Skip to Content

When a BOM is created, it contains the component. At the time of issuing the component of production the issuing storage location is required.

Each component in a production order can be assigned a default storage location. This automatic assignment enables automatic withdrawal posting when backflush is enabled.

There are so many options by which default storage location can be selected. The priorities are mentioned as below.

Work center-> BOM -> Material master -> MRP group ->Production version.

The selection process is as below

In each priority like work center, BOM etc there are different setting options.

First system checks the st loc in Work center Production supply area (PSA).

By PK05 we maintained PSA is work center.

Assign the PSA in work center by CR02.

As well the assignment of st loc is there in material master.

Now when the order is created the assignment of component is selecting the st loc from PSA which is maintained in W/C. Not from material master as W/C is having highest priority.

Now work center PSA deleted and material master st loc also deleted and order created again. No default st loc got selected.

Now again maintained st loc as 0002 in mat master.

Changed MM storage location in BOM also as 0001.

Now creating the order. Assigned st loc is 0001 as BOM is  having higher priority than mat master.

Now maintaining the PSA in BOM item. Here you have to maintain the same st loc in which the supply area is assigned.

Now after creation of order though mat master st loc setting is 0002 system is taking from BOM PSA storage location as 0005. This is because BOM is having higher priority than material master.

Now deleting the setting in BOM as it is having higher priority and setting in mat master. As mat master setting is 0002  order is taking st loc as 0002.

Maintain supply in material master  and removed prod st loc from there.

Creating the order. It is taking from supply area storage location.

At last if production order creation is done with  prod version then it will check in prod version for default st loc. Else no automatic selection will be there.

Selection with prod version

Check the setting in MRP group(OPPR).

Now if the setting is “Blank” or “1” then production storage location of the material master of the component is selected as the issuing storage location.

If the setting is “2” then system uses the default issue storage location specified in the material master record of the header material in the production version. If no default issue storage location is maintained in the production version, then the system uses the receiving storage location for the assembly as issue storage location for components.

If the setting is “3” system behaves according to strategy 1 first and then according to strategy 2 next.

If the setting is “4” system behaves according to strategy 2 first and then according to strategy 1 next.

If the selection is NOT “1” or “Blank”(means 2,3 or4)

System check the PV issue storage location.

If it is not maintained system will check Receipt storage location in PV.

If it is not there also, system cant select storage location as default. Manually st loc has to be selected.

To report this post you need to login first.


You must be Logged on to comment or reply to a post.

  1. Former Member

    Hi Krishnendu,

    Very good explanation with all scenarios. i understood the priorities now for picking up Sloc in order for component issue.

    Thank you 🙂



      1. Jiaul Haque

        Informative and good findings .This will help me to resolve many issue we encounter while issuing inventory both IM and WM side.




  2. Srini Ravindra Kumar

    Good work Krishnendu.

    This had come up for discussion a couple of years back and here are the details/outcome of the discussion.Have a look at the details in the attachment.

    Issue storage loaction

    Suspect the priority of order is not in line with what was figured out. Unfortunately do not have the copy of the details collected now.

    Objective is to ensure that things are provided 100% right.

    Can you check again and revert back with your findings/confirmations?

  3. Krishnendu Das Post author

    Hi Srini,

    Thanks. The result I have tested. seen the link also. The priority mentioned in the link is same as me.

    Do you have any specific observation?



  4. Former Member

    Nice Document

    Thanks for sharing.

    We are facing issue when we changed default storage location in PM order. After MRP run system overwrite storage location from new to default storage location from material master.

    If happens only with random material not with all material.

    We are using default storage location only in material master and we are using MRP at MRParea level not at plant level.

    Any clue?




Leave a Reply