During the put away or stock removal of the material from warehouse, the system always searches for suitable storage type for creating the transfer order and if it fails to find the storage type TO is not created unless you manually assign the storage type in the TO creation screen. The setting for finding the suitable stoarge type is done in the below customizing path under 'determine search sequence option'.
IMG-> Logistics execution->Warehouse management-> Strategies-> Activate storage type search.
Generally warehouse number, operation (put away or stock removal) and storage type indicator field values are mentioned with the corresponding storage types in the above setting to determine the storage type. Also if special stocks and stock types needs to be considered during the search then we use stock category and special stock indicator fields to determine the storage type. But this serach procedure is common for all the movement types.
If the business requires the system to determine the storage type separately based on movement type then we need to use 'Reference to storage type search' field in the 'determine search sequence' table control.
Business scenario: If you wanted to make sure that the reserve storage type (replenishment for production) is always found as the picking storage type for replenishment stock transfers, then you can use the 'Reference to storage type search' field.
Unlike the other indicators you do not have to define this indicator in advance in the configuration tables. Simply enter a numeric value between one and three digits in the 'Reference to storage type search' field for the desired movement type in the below path.
IMG-> Logistics execution->Warehouse management-> Activies-> Transfers-> Define movement types
Then you enter this value in the 'determine search sequence' table control, that's all.
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