EXP_0002

LO530 Warehouse Management

0 0.2 0.3 0.4 0.5 In version 4.5, the applications of Warehouse Management, Shipping and Transportation were brought together to form the Logistics Execution system. As part of SAPs Supply Chain Management, these components are combined to build strong links between processes of Production, Procurement and Sales and Distribution.

0.6 Logistics Execution supports the flow of materials along the supply chain, not only between entities, but also within the warehouse for the entire supply chain management from the supplier through the customer.

The Warehouse Management system is embedded in the total SAP system as well as in the material flow of the entire organization.

Example:If a goods receipt is posted in the Inventory Management system, the stock level is increased in the WM system. Because of the goods receipt posting, an action is started in the WM system that notifies the user that material must be stored in the warehouse.

0.7 What tasks does the SAP Warehouse Management system accomplish?

Management of complex warehouse structures with various types of storage areas (high rack random storage, block storage, fixed bin storage, and so on) within one or several plants down to the storage bin level.

Planning and Monitoring with such tools as the Warehouse Activity Monitor, Rough Workload Estimate, Time Performance and the Delivery Monitor.

Processing of all stock movements such as goods receipts, goods issues, stock transfers using stock placement and stock removal strategies, also taking the characteristics of the individual materials into account.

Direct Radio Frequency support.

The control of information transfers between the WM system and automated control systems.

0.8 The Warehouse Management system is integrated with other SAP system modules that provide the following functions:

All goods movements in the WM system affect data posted in the Inventory Management system

The handling of inventory samples in connection with Quality Management

The supply of materials in connection with the PP/PI systems

The processing of deliveries in conjunction with the Sales and Distribution Shipping system

The processing of items through the Transportation system

The processing of transfer orders using hand-held terminals

Passing data to Human Resources for Incentive Wages

0.9 0.10 Goods receipt: physical processWhen 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.

0.11 1. The goods receipt is entered in the Inventory Management system:

material document created in IM

accounting document created in IM

quant created in the GR area in WM

transfer requirement created in WM

2. The transfer order is created based on the transfer requirement.

3. The goods become available, upon confirmation of the transfer order. Also, any differences noted at put away are entered at this time.

4. Differences, if any, are moved to a storage type for differences, and when cleared in IM:

a material document is created and

an accounting document is created

There are opportunities for automation at various points throughout the process.

0.12 A Transfer Requirement (TR) is created in order to plan a stock movement.

The TR indicates a need to move a specific quantity (quant) of a material into the warehouse (stock placement) or to move a quantity out of the warehouse (stock removal).

The TR provides information about anticipated stock movements.

The TR is later converted into one or several Transfer Orders (TO).

0.13 A transfer requirement (TR) contains the following information:

What is to be moved (material number)?

How much is to be moved (quantity)?

How is it palletized (material master)?

What is the reason/origin (movement type / purchase order)?

What has already been moved (if partial)?

List display functions

single transfer requirement (transfer requirement number)

all TRs for a material

all TRs for a storage type

all TRs for a requirement (original document)

all TRs for a material document

0.14 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.

0.15 The transfer order is an instruction to move materials from a source storage bin to a destination storage bin within the warehouse complex. Transfer orders contain the following information:

Material number

Quantity to be moved

Source, destination and return storage bins

The information that the transfer order needs comes from several sources:

Material master record

Warehouse management movement type

Strategies for finding the source or destination storage bins

User entries

Source documents, such as transfer requirements and deliveries

0.16 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.

0.17 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.

A user exit is also available for this process.

0.18 When you confirm a transfer order or a transfer order item, you are verifying that the required quantity of material has actually been transferred from one location to another and that the processing of the transfer order or item has been completed.

The TO Confirmation function allows three options:

Standard 1st screen - confirm actual quantities equal to target quantities

2nd screen - enter differences, if any (one screen per line item)

Input List One screen to confirm quantities and enter differences

Pack ship unit - switch to packaging dialog of the delivery where you can create shipping units.

Whether or not to automatically confirm transfer orders is set in Customizing.

0.19 0.20 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.

0.21 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

There are opportunities for automation at various points throughout the process.

0.22 A transfer requirement (TR) contains the following information:

What is to be moved (material number)?

How much is to be moved (quantity)?

How is it palletized (material master)?

What is the reason/origin (movement type/reference?)

What has already been moved (if partial)?

List display functions:

single transfer requirement (transfer requirement number)

all TRs for a material

all TRs for a storage type

all TRs for an account assignment

all TRs for a material document

0.23 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.

0.24 For each stock removal a transfer order is created, which is used to transfer the goods from the warehouse to the GI area.

0.25 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.

0.26 As a rule, transfer orders are printed immediately after they have been created.

You can print transfer orders in different ways:

as a single document (one TO item per page)

as a combined document (multiple TO items on one page)

as a picking list (several TO with different sort options per page)

You can print with or without a bar code.

Labels can be printed for each transfer order.

0.27 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.

0.28 It is possible to cancel transfer orders that have not yet been confirmed in the WM system.

If, while placing goods into stock, you find a storage bin that cannot be used or if you determine that for some reason, a stock removal cannot take place, it is possible for you to cancel a transfer order. You can notify an external system of a transfer order cancellation from the WM system and notify the WM system of a cancellation from the external system.

After a transfer order is canceled, reference documents (for example, the TR) are reopened.

0.29 0.30 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.

1-1Materials 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.

1-1-1Check the stock situation of the material T-BW03-## before you begin.

PlantSlocStorTypeAvailableFor PutawayPick Quantity

100001##001

1-1-2Add 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-##


100001##001

100001##902

TOTAL

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

Quant Number _______ Goods Receipt Date ____________________

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

1-2-1Display all TRs for your warehouse. (Add this task to your Favorites. Change the text to Display Transfer Requirements by Storage Type.)

1-2-2Is 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.

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

1-2-4What palletization data is proposed? ______________________________

1-2-5How does the system default the palletization data? __________________

____________________________________________________________

1-2-6What destination storage bins are proposed? ________________________

1-2-7Before posting, determine what stock placement strategy was used to determine the destination of the final storage bin.

Environment ( Storage Bin Search log

Putaway Strategy _____ _____________________

Save the TO. TO Number _________________

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


100001##001

100001##902

Is the material available in the destination storage bin? ____

Why or Why Not? _______________________________________________

_______________________________________________

1-3Confirm the Transfer Order. (Add this task to your Favorites. Change the text to Confirm TO, One Step).

1-3-1Once again, display the stock overview for the material T-BW03-##. Is the material now available in the destination storage bin? _______


0.31 Solutions 1


Topic: Goods Receipt

1-1

1-1-1Logistics ( Logistics Execution ( Internal Whse Processes ( Bins and Stocks ( Display ( Total Stock per Material (Warehouse Management)Field Name or Data TypeValues

Warehouse Number1##

Material NumberT-BW03-##

Plant1000

Select MM Stock Figures to see Inventory Management total stock.

1-1-2Favorites ( Add. Select Favorites ( Change to modify the text.1-1-3Logistics ( Logistics Execution ( Inbound Process ( Goods Receipt for Purchase Order, Order, Other ( Enter Goods Receipt for Purchase Order1-1-4 Select the match code icon in the first blank space next to Purchase Order to search for the Purchase Order Number. Select M:Purchasing Documents for Material.

Field Name or Data TypeValues

Material NumberT-BW03-##

Plant 1000

Select the Purchase Order and choose enter. Select Item OK to receive the entire lot of 100 pieces. Enter Storage Location 01##. Save/Post the receipt.

1-1-5 Favorites ( Warehouse Management Stock Overview.1-1-6 From the Stock Overview, select the Plant Summary line for Storage Type 902 with a single click on the line. Then select Bin Stock. Position your cursor on the Quantity and select it to display the quant.

1-2

1-2-1Logistics ( Logistics Execution ( Internal Whse Processes ( TranRqmt ( Display( By Storage Type. (Favorites ( Add, Highlite the line and choose Favorites ( Change to change the description)1-2-2Yes, a Transfer Requirement was created by the Goods Receipt transaction.

1-2-3 Select the TR line item, then choose TO in foregr.1-2-4The 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.

1-2-6Select 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.

1-3Logistics ( Logistics Execution ( Internal Whse Processes ( Stock Transfer ( Confirm Transfer Order ( Single Document ( In One Step (Favorites ( Add, Highlite the line and choose Favorites ( Change)Alternate Menu Path: Logistics ( Logistics Execution ( Inbound Process ( Goods Receipt for PO, Order, Other Transaction ( Putaway ( Confirm TO ( Single Document ( In One Step Enter the TO Number. Review the active worklist and save to confirm.

1-3-1 Favorites ( Warehouse Management Stock Overview.

The materials are now available in the destination storage bin.

0.32 Exercises 2


Topic:Goods Issue

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

Create a Goods Issue in Inventory Management and follow through the removal process in the warehouse.

A Goods Issue to a Cost Center is often referred to as a Miscellaneous Issue. Typically, these types of issues are done in the warehouse when other departments are requesting materials outside of regular production or maintenance; for example, materials that are stocked in the warehouse, but not consumed by the production process. These materials are to be issued from the warehouse and expensed to a departments cost center.

In this exercise, your favorite Engineer has requested 5 Shafts, material T-BW02-## for some testing. These shafts will be expensed to the cost center of the Engineering Department (Cost Center 1000). In your company, the 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.

2-1An 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-##.


100001##001

2-1-2Post a goods issue transaction issuing the 5 shafts (T-BW02-##) to Mr. Jones cost center.

2-1-3

Note the stock balances for T-BW02-##.


100001##001

100001##911

TOTAL

2-2 Display all TRs for material T-BW02-##. (Add this transaction to your favorites and change the description to Display TR by material.) Select the one created by the GI transaction and determine the following:

Transfer Requirement number ______________________________

Requirement tracking number ____ ________________________

Destination Storage type & bin number _______ _________________

Material Document number ________________________________

Material Document number is contained in the Header data.

2-3 Create a TO in the foreground with reference to your TR.

2-3-1 The Storage Type Search displays the storage type sequence the system will use to search for the stock to remove. What are they?

__________ __________

Where does this sequence come from? _____________________________

_____________________________________________________________

2-3-2

Let the system select the quant for removal.

What removal strategy did the system use to select the quant for removal?

________________________________________

Environment ( Storage Bin Search Log

2-3-3Display the Transfer Order. Which bins are affected?

Stor. Type

Stor. Bin

Source

_________________ ________________

Destination _________________ ________________

Return _________________ ________________

2-3-4Display the stock balance for T-BW02-##.


100001##001

100001##911

TOTAL

2-4Confirm the Transfer Order.

2-4-1Confirm that you have completed movement.2-4-2Once again, view the stock overview.


100001##001

0.33 Solutions 2


Topic: Goods Issue

2-1

2-1-1Favorites ( Warehouse Management Stock Overview2-1-2Logistics ( Logistics Execution ( Outbound Process ( Goods Issue for Other Transaction ( Enter Goods IssueField Name or Data TypeValues

Movement Type201

Plant1000

Storage Location01##

Cost Center1000

MaterialT-BW02-##

Quantity5

2-1-3Favorites ( Warehouse Management Stock Overview2-2Logistics ( Logistics Execution ( Internal Whse Processes ( TrnsRqmt ( Display ( By Material. Favorites ( Add, highlight the entry and choose Favorites ( Change.Field Name or Data TypeValues

Warehouse1##

MaterialT-BW02-##

Plant 1000

Storage Location01##

2-3Select the appropriate TR from the list display, then choose TO in foregr.

2-3-1001, 002. These storage types default from the Storage Type Search Sequence table in customizing.

2-3-2Select 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).

2-3-3Logistics ( Logistics Execution ( Internal Whse Processes ( Stock Transfer ( Display Transfer Order ( By Material2-3-4Favorites ( Warehouse Management Stock Overview.2-4Favorites ( Confirm TO, One Step2-4-1Save the TO.

2-4-2Favorites ( Warehouse Management Stock Overview. SAP AGLO5302-1