Configuration of organizational structure in

S/4 HANA EWM….. Part 1

The objective of this blog is to provide a brief introduction of EWM organizational structure, its
configuration and explanation of various control parameters. Along with this a technical and
functional comparison of WM and EWM structural elements will also be done.

EWM organizational structure:

The basic EWM organizational structure is same except an addition of a new organizational element
called “Activity Area” which is a new feature.

Definitions of Organizational Elements:

Warehouse Number:

A physical warehouse where goods are stored which is assigned to a storage location. A warehouse
number can be assigned to multiple storage locations in a plant or different plants.

Important parameters defined at Warehouse Number level:

 Weight Unit, Volume Unit and Time Unit

 Various determination procedures for palletization data and

packaging specifications that are assigned at the warehouse number level.

A storage type can be an Interim storage type (where goods are held temporarily to putaway or
issue) or a physical storage type.

Storage Type:

A physical or logical subdivision of Warehouse which represents a storage space, storage facility or
storage zone.

The use of storage type within the warehouse is indicated by the role code in customization.

Storage Section:

It is a sub-division of a storage type. This can be used for the purpose of representing a product type
or a group of Bins or velocity of products.

Defining a storage section is not mandatory in EWM unlike in WM.

Bin:

A Storage section can be divided into Bins and Bin is the location where inventory is stored.

Activity Area:

An Activity Area is a logical section of the Warehouse that groups storage bins based on defined
warehouse activities. It can be used:

 To group based on different activities like picking, put-away, physical inventory etc.,
 To determine Warehouse Orders through warehouse order creation rules.
 To enable sorting sequences for Bins.
 To influence parameters in determining queues.
Configuration:

Define Warehouse Number

Path SPRO > IMG > SCM Extended Warehouse Management > Master
Data > Define Warehouse Number

Warehouse Number is of 4 characters length in EWM unlike 3 characters in WM

Assign Warehouse Number:

Path SPRO > IMG > SCM Extended Warehouse Management > Master
Data > Assign Warehouse Number
The supply Chain Unit contains the business attributes of Warehouse like Country, time zone ,
address etc.,. Supply Chain Unit is a Master data which is created using the below Path:

SAP Easy Access > Logistics > SCM Extended Warehouse Management > Extended Warehouse
Management > Master Data > Maintain Supply Chain Unit ( T Code: /SCMB/SCUMAIN

Storage Type:

Path SPRO > IMG > SCM Extended Warehouse Management > Master
Data > Define Storage Type
Storage Type is of 4 characters length in EWM unlike 3 characters in WM

The storage type configuration setting is divided into:

Ø General Controls

Ø Putaway Control

Ø Stock Removal Control

Ø Goods Movement Control

Ø Replenishment

Brief description of the settings under each heading are given below:
General:

Setting Explanation

Storage type role Under this setting, the roles that can be selected are:
Standard, Identification Point, Pick Point, Identification
and pick point, Work centre, Yard and Material Flow
Control

Level of Two options available to pick HU. If “Highest-Level HU”

availability is selected, then user has to pick system selected HU. If
quantity “Storage Bin” option is selected, user can decide to pick
HU.

HU Requirement In EWM , both HU and Non-HU stock can be managed

at storage type level. The options available under this
setting are : HU allowed but not a requirement/HU
Requirement/HU not allowed

Max No Bins Number of Bins for each Material in storage type

Check Max No If this is checked, Max No Bins field will be active.

Bins

Use Fixed bins This is checked when storage type is fixed bin storage
type

Fixed Bins Mode Two options available. Bin determination using slotting
algorithm (Put away to optimum fixed storage bins only)
and suggesting other available Bins if optimum Bins are
not available (Put away to optimum fixed storage bins
preferred)

Do not assign If fixed Bins are not assigned to the Material or the
fixed storage Bin assigned fixed Bins are not available, system determines
automatically new fixed Bins and automatically adds to fixed Bin table.
If this is not required, then this field is checked.

Storage This determines about how products or pallet of products

Behaviour are managed in storage type. Options are Standard
warehouse, pallet storage and bulk storage

Available This for batch managed material picking allowing user to

Quantity select a specific batch or system suggested batch
(Batches)

Storage type Level of storage type location

level

Putaway Control:
Some of the main settings are described below:

Setting Explanation

Storage Storage type is a final destination for the putaway

Control/Putaway activity and is used for Process oriented storage control
Completed

Putaway rules The options available to find destination Bins during

putaway are :Empty Bin, Addition to Existing
Stock/Empty Bin, Consolidation Group and general
Storage area

Putaway storage This defines how warehouse task is created for a

control Handling Unit and is only valid for process oriented
storage control

Do not Putaway Used for Process oriented storage control. If this

HUS parameter is checked, product warehouse task will be
used instead of HU Warehouse task.

Search Rule In addition putaway rule, the options available to select

empty Bin the empty bin with this setting are: Setting according to
definition (sort field defined in storage bin master), Near
to fixed Bin and product decides (search rule in product)

Level: Addition to Two options to add stock at the time of warehouse task
stock creation: Addition to stock at Bin level and Addition to
stock at Highest HU level

Stock Removal:

Setting Description

Confirm If this is checked, user can confirm warehouse task

Removal manually. Otherwise system confirms automatically in
background.

HU Picking The available options to pick HU are: Adopt Source HU

Control with Lower-Level HUS into pick HU, Propose Source HU
as Destination HU , WPT Controls Proposal for
Destination HU and Only Adopt Contents

Goods Movement Control:

 Setting Description

Availability Appropriate Availability Group is selected and this

Group facilitates the stock type to be automatically changed to
the stock type of availability group.

Posting Change The available options for posting change are: Always in
Bin Storage Bin, According to Mixed Storage Setting and
Never in Storage Bin

Mandatory If this is set, stock can be posted only to the assigned

availability group for the storage type. Otherwise, system
performs a posting change into the relevant stock type of
the mandatory availability group.

No GI If this is set, PGI cannot be done directly from the

storage type.

Stock Type Role Whenever stock is putaway into the storage Bin, the
stock type will be automatically changed for the Material
as per the stock type role.

Replenishment:

Setting Description

Replenishment Two options are available: Storage Bin Level for Fixed
Level Bins and Storage Type level

Tolerance Used to check whether replenishment quantity is

sufficient to create Warehouse Task

Storage Section:

Path SPRO > IMG > SCM Extended Warehouse Management > Master
Data > Define Storage Section

Storage Section is of 4 characters length in EWM unlike 3 characters in WM

In the above screen the required storage section can be created. The storage section is not
mandatory in EWM unlike in WM.