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Inbound Planning – Standard Integration Process TM and EWM in S/4HANA

Hello SAP experts!

I was discovering some new integration topics about EWM and TM in S/4HANA 1809, so in this post you’ll learn things about the standard integration process for inbound planning in S/4HANA 1809.

General: Goods are ordered and sent to an external customer, while the Transport is executed by an external carrier, and the goods are stored in a warehouse. In this context SAP TM is used for Transportation planning and SAP EWM for warehouse execution.

For the the Inbound Planning with Warehouse Execution (Integration EWM and TM) two different standard processes are available in S/4HANA:

• Delivery-Based Integration

• Order-Based Integration.

 

Delivery-Based Integration

The delivery-based integration process starts with a purchase order (PO) and follow-up inbound deliveries. In SAP EWM, the inbound delivery, which represents a warehouse request, and the starting point for subsequent activities in SAP EWM are created. Because of the transportation planning in SAP TM, a freight order is created. As soon as the transportation planning activities are finished, and the freight order status has been set to Cargo Ready for Unloading, SAP TM automatically sends an unloading instruction to SAP EWM, triggering the creation of a TU. The inbound delivery, now being assigned to the TU, contains all necessary information to trigger and monitor the goods delivery process in SAP EWM. This process typically continues with the truck arriving at the yard and unloading the cargo, and finally ends with put-away of the materials in the warehouse. During unloading, the goods are moved out of the transport unit from the door to a staging zone, consolidation zone, or work center for quality inspection, depending on operational needs. When Yard Management is used, the unloading process begins with the recording of the vehicle or TU at the control point. Put-away in the destination storage bin completes the GR process from a warehouse management perspective. After unloading, as soon as the warehouse worker has posted the GR, the SAP S/4HANA inbound delivery is automatically updated. In SAP TM, the relevant freight documents are updated.

Picture 1 – Delivery-Based Inbound Processing

Source: Transportation Management with SAP

 

Order-Based Integration

In addition to delivery-based integration, SAP EWM and SAP TM can also work together in an order-based process. In contrast to the previous scenario, the inbound delivery is now created because of freight unit–based delivery proposals and transportation planning in SAP TM. In the delivery-based scenario, inventory planning and logistics execution had priority over the transportation planning process in SAP TM, and deliveries were already created. In the order-based scenario, SAP TM plans transportation based on SAP S/4HANA POs and as a result proposes and creates deliveries based on the determined dates and quantities. Transportation planning results in the creation of freight orders, which are the basis for the delivery creation in SAP S/4HANA. In this context, SAP TM considers transportation constraints, such as resource availability and transportation durations. The created deliveries are usable by SAP EWM. In SAP TM, the freight order can be the basis for tendering and carrier selection.

The process flow of the order-based integration is quite like the delivery-based integration planning, so we just focus on the main differences here. The process starts with a PO and a planned delivery date. This automatically creates freight units. These are then the basis for transportation planning and optimization in SAP TM. The picture depicts the flow of documents in the order-based execution using SAP EWM and SAP TM in conjunction in SAP S/4HANA.

Picture 2 – Order-Basd Inbound Processing

Source: Transportation Management with SAP

 

The transportation planning in SAP TM is completed as soon as the transportation capacity of the freight orders has been fully planned and all relevant transportation requirements have been assigned. After the carrier has been assigned, SAP TM can trigger the creation of a SAP S/4HANA inbound delivery and communicate the freight order number to the selected carrier. These deliveries are based on the transportation planning results and therefore consider planning constraints, such as resource availability, distances, durations, and consolidation and dates. This step can be executed manually or automatically as a background job. As soon as the delivery has been created, the document flow in SAP TM is updated to show all related documents to a freight unit and freight order. The document flow of a freight order in SAP TM is shown. Purchase Order 69659 was initially the basis for the Freight Unit 4100000258. After the creation of the Inbound Delivery 80049967, its number shows up in the document flow.

Picture 3 – Document Flow SAP TM with PO

Source: Transportation Management with SAP

When the deliveries have been created, they are visible in the SAP EWM environment for further processing as EWM inbound deliveries. The SAP S/4HANA delivery is created with the proposed delivery date from SAP TM. If the SAP EWM inbound delivery haven’t been assigned to a TU, these orders are locked for execution. When the transportation planning activities are finished, and the freight order status has been set to Cargo Ready for Unloading, SAP TM sends a instruction to SAP EWM. This triggers the creation of a TU in SAP EWM. In SAP EWM, the TUs are automatically assigned to the (locked) EWM inbound deliveries. With this assignment, the EWM inbound deliveries are unlocked and updated with the related carrier information from SAP TM. Unlocked EWM inbound deliveries, assigned to a TU, are now the basis for warehouse execution in SAP EWM. Posting GR in SAP EWM immediately adjusts the inventory in SAP S/4HANA, updating the inbound deliveries and the freight order in SAP TM for a later freight cost settlement.

These were the summarized steps TM-EWM standard integration for Inbound Processing in S/4HANA 1809.

 

Further Integration Topics (Outbound processing etc.) will follow in the future.

This blog was created based on several SAP books.

Will appreciate your Feedback / comments.

 

Regards,

Christian Zang

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