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Author's profile photo shailesh mishra

S/4HANA 2022 What’s New – Target PSA in EWM with Automatic WT creation.


The target production supply area (PSA) defines the production supply area of the next production step.It is used if a semifinished product remains in production and is needed for a subsequent production step.



Dependencies-->If the storage location, where the semifinished product is placed upon order confirmation or goods receipt, is not managed by the warehouse, the field is only for information character.

If the storage location, where the semifinished product is placed upon order confirmation or goods receipt, is managed by (EWM), the target PSA is used to determine the destination bin during warehouse task creation upon synchronous goods receipts.

The following prerequisites must be fulfilled:

  • For discrete manufacturing, the production scheduling profile used for the order is set up for Post Synchronously to Bin.
  • For repetitive manufacturing, you have selected Post Synchronously to Bin in the repetitive manufacturing profile
  • For the semifinished product a control cycle is defined for the target PSA and the destination bin has been assigned to the control cycle
  • The automatic warehouse task creation upon receipt is active either for the storage type of the goods receipt bin or for the warehouse process type.

–>This blog replication steps will follow discrete manufacturing integration with SAP EWM and how Target PSA can be leveraged for sub-assemblies to be consumed directly from next PSA instead of movement to final bin.


The Target PSA field is used to determine the destination bin via the control cycle of a semifinished product for the warehouse task towards the next PSA in the manufacturing process. With this option you can optimize your production process as the semifinished products do no longer require a putaway and additional staging step to the next production line. The destination bin for warehouse tasks upon goods movement is used to define where the products are to be put away once they are received in the warehouse.

Replication Steps:

  • Production Version:Assign PSA in Target PSA field in Production Version of Product( C223)


  • Control Cycle:Assign Target PSA bin in Control cycle( Product dependent PSA) in LPK1. Ensure to have Material Staging Indicator (MSI) as 0


  • Production Scheduling Profile: Ensure to activate synchronous GR to Bin.

  • WPT determination: Assign the correct WPT without delivery type/Item types based on Product characteristics whether is HU or Non HU.. In this example, Semifinished will be received in Packed form.


  • Create a Production Order-


  • MIGO- Carry out Production Order HU Level GR, 2 HUs have been received.


  • Check Production Order– Documented Goods Movement CO03. 2 Pal have been updated in Delivered qty field


  • Warehouse Management Tab- Check the WM tab of Material document.


  • Automatic WT created- HU WT has been created for 2 HUS at Target PSA



Warehouse Monitor- Check the stock of Semifinished HUs, its been posted at Target PSA bin


Thanks for reading. All the information and contents is purely based on my research and is replicated on S/4 HANA Embedded EWM Sandbox system.


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      Author's profile photo RAJESH SHARMA

      Nice explanation really helpful

      Author's profile photo Raghu S Nayak
      Raghu S Nayak

      Explained in details, great Job!!

      Author's profile photo Badreddine BEN MOHAMED
      Badreddine BEN MOHAMED

      Hello @shailesh mishra

      Thank you for the detailed explanation, is there any possibility to use the same process but with S/4 HANA 2021 with SAP note or may be a workaround.

      Thank you for your help,


      Author's profile photo karina san martin
      karina san martin


      did you find something? I'm facing the same problem



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

      Thanks for sharing Shailesh!

      Have you done something similar with a decentralized EWM? My assumption is that the synchronous goods movement will not be possible in a decentralized setup. Any best-practice here for how to determine the target PSA for sub-assemblies in a decentralized environment with advanced production integration via PMRs?

      Thanks!  Hendrik


      Author's profile photo Damian Jarek
      Damian Jarek

      Thank you for good explanation.