Deep Dive Session –

SAP Warehouse Management

01. Introduction to Warehouse
Management
 Warehouse management overview in
SAP R/3
 Organization Data
 Warehouse Structure
 Warehouse Master Data
 WM Material master view
What is SAP WM?
 SAP Warehouse Management system
(WMS) provides flexible automated
support in processing all goods
movements and in managing stocks in
your warehouse complex.
Solution Landscape WM
01. Introduction to Warehouse
Management
 Warehouse management overview in
SAP R/3
 Organization Data
 Warehouse Structure
 Warehouse Master Data
 WM Material master view
Organization levels of SAP WM
01. Introduction to Warehouse
Management
 Warehouse management overview in
SAP R/3
 Organization Data
 Warehouse Structure
 Warehouse Master Data
 WM Material master view
Warehouse Structure
 Warehouse Number
 Storage Type
 Storage Section
 Picking Area
 Storage Bin
 Quant
Warehouse Number
Warehouse Structure
 Warehouse Number
 Storage Type
 Storage Section
 Picking Area
 Storage Bin
 Quant
Storage Type
Interim Storage Types (LX20)
Warehouse Structure
 Warehouse Number
 Storage Type
 Storage Section
 Picking Area
 Storage Bin
 Quant
Storage Section
 In WM, a storage section is defined as an
organizational subdivision of a storage
type that groups together storage bins
with similar features for the purpose of
putting stocks away.
 Criteria for grouping bins could be fast-
moving items, slow-moving items etc.
Warehouse Structure
 Warehouse Number
 Storage Type
 Storage Section
 Picking Area
 Storage Bin
 Quant
Picking Area
Warehouse Structure
 Warehouse Number
 Storage Type
 Storage Section
 Picking Area
 Storage Bin
 Quant
Storage Bins
Warehouse Structure
 Warehouse Number
 Storage Type
 Storage Section
 Picking Area
 Storage Bin
 Quant
Quant
Quant
Typical Warehouse
Hierarchical Warehouse Structure
01. Introduction to Warehouse
Management
 Warehouse management overview in
SAP R/3
 Organization Data
 Warehouse Structure
 Warehouse Master Data
 WM Material master view
Warehouse Master Data

 Material Master

 Storage bin
01. Introduction to Warehouse
Management
 Warehouse management overview in
SAP R/3
 Organization Data
 Warehouse Structure
 Warehouse Master Data
 WM Material master view
WM Material Master View
 2 Organizational level can be defined for WM

➢ WM View of Material Master record: Indicators

specified will be for entire warehouse

➢ Storage Type View level: Indicators specified will

be for a particular Storage type in a warehouse

02. Organization Data

 02.01. Define Warehouse structure

 02.02. Master Data

 02.03. Transfer Requirement

02.01. Define Warehouse structure
 Warehouse number
 Storage type
 Storage section
 Storage Bin
 Picking Area
 Storage unit
 Quant
02. Organization Data

 02.01. Define Warehouse structure

 02.02. Master Data

 02.03. Transfer Requirement

Warehouse Master Data

 Material Master

 Storage bin
02. Organization Data

 02.01. Define Warehouse structure

 02.02. Master Data

 02.03. Transfer Requirement

Transfer Requirement
 A request to transfer materials at a particular
time from a source storage bin to a destination
storage bin in a warehouse complex.
 Importance of Transfer Requirements:
➢Provide information on goods movements that are
posted in Inventory Management to the Warehouse
Management System
➢To initiate goods movements in WMS
➢To initiate material replenishment for production
storage bins in the production supply areas using the
Production Planning (PP) component
Creation of Transfer Requirements

 Create Transfer requirement manually

 Create Transfer requirement automatically
List of T.Codes used for TR creation

 LB01: Create TR
 LB02: Change TR
 LB03: Display TR
 LB11: TR for Material
 LB10: TR for Storage Type
Creation of Transfer Requirements

 Create Transfer requirement manually

 Create Transfer requirement automatically
Create Transfer requirement automatically

 Setting up automatic creation of TRs

➢Set the transfer requirement indicator (TR) in
the table that links the reference movement
types and the WM warehouse movement
types
04.Transfer Order
 Create TO w.r.t Transfer Requirement
 Create TO w.r.t Storage unit
 Create TO w.r.t Material document
 Create TO w.r.t Inbound delivery
 T.O. Creation In Background
 Confirm the Transfer Order
 Cancel the Transfer Order
Transfer Order
 Instruction to move materials from a
source storage bin to a destination
storage bin in a warehouse complex at a
specified time.
 Upon creation of TO, the system
determines all the bins in the warehouse
that are affected by the goods movement
i.e, source storage bin, destination storage
bin etc
List of T.Codes used for TO creation
 LT01: Create TO
 LT1A: Change TO
 LT21: Display TO
 LT15: Cancelling TO
 LT04: Create TO from TR
 LT03: Create TO for Delivery
 LT06: Create TO for Material Document
 LT12: Confirm Transfer Order
Automatic TO creation
Create Transfer Order automatically

 Way of setting up automatic creation of

TRs
➢Set the transfer order indicator (TR) in the
table that links the reference movement types
and the WM warehouse movement types
➢In Movement Type - Details view, option to
manual TO creation is available
Goods Receipt Process in SAP WM
Physical Process VS Process in SAP
Goods Receipt Process in
integrated SAP WM
04. Put away Strategies
 Fixed Bin (F)
 Next empty bin (L)
 Open Storage (C)
 Addition to existing bin (I)
 Pallets (P)
 Manual putaway according to user entry (Blank)
 User-defined putaway (user-exit)
Fixed Bin Strategy (F)
 This strategy is used when a material is to
be stored in a fixed bin in a storage type
 You can define the fixed bin for a material
in the material master record (the
warehouse view 2)
Put away Strategies
 Fixed Bin (F)
 Next empty bin (L)
 Open Storage (C)
 Addition to existing bin (I)
 Pallets (P)
 Manual putaway according to user entry (Blank)
 User-defined putaway (user-exit)
Next Empty Bin Strategy (L)
 For this putaway strategy, the system
proposes the next empty bin
 Randomly organized warehouses are
supported with this strategy, whereby
materials are stored in separate storage
sections.
 This strategy is especially suited for high
rack storage
Put away Strategies
 Fixed Bin (F)
 Next empty bin (L)
 Open Storage (C)
 Addition to existing bin (I)
 Pallets (P)
 Manual putaway according to user entry (Blank)
 User-defined putaway (user-exit)
Open Storage Strategy (C)
 Open storage is a type of warehouse
organization in which you define a single
storage bin for a storage section.
 The quants in the storage bin can also be
in the form of mixed storage.
Put away Strategies
 Fixed Bin (F)
 Next empty bin (L)
 Open Storage (C)
 Addition to existing bin (I)
 Pallets (P)
 Manual putaway according to user entry (Blank)
 User-defined putaway (user-exit)
Addition to existing bin Strategy (I)
 In this strategy, the system places goods in
storage bins that already contain the same
material.
 A prerequisite for addition to existing
stock is that sufficient capacity still exists
in the respective storage bin.
 If the system cannot find a storage bin
with the same material, then the system
switches to the "next empty bin" strategy
Put away Strategies
 Fixed Bin (F)
 Next empty bin (L)
 Open Storage (C)
 Addition to existing bin (I)
 Pallets (P)
 Manual putaway according to user entry (Blank)
 User-defined putaway (user-exit)
Pallets Strategy (P)
 In this strategy, one storage bin is divided
into several smaller sections
 Using this strategy, system proposes
different pallets and allocates them to the
appropriate section.
 Palletization quantity is defined in the
Warehouse management View 2 of
material master
Put away Strategies
 Fixed Bin (F)
 Next empty bin (L)
 Open Storage (C)
 Addition to existing bin (I)
 Pallets (P)
 Manual putaway according to user entry (Blank)
 User-defined putaway (user-exit)
Manual putaway according to user
entry (Blank)
 In this strategy, system does not use a
strategy to search for a storage bin.
 The user enters the destination storage
bin when the transfer order is created.
 This strategy is used if the search for a
storage bin is done on-site by the
warehouse worker.
Put away Strategies
 Fixed Bin (F)
 Next empty bin (L)
 Open Storage (C)
 Addition to existing bin (I)
 Pallets (P)
 Manual putaway according to user entry (Blank)
 User-defined putaway (user-exit)
User-defined putaway (user-exit)

 SAP allows the customization of put away

of material depends upon the business
scenarios.
 Put away logic has to be programmed and
SAP WM will follow the programmed
method for put away process.
Goods Issue Process in SAP WM
Goods Issue Process in SAP WM
05. Picking Strategies

 First In First Out FIFO (F)

 Stringent FIFO (***)
 Last In First Out LIFO (L)
 Shelf life expired date (H)
 Fixed Bin (P)
 User-defined (user-exit)
FIFO Strategy (F)
 With this picking strategy the system
proposes the oldest quant in the storage
type as the quant that should be
transferred.
 SAP WM system calculates the "age"
(length of time in storage) of a quant on
the basis of the goods receipt posting
date from the Inventory Management (IM)
05. Picking Strategies

 First In First Out FIFO (F)

 Stringent FIFO (***)
 Last In First Out LIFO (L)
 Shelf life expired date (H)
 Fixed Bin (P)
 User-defined (user-exit)
Stringent FIFO (***)
 In this strategy, system proposes the
oldest quant in the entire warehouse as
the quant to be removed from the
warehouse.
 SAP system does not scan individual
storage types in sequence
05. Picking Strategies

 First In First Out FIFO (F)

 Stringent FIFO (***)
 Last In First Out LIFO (L)
 Shelf life expired date (H)
 Fixed Bin (P)
 User-defined (user-exit)
Last In First Out LIFO (L)
 In this strategy, when the system searches
for a quant to remove from stock, it
always selects the last quant that was
placed into stock.
 Mainly applies to building material
industry where material has been stored
temporarily.
05. Picking Strategies

 First In First Out FIFO (F)

 Stringent FIFO (***)
 Last In First Out LIFO (L)
 Shelf life expired date (H)
 Fixed Bin (P)
 User-defined (user-exit)
Shelf life expired date (H)

 In this strategy, the system ensures that

materials with the oldest expiration date
will be removed from stock first.
 Maintain the data in the Storage view of
the material master record.
05. Picking Strategies

 First In First Out FIFO (F)

 Stringent FIFO (***)
 Last In First Out LIFO (L)
 Shelf life expired date (H)
 Fixed Bin (P)
 User-defined (user-exit)
Fixed Bin Strategy (P)
 This strategy is used when a material is to
be picked from a fixed bin in a storage
type
 You can define the fixed bin for a material
in the material master record (the
warehouse view 2)
05. Picking Strategies

 First In First Out FIFO (F)

 Stringent FIFO (***)
 Last In First Out LIFO (L)
 Shelf life expired date (H)
 Fixed Bin (P)
 User-defined (user-exit)
User-defined putaway (user-exit)

 SAP allows the customization of put away

of material depends upon the business
scenarios.
 Put away logic has to be programmed and
SAP WM will follow the programmed
method for put away process.
Warehouse Movement Types
Warehouse Movement Types
 In SAP Warehouse Management, goods
movements are controlled through the
movement types.
 Posting in IM are also defined by
movement types
 IM movement types are linked with WM
movement types via Reference movement
Types
Search Strategies

 Storage type search strategies

 Storage section search strategies

 Storage bin type search strategies

Search Strategies
Putaway or Picking information is
determined by search algorithms for
➢Storage Type
➢Storage Section
➢Storage Bin
❖Putaway Strategy
❖Picking Strategy
06. Warehouse Management
Business Scenario's (MM)
 Fundamentals of Goods Posting in IM and
WM
 Goods Receipt Process in integrated SAP
WM
 Goods Issue Process in integrated SAP
WM
 Moving Material within warehouse
Fundamentals of Goods Posting in
IM and WM
06. Warehouse Management
Business Scenario's (MM)
 Fundamentals of Goods Posting in IM and
WM
 Goods Receipt Process in integrated SAP
WM
 Goods Issue Process in integrated SAP
WM
 Moving Material within warehouse
Goods Receipt Process in
integrated SAP WM
06. Warehouse Management
Business Scenario's (MM)
 Fundamentals of Goods Posting in IM and
WM
 Goods Receipt Process in integrated SAP
WM
 Goods Issue Process in integrated SAP
WM
 Moving Material within warehouse
Goods Issue Process in integrated
SAP WM
06. Warehouse Management
Business Scenario's (MM)
 Fundamentals of Goods Posting in IM and
WM
 Goods Receipt Process in integrated SAP
WM
 Goods Issue Process in integrated SAP
WM
 Moving Material within warehouse
Moving Material within Warehouse
 Movement of material from 1 bin to
another happens through interim storage
area
 Steps to move the material from source
bin to interim storage area
➢Create Transfer Requirement via LB01 (Mtype
201)
➢Create Transfer Order via LT04
➢Confirm Transfer Order via LT12
Batch Management in WM
 Condition Tables
 Access Sequence
 Strategy Types
 WM Batch Search Procedure
 Batch Status in WM
 Characteristics and class
 SLED In Batch in WM
 Manual And Automatic Batch Display In
WM
Batch Management
 In order to work with Batch Management,
we need to flag material for Batch
Management in Material Master.
 Classification Tab should be active for the
material
 Need to create a Class Type as Batch and
class as the Characteristics of the Class
type eg, WH No, Storage Type, Movement
Type etc.
Condition Tables
 V/05 transaction is used for displaying a
condition table.
 V/04 transaction is used for changing a
condition table.
 V/03 transaction is used for creating a
condition table
Sequence of Batch Determination
Document Type

Procedure

Condition Type

Access Sequence

Condition Tables
THANK YOU !!!