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Author's profile photo Lingaiah Vanam

S/4HANA Embedded Extended Warehouse Management (EWM) Overview

SAP Extended Warehouse Management (EWM) is used to efficiently manage inventory in the Warehouse and for supporting the processing of goods movement. It allows the company to control its Warehouse inbound and outbound processes and movement of goods in the Warehouse.

The main process in a Warehouse is incoming and outgoing materials, goods receipt and goods issue, fulfill customer orders, and distribution of goods. When a company doesn’t store any goods, then there is no need for Warehouse management to manage goods.

With the help of SAP EWM, all the goods movements are controlled by a warehouse management system and provides you the tools to monitor warehouse activities. You can also manage additional functions in the Warehouse like creating a serial number, batch number, vendor management inventory, resource optimization, and value-added services. SAP Extended Warehouse Management allows you to not only monitor the quantity of goods in Warehouse but to manage other critical functions and delivery of goods efficiently.

SAP Extended Warehouse Management

SAP S/4 HANA, the Digital Core, is the next generation of ERP to modernize for Digital Business. The SAP lines of business solutions continue to be consumed as standalone solutions or as part of the SAP S/4HANA Lines of Business solutions giving more choice to customers, allowing true hybrid scenarios and incremental deployments.

In Q4/2016, SAP EWM became an embedded application component within SAP S/4HANA (on-premise edition 1610), known as S/4HANA

Supply Chain Management for extended warehouse management. To make it simple, we’ll call it “embedded EWM”. With the release of it, both basic warehousing and extended warehouse management are running on a common code base embedded in SAP S/4HANA.

SAP Extended Warehouse Management (SAP EWM) is now available as an embedded application in SAP S/4HANA. It combines best-in-class proven warehouse management capabilities with the benefits of SAP S/4HANA.

Technically, the simplified integration of the embedded EWM within the on-premise edition of S/4HANA is reached by the adoption of a unified data model (that is, new product code line). The goal is to simplify the data model as much as possible. The major simplifications are as follows:

  • Core Interface is not used any more for master data including a business
    partner, material master and batch.
  • Redundant customizing tables are eliminated.
  • Direct read of actual data in SAP S/4HANA is realized instead of
    replication, for example, material values, accounting objects, purchase
    orders, production orders, etc..

Deployment Options

SAP Note 1606493 ‘SAP EWM Deployment Options Best Practices’ provides some hints on the various different decision criteria. The embedded EWM in S/4HANA is similar to EWM-on-ERP. One of the important decision criteria is the system sizing. SAP offers a Quicksizer tool which also provides a ‘HANA version’ of Quick Sizing. Within the HANA Version of the Quick Sizer Tool you
find the embedded EWM sizing tool in ‘SAP S/4HANA->EWM Inbound’ and ‘SAP S/4HANA->EWM Outbound’.

In case of large rollout plans SAP recommends an SAP DBS service to evaluate the specific requirements and boundary conditions and to create a recommended proposal for EWM deployment strategy. SAP already has experience in such a service including the new option of the embedded EWM in S/4HANA.

EWM and WM can be run in parallel on a single S/4HANA client. The warehouses must be linked to different storage locations. It is not possible to run a single warehouse (single storage location) with a mixture of WM and EWM processes.

Key Capabilities

Inbound processing

  • Transportation unit processing; goods receipt management and optimization
  • Inbound quality management and internal routing

Storage and operations

  • Physical inventory, slotting, replenishment, and rearrangement
  • Kit-to-stock management and value-added services

Outbound processing

  • Outbound planning including route, wave management, goods issue, and pallet planning
  • Picking optimization, packing, staging, and load management

Warehouse Management Portfolio

Embedded EWM in S/4HANA is available in two versions:

  • Basic Warehouse Management
  • Extended Warehouse Management

Refer to the Feature Scope Description of SAP S/4HANA 1909 for an overview of the features contained in each version.

Both versions are available with the SAP S/4HANA installation. You set up the warehouse management version at the warehouse number level. You can change the version used by a warehouse at any point in time.

Basic warehousing functions of embedded SAP EWM are included in the SAP S/4HANA Enterprise Management license. Advanced functions will require the classic SAP EWM engine license. The Advanced and Basic functions are as follows:

The de-central EWM always requires the classic SAP EWM engine license no matter using advanced or basic features or not.

Major Differences WM and S/4HANA EWM

Major differences between EWM in SAP S/4HANA 1909 and decentral SAP EWM 9.5

EWM in SAP S/4HANA and SAP EWM 9.5 share a common core of warehouse management functions. They support the same business scenarios and processes with only minor exceptions:

  • Embedded EWM in SAP S/4HANA offers a simplified integration into other SAP S/4HANA applications
  • EWM in SAP S/4HANA provides additional functionality
  • Some restrictions apply in embedded EWM in SAP S/4HANA

Restrictions of embedded EWM in S/4HANA 1909 compared to functions that are generally available in SAP S/4HANA:

  • Batch derivation
  • Batch-specific unit of measure and active ingredients – see also SAP note 2432414
  • Interchangeable Manufacturer Parts
  • International address versions for locations and supply chain units
  • Special stock indicators other than E (Orders on hand), K (Vendor Consignment), M (Returnable Packaging from Vendor), Q (Project Stock)
  • Valuated stock in transit (SiT) processes with EWM-managed storage locations (but STO processes without valuated SiT are supported) – see also SAP note 1822497
  • VMS and JIT processes as described in SAP note 2825796
  • Restrictions related to QM integration:
    • Inspection lot in the material inspection in Advanced Returns Management integrated with QM, see SAP Note 2259775 and 2481845
    • First article inspection
    • Monitor receipt of quality certificates in inbound during goods receipt posting
    • Quality inspection in outbound (inspection type 10, 11, 12): open inspection lot results in hanging queue during goods issue posting
    • Integration into quality notification, especially stock postings (for example, from blocked stock to unrestricted-use stock)
    • Move quality inspection stock between MM-IM and EWM-managed storage location (transaction QAC2)
    • Link between inspection lot and material document for stock postings with usage decision (technically: update of table QAMB at usage decision)
    • Calculate samples on basis of number of handling units
    • Inspection result recording for serial numbers (transaction QE51N)
    • Visibility of assigned serial numbers on the ARM material inspection

Warehouse management in SAP S/4HANA Cloud

Warehouse management capabilities in SAP S/4HANA Cloud enable you to manage stock on the storage-bin level for better visibility and control in your warehouse and with tight integration to your business processes.

Benefits

  • Control and record all movements within your warehouse –from goods receipt to goods issue
  • Map your warehouse complex in the system –down to a storage-bin level
  • Extend the scope of SAP S/4HANA Cloud core processes with warehouse management capabilities
  • Increase visibility and control in warehouse processes

SAP Best Practice Content

SAP S/4HANA Best Practices content is the recommended content delivery for SAP S/4HANA product. With the SAP S/4HANA Best Practices content for EWM, customers get a new warehouse XX10 (XX = Country Code) with its pre-defined warehouse structure, related customizing, sample master data and business processes based on this setup. The key features and benefits are
as follows:

  • Quickly enable pre-configured basic warehouse management processes using a clearly defined scope and explicit guidance
  • Comprehensive configuration settings, Test Scripts, Process Diagrams and other valuable assets, which can be used as accelerators in implementation projects
  • Fully compliant to one system requirements and simplifications such as No CIF, use of S/4HANA Business Partner, Central Master Data, direct usage of S/4 Customizing (e.g. HU Types) and direct read of the purchase order (no EGR).
  • Predefined warehouse structure and sample master data
  • SAP Fiori Launchpad Enabling – unified user experience across all UI technologies
  • Support of Germany and USA Localization

https://rapid.sap.com/bp

SAP EWM Future Investment

SAP strategy is to deliver a common core –developing one code line for warehouse management and delivering this for different deployment options for customer needs.

LE-WM remains available until the end of 2025, and this is also applicable to customers who didn’t run WM before. However, considering the use right and business needs, we sincerely suggest
customers evaluate the necessity before they decide to go with LE-WM, as EWM has been the strategic warehouse solution of SAP with all the innovations developed all along.

Key Innovations Road Map

Additional Information

https://help.sap.com/viewer/9832125c23154a179bfa1784cdc9577a/1909.000/en-US/4ecb88b8b2422afee10000000a42189e.html

I would very much appreciate your comments and suggestions.

S/4HANA Embedded EWM Configuration – S/4HANA Embedded Extended Warehouse Management (EWM) Advanced Production Integration Configuration

Best Regards,

Lingaiah

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      49 Comments
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      Author's profile photo Deshattiwar Prashanth
      Deshattiwar Prashanth

      Dear Lingaiah,

      Thanks for sharing a wonderful blog, much appreciated.

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thanks for your comment Deshattiwar Prashanth

      Author's profile photo Hendrik Schulte-Bahrenberg
      Hendrik Schulte-Bahrenberg

      Nice blog. Thanks Lingaiah!

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you! Hendrik Schulte-Bahrenberg

      Author's profile photo ELDO DAVIS
      ELDO DAVIS

      Nice

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you

      Author's profile photo Chitti Babu Dasari
      Chitti Babu Dasari

      Good explanation

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Chitti Babu Dasari for your comment.

      Author's profile photo Amit Chaurasia
      Amit Chaurasia

      This is very information Lingaiah!

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you, Amit.

      Author's profile photo Damir Duvnjak
      Damir Duvnjak

      Hi Lingaiah,

      Nice article, with a lot of useful information, but for readers of this blog, it would be also good to keep in mind important approach from SAP related to the LE-WM component after 2025.

      First of all, I also support the implementation of embedded EWM in S/4HANA, unlike the old LE-WM solution, but in S/4HANA version 1909 SAP offered kind of possibility to use LE-WM component even after 2025, so called “Stock Room Management”.

      The main reason for creating the offering named Stock Room Management is to give existing customers of LE-WM an opportunity to keep these warehouses untouched that do not benefit immediately from moving to embedded EWM.

      More info can be found on the link below:

      https://blogs.sap.com/2019/06/27/s4hana-stock-room-management/

      BR,
      Damir

       

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thanks for your comment Damir Duvnjak

      Author's profile photo Prajwal Gangolli
      Prajwal Gangolli

      Dear Lingaiah Vanam

       

      Could you please upload the step by step process for the internal bin to bin stock transfer/movements with transaction codes for SAP EWM.

      Best regards

      Prajwal

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Prajwal Gangolli for your comment.

      Author's profile photo Chandramouli P
      Chandramouli P

      Thanks for sharing the information. It's really helpful.

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Chandramouli P

      Author's profile photo Guru Prasad
      Guru Prasad

      Nice blog.

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Guru Prasad

      Author's profile photo Ravinder Bada Narayana
      Ravinder Bada Narayana

      Good blog thanks for sharing.

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Ravinder Bada Narayana

      Author's profile photo Prathima Kondeti
      Prathima Kondeti

      Excellent and very Informative.

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Prathima Kondeti

      Author's profile photo Suresh Kumar Angara
      Suresh Kumar Angara

      Thanks for sharing nice blog about S/4HANA EWM.

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Suresh

      Author's profile photo Sreejith Gigi Palackal
      Sreejith Gigi Palackal

      Nice blog. Everything needed to know in a nutshell.

      Keep blogging

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Sreejith Gigi Palackal

      Author's profile photo Amit Sharma
      Amit Sharma

      Hi,

      Thank you for sharing..!!

      Very Informative and efficiently  explained. Looking forward for more basic blogs for EWM and IBP.

       

      Regards,

      Amit

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Amit Sharma.

      Author's profile photo Harish Thatte
      Harish Thatte

      Thank you for the wonderful insight in S4HANA Embedded Extended Warehouse Management (EWM)

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Harish

      Author's profile photo VARESH N
      VARESH N

      Good blog about S/4HANA Embedded EWM.

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Varesh.

      Author's profile photo Ralph Boehme
      Ralph Boehme

      Awesome Overview!

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thanks Ralph Boehme for your comment.

      Author's profile photo Bala Sundaram
      Bala Sundaram

      Good Blog.It is giving a comprehensive view about the past and future of  Embedded EWM in S4HANA.

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Bala Sundaram for your comment.

      Author's profile photo Michael Davis
      Michael Davis

      I am new to EWM and would like to understand how my 3rd party application (which uses the RFC / BAPI layer integration) would work. Are there EWM specific RFCs or are additional fields available in the regular RFCs that update EWM fields? To confirm the save, are there EWM specific T-codes or again, regular screens with additional fields?

      Author's profile photo Surya Gorle
      Surya Gorle

      Very useful, appreciate it

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Surya for the comment.

      Author's profile photo Adhira Singi
      Adhira Singi

      Very well explained, everything in on one page.

      Much appreciated!

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you very much for your comment!

      Author's profile photo venkatasaivijay vasireddy
      venkatasaivijay vasireddy

      Excellent blog Lingaiah!

      S/4HANA Embedded EWM features and current state of application.

      Vijay

      Author's profile photo Lingaiah Vanam
      Lingaiah Vanam
      Blog Post Author

      Thank you Vijay!

      Author's profile photo Sivakumar A K
      Sivakumar A K

      Nice insight, Thanks Lingaiah!

      Author's profile photo paula galliussi
      paula galliussi

      Muchas Gracias! consulta se puede cambiar las prioridades en las tareas en el caso de

      S / 4HANA Embedded Extended

       

      thanks a lot

      Author's profile photo Axel Breiter
      Axel Breiter

      Very good start point for any research on that topic. Thanx for that.

      Author's profile photo Akhilesh Singh
      Akhilesh Singh

      Very elaborative blog to share the history of SAP Warehouse Management system and differentiate WM and EWM function in précised manner. Thanks for sharing Lingaiah!!

      Author's profile photo Syam Kumar Dodda
      Syam Kumar Dodda

      Very useful information. Thanks for providing.

      Author's profile photo Kenji Eimura
      Kenji Eimura

      Hello,

      I am looking for a list of transaction codes for EWM.
      Is there any information available?

      Best regards,

      Kenji Eimura
      2021/08/24 Tue