Synchronous backflush posting with Repetitive manufacturing in embedded EWM in S/4HANA 1909 Release
SAP has introduced several new features and enhancements with Extended warehouse management (EWM) in S/4HANA 1909 Release. SAP’s Joerg Michaelis (Product Owner of EWM) has described very well on business benefits on the enhanced integrations with manufacturing / production in his blog as in below link.
Highlighted the new KANBAN replenishment strategy with embedded EWM in S/4HANA 1909 release in my previous blog as in below link
My present blog is to describe to new synchronous backflush posting with repetitive manufacturing (REM) introduced in S/4HANA 1909 release , highlight the differences in process flows, transactions (documents) and the pre-requisite configurations.
Repetitive manufacturing is used to produce a product (with low complexity) over a period of time. It is based on planned order in SAP unlike production order in case of discrete manufacturing. ‘Backflush’ automates the goods issue of components at the confirmation of operation or order i.e there is no need to post the components manually at the completion / confirmation of the order.
Backflush (automatic goods issue of components) from a EWM managed storage location was not possible for REM in embedded EWM prior to S/4HANA 1909 release. Process flow with REM in embedded EWM prior to 1909 release is depicted below. Components must be stored in IM (Inventory managed) storage location. REM confirmation triggers only inbound delivery for goods receipt of finished good in ERP (or S/4HANA core) which gets transferred to embedded EWM. Once the putaway warehouse task is confirmed (or Goods receipt is posted), Confirmation log is created in ERP (or S/4HANA core) for goods receipt. Posting for the good issue of components from IM storage location needs to be carried out separately.
Refer the below image with SAP transactions to correlate (1), (2), (3), (4) and (5) with process flow diagram in above image. Note that the material document (5) has only posting for finished good with movement type 131.
With 1909 release, it is now possible to post goods issue of components from EWM managed storage location and also to synchronize the goods issue with goods receipt of final product. Refer the below image for the process flow diagram with synchronous goods movement in embedded EWM for REM in 1909 release. Note that there is no inbound delivery (neither in ERP nor in embedded EWM) at REM confirmation. Warehouse tasks are created in EWM for ‘goods receipt posting’ & ‘goods issue posting’ and confirmed automatically which creates confirmation log (in ERP or S/4HANA core) for both goods receipt and goods issue synchronously.
Below image shows the corresponding SAP transactions correlating (1), (2), (3) with the above process flow diagram. Note that the material document (3) has both the finish good with movement type 131 and component with movement type 261.
The pre-requisite configuration for this synchronous goods movement for REM is to flag the checkbox ‘Post synchronously to bin’ under ‘Embedded EWM’ in REM profile at IMG menu path SAP IMG->Production->Repetitive manufacturing->Control->Define repetitive manufacturing profile.
This synchronous goods movement has immensely simplified the REM confirmation and has eliminated the goods issue posting for the components manually. Moreover, the component can now also be kept in EWM managed storage location alongwith finished good.
Also note that, some customers (or business scenarios) may prefer the creation of inbound delivery at REM confirmation and want to confirm the putaway task only when the finished good is kept in storage bin. That is also very much possible in 1909 release and in that case the checkbox ‘Post synchronously to bin’ in REM profile should not be flagged.
This blog is based on my personal insights. Feedback / comments will be appreciated. My next blog will be on ‘Synchronous goods receipt posting’ in embedded EWM in S/4HANA 1909 release.