Logistics Execution222

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Mastering SAP

Logistics Execution

SAP ECC 6.0

An ERPtips Mastery Level Workshop

Version 1 – May 2009

An ERPtips Product © Klee Associates, Inc.

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SAP Logistics Execution

Introduction

SAP Logistics Execution

Written by Alexis DeStaffany and Jocelyn Hayes

Published by Klee Associates, Inc.

Copyright Klee Associates, Inc., 2009

Jocelyn Hayes, Director of Consulting and Training for ERPtips, has over 12 years of

SAP experience. She has enjoyed a successful consulting career for a Big 4 firm as well as independently. Jocelyn‟s focus primarily has involved the Logistics modules of SAP, and has also developed ESA Roadmaps using NetWeaver tools, including Visual Composer, XI, Enterprise Portal, and BI. She also led a CRM Business Process Reengineering project

Alexis DeStaffany has over ten years of SAP experience and an in-depth knowledge of

the Sales and Distribution (SD), Production Planning (PP) and Materials Management (MM) modules within SAP. Her primary focus is continuous process re-engineering in sales, procurement, inventory management and production for customers using SAP to further enhance their enterprises. She has been a functional consultant and team leader in over 10 implementations/upgrades. Alexis has also developed and taught SAP training courses at a technical college.

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Logistics Exec uti on

Unit 1: Logistics Execution Business Process

Overview

Logistics Execution covers the areas of Warehouse Management and Inbound Receiving and Outbound Shipping processing.

In this unit, we will cover the following:

 DEMO: Good Receipt Process for Inbound Deliveries

 Create Inbound Delivery

 Putaway

 Create Transfer Order

 Display Transfer Order

 Confirm Transfer Order

 Enter Goods Receipt

 Planning, Monitoring, and Analysis of Inbound Deliveries

 DEMO and EXERCISE: Warehouse Management Process Overview

 Warehouse Activity Monitor

 Shipping

 Delivery Processing

 Picking

 Goods Issue

 Decentralized Warehouse Management vs. Centralized Warehouse Management

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DEMO: Good Receipt Process for Inbound Deliveries

The Inbound Delivery process allows you to complete multiple steps in the receiving process in advance of the materials actually arriving on your receiving dock. If your vendor sends you a shipping notification, either electronically or manually, you can use this information to create an Inbound Delivery that represents all the items in the expected delivery. The Inbound Delivery details which purchase order, the materials, the quantity of the materials, and the expected delivery date.

The following demo steps detail all the required steps to complete the Goods Receipt process for Inbound Deliveries.

Demo Data: Field Value Vendor 5595 Plant 3000 Storage Location 0301 Warehouse 301 Material 101-100

Purchase Order Create new PO for demo; be sure to enter a confirmation key. Can copy from PO 4500017383.

Creating Inbound Deliveries

To create an inbound delivery, follow the menu path:

Logistics – Logistics Execution – Inbound Process – Goods Receipt for Inbound Delivery – Inbound Delivery – Create – Single Documents

Or,

Transaction Code: VL31N

1. On the initial screen, you can enter the vendor number and then click on the button to have SAP search for all purchase orders for that vendor that require a shipping notification.

You must maintain a confirmation key in the Purchase Order, which designates that an Inbound Delivery is expected.

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2. Once you have navigated to the Purchasing Documents selection screen, enter your vendor number(s) and any other pertinent search data to find the POs for which you would like to create an Inbound Delivery.

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4. Select the Purchasing documents for which you would like to create the Inbound Delivery and click to copy them into the Inbound Delivery.

5. The Shipping Notification: Create Overview screen appears as shown above. Verify the delivery quantities and remove any lines that are not to be

delivered in the shipment.

In SAP, the term Shipping Notification and Inbound Deliveries are used interchangeably.

6. Click the Stock Placement tab to view the Plant and Storage Location into which the materials will be received.

Notice that the Storage Location is blank. In the demo, select a plant/storage location that is active for Warehouse Management.

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Once you enter a storage location that is warehouse managed, you will notice the Overall Warehouse Management Status has changed. This concept will be further explained in a later unit.

You will also notice that the Putaway quantity is blank. This will be updated with the actual putaway quantity later in this process.

7. Click the Save icon to save the Inbound Delivery. 8. Record your Inbound Delivery number: 180000110

Putaway

The most common method to view items to be putaway is to use the Inbound Delivery Monitor. The Inbound Delivery Monitor can be thought of as a dash board of tasks to be done.

The putaway is done in two steps:

 Create Transfer Order

 Confirm Transfer Order

Create Transfer Order

To search for items to be putaway, execute the Inbound Delivery Monitor using the menu path:

Logistics – Logistics Execution – Inbound Process – Goods Receipt for Inbound Delivery – Inbound Delivery – Lists – Inbound Delivery Monitor,

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1. On the initial screen, click .

2. A selection screen will display. Enter the selection criteria (in our demo, it will be the Inbound Delivery number) and click to display the results of the selection.

Be sure to double check the date range and include the delivery date for which the Inbound Delivery was created.

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3. Select the Inbound Delivery for which you would like to create a Transfer Order. You can create the TO in either the foreground or the background. For the demo, we will use the background creation functionality. Click

.

4. You will be presented with a pop-up window that asks you to select whether or not to adopt the putaway quantity – select option 1 (screen shot of options provided below).

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5. If a storage unit type is not maintained in the material master (this concept will be further explained in Unit 3 of this manual), you will have to enter a storage unit type shown below. Otherwise, the TO will automatically be generated.

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Depending on how you have configured SAP, creating the transfer order may print put away documents to direct your warehouse users what to put away and where to put it.

Display Transfer Order

The transfer order is simply a request to perform a movement in the warehouse. It can either be a request to put away materials, to pick materials, or to move materials within the warehouse.

To display the transfer order, it is easiest to view the document flow from the Inbound Delivery document. To display the Inbound Delivery document, follow the menu path:

Logistics – Logistics Execution – Inbound Process – Goods Receipt for Inbound Delivery – Inbound Delivery – Display – Single Document

Or, use transaction VL33N.

1. Enter the Inbound Delivery number as shown below:

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3. Select the WMS Transfer Order line and click to display the TO.

4. You will now see the Transfer Order: Item detail screen:

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You have now displayed the Transfer Order you created from the Inbound Delivery. In this scenario, the Transfer Order can be thought of as a 'request to putaway' an inbound delivery.

Confirm Transfer Order

The second step in the Putaway process is to Confirm the Transfer Order. Think of this as confirming that you have completed the request (transfer order) to move the material.

To confirm a transfer order, you can either use the Inbound Delivery Monitor (the menu path and transaction code provided in previous step to Create Transfer Order) or follow the menu path to confirm an individual transfer order:

Logistics – Logistics Execution – Inbound Process – Goods Receipt for Inbound Delivery – Putaway – Confirm Transfer Order – Via Inbound Delivery Monitor Transaction: VL06iC

1. Enter the Inbound Delivery number on the following selection screen and click to execute the transaction or click on :

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screen. Select the inbound delivery and click the Confirm in background button.

3. You will be presented with the following pop-up screen similar to when you

created the transfer order. Select the appropriate selection from the drop-down list and press Enter.

If you want to change the putaway quantity from what was on the original TO, confirm the TO in the foreground and override the quantity.

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Goods Receipt

The last step in the Inbound Delivery process is to post the Goods Receipt. At this point, you have put the materials away into stock in the warehouse, but you have to post the goods receipt in Inventory Management to 'synch up' the inventory management stock quantity with the warehouse management stock quantity. This will be described in more detail later in this manual.

You can either use the Inbound Delivery Monitor and select For Goods Receipt as a processing option, use the Collective Processing via Inbound Delivery Monitor transaction, or post the goods receipt directly from the Inbound Delivery. In this demo, we will use the Collective Processing via Inbound Delivery Monitor transaction:

Logistics – Logistics Execution – Inbound Process – Goods Receipt for Inbound Delivery – Post Goods Receipt – Collective Processing via Inbound Delivery Monitor

Transaction: VL06iG

1. On the following screen, enter the Inbound Delivery number. You can either execute the transaction and be presented with a list of Inbound Delivery for which to post the goods receipt, or you can click on

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the following screen:

Select the delivery and click .

3. You will be presented with a pop-up box asking you for the actual goods receipt date. You will usually leave the default of the current date and press Enter.

4. You will receive a message on your screen that the Post Goods Issue was successful.

The last item to show once the Inbound Delivery process is complete is the document flow:

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Planning, Monitoring, and Analysis of Inbound

Deliveries

We have utilized the Inbound Delivery Monitor in the previous demo. The Inbound Delivery Monitor represents a powerful tool that will help you answer the following questions:

 For which deliveries am I expecting a receipt?

 Which deliveries are in process?

 Which materials have the largest volume of transactions?

 Which deliveries are past due?

 Which deliveries are due from a specific vendor?

The following screen shot displays the options when using the Inbound Delivery Monitor (transaction VL06i):

You can also create variants when executing the Inbound Delivery monitor, which allows you to define criteria for which you frequently run the reports.

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DEMO: Warehouse Management Process Overview

In this demo, and subsequent exercise, we will perform the following steps to complete an Outbound Picking Process:

1. Display the Warehouse Activity Monitor

2. Run the Delivery Due List and Create a Delivery 3. Pick a delivery

 Create Transfer Order

 Confirm Transfer Order 4. Pack a delivery

5. Create a Handling Unit

6. Post Goods Issue for a delivery

Demo Data: Field Value Shipping Point 3000 Plant 3000 Storage Location 0301 Warehouse 301 Material LES-252 Customer 100216

Sales Order 12159 (Can copy this sales order and create a new sales order for demo)

Warehouse Activity Monitor

The Warehouse Activity Monitor provides similar functionality to the Inbound Delivery Monitor. It allows you to do the following:

 Monitor Warehouse processes

 Display errors that occurred during warehouse activities

 Functions to help correct errors that occurred in the warehouse

Most activities that are to occur in the warehouse are set to occur in a specified time period. If activities exist that have not occurred and are past due, the

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warehouse activity monitor will allow you to search for those activities and take action. For example, if you use paper pick lists, it is possible that one was dropped and went unnoticed. Viewing the warehouse activity monitor will show that the pick was never performed and allow you to reprint the pick ticket. The Warehouse Activity Monitor will allow you to display:

 Unconfirmed Transfer Orders

 Open Transfer Requirements

 Open Posting Change Documents

 Open Deliveries

 Negative Stocks

 Stock in Interim Storage Locations

 Critical Stocks in Production

To execute the Warehouse Activity Monitor, follow the menu path:

Logistics – Logistics Execution – Information System – Warehouse – Warehouse Activity Monitor

Or, transaction code: LL01

1. On the initial screen, enter the warehouse number and click Execute. Leave Variant blank for now, we will cover that functionality in a later unit.

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3. The following displays the output of the Warehouse Activity Monitor:

Shipping

The shipping process includes the following steps:

 Delivery Processing

 Picking

 Packing

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Delivery Processing

The shipping process starts executing, or running, the Delivery Due List. The Delivery Due List will show all orders due for delivery within a specified time period. The Delivery Due list can be run with multiple transactions, which will be covered in a later unit. We will run it for Sales Order Items.

To run the Delivery Due List, follow the menu path:

Logistics – Logistics Execution – Outbound Process – Goods Issue for Delivery – Create – Collective Processing of Documents Due for Delivery – Sales Order Items

Or, transaction code: VL10C (sales order 12519)

1. Run the delivery due list with the following selection parameters and click :

2. Select the sales orders due for delivery and click to create the deliveries in the background.

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processing log, or view the delivery from the sales order. In the demo, we will view the delivery from the sales order document flow.

Go to transaction VA03 – Display Sales Order and enter the sales order number. Click on the document flow icon.

4. Click on the delivery document and then click on the icon.

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5. The following screen provides an overview display of the delivery. To navigate to the Item detail, double-click on the Material number field.

6. The following screen displays the Item details:

Notice that this delivery item requires a WM transfer order, it is not yet picked, and it will be picked from Plant 3000, Storage Location 0301, and Warehouse 301. The configuration for the determination of these fields will be discussed in a later unit of this manual.

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A transfer requirement is created in the background for every Inventory Management transaction that is for a storage location that is managed using warehouse management. For example, a transfer requirement is created in the following situations:

 A goods receipt has been posted, but materials have not yet been put away.

 A goods issue has been posted, but materials have not yet been removed.

 Replenishment requests to place inventory into fixed bins have not been executed.

 A staging request for production materials has not been completed. To display a transfer requirement, follow the menu path:

Logistics – Logistics Execution – Internal Whse Processes – Transfer Requirement – Display – Single

Or, transaction code: LB03

Picking

Picking is the next step in the Delivery process. The Outbound Delivery Monitor provides a tool to display all the deliveries due for picking. It is also possible to create Wave Picks in SAP, which will be covered in the Deliveries unit of this manual. In this demo step, the first section will create the Transfer Order, and the second step will confirm the Transfer Order.

CREATE TRANSFER ORDER:

To run the Outbound Delivery Monitor, follow the menu path:

Logistics – Logistics Execution – Outbound Process – Outbound Delivery – Lists and Logs – Outbound Delivery Monitor

Or, transaction code: VL06o

1. Once you arrive at the Outbound Delivery Monitor dashboard, select the option.

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3. You will be presented with a list of deliveries ready to be picked. You can either select all, or select only the deliveries you wish to pick. Once you have made your selections, click the icon to create the Transfer Orders.

4. The following box will pop up to set parameters for creating the Transfer Order:

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5. After you have pressed Enter, you will receive a confirmation message that the transfer order has been created. The transfer order is the request to the warehouse to pick the items from the warehouse. Typically, a pick list prints when you create a transfer order.

CONFIRM TRANSFER ORDER:

The next portion of the picking process is to confirm the transfer order. Confirming the transfer order is telling SAP that you have picked the item from the bin location and are now ready to ship the goods.

We will confirm the transfer order using the Outbound Delivery Monitor.

7. Select the Shipping Point and click Execute to view the Transfer Orders waiting for confirmation:

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8. Select the deliveries for which you would like to confirm the transfer order and click the Confirm in background icon . You can also select Confirm in foreground if you need to modify the actual picked quantity.

9. If you selected Confirm in background, you will receive the following pop-up box asking if you would like to adopt the pick quantity. Select option 1 if you would like to include the picked quantity in the delivery. Press Enter to confirm the transfer order. You will receive a confirmation message that the pick was confirmed successfully.

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Goods Issue

The Goods Issue occurs when the materials are to be deducted from stock. This can occur when the parcel delivery company picks up the goods to be shipped to your customer, or they can be issued when your own delivery trucks drop them off at the customer location.

In this demo, we skip a couple of steps that may or may not occur in your company's business process, such as packing the materials into a box, or

transferring them to a truck that will ultimately deliver the goods to your customer. We will use the Outbound Delivery Monitor transaction to perform the Goods Issue. It is also possible to perform the Goods Issue directly from the Delivery document.

To run the Outbound Delivery Monitor, follow the menu path:

2. Select the Shipping Point and click the Execute icon to display a list of deliveries ready to be issued out of stock:

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3. Select the deliveries for which you would like to post the goods issue and

click .

4. You will receive the following pop-up box requesting you enter the Goods Issue date:

5. You may leave the default date (current date) and press Enter. You will receive a confirmation message that says your Goods Issue was successful. You have successfully completed the Outbound Delivery process.

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Decentralized Warehouse Management vs.

Centralized Warehouse Management

Decentralized Warehouse Management refers to using SAP as a standalone WMS or using another system as your WMS and SAP as your ERP.

If SAP is your WMS, you will run the warehouse tasks from SAP, such as storage bin management, inventory management at storage bin level, picking, packing, and creating shipping documents.

If SAP is your ERP system, but not your WMS, you will perform Inventory Management and valuation, Purchasing, Sales, and Shipping in SAP. Therefore, in a decentralized system, the WMS system of record controls the movements within the warehouse, and the ERP system controls the buying, selling, and valuing of the goods.

A centralized warehouse management scenario is one in which SAP handles both the ERP and WMS tasks. Of course, this is the recommended solution from SAP.

If you chose to not use SAP as the WMS, read through the documentation in the Implementation Guide very carefully, as there are many interfaces to consider. The configuration can be found in the IMG here:

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Lean Warehouse Management

SAP offers functionality that allows you to perform many of the inbound and outbound delivery processes, such as picking and using the outbound delivery monitor, without implementing 'full-blown' warehouse management. When people refer to 'full-blown' WM, they are often referring to managing your materials down to the bin level.

SAP allows you to still create transfer orders, and confirm them, reprint the pick lists, and split transfer orders to distribute the picking load.

To set up a new warehouse that uses Lean WM, you must configure a new storage location and assign it to a new warehouse and you must set up a picking storage type and a shipping area for deliveries.

The configuration for Lean WM is found in the IMG here: Logistics Execution – Shipping – Picking – Lean WM

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Unit 2: Enterprise Structure and Warehouse

Structure

The Enterprise Structure is often the first area to define when implementing your SAP solution.

As you configure your solution, you may need to adjust the Enterprise Structure you defined early in your project.

Definitions for many of the Enterprise Structure settings appear in this section because they are all used in some way in Logistics Execution, even though not all of them fall specifically under the LE module.

The Enterprise Structures are:

 Plant

 Storage Location

 Warehouse Number

 Shipping Point

The warehouse structures covered in this unit are the structures that describe the physical areas of your warehouse with the exception of the actual storage bins. The warehouse structures described in this unit are configured in the IMG, whereas the storage bins are actually master data in SAP. We will cover storage bins in Unit 3.

The Warehouse structures are:

 Storage Type

 Storage Section

 Picking Areas

 Storage Bins

In each section of this Unit, the instructor will demo the configuration and the students will then perform the exercise by creating their own Enterprise and Warehouse structures.

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Plant

Many considerations exist when determining what to call a „plant‟ in a company. Think of a Plant as a physical location – it does not have to produce or store anything. The Delivery Address that appears in the Purchasing documents comes from the Plant. So, if you have goods delivered to a different address, consider setting up another Plant.

The address can be maintained in the Storage Location or the Plant.

You can have more than one plant represent the same physical site; for

example, if you need to divide it up for other reasons, like having different MRP and forecast data. Also, materials may be valuated either at the company code or plant level; so, if you need to segregate material valuation, you can create multiple plants for that purpose. Would a sales office or administrative office be set up as a Plant as well?

Ask yourself the following questions before deciding whether to create one or multiple plants:

1. Do your materials need different MRP and forecast data? 2. Do your materials require different valuation methods? 3. Do you ship from or to more than one physical location? Here‟s how a plant relates to other organizational elements:

 The plant is assigned to only one company code.

 A company code can have several plants.

 Multiple storage locations can belong to a single plant.

 A single business area is assigned to a plant and to a division. Division will be defined when we cover the Sales area enterprise structure.

 A plant can be assigned to several combinations of sales organizations and distribution channels.

 A plant can have several shipping points. Shipping points will be defined when we cover the Sales and Distribution enterprise structure.

 A shipping point can be assigned to several plants.

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Enterprise Structure  Definition  Logistics-General  Define, copy, delete, check plant

The assignment of plants to company codes is maintained here: Enterprise Structure  Assignment  Logistics-General  Assign plant to company code

The following illustrations show the right and wrong ways to associate a plant to company codes. Plant 1000 Plant 2000 Company SP01 Plant 1000 Company SP01 Company SP02

Define Plant Configuration Demo and Exercise

Note: To access the Implementation Guide (IMG), execute Transaction Code SPRO and click on .

To configure a new Plant, follow these steps:

1. Navigate to the IMG and execute the following transaction: Transaction Code: (no unique transaction code, must use menu)

Enterprise Structure  Definition  Logistics-General  Define, copy, delete, check plant

A pop-up box appears with the instruction: “Perform the activities in the specified order”

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.

2. On the following screen, click on the copy icon:

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Field Value

From Plant 3000

To Plant XX00 (where XX is the number assigned to you by the instructor)

4. Once you have entered the 'from' and 'to' plant, you will receive the following confirmation screen:

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5. Choose the Define Plant activity and click .

6. Click the button on the screen and enter your plant number. Press Enter. Your cursor will be positioned on your plant.

7. Select the line with your plant and click the Display icon. 8. Change Name 1 and Name 2 on the following screen:

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9. Click on the Address icon to navigate to the Address Maintenance screen. Enter Name 1, Name 2, and the address information for your plant.

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Click and click to save your entries.

To assign your Plant to a Company Code, follow these steps:

1. Follow the transaction path in the IMG:

Enterprise Structure  Assignment  Logistics-General  Assign plant to company code

OR

Transaction Code: OX18

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3. Enter Company Code 3000 and your Plant, click , and save . Make sure you select your Plant and not one assigned to another

student.

You have now assigned your Plant to a Company Code.

Storage Location

Within a plant, you can have multiple storage locations. A storage location is where stock is physically kept in a plant. You must always create at least one storage location for a plant, whether you are storing inventory there or not.

The address for a storage location is only used for internal purposes and does not appear on purchasing documents. (An address on a purchasing document comes from the Plant field.)

You carry out physical inventory at the storage location level. Stocks are managed by quantity at the storage location and by value (also called the valuation level) at the plant or company code level.

If you use Warehouse Management (WM), you can assign one or more storage locations to a warehouse.

Note: The quantity of the inventory exists at the storage location level, the value is at the plant level, and the physical location of the inventory is at the Warehouse/Storage Type/Storage bin level.

Finally, you must create at least one storage location for a plant, whether you are storing inventory there or not.

Ask yourself the following questions to help determine how to set up your storage locations:

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The following relationships apply to Storage Locations within the Enterprise Structure:

 More than one storage location can exist in a plant.

 A storage location has at least one address.

 Stock is managed at the storage location level.

 Physical Inventory is carried out at the storage location level.

 A storage location can be assigned to one or many warehouses.

 At least one storage location must be created for a plant.

The configuration for Storage Locations is maintained in the IMG here:

Enterprise Structure  Definition  Materials Management  Maintain Storage Location

The ways to associate a storage location to plants are shown in the following illustration. Plant 1000 Plant 2000 Food Mart Storage Location 0010 Food Mart Storage Location 0020 Plant 1000 Plant 2000 Food Mart Storage Location 0010 Food Mart Storage Location 0020

Define Storage Location Configuration Demo and

Exercise

To configure a new Storage Location for your Plant, follow these

steps:

1. Navigate to the IMG and execute the following transaction: Transaction Code: OX09

Enterprise Structure  Definition  Materials Management  Maintain Storage Location

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When you create a Storage Location, you will be prompted for the Plant for which you are creating the Storage Location.

2. Enter your Plant and click . .

Field Value

Plant XX00 (where XX is the number assigned to you by the instructor)

3. Click on the icon. Enter values based on this table:

Field Value

Storage Location 00XX (where XX is the number assigned to

you by your instructor)

Description Storage Loc XX (where XX is the number

assigned to you by your instructor)

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selecting your Storage Location and double clicking on Addresses of

Storage Locations. However, you will need to work with your development

team to ensure this address overrides the address of the Plant on transfer documents, purchasing documents, and any other documents on which you print the physical address.

Warehouse

The combination of Warehouse Number plus Storage Type and Storage Bin represents the physical location of the stock item.

Not all companies use Warehouse Management (WM), but if you store and pick stock, you should implement WM. WM allows you to define a precise physical location within your warehouse where you store a particular item. Ask yourself the following questions when determining how to set up your warehouse numbers:

1. Do you have more than one physical location?

2. Do you have different storage strategies for different materials?

The following list shows how Warehouse Number relates to other enterprise elements:

 Warehouse Number contains descriptive text, not an address.

 Stock quantities, not values, are managed within a warehouse.

 You cannot assign multiple storage locations to the same plant warehouse number.

Define Warehouse Configuration Demo and Exercise

To configure a new Warehouse for your Plant, follow these steps:

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Enterprise Structure  Definition  Logistics Execution  Define, copy, delete, check warehouse number

2. Select the activity Copy/delete/check warehouse number and click .

3. On the following screen, click the copy icon:

4. Enter the Copy From and Copy To warehouse according to the following table and press Enter:

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Field Value

From Warehouse no. 301

To Warehouse no. YXX (where XX is your group number

assigned by the instructor)

5. You will receive the following confirmation that the warehouse has been copied:

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7. Select the Define warehouse number activity and click .

8. Click the button on the screen and enter your warehouse number. Press Enter. Your cursor will be positioned on your warehouse.

9. Select the line with your plant and change the description of the warehouse to include your XX group number:

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To assign your new warehouse to a plant and storage location,

follow these steps:

1. Navigate to the IMG and execute the following transaction:

Enterprise Structure  Assignment  Logistics Execution  Assign warehouse number to plant/storage location

2. Click and enter the following:

Field Value

Plant XX00

Storage Location 00XX Warehouse YXX

3. Save your entries.

Shipping Point

Shipping Point is a required field to determine the type of shipping and location from where shipping is to occur.

The following illustrates how Shipping Point interacts with other organizational elements:

 You can assign a single shipping point to several plants.

 Delivery initiates from a single shipping point, so all items within a delivery can belong to only one shipping point.

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 The Shipping Point is determined by the combination of plant, loading group, and shipping condition.

 Shipping Point is the key selection criteria when processing deliveries from the Delivery Due List and the Outbound Delivery Monitor.

Define Shipping Point Configuration Demo and

Exercise

To configure a new Shipping Point for your Plant, follow these

steps:

Enterprise Structure  Definition  Logistics Execution  Define, copy, delete, check shipping point

2. Select the activity Copy, delete, check shipping point and click .

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3. Click the Copy icon:

4. Enter the Copy From and Copy To shipping point according to the following table and press Enter:

Field Value

From Shipping Point 3000

To Shipping Point SPXX (where XX is the group number

assigned to you by the instructor) 5. You will receive the following confirmation:

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7. Select the Define shipping point and click .

8. Click the button on the screen and enter your shipping point. Press Enter. Your cursor will be positioned on your shipping point.

9. Select the line with your shipping point and change the description of the shipping point to include your XX group number:

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10. Click on the address icon and update the address information to match the address of the plant you entered in the previous exercise:

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11. Save your data.

To assign your new shipping point to your plant, follow these steps:

Enterprise Structure  Assignment  Logistics Execution  Assign shipping point to plant

2. Scroll down to your plant and verify your shipping point is assigned to your plant:

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The shipping point is already assigned to your plant because you copied the shipping point from one that was already assigned to your plant (Shipping Point 3000). If you had created the shipping point directly, not using the copy function, you would have had to assign it on this screen.

If you want to remove a shipping point that was automatically assigned to your plant, you will first have to remove the picking area assignments from the shipping point. This is done via the following IMG menu path:

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Storage Type

Storage Type represents a physical or logical storage area that has one or more storage bins. Common storage types include:

 Goods Receipt Area

 Goods Returns Area

 Picking Area

 High Rack Storage Area

Storage type data stored on the material master include storage bin stock – min/max quantities and replenishment quantities.

Storage Type has the following features:

 It has a short description, not an address.

 Physical Inventory is executed at the storage type/storage bin level

 Interim storage bins can be used for goods in movement

Define Storage Type Configuration Demo and

Exercise

To configure a new Storage Type for your Warehouse, follow these

steps:

Logistics Execution  Warehouse Management  Master Data  Define Storage Type

2. Click the button and enter your warehouse number. You will see the storage types have already been created. They were copied when you created the warehouse.

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3. Select one of the storage types and navigate to the details by clicking the Details icon.

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The following table describes the use of some of the key fields to be maintained for the Storage Type:

Field Description

SU mgmt active Storage unit management allows you to manage your stock at another level a detail called the storage unit. A storage unit can be a box or another method of storing your materials.

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Putaway Strategy The following putaway strategies are available in standard SAP:

We will cover putaway strategies in more detail in a later unit.

Stock placement requires confirmation

When placing materials into bins in this storage type, you can require the transfer order be confirmed.

SUT check active Selecting this checkbox requires that the Storage Unit type is specified .

Addn to stock It is possible to either allow addition to existing stock, or not allow it.

Block upon Stock placement

It is possible to automatically block a storage bin within the storage type when you place stock into it. You will then have to unblock the material to be able to pick them. Stock removal strategy The following stock removal strategies are

available in standard SAP:

We will cover stock removal strategies in more detail in a later unit.

Stock removal requires confirmation

Works the same as 'putaway requires confirmation'.

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Execute zero stock check Once SAP indicates that a storage bin has zero stock, it will trigger a zero stock check where a user must confirm the bin is indeed empty. The bin cannot be used until that confirmation is performed.

4. Since the storage types are already created for your warehouse in this demo/exercise, simply review the entries and exit the transaction.

Storage Section

A storage section is a logical grouping of storage bins within a storage type. It is used to group together storage bins that have similar usage for the purpose of putting stock away.

It is not mandatory to divide a storage type into storage sections. If you have high moving bins (maybe those lower to the floor) and lower moving bins (ones that may require a fork lift or ladder to reach), it may be wise to create storage sections.

Define Storage Sections

To configure new Storage Sections for your Warehouse Storage

Types, follow these steps:

Logistics Execution  Warehouse Management  Master Data  Define Storage Sections

2. If you copied your warehouse from a warehouse that had storage sections already defined, there will already be entries for your warehouse/storage type as shown below:

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3. Create any new entries you would like and save them. Otherwise, simply review the storage sections that have been created.

4. Since the storage types are already created for your warehouse in this demo/exercise, simply review the entries and exit the transaction.

Picking Areas

Where a storage section is used for putting away materials, a picking area is used for removal of materials from storage bins. A picking area represents a group of storage bins that has picking carried out in a similar method.

Pick lists can be generated by picking areas to even out the load of the pick and allow multiple warehouse people to pick from the bins simultaneously. You must also define if transfer orders for individual deliveries can be split based on the picking areas.

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Define Picking Areas Demo and Exercise

To configure new Picking Areas for your Warehouse Storage Types,

follow these steps:

Logistics Execution  Warehouse Management  Master Data  Define Picking Areas

2. If you copied your warehouse from a warehouse that had picking areas already defined, there will already be entries for your warehouse/storage type. In the demo, we copied from a warehouse that had picking areas defined, so we will review them here:

3. After reviewing the picking areas, exit the transaction.

Storage Bins

The storage bin represents the smallest space in a warehouse. It is where the inventory physically resides. It represents a physical 'coordinate' in the

warehouse. For example, if you have rows, shelves, and shelf positions in your warehouse, the bin may represent row 1, shelf 4, position 2, and you may call it storage bin 01-04-02.

You assign each storage bin to a warehouse, storage type, and storage section. You also define characteristics of the bin such as maximum weight, dimensions, and its type (small pallets storage, tub storage).

When developing your putaway strategies, you define which storage unit type is put away into which storage bin types.

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Storage Bins are actually master data in SAP. But first, you must configure

the following before creating storage bins:

 Storage Bin Types

 Blocking Reasons

 Storage Bin Structure

Define Storage Bin Types, Blocking Reasons and

Storage Bin Structure Demo and Exercise

Storage bin types allow you to break your storage bins down into groups – like large storage bin, small storage bin, etc. During the execution of the putaway strategy, SAP will select an appropriate storage bin type and storage unit type for your materials.

You can also block your storage bins. When you block your storage bin, you enter a blocking reason. You can configure custom blocking reasons to designate why you have blocked a storage bin.

You also have to define the storage bin structure.

To configure new Storage Bin Types for your Warehouse, follow

these steps:

Logistics Execution  Warehouse Management  Master Data  Storage Bins  Define Storage Bin Types

2. If you copied your warehouse from a warehouse that had storage bin types already defined, there will already be entries for your warehouse. In the demo, we copied from a warehouse that had storage bin types defined, so we will review them here:

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3. After reviewing the storage bin types, exit the transaction.

To configure Blocking reasons for your storage bins, follow these

steps:

Logistics Execution  Warehouse Management  Master Data  Storage Bins  Define Storage Blocking Reasons

2. If you copied your warehouse from a warehouse that had blocking reasons already defined, there will already be entries for your warehouse. In the demo, we copied from a warehouse that had blocking reasons defined, so we will review them here:

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To configure your storage bin structure for your Warehouse, follow

these steps:

Logistics Execution  Warehouse Management  Master Data  Storage Bins  Define Storage Bin Structure

2. If you copied your warehouse from a warehouse that had a storage bin structure already defined, there will already be entries for your warehouse. In the demo, we copied from a warehouse that had a storage bin structure defined, so we will review them here:

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3. After reviewing the storage bin structure, exit the transaction.

In Unit 3, we will create the Storage Bins for your warehouse since it is actually master data.

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Unit 3: Master Data

In this unit, we will cover the following Master Data and Master Data configuration used to support the Logistics Execution module:

 Material Master

 Material Master Configuration

 Storage Type Indicators

 Storage Unit Types

 Storage Section Indicators

 Special Movement Indicators

 Create Material Master Demo and Exercise

 Storage Bins

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Material Master

The purpose of the Material Master in Materials Management is to define how the material is to be handled in the various modules of SAP, such as Materials Management, Sales and Distribution, Production Planning,and Accounting, to name a few.

This unit covers the following lessons about the Material Master:

 Definitions of key fields in the Material Master

 How to configure the Material Master

 A demonstration and exercise to configure the key fields in the Material Master – those required to perform Materials Management transactions

Key Fields in the Material Master

The Material Master is a set of many views, sometimes referred to as User Departments that ultimately define how the material is to be handled in SAP. Views are represented by tabs across the top of the Display Material screen. Views in the material master include:

 Basic Data 1  Purchasing  MRP 1  MRP 2  MRP 3  MRP 4  Forecasting

 General Plant Data Storage 1/2

 Warehouse Management

 Plant Stock

 Storage Location Stock

This section of Logistics Execution training provides detailed information about the key fields needed to complete the many business processes handled in the Logistics Execution module.

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Data for the Demonstration:

Menu Path: Materials Management  Materials Management  Material Master  Display  Immediately Transaction Code: MM03 Field Value Material LES-252 Plant 3000 Storage Location 0301 Warehouse 301 Storage Type 005

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Basic Data 1 View:

The Basic Data 1 View provides information that is relevant across all Organizational Units and SAP Modules.

Basic Data 1 Key Fields:

Field Use

Description The Description field defines the material This field is searchable, but be warned! It is case sensitive!

SAPTip

If you are using a version of SAP below ECC 6.0, the Description field is case sensitive, a good tip is to enter all of your descriptions in CAPITAL LETTERS ONLY.

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Field Use

Base Unit of Measure How the material is measured

Warning! You can never change the base unit of measure for the material.

SAPTip

You can, however, maintain an alternate base unit of measure on the Additional Data screen, which allows you to maintain conversion factors – like from metric to English units.

Material Group The Material Group field lets you narrow the search for a particular material and you can produce reports based on the Material Group to report on use of certain material groups, consumption, values, etc.

Configuration of material groups are found in the IMG here:

Logistics-General  Material Master  Settings for key fields  Define Material Group

Division Division represents a group of materials and services, which belongs to a company division. For example, a car company may have a division representing each of their lines of automobiles or each of their types of automobiles (truck, sedan, etc.)

Configuration of Divisions can be found in the IMG here:

Logistics-General  Material Master  Settings for key fields  Define Divisions X-plant matl status From this drop down, you can select from a

list of restrictions how the material is purchased or placed in inventory. Setting this field on the Basic Data screen locks the status of the material across all plants. (The Purchasing view has a different field to set material status at the plant level.)

During configuration, you can set whether the user receives a warning or error message, if the status is set and active. Configuration of cross-plant material status can be found in the IMG here:

Logistics-General  Material Master  Settings for key fields  Define Material Statuses

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Valid from The Valid from field is the date from which the X-plant matl status field setting is valid. GenItemCatGroup Used for sales document processing, the

general item category group determines the item category to which the material is assigned.

Authorization Group Entering an authorization group code allows you to restrict access to materials. The codes can be created in configuration and you have your Security Administrator assign the codes to users when setting up their access to Material Masters.

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General Plant Data Storage 1 View:

The General Plant Data Storage views are maintained for a Plant and Storage Location. The data on this view describes how the material is stored in the Plant and Storage Location.

General Plant Data Storage 1 Key Fields:

Picking area Picking area defined here is used when you run Lean WM. If you are implementing full WM, you will maintain the picking area on the Warehouse Management view. Storage conditions SAP uses storage conditions to determine

the picking storage locations in combination with the shipping point and plant.

CC phys. Inv. Ind. The cycle counting indicator defines how often the material is to be counted using the cycle counting technique of physical

inventory. The cycle counting indicator can either be manually set or you can allow SAP to set it based on usage. Higher volume moving items will be counted more often.

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CC fixed Selecting the CC fixed indicator will prevent SAP from overriding the cycle counting indicator (the previous field), when running the cycle counting indicator update

program.

General Plant Data Storage 2 View:

General Plant Data Storage 2 Key Fields:

Weight/Volume The values in this section will assist SAP in determining if the material can fit in specific spaces or boxes.

Stock determ. Group The combination of the stock determination group and stock determination rule set at the plant level define the stock

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Warehouse Management 1 View:

Warehouse Management 1 Key Fields:

WM unit The unit of measure used for warehouse management activities for this material. Picking storage type This field is misleading. It is actually not

used for transfer orders. Rather, it is used in rough-cut planning and detailed planning. Stock Removal This indicator is a component in determining

the stock removal storage type.

Stock placement This indicator is a component in determining the stock removal storage type.

Storage Section Ind. This indicator is a component in determining the stock removal storage section.

Bulk storage The bulk storage indicator assists in determining how bulk materials are to be put into stock (stacked, positioned). Special movement Use the special movement indicator in

conjunction with the warehouse

management movement type to drive the material to an alternate storage type.

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2-step picking Setting this indicator marks the materials to be picked using the 2-step picking process. Allow addn. to stock Defines that a material can be added to a

bin that has the same material already in it.

Warehouse Management 2 View:

Warehouse Management 1 Key Fields:

LE quantity Loading equipment quantity defines how a material is to be packed onto a pallet when placing it into stock

Un The unit of measure of the LE quantity. SUT The storage unit type of the LE quantity. Storage Bin If you want to have a fixed bin for the

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Picking Area The picking area groups together storage bins for the purpose of picking, similar to how a storage section groups bins for the purpose of putaway. The field is used in rough workload planning.

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Plant Stock View:

The Plant Stock view displays the quantities of the stock and stock type in inventory.

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Storage Location Stock View:

The Storage location stock view displays the quantity and type of stock in the storage location.

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Material Master Configuration

In this section, we will cover the following configuration that supports the material master fields relevant to Logistics Execution.

 Storage Type Indicators

 Storage Unit Types

 Storage Section Indicators

 Special Movement Indicators

Storage Type Indicators

Storage Type Indicators allow you to set up an order of priority when selecting a storage type for putaway or picking.

Logistics Execution  Warehouse Management  Master Data  Material  Define Storage Type Indicators

2. If you copied your warehouse from a warehouse that had storage type indicators already defined, there will already be entries for your warehouse. In the demo, we copied from a warehouse that had storage type indicators defined, so we will review them here:

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Storage Unit Types

Storage Unit Types provide a mechanism to define various types of containers in which you store your materials (boxes, pallets, etc.).

Logistics Execution  Warehouse Management  Master Data  Material  Define Storage Unit Types

2. If you copied your warehouse from a warehouse that had storage unit types already defined, there will already be entries for your warehouse. In the demo, we copied from a warehouse that had storage unit types defined, so we will review them here:

3. After reviewing the storage unit types, exit the transaction.

Storage Section Indicators

Storage Section Indicators allow you to classify your materials with some basic characteristics to group them together and define storage type searches based on this classification. Some examples of this classification may be bulk items or fast moving items.

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Define Storage Section Indicators

2. If you copied your warehouse from a warehouse that had storage section indicators already defined, there will already be entries for your warehouse. In the demo, we copied from a warehouse that had storage section indicators defined, so we will review them here:

3. After reviewing the storage section indicators, exit the transaction.

Special Movement Indicators

Special Movement Indicators allow you to define a different movement type and different interim storage types to be used when a material master is created with a special movement indicator.

Logistics Execution  Warehouse Management  Master Data  Material  Define Special Movement Indicators

2. If you copied your warehouse from a warehouse that had special movement indicators already defined, there will already be entries for your warehouse. In the demo, we copied from a warehouse that had special movement indicators defined, so we will review them here:

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Create Material Master Demo and Exercise

In this section, the instructor will complete a demo of how to create a material master and the students will then complete an exercise to create a material master.

Data for Demo and Exercise:

Field Value

Material <blank> Industry Sector M

Material Type HAWA – Trading Goods

Plant XX00

Storage Location 00XX

Warehouse YXX

Storage Type 005

Copy From Material LES-252

Copy From Plant 3000

Copy From Storage Location

0301

Copy From Warehouse 301

Copy From Storage Type 005

1. To create a material master follow the menu path:

Logistics – Logistics Execution – Master Data – Material – Material – Create – Immediately

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3. Press Enter and select the following organizational levels:

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Field Value

Material Description Add your Group Number to the description

5. Press Enter to navigate to the next view, Purchasing, and leave the copied fields.

6. Press Enter to accept the copied values on the next two views, Plant data/stor 1 and 2.

7. Press Enter to navigate to the Warehouse Management 1 view. Complete the fields as described in the screen shot and table below:

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Field Value

Picking storage type 005

Stock Removal FIX

Stock Placement FIX

Storage Section Ind. 002

8. Press Enter to navigate to the Warehouse Management 2 view. Complete the fields as described in the screen shot and table below:

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Field Value

LE Quantity 1000

Un EA

SUT BX1

Maximum bin quantity 1000

Replenishment quantity 200

9. Press Enter through the Accounting view and click Yes when prompted to save the material master.

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Mastering SAP