SAP WAREHOUSE MANAGMENT

CONTENTS

1. INTRODUCTION TO WAREHOUSE MANAGEMENT 


2. WAREHOUSE ORGANIZATIONAL STRUCTURE




I) WAREHOUSE NUMBER



II) STORAGE TYPE:-

STORAGE TYPE INDICATOR
STORAGE TYPE SEARCH
MOVEMENT TYPE REFERENCES



III) STORAGE SECTION:-


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STORAGE SECTION INDICATOR
STORAGE SECTION SEARCH



IV) STORAGE BIN:- 

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STORAGE BIN TYPE


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STORAGE UNIT TYPE

STORAGE BIN TYPE SEARCH

BLOCK STORAGE BIN

BIN STRUCTURE

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FIXED BIN

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LIST OF EMPTY STORAGE BINS




V) QUANT


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3. TRANSFER REQUIREMENT

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CREATE TRANSFER REQUIREMENT MANUALLY

AUTOMATIC TRANSFER REQUIREMENT PROCESS 

CREATE TRANSFER REQUIREMENT FOR REPLENISHMENT OF A FIXED BIN:-

DELETE TRANSFER REQUIREMENT

CREATE TO FROM TR:

4. TRANSFER ORDER

MANUAL TRANSFER ORDER(TO) CREATION

IMMEDIATE TRANSFER ORDER(TO) CREATION

AUTOMATIC TRANSFER ORDER(TO) CREATION

CONFIRM TRANSFER ORDER(TO)

CREATE TRANSFER ORDER(TO) W.R.T POST CHANGE NOTICE(PCN) NUMBER

CANCEL TRANSFER ORDER

2-STEP PICKING PROCEDURE



5. POST CHANGE NOTICE(PCN)

Page 1
 INTRODUCTION TO WAREHOUSE MANAGEMENT
The warehouse of today no longer runs on a paper-based system. The advances of computer-
based WMSs, computer-enabled warehouse equipment, radio fre-quency (RF), and radio
frequency identification (RFID) have transformed the warehouse into a technological entity.

In 1990s by the release of SAP R/3 4.6, many companies included the conversion to SAP WM as
part of their up- grade strategies. The functionality of SAP WM has expanded further as part of
the latest version, SAP ECC 6.0.

Why WM when we have IM?

IM as part of material management can only provide information on the total quantity of
material in stock.
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WM enables a precise specification of the exact location of a particular quantity of a material

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and informs you whether this quantity is currently available in a storage bin or on the move.

SAP WM Functionality?
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1. SAP WM is the functionality that provides for the management of inventory in
different specific locations.
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2. The WMS allows you to map your entire warehouse complex in detail to storage bin
level.
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3. Warehouse management systems often utilize automatic identification and data

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capture technology, such as barcode scanners, mobile computers, wireless LANs and
potentially radio-frequency identification (RFID) to efficiently monitor the flow of
products. Once data has been collected, there is either a batch synchronization with, or a
real-time wireless transmission to a central database. The database can then provide
useful reports about the status of goods in the warehouse.

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WAREHOUSE ORGANIZATIONAL STRUCTURE

Company Code
|
Plant
|
Storage Location
|
Warehouse Number
. A
|
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Storage Type
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|
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Storage Section/Picking Area

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n Storage Bin
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D o Quant

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WAREHOUSE NUMBER:-
• 3 Digits

Highest organizational unit in WM

It represents a physical building or Distribution center

• Customizing:

IMG—>Enterprise Structure-
>Definition->Logistics
Execution-
>Define,create,copy,Delete

A
Warehouse Number
.
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• Number Range Assignment:

IMG->Logistics Execution->Warehouse
Management->Master Data->Define Number Range

• Control Parameters:

IMG->Logistics Execution->Warehouse
Management->Control Parameters of
Warehouse

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• Assign Warehouse Number to Plant/Storage Location

IMG—>Enterprise Structure->Assignment->Logistics Execution->Assign Warehouse
Number to Plant/Storage Location.

Tables:

T300 WM Warehouse Numbers

T300T warehouse number Descriptions
T320 Assignment IM Storage Location to WM
Warehouse Number

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A warehouse number has the following characteristics:
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➔ A warehouse number does not have an address, but a short descriptive text.

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➔ It is possible to store material data that is specific to a warehouse number.

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➔ Within each warehouse number, the stock figures are managed as quantities, not as
values.

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➔ One Warehouse number can be assigned to multiple Storage Locations

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But one storage location can be assigned to one ware house Number.

STORAGE TYPE:- en
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A physical or logical storage area that can be defined for a warehouse.

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Features:
—> A Storage type does not have an address, but a short description.
—-> It is possible to maintain storage type specific material data.
—> Within a storage type inventory is executed for each storage bin.
Examples:

Bulk Storage
Open Storage
High Rack Storage
Picking Area
Shelf Storage

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 . A
• s ha
IMG—>Logistics Execution—>Warehouse Management—>Master Data->Define
Storage Type
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Interim Storage Area: Temporary storage area shared by both IM and WM

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—>900-999


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—>EX: Goods Receipt area,Goods Issue area,Post change Zone,Interim storage
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for Differences


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—>Copy from warehouse 001 when creating a new warehouses
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I)
Do INDICATOR:-
STORAGE TYPE

Using the storage type indicator, you can ensure that certain materials are only removed
from certain storage types or placed into certain storage types in the order of preference
you have defined.

II) STORAGE TYPE SEARCH:-

Now define the sequence of storage types to be searched by the system for stock putaway
and stock pick proposals.
If you are using the 2-step picking procedure, make sure that the destination storage type
of the pick step is used as the source storage type for distributing the accumulated
quantities. For the storage type search with the 2-step picking process, define activity
type "2" (Column "Activity")

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III) MOVEMENT TYPE REFERENCES:-

In the Warehouse Management component, you can set up the system so that for each
WM movement types certain storage types are proposed.

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T301 WM Storage Types
T301T Storage Type Descriptions

T305 Storage Type Indicators

T305T Text for Storage Type
Indicator

T30A WM Picking Areas


T30AT Picking Area Descriptions

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STORAGE SECTION:-

Storage section is an organizational subdivision of a storage type that groups together

storage bins with similar features for the purpose of putting away stock.

Storage section is the middle level between 'Storage type' & 'Storage Bin'.
Suppose for eg. Storage Type: High Rack Storage Area.
you can divide into sub groups:
Storage Section1: Fast Moving Items.
Storage Section2: Medium Moving Items.
Storage Section3: Slow Moving Items.

That means whenever you do the goods movement the material will placed or replaced

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from special area that called section. It is make your process very simple. because if you

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don't have section in storage type then your stock placement is not specific place….

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r at • At least one storage section
must be defined for storage

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I) STORAGE SECTION INDICATOR:-

You can assign a storage section indicator to each material. This indicator enables you to
have materials placed into storage in special storage sections.

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II) STORAGE SECTION SEARCH:-
For each storage section indicator, you can have up to ten storage sections in one storage
type. During put away, the system first looks for a bin in the first storage section; if it
does not find a suitable bin here, it goes on to the next section, and so on.

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We can define
storage section
indicator in Material
Master.

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 We can activate
storage section 

check either by
adding “X” here

(OR)

BY clicking check mark in

Storage Type.

T302 WM Storage Sections

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T302T Storage Section Names
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T304 Storage Section Indicators
T304T Text for Storage Section Indicator
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STORAGE BIN:- LS01N/LS10 by
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It is a physical Location where materials are stored

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• Smallest unit in the warehouse organization structure

• It can be a location a shelf or a container in a rack.

• It is Master Data in WM.


Identified by coordinate, it can have maximum of 10
characteristics

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• It can optionally be assigned to storage Bin Type.

1) Create Storage bin Manually(LS01N)

2) Create Storage bin Automatically(LS10)

LS01N LS10

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i) STORAGE BIN TYPE:-

• The storage bin type is a grouping that can be assigned to storage bins of a similar
nature.

• For example, a storage bin type could be created called Bin Height One Meter. This
grouping could then be assigned to bins in the warehouse that are one meter in height.

• IMG ︎ —>Logistics Execution ︎—> Warehouse Management ︎—> Master Data—> ︎

Storage Bins ︎ —> Define Storage Bin Types.

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• We can assign Storage bin type to storage Bin.

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It plays important role in SUM(Storage Unit Management)

It can control SU Type can be put away in which types of bins.

ex: Large storage bins cannot put in small storage bins, to reduce this kind of
damage storage bin type will be useful.

ii) STORAGE UNIT TYPE:-

• With the indicator for the storage unit

type, it is possible to distinguish
pallets or other containers on which a
material is stored or transported.

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• The storage unit type is taken into account during stock placements if you have
activated the "storage bin type search”

• IMG ︎ —>Logistics Execution ︎—> Warehouse Management ︎—> Master Data—> ︎

Material︎ —> Define Storage Unit Types.

iii) STORAGE BIN TYPE SEARCH:-


We can manage different sizes of storage bins within a storage type—->The storage bins
are determined during the storage bin search

• It is generally known which loading equipment (storage unit type) is required to place
the material into stock. This information is either
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Ø Entered manually OR
Ø Can be found in the material master
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In this case, the SAP System suggests the relevant storage unit type for the putaway as a
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default.

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• Up to 10 storage units may be assigned per storage type.
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If more than 10 storage units are required per storage type, it is possible to activate the
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weak SUT check.
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To do this, enter *** in this table as the allowed
SUT. This has the effect that, in theory, all SUTs are

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allowed for this storage type.

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The system then searches for a bin that matches

the storage unit type according to the allowed storage
bin type per SUT.

LE—>WM—>Strategies—>Activate Storage Bintype search

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 . A
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SUT Check Active:If we activate it,System will check for storage unit type

and respective storage bin type and then storage bin.

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SU Mgmt Active: It is not necessary to activate this when SUT check is needed.


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that are coming into warehouse.e
If we activate it, system will search for unique storage unit number for each palletization

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iv) BLOCK STORAGE BIN:- LS06/LS08

In the Warehouse Management system, you can block the following units for stock
placements and stock removals:
• Storage types
• Storage bins
• Quants
• Storage unit

You can enter the reason for the block (for example, assembly work) using the indicator
"Blocking Reason".

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To block or unblock storage bins, from the SAP menu choose LogisticsLogistics

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Execution Internal Whse Processes Bins and Stock Block.
a)Storage bin selection-Transaction LS06

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 . A
b*)RANGE OF STORAGE BINS-TRANSACTION LS08.
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You can block and unblock thestorage bins for a specific areawithin a warehouse number

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andstorage type, for example, whenthe conveyor equipment is not working.

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c) Blocking Storage Bins for theWhole Storage Type-Transaction LS12.
Set the required putaway orpicking blocks and choose,Save.

d)Block and unblock the quant material- transaction LS07.

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e)Blocking Storage Bins In BulkStorage According To A TimeLimit For Putaway-

Transaction LX05
You enter the number of days after the first transfer to the row(storage bin), after which
no goods can be transferred into the row .

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v) BIN STRUCTURE:- LS10

SPRO - SAP Reference IMG -> Logistics Execution -> Warehouse Management ->
Master Data -> Storage Bin -> Define Storage Bin Structures

Let's understand with an example to answer your questions, suppose you wanted to create
the bins with co-ordinate elements as A-01-01
where A represents the shelf,
first 01 for stacks
and second 01 for levels.

Step1: Template

The indicators used in standard SAP are:
. A
'A' for alphabetic characters, 

'N' for numeric characters 

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and 'C' for common characters or the characters which remain unchanged.

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Rule: We must always use all 10 digits of the template field. If you don't want to use
all the places enter 'C' for blank, we cannot use special characters '/' in the bin structure.

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Now lets represent the bin coordinates A-01-01, the template will form as ACNNCNNCC

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Step2: Structure
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Lets look at our example A-01-01, if you want the increment separately for Shelf, stack

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and level, then it should be represented with ABBCC

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Your question: about . "STRUCTURE" - it's written as AA BB CC - could anybody
explain why it's written as ?? can it be changed as BB AA CC / AB CA CB like that ??
there is any convention ??

Answer: If it is written as AABBCC, then you must be representing the shelf, stack and
level with 2 digits and the increment is separate for each coordinate (AA represents to
increment shelf 2 digit together, similarly BB and CC for stack and level). It cannot be
changed as BBAACC, because it does not make sense to increment in uneven way for the
bin coordinates, it should always be represented in a structured way of the bin
coordinates.

Step3: Specify start value, end value and increment value

Start Value:- starts which discriminates shelf no. / stack no./ level no

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End Value:- Ends which discriminates shelf no. / stack no./ level no
Increment Value:- Increment is defined for alpha and numeric characters
in the template and it is decided on how you want the bin coordinates to be
incremented (represented)

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Display Empty storage Bin: LS04 r
vi) LIST OF EMPTY STORAGE BINS:- LX01

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vii) FIXED BIN:-

• Iisnmapped
general fixed bin concept or fixed bin put away is nothing but every material
with unique storage bin , so that when put away is happening ,
system will suggest the respective bin to storage that particular material.

• Two steps:



1. As a first step we need to assign the put away strategy “F- Fixed bin” to
the storage type 

Configuration path : IMG –> Logistics Execution –> Warehouse Management
–> Master data –> Define Storage type

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2. Every material is assigned with the storage bins of that particular storage type

management 2 view
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. This can be done in assigning the storage bin in material master – warehouse

T.Code : MM02 / MM01

QUANT:-

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A quant is a quantity of material with the same material number and the same batch
number (if the material is batch managed) in a single storage bin.

—> When you store goods in an empty storage bin in WM, the system automatically
creates a quant in this bin. The system automatically assigns a quant number.

—> The quant is automatically deleted by the system when the material quantity is
picked.

—> In the quant record, the system manages the data of the materials grouped in the
quant. This data includes.
• Quant identification
• Plant
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• Material number
• Batch number
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• Stock category
• Special stock indicator and number

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Display Quant Record:-
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1. Using T-Code: LS23

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2. Using Batch Status Report: LX03

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If we click on Storage bin(01-01-01), It will take you to Display bin screen.

If we click on Material (103-100),It will take you to Quant screen.

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Changing Quant Data
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To change data for a single quant:

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1. Choose Logistics > Logistics Execution > Internal Whse Processes > Bins and Stock >
Display > Single Displays > Quant from the SAP menu.
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want to change and choose ENTER.
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2. Enter the warehouse number, the storage type and the bin coordinate of the quant you

3. To access the quant, choose Stock.

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If there is more than one quant in the storage bin, a list of quants appears.
4. To change a quant in the list, position the cursor on the quant you want to display and
choose Change Quant.
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5. Make changes to the quant on the detail screen. Data that cannot be changed is not
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accessible.
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6. Save the changes to the data base.

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 TRANSFER REQUIREMENT

A REQUEST TO TRANSFER MATERIALS FROM SOURCE BIN TO

DESTINATION BIN IN A WAREHOUSE COMPLEX AT PARTICULAR TIME
CALLED TR.

Importance:

1. It provides information on goods movement that posted from IM to WM.

2. It will initiate the Goods movement in WMS.

Creation:

1. Manually
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2. Automatically

i) CREATE TRANSFER REQUIREMENT MANUALLY:-

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LB01 : Create TR
LB02 : Change TR
LB03 : Display TR
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LB11 : TR for Material
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LB12: TR for Storage Type
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Note:

Here the important check is “Processing Status”.

We can see whether TO is created or not .
We can see that uncheck at “Processed”,It means TO is
not yet created.

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ii) AUTOMATIC TRANSFER REQUIREMENT PROCESS :-

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1. IMG—> LOGISTIC EXECUTION—> WAREHOUSE MANAGEMENT—->

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INTERFACES—> INVENTORY MANAGEMENT—>DEFINE MOVEMENT TYPES—->

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ASSIGN WM MOVEMENT TYPE REFERENCE TO IM MOVEMENT TYPE

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Example:

In the material document we can see TR creation automatically,If plant is linked with a
warehouse and automatic TR assignment is activated for warehouse.

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2. IN ADDITION TO THE HEADER INFORMATION, YOU CAN SELECT THE
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AUTOMATIC TO CHECK- BOX TO ALLOW AN AUTOMATIC TRANSFER
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ORDER. IF THIS IS SELECTED, TRANSFER ORDERS ARE CREATED BY BATCH

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INPUT USING REPORT RLAUTA10.

iii) CREATE TRANSFER REQUIREMENT FOR REPLENISHMENT OF A

FIXED BIN:-

You can use a transfer requirement to add material to the stock in fixed storage bins. The
system can automatically create transfer requirements for the required
quantities.Transaction : LP21

Instead of the system calculating the quantity necessary for replenishment, the warehouse
staff can manually determine the level required and create a transfer requirement for this
amount.

To ensure that a manual transfer requirement can be created to replenish the fixed bins,
the storage type must be configured with the correct movement type.

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To create the transfer requirement, the warehouse user must enter the plant, stor- age location,
warehouse number, and storage type. Figure 4.12 shows these fields filled in as well as fields
such as the requirement type and requirement number, transfer priority, and planned date and
time. The planned date should always be in the future. The unloading point was added in this
example but is an optional field.

Step1: Configuration Data

SAP ︎ —>Logistics ︎ Logistics Execution—> ︎ Warehouse Management ︎ —>Transfer Requirement

︎ —>Create ︎ Replenishment for Fixed Bins.

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Movement type 319 is defined for replenishment for production and needs to be assigned to
areas, which means storage type 100, which requires ongoing replenishment.

Step2: Master Data

Define the Storage Bin where the Stock needs to be replenished. Also Define the
Minimum Bin Quantity and Maximum Bin Quantity so that system would know when to
trigger the replenishment quantity and also what would be the Maximum Quantity it can
replenish.

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Do not forget to enter the Replenishment Quantity. Once the Stock falls below the
Minimum replenishment Quantity, System would create the TR for the largest multiple of
Replenishment Quantity without exceeding the Maximum Bin Quantity.

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Step 3:- Process
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After setting up the Configuration Data and Master Data, Enter the transaction LP21

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iv) DELETE TRANSFER REQUIREMENT:- DELETE FLAG

TRANSACTION:- LB02

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v) CREATE TO FROM TR:-

LT04: Creation of TO from TR

1. Enter Warehouse and TR number

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2. Put away Foreground
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you can choose to have this performed in
either the foreground or background.
The reason to perform this in the
background is that it allows the user to
continue with other work

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3. We can see that source bin and destination bin identified by system.

It will identify next empty storage bin.

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If we want to see how bin is created,We can goto Environment—>Stro.Bin.Search Log

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Here system will specify if the material master have storage type indicator(Here we
can see EEE)

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4. Then create a TO(Click on SAVE)
If we display TO(LT21), It will indicates whether To is confirmed or not.

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We can see Red dot here,It indicates To his not confirmed yet.
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It means transfer order is created to move material from source bin to destination bin, but
warehouse operator not yet moved the materials.

Once he moved materials to destination bin,He can confirm the order.Then we can see
Green color dot here. (OR) We can see the same whether it is checked or unchecked at
“Confirmation”.

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When we see the processing status in transfer Requirement, We can see that TO is now
created.

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 TRANSFER ORDER

Transfer Order:

Instruction to move materials from source storage bin to destination bin.

Upon creation of TO, System determines all the bins in the warehouse that are
affected by goods movement.

T-Codes:

LT01: Create TO

A
LT1A: Change TO
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LT21: Display TO

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LT15: Cancelling TO
LT04: Create TO from TR
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LT03: Create TO for Delivery
LT06: Create TO for Material Document
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LT12: Confirm TO
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Create TO:
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1. Manual
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2. Immediate
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3. Automatic

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I) MANUAL TRANSFER ORDER(TO) CREATION:- LT01

The configuration to allow a manual transfer order is on the movement type con-
figuration for a particular warehouse. Therefore, a manual transfer order for a movement
type may not be allowed in other warehouses.

To access the configuration, follow the menu path:-




IMG—> ︎ Logistics Execution ︎—> Warehouse Management ︎—>Activities ︎—> Transfers
—>︎ Define Movement Types.

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Transfer Requirements area, the configuration for movement type in warehouse shows
that whether manual transfer orders are allowed or not allowed. Transfer orders can only
be created with reference if this checkbox is not set.

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Logistics ︎
by —>Logistics Execution —>︎

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Warehouse Management—> ︎ Transfer Order—> ︎ Create ︎ —>Without Reference.

Transaction: LT01
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II) IMMEDIATE TRANSFER ORDER(TO) CREATION:-

In the immediate transfer order creation, the TO creation is called immediately as a

background task for the corresponding preceding document in the update of a delivery or
a material document or in WMPP material staging.

1. Menu path:-


IMG—> ︎ Logistics Execution ︎—> Warehouse Management ︎—>Activities ︎—> Transfers
—>︎ Define Movement Types.

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2. Menu path:-
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IMG ︎ —>Logistics Execution —>Warehouse Management ︎—> Interfaces—> ︎ Inventory
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MANAGEMENT
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Management ︎—> Define Movement Type—> LE-WM Interface to Inventory

To activate immediate TO, select option A from the dropdown menu in the Immed TO
Creation field.

If the value X is selected in the Immed TO Creation field, the system will call the transfer
order creation screen upon the posting of a goods receipt. This will not create a transfer
order, but will take you to the create transfer order screen Trans- action LT04 upon the
posting of goods receipts.

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III) AUTOMATIC TRANSFER ORDER(TO) CREATION:-

In the automatic transfer order creation, you can set the 'automatic TO' indicator for
movement types related to the documents. You then have to schedule a report to carry out
the conversion into a transfer order,

RLAUTA10 for transfer requirements

RLAUTA11 for posting change notices.

If you decide to use automatic TO creation, the system will not create transfer orders
immediately but will wait for the schedule background report RLAUTA10 to run and
convert the transfer requirements to transfer orders.

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This delay process is based on the frequency of the background job. The system first sets

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the predefined indicator in the transfer requirement. This predefined indicator is passed
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over from the warehouse management movement type to the warehouse document, for
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example, transfer requirement.
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The following are the options available for converting transfer requirement into
transfer orders:
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• ︎ The system can create a transfer order for each transfer requirement.
• You can use a user exit to create a transfer order that meets a certain criterion, for

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example, a specific date or time.

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• You can use the user exit for grouping the transfer requirement with certain cri- teria
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and create a transfer order for a group.
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1. Menu Path:- D
SAP IMG ︎ —>Warehouse Management ︎ —>Activities —>︎ Transfer ︎ —>Set Up
Autom.TO—>Creation of TRs/Posting Change Notice.

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2. Menu Path:-

IMG—> ︎ Logistics Execution ︎—> Warehouse Management ︎—>Activities ︎—> Transfers

—>︎ Define Movement Types.

Specify indicator “A” in background processing.

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3. Background job: RLAUTA10
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When we execute it will create TO.

If the quantity is more,System will take time to run the background job.

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IV) CONFIRM TRANSFER ORDER(TO):-
LT12

︎ LT11

Confirm a single item on a transfer order

︎ LT12

Confirm the transfer order

︎ LT13

Confirm by storage unit

Open TO Items

Selecting this checkbox allows only open

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transfer order line items to be dis- played; that is, line items that are not confirmed.
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Subsystem Items
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This checkbox refers to any external warehouse management system that is processing
some element of the warehouse process.

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If this checkbox is selected, then the display will show transfer orders that have been
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passed to the external system, and these can be reprocessed
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Confirm Transfer order with Differences:-
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Here we can mention if there is any difference in the quantity.i.e in the purchase order it
has mentioned quantity as 40,But vendor has sent only 30.It is the responsibility of the
warehouse operator to update the difference.

In this case diff quantity=10

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When we enter diff quantity here, the actual quantity value became 30.

And we need to specify the difference indicator.

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Next,Click on SAVE, We can see TO confirmed with Differences. It means difference

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quantity 10 moved to storage type 999.

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Display TO (LT21)

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Green symbol shows Confirmed TO.
Red symbol shows it confirmed with

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differences.
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Note:1
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Pr
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What will happen before confirming TO and after confirming TO?????
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For example we have created TO, to move quantity 50 from storage bin (01-01-02) to
empty storage bin
m e
(01-01-01)
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Bin status
Report: LX03

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Create TO: LT10

Now if we go and see “Bin status

report “ it will show probable
put away.

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Go and check “Stock per
m e
material: LS24
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After confirming TO,The stock

under bin 01-01-01 shown as
total stock and available stock.

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Note:2

How to confirm transfer order at Item Level?????

T-Code:LT11
Here we can enter Item number and then confirm the order.

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V) 

CREATE TRANSFER ORDER(TO) W.R.T POST CHANGE NOTICE(PCN)
NUMBER:- 



STEPS IN TO CREATION FROM PCN MANUALLY:-LT05



1.POST CHANGE IN IM

(MB1B-TRANSFER POSTING-322)



2. PCN DOCUMENT CREATED IN WM

(AFTER WE DO 1ST STEP,PCN WOULD BE CREATED A WM
LEVEL,TO DISPLAY IT-LU04)



3.TO DISPLAY-LT21

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(WE CAN CREATE IT FROM PCN OR

T-CODE: LT05)

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4. CONFIRM TO-LT12


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(THEN STOCK STATUS WILL SYNC IN IM AND WM LEVEL)


P
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We can even create TO Automatically by following some settings mentioned in next
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topic.
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VI) CANCEL TRANSFER ORDER:-

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Before confirm TO-LT15

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After confirm TO:-

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We cannot cancel confirmed TO,However

Normal outbound process is:


sales order/STO—>Outbound Delivery—>Transfer Order—>Confirm Transfer Order—>PGI


SO,If we need to cancel TO Before PGI, We can reverse picking using transaction LT0G.


If we need to cancel TO after PGI, First we need to cancel PGI using VL09 and then reverse
picking using transaction LT0G

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VII)2-STEP PICKING PROCEDURE:-


Introduction: Two process is used to optimize the picking process. Suppose, one
material is being used more frequently either in Sales order or in Production order or
being transfer one SLOC to Another SLOC. If frequency of picking of material is more as
it is being used in multiple outbound delivery, we
can use 2 steps picking to optimize the
performance.

Two Steps picking are broken in to 2 steps-

1) Collective picking of materials linked to all
Reference documents (OBDs or TR’s) 

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2) Allocation of materials to respective OBD/TR’s

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PREREQUISITES :-


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You have activated two-step picking at warehouse number level in the Customizing for
Warehouse Management.
by
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Type of Two-Step Picking
m e Customizing Settings
For outbound deliveries
cu Warehouse Management →
Interfaces → Shipping → 2-Step

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For transfer requirements
Material dependent for outbound
deliveries or for transfer requirements
Picking
Warehouse Management→ Activities
→ Transfers → Set Up 2-Step Picking
for Transfer Requirements
You have activated two-step picking
(see above).
If you have set the indicator 2-stMatl,
the system defines whether you want
to pick the material direct from the
warehouse or if you have planned
two-step picking for the material,
based on the 2-step picking indicator
in the material master (Warehouse
Management 1 view).

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STANDARD SETTINGS:-

• In the SAP standard system, 2-step picking is not activated in warehouse number
001.
• In warehouse number 001, storage type 200 is defined as an interim zone and
movement type 850 for stock removals (picking).
• In the storage type search, storage type 200 is defined for 2-step picking

CONFIGURATION:-

A) Activate Two step picking for Transfer requirement: -

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Menu Path-
s ha
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SPRO–>Logistic Execution–>Warehouse Management–>Activities–

ath
>Transfers–>Set up 2 step picking process for Transfer Requirement

Pr
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Under Transfer requirement control, we have to make following setting—

1) Assign 2 step picking under column 2stP for given Warehouse No

2) 2 Step is Material dependent or not. If check column 2-stMatl, only

those Materials will be part of 2 steps picking where 2 step provision is
made in Material master under Warehouse view 1

3) Movement type 850(Standard Movement Type) needs to be assigned as

this is movement type will be used during first TO during collective
picking to bring the materials to interim Storage Type 200
Of course, the standard movement type 850 can be changed.

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Under Transfer type -Stock removal, we have to make following setting—-

You must activate 2-step picking explicitly for each transfer type since 2-step picking is
only useful for certain transfer types. 

If you only want to use 2-step picking for certain stock removals, such as material staging
for production, you must define a separate transfer type for the respective movement
types.

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yu
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Storage type search:-Now once it is configured, We now need to set up Storage type

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search for 2 step picking. Here we need to assign operation 2 and give storage type as 200
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t
as stock will be kept at storage type 200 before final allocation.

en
Configuration step will be same as we do for normal Put away and Stock removal
Storage type search
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SPRO–>Logistic Execution–>Warehouse Management–>Strategies

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Example:-
Following steps needs to be executed

1) Assigning 2 step indicator in Material Master:

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2) Creation of TR via Transfer Posting in IM via MB1B with movement Type 311:
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We have Generated 3 TR via 3 Transfer posting which we can see in LB11 report

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3) Creation of group : Now we need to create group combining all these 3 TR’s which
will be reference documents for first TO for collective picking. Group is created via LT41
transaction

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Screen is showing 3 TR’s have been clubbed. Now Select Row and press Assign Group to

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create Group. Another Screen will appear where give Description of group as shown
below

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4) Run LX39 report :

System will ask to enter Group no created above and Warehouse No. Execute the report.
System will display 2 Row- Picking and allocation if group is 2 step relevant else System
will give warning message
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yu
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Pr
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5) Creation of TO for collective Pick:Now put cursor at Pick row and click on Create TO
to initiate picking process
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Select Stor type Srch Seq to see which Storage type is being proposed for Destination. It
should Be 200. Once it is done, Generate TO

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6) Confirm TO: Confirm TO to complete the picking step. Run LT12 and enter the TO
generated above

7) Run LS26 report: We can see stock status. Stock will be lying under Storage type 200

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Now Collective Picking process is done. We can see Picking row will be green if we put
cursor on pick row and press Data

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8) Create TO for allocation: Put the Cursor on Allocation and select create TO button to
create TO

Select Start multiple Proc. button to initiate TO

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So we can see that Allocation to respective TR has occurred via TO#98,99 and 100. Now
we can see that LX39 report shows allocation green as it is completed.

Now 2 Step picking process is completed.

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 POST CHANGE NOTICE(PCN)

You process posting changes in IM and WM to change the status of a material in the
warehouse. How this actually takes place in the system is described below.

• A post change in Inventory Management creates a “Post change Notice “ which has
similar function to Transfer Requirement.
• It contains the Material Number, Warehouse management movement type, Post change
storage type and Bin.
• During post change, System creates “Negative quant” in the interim storage area for
issuing material quantity.

At the same time, it creates “Positive quant” for receiving material quantity after the
post change.

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• A Post change(Change to certain quant characteristics) does not necessarily have to

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involve Stock Transfer(A physical movement to material)



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• IM and WM movement types linked using "Reference Movement type”
Post changes usually have “3 different reference movement types” for one IM
movement type.
System uses tables that are linked with plant/SLoc combinations with warehouse
number to decide which one of the 3 reference movement types used to find out WM
movement type for a particular operation.
This must be reflected by the settings in table T321, where the WM reference
movement types are assigned to the WM movement types and the subsequent document
is decided.

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• System creates Post change notice when issuing plant/sloc combination assigned a
m
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same warehouse number than receiving plant/sloc combination.
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Otherwise, System will create “two Transfer Requirements”:One for “Stock Removal"
from issuing warehouse number and second one for “Putaway” in the receiving
warehouse number.

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Process Flow:-

1. You generally initiate a posting change in the Inventory Management component

by carrying out a transfer posting.

2. The system creates a posting change notice in WM.


3. Additionally, the system creates two quants of equal negative and positive
amounts in the posting change interim storage area; a negative quant for the
material to be removed and a positive quant for the material to be added.


4. In WM, you can view the posting changes that were initiated in IM by displaying
the posting change notice list in WM. 


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When you retrieve this list, you can display all posting change notices that

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are still open and/or those that are partially or fully cleared.


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5.
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In WM, you process the posting change from the posting change notice list to

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create a transfer order. The transfer order contains 2 items for each item in the

Pr
posting change notice one to move the material quant into the interim posting
change area and one to move it back out again with the status change.



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This is a logical step used for tracking data that takes place in the system without
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m e
any physical movement of stock. In most cases, the material stays in the original
storage bin. However, in some instances, you have the option to transfer the
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material to another bin within the warehouse during this step. 

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To complete the change in material status, you confirm the transfer order. This
clears the posting change area.

Example:
With transaction MB1B, the MVT TYP 321/322. (QI) 343/344 (BLOCKED), also trigger
a posting change. In IM, the trigger is created, then dependent on the configuration, a
Transfer Order must be created that removes the material from its bin location, puts it in
the U-ZONE, then takes it out of the U-ZONE as the changed material and back to its bin
(post to same bin must be checked in config).
So lets say you have 1000 pcs of a material, in 2 bins. 10 of them are bad and need to be
blocked until a later time so they wont show available, or be used. Transaction MB1B is
an IM transaction in which you state that10 pcs out of the 1000 need to be blocked. The
purpose of the transfer order is to direct or choose which bin the 10 pcs of 1000 should be
blocked.

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Steps:

1.Post change in IM

(MB1B-Transfer Posting-322)



2. PCN document created in WM—- Dispaly it using Tcode Lu04






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The storageytype 922 is virtual,It is
a t
not hphysically located

P r would move from 922 to
Material
y source storage type


n t b That is the reason we can see 2

m e lines at TO

Here movement type 321 is WM

cu movement type

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• Sometimes there might be material exists in more than 1 storage type,In this case you
can selects one storage type from where you need to post material

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3.TO Display-LT21(We can create it from PCN or T-Code: LT05)

4.Confirm TO - LT1 (Then stock status will sync in IM and WM level)

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Auto TO for PCN for Transfer Postings from Location to Location with in same
Warehouse:-

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1. Path: IMG-> Logistics Execution-> Warehouse
Management -> Activities-> Transfers-> Set up
automatic TO creation for TRs/PCN.

2. IMG > Logistics

Execution > Warehouse
Management > Interfaces >
Define Movement Types

3. Report RLAUTA11 – Report for automatic creation of TOs for posting change notices.

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Note:-

No IM stock will not update if you use LU01. LU01 is at warehouse level transaction.
You have two choices. Either post IM transaction(ex- unrestricted to Block) and then use
LT06/LT05-PCN notice. You can configure that TO should be automatically created from
PCN. But if your stock is present in more than one storage type ,i.e. more than one quant
exist for the material then automatic TO will not be created. you have to manually create
the TO wrt posting change notice and provide the storage type from where you want to
remove the stock.
Another choice which I would recommend that, use one step process of posting change
using transaction LQ02. i.e. only post WM transaction and IM transaction will be posted
automatically in the background. Prerequisite are
(I) define new WM movement type
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(2) OLML-----------> WM--------->Interface--------->IM------->define posting change
Instead of using LU01 you can use LQ02 as above.
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What are the difference between LU01, LU02, LQ01 and LQ02?
h
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LQ01 : With this transaction, you can post a MM-IM movement type in WM between 2
storage location in the same warehouse.

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LQ02 : You can carry out posting change notices (PCN) directly initiating in WM and
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this will make the change ( corresponding inventory status change) in IM as well. You
b
t
have to do a few customization steps to be able to do this though.
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m e
LU01 : Creation of the PCN independently without the being initiated in IM first.
Typically the PCN's are a result of IM action. With this you can carry the same in WM.

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LU02 : You can change the PCN created.

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Reasons for making Posting Changes:-
-Releasing stocks from Inspection to Available
-Converting Block stock to Inspection
-Designating Available material as Inspection
-Changing the material number
-Splitting available material in batches
-Converting special stocks into own stocks
-Changing ownership of stock in same WM from one plant to another.

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