LO530 Warehouse Management

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LO530 Warehouse Management

LO530

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LO530 Warehouse Management... 0-1 Copyright ... 0-2 Logistics Execution ... 0-3 Course Prerequisites... 0-4 Target Group ... 0-5 Course Overview... 1-1 Course Goals ... 1-2 Course Objectives ... 1-3 Course Content... 1-4 Course Overview Diagram... 1-5 Main Business Scenario ... 1-6 Logistics Execution Overview ... 2-1 Logistics Execution Overview: Overview Diagram... 2-2 Logistics Execution Overview: Business Scenario ... 2-3 Logistics Execution Overview: Topic Objectives... 2-4 Integration Process ... 2-5 Warehouse Management ... 2-7 WM Integration with Other Systems ... 2-8 Logistics Execution Overview: Topic Objectives... 2-9 Goods Receipt Process... 2-10 Process for Stock Placement ... 2-11 Planning a Movement ... 2-12 Transfer Requirement Information... 2-13 Steps for Stock Placement... 2-14 Transfer Order Information... 2-15 Screen Sequence in Transfer Order Creation ... 2-16 Palletization Notices ... 2-17 Transfer Order Confirmation ... 2-18 Logistics Execution Overview: Topic Objectives... 2-19 The Goods Issue Process... 2-20 Steps for Stock Removal ... 2-21 Transfer Requirement Information... 2-22

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

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Integration with Inventory Management ... 5-1 Integration with Inventory Management: Course Overview Diagram ... 5-2 Integration with IM: Business Scenario ... 5-3 Integration with Inventory Management: Objectives... 5-4 Inventory Management/WM Interface... 5-5 Interim Storage Area Search ... 5-6 Interim Storage: Bin Types ... 5-7 Transfer Order Storage Type Search - Placement ... 5-8 Transfer Order Storage Type Search - Removal ... 5-9 TO Processing Overview ... 5-10 Automatic Creation of Transfer Orders... 5-11 Integration with IM: Unit Summary... 5-12 Integration with Inventory Management - Exercises ... 5-13 Integration with Inventory Management - Solutions... 5-15 Goods Receipt ... 6-1 Goods Receipt: Course Overview Diagram ... 6-2 Goods Receipt: Business Scenario ... 6-3 Goods Receipt: Objectives ... 6-4 Capacity Check ... 6-5 Capacity Usage Based on the Material... 6-6 Capacity Check based on the SUT ... 6-7 Capacity Check based on material and SUT (1) ... 6-8 Capacity Check based on material and SUT (2) ... 6-9 Handling Differences ... 6-10 Difference Indicator ... 6-11 2 Step Confirmation ... 6-12 Pre-allocated Stock Check ... 6-13 Storage Type Search Control ... 6-14 Storage Section Search Control ... 6-15 Variable Control by Storage Unit Type ... 6-16 Special Movement Indicator ... 6-17 Stock Placement Control... 6-18 Stock Placement Strategy... 6-19 Manual Bin... 6-20

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

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

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

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Warehouse Structure ... 14-5 Case Study ... 14-6

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 SAP AG 1999

LO530 Warehouse Management

LO530

Warehouse Management

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

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SAP AG 2002

Copyright 2002 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.

All rights reserved.

Copyright

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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 Cross - Functional Customizing in SD @LO531b Radio Frequency in Logistics Execution @LO531a Customizing the Warehouse Activity Monitor

@

2 h

@

2 h Warehouse Management LO530 3 days LO650 3 days

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SAP AG 1999

Course Prerequisites

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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.

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SAP AG 1999

Course Overview

Course Goals

Course Objectives

Course Content

Course Overview Diagram

Main Business Scenario

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SAP AG 1999

Gain an understanding of the basic Warehouse

Management functions and the available tools

used to configure the SAP Warehouse to your

company’s requirements.

This course will prepare you to:

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SAP AG 1999

Course Objectives

Perform basic WM functions such as putaway and

retrieval of stocks and process posting changes

Customize the integration with Inventory

Management, Production Planning and Delivery

Processing

Discuss customizing options and settings within

the Warehouse Management System

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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

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SAP AG 1999

Course Overview Diagram

Conclusion Warehouse Management Structure

3

Master Data

₄

Integration with Inventory Management

5

Goods Receipt

₆

Physical Inventory

₁₂

Production Integration

9 ₉

₉

Replenishment

₁₁

Posting Changes

₈

Delivery Processing

₁₀

2

Goods Issue

₇

Logistics Execution Overview Course Overview

₁

13

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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.

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SAP AG 1999

Logistics Execution Process Review

3

Master Data

₄

5

Goods Receipt

₆

₁₂

9 ₉

₉

Replenishment

₁₁

Posting Changes

₈

₁₀

2

Goods Issue

₇

₁

13

13 Logistics Execution Overview: Overview Diagram

Logistic_{s Execu} tion Overview

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SAP AG 1999

The project team must be oriented to the Logistics

Execution Process.

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SAP AG 1999

Logistics Execution Overview: Topic Objectives

Describe the Logistics Execution Process

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SAP AG 1999

Integration Process

IM IM Purchasing (MM) Requirement Requirement determination determination G o o d s R e c e ip t Inventory Inventory R e q u ir e -m e n t G o o d s Is s u e A c c o u n ts Debitor Creditor Payment Payment Presales Activities Order

Processing Shipping Invoicing

Source

determination

determination POPOProcessingProcessing

Invoice Invoice verification verification L o g is ti c s E x e c u ti o n(L E ) R e q u ir e -m e n t

In version 4.5, the applications of Warehouse Management, Shipping and Transportation were brought together to form the Logistics Execution system. As part of SAP‘s Supply Chain

Management, these components are combined to build strong links between processes of Production, Procurement and Sales and Distribution.

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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.

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SAP AG 1999

WM Integration with Other Systems

Delivery Processing Delivery Processing Inventory Management Inventory Management Quality Management Quality Management Production Supply Production Supply Transportation Transportation Human Resources Human 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

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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:

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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. 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.

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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

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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.

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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)

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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.

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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

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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.

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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 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.

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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.

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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:

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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.

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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 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

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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

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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.

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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.

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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 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.

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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.

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SAP AG 1999

Change Destination Bin

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.

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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.

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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:

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Logistics Execution Overview -

Exercises 1

Unit: Logistics Execution Overview

Topic: Goods Receipt

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

• Create a Goods Receipt in Inventory Management and follow through

placement and confirmation in WM.

In your company, when goods are received from an external source, the material comes into a receiving area and is processed in the SAP System with the appropriate Inventory Management transaction. This material is then placed into a Goods Receipt area and identified with the Purchase Order number.

It is the responsibility of the warehouse then to pick up the material from the Goods Receipt area and put it away. Once the material is put away, the warehouse will confirm that the material has been stored as requested. It is your responsibility to ensure that this process is efficient and to troubleshoot any issues that may arise. In order to test the efficiency of this process, you must understand all of the steps within the receiving process.

In this exercise, you will walk through the complete cycle of a Goods Receipt, from the time materials are received on the dock until those goods are placed in the appropriate storage type in the warehouse. At several points along the way, you will need to verify the stock situation. The ## indicates your group number that has been assigned by your instructor. Wherever you see ##, please insert your group number. Please be sure to work only within your warehouse.

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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-##

1000 01## 001

1000 01## 902

TOTAL

1-1-6 From the Stock Overview, display the quant data and determine the following information:

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1-2 Convert the Transfer Requirement to a Transfer Order.

1-2-1 Display all TRs for your warehouse. (Add this task to your Favorites. Change the text to Display Transfer Requirements by Storage Type.) 1-2-2 Is there a TR for the Purchase Order you received in the prior section?

_____. Display the TR and make note of the following information:

The Purchase Order number is displayed in the Requirement field.

Transfer Requirement number ________________________________

Requirement tracking number ____ __________________________

Source Storage type & bin number ____ __________________________

Material Document number ________________________________

Hint: The material document number is stored in the header information.

1-2-3 Now convert the Transfer Requirement (TR) into a Transfer Order (TO) in the foreground.

1-2-4 What palletization data is proposed? ______________________________ 1-2-5 How does the system default the palletization data? __________________

____________________________________________________________ 1-2-6 What destination storage bins are proposed? ________________________ 1-2-7 Before posting, determine what stock placement strategy was used to

determine the destination of the final storage bin.

Environment →→→→ Storage Bin Search log

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1-2-8 Display the WM stock overview for the material T-BW03-##.

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? _______

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Logistics Execution Overview -

Solutions 1

Unit: Logistics Execution Overview

Topic: Goods Receipt

1-1

1-1-1 Logistics

→

Logistics Execution

→

Internal Whse Processes

→

Bins and Stocks

→

Display

→

Total Stock per Material (Warehouse Management)

Field Name or Data Type 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

→

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.

Material Number T-BW03-## Plant 1000

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1-2

1-2-1 Logistics

→

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

→

Stock Transfer

→

Confirm Transfer Order

→

Single Document

→

In One Step (Favorites

→

Add, Highlite the line and choose Favorites

→

Change)

Alternate Menu Path: Logistics

→

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

→

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Logistics Execution Overview -

Exercises 2

Unit: Logistics Execution Overview

Topic: Goods Issue

• 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 department’s cost center. In this exercise, your favorite Engineer has requested 5 Shafts, material T-BW02-## for some testing. These shafts will be expensed to the cost center of the Engineering Department (Cost Center 1000). In your company, the process for this type of transaction is that the Goods Issue (GI) is posted first in IM, and the appropriate documentation is generated in the warehouse for material removal. The movement type for GI to a Cost Center is configured such that a transfer requirement is created in the warehouse as notification to move inventory from the warehouse to a GI area. You then create a Transfer Order with reference to the Transfer Requirement. The TO that is generated is printed in the warehouse and the materials are pulled from stock.

Remember that a material is not available for subsequent functions within the warehouse until the confirmation process is complete.

2-1 An Engineer, Mr. KC Jones, has requested 5 shafts, material number T-BW02-## to be issued to his cost center 1000.

2-1-1 Before you start, note the stock balances for T-BW02-##.

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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? ________________________________________

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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-##.

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.

1000 01## 001

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Logistics 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

→

Outbound Process

→

Goods Issue for Other Transaction

→

Enter Goods Issue

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

→

TrnsRqmt

→

Display

→

By Material. Favorites

→

Add, highlight the entry and choose Favorites

→

Change.

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.

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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

→

Stock Transfer

→

Display Transfer Order

→

By Material

2-3-4 Favorites

→

2-4 Favorites

→

Confirm TO, One Step 2-4-1 Save the TO.

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SAP AG 1999

Warehouse Management Structure

Warehouse Management Structure Elements

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SAP AG 1999 Conclusion Warehouse Management Structure

3

Master Data

₄

5

Goods Receipt

₆

₁₂

9 ₉

₉

Replenishment

₁₁

Posting Changes

₈

₁₀

2

Goods Issue

₇

₁

13

Wareho_use Manage_ment Structu_re

Warehouse Management Structure:

Course Overview Diagram

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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.

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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

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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.

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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

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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.

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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 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.

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SAP AG 1999

Examples of a (Physical) Warehouse Structure

Storage areas HRS A B Shelving area HRS Bulk storage Picking area Plants Plants

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SAP AG 1999

The Warehouse Structure in the IM System

Plants Plants 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

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SAP AG 1999

Possible Structure with the WM System (1-1)

Storage types Plants Plants 001 001 002₀₀₂ 001₀₀₁ 002₀₀₂ 003₀₀₃ Storage locations 0001 0002

Warehouse number 001 Warehouse number 002

0088

0088 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.

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SAP AG 1999

Possible Structure with the WM System (1-2)

Storage types 001001 002002 Warehouse number 001 Storage locations 00880088 00880088 Plants Plants 0001 0002 Scenario 1 Example 2 003 003 004₀₀₄ 0001 0001

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).

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SAP AG 1999

Possible Structure with the WM System (2)

Storage types 001001 002002 Warehouse number 001 003 003 004₀₀₄ Storage locations 0087 0087 0088₀₀₈₈ 0003₀₀₀₃ Plant Plant 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.

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.

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SAP AG 1999

Possible Structure with the WM System (3)

Storage types 004004 Warehouse number 001 916 916 Storage locations 0090 0090 0088₀₀₈₈ 0092₀₀₉₂ Plant Plant Scenario 3 0001 005 005 902 902 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.

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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.

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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

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SAP AG 1999

Storage Type Level Data

Storage type

Storage typeLevelLevel

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 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).

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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.

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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:

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Warehouse Management Structure -

Exercises 1

Unit: Warehouse Management Structure

Topic: Organizational Elements in WM

• 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