Synchronous goods receipt and backflush in production order in embedded Extended warehouse management (EWM) in S/4HANA 2020 Release

SAP S/4HANA 2020 release has provided a significant simplification with ‘Synchronous Goods receipt and Backflush for Production order  in embedded Extended warehouse management (EWM)’. Synchronous goods movement is the posting of goods at Inventory management (IM) in S/4HANA and EWM at the same time. Backflush means automatic posting of goods issue for components (raw materials) of production order at the time of Production confirmation. Capability of synchronous goods receipt and backflush is one of the most important innovations for the benefit of the customers using ‘Advanced production integration’ for production order for discrete production processes.

My present blog is to describe this new feature of ‘Synchronous Goods receipt and Backflush for Production order ‘as introduced in embedded EWM of S/4HANA 2020 release, highlight the difference in previous & new processes, pre-requisite configuration and business benefits.

A typical process flow (till S/4HANA 1909 release) for Confirmation of production order with finished good and components managed in EWM managed storage location is depicted in below image. Inbound and outbound deliveries are created in ERP or S/4HANA core for goods receipt of finished good and goods issue for components respectively on confirmation of production order. Corresponding inbound delivery and outbound delivery order are also created in EWM after distribution from ERP (or S/4HANA). Stock update (Increase for goods receipt and decrease for goods issue) happens in Inventory management after goods receipt and goods issue in EWM.

The process for production confirmation with S/4HANA 2020 release is in below image showing significant simplifications. Now, on Production confirmation (with transaction CO15 or CO11N), following goods movements happen at the same time i.e synchronously.

• Goods receipt & goods issue (backflush) happen in ERP (or S/4HANA)– as in image (A)
• Goods receipt posting & goods issue posting in EWM – as in image (B)

Screenshots of SAP transactions for (A) and (B) are shown in below image. PP05 is the finished good and RM01 is the raw material or the component in this scenario.

Display of material document in transaction MIGO of S/4HANA has also been enhanced with a new tab ‘Warehouse management’ as shown below. Warehouse task of EWM is also displayed with the option to navigate to EWM warehouse monitor directly.

This new functionality will provide the following benefits.

• Elimination of inbound and outbound deliveries
• No requirement to monitor asynchronous queues
• Increased user productivity with elimination of manual postings and manual errors
• Goods receipt and goods issue in one single material document

One of the most important prerequisite configurations is in below image. Production scheduling profile in ‘Work scheduling’ view of material master of Finished good shall have the setting for ‘Goods receipt and goods issue’ in ‘Post synchronously in bin’.

Note that this functionality is possible

• Also for Process order
• only with embedded EWM i.e not with Decentralized EWM.

Functionality of Synchronous goods receipt with backflush for repetitive manufacturing (REM) was provided in embedded EWM in S/4HANA 1909 release as described in my blog in link https://blogs.sap.com/2020/03/13/synchronous-backflush-posting-with-repetitive-manufacturing-in-embedded-ewm-in-s-4hana-1909-release/ .

This is my first blog on innovations on S/4HANA 2020 release. I will write series of blogs with special focus on Advanced ATP, EWM, TM and YL . So, please stay tuned and inform your feedback, comments, views.