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Author's profile photo Atılay CANERKEK

Labor Management

Hi all,

I want to explain how to configurate Labor Management in SAP EWM.

Let’s start to learn what’s labor management and funcitons?

Labor management helps you to plan labor times and resources in your warehouse more effectively, thereby making your warehouse more productive. After planned work is executed in the warehouse, a comparison can be made of the planned versus the actual times. Labor Management has the ability to be connected to an external HR system.


Labor Management Functions


Planned and Executed Workload

The system creates automatically for each external process step and activity area a document for the planned workload. After performing the work, you can use the executed workload to compare the planned and actual durations. Each task in the warehouse has a certain workload. You can only plan this workload if the scope of the task involved is fixed, for example, if a warehouse order that has various warehouse tasks has been created. After executing the work, additional data is then available, such as which worker executed the work, the exact start and finish time, and the resources used.

In the executed workload, you can compare the planned and actual duration for:

• Warehouse orders

• Value-added service orders

• Quality inspection documents

• Physical inventory documents

• Indirect labor

You can use the information contained within the planned workload document to make strategic decisions. For example, this enables you to use the total of all planned activities in a particular activity area, on a particular day, to plan the number of employees for this day, in this activity area.


Customizing Flows


SPRO Labor Management Activate Labor Management.


Activate Labor Management for internal process steps

Activate Labor Management for external process steps


The processor is defined as a business partner with role Processor (LM001).

Along with address data and assignment, the user-name of the processor must be entered, You must also specify in which warehouse a resource works, and which processes they support. A labor factor can also be entered to specify a labor rate for a worker. This could be a standard or actual amount. You can also define (by selecting relationships) whether a processor is a member of a group, or group leader.

Utilizing the business partner allows us to use the processor role in other applications. The processor record is entered once, and is then available to Labor Management, as well as to additional applications. Information related to processors can also be viewed in the warehouse monitor.


SAP menu Extended Warehouse Management Master Data Resource Management Processor /SCMB/PRR1 – Create Processor.


Preprocessing Header

1. Define an entry for the preprocessing header.

You can use the warehouse number, an activity area, or a warehouse process type as a key. When determining preprocessing, the system then selects deliveries with these attributes. You can also assign a condition and a storage process to the preprocessing header. The storage process is used to determine the process steps that are relevant for the delivery in the warehouse. You can define the condition in the condition editor. It is used to find different storage processes for special attributes of the delivery items. In this way, for example, you can differentiate between substances that are hazardous and non-hazardous.

2. If you have created an entry for the preprocessing header, you can create dependent entries for the preprocessing item. Each entry corresponds to a step that will take place in the warehouse for the selected storage process. You are free to combine these steps in any way you choose. You can specify an activity area in which the workload will come about. You can also control the amount of workload that is generated. Here, you specify a percentage, which is offset with the determined workload. You can use a condition at this level to check special attributes again, such as defined maximum weight. Finally, you can specify duration for a process step. This duration is later used to determine when a process step occurs in delivery processing.


SPRO  Extended Warehouse Management Labor Management Set Preprocessing

Preprocessing with Assistant

Like in some other functions in EWM, you can define settings for preprocessing with the help of the system. The advantage of this is that the system reads and suggests all process steps for the preprocessing item from the storage process specified in the preprocessing header. This enables you to configure preprocessing analogously to the storage processes without great amount of effort.


SPRO  Extended Warehouse Management Labor Management  Preprocessing with Assistant


SPRO → Extended Warehouse Management Labor Management Define Activities

SPRO  Extended Warehouse Management Master Data Activity Areas Define Sort Sequence for Activity Area

SPRO → Extended Warehouse Management Cross-Process Settings Warehouse Task Define Control Indicators for Determining Warehouse Process Types

SCM SAP menu  Extended Warehouse Management Master Data Storage Bin Sort Storage Bins


SPRO → Extended Warehouse Management Cross-Process Settings Warehouse Task Define Process-Oriented Storage Control


SPRO  Extended Warehouse Management Cross-Process Settings Warehouse Task Determine Warehouse Process Type


SPRO → Extended Warehouse Management Goods Issue Process Strategies Determine Storage Type Search Sequence for Stock Removal


SCM SAP menu → Extended Warehouse Management Master Data Product Maintain Warehouse Product 

Transaciton : /SCWM/MAT1

SPRO → Extended Warehouse Management Cross-Process Settings Resource Management Define Queues after then choose “Define Queue Determination Criteria”



When you create outbound task and then go to confirm transaciton, you will check LM acitve area.

After then you will select to start WO, start date and time will come automatically.

At last step, when you will finish picking, click confirm and save bottom also confirm date and time will come automatically.

This is the direk labor… 

For indirect labor, you will use transacotin /SCWM/ILT – Maintain Indirect Labor Task or RFUI



Transaction : RFUI ( Indirect Labor )


Report transaciton : MON


Labor management is the very important for controlling employees performances. Because you check employees performances by day to day or per monthly.
Resource that means employee, they will be also check performance with RFUI.


Best regards.



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      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal

      Good effort Atilay, keep it up!


      M.Ozgur Unal

      Author's profile photo Rahul Kakade
      Rahul Kakade

      Hello ATILAY,

      This blog gives complete understanding of EWM labour management.

      NICE !! Keep it up.

      Best Wishes,

      Rahul Kakade

      Author's profile photo Mario Lozano
      Mario Lozano



      Our company is interested on implementing the Labor Management System SAP Module. We would like to find a company that could come and do a presentation on this as well as being able to arrange a customer visit to someone that is already using it.


      Any information will be greatly appreciated.


      Note: We are located in Dallas, TX.

      Author's profile photo Atılay CANERKEK
      Atılay CANERKEK
      Blog Post Author

      Hello Mario Lozano

      I just read your message.
      I want to help as much as I can.
      If you can explain your expectations in detail, I will try to help you with the necessary information.


      Best regards.




      Author's profile photo Muthu Manikandan
      Muthu Manikandan

      Good attempt Atilay.


      Thank you for sharing.

      Author's profile photo bruce king
      bruce king

      Hi Atilay,

      If you have 2003 LM installed what happens when you upgrade (apply new business sets) to advanced LM?