physical or
logical storage area that can be defined for a warehouse in the WM system. Storage Section
/ Picking Area: A logical or physical subdivision of the storage type. Storage Bin: The
smallest addressable unit of space in a warehouse (often referred to as a storage slot). Since

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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 8
69. 3.9 SAP AG 1999 Examples of a (Physical) Warehouse Structure Storage areas HRS A B
Shelving areaHRSBulk storagePicking area PlantsPlants Example of a physical warehouse
structure that can be depicted in the SAP System. (C) SAP AG LO530 9
70. 3.10 SAP AG 1999 The Warehouse Structure in the IM System PlantsPlants 0001
Storage locations 00010001 00020002 00010001 00020002 00030003 0002 In an
Inventory Management system without Warehouse Management, the various warehouses are
defined as storage locations. Example: Plant 0001 Storage loc.0001 High rack storage 0002
Bulk storage Plant 0002 Storage loc.0001 High rack storage 0002 Bulk storage 0003 Picking
area The stock quantities are managed in cumulative form at the storage location level. (C)
SAP AG LO530 10
71. 3.11 SAP AG 1999 Possible Structure withthe WM System (1-1) Storage types
PlantsPlants 001001 002002 001001 002002 003003 Storage locations 0001 0002
Warehouse number 001 Warehouse number 002 00880088 00880088 Scenario 1 Example 1
Scenario 1, Example 1: One Storage Location per Plant in One Warehouse Number. In
this example, each warehouse is assigned directly to one storage location and one plant. In
each warehouse, the various storage areas are represented by storage types. (C) SAP AG
LO530 11
72. 3.12 SAP AG 1999 Possible Structure with theWM System (1-2) Storage types 001001
002002 Warehouse number 001 Storage locations 00880088 00880088 PlantsPlants 0001
0002 Scenario 1 Example 2 003003 004004 00010001 Scenario 1, Example 2: It is possible
to manage warehouses from different plants or different company codes under one warehouse
number. Warehouse areas (that is, storage types) that are not managed by the Warehouse
Management system are defined in the Inventory Management system as storage locations (for
example, storage location 0003). (C) SAP AG LO530 12
73. 3.13 SAP AG 1999 Possible Structure with theWM System (2) Storage types 001001
002002 Warehouse number 001 003003 004004 Storage locations 00870087 00880088
00030003 PlantPlant Scenario 2 0001 Scenario 2: Several Storage Locations per Plant in
One Warehouse Number. You can assign any number of plant/storage location
combinations to the same warehouse number to indicate actual ownership of the stock.

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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 13
74. 3.14 SAP AG 1999 Possible Structure with theWM System (3) Storage types 004004
Warehouse number 001 916916 Storage locations 00900090 00880088 00920092 PlantPlant
Scenario 3 0001 005005902902 100100 For this scenario there are two examples:
Movement of Stock from the Goods Receipt Area Material Staging for Production The
reason for this scenario could be to make the goods available for deliveries only after the
goods receipt processing has been fully carried out. This is possible by allowing deliveries to
pick stock only from storage location 0091. (C) SAP AG LO530 14
75. 3.15 SAP AG 1999 D O O R S T A G I N G A R E A Goods Issue Goods Receipt W A R E
H O U S E Organization Structures in the Warehouse Door: A door in a warehouse can be
used for both receiving and issuing goods. In Customizing it is possible to restrict the area of
usage to either receipt or issue. The door from which delivery takes place is already defined in
the delivery. Material Staging Area: The Staging areas are intermediate areas in the
warehouse in which the goods are temporarily stored after unloading/before loading. In
Customizing, these areas are assigned to the corresponding doors. (C) SAP AG LO530 15
76. 3.16 SAP AG 1999 Warehouse Level Data Define Weights/ Units of Measure Define
Blocking Logic Notifications & Messages Assign Number Ranges Assign Region Code Control
Data Define Differences Allow Partial Picking storage types: Unit of Weight Unit of
Measure default data Blocking Logic Error Messaging / Notifications Number Ranges
Define Doors Handling of inventory differences Interfaces: Inventory Management
Shipping Production Quality Management (C) SAP AG LO530 16
77. 3.17 SAP AG 1999 Storage Type Level Data Storage typeStorage type LevelLevel
Placement Strategies Assign Inventory Methods Activate Full Removal Removal Strategies
Activate Hazardous Material Handling Activate Storage Unit Management The characteristics
of a storage type are defined using various indicators: control indicators for stock placement
(examples: placement strategy, mandatory confirmation, mixed storage, addition to existing

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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 17
78. 3.18 SAP AG 1999 Copying a Warehouse 001 002 In WM, a default warehouse
number is delivered with the standard system. The entries for this organizational unit are
usually used as the basis for prototyping. If you require several warehouses for testing
purposes or to define your company structure, it is often useful to copy an existing
organizational unit. Copy the respective warehouse numbers using the organizational unit
copier (transaction /nEC09). You will need to then maintain number range data for the new
warehouse numbers and activate the respective plants / storage locations in which you want to
use the new warehouse number. (C) SAP AG LO530 18
79. 3.19 SAP AG 1999 Warehouse Management Structure: Unit Summary Describe the
basic elements of the warehouse structure Define possible warehouse structure scenarios
with and without Warehouse Management You are now able to: (C) SAP AG LO530 19
80. 3.20Warehouse Management Structure - Exercises 1 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

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required parameters. In your warehouse, what values are set for the following parameters:
Default Unit of Weight: _______ SU management active: (on/off) _______________ 1-3 Create
a new storage type, 015 High Rack Storage Group## by copying the current high rack
storage type 001. (C) SAP AG LO530 20
81. The placement and removal controls should have the following characteristics: Stock
Placement control stock placement strategy next empty bin stock placement requires
confirmation activate SUT check activate storage section check Stock Removal control stock
removal strategy FIFO stock removal requires confirmation activate complete removal return
stock to same storage bin 1-4 Now create a new interim storage type, 802 GR area for group
## by copying storage type 902. The placement and removal controls should have the
following characteristics: Stock Placement control stock placement strategy none allow for
mixed storage without limitation addition to stock is permitted Stock Removal control stock
removal strategy none negative stock will be allowed propose post. change at storage bin 1-5
Create Storage Sections for your new storage types. Storage Type 015 will contain two
sections: 001 for Fast Moving items and 002 for Slow Moving items. Remember that the Goods
Receipt Storage Type 802 must have one storage section (001 GR Area). 1-6 When you
created the new storage type 015, you selected the option to activate the SUT check. It is this
setting that will verify that the SUT is allowed in the bin type when you create the Transfer
Order. You need to allow the SUTs E1 and IP into the storage type 015. Still in customizing
under Strategies Activate storage bin type search, add an entry assigning SUT E1 and IP to
your new storage type 015. (C) SAP AG LO530 21
82. 3.21Warehouse Management Structure - Solutions 1 Unit: Warehouse Management
Structure Topic: Organizational Elements in WM 1-1 1-1-1 Tools AcceleratedSAP
Customizing Edit Project SAP Reference IMG Enterprise Structure Definition
Logistics Execution Define, Copy, Delete, Check warehouse number Define warehouse
number 1-1-2 SAP Reference IMG Enterprise Structure Assignment Logistics Execution
Assign warehouse number to plant / storage location Plant 1000 Storage Location 01## 1-2
SAP Reference IMG Logistics Execution Warehouse Management Master Data
Define Control Parameters for Warehouse Number Default Unit of Weight: KG SU
management active: On 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. 1-4 SAP Reference IMG Logistics Execution Warehouse Management

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Master Data Define Storage Type. Position on Warehouse 1##. Select Warehouse 1##,
Storage Type 902 and choose Copy As. Modify fields as required, then Enter and Save. (C)
SAP AG LO530 22
83. 1-5 SAP Reference IMG Logistics Execution Warehouse Management Master Data
Define Storage Sections New Entries Field Name or Data Type Values Warehouse Number
1## Storage Type 015 Storage Section 001 Description Fast Moving Warehouse Number 1##
Storage Type 015 Storage Section 002 Description Slow Moving Warehouse Number 1##
Storage Type 802 Storage Section 001 Description 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 Values Warehouse Number 1## Type 015 1st E1 2nd IP (C) SAP AG
LO530 23
84. 4 SAP AG 1999 Master Data Storage Bin Data Material Master Data Contents: (C)
SAP AG LO530 1
85. 4.2 SAP AG 1999 Conclusion Warehouse Management Structure 333 Master Data 444
Integration with Inventory Management 555 Goods Receipt 666 Physical Inventory 121212
Production Integration 999 Replenishment 111111 Posting Changes 88 Delivery Processing
101010 222 Goods Issue 777 Logistics Execution Overview Course Overview 111 131313
Master Data: CourseOverview Diagram Master Data (C) SAP AG LO530 2
86. 4.3 SAP AG 1999 Your company is a major producer of pumps. Engineering has
designed a new flywheel for the chrome steel pump. Over the next units, this pump will be
integrated into the warehouse processes and production area for sale of the final pump. You
must create the master data to support this effort. Master Data: Business Scenario (C) SAP AG
LO530 3
87. 4.4 SAP AG 1999 Master Data: Topic Objectives Create storage bin data Create
storage bin data using a template At the conclusion of this topic, you will be able to: (C) SAP
AG LO530 4
88. 4.5 SAP AG 1999 Master Data Warehouse Material Warehouse Structure Warehouse
number Storage type Storage bins Material General data Data/warehouse no. Data/storage
type The master data of the Warehouse Management system is divided into: Warehouse
structure data (for example, capacity, fire-containment sections) Material data (for example,
weight, hazardous material data, palletization instructions) The characteristics of the
warehouses and the materials are taken into consideration for all stock movements. (C) SAP

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AG LO530 5
89. 4.6 SAP AG 1999 Storage Bin Data Storage bin dataWarehouse no.: 001 Storage type
001 Storage bin: 01-02-02 Section Capacity Storage bin type Blocking indicator Inventory data
Verification Data Quant data Material number Stock quantity GR date Inventory data Inspection
Lot SLED Each storage bin is defined in the system by a master record. The master record
contains the following: The bin characteristics data (storage section, storage bin type, max.
weight, blocking indicators) is created when you create the storage bin master record. Bin
usage and inventory information (number of quants, weight used, date of the last movement,
inventory data, blocking indicators) is automatically maintained by the system during a stock
movement. Whenever a storage bin becomes occupied, the system creates a quant which
contains: storage bin identification material identification (material number, plant, batch,
stock category, special stock) movement data (for example, GR date) stock quantities
(total, available, currently in transfer for stock placement or stock removal) inventory data
blocking indicators (C) SAP AG LO530 6
90. 4.7 SAP AG 1999 Creating Storage Bins Automatically Warehouse number 001 Storage
type 001 Warehouse number 001 Storage type 001 Level 01 to 04 Row A01 to A02 Stack 10 to
40 A01-10-01 A01-10-02 A01-10-03 A01-10-04 A01-20-01 . . . A02-10-01 A02-10-02 A02-10-
03 . . . To define a range of coordinates, you must define: the location of the bins to be
generated (warehouse number / storage type) the current number of the coordinate range
the structure of the coordinates: template (shows the format of the bin coordinate) structure
(shows how to increment) initial value (first coordinate / start value) final value (last coordinate /
end value) increment (amount to be increased for each of the variable blocks)
characteristics/features of the storage bins assignment to a storage section storage bin
type max. weight (C) SAP AG LO530 7
91. 4.8 SAP AG 1999 Storage typeStorage type 001001 Storage bin R R S S L L Sort
Sequence 3 4 1 2 Sort field L L S S without sort variable with sort variable Row R = Row (Aisle)
S = Stack L = Level Top view Define Sort Sequence for Placement/ Removal With all of the
stock placement / removal strategies, you can influence the search for a suitable storage bin
with the aid of a sort variable. The sort variable helps the system to search for storage bins.
The system sorts storage bins by the sort variable first. If the sort variable has not been
maintained, the system sorts by the storage bin coordinate itself. You normally define the
sort variable before you create the storage bins. Without the sort variable, the system fills
the storage type row by row. For example, the system fills the first row completely first, then the

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second row, then the third. This can result in a one-sided load of the warehouse. With the
sort variable, the system fills the storage bins on a stack by stack basis for each row. When the
system selects bins for stock received in the warehouse, it fills the lowest level in each stack
first, then the second level in each stack, then the third level, and so on. (C) SAP AG LO530 8
92. 4.9 SAP AG 1999 Extend a material master view for WM data At the conclusion of this
topic, you will be able to: Master Data: Topic Objectives (C) SAP AG LO530 9
93. 4.10 SAP AG 1999 General Data Material number Description Weight Base unit of
measure Order unit Hazardous material number ... Plant-Specific Data Requirements planning
data Issue unit of measure Batch check requirement ... Warehouse No.-Specific Data WM unit
of measure Storage type indicator Storage section indicator Storage unit quantity ... Storage
Type-Specific Data Fixed bin Control quantity Replenishment quantity Max./min. per storage bin
Rounding quantity Material Data The material data relevant for the Warehouse Management
system is grouped as follows: general material data plant-specific data data specific to
the warehouse number data specific to the storage type (C) SAP AG LO530 10

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