Warehouse Management

(Part 1)

EGN 5622 Enterprise Systems Integration

Fall, 2015
 WM
Organizational Structure, Master Data,
Process Management and Control, and
Physical Inventory

SAP Implementation
WM Overview
1. WM Organizational Structure
2. WM Master Data
3. WM Process Management and Control
4. WM Physical inventory procedures
1. WM Organizational Structure
 Client
◦ An independent environment in the system
 Company Code
◦ Smallest org unit for which you can maintain a
legal set of books
 Plant
◦ Operating area or branch within a company
 Manufacturing, distribution, purchasing or
maintenance facility
 Storage Location
◦ An organizational unit allowing differentiation
between the various stocks of a material in a
plant
WM Organizational Structure
• Warehouse Number
◦ Number that identifies a complex, physical
warehouse structure within the warehouse
management system
• Storage Type
◦ Subdivision of a warehouse number
◦ Is identified by its warehousing technique (such as shelf
or pallet storage), form of organization, or its function
(Shipping, Receiving, …)
• Storage Section
◦ Logical or physical subdivision of a storage type
◦ Groups together a series of similar storage bins
 Storage Bin
◦ Smallest addressable unit in a warehouse, which
identifies the exact location in the warehouse where
goods can be stored
WM Organizational Structure
• Picking Area
◦ Groups storage bins together from the standpoint of
picking strategies
 Warehouse door
◦ Marks the point where the means of transport changes
to an internal transportation
 Allocation Zone
◦ Temporary storage of goods, which have just arrived or
will be shipped soon
 Shipping Point
◦ Is the part of the company responsible for the type of
shipping, the necessary shipping materials and the
means of transport
 Transportation Planning Point
◦ Place of planning and processing transportation activities
Connecting Warehouse Management to Inventory Management

Inventory
Management

Warehouse
Management
Substructure of a Warehouse Number
WM Master Data

Warehouse number

Material Master Data

Plant Master Data

Storage location Master Data

WM Master Data - Warehouse
number
WM Master Data - Storage type
WM Master Data - Storage Section
Storage Section
Storage section is a logical or physical subdivision of a
storage type. In one section, you can group together a
series of storage bins. You can define the criteria for
such groups as required (for example, fast-moving
items, slow-moving items, and so on).
Storage Bin Master Data
 Storage Bin
◦ Smallest addressable unit
in a warehouse number
◦ General Data General Data
 Warehouse number
 Storage type
 Storage bin number
◦ Storage Bin Data
 Storage section
 Picking area
 Fire-containment section Storage Bin Data (WM)
 Bin type
 Max. weight
Storage Bin Master Data
Storage Bin Master Data
 Quant
◦ Smallest addressable unit
of measure for a material in
SAP ERP General Data
◦ General Data
 Material
 Plant / Storage location
 Batch
 Warehouse number Stock Data (MM)
 Storage type
 Storage bin
◦ Stock Data
 Total stock
 Available stock Blocking Indicator (MM)
◦ Block Indicator
 Block
 Putaway/removal status
Material Master Data
 Material Master
◦ Contains all the information a
company needs to manage
about a material
◦ It is used by most
components within the SAP
system
 Sales and Distribution
 Materials Management
 Production
 Plant Maintenance
 Accounting/Controlling
 Quality Management
◦ Material master data is
stored in functional
segments called Views
Hazard Master Data
 Storage area for
hazardous materials
◦ Flammable liquids
◦ Toxic materials
◦ Radioactive materials
 General Data
◦ Storage class
◦ Water pollution class
◦ Flash point
◦ Aggregate state
◦ Hazardous material
warning
◦ Hazardous substance
number
Batch Master Data
 Subset of Material
◦ homogeneous series of
unreproducible units with an
unique specification
 Basic Data 1 & 2
◦ Expiration date
◦ Inspection date
◦ Trading data
◦ Administration data
◦ Text data
 Classification of Batch
 Material data
Logistics Execution (LE) - Process Overview
Process of Goods Receipt With Transfer Order

Figure 252
WM Process Management & Control
 Transfer requirement (TR)
◦ A request to transfer materials at a particular time from a source
storage bin to a destination storage bin in a warehouse number.
◦ Represents the expected and scheduled goods movements in WM
◦ Generally generated by postings in the inventory management, such
as goods receipt for a purchase order.
◦ Consists of transfer request header and line items
 Posting change notice (PCN)
◦ Generated by posting change processes in WM-administrated stocks
◦ Functionality similar to transfer requests
◦ Not necessarily combined with a physical goods movement
 Transfer order (TO)
◦ Central documents for WM
◦ Every material movement requires a transfer order
◦ No difference between real and logical movement
Transfer Order
 Creation of transfer order depends on preceding
document
◦ Transfer request (TR)
◦ Posting change notice (PCN)
◦ Outbound delivery
◦ Inbound delivery
 Types of Transfer Order (TO) Creation
1. Manual (TR, PCN, material document)
2. Direct TO-creation
3. Automatic TO-creation
4. Manual (Delivery Monitor)
 Global Bike, Inc.
WM
Organizational Structure
GBI 2.1 Structure for Warehouse
Management
Global Bike Client 635
Global Bike Inc. US Global Bike Inc. DE Company Code
(US##)
Dallas San Diego Miami Plant (SD##)

Trading Goods Finished Goods Miscellaneous Storage Location

San Diego Warehouse Warehouse Number (1##)

Shelf Storage GR Area Ext.
Receipts
Pallet Storage Shipping area
Deliveries
Stock Transfers
(Plant)
Storage Type
Total Section
Storage Section
STBN-2-000 STBN-2-001 STBN-2-999
Storage Bin
GBI WM in SAP : Logistics
Execution (LE)
GBI WM in SAP: Define Warehouse
Number
GBI WM in SAP: Define Storage
Type
GBI 2.1 WM in SAP: Define
Storage Section
GBI WM in SAP: Define Storage
Bin Structure
Exercises: (Due Date 10/17/2015)
Case Study 1:Goods receipt for Inbound Delivery

Process overview
1. Create purchase order
2. Display materials inventory
3. Display material inventory value
4. Receive goods
5. Review material inventory after GR
6. Review material inventory value after GR
7. Run Bin status report
8. Create transfer order
9. Confirm transfer order
10. Run bin status report
Exercises: (Due Date 10/17/2015)
Case Study 2:
Create and Process Transportation Order
1. Display materials inventory
2. Create transport order
3. Display materials inventory
4. Display material inventory value
5. Create goods issue
6. Review material inventory after GI
7. Review material inventory value after GI
8. Create goods receipt
9. Display materials inventory
10. Display material inventory value
11. Run Bin status report
12. Create transfer order
13. Confirm transfer order
14. Run bin status report