Inventory Management:

Warehouses
SAP Business One Version 9.3

PUBLIC

PUBLIC
Objectives

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

 Create a warehouse
 View a warehouse’s bin location structure
 Describe the drop shipment process

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Business Scenario

 Your company makes, buys and sells items that are stored in multiple warehouses.
 One of the warehouses is controlled by bin locations.
 Another of the warehouses is physically located at a vendor so it is represented in
your system as a drop ship warehouse.
 Business is growing in a new region, so you create a new warehouse to expand
your distribution

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Warehouses and Documents

Purchase Order / GRPO / A/P Invoice /

Sales Order Delivery A/R Invoice

Item-type documents in the

purchasing and the sales
processes reference warehouses

Goods receipts, inventory transfers

and goods issue documents always
contain warehouses

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Warehouses

A warehouse represents a location where goods are stored.

Warehouse 01 Warehouse 02 Warehouse 03 Warehouse 05

General Warehouse Regional Warehouse Drop Ship Warehouse Bin Managed Warehouse

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Defining a Warehouse

General

Address Information
Location

Drop Ship Warehouse 02

Nettable Regional
Warehouse
Enable Bin Locations

Show Location in Web Browser

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Bin Locations in the Warehouse

Warehouse Level
Warehouse 05

WH Sublevel 1 - Aisle
A1 A2 A3 A4

WH Sublevel 2 - Shelf S1 S2 S3 S4

L1 L1 L1 L1
WH Sublevel 3 - Level L2 L2 L2 L2
L3 L3 L3 L3
Bin Location 05-A1-S1-L3

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Bin Locations in Business Processes

Purchasing
process

Purchase Order Goods Receipt PO A/P Invoice Outgoing Payment

Sales Process

Sales Order Delivery A/R Invoice Incoming Payment

Production
Process

Production Order Release Shop Goods Issue to Goods Receipt from

Floor Production Production Order

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Drop Ship Process

Warehouse 03
Sales Purchase Drop Ship Warehouse
Order Order
General
Address Information
Location

A/R Invoice A/P Invoice

x Drop Ship
Manage Serial Numbers
and Batches

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Summary

Here are some key points:

 Warehouses are specified in all inventory documents and in any sales and purchasing
document containing items.
 Bin location management can be used to optimize storage space, quickly location items
and plan efficient routes for picking.
 A bin location code consists of the warehouse plus each sublevel.
 Bin locations can be specified on all documents that have inventory movements once bin
location management is activated.
 You can set up a drop ship warehouse to represent a vendor’s location. Then when you
save a sales order for that warehouse, then procurement wizard suggests a purchase
order to the vendor. The items are sent directly to the customer. The vendor invoices you
and you invoice the customer.

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© 2018 SAP SE or an SAP affiliate company. All rights reserved.

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