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Introduction: Two process is used to optimize the picking process. Suppose, one material is being used more frequently either in Sales order or in Production order or being transfer one SLOC to Another SLOC. If frequency of picking of material is more as it is being used in multiple outbound delivery, we can use 2 steps picking to optimize the performance.

Two Steps picking are broken in to 2 steps-1) Collective picking of materials linked to all Reference documents (OBDs or TR’s) 2) Allocation of materials to respective OBD/TR’s

All OBD or transfer requirements are clubbed in one group and picking happens for all materials mentioned in OBD or TR clubbed in Group. A transfer order is created to pick the materials and materials are being brought to Interim Storage type 200.  Another TO is created to allocate the materials to respective OBD/TR’s and materials are moved from Storage Type 200 and process is complete.

Two Step process is very efficient and improves performance of system.

This Documents will discuss about required configuration for Two Step picking.

Process Involved: Two steps picking are broken in to 2 steps- 1) Picking with respect to group which are created to combine all OBDs/TR’s

2) Allocation of materials to respective OBDs/TR’s

Two Transfer order is created in this process- one for group picking and another TO for allocation. First TO brings the materials to interim storage Type 200 from a bins which was used for picking. Second TO is used to allocate the materials to respective OBD’s/TR’s.

We need to configure to make this happen. I will only touch upon configuration involved for Two step Picking. Will not discuss about Strategy for removed from Bins.

Configuration Involved: As We discussed above, TO can be created either from OBD or TR’s so we need to set up configuration for 2 steps     picking for shipping used for OBD as well as Transfer requirements.

A) Activate Two step picking for Transfer requirement: We need to activate 2 step picking for Transfer Requirement. We can make 2 step picking material dependent or Independent.

Menu Path-

SPRO–>Logistic Execution–>Warehouse Management–>Activities–>Transfers–>Set up 2 step picking process for Transfer Requirement


When click  on Set up 2 step picking for Transfer Requirements, another screen opens where we have 2 activities need to be performed as shown below


Under Transfer requirement control, we have to make following setting

1) Assign 2 step picking under column 2stP for given Warehouse No

2) 2 Step is Material dependent or not. If check  column 2-stMatl, only those Materials  will be part of 2 steps picking where 2 step  provision is made  in Material  master under Warehouse view 1

3) Movement type 850 needs to be assigned as this is movement type will be used during first TO during collective picking to bring the materials to interim Storage Type 200


Once it is done, we need to set up 2 step picking for transfer type- Stock removal under transfer type control.


Same configuration is involved for outbound Delivery. Configuration path can be found under Interface–>Shipping–>2 step picking


Now once it is configured, We now need to set up Storage type search for 2 step picking. Here we need to assign operation 2 and give storage type as 200 as stock will be kept at storage type 200 before final allocation.

Configuration step will be same as we do for normal Put away and Stock removal Storage type search

SPRO–>Logistic Execution–>Warehouse Management–>Strategies


Now Configuration is complete. Now let’s have a one  2 step picking example for better understanding.

We will take 2 step picking for transfer requirement document. We will create TR via SLOC to SLOC transfer. If both SLOC are warehouse Managed under same Warehouse no, Posting change notice is created but we need to have TR so I will transfer from WM managed SLOC 1000 to non WM managed SLOC 2000 in below example.

Following steps needs to be executed

1) Assigning 2 step indicator in Material Master:


2) Creation of TR via Transfer Posting in IM via MB1B with movement Type 311:


We have Generated 3 TR via 3 Transfer posting which we can see in LB11 report


3) Creation of  group : Now we need to create group combining all these 3 TR’s  which will be reference documents for first TO for collective picking. Group is created via LT41 transaction


Screen is showing 3 TR’s have been clubbed. Now Select Row and press Assign Group to create Group. Another Screen will appear where give Description of group as shown below


4) Run LX39 report :


System will ask to enter Group no created above and Warehouse No. Execute the report. System will display 2 Row- Picking and allocation if group is 2 step relevant else System will give warning message


5) Creation of TO for collective Pick:Now put cursor at Pick row and click on Create TO to initiate picking process


Press Enter .


Select Stor type Srch Seq to see which Storage type is being proposed for Destination. It should Be 200. Once it is done, Generate TO


6) Confirm TO: Confirm TO to complete the picking step. Run LT12  and enter the TO generated above


7) Run LS26 report: We can see stock status. Stock will be lying under Storage type 200


Now Collective Picking process is done. We can see  Picking row will be green if we put cursor on pick row and press Data


8) Create TO for allocation: Put the Cursor on Allocation and select create TO button to create TO


Select Start multiple Proc. button to initiate TO



So we can see that Allocation to respective TR has occurred via TO#98,99 and 100. Now we can see that LX39 report shows allocation green as it is completed.


Now 2 Step picking process is completed.

This Document was created with Co-Author-Pankaj Agarwal who is very much enrich in SAP-MM/WM coming from very rick background of Procurement and Planning.

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  1. Francisco Morales

    Hi, experts. When i do OT from delivery I can use the LM46, but I do picking in two steps; The second step in the LM46 indicates the following message “The system could not find transfer order for execution”. Can you help me. Thaks.


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