SAP WM –Process, Functionality, Scope, Benefits, Advantages, Disadvantage- Complete Reference-Part 1

SAP WM –Process, Functionality, Scope, Benefits, Advantages, Disadvantage- Complete Reference-Part 1

 

http://www.sapfunctional.com/WM/WMQ1.htm

SAP Warehouse Management_Step by Step configuration Document

 Continued….

SAP WM –Process, Functionality, Scope, Benefits, Advantages, Disadvantage- Complete Reference-Part 2

SAP WM- Process, Functionality, Scope, Benefits, Advantages, Disadvantage- Complete Reference-Part 2

As mentioned in the Part-1… I would like to discuss on the SAP WM Inbound- Putaway Process. in this second Part. I hope this is more useful to New consultants and also other module consultant who wish to learn WM… because SAP WM is tightly integrated with SAP MM, SAP SD, SAP PP, SAP LE-TRA (Transportation Management in ECC6.0, SAP PM, SAP QM..etc..

******SAP WM Inbound/ Putaway Process*******

*********************************************************

1.  Goods Receipt Overview

  • When the goods receipt is posted with reference to a purchase order, a material document in generated in Inventory Management, and an accounting document is generated in External Accounting.

  • A transfer requirement is created in Warehouse Management.

Goods Receipts: Real-Life Physical Process
When goods are received, they are usually transferred first to the goods receipt (GR) area. The goods are not put away in the warehouse until a suitable storage bin has been determined for them.

  1. Creating Purchase Order (ME21N)

 

First Login to SAP

You enter into the following screen.

Logistic>Material Management>Purchasing>Purchase order>create>vendor/supplying plant known  

Or Type ME21N

We enter into the following screen.

Enter the Following Field:

  • Vendor

  • Purchasing org

  • Purch Group

  • Company Code

  • Material

  • PO Quantity

  • Del Date

  • Net Price

  • Currency

  • Plant

  • Stor Loc

Execute and Save.

Following Screen Pops up

Standard Purchase Order Created.

Note down the PO no for the future reference.

  1. Creating Goods Receipt for Purchase order

Logistic Execution> Inbound Process>GR for purchase Order>Enter GR for PO    

Or Type MIGO

We enter into the above screen.

Enter the Following Field:

  • Purchase Order

  • Material

  • Quantity

  • Plant

  • Storage Location Select –> Item OK Check & Post.  Following Screen Pops up.

  • Note down the Material Document no for the future reference.4. Goods Receipt For Other Activities

    1.Creating Goods Receipt for other Activities (MB1C)

    Logistic Execution> Inbound Process>GR for purchase Order,order,other> GR for other activities (MB1C)

  • Enter,and we see the following screen.

  • Enter the Movement type: 501 PlantStorage Location

    Enter, and we get the following screen

  • Enter the Material , and quantityEnter    and   save      ,Following Screen pops up

  • GR Created, Note down the no for future reference.

  • 2.Creating Goods Receipt for other Activities (MIGO)    Logistic Execution> Inbound Process>GR for purchase Order>Enter GR for PO   

  • Or Type MIGO

  • 5  GR with Inbound Delivery

 

  • If you wish, you can put away goods in Warehouse Management before you actually post the goods receipt. To do this, you create an inbound delivery for a purchase order. The WM system uses this inbound delivery as a kind of ‘to-do’ list for putaway.

  • A transfer order is created for the inbound delivery. This transfer order controls the actual physical putaway. The quantity to be put away is stored as a negative quant in the goods receipt area. In effect, this quantity is not yet regarded as available stock.

  • Once the putaway has been confirmed, the goods receipt is posted. Any differences that occur can be entered in the system at this point. The quantity is now regarded as available stock.

    • In the system, an inbound delivery represents the materials that are delivered and received at a goods receiving point. An inbound delivery is a document that is structured in the same way as an outbound delivery for a goods issue.

    • An inbound delivery is a request that goods should be put away in a warehouse. A transfer order for putaway can be generated from an inbound delivery. 

      1. Creating Inbound Delivery (VL31N)   Logistic Execution> Inbound Process>GR for Inbound delivery>Create>Single Documents (VL31N).

    • Enter, and we get following screen

    •  Enter the Vendor and Purchase OrderEnter

      1. Goods Receipt for Inbound Delivery (MIGO)Execute and SaveFollowing screen pops upInbound Delivery Created

        Save the Inbound Delv no for future reference     Logistic Execution> Inbound Process>GR for purchase Order>Enter GR for PO

        Or Type MIGO

  • GR posted.Note down the Material Document no for the Reference.

    6.Cancellation on Goods Receipt    

  • GR Cancelled.I hope the Process explained here is very easy to understand for a beginner.Putaway Overview

  • When goods are delivered, the goods receipt is entered in Inventory Management. On the basis of the goods receipt posting, a transfer requirement and a quant in the GR area are created.

  • In order to put away the goods, a transfer order is created with a reference to the transfer requirement. When the transfer order is created, the system determines the destination storage bin.

  • The transfer order documents are used to physically put away the goods. The transfer quantity remains unavailable in the warehouse until the putaway is confirmed in the system.

  • As soon as the physical putaway has taken place, you confirm the transfer order and also enter any differences that might arise.

  • Depending on the system set-up, transfer orders can also be created automatically in the background.

  • The transfer order is an instruction to move materials from a source storage bin to a destination storage bin within the warehouse complex.

  • Transfer orders contain the following information:

  • Material number

  • Quantity to be moved

  • Source, destination and return storage bins

  • The information that the transfer order needs comes from several sources:

  • Material master record

  • Warehouse management movement type.

    • Strategies for finding the source or destination storage bins

    • User entries

    • Source documents, such as transfer requirements and deliveries

    • The transfer requirement list contains all transfer requirements that respond to the selection criteria entered. On this list, it is possible to select a transfer requirement, process it and post the transfer order in the background.

    • The overview of transfer requirement items contains all the items in the selected transfer requirement. It is possible to select one or several items in the list and process them either in the foreground or in the background.

    • On the preparation screen, the quantity of a specific transfer requirement item is distributed to different storage bins (where appropriate with a palletization recommendation by the system).

    • The detail screen of a transfer order item contains a source item, a destination item, and sometimes also a return item.

2. Types of Putaway Strategy (We have already discussed in the Part-1 of the Article.

  • Manual stock placement

  • Fixed bins

  • Near Fixed bin

  • Addition to existing stock

  • Open storage

  • Next empty bin

  • Bulk storage

  • Near picking bin

Etc…

3. Transfer Order for Material  Document

  1. TO for Material Document (LT06)

First Login to Sap

You enter into the following screen.

Note down the TO no for future reference.

4. Print A Transfer Order

  • Generally speaking, transfer order is printed out as soon as they are created, or they are passed on via radio frequency to mobile data entry devices (MDE).

  • You can print out transfer orders in different ways:

  • As a single slip (one item per page)

  • As a collective slip (several items per page)

  • As a pick list (several transfer orders with different sort options per page)

  • You can also print out bar codes (optional).

  • You can also print out labels for each transfer order.

  1. Print Transfer Order (LT31)

Logistic > Logistic Execution > Inbound Process > Goods Receipt for Inbound Delivery > Print and Communication > Single print Transfer Order

Or Type LT31

  1. Print Preview (SP01)

5. Confirm a Transfer Order

  • When you confirm a transfer order or a transfer order item, you are in effect verifying that the required quantity of material has actually been transferred from one location to another and that the processing of the transfer order or item has been completed.

  • The TO Confirmation function provides three different confirmation options:

  • Standard

    1st screen – confirm that actual quantities are equal to target quantities

    2nd screen – enter any differences that have arisen (1 screen per item)

  • Input list

    A screen for confirming quantities and entering any differences

  • TO confirmation can be carried out directly in the warehouse using a PDC (portable data capture) device.

  • You can make settings in Customizing to specify whether or not transfer orders should be confirmed automatically.

  1. TO confirmation (LT12)

Logistic > Logistic Execution > Inbound Process > Goods Receipt for Inbound Delivery > Putaway > Confirm Transfer Order > Single Document > In one Step

And Enter, we will get the following Screen

Enter and we get the following screen

6. Cancel a Transfer Order

Execute and Save

Following Screen Pops Up

TO is cancelled.

7. Transfer Order for Inbound Delivery

 

 

Enter the source Bin, Quantity, storage unit type,

And execute, we get the following screen.

Enter… And following screen pops up

TO Created.

Note down To no for future reference.

******SAP WM Outbound/Picking process*******

Now we can see sales cycle Process- Nothing but Outbound or Picking Process in SAP WM.

*********************************************************

Outbound Process Overview

Request from a customer to a company to deliver a defined quantity of products or provide a service at a certain time.

The sales area that accepts the inquiry is responsible for completing the agreement.

A customer inquiry comprises one or more items that contain the quantity of a material or service entered in the order.

The total quantity of a sales order item can be subdivided into schedule lines that contain the various subsets with the corresponding delivering dates.

Items can be structured in a hierarchy. This enables you to differentiate between batches or explode any combinations of materials (bills of material).

The conditions which are valid for the items are listed in the item conditions. The conditions for an item can be derived from an entire condition, which is valid for the entire sales order.

An item can be subdivided into several billing plan deadlines that each determine a date on which a fixed amount of the item is to be billed.

Integration

Not only the customer but also other business partners can be specified as sold-to parties in different partner functions (for example, ship-to party).

The items in a sales order can be taken from the times in a customer quotation.

Create Sales Order  (VA01)

Logistic > Sales and Order > Sales > Order > Create     

Or Type VA01

We enter into the following screen.

Order Types

OR Standard Order
AA Promotion Order
BV Cash Sale
KE Consignment Issue
KR Consignment Return
RA Repair Request
RE Return
SO Rush Order

Here We are seeing Sales Order Doc Type-  OR- Standard order. Normally this SO Types will better explained in Sales and Distribution. So I hope its explanation does not required in details.

Enter, and we get the following Screen

Enter the Following fields:

Ship-To-Party

Sold-To-Party

PO Number

Incoterm

Weight

Execute and save

Following screen pops Up.

Note down The Standard Sale Order no for future reference.

2. Outbound Delivery

Goods issue for an outbound delivery in the SAP WM includes picking and goods issue posting for a material to be delivered, based on the outbound delivery. If you map the goods issue process via an outbound delivery, you can execute the processes related to the goods issue within the warehouse (picking, stock removal) before you trigger the actual goods issue posting.

Goods Issue for an Outbound Delivery Using WMS or Lean WM

We have activated the interface between Shipping and the WM in the Customizing for Warehouse Management under Interfaces –> Shipping. We have created outbound deliveries or scheduling agreements in SAP Shipping based on sales orders. The outbound deliveries serve as reference documents for the picking processes to be performed in the WM..The material to be picked is stored in a WM-managed storage location. We have defined a picking strategy in the Customizing for Warehouse Management under Strategies –> Picking Strategies.

We create the outbound delivery for a sales order or for another preceding document.

The system recognizes at outbound delivery item level which items are relevant for stock removal with the WM. It sets the WM activity status in the outbound delivery to A (relevant to Warehouse Management). We create the transfer order for the outbound delivery for picking from your warehouse. We can create the transfer orders directly or let the system create them automatically

We can create several transfer orders per outbound delivery if you have activated the transfer order split in the Customizing for Warehouse Management.  If the batches to be picked are not defined in the outbound delivery, and if We want to pick more than one batch to be able to cover the required quantity, We must confirm these batches to the outbound delivery. In doing so, you create a new outbound delivery item for each batch. The system sets the WM Activity status to B, which means that a transfer order has been created but not confirmed. A print out of the TO serves as a picking document when removing goods from the source storage bin that has been determined, to the goods issue interim storage area. When we confirm the TO -> We confirm that the goods have been brought to the goods issue interim storage area. By doing it we can catch the between the required quantity and the picked quantity. Post the goods issue for the outbound delivery.  We can stay informed about progress of the stock removal throughout the entire goods issue process via the outbound delivery, since the system updates the WM activity status every time a step is completed in the transfer order processing.

Outbound Delivery with reference to Sales Order (VL01N)

Logistic > Logistic execution > Outbound Process > Goods Issue for Outbound Delivery > Create  > Single Document > with reference to Sales Order

Or Type VL01N

Enter, and we will get the following Screen

Note down the Outbound Delivery no for the future reference.

3. Picking

  • In order to pick a material, an outbound delivery is created.

  • To pick the goods, a transfer order is created with a reference to this outbound delivery. When the transfer order is created, the system determines the source storage bin.

  • The goods are physically removed from the warehouse with the help of the transfer order documents.

  • As soon as the physical stock removal is completed, the user confirms the transfer order. Here it is possible to enter differences straight away.

  • Once the transfer order has been confirmed, the goods issue is posted. You can work through this step when you are confirming the TO.

  • Depending on your system setup, you can specify that the system should create transfer orders automatically in the background.

  • Transfer Order for Outbound Delivery (LT03)

 Logistic > Logistic execution > Outbound Process > Goods Issue for Outbound Delivery > Picking  > Create Transfer Order  > Single Document

Or Type LT03

Enter, and we get the following screen

Enter the Outbound delivery no.

Enter..

Fill the following field:

Source Target Quantity

Source Bin

Storage Type and section

Enter, we get the following screen.

Important Fields..

Destination bin

Source Bin

Note down the TO no for future reference

  • Print Transfer Order (LT31)

CTR+P

  • Transfer Order Confirmation (LT12)

Logistic > Logistic execution > Outbound Process > Goods Issue for Outbound Delivery > Picking  > Confirm Transfer Order  > Single Document >one step   

Or Type LT12

Enter. And we get the following Screen

TO Confirmed.

  • Transfer Order Cancellation (LT15)

 Once Transfer Order is Confirmed, it can’t be Cancelled

Logistic > Logistic execution > Outbound Process > Goods Issue for Outbound Delivery > Picking  > Cancel Transfer Order  > Single Document  

Or Type LT15

Enter. And we get the following Screen

Enter.. And we get the following Screen

 

TO Cancelled.

Post Goods Issue (VL02N)

Logistic > Logistic execution > Outbound Process > Goods Issue for Outbound Delivery > Post Goods Issue > Outbound Delivery Single   

Or Type VL02N

Enter. And we get the following Screen

4. Billing Document

Create Billing Document (VF01)

Logistic > Logistic execution > Outbound Process > Goods Issue for Outbound Delivery > Post Goods Issue > Outbound Delivery Single  

Or Type VF01

Enter and we get the following screen

Execute and save

Billing Document Generated.

  • Display Billing Document (VF03)

  • Document Flow (VL02N)

Here we have created Simple outbound scenario with SAP WM TO Creation and confirmation. I hope this is more useful for new Consultants or consultants new to SAP WM want to learn WM Concepts.

 

As a Continuation to SAP WM Inbound and Wm Outbound Scenarios I would like to continue with WM Post Change Notice in Short- PCN.

****** SAP WM POST CHANGE NOTICE******

*****************************************************

A Post Change Notice generally refers to change to the stock data of a material affecting bookkeeping information. In the case of most posting changes, for example during release from quality inspection stock, the goods remain in the same physical storage bin.

Example

  1. Releasing stock from inspection

  2. Designating available material as inspection stock

  3. Changing a material number

  4. Splitting materials into two or more batches

  5. Converting special stock, such as consignment stock or returned stock, into company stock

  6. Changing ownership of stock from one plant to another.

Posting changes in the WM are not connected with a physical goods movement. In a posting change, the stock category, batch number, or material number of the material, for example, may change, but the material physically remains in the same storage bin.

You execute the posting change in the WMS on the basis of a transfer order (TO) for posting changes, and post the following:

  • The removal of the stock from one stock category, and

  • The receipt of the stock in another stock category.

Both posting procedures must always be consistent. A transfer order for a posting change therefore always consists of item pairs.

1.2 Transfer Postings and Stock Transfers: Differences

We can post both stock transfers and transfer postings in SAP ECC. Transfer postings differ from stock transfers, in that transfer postings are not connected with a physical goods movement. They usually involve a change in stock type, batch number, or material number. An example of transfer posting is the release from inspection into the company’s own stock.

1. By executing a posting change in Inventory Management for a material that you also manage in the WM, We simultaneously trigger the posting change in the WM.

2. Based on the posting change in MM-IM, the system creates a posting change notice in the WM.

3. In the logical interim storage area for posting changes (posting change area), the WM creates a negative quant for the material that is to be booked out and a positive quant for the material that is to be booked in.

4. We can display an overview of the posting change notices to be processed.
Depending on your selection criteria, the system displays all open, all completely processed, or all partly processed posting change notices.

5. To execute the posting change in the WM, create a transfer order for a posting change notice. We have the choice of having the system create transfer orders for posting changes automatically.

The single item in the posting change notice becomes an item pair in the transfer order:

o With the first TO item of this item pair, the system moves the stock in question to the logical posting change interim storage area, which serves the purpose of the posting change.

o With the second TO item of this item pair, the system moves the stock, with a different status, either:

To the original storage bin (posting change at storage bin).
The movement is a purely logical one within the WM. You do not physically move the material stocks in the warehouse, you simply change the material status in the system.

To another storage bin (posting change to another storage bin).
We release a material from quality inspection stock and put it away in another section of your warehouse complex.

7. We confirm the posting change TO to complete the change in status of the stock.

8. When the posting change TO is confirmed, the system balances out the posting change interim storage area.

Release from quality inspection stock

After a material in the warehouse has been inspected, it should be released from inspection stock and made available for general use.

There are two different scenarios.

  • The material has been moved from the interim storage area for goods receipts into the warehouse, that is, a transfer order has been created to transfer the quant to a storage bin.

  • Some of the material has been moved from the interim storage area into the warehouse, that is, a transfer order has been created to transfer the quant to a storage bin. The rest of the material stays in the goods receipt interim storage area.

For the following example we discuss only the first scenario that is releasing stock from inspection that is already in the warehouse. We should know what is the actual task in SAP MM-IM and SAP WM

Tasks in IM

Releasing Stock from Inspection in IM

Tasks in WM

Once stock has been released from inspection in Inventory Management, you create a transfer order in WM using a posting change notice as the basis for the transfer order. (For stock in which no QM components are active, it is also possible to release stock from inspection entirely within WM.)

Processing bocked stock

The WM flags blocked stock with the stock category S.

A posting change for blocked stock occurs in the same way as a posting change for quality inspection stock.

We can execute a posting change for blocked stock both in Inventory Management and in the WM.

Posting change in quality inspection stock

We post unrestricted-use material in quality inspection stock if, for example, it has been damaged by water or fire. We can execute a posting change for quality inspection stock both in Inventory Management and in the WM. If the material is managed in QM, the posting change only occurs in the Quality Management (QM) component.

Posting change from material number to material number

A posting change from material number to material number is necessary if, for example, a material changes with time, so that it no longer corresponds to the characteristics defined in the material master, but rather to another material number.  On the basis of the posting change notice, the system creates a negative quant for the old material number and a positive quant for the new material number in the WM. As we all know In the standard system, movement type 309 is predefined for posting changes from material to material.

Dividing batches amongst other batches

We trigger a posting change from material to material in MM-IM. In doing so, you do not change the material number. Instead, you enter a new batch number for the desired material quantity. For more information.

Posting Change from Plant to Plant

Stocks from several plants are often stored in the same warehouse complex. When the ownership of stock is transferred from one plant to another within the warehouse number, this is referred to as a posting change, because the material stocks generally remain in their physical storage bin.

We process the transfer of the ownership as a posting change in Inventory Management (MM-IM). This creates a posting change notice, which you process in the Warehouse Management system (WM):

We trigger the posting change of the material stocks in MM-IM.
During the posting change in MM-IM, the system creates a negative and a positive quant in the posting change zone in the WM-managed warehouse. The system simultaneously creates a posting change notice for the quantity transferred. (many times during my projects i have faced this issue stock data while moving between the plants will not got nullified with neg Quant and Positive Quant. so we need to either reverse the Document or if any inconsistency we need to Develop small program to correct the Inconsistency and correct it. if that also not worked then we need to approach SAP for the Fix.

We process the posting change notice in the WM in order to post the stocks from one plant to another. In the standard system, you can use movement type 309 to process this type of posting change.

We can see this Explanation in Help.sap.com Website,

We have defined which posting changes should be triggered in the WM and automatically in Inventory Management. We do this in the Customizing for Warehouse Management under Interfaces -> Inventory Management –> Define Posting Changes.

We need trigger the posting change for the material in the WM using the transaction Posting Change WM and IM. To do this, choose Logistics –> Logistics Execution –> Internal Whse Processes –> Posting Change –> Inventory Management –> Posing Change in WM and IM.

We can implement this posting change procedure for the following posting change activities:

• Changes to the stock status between quality inspection stock, blocked stock, and unrestricted-use stock.

• Changes to the stock status between consignment stock and your company’s own restricted-use stock.

• Changes to the stock status between sales order stock and your company’s own stock.

• Changes to the stock status between project stock and your company’s own stock.

You can only trigger posting changes for QM-managed material from Inventory Management (MM-IM). Only then do you process the corresponding posting change notice in the WM. The system processes the inspection lot in order to execute the change to the status of the material stock.

3.  Stock Category (Available to Quality) – Posting Change

I   Create Posting Change- Direct to Bin Stock (LU01)

Enter and save.

Posting Change Notice Created..

Note down the no of Posting Change Notice.

I I  Transfer Order for Posting Change Notice (LT05)

Logistic > Logistic execution > Int Warehouse process > Posting Change > Via Inv Mgmt > Transfer Order > Create

 

Select the required Field and Click ‘Quant List’

Create TO by clicking the ‘Forward TO’

Fill the Destination Bin Details and save

TO Created…

I I I.   Stock Overview (LS26)

I V.  TO Confirmation (LT12)

F Logistic > Logistic execution > Int Warehouse process > Posting Change > Via Inv Mgmt > Transfer Order > Confirm  

Enter and we get the

Following Screen

Posting Change in Inventory Management (MB1B)

Logistic > Logistic execution > Int Warehouse process > Posting Change > Via Inv Mgmt

Or Type MB1B

Enter, and we get following Screen

Enter Receiving material, quantity and Movement Type.

Enter and save.

  1. Stock Overview (LS26)

4.  Storage Location-To-Storage Location – Posting Change

Create Posting Change- Direct to Bin Stock (LU01)

 

Enter and save.

**Note: Rest, follow the same Procedure

5.  Plant-To-Plant – Posting Change

Create Posting Change- Direct to Bin Stock (LU01)

Logistic > Logistic execution > Int Warehouse process > Posting Change > Direct to Bin Stock >Create

Enter and we get the following screen

Enter and save.

I hope PCN steps will help to understand. One important thing here is as earlier mentioned

*********Posting changes in the WMS are not connected with a physical goods movement. In a posting change, the stock category, batch number, or material number of the material, for example, may change, but the material physically remains in the same storage bin. Transfer postings differ from stock transfers, in that transfer postings are not connected with a physical goods movement.  We can execute the posting change in the WM on the basis of a transfer order (TO) for posting changes, and post the following:

  • The removal of the stock from one stock category, and

  • The receipt of the stock in another stock category.

I hope the Details Furnished here are more useful to Consultants. In Simple SAP is really rocking with its Products to satisfy end customers, Business Leaders, management and Clients. so it Occupied No-1 in IT-Solution- ERP/ SCM Field. Thanks to SAP for providing technically and fucntionaly strong Product. I heard many times from my clients/ users -SAP is more Friendly and versatile Product and after SAP implementation they said they can able to track the Inventory and maintain it Warehouse Operations efficiently.

Part-1 navigation link

 

SAP Warehouse Management_Step by Step configuration Document

 

SAP WM –Process, Functionality, Scope, Benefits, Advantages, Disadvantage- Complete Reference-Part 1

http://www.sapfunctional.com/WM/WMQ1.htm

We will see the SAP WM Integration Part with Other Modules in my next Article- Part 3. Thanks for all your support.

SAP WM- Process, Functionality, Scope, Benefits, Advantages, Disadvantage-Complete Reference-Part 3

 

 

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6 Comments

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  1. Krishnan V

    Good Explanation with Screen Shots. more stuff shared and for me takes more time. but undoubtedly it is good trial. I am not seeing this much detailed documents in SAP WM.i struggled more during my starting days in WM. this article will solve the problem for entry guys.

    (1) 
  2. Elizabeth mary

    Even i am in SAP WM for more than 10 years. i consider your articles as a good reference.  Please correct spell errors.

    Thank you for taking the initiative and getting it done. Elisa

    (0) 

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