SCM601 Processes in Logistics Execution

SCM601Processes in Logistics Execution

mySAP Supply Chain Management

DateTraining CenterInstructors

Education Website

Instructor HandbookCourse Version: 2003 Q3Course Duration: 3 Day(s)Material Number: 50059416Owner: Christiane Dr. Schnellenbach (D032740)

An SAP Compass course - use it to learn, reference it for work

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Copyright © 2003 SAP AG. All rights reserved.

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About this HandbookThis handbook is intended to complement the instructor-led presentation ofthis course, and serve as a source of reference. It is not suitable for self-study.

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About this Handbook SCM601

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ContentsCourse Overview...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii

Course Goals.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viiiCourse Objectives .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix

Unit 1: Overview of mySAP Supply Chain Management ..... . . . . . . . . . . . . . . . . . . . . . . . . .1Positioning in the mySAP Business Suite .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3Logistics Execution ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Unit 2: Structure Elements ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Organizational Units.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Storage Bins and Quants .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Material Master and Customer Master.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Unit 3: Goods Receipt Processes ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85Goods Receipt Posting for Purchase Orders ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Putaway with Transfer Orders .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105Inbound Deliveries for Purchase Orders... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128Putaway and Goods Receipt Posting ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143

Unit 4: Goods Issue Processes ... .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169Goods Issue Posting for Cost Centers .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171Stock Removal with Transfer Orders .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183Outbound Deliveries for Sales Orders .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196Stock Removal and Goods Issue Posting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .216

Unit 5: Transportation ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .247Transportation Planning in SAP R/3... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249Transportation Planning with SAP APO ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267

Unit 6: Monitoring Logistics Processes.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .279Warehouse Activity Monitor and Other Evaluations.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .281Supply Chain Event Management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300

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Contents SCM601

Unit 7: Additional Functions ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .313Packing.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .315Handling Unit Management ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .334Mobile Data Entry.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .347

Index ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .365

vi © 2003 SAP AG. All rights reserved. 2003/Q3

Course OverviewThis course gives you an overview of the range of functions within LogisticsExecution, the SAP R/3 application component for mapping and controllingthe execution of logistics processes. The main focus is placed on the variousmeans of processing goods receipts and goods issues. The organizationalprerequisites are also discussed in detail.

There is a CATT for this course (ZT_LO140_02), which must run before thecourse begins. This CATT creates material stocks and documents.

The times given in the �Course Duration Details� are rough guidelines only.Experience has shown that the time required for the content of this coursedepends entirely on the participants� interest and previous knowledge. Thismeans that for some lessons you will require a lot more time than is planned,for others you will need less time.

Ideally, before the first demonstration using group-specific data (lesson�Organizational Units�), you should explain to the participants that theycan work out their warehouse number and storage location as follows: �140+ ##� or �0140 + ##�. The characters �##� refer to the group numbers thatare attached to the monitors in the training rooms. Participants in group 01must therefore work with warehouse number 141 and storage location 0141,and so on.

Create user master records for the participants, and for yourself if required:

� Use transaction ZUSR (User Maintenance for SAP Courses) to copy thereference user SCM601-99.

� Enter the following data in the relevant fields:

Copy from SCM601-99

Name of Course SCM601

No. of exercise groups (as required)Initial password init (or another password)

Choose Execute .

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Course Overview SCM601

� On the following screen, choose Create and answer no to the questionabout the uniqueness of the group numbers. Choose Create again.

Target AudienceThis course is intended for the following audiences:

� Project team managers� Project team members

Course PrerequisitesRequired Knowledge� Technical: SAP01 - mySAP Business Suite Overview, or comparable

knowledge� Topical: Basic knowledge of logistics processes

Course Duration DetailsUnit 1:Overview of mySAP Supply Chain ManagementPositioning in the mySAP Business Suite 30 minutesLogistics Execution 30 minutes

Unit 2: Structure ElementsOrganizational Units 40 minutesStorage Bins and Quants 45 minutesMaterial Master and Customer Master 25 minutes

Unit 3: Goods Receipt ProcessesGoods Receipt Posting for Purchase Orders 30 minutesPutaway with Transfer Orders 35 minutesInbound Deliveries for Purchase Orders 30 minutesPutaway and Goods Receipt Posting 30 minutes

Unit 4: Goods Issue ProcessesGoods Issue Posting for Cost Centers 25 minutesStock Removal with Transfer Orders 30 minutesOutbound Deliveries for Sales Orders 45 minutesStock Removal and Goods Issue Posting 30 minutes

Unit 5: TransportationTransportation Planning in SAP R/3 45 minutes

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SCM601 Course Overview

Transportation Planning with SAP APO 50 minutes

Unit 6: Monitoring Logistics ProcessesWarehouse Activity Monitor and Other Evaluations 35 minutesSupply Chain Event Management 25 minutes

Unit 7: Additional FunctionsPacking 25 minutesHandling Unit Management 25 minutesMobile Data Entry 40 minutes

Course GoalsThis course will prepare you to:

� Position Logistics Execution in mySAP Supply Chain Management (mySAPSCM)

� Understand how to control the basic processes of logistics execution:goods receipts and goods issues

Course ObjectivesAfter completing this course, you will be able to:

� Explain the organizational structures used in Logistics Execution� Create and maintain all relevant master data� Create the most important documents� Map goods receipt and goods issue processes in SAP R/3� Monitor these processes� Explain the basic functions of Transportation Planning/Vehicle

Scheduling (TP/VS) in the SAP Advanced Planner and Optimizer (SAPAPO)

SAP Software Component InformationThe information in this course pertains to the following SAP SoftwareComponents and releases:

The main focus of this course should be on showing the processes. Youshould make clear to the participants which options the SAP R/3 systemoffers for mapping goods receipt and goods issue processes, and in whichbusiness framework these forms of mapping can be used. We are dealing with

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Course Overview SCM601

�wide-ranging relationships� in this part of the system. For this reason, youshould allow enough time for discussing the organizational structures. Mostparticipants will have previous knowledge, either from procurement or fromsales and distribution, so that you can build upon their existing understandingof the processes.

For formal reasons only, two lessons contain a �moderated discussion� asthe participant activity, since exercises are either not possible in the system,or would not be useful. You should carefully consider whether you want toactively encourage discussions, since past experience has shown that livelydebate occurs spontaneously throughout the course anyway and is oftenhard to contain.

Some lessons also contain an additional exercise for (more) advancedparticipants, who usually complete the main exercises in less than the plannedtime.

x © 2003 SAP AG. All rights reserved. 2003/Q3

Unit 11 Overview of mySAP Supply Chain

Management

This unit should help participants orient themselves in the more complicatedSAP system and product landscape, and to position Logistics Executioncorrectly within this landscape.

Unit OverviewThis unit will explain the relationships between mySAP Business Suite, mySAPSupply Chain Management (mySAP SCM), and Logistics Execution. First, youwill learn about the role that mySAP SCM plays in mySAP Business Suite.Then we will position Logistics Execution, the actual topic of this course,in mySAP SCM.

Unit ObjectivesAfter completing this unit, you will be able to:

� Describe mySAP Business Suite� Position the solution mySAP SCM in the mySAP Business Suite concept� Name the component parts of the mySAP SCM solution� Position Logistics Execution within the mySAP SCM solution� Name the components of Logistics Execution� Describe the function of Logistics Execution within SAP R/3

Unit ContentsLesson: Positioning in the mySAP Business Suite .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Exercise 1: Introduction to the mySAP Business Suite.. . . . . . . . . . . . . . . . . . . . 11

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Unit 1: Overview of mySAP Supply Chain Management SCM601

Lesson: Logistics Execution ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Demonstration: Logistics Execution in the User Menu ... . . . . . . . . . . . . . . . . . . 19Exercise 2: Logistics Execution... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

2 © 2003 SAP AG. All rights reserved. 2003/Q3

SCM601 Lesson: Positioning in the mySAP Business Suite

Lesson:2

Positioning in the mySAP Business SuiteLesson Duration: 30 minutes

Lesson Overview

Caution: The �brand structure� of SAP was recently reorganized.mySAP.com is no longer the central product, instead the focus is on themySAP Business Suite. In creating these course materials, we have triedto characterize the new product as far as was possible at the time.

Logistics Execution is part of the solution mySAP Supply Chain Management(mySAP SCM). This in turn is part of the total solution package mySAPBusiness Suite. This lesson should demonstrate the relationship between thewhole (mySAP Business Suite) and its parts (the solutions). It also aims toclarify the position of Logistics Execution within the solution mySAP SCM.

Lesson ObjectivesAfter completing this lesson, you will be able to:

� Describe mySAP Business Suite� Position the solution mySAP SCM in the mySAP Business Suite concept� Name the component parts of the mySAP SCM solution

Past experience has shown that participants in this course often have verydifferent, and often incorrect, ideas about the positioning of the LogisticsExecution component in the SAP product landscape. Patchy and partiallycontradictory information in the Internet and/or intranet, and in variouspublications, makes it more difficult to have an overview of the productlandscape, particularly since it is constantly changing. Usually only a smallnumber of participants will have taken the basics course SAP01, which islisted as a prerequisite for this course. This lesson therefore gives you theopportunity to fill in the gaps.



Business ExampleIDES AG wants to use mySAP SCM to optimize its logistics processes. Inparticular, the company wants to examine how this solution might be able tosupport logistics execution functions.

mySAP Business Suite: Definition and Basic StructureThe product name mySAP Business Suite describes a group of solutionscovering a broad spectrum of business requirements. Elements from thisgroup can be combined as required, with each other or with external products,in order to map complex business scenarios. SAP�s mySAP Business Suite is asolution package that can be used in all industries. Its technical architecture isbased on open standards, so that different types of SAP and external systemscan be connected to each other. The solution package mySAP Business Suiteconsists of three basic elements:

Figure 1: Components of mySAP Business Suite

In the lesson�s four diagrams, the detail that is the focus of the subsequentgraphic is highlighted in a different color.

Caution: In the past, the combination and naming of the individualsolutions that make up the mySAP Business Suite have been changedseveral times within a relatively short period. It is therefore advisable



to consult the current Internet and intranet Web sites, in order topresent course participants with the most up-to-date status of the�SAP brand architecture�.

mySAP Business Suite includes cross-industry solutions, industry-specificsolutions, and non-industry-specific solutions designed specifically for smalland midsize businesses. Cross-industry solutions offer functions for specificbusiness activities. They support process control in a framework that extendsbeyond your own company (and therefore also beyond your own systemlandscape). The solution examined in detail in this lesson, mySAP SCM, isone of the cross-industry solutions.

Note: Further examples of cross-industry solutions are mySAPCustomer Relationship Management (mySAP CRM), mySAP ProductLifecycle Management (mySAP PLM), and mySAP Human Resources(mySAP HR).

Since many industries have specific requirements for the technical way inwhich systems map and control processes, SAP also offers industry solutions.These deal with systems that contain additional - industry-specific - functions,and that do not contain unnecessary functions.

Note: The industry solutions are divided into solutions for the processindustry (such as mySAP Automotive and mySAP Chemicals) andsolutions for service providers (such as mySAP Healthcare and mySAPRetail). See the SAP Help Portal (URL: help.sap.com) for an overviewof all industry solutions.

SAP offers solutions for medium-sized businesses under the product nameSAP Smart Business Solutions. The standard software SAP Business One wasdesigned for smaller to midsize companies. mySAP All-In-One was developedfor medium-sized businesses with more complex requirements. Thesesolutions are not only tailored to the specific requirements of medium-sizedbusinesses in terms of functions, but are also characterized by their ability tobe easily adapted to individual requirements. This markedly reduces thecosts of implementing the solution.

The mySAP SCM SolutionThe solution mySAP SCM is part of the range of cross-industry solutionsin the mySAP Business Suite.



Figure 2: The mySAP SCM Solution As Part of mySAP Business Suite

The six solutions in the middle of the overview are used for planning,controlling, and optimizing specific business activities in a global context.They each group together a specific selection of company employees andpartners.

Note: In this way, for example, the solution mySAP CRM is used formaintaining and enhancing customer relationships. Field sales oroffice-based sales employees, service providers (such as call centers),and customers are integrated into a type of network.

The remaining three solutions are not process-specific: the solution mySAPEnterprise Portal (mySAP EP) gives employees role-based access to a moreor less complex system landscape, and to the Internet. Regardless of whichprocess-related solutions you use, systems can be accessed using portals. Yourfield sales employees can use mySAP Mobile Business with any mobile devices,in order to access information and influence processes. The solution mySAPBusiness Intelligence (mySAP BI) along with the SAP Business Information



Warehouse (SAP BW) and SAP Strategic Enterprise Management (SAP SEM),offers you archiving and analysis tools that can be used by all areas of yourcompany.

Note: SAP NetWeaver forms the technical �basis�. This is both anapplication platform and integration platform. It enables you tonetwork complex, heterogeneous system landscapes across technologyboundaries.

The solution mySAP SCM includes tools for planning, execution, andmonitoring of complex procurement and distribution processes. You cancompare planned and actual values in order to optimize processes. Youcan also evaluate the reliability of service providers. In connection withthe solution mySAP Enterprise Portal (mySAP EP), companies involved inparticular processes can work together around the globe using the Internet.

Figure 3: The mySAP SCM Solution

Planning, execution, and monitoring of individual process steps take placein different systems, which are connected to each other. The SAP AdvancedPlanner and Optimizer (SAP APO) supports all planning activities that occurwithin supply chain management:



� Requirements planning� Demand planning� Production planning� Transportation planning

These planning activities can interactively include third-parties (suppliers,service providers, customers) (In SAP APO this cooperation at planning levelis called �Collaborative Planning�.)

Execution of the processes is mapped in the SAP R/3 system. This means that,for example, production plans from SAP APO are converted into productionorders, or planned shipments are planned and completed.

Note: The SAP R/3 system makes the master data (such as materialor vendor masters) available to SAP APO. Planning data from SAPAPO is used in SAP R/3 as the basis for creating documents (purchaseorders, production orders, shipments). Documents created in SAPR/3 are then used as the basis for planning in SAP APO (for example,sales orders for demand planning).

Mention that you can use any ERP system instead of a SAP R/3 system. Thesame applies for the SAP Business Information Warehouse mentioned below:you can also use an external data warehouse system.

To coordinate and monitor logistics processes, you can use the SAP EventManager (SAP EM). This system processes messages that refer to the progressof logistics processes, updates the status of these processes, and triggers anynecessary follow-on activities.

To optimize the process flow, you can use the SAP Business InformationWarehouse (SAP BW), which is part of the solution mySAP BW. The data forthe actual process flow from SAP R/3 and SAP EM therefore becomes the basisfor realistic planning in SAP APO.

Logistics Execution as Part of mySAP SCMLogistics Execution is a component of SAP R/3, which you have heard aboutin the previous section as the executing part of the solution mySAP SCM. TheSAP R/3 system itself consists of various subsections. The most importantthree areas in this context - Logistics, Accounting, and Human Resources -have been emphasized in the diagram below:



Figure 4: Logistics Execution as Part of SAP R/3

The components with direct influence on processes - Materials Management,Sales and Distribution, Logistics Execution, and Production, were assigned tothe Logistics area. Here you can also find components that work alongsideprocesses, such as Plant Maintenance and Quality Management. Thereare also cross-process functions such as Batch Management and DocumentManagement.

Note: These tools are integrated into the menu for Logisticsunder Central Functions, which is appropriate with regards to theircross-process nature.

You should briefly demonstrate the structure of the Logistics area in SAP R/3.However, later in the course you will have another opportunity to explain thestructure of the Logistics user menu.

The principal advantage of SAP R/3 is the extensive integration of itscomponents into the system as a whole. The individual business applicationsare not placed next to each other without any connections, but instead accessthe same master data and exchange transaction data throughout the process.



This integration becomes particularly noticeable when you work with thecomponent Logistics Execution. Logistics execution is �kept alive� by thedata flow from other components: ordered goods or goods produced in-houseare delivered and putaway. Sales and Distribution enters a sales order. Thisorder is then delivered by picking goods from the warehouse, packing them,loading them, and finally transporting them to the recipient.



9 Exercise 1: Introduction to the mySAPBusiness SuiteExercise Duration: 15 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Gain an overview of the mySAP Business Suite.

Business ExampleYou want to obtain some information about mySAP Business Suite from publicsources.

System DataSystem: Not applicable.Client: Not applicable.User ID: Not applicable.Password: Not applicable.

CATT: Not applicable.Set up instructions: Not applicable.

TaskGo onto the Internet and obtain an overview of mySAP Business Suite.

1. Call up SAP�s Web site with the URL www.sap.com, select a country site,and choose Solutions to find more detailed information on the solutionsthat interest you.

2. Which additional means of procuring information does SAP makeavailable to its customers and partners?



Solution 1: Introduction to the mySAPBusiness SuiteTaskGo onto the Internet and obtain an overview of mySAP Business Suite.

1. Call up SAP�s Web site with the URL www.sap.com, select a country site,and choose Solutions to find more detailed information on the solutionsthat interest you.

a) To start Internet Explorer, choose Start → Training@sap. Enter theURL www.sap.com in the address line to access SAP�s homepage.

b) Choose Country Sites in the upper right screen area. On the nextscreen, choose the country version you want to use.

c) Choose Solutions to find an overview of mySAP Business Suite, fromwhich you can access links to information about the individualsolutions.

2. Which additional means of procuring information does SAP makeavailable to its customers and partners?

Answer: SAP customers and partners can also use the SAP ServiceMarketplace. You can access this under the URL service.sap.com.Access is possible with a SAPNet user ID (S-user).



Lesson Summary

You should now be able to:� Describe mySAP Business Suite� Position the solution mySAP SCM in the mySAP Business Suite concept� Name the component parts of the mySAP SCM solution



Lesson:12

Logistics ExecutionLesson Duration: 30 minutes

Lesson OverviewWithin the framework of the mySAP Supply Chain Management (mySAP SCM)solution, Logistics Execution offers you a package for all executable logisticsfunctions, in other words Warehouse Management, Shipping Processing,and Transportation Processing. This lesson gives you an overview of thecomponents and uses of Logistics Execution.


� Position Logistics Execution within the mySAP SCM solution� Name the components of Logistics Execution� Describe the function of Logistics Execution within SAP R/3

In this lesson, describe the sources of the components in Logistics Execution,and explain how Logistics Execution is integrated into the logistics process.This course only discusses, demonstrates, and practices external procurementand SD scenarios. For this reason, you should make it clear to participants thatsupplying production with components, and goods receipts from production,can be mapped using the same methods.

Business ExampleIDES AG wants to use mySAP SCM to optimize its logistics processes. Inparticular, the company wants to examine how this solution might be able tosupport logistics execution functions.

Integration Into The mySAP SCM SolutionWithin the mySAP SCM solution, SAP R/3 as a whole, including its logisticsapplication components, is responsible for mapping the execution ofprocurement and distribution processes.


SCM601 Lesson: Logistics Execution

Figure 5: mySAP SCM

Logistics Execution is the SAP R/3 application component for the specificfunctions for executable logistics. It is connected to Production Planning andControl, Materials Management, and Sales and Distribution. However, it ispossible to use Logistics Execution outside the SAP R/3 context, as a separatesystem. This is why some publications refer to a �Logistics Execution System�.The main motive for using Logistics Execution in isolation is for reasons ofsecurity. If the system where commercial processes are controlled fails at anytime, executable logistics is still functional in its own, separate system. Theseparate Logistics Execution System does not necessarily have to be connectedto a central SAP R/3 system.

The main consideration here is the decentralized Warehouse ManagementSystem. Using this system forces you to perform processing using deliveries inall areas. Decentralized Warehouse Management is a part of course SCM631.



Components and SourcesThe application component Logistics Execution was introduced into SAP R/3in SAP R/3 4.5A, in order to group together and further develop existingpartial functions of logistics execution.

Figure 6: Logistics Execution: Components and Sources

Warehouse Management was adopted from Materials Management togetherwith Shipping and Transportation Processing from Sales and Distribution.This means that its functions already existed before the introduction ofLogistics Execution in SAP R/3, but were assigned to other applicationcomponents. These changes had an effect on both the user menu and thestructure of Customizing: various transactions are now only available in thenew area menu for Logistics Execution (introduced in SAP R/3 4.5). A newsubmenu was created in Customizing for system configuration of processesin Logistics Execution.

Note: Customizing for Warehouse Management was completelyremoved from Customizing for Materials Management. Parts of theCustomizing menu for Shipping and Transportation are availableunder both Sales and Distribution and Logistics Execution.



You can find details of this in the release notes for SAP R/3 4.5A. Thisinformation has the title �New Component Logistics Execution and RelatedChanges in the IMG�.

FunctionsLogistics Execution offers you all the functions necessary for mapping theexecution of logistics processes, with no industry-specific bias. The corefunctions of Logistics Execution nearly always focus on complex goodsreceipt and goods issue processes.

Figure 7: Function in SAP R/3

The application component Logistics Execution is the connection betweenprocurement and distribution in SAP R/3, regardless of whether the processesare internal or involve third-parties (vendors, customers, service providers).Materials produced in-house, and goods procured externally, are put awayand removed from storage using Warehouse Management, either to supplyyour own production, or to deliver goods to industry or consumers. Thefundamental organizational structures here can be extremely complex:



Logistics Execution uses its own organizational units and master data, whichare integrated into the system of organizational structures in SAP R/3. You canuse these structure elements to map various business situations.

Note: To fulfill special requirements in certain areas, there arepreconfigured interfaces to external systems. This means that, forexample, you can connect a warehouse control unit for automatic highrack storage, or an external transportation planning system, to SAP R/3.

Basic Forms of Mapping ProcessesLogistics Execution offers you two basic means of mapping processes forgoods receipts and goods issues: You can either make delivery creation oran inventory management posting (each with reference to a precedingdocument) the start of the process. The following overview contrasts thedocument flow and technical posting processes for both basic forms:

Figure 8: Process Overview

If you work with deliveries, the warehouse management activities (creatingand confirming transfer orders) are completed before the inventorymanagement posting. The posting always refers to the delivery.

Note: The transfer order is the document used to perform all materialmovements in the warehouse.



If you use this lesson in the context of the course, at this point you can refer tothe lessons in units 4 and 5. These units discuss in detail the various means ofmapping goods receipt and goods issue processes.

However, the inventory management posting can also be at the beginningof the process. It generates a transfer requirement, which is the basis forplanning and posting the warehouse management activities. The putaway orstock removal using transfer orders completes the process.

Note: The graphics displaying the processes are related to thecorresponding user menu.

In many cases, the reason for the putaway or stock removal defines the meansof mapping the process. For example, in the standard system, for goodsreceipts from production you can only use goods receipt posting for thework order with a subsequent putaway; for sales order processing the stockremoval usually refers to the outbound delivery.

Goods issues for For Other Transactions are, for example, withdrawals for a costcenter, or staging of components for production. In this lesson, you shouldonly give an overview of the processes. Later in the course you will discussthe details of all substeps and their relevant documents.

Demonstration: Logistics Execution in the User Menu

PurposeThis demonstration should give an overview of the area menu structure forthe application component Logistics Execution. If there are some participantswith less previous knowledge, you can also demonstrate how to navigatein the menu.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None



1. Show how to log on to the SAP R/3 system with user SCM601-##. Inthis lesson, and in all subsequent lessons, you can use group number00 (or 20).

Select your assigned training system from the LogonPad, or enter it inthe group selection.

Hint: Participants do not usually have access to the LogonPad.Instead they access the system directly by choosing Start →Training.

On the initial screen enter the relevant client, your user name SCM601-00,the initial password, and the language key. Next, enter a user-specificpassword of your choice. You need to enter the password twice.

2. Open the submenu for Logistics, and then the area menu for LogisticsExecution.

Select Logistics → Logistics Execution.

3. Explain the menu structure: The central processes are stored underInbound Process and Outbound Process. Under Internal WarehouseProcesses you can find all the stock and document overviews, as well astransactions for stock transfers and posting changes. Mobile Data Entryis also part of this menu. There are separate submenus for transportationand master data.

4. Go to the next level for the inbound and outbound process, in order toshow the basic forms of mapping the processes: for goods receipt ForInbound Delivery or For Purchase Order, Order, Other Transactions, and forgoods issue For Outbound Delivery or For Other Transactions.



17 Exercise 2: Logistics ExecutionExercise Duration: 15 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Orient yourself in the area menu for Logistics Execution

Business ExampleIDES AG wants to use mySAP SCM to optimize its logistics processes. Inparticular, the company wants to examine how this solution might be able tosupport executable logistics functions.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal password

CATT: ZT_LO140_02Set up instructions: None

TaskLog on to the SAP R/3 system and get an overview of the area menu structurefor the application component Logistics Execution.

1. Log on to the training system with your user name SCM601-##. Theinstructor will tell you the name of the system and the key for thetraining client.

2. On the initial screen, you can see the entire SAP R/3 standard menu. Goto the area menu for Logistics Execution.

3. Open the subsections for the inbound and outbound processes. In theoutbound process menu, go to the level for outbound deliveries. Whichactivities can you perform from here?



Solution 2: Logistics ExecutionTaskLog on to the SAP R/3 system and get an overview of the area menu structurefor the application component Logistics Execution.

1. Log on to the training system with your user name SCM601-##. Theinstructor will tell you the name of the system and the key for thetraining client.

a) In the lower screen toolbar, choose Start and then Training. Fromthere you can log on directly to the relevant system. Choose Logon.

b) Enter the key for the relevant client, your user name SCM601-##,the initial password, and the key for the required logon language.Confirm these entries with Enter.

c) The first time you log on to the system, you are requested to enter anew password. You need to confirm the new password by enteringit twice. Confirm your entries with Enter.

2. On the initial screen, you can see the entire SAP R/3 standard menu. Goto the area menu for Logistics Execution.

a) Choose Logistics → Logistics Execution.

3. Open the subsections for the inbound and outbound processes. In theoutbound process menu, go to the level for outbound deliveries. Whichactivities can you perform from here?

a) Choose Logistics→ Logistics Execution→ Inbound Process or OutboundProcess→ Goods Issue for Outbound Delivery.

b) Create Outbound Delivery, Picking, Packing, Loading, Shipment,Post Goods Issue, Billing



Lesson Summary

You should now be able to:� Position Logistics Execution within the mySAP SCM solution� Name the components of Logistics Execution� Describe the function of Logistics Execution within SAP R/3


Unit Summary SCM601

Unit SummaryYou should now be able to:� Describe mySAP Business Suite� Position the solution mySAP SCM in the mySAP Business Suite concept� Name the component parts of the mySAP SCM solution� Position Logistics Execution within the mySAP SCM solution� Name the components of Logistics Execution� Describe the function of Logistics Execution within SAP R/3


SCM601 Test Your Knowledge

21Test Your Knowledge

1. mySAP Retail is aChoose the correct answer(s).

A Cross-industry solutionB Industry solutionC ServiceD Solution for midsize businesses

2. mySAP Finanacials is aChoose the correct answer(s).

A Cross-industry solutionB Industry solutionC ServiceD Solution for midsize businesses

3. Which product does not belong to the solution mySAP SCM?Choose the correct answer(s).

A SAP APOB SAP R/3C SAP SEMD SAP BW

4. Logistics Execution is a part ofChoose the correct answer(s).

A SAP R/3B mySAP SCMC SAP APOD mySAP SRM

5. Logistics Execution consists of which components?


Test Your Knowledge SCM601

6. Before SAP R/3 4.5, these were assigned to the following SAP R/3application components:Choose the correct answer(s).

A Materials ManagementB Production Planning and ControlC Sales and DistributionD Logistics - General

7. Which of the documents in the list are specific to Logistics Execution?Choose the correct answer(s).

A Sales orderB Inbound deliveryC Transfer requirementD Material documentE Transfer orderF Outbound delivery



23Answers

1. mySAP Retail is a

Answer: B

mySAP Retail is the industry solution for retail.

2. mySAP Finanacials is a

Answer: A

mySAP Financials is a cross-industry solution.

3. Which product does not belong to the solution mySAP SCM?

Answer: C

SAP SEM is used in the solutions mySAP Business Intelligence (mySAPBI) and mySAP Financials.

4. Logistics Execution is a part of

Answer: A, B

Logistics Execution is a part of SAP R/3, which can be used within theframework of the mySAP SCM solution.

5. Logistics Execution consists of which components?

Answer: The components of Logistics Execution are WarehouseManagement, Shipping, and Transportation Processing.

6. Before SAP R/3 4.5, these were assigned to the following SAP R/3application components:

Answer: A, C

Before SAP R/3 4.5, Warehouse Management was assigned to MaterialsManagement, Shipping, and Transportation Processing for Sales andDistribution.



7. Which of the documents in the list are specific to Logistics Execution?

Answer: B, C, E, F

Deliveries, transfer requirements, and transfer orders are LogisticsExecution documents.


Unit 225 Structure Elements

This unit is the core of this course. The processes discussed in subsequentunits will be incomprehensible if participants do not understand the basicelements, in other words the organizational units and master data. Thisapplies particularly to Warehouse Management. You should therefore discussthese basics in detail.

Unit OverviewTo be able to map processes in the system using Logistics Execution, you mustfirst fulfill some organizational prerequisites. In this unit, you will learn aboutthese prerequisites and their priority in the process flow.


� Name the central organizational units in Logistics Execution and describetheir basic functions

� Explain the organizational subdivision of warehouse numbers� Position the organizational units specific to Logistics Execution within

the overall system of logistics organizational units� Explain the structure of a storage bin master record� Define the term �quant�� Create storage bins� Check warehouse stocks at storage bin level� Create the Warehouse Management views in a material master record� In these views, differentiate between warehouse-number-specific and

storage-bin-specific fields


Unit 2: Structure Elements SCM601

� Maintain the fields in the Sales view of a customer record, which arerelevant for the delivery process

Unit ContentsLesson: Organizational Units.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Demonstration: Defining and Linking Organizational Units in LogisticsExecution .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Exercise 3: Assigning Warehouse Numbers to Plant-Storage LocationCombinations .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Lesson: Storage Bins and Quants.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Demonstration: Displaying Storage Bins in the Bin Status Report. . . . . . . . 45Demonstration: Creating a Storage Bin .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Demonstration: Displaying Storage Bin Stocks for Materials .. . . . . . . . . . . . . 52Exercise 4: Storage Bins and Quants ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Lesson: Material Master and Customer Master .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61Demonstration: Creating Warehouse Management Views (Part 1). . . . . . . 64Demonstration: Creating Warehouse Management Views (Part 2). . . . . . . 66Demonstration: Shipping-Relevant Data in the Customer Master . . . . . . . . 69Exercise 5: Material Master and Customer Master .. . . . . . . . . . . . . . . . . . . . . . . . 71


SCM601 Lesson: Organizational Units

Lesson:27

Organizational UnitsLesson Duration: 40 minutes

Lesson OverviewTo be able to use the subfunctions of Logistics Execution (WarehouseManagement, Delivery Processing, and Transportation Processing), you mustcreate specific organizational units, and create relationships between theseunits and other organizational units.


� Name the central organizational units in Logistics Execution and describetheir basic functions

� Explain the organizational subdivision of warehouse numbers� Position the organizational units specific to Logistics Execution within

the overall system of logistics organizational units

This lesson is of prime importance for understanding the processes coveredthroughout this course. Usually, many participants are already familiar withInventory Management, and ask about the meaning of the storage locationwithin theWarehouseManagement System at the beginning of the lesson. Thismeans that it is important to clarify for participants, that the storage locationloses its role as an organizational unit when mapping spatial relationships.In the Warehouse Management System, this role is filled by the warehousenumber and the storage types. When you use Warehouse Management, thestorage location becomes a virtual factor that is only used for quantity-basedinventory management. Sometimes participants have difficulty grasping theconcept of this structure, since the term �storage location� always gives theimpression of a spatial entity. In practice, the term �storage location� was usedto describe storage areas before Warehouse Management was introduced.

Business ExampleIn order to map goods receipt and goods issue processes in the company,you must first enter the relevant spatial and staffing factors -- storage spaces,shipping department(s), and internal transportation logistics -- in SAP R/3.



Organizational Units in Logistics ExecutionThe subfunctions of the Logistics Execution System each use their ownorganizational units, which form the structural basis for process control. Youdefine these organizational units in Customizing for the enterprise structure.

Figure 9: Organizational Units in Logistics Execution

The warehouse number is the superordinate organizational unit for theWarehouse Management system. It is used to map a warehouse complex.In practice, it often corresponds to a warehouse or warehouse building.Each warehouse number has a substructure whose elements are dealt within the following section. The largest part of process control is fixed in thissubstructure.

The organizational unit shipping point in SAP R/3 is used to map the locationof shipping processing, or the group of people that is responsible for shippingprocessing. If necessary for process control, you can create more than oneshipping point. Both spatial and technical process factors can be influential.For example, you can define a separate shipping point for each shipping type(air cargo, express shipping service, mail). The shipping point is essential forgoods issue processes using outbound deliveries.



In goods receipt processes using inbound deliveries, you can use the shippingpoint as a goods receiving point. To do this, assign the shipping point toa combination of (receiving) plant and storage location in Customizing forShipping. You can assign a shipping point to predefined loading points inCustomizing. A loading point represents the location where the goods areloaded. It can be used in Shipping and Transportation.

The transportation planning point is required if you want to usetransportation processing in SAP R/3. Like the shipping point, thetransportation planning point can also be either a location or a group ofpeople. If required, you can define more than one transportation planningpoint. Here too, the shipping type can be used as a differentiation criteria.

Substructure of Warehouse NumbersEach warehouse number includes a number of subordinate organizationalunits (the number is dependent on your Customizing settings), storage types,and storage sections, all of which are used to map the spatial relationshipsin the warehouse.

Figure 10: Substructure of Warehouse Numbers



The organizational unit storage type is used to map storage spaces that areseparated either spatially and/or organizationally, or that should be handledseparately in SAP R/3. The standard system already contains a number ofpreconfigured storage types, such as high rack storage, fixed bin storage, andbulk storage. You can change these default values as required, or you cancreate new storage types as additions or replacements. A main section of theWarehouse Management (WM) Customizing settings is storage-type-specific.A type of master data record is assigned to each storage type in Customizing.You make the basic settings for controlling putaway and stock removalprocesses separately.

Interim storage areas play a special role, and can be identified in a standardSAP R/3 system by their key (that starts with a 9). These storage types form atype of bridge between WM and Inventory Management. Typical examples ofinterim storage areas are goods receipt zones and goods issue zones.

Figure 11: Interim Storage Areas

Each goods movement that affects both Inventory Management andWarehouse Management is therefore processed using an interim storage area.

In this lesson, only refer to the fundamental difference between interimstorage areas and �Warehouse Management storage types�. If you are usingthis lesson in the context of the course, the units �Goods Receipt Processes�and �Goods Issue Processes� offer you several opportunities to explain thebridging function of interim storage areas using concrete process examples.



You create storage sections within storage types in order to further subdivideyour storage space. There are various criteria you can use to divide the storagespace into storage sections. The material to put away in the storage type oftenplays a decisive role, for example, because fast-moving items should be movedinto front sections that are more readily accessible, or because perishablegoods must be stored in a refrigerated area. Depending on the requirements,you can use indicators to create links between materials and storage sections.The system only takes storage sections into account during putaway.

Caution: Even if you do not need to further divide the storage typespace, you must still create at least one storage section for each storagetype.

Picking areas are part of the same hierarchical level as storage areas. Youcan use picking areas to divide the space in a storage type for stock removalreasons. In contrast to the storage section, the picking area is an optional factor.

Storage bins are master data that you create within a storage section. They arediscussed in a separate lesson.

Positioning Within the Overall System of LogisticsOrganizational UnitsIn Customizing, you must connect the organizational units specific toLogistics Execution to other, often superordinate, organizational units in orderto be able to map logistics processes.



Figure 12: Positioning Within the Overall System

The transportation planning point is usually assigned to a company code.This specific connection between the transportation planning point and theorganizational unit, at which level the system calculates the balance, profit,and loss, is required for calculating and settling freight costs. You can onlyconnect a transportation planning point to one company code.

You can create a transportation planning point without assigning it to acompany code. For shipments created for this type of transportation planningpoint, you cannot calculate freight costs.

Shipping points are assigned to plants. Plants are organizational units thatare used in various logistics applications and subapplications (ProductionPlanning and Control, Plant Maintenance, Inventory Management). Theyare usually used to map production locations or, more generally, companysubsidiaries. A shipping point, if it corresponds to the spatial factors, can beassigned to several plants at the same time. A plant can have more than oneshipping point.

Awarehouse number is always linked to at least one combination of plant andstorage location. This means that a connection is created between WarehouseManagement and Inventory Management, because the storage location is



the organizational unit for quantity-based inventory management. Only byassigning the warehouse number to a plant-storage location combination canyou use the functions of Warehouse Management. This does not mean thatall storage locations created by Inventory Management within a plant areconnected to a warehouse number; specific stocks might not necessarily needstorage bin management, for example, packaging materials or consumptionmaterials stored in fixed bins. You can link several plant-storage locationcombinations to one warehouse number; in this case, the spatial situation isthe most influential criteria. However, you cannot simultaneously assign aplant-storage combination to two or more warehouse numbers.

At this point it is important that you emphasize the issue above; that whenyou introduce a Warehouse Management System, the storage location changesboth its function and its priority/value. For warehouse stocks that areexclusively inventory-managed it is often used to map storage spaces, forwarehouse-managed stocks for which the Warehouse Management Systemgives the spatial distribution, it is used as a bridge to Inventory Management.This concept of moving the spatial aspects from Inventory Management toWarehouse Management is not always immediately clear to all participants.This explanation of the fundamental changes at organizational leveloften provoke specific questions and discussions about how this could beimplemented in their own company or the customer�s company.

Demonstration: Defining and Linking OrganizationalUnits in Logistics Execution

PurposeThis demonstration should give the participants a short overview of theCustomizing settings not covered in detail in the rest of the course. From pastexperience, it is a good idea to show the table that links the plant-storagelocation combinations to warehouse numbers (table key V_T320) in order tomake the course content easier to understand. This demonstration also givesyou the opportunity to describe Customizing in general terms.




Set up instructions: None1. Demonstrate how to access Customizing (transaction code SPRO): Tools

→ Customizing → IMG → Edit Project.

To access the Implementation Guide (IMG), choose SAP Reference IMG.

2. Show how to create organizational units in Customizing:

Go to the Enterprise Structure settings, and from there go to the Definitionof organizational units. Go to Logistics Execution: here you can createwarehouse numbers, shipping points, loading points, and transportationplanning points.

3. Briefly explain the link between organizational units using the examplebelow.

Return to the Enterprise Structure and go to Assignment. Go to LogisticsExecution and choose Assign Warehouse Number to Plant/Storage Location.Use Position to select the table entry for your demonstration data plant1200 and storage location 0140: warehouse number 140 is linked to thisplant-storage location combination.



33 Exercise 3: Assigning Warehouse Numbersto Plant-Storage Location CombinationsExercise Duration: 10 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Describe the connection between Warehouse Management and Inventory

Management in Customizing

Business Example

You should only proceed with this exercise if participants have suitableprevious experience of other SAP R/3 applications. If many participants areless familiar with the system, you should leave this exercise out completely,or schedule it for later in the course.

Creating the link between a warehouse number and a combination of plantand storage location is an important step in Customizing for LogisticsExecution. To improve understanding of the process shown throughout thecourse, it might be helpful to display the relevant Customizing table.


CATT: ZT_140_02Set up instructions: None

TaskIn Customizing, check the assignment of your warehouse number 1xx (key:140 + group number ##) to a plant-storage location combination. Search forthe combination of plant 1200 and your group-specific storage location 01xx(key: 0140 + group number ##).

Continued on next page



1. Call up the assignment table in Customizing.

Hint: You only have display authorization for Customizing. Todisplay the table, confirm the system message with Enter.

2. Could you assign your plant/storage location combination to anotherwarehouse number as well?



Solution 3: Assigning Warehouse Numbersto Plant-Storage Location CombinationsTaskIn Customizing, check the assignment of your warehouse number 1xx (key:140 + group number ##) to a plant-storage location combination. Search forthe combination of plant 1200 and your group-specific storage location 01xx(key: 0140 + group number ##).

1. Call up the assignment table in Customizing.

Hint: You only have display authorization for Customizing. Todisplay the table, confirm the system message with Enter.

a) Choose Tools → Customizing → IMG → Edit Project.

To access the Implementation Guide (IMG), choose SAP ReferenceIMG.

b) In the Implementation Guide, choose Enterprise Structure →Assignment → Logistics Execution → Assign Warehouse Number toPlant/Storage Location.

To perform the IMG Activity, choose Execute .

c) Choose Position to find the combination of plant 1200 and storagelocation 01xx (0140 + group number ##).

2. Could you assign your plant/storage location combination to anotherwarehouse number as well?

Answer: No. Multiple assignment of the same plant/storage locationcombination is not possible.



Lesson Summary

You should now be able to:� Name the central organizational units in Logistics Execution and describe

their basic functions� Explain the organizational subdivision of warehouse numbers� Position the organizational units specific to Logistics Execution within

the overall system of logistics organizational units


SCM601 Lesson: Storage Bins and Quants

Lesson:36

Storage Bins and QuantsLesson Duration: 45 minutes

Lesson OverviewIn the Warehouse Management System, storage bins are master data that arecreated from the user menu or from Customizing. The stock overviews inthe Warehouse Management System give you information about the currentstorage bin stocks for a material, in addition to information about variousmaterial movements to and from a storage bin.


� Explain the structure of a storage bin master record� Define the term �quant�� Create storage bins� Check warehouse stocks at storage bin level

The term quant is often hard for participants to understand. In this lesson, thedefinition and description of the unit�s functions are comparatively general.

Business ExampleIf you want to manage material stocks at storage bin level, you must createstorage bins as master data in SAP R/3. In this context, you must also decidewhether bin stocks should be mixed or non-mixed storage, and whetherexisting bin stocks can be increased.

Constructing a Storage Bin Master RecordStorage bins are always created within storage sections. Storage sectionsdivide up the area of a storage type according to various features, such as theinventory turnover of the stocks, or the warehouse temperature. Within theentire warehouse complex, the warehouse number, the storage type itselfis representative of a storage space that should be separated in SAP R/3 atorganizational level, and usually also at a spatial level from other storagespaces. Examples are high rack storage, fixed bin storage, and bulk storage.



The following section deals with the prerequisites for the storage unittype check (SU type check), which is explained in more detail in courseSCM630. This course only contains a brief introduction to the two categoriesrequired for this check, bin type and storage unit type. The storage bin typeis discussed in this lesson, storage unit types are discussed in the lesson�Material Master and Customer Master�.

You can assign storage bins when you create a storage bin type. This isparticularly useful if the storage bins within a storage section have differentdimensions. Bin types are categories that you define in Customizing forWarehouse Management to define the rough dimensions of storage bins, forexample, �bin height 1m.�

Figure 13: Storage Bin Types

Depending on the settings at storage type level, the system can take storagebin types into account during putaway. This means that you can avoidoccupying storage bins with unsuitable load carriers. You also have the optionof assigning the storage bins to be created to a picking area.

You can enter values for the maximum weight that can be placed on a storagebin, and can also use a neutral key figure as an abstract representation ofthe total capacity of the storage bin. However, the system only takes theseinto account if you have activated the relevant capacity check method inCustomizing at storage type level.



You can block storage bins where necessary. You can add this block -separately for putaway and stock removal - to a single storage bin masterrecord or to a storage bin list. The system cannot access blocked storage binsduring putaway, stock removals, and stock transfers.

Demonstration: Displaying Storage Bins in the BinStatus Report

PurposeParticipants should be introduced to the structure of a storage bin masterrecord.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Display the bin status report - in other words the non-material-specific

overview of bins and stocks within a warehouse number - and brieflyexplain its structure.

Choose Logistics → Logistics Execution → Internal Warehouse Processes →Bins and Stock → Display → Bin Status Report.

Enter your warehouse number 140 and storage type 002 as selectionparameters. Choose Execute .

2. To access the master record for a storage bin, place the cursor on one ofthe storage bin coordinates and left click.

3. Explain a selection of the fields.

Demonstration: Creating a Storage Bin

PurposeShow how to create, block, and unblock a single storage bin from the usermenu.



System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. You demonstrate how to create a fixed storage bin. Call up the transaction

for creating single storage bins (LS01N)).

Choose Logistics → Logistics Execution → Master Data → Warehouse →Storage Bin → Create → Manually.

Enter your warehouse number 140 into theWhse no./type field. Use theinput help to select storage type 005 (Fixed bin storage). In the StorageBin field enter any fixed bin description, for example, BOX-00. Confirmwith Enter. Other fields now become available.

2. Use the input help for the Storage Section field to assign the only storagesection 001 (Total section). No picking areas were created in the fixed binstorage area. It does not make sense to use storage bin types in fixed binstorage, since putaway is controlled by directly assigning the storage binto the material in the material master.

3. Set a putaway block, and confirm your entry. A symbol appears ,which means Blocked for putaway. (You do not necessarily have to enter ablocking reason in the standard system).

4. Save your entries and exit the transaction by choosing .

5. Unblock the new fixed bin either by calling up the master record inchange mode, or from the relevant list:

Choose Logistics Execution → Master Data → Warehouse → Storage Bin →Change → Single Bin.

Remove the flag for the putaway block, confirm your entry with Enterand save the changes.

Alternatively:

Choose Logistics Execution → Internal Warehouse Processes → Bins andStock → Block → Storage Bin Selection.



Enter your warehouse number 140 and storage type 005. Choose. Next to storage bin BOX-00, the column PB (Putaway Block) now

contains X. Select the storage bin and choose Unblock . Save thechange and exit the transaction.

The QuantFilling a storage bin in SAP R/3 is called a quant. A quant is a materialquantity in a storage bin. In the SAP R/3Warehouse Management system,materials can only be seen and moved in the form of quants. The definitenumber is just as irrelevant as the unit of measure. However, there are defaultcriteria, which the Warehouse Management system uses in putaways andstock removals to decide which material quantity forms a quant in a storagebin. The criteria are as follows:

� Material number� Stock type� Special stock assignment� Plant and storage location assignment of the material

and if necessary

� Batch number



Figure 14: Quant

The criteria for stock type, special stock assignment, and plant and storagelocation assignment are inventory management information for the material.Inventory Management usually decides at posting which stock type thematerial quantity belongs to. This means that at goods receipt, you can postpart of the material quantity into the unrestricted-use stock, and anotherpart into quality inspection stock or blocked stock. The same applies for thespecial stock assignment. Partial quantities of a material can be flagged,for example, as project stock, and others as customer consignment stock. Ifa material is inventory-managed in various storage locations, for examplein order to map changes in ownership, then the plant/storage locationassignment of a specific material quantity is also important. Regardless of thedecision Inventory Management has made via its postings, in the WarehouseManagement system these characteristics must match for a material quantityif this quantity should form one quant in a storage bin. This means that if youwant to put away the same material that was posted at goods receipt partiallyinto the unrestricted-use stock and partially into quality inspection stock, atleast two quants are always generated in Warehouse Management.

If you use Batch Management as a cross-component function, the batchnumber of a material quantity is also a quant characteristic. If you haveactivated the batch management requirement at material master level, youmust enter the relevant batch for each goods movement. In the Warehouse



Management system, you should also be able to tell at any point whichmaterial quantity belongs to which batch. Quants are therefore always fromthe same batch.

If you have activated storage unit management in the storage type, the storageunit number also plays a role. Storage unit management is an additionalfunction in the Warehouse Management System, which allows you to viewmaterials and load carriers as units, and to move them inside the warehouseusing a (storage unit) number. Here too, materials are only put away andremoved from storage in the form of quants. However, the quants are a part ofstorage units. A quant can only be a part of one storage unit at a time.

Some participants might already have heard about this additional function,and might ask questions about it at this point, or at a later point. If someoneasks, you should briefly discuss the basic principle behind storage unitmanagement. This topic is discussed in detail in course SCM631.

Additions to Existing Stock and Mixed Storage

In connection with the topics �Addition to Existing Stock� and �MixedStorage�, it makes sense to introduce participants to the fact that putaway andstock removal are controlled separately in Customizing for each storage type.You make decisions about additions to existing stock and mixed storage inthe relevant area for putaway control. You can allow additions to existingstocks without reference to a material. Special options are available for thecombination of storage unit management and mixed storage.

A storage bin that already contains a quant of a material can take on furthermaterial quantities of the same material if the remaining quant criteria matchup (see above). The storage type containing the storage bin must permitadditions to existing stock.



Figure 15: Addition to Existing Stock

A storage bin in a storage type that permits additions to existing stock canonly ever contain one quant. However, the size of this quant can be increasedand decreased by putaway and stock removal activities.

Caution: The goods receipt date of a material quantity is managed atquant level. If additions are made to existing stock, the goods receiptdate of the new quant is lost. The quant always shows the oldestgoods receipt date. If you want to perform stock removals accordingto the �first-in-first-out� (FIFO) principle, it is advisable to prohibitadditions to existing stock.

If you want to store more than one quant in a storage bin, you must permitmixed storage in the storage type.



Figure 16: Mixed Storage

In mixed storage, you can store several materials and also, for example,several batches of the same material, in one storage bin. Various methodsof capacity checking are available depending on storage type and putawaycontrol. These can ensure that storage bins are not overloaded when additionsare made to existing stock or for mixed storage.

During putaway and stock removal activities, quants are generated and somedisappear. As long as a quant exists in the warehouse number (in other words,is contained in a storage bin) the quant has its own temporary data record. Youcan display this data record from the Warehouse Management stock overview.This data record contains essential inventory management information, suchas the goods receipt date, shelf life expiration date, and batch number (whererequired), in addition to all storage-relevant information.



Figure 17: Quant Split

Example: After a goods receipt posting, a quant of 120 pieces of a materialis in a storage bin in the goods receipt zone. During putaway into the highrack storage area, the system splits this quant equally between three storagebins, according to various entries in the material master and Customizing.This means three new quants are generated that each consist of 40 pieces ofthe material. The original quant is deleted, as is its corresponding data record.In the goods issue process, quants �disappear� during stock removal.

Demonstration: Displaying Storage Bin Stocks forMaterials

Purpose

Participants should be introduced to the stock overview from the WarehouseManagement point of view.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: initSet up instructions: None1. Demonstrate how to use transaction Total Stock per Material (Warehouse

Management) (LS26) using material LES02-00. Display the stock overviewfor your warehouse number 140.



Choose Logistics Execution → Internal Warehouse Processes→ Bins and Stock→ Display → Total Stock per Material (Warehouse Management).

On the initial screen, enter warehouse number 140 and materialLES02-00. Confirm your entries with Enter.

2. Explain the layout of the stocks on the first screen: The material that isinventory-managed in plant 1200, storage location 0140 is completelycontained in the rack storage area (storage type 002).

3. Place the cursor on the plant/storage location stock highlighted in white,and choose Bin Stocks. The total quantity of the material is split acrossten storage bins.

4. Display the master record for one of the ten storage bins, and commenton some of the fields (storage section, picking area, storage bin type).

To access the master record for a storage bin, place the cursor on one ofthe storage bin coordinates and left click.

5. Display the data record of the quant you want to store in the selectedstorage bin. Point out the quant characteristics relevant to inventorymanagement, and the goods receipt date.

In the Stock per Storage Bin area, select the material line and choose Quant.





43 Exercise 4: Storage Bins and QuantsExercise Duration: 15 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a storage bin� Check storage bin stocks in the stock overview for Warehouse

Management

Business ExampleYou want to create a new storage bin in the fixed bin storage area. You alsowant to check the stocks in your rack storage area.



TaskCreate a new fixed bin with any description (for example, BOX-##), and blockthis bin for putaway.

1. Call up the transaction for creating single storage bins and enter therequired data.

2. Block the new storage bin for putaway.

3. Unblock the bin.

4. Display the storage bin stocks for your material, LES02-##, in yourwarehouse number, 1xx (140 + group number ##). Which storage typecontains the material? The total quantity was split across how manystorage bins?




5. Display the master record for one of the storage bins, and from theredisplay the data record for the quant in the storage bin. Which storagesection does the bin belong to? Determine the goods receipt date of thequant.



Solution 4: Storage Bins and QuantsTaskCreate a new fixed bin with any description (for example, BOX-##), and blockthis bin for putaway.

1. Call up the transaction for creating single storage bins and enter therequired data.

a) Choose Logistics→ Logistics Execution→Master Data→Warehouse→Storage Bin → Create → Manually.

Enter your warehouse number 1xx (140 + group number ##) intheWhse no./type field. Use the input help to select storage type005 (Fixed bin storage). In the Storage Bin field, enter any fixed bindescription, for example, BOX-##.

b) Confirm with Enter. Other fields now become available. Use theinput help for the Storage Section field to assign storage section 001.

2. Block the new storage bin for putaway.

a) Set the indicator for the Putaway block and confirm with Enter. Asymbol appears that means Blocked for putaway.

b) Use the input help to add a blocking reason. Save your entries. Toexit the transaction, choose Cancel.




3. Unblock the bin.

a) To check the new storage bin master record, call up the record inchange mode.

Choose Logistics Execution→Master Data→Warehouse→ Storage Bin→ Change → Single Bin.

Hint: You can remove the block here. In the next step, usethe alternative method using a storage bin list.

b) To unblock your new storage bin, use the transaction Change SeveralStorage Bins Simultaneously.

Choose Logistics Execution → Internal Warehouse Processes → Bins andStock → Block → Storage Bin Selection.

Enter your warehouse number, 1xx (140 + group number ##),and 005 in the Storage Type field. To execute the selection, chooseExecute. Next to storage bin BOX-##, the column PB (Putaway Block)now contains X. Select the storage bin and choose . On the nextscreen, select the Putaway Block indicator and confirm with Enter.Save the changes.

4. Display the storage bin stocks for your material, LES02-##, in yourwarehouse number, 1xx (140 + group number ##). Which storage typecontains the material? The total quantity was split across how manystorage bins?

a) Choose Logistics Execution → Internal Warehouse Processes → Bins andStock → Display → Total Stock per Material (Warehouse Management).

Enter the key for your warehouse number and material LES02-##.Confirm with Enter. The material is in the rack storage area (storagetype 002).

b) Place the cursor on the plant/storage location stock highlighted inwhite, and choose Bin Stocks. The total quantity of the material issplit equally across 10 storage bins.




5. Display the master record for one of the storage bins, and from theredisplay the data record for the quant in the storage bin. Which storagesection does the bin belong to? Determine the goods receipt date of thequant.

a) To access the master record for a storage bin, place the cursor on oneof the storage bin coordinates and left click.

The storage bin belongs to storage section 001.

b) Choose the Stock tab page. In the Stock per Storage Bin area, selectthe line containing the material and quantity and choose Quant(in the lower left of the screen).

Hint: Each quant has a number for identifying its datarecord in the database. You can find this number in thestorage data area, under the storage bin coordinates. Thisnumber does not have any effects on controlling putawayor stock removal processes.



Lesson Summary

You should now be able to:� Explain the structure of a storage bin master record� Define the term �quant�� Create storage bins� Check warehouse stocks at storage bin level


SCM601 Lesson: Material Master and Customer Master

Lesson:48

Material Master and Customer MasterLesson Duration: 25 minutes

Lesson OverviewMaterial-specific settings have an immense effect on process control inLogistics Execution. At master data level, you can specify into which storagetype material is put away, and from which storage type it is removed fromstock. You can also enter the standard palletization data for a material in thematerial master, in order to enable automation of putaway activities. Thecustomer master can contain default values for data that controls the shippingprocess.


� Create the Warehouse Management views in a material master record� In these views, differentiate between warehouse-number-specific and

storage-bin-specific fields� Maintain the fields in the Sales view of a customer record, which are

relevant for the delivery process

This lesson mainly discusses the two Warehouse Management views of amaterial master. These views are required for putaway and stock removal of amaterial. The first Warehouse Management view contains fields that are usedfor detailed control of putaway and stock removal activities. In this course,these fields should only be mentioned briefly - if at all - since using the fieldsrequires a good knowledge of Warehouse Management Customizing.

Business ExampleIDES AG wants to manage its material stocks in storage bins. This means thatall existing material master records now require Warehouse Managementdata. To simplify the delivery processes, the customer master records shouldcontain default values for shipping processing.



The Warehouse Management ViewsThe master data for a material is divided into views. In most cases, theviews correspond to specific departments or activity areas in a company, forexample, Sales and Distribution, Purchasing, and Accounting. Each of theseviews contains a collection of fields that are usually either indicators foraccessing Customizing tables, or values for specific applications. These valuesare often default values. Warehouse Management has two specific views in thematerial master. Both views must be created in order to put away the material.

Figure 18: Warehouse Management Views

The first Warehouse Management view only contains fields whose entriesare valid for a specific warehouse number. The second view also containsstorage-type-specific information. When you create, change, and displaythe Warehouse Management views, you must always enter the warehousenumber in which you want to store the material. If the material is used in morethan one warehouse number, you must create the Warehouse Managementviews for each warehouse number.



The storage-type-specific parts of the second WM view contain a field forassigning a fixed bin, and also fields for entering quantities. These are usedfor controlling replenishment. (This topic is covered in course SCM630). TheMaximum Bin Quantity field can also be used for the capacity check in fixedbin storage. Control quantities and rounding quantities are required for aspecific stock removal strategy.

You do not always have to enter values into the storage-type-specific fields inthe second Warehouse Management view. These fields are mainly used formaterials with fixed bins. Therefore, if you store a material in fixed bin storage,you must assign its fixed bin in this view, in the Storage Bin field. This meansthat during putaway, the Warehouse Management system can automaticallyassign the bin to the material, and can also find it for use during stock removal.

Hint: When you create, change, and display the second WM view, youcan only see the storage-type-specific fields if you have previouslydefined a default storage type when selecting the organizational units.

Palletization DataIn the second WM view, you can store palletization data for the material. Thedata is valid for one warehouse number.

Figure 19: Palletization Data



If the material master contains palletization data, the Warehouse Managementsystem adopts this as default values for each putaway operation. If a materialis regularly palletized in a certain way from production or a vendor, the systemcan use the default values in the material master to automatically distributethe overall putaway quantity, and perform storage bin determination.

To enter palletization data in the material master, you must first create suitablestorage unit types in Customizing. Storage unit types are structural aidsfor putaway. A storage unit type is a group of all loading equipment withsimilar physical properties, such as europallets, wire baskets, or tanks. InCustomizing, europallets are defined as storage unit type �Europallet,� wirebaskets as storage unit type �Wire basket,� and so on, for each warehousenumber. In the material master, the storage unit types are used to specify thedistribution of a certain material quantity (loading equipment quantity). Thismeans that in a standard case where 24 pieces of a material are always putaway onto a europallet, this standard distribution can be stored in the materialmaster using the storage unit type �Europallet.�

Hint: The palletization data is only used as default values. If, inindividual cases, the palletization is different from the data storedin the material master, you can manually change the proposed databefore you perform the putaway.

Demonstration: Creating Warehouse Management Views(Part 1)

PurposeIt should become clear that a material can only be put away into a warehousenumber, if the Warehouse Management views have been created for thiswarehouse number. This prevents a goods receipts posting in the storagelocation linked to the warehouse number.

Caution: It is often the case that participants accidentally create theWM views for their material not for their group�s warehouse number,but instead for the demonstration warehouse number 140. They thenreceive the exact error message that will be deliberately shown in thedemonstration below. Occasionally, this demonstration enables theparticipants to solve the problem themselves.



System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Demonstrate the system�s reaction when the goods receipt should be

posted into a WM-managed storage location for a material, where thematerial master record does not contain the WM views. To post a goodsreceipt for a purchase order, call up transaction MIGO.

Choose Logistics Execution → Inbound Process → Goods Receipt for PurchaseOrder, Order, and Other Transactions → Enter Goods Receipt for PurchaseOrder.

2. Find the purchase order that was created for this course using CATT. To

do this, choose Search for PO .

Hint: Movement type 501 (Receipt w/o PO) might be set as thedefault value. In this case, change the movement type to 101(Goods receipt for PO), or in the reference document type field,choose Purchase Order.

Select your purchase order using the material number LES04-00. In thelower screen area, the system displays a line containing the purchaseorder. Double-click on this line to call up the purchase order forprocessing. Close the list by choosing Close Search Results .

Caution: Some less experienced participants often havedifficulties using transaction MIGO. Even if you demonstratein detail how to find the purchase order generated by CATT,and how to copy it into the transaction as described above, someparticipants often have problems with the exercise.

3. In the detail view, show the Where tab page: here you can see theplant and storage location into which the stock should be posted. Thedemonstration uses the warehouse-managed storage location 0140.



4. For the material item, set the indicator Item OK (lower left screen area)and attempt to post the goods receipt (save or choose Post): you receivethe error messageMaterial LES04-00 is not created in warehouse number 140.Cancel the posting.

Demonstration: Creating Warehouse Management Views(Part 2)

PurposeParticipants should realize that the material master is of central importance forstorage bin determination. The options for automating processes are largelydependent on relevant data being maintained correctly.

In contrast to the previous course LO140, this course does not discuss materialtypes and industries. There are no details or examples of the sequence ofsteps when you create, change, or display material master data, because themajority of participants will already be familiar with master data maintenance.However, you should still comment on each of the individual steps duringthe demonstration.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Call up the transaction for creating material master data (MM01).

Hint: In this context, emphasize that adding views to an existingmaterial master is, from the technical point of view, creating (andnot changing, as some participants at first assume).

Choose Logistics Execution → Master Data → Material → Material → Create→ Immediately.

2. Enter the material number LES04-00 and confirm with Enter. Thesystem tells you that the material type and industry will be copied fromthe existing material master. Confirm this message with Enter to accessthe view selection.



3. Select the two Warehouse Management views and confirm the selection.

Caution: Both Warehouse Management views are directlyunderneath the views for General Plant Data/Storage. Participantswith less experience sometimes mistakenly select these views.Therefore, it is advisable to mention that the fields contained inthese views do affect storage of the material in a general sense,but do not affectWarehouse Management. The first of thetwo views, for example, contains fields required for shelf lifeexpiration date management.

4. In the next step you specify the organizational levels to which the data tobe created will refer.

Enter plant 1200 and warehouse number 140. Leave the Storage Typefield empty at first. Confirm your entries with Enter.

5. Briefly discuss the first Warehouse Management view.

Hint: The batch management requirement is activated acrossplants. This means that you can also find this field in otherviews. Storage type indicators are used to control storage typedetermination for specific materials during putaway and/or stockremoval. You define storage type indicators for each warehousenumber, to suit your requirements. They represent the storagetype that should be used to create a link to the material. Theseand other indicators in the General Data area are covered in courseSCM630.

6. Go to the second Warehouse Management view and enter thepalletization data.

Hint: Mention again that in this demonstration, you are onlymaking settings that are valid for the entire warehouse number.You will show how to create the storage-type-specific entries inthe following steps 7 through 9.

Input values:



LE quantity (loading equipment) 24

Un (Unit of measure) PC

SUT (Storage unit type) E1

Save your input.

7. Repeat steps 1 through 4 for material LES02-00. Now add storage type005 on the screen for organizational levels.

8. Go back to the second Warehouse Management view: additional,storage-type-specific fields are now ready for input.

9. Assign storage bin BOX-00 (or if this has not yet been created, on of theother storage bins FIX-01 through FIX-10) in the Storage Bin field.Save your input.

Customer MasterIn contrast to the generally multilayered material master record, a customermaster record usually consists of only three views: the general data view, thecompany code view, and the sales area data view. In the Sales Area Data view,you can store default values for delivery processing.

Figure 20: Customer Master



The general data view contains the customer�s address, and also, for example,the customer�s bank details. The company code view stores, among otherthings, terms of payment and any dunning procedures. The sales area data,in particular the subarea for delivery processing, can contain shippingconditions and delivering plants as default values for sales documents. Youcan also set indicators for order combination (during delivery creation) andcomplete delivery.

The system requires the issuing plant and the shipping condition in order todetermine the shipping point. In Logistics Execution, the shipping point isthe organizational unit required to map delivery processes. It is determinedin the sales document for each document item. During delivery creation, thesystem can use the shipping point determined in this way, or a shipping pointthat was assigned manually. The shipping point is also a source of informationfor scheduling in the shipping process, which the system performs accordingto the settings in the sales document.

Demonstration: Shipping-Relevant Data in the CustomerMaster

Purpose

In order to schedule the shipping process and create an outbound delivery, thesystem must determine a shipping point. In the customer master, you enterthe required data as default values.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Call up the sales area data in the customer master record for customer

T-S11B00 in change mode.

Choose Logistics Execution → Master Data → Partner → Customer →Change → Sales and Distribution.

Input values:

Customer T-S11B00

Sales Organization 1000



Distribution Channel 12

Division 00

Confirm your entries with Enter.

The sales area is a group consisting of a sales organization, a distributionchannel, and a division. After you enter the customer number, you canalso display the sales areas that can be used for this customer by choosingCustomer�s sales areas. Place the cursor on the line containing the desiredsales area, and confirm your selection with Enter.

2. Choose Sales Area Data. Go to the Shipping tab page and enter plant 1200as the delivering plant in the relevant field.

Caution: Point out that the shipping condition is specific to eachgroup. The demonstration shipping condition has the key 50.Sometimes participants change the shipping condition in theircustomer master T-S11B## to 50, and so accidentally prevent thesystem determining their group-specific shipping point X0##during delivery creation.

3. If there is sufficient interest, you can also show the Partner Functionstab page.

Hint: If required, you can also discuss the function of thefour standard roles (sold-to party, ship-to party, bill-to party,and payer). However, we have seen that most participantswill already know about these. There is a predefined partnerfunction, Forwarding Agent, which can be used if a customerregularly receives orders using a specific forwarding agent.The vendor number of the forwarding agent is assigned to thepartner function Forwarding Agent. In this way, it can be usedas a selection criteria during outbound delivery creation. Theforwarding agent can also be proposed in the shipment documentas a service provider, if the copy control outbound delivery -shipment has been set up accordingly.



53 Exercise 5: Material Master and CustomerMasterExercise Duration: 20 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Add the Warehouse Management views to the material master record� Store default values for the outbound process in the customer master

record

Business ExampleIn order to be able to put away the base LES04-## into your warehouse numberat the next goods receipt, you need to add the two Warehouse Managementviews to its material master record. The flat screen monitor LES02-##, whichis already stored in the rack storage area, should, in the future, be stored in afixed bin. Since both these materials are regularly sold from the stocks of plant1200 to PC-World Stuttgart KG (customer number T-S11B##), you enter thisplant as the delivering plant in the customer master record.



Task 1Create both Warehouse Management views for your warehouse number 1xx(140 + group number ##) for material LES04-##.

1. Call up transaction MM01 for creating material master data in order toadd the required views to the master record for your material.

2. Select the two Warehouse Management views and confirm the selectionwith Enter.




3. In the next step, specify the organizational units that the new data shouldrefer to: plant 1200 and your warehouse number 1xx.

4. Create a standard palletization for the base LES04-##. 24 pieces of thematerial should be stored on a europallet of storage unit type E1.

5. Repeat steps 1 through 3 for material LES02-##. Then add storage type005.

6. Assign the flat screen monitor LES02-## to its future fixed bin BOX-##, oruse the input help to choose one of the other bins in storage type 005.

Task 2Enter plant 1200 as the delivering plant in the master record for customerT-S11B##.

1. Call up the sales area data in the customer master record for customerT-S11B## in change mode.

Hint: After you enter the customer number, you can displaythe sales areas that can be used for this customer by choosingCustomer�s sales areas. Place the cursor on the line containing thedesired sales area, and confirm your selection with Enter.

2. Enter plant 1200 as the delivering plant in the master record for customerT-S11B##. Check the shipping condition. The description should matchyour group number ## (Standard).



Solution 5: Material Master and CustomerMasterTask 1Create both Warehouse Management views for your warehouse number 1xx(140 + group number ##) for material LES04-##.

1. Call up transaction MM01 for creating material master data in order toadd the required views to the master record for your material.

a) Choose Logistics Execution → Master Data → Material → Material→ Create → Immediately.

b) Enter material number LES04-## and confirm with Enter.

Hint: In the status line, the system informs you that it hascopied the material type and industry from the existingmaster record for the material. Confirm this message toaccess the View Selection.

2. Select the two Warehouse Management views and confirm the selectionwith Enter.

a) Both Warehouse Management views are directly underneath theviews for General Plant Data/Storage.

b) Confirm your selection with Enter.

3. In the next step, specify the organizational units that the new data shouldrefer to: plant 1200 and your warehouse number 1xx.

a) Enter the following data:

Plant 1200

Warehouse No. 1xx (140 + group number ##)

b) To return to the data screens for the Warehouse Management views,confirm your input with Enter.




4. Create a standard palletization for the base LES04-##. 24 pieces of thematerial should be stored on a europallet of storage unit type E1.

a) Go to the second Warehouse Management view.b) Enter the palletization data as follows:

LE quantity (loading equipment) 24

Un (Unit of measure) PC

SUT (Storage unit type) E1

Save your input.

5. Repeat steps 1 through 3 for material LES02-##. Then add storage type005.

a) Choose Logistics Execution → Master Data → Material → Material→ Create → Immediately.

b) Enter the material number LES02-## and confirm. Choose Enteragain to confirm the system message telling you that the materialtype and industry will be copied from the existing material master.

c) Select the two Warehouse Management views and confirm theselection with Enter.

d) On the Organizational Levels screen, enter the following data:

Plant 1200

Warehouse No. 1xx (140 + group number ##)

Storage Type 005

Confirm your entries with Enter. The system informs you that thematerial already exists and data has been added.

6. Assign the flat screen monitor LES02-## to its future fixed bin BOX-##, oruse the input help to choose one of the other bins in storage type 005.

a) Go to the second Warehouse Management view. Enter BOX-## inthe Storage Bin field, and save your input.

b) Alternatively: Call up the input help for the Storage Bin field andchoose one of the existing bins.




Task 2Enter plant 1200 as the delivering plant in the master record for customerT-S11B##.

1. Call up the sales area data in the customer master record for customerT-S11B## in change mode.

Hint: After you enter the customer number, you can displaythe sales areas that can be used for this customer by choosingCustomer�s sales areas. Place the cursor on the line containing thedesired sales area, and confirm your selection with Enter.

a) Choose Logistics Execution → Master Data → Partner → Customer →Change → Sales and Distribution.

Input values:

Customer T-S11B##



Division 00

b) To return to the General Data view, confirm your input with Enter.Choose Sales Area Data.

2. Enter plant 1200 as the delivering plant in the master record for customerT-S11B##. Check the shipping condition. The description should matchyour group number ## (Standard).

a) Go to the Shipping tab page and enter plant 1200 as the deliveringplant in the relevant field.

b) Save your input.



Lesson Summary

You should now be able to:� Create the Warehouse Management views in a material master record� In these views, differentiate between warehouse-number-specific and




SCM601 Unit Summary

Unit SummaryYou should now be able to:� Name the central organizational units in Logistics Execution and describe

their basic functions� Explain the organizational subdivision of warehouse numbers� Position the organizational units specific to Logistics Execution within

the overall system of logistics organizational units� Explain the structure of a storage bin master record� Define the term �quant�� Create storage bins� Check warehouse stocks at storage bin level� Create the Warehouse Management views in a material master record� In these views, differentiate between warehouse-number-specific and




Unit Summary SCM601




1. Name three organizational units specific to Logistics Execution.

2. At least one storage section must be created for each storage type.Determine whether this statement is true or false.

TrueFalse

3. Which of the following elements does not belong to the WarehouseManagement organizational structure?Choose the correct answer(s).

A The storage sectionB The picking areaC The storage locationD The storage type

4. Warehouse numbers are linked to plant-storage location combinations inCustomizing. Which of the following assignments are possible?Choose the correct answer(s).

A Several different plant-storage location combinations to onewarehouse number

B One plant and several of its storage locations to one warehousenumber

C One plant-storage location combination to two warehousenumbers

D One plant and each of its storage locations to a differentwarehouse number



5. Mixed storage and additions to existing stocks are permitted orprohibited for each warehouse number.Determine whether this statement is true or false.

TrueFalse

6. The batch number is a quant characteristic.Determine whether this statement is true or false.

TrueFalse

7. The shelf life expiration date is a quant characteristic.Determine whether this statement is true or false.

TrueFalse

8. What function does the palletization data have in the second WarehouseManagement view of the material master record?Choose the correct answer(s).

A Material to put away must always be palletized according tothis palletization data.

B The palletization data consists of default values for puttingaway the material.

C Palletization data enables you to automate putaway.D The palletization data consists of default values for removing

the material from storage.

9. Why do you need to maintain storage-type-specific fields in the materialmaster?Choose the correct answer(s).

A To assign a fixed bin to the materialB To store palletization proposalsC To specify the minimum quantity for controlling replenishmentD To set a storage type indicator



10. Which default values can you store in the customer master that relate tothe shipping process?Choose the correct answer(s).

A The shipping pointB The delivering plantC The shipping conditionD The picking location



64Answers

1. Name three organizational units specific to Logistics Execution.

Answer: Transportation planning point, shipping point, warehousenumber

2. At least one storage section must be created for each storage type.

Answer: True

This statement is correct.

3. Which of the following elements does not belong to the WarehouseManagement organizational structure?

Answer: C

The storage location is the organizational unit for quantity-basedinventory management.

4. Warehouse numbers are linked to plant-storage location combinations inCustomizing. Which of the following assignments are possible?

Answer: A, B, D

A plant-storage location combination can only be linked to onewarehouse number.

5. Mixed storage and additions to existing stocks are permitted orprohibited for each warehouse number.

Answer: False

You make a decision about mixed storage and additions to existingstocks at storage type level.

6. The batch number is a quant characteristic.

Answer: True




7. The shelf life expiration date is a quant characteristic.

Answer: False

The shelf life expiration date is not a quant characteristic, but can bedisplayed at quant level.

8. What function does the palletization data have in the second WarehouseManagement view of the material master record?

Answer: B, C

The palletization data in the second WM view in the material masterare default values for putaway. It enables you to almost completelyautomate putaway.

9. Why do you need to maintain storage-type-specific fields in the materialmaster?

Answer: A, C

The storage-type-specific fields must be maintained for all fixed binmaterials. At storage type level, you can also store quantities for regularreplenishment of a fixed bin. In contrast, you assign storage typeindicators and palletization proposals for each warehouse number.

10. Which default values can you store in the customer master that relate tothe shipping process?

Answer: B, C

In the customer master, you can store the delivering plant and theshipping condition as default values for the shipping process.


Unit Summary SCM601


Unit 367 Goods Receipt Processes

Discuss the two basic forms of mapping goods receipt processes, and comparethem with each other in order to clarify the differences.

Unit OverviewLogistics Execution offers you two basic forms of goods receipt process, whichwill be explained in this unit.

� Goods receipt for purchase order with subsequent putaway� Inbound delivery for purchase order, putaway for inbound delivery, and

subsequent goods receipt posting for the inbound delivery


� Explain the technical posting process of a goods receipt for a purchaseorder, with subsequent putaway

� Create a purchase order in Purchasing� Post a goods receipt for this purchase order in Inventory Management� Display the transfer requirement generated by the goods receipt posting,

and interpret its contents� Explain the function of transfer orders� Create a transfer order with reference to a transfer requirement� Confirm a transfer order� Track the putaway process in the stock overview� Describe the flow of the goods receipt process using inbound deliveries


Unit 3: Goods Receipt Processes SCM601

� Explain the function of inbound deliveries� Create an inbound delivery for a purchase order� Call up and interpret the data relevant for putaway in the inbound

delivery document� Create and confirm a transfer order for an inbound delivery� Use the inbound delivery monitor� Post the goods receipt for an inbound delivery� Trace the putaway steps in the stock overview

Unit ContentsLesson: Goods Receipt Posting for Purchase Orders ... . . . . . . . . . . . . . . . . . . . . . . . 87

Demonstration: Creating a Purchase Order and Subsequent GoodsReceipt Posting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89Demonstration: Goods Receipt Posting for Purchase Orders Into aWarehouse-Managed Storage Location .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95Exercise 6: Goods Receipt Posting for Purchase Orders In aWarehouse-Managed Storage Location .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Lesson: Putaway with Transfer Orders.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105Demonstration: Creating a Transfer Order with Reference to a TransferRequirement... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110Demonstration: Handling Differences (Optional) .. . . . . . . . . . . . . . . . . . . . . . . . . .114Exercise 7: Putaway with Transfer Orders .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117Exercise 8: Putaway with Differences (Optional) .. . . . . . . . . . . . . . . . . . . . . . . . . .123

Lesson: Inbound Deliveries for Purchase Orders... . . . . . . . . . . . . . . . . . . . . . . . . . . . .128Demonstration: Creating an Inbound Delivery for a Purchase Order.. . .133Exercise 9: Creating an Inbound Delivery for a Purchase Order... . . . . . .137

Lesson: Putaway and Goods Receipt Posting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143Demonstration: Putaway for Inbound Deliveries .. . . . . . . . . . . . . . . . . . . . . . . . . .146Demonstration: Goods Receipt Posting After Partial Putaway(Optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149Exercise 10: Putaway for Inbound Deliveries Using Transfer Orders .. . .151Exercise 11: Partial Putaway with Subsequent Goods Receipt Posting(Optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157


SCM601 Lesson: Goods Receipt Posting for Purchase Orders

Lesson:69

Goods Receipt Posting for Purchase OrdersLesson Duration: 30 minutes

Lesson OverviewThis lesson is part of the unit �Goods Receipt Processes�, which outlines thetwo basic forms of goods receipt processing in SAP R/3. In the proceduredescribed in this and the subsequent lesson, we post the receipt of the materialin Inventory Management and then perform the putaway.

The fact that quantities are listed as Unrestricted-use at storage location levelwhen they have not been put away at the time of goods receipt posting, oftenleads to complications in practice, for example, because sales employees (haveto) pass on information about deliveries at short notice. This basic problemis immediately obvious to a lot of participants; they often ask pertinentquestions at the beginning of the description of this process flow. Putawayon the basis of inbound deliveries is an alternative that avoids the problemsdiscussed here, but which presents other difficulties. For this reason, thislesson will only briefly discuss storage location control. This solution, whichis covered in course SCM630, enables you to stick to the familiar process flowand yet still give exact stock information to all employees that do not workwith the Warehouse Management stock overviews.


� Explain the technical posting process of a goods receipt for a purchaseorder, with subsequent putaway

� Create a purchase order in Purchasing� Post a goods receipt for this purchase order in Inventory Management� Display the transfer requirement generated by the goods receipt posting,

and interpret its contents

Many participants are already familiar with the Purchasing and InventoryManagement part of this process. However, it is advisable to considerparticipants with less MM experience. For this reason the demonstrationincludes creation of a purchase order with subsequent goods receipt posting.



This lesson focuses on the interface between Inventory Management andWarehouse Management. You should make clear how the system maps thecopying of stocks into the warehouse.

Business ExampleIDES AG procures materials from various vendors. After the goods receipt isposted, delivered goods are placed into the goods receipt zone.

Process Flow: Purchase Order and Goods ReceiptPostingPurchasing from vendors, and from other plants within your own company,is processed in SAP R/3 using relevant documents. Employees can reportrequirements for externally-procured materials to the Purchasing departmentusing purchase requisitions. For one-time transactions or for new contacts,Purchasing can first create a request for quotation and enter a correspondingquotation at a later date. The system supports the buyer in comparingquotations from various vendors. A purchase order can refer to a quotation,but also directly to a requirement coverage request.

Master data plays a particularly important role in this context; goods procuredexternally have a separate Purchasing view in their master data. Vendorsusually have a vendor master record that contains address data, accountingdata, and default values for purchase order processing (such as deliveryconditions). If the same material is procured regularly from a specific vendorwith fixed conditions (prices, purchase quantities, delivery times), you cancreate a purchasing information record for the relevant combination ofmaterial and vendor. The system accesses this master data when purchasingdocuments are created, and enters data in the relevant fields.



Figure 21: Purchasing Documents

If, after the goods have arrived, the goods receipt is posted for the purchaseorder in Inventory Management, the system copies the data from the relevantreference document. The purchase order contains information for each itemabout the receiving plant and the receiving storage location, if already fixed. Ifthe storage location is missing from the purchase order, or if the goods receiptshould be posted in a different storage location than entered in the purchaseorder, you enter or change the relevant item in the detail data. Depending onyour system settings, partial goods receipts are also possible.

During a goods receipt posting, you also decide whether the deliveredmaterial should be immediately posted into the unrestricted-use stock, orfirst into quality inspection or blocked stock. Any increases to the materialstocks are documented in amaterial document. Any value-based changes aredocumented in (at least) one accounting document.

Demonstration: Creating a Purchase Order andSubsequent Goods Receipt Posting

PurposeThis demonstration aims to give participants with less experience of MM arough idea of the technical postings made in external procurement processes.Since the receiving storage location is not warehouse-managed, the process iscompleted when the goods receipt is posted.



System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Call up the stock overview for material LES01-00 in plant 1200.

Hint: Point out that the warehouse stock overview (transactionMMBE) can also be called from the area menu Logistics Execution.Show both menu paths.

ChooseMaterials Management → Inventory Management → Environment→ Stock → Stock Overview.

Enter material LES01-00 and plant 1200. Choose Execute . No stockshould be present.

2. Create a purchase order for 48 pieces of material LES01-00 for vendorC.E.B Berlin (vendor number 1000):

ChooseMaterials Management → Purchasing → Purchase Order → Create→ Vendor/Supplying Plant Known.

In the Vendor field, enter vendor number 1000. In the document headeron the Org. Data tab page enter the following data:

Purchasing Org. 1000

Purch. Group 000

Company Code 1000

In the item overview, enter the following data:

Material LES01-00

PO quantity 48

Plant 1200

Storage location 0001



Confirm your input with Enter. The system reads from purchasing inforecord 5300002876, in order to determine the net price and the currency,amongst other things. Save your entries. The system creates the purchaseorder.

3. Call up your purchase order in order to post the goods receipt.

Hint: Transaction MIGO can also be called from the MaterialsManagement menu and from the Logistics Executionmenu.


Find your purchase order using the simplified search help, by choosing

Find and material number LES01-00. The purchase order isdisplayed in the lower third of the screen. Double-click the PO to call itup for goods receipt posting. Close the document display by choosingClose Search Results .

4. Post the goods receipt for the purchase order.

At item level, go to the Where tab page and point out the entriesfor the plant and storage location. Storage location 0001 is notwarehouse-managed.

Hint: For goods receipt postings in warehouse-managed storagelocations, a tab pageWM appears at item level.

Set the Item OK indicator and save your entries.

5. Check the storage location stocks of material LES01-00.

Goods Receipt Posting and Transfer RequirementsDuring a goods receipt posting, the system checks each PO item tosee whether the plant-storage location combination in the PO or GR iswarehouse-managed, and therefore whether it is assigned to a warehousenumber. If it is, an additional tab page appears at item level,WM (WarehouseManagement).



If the goods receipt is posted into a warehouse-managed storage location,the system determines the assigned warehouse number and generates atransfer requirement in addition to the material and accounting documents.This document is the basis for the subsequent putaway. At the same time,the system posts the new material quantity into the goods receipt zone forexternal receipts, which is an interim storage area in the receiving warehouse.This material quantity is shown as a quant in the interim storage type. (Ifthe goods receipt posting includes different materials and/or batches, or if apartial quantity was posted into special stock or blocked stock, for example,then several quants are generated.)

Note: The interim storage area �goods receipt zone for externalreceipts� is preconfigured in SAP R/3 with the key 902.

Figure 22: Goods Receipt Posting Into Warehouse-Managed Storage Location

This diagram shows the Customizing assignment of plant-storage locationcombinations to warehouse numbers.



In both Inventory Management and Warehouse Management, the flow of thegoods receipt process is controlled using movement types. The WarehouseManagement system has its own set of movement types that are linked to theirInventory Management counterparts in Customizing tables. The documentheader of a transfer requirement shows both movement types.

Note: Amovement type is a set of Customizing parameters that controla goods movement. Each movement type is given a three-characternumerical key. Movement type 101, for example, controls goodsreceipts for various preceding documents in Inventory Management.In many cases, the key for the Warehouse Management movementtype is the same as the �partner movement type� in InventoryManagement. In other cases, different Inventory Managementmovement types are summarized into a single movement type in theWarehouse Management system (for example, stock transfers), orseveral Warehouse Management movement types are assigned to oneInventory Management movement type.

Warehouse Management movement type 101 (goods receipt for purchaseorder), is assigned in Customizing to interim storage area 902 (Goods receiptzone for external receipts). During a goods receipt posting for a purchaseorder, the system is able to use the links described above to map the materialquantities as quants in this storage type. The transfer order, which is usedin the Warehouse Management system to actually perform putaway, refersto the transfer requirement.



Figure 23: Transfer Requirement and Goods Receipt Zone

Interim storage areas also have storage bins. These can be created permanently,but can also be generated by the system for specific transactions. In SAP R/3,these storage bins are called dynamic storage bins because they are alwaysgenerated in connection with a goods receipt or goods issue process, and onlycontinue to exist until the process is complete. The storage bin coordinateis usually the document number of the reference document used for theInventory Management posting, such as the purchase order number or thenumber of the work order.

In this course you should only briefly discuss these connections. TheCustomizing settings for configuring the interface between InventoryManagement and the Warehouse Management System are discussed in detailin course SCM630. However, this basic knowledge is essential in order forparticipants to be able to interpret the stock overviews and documents.



Demonstration: Goods Receipt Posting for PurchaseOrders Into a Warehouse-Managed Storage Location

PurposeParticipants should recognize the differences between this and the processshown in the first demonstration, as well as display transfer requirementsand interpret them.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Check the stocks for material LES04-00 in warehouse number 140:


Enter warehouse number 140 and material number LES04-00 andconfirm with Enter.

The system informs you that No quants were selected. This means thatthere is no stock of this material in the warehouse number.

2. Post the goods receipt to a purchase order, created by CATT, for 120pieces of material LES04-00.

In transaction MIGO, find the purchase order using the simplified searchhelp for the material number. Point out storage location 0140 on theWhere tab page, and the additional tab pageWM. Post the goods receiptas described in the first demonstration for this lesson.



3. Display the stock overview for material LES04-00 in warehouse number140: the goods receipt zone (storage type 902) now shows 120 pieces asAvailable Stock.

Hint: At this point, it is advisable to choose MM Stocksand display the stock overview for Inventory Management(transaction MMBE), in order to show the difference between�available� in the sense of the availability check, and �available�in the sense of working from Warehouse Management. InWarehouse Management, everything that is in a storage bin andnot moving is classed as available stock. �Available� is thereforethe opposite of �being moved in the warehouse�. Stocks ininterim storage areas are also shown as Available Stock for thewarehouse number.

4. Display the dynamic storage bin containing the 120 pieces of materialLES04-00 in the goods receipt zone.

Select the line (highlighted in white) with the plant/storage locationstock, and choose Bin Stocks. The bin coordinate is the purchase ordernumber. To display the (temporary) storage bin master record, place thecursor on the coordinate and press the left mouse button.

5. Display the data record of the quant that was generated by the goodsreceipt posting.

In the Stock per Storage Bin area, select the material line and choose Quant.Briefly explain the display.

6. Choose Additional Data to display the number of the transfer requirementgenerated by the goods receipt posting.

7. Display the transfer requirement.

Choose Logistics Execution → Inbound Process → Goods Receipt for PurchaseOrder, Order, and Other Transactions → Putaway → Create Transfer Order→ For Material.

Input values (are usually proposed by the system):

Warehouse No. 140

Material LES04-00

Plant 1200

Storage Location 0140



Confirm your entries with Enter. Place the cursor on the documentnumber and left-click. Switch to the (document) Header and explainthe data.

Hint: You should emphasize that the movement type shown intheMovement Data area is the Warehouse Management movementtype. The movement type in the Additional Data area is theInventory Management movement type. In this case the key isthe same for both (101).





75 Exercise 6: Goods Receipt Posting forPurchase Orders In a Warehouse-ManagedStorage LocationExercise Duration: 20 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Post a goods receipt for a purchase order and check this process step in

the Warehouse Management system

Business ExampleVendor C.E.B Berlin orders 120 pieces of base LES04-##. The orderedgoods have arrived and are posted into the unrestricted-use stock in awarehouse-managed storage location in the Dresden plant.



TaskIn Inventory Management, post the goods receipt to an existing purchaseorder for 120 pieces of material LES04-##. Check the stocks of the material inyour warehouse number 1xx (140 + group number ##) both before and afteryou post the goods receipt.

1. Check the stocks of material LES04-## in your warehouse number 1xx(140 + group number ##).




2. Post the goods receipt for a purchase order, which was created for youbefore the course, for 120 pieces of material LES04-##. Before you do this,check whether the purchase order contains the correct storage location01xx (0140 + group number ##).

Hint: To find your purchase order quickly using your materialnumber LES04-## choose the simplified search help Search for

PO . You can also use the input help for the document numberfield.

3. Check the stock overview for your material LES04-##. Which storagetype and which storage bin contain the quant?

4. Display the transfer requirement generated by the goods receipt posting.



Solution 6: Goods Receipt Posting forPurchase Orders In a Warehouse-ManagedStorage LocationTaskIn Inventory Management, post the goods receipt to an existing purchaseorder for 120 pieces of material LES04-##. Check the stocks of the material inyour warehouse number 1xx (140 + group number ##) both before and afteryou post the goods receipt.

1. Check the stocks of material LES04-## in your warehouse number 1xx(140 + group number ##).

a) Choose Logistics Execution→ Internal Warehouse Processes → Bins andStock → Display → Total Stock per Material (Warehouse Management).

Enter your warehouse number 1xx (140 + group number ##) andthe material number LES04-##, and confirm with Enter.

b) The system informs you that No quants were selected. This means thatthere is no stock of this material in your warehouse number.




2. Post the goods receipt for a purchase order, which was created for youbefore the course, for 120 pieces of material LES04-##. Before you do this,check whether the purchase order contains the correct storage location01xx (0140 + group number ##).

Hint: To find your purchase order quickly using your materialnumber LES04-## choose the simplified search help Search for

PO . You can also use the input help for the document numberfield.

a) Choose Logistics Execution → Inbound Process → Goods Receipt forPurchase Order, Order, and Other Transactions → Enter Goods Receiptfor Purchase Order.

b) To find your purchase order using your material number LES04-##,

choose the simplified search help Find . Enter the materialnumber in theMaterial Number field and choose Find. Two purchaseorders are displayed in the lower third of the screen. To performthe goods receipt posting, double-click on the first purchase orderto display it. To close the document display, choose Close SearchResults .

c) Choose Detail Data. On theWhere tab page, you should see thefollowing data:

Plant Dresden 1200

StorageLocation

LE Dresden ## 01xx (0140 + groupnumber ##)

d) Set the Item OK indicator (lower edge of the screen) and save yourentries.

Hint: When you close the detail data, the box appears nextto the material description.




3. Check the stock overview for your material LES04-##. Which storagetype and which storage bin contain the quant?


b) In the goods receipt zone (storage type 902) the system shows 120pieces of Available Stock.

c) In the stock overview, select the line with the plant/storage locationstock, and choose Bin Stocks. The bin coordinate is the purchaseorder number. To display the (temporary) storage bin master record,place the cursor on the coordinate and left-click.

4. Display the transfer requirement generated by the goods receipt posting.

a) Choose Logistics Execution → Inbound Process → Goods Receipt forPurchase Order, Order, and Other Transactions → Putaway → CreateTransfer Order → For Material.

b) Input values (usually proposed by the system):

Warehouse Number 1xx(140 + group number ##)

Material LES04-##

Plant 1200

Storage Location 01xx(0140 + group number ##)


c) Place the cursor on the transfer requirement document numberand left-click.

d) To display the document header, choose Header .



Lesson Summary

You should now be able to:� Explain the technical posting process of a goods receipt for a purchase

order, with subsequent putaway� Create a purchase order in Purchasing� Post a goods receipt for this purchase order in Inventory Management� Display the transfer requirement generated by the goods receipt posting,

and interpret its contents


SCM601 Lesson: Putaway with Transfer Orders

Lesson:80

Putaway with Transfer OrdersLesson Duration: 35 minutes

Lesson OverviewThis lesson deals with the function of the transfer order in the goods receiptprocess (inbound process), and also discusses the display for putawayoperations in the Warehouse Management stock overview.


� Explain the function of transfer orders� Create a transfer order with reference to a transfer requirement� Confirm a transfer order� Track the putaway process in the stock overview

This lesson can be seen as a continuation of the putaway process that wasstarted in lesson �Goods Receipt for Purchase Orders�. The differencebetween availability terminology in Inventory Management, Sales, and MRPon the one hand, and Warehouse Management on the other hand, has alreadybeen discussed but will be discussed again in this lesson.

Business ExampleThe delivered goods that were placed into the goods receipt zone should bemoved into the warehouse and put away using the Warehouse Managementsystem.

Putaway Process with Transfer OrdersA goods receipt posting for a purchase order in a storage location withWarehouse Management generates a transfer requirement for planning thesubsequent putaway. At the same time, the received material quantity isposted as quant(s) into the goods receipt zone, which is an interim storagearea in the receiving warehouse number. From there, the material to put awayis posted into the warehouse itself using a transfer order. The transfer order,a type of �instruction� for the warehouse employee, refers to the transfer



requirement and copies various essential information from the requirement.The employee reports the end of the operation to the system by confirmingthe transfer order.

Note: Confirmation of the transfer order might not be necessary,depending on your Customizing settings at storage type level.

Figure 24: Putaway Process with Transfer Orders for Transfer Requirements

If quantity differences arise (breakages, theft) or are only recognized atputaway (underdelivery), these must be noted when the transfer order isconfirmed. The storage location stocks are then corrected.

Transfer Order for PutawayIn SAP R/3, all warehouse movements -- putaways, stock removals, and stocktransfers -- are performed using transfer orders.



Figure 25: Controlling Putaway

In a putaway operation, the system first determines the target storage type. Ifa material should regularly be put away into a specific storage type, you setthe relevant indicator in theWarehouse Management view of the master record.During each putaway, the system checks the master data of the materialsinvolved to see whether this indicator is set, and targets the relevant storagetypes. The stock type and special stock assignment can similarly influencestorage type determination.

If, during configuration of the determined storage type, you set that thestorage sections are checked during each putaway, the system also performsa storage section determination. This means that the system searches for asuitable storage section within the storage type. Here, too, you can set anindicator in the master record of the material to put away that has an effecton the determination.

The storage type indicator and storage section indicator are defined inCustomizing for Warehouse Management, and then assigned to materialmaster records in the first Warehouse Management view.



The last step is always determination of a suitable storage bin. This isdependent on the putaway strategy, which was assigned in Customizing tothe storage type determined in the first step. This means, for example, thatthe system can propose the fixed bin stored in the material master, or the nextempty bin if you are performing random putaway.

Note: You can only assign one putaway strategy for each storage type.You can also check whether the storage unit type for the load carrierto which the material will be put away is permitted in the storagetype determined, and whether the storage unit type is suitable for thestorage bins in this storage type.

You activate the storage unit type check (SU check) in Customizing for thestorage type, in the putaway control area. The second part of the check isdependent on the storage bin types to which the storage bins were assignedwhen they were created.

The data, determined in this sequence, is mainly only default values. If youwant to put a material away into a different storage type, storage section, orstorage bin than those planned according to the Customizing settings, you canchange the default data in the transfer order manually.

Stock Split in Transfer OrdersBefore the Warehouse Management system determines storage types, storagesections, and storage bins for the material quantities to put away, it first checksin the second WM view of the relevant master record to see whether thereis any palletization data for the warehouse number. If the material mastercontains entries for the distribution of loading equipment quantities to storageunit types, the system displays the data on the initial screen of the transferorder as a proposal for palletization of the total quantity.



Figure 26: Palletization of the Material to Put Away

If, as in the example, the material master specifies that 24 pieces of a materialshould be put away onto a europallet with storage unit type E1, then the totalquantity of 120 pieces is split across five storage units. The system generatesone transfer order item for each storage unit. If the transfer order is created inthe foreground, you can make changes to both the palletization and the bindetermination for this document item.

Note: If an error message occurs, choose Environment to call upa Bin Determination Log. You can then see the point at which thedetermination process failed.

Complete Customizing settings and palletization data in the material masterallow you to automate the putaway processes to a large degree.

Note: The transfer order can be created in the background immediatelyafter the goods receipt posting with reference to the transferrequirement. However, it is also possible to generate transfer ordersautomatically for transfer requirements, using a report (RLAUTA10).



Background processing of transfer orders is part of course SCM630, as arethe Customizing settings mentioned only briefly here. For both proceduresmentioned in the note there are indicators that are assigned to the requiredWarehouse Management movement type. The system writes the indicator forautomatic transfer order creation into the document header of each transferrequirement that is generated as a result of a movement with the sameindicator. The report selects all documents with the relevant indicators, andgenerates the transfer orders.

After the transfer order is created, the stock in the goods receipt zone is nolonger available, but instead is being moved. This means that in the stockoverview for Warehouse Management, it is always displayed as stock to beremoved from storage for the goods receipt zone, and as stock to putawayfor the receiving storage type. You can therefore see immediately that theputaway operation is not yet complete. A transfer order for stock removalcannot access the quantities that are being moved.

In this lesson it becomes obvious that problems arise due to the fact that in thebest case scenario, the availability check only has access at storage locationlevel. The actual relationships in the warehouse are hidden for all usersthat do not (or are not permitted to) use the stock overview for WarehouseManagement.

Demonstration: Creating a Transfer Order with Referenceto a Transfer Requirement

PurposeThis demonstration should show how a transfer order is created withreference to a transfer requirement, in the foreground. It should also showhow the putaway operation is mapped in the stock overview for WarehouseManagement.




Set up instructions:

Caution: is only valid if the lesson is not discussed in the contextof the course.

If you are using the lesson on its own, prepare by posting a goods receipt fora purchase order. The purchase order is created using CATT ZT_LO140_02,which is assigned for this course.

Choose Logistics Execution → Inbound Process → Goods Receipt for PurchaseOrder, Order, and Other Transactions → Enter Goods Receipt for Purchase Order.

Find your purchase order using the material number LES04-00. To post thegoods receipt, set the OK indicator for the item and save your entries.

1. Call up the stock overview for material LES04-00 in warehouse number140.


Enter your warehouse number 140 and the material number LES04-00.Confirm your entries with Enter.

The goods receipt zone (interim storage area 902) contains 120 piecesof the material.

2. In a separate session, find the transfer requirement for this stock ofmaterial LES04-00.

Choose Logistics Execution→ Inbound Process → Goods Receipt for PurchaseOrder, Order, and Other Transactions → Putaway → Create Transfer Order→ For Material.

The system usually proposes the necessary data. If the data is missing,enter warehouse number 140 and material number LES04-00 andconfirm with Enter.

3. Select the transfer requirement from the list and choose TO in Foregr..

4. Point out the Palletization screen area. Here you can see the split of thetotal quantity of 120 pieces that has been planned according to thepalletization data in the material master record. In a separate session, callup the material master for material LES04-00 in display mode.

Choose Logistics Execution → Master Data → Material → Material →Display → Display Current Status.



Enter material number LES04-00 and confirm with Enter. Select thesecond Warehouse Management view for plant 1200 and warehousenumber 140. 24 pieces of the material should be put away onto aeuropallet with storage unit type E1.

Hint: You can change the palletization in the transfer order.Depending on your Customizing settings, you can also enterpalletization data (that is different from the data in the materialmaster) when you post the goods receipt. This data is then copiedinto the transfer order.

5. First, demonstrate storage bin determination in the background.

Choose Putaway Background . The system determines five storage binsin a shelf storage area, and creates a separate transfer order item for eachstorage unit. These are only proposals that you can reject if you want.

Hint: The putaway strategy for the shelf storage area (storagetype 002) �Next empty bin� ensures that the system finds a newstorage bin for each storage unit.

6. Reject these system proposals.

Select the transfer order items and choose Delete Selected Items . In thePalletization area, enter the number of storage units in the SU field (5).

7. Now demonstrate how to create single transfer order items in theforeground.

Choose Putaway Foreground . The system creates the first transferorder (work) item.

Hint: The warning message in the status line Check your entries isthere to inform you that the destination data highlighted in red isonly proposed data, and that you can overwrite it at this point.

Confirm the first proposal with Enter and repeat this for the remainingfour items. (The warning message appears for each item). The initialscreen will eventually appear again. To create the transfer order, saveyour data.



8. Return to the stock overview in your first session, and update the screenby choosing Refresh .

9. Interpret the display: You can now see the fact that the material in thewarehouse is now being moved, because the quantity is displayed twice.

Hint: Point out that the available stock of the material is now 0pieces. In reality it could be on a conveyor belt or a forklift.

10. For comparison, call up the stock overview for Inventory Management.

ChooseMMStocks. As before, you see 120 pieces listed asUnrestricted-use.Return to the stock overview for Warehouse Management.

Hint: At this point, it is important to emphasize that no stockremoval transfer order can currently access the 120 pieces of thematerial that are being moved. As long as the material is still inthe goods receipt zone, you can manually force a direct stockremoval from there. (The system will not �voluntarily� try toaccess stocks in interim storage areas.)

Hint: The industry solution mySAP Retail permits cross-docking,which is a standard procedure used in retail. In cross-docking,you pick straight from the goods receipt zone, meaning that thedelivered goods are not put away.

11. Confirm the transfer order in the background.

Choose Logistics Execution→ Inbound Process → Goods Receipt for PurchaseOrder, Order, and Other Transactions → Putaway → Confirm Transfer Order→ Single Document→ In One Step.

The system usually proposes the warehouse number and transfer ordernumber. In the Foreground/Backgrnd field, choose Foreground and confirmwith Enter. Save the document.

Hint: The following describes an optional demonstration forupdating differences when you confirm a transfer order.



12. Check the stock overview again. The 120 pieces are now Unrestricted-usestock in the shelf storage area (storage type 002).

Demonstration: Handling Differences (Optional)

PurposeAs an addition to the previous demonstration, you should show how to entera shortfall quantity when you confirm a transfer order, and then how to postthat quantity in Inventory Management.

Caution: This topic often incites lively discussions. It is not alwaysimmediately obvious that we are talking about quantity variancesthat first appear or occur at putaway. Other participants noticestraightaway that this is another point at which conflicts with Salesand Distribution can occur. Since this is a topic that is closely relatedto the practical, it is usually worthwhile showing the process andallowing a certain amount of discussion.

Hint: If you choose not to perform this demonstration, dependingon the previous knowledge of participants you should advise themagainst attempting the optional exercise for this topic.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal password1. Create a purchase order for 48 pieces of material LES04-00 for plant 1200

and storage location 0140.


Input values:

Vendor 1000




Purch. Group 000

Company Code 1000

2. Post the goods receipt for this purchase order.


At detail level (Where tab page), check the plant and storage location andset the Item OK indicator in the lower left screen area. Save your input.

3. Create a transfer order for the transfer requirement in the background, asdescribed in the first demonstration in point 2ff.

4. Call up the transfer order for confirmation in the foreground (see abovepoint 11), and confirm the transfer order with a difference of one piece.

Enter the shortfall quantity in the Difference Quantity Destination Bincolumn. The system corrects the actual quantity automatically as soonas you confirm with Enter.

Note: In the column to the left of the column for differencequantities, you assign a Difference Indicator (DI). This indicator,which you have predefined in Customizing, shows the reason forthe difference. In Customizing, this indicator controls putawayand stock transfers in the interim storage area to be used in thefollow-on process.

Attempt to save your entries. The system tells you to confirm thatthe shortfall quantity in interim storage area 999 (differences) willbe posted to a dynamic storage bin (coordinate: transfer ordernumber). Confirm the difference by choosing Confirm Difference.The transfer order is confirmed.



5. Check the stock overview for material LES04-00 in warehouse number140. The shelf storage area now contains 167 pieces of the material,storage type 999 contains one piece.

Hint: This means that the system has �put away� the shortfallquantity from the goods receipt zone into the difference storagetype. However, Inventory Management is not yet aware ofthis disappearing piece. If you were to call up the InventoryManagemen stock overview, it would show 168 pieces ofunrestricted-use stock. If a sales employee now enters a rushorder for 168 pieces, the availability check will produce incorrectinformation. This clearly shows that differences must be postedin Inventory Management as soon as possible, in order to avoidthis type of situation.

6. Correct the storage location stocks of material LES04-00:

Chooose Logistics Execution → Internal Warehouse Processes → PhysicalInventory → In Warehouse Management → Clear Differences → InventoryManagement.

In the relevant fields, enter the warehouse number 140 and storage type999, then choose Execute . The system displays the quant to be posted(already selected). Choose Clear: The system displays a log with thematerial document for clearing.

7. Check your material stocks again. They are now corrected at storagelocation level.



85 Exercise 7: Putaway with Transfer OrdersExercise Duration: 15 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create and confirm a transfer order with reference to a transfer

requirement

Business ExampleThe goods receipt zone of your warehouse contains 120 bases for flat screenmonitors, which you ordered from vendor C.E.B. Berlin. The goods receipt forthis purchase order has already been posted, and now the delivered goodsmust be put away.


CATT: ZT_LO140_02Set up instructions:


If you use this lesson on its own, you should prepare by posting a goodsreceipt for a purchase order for all required groups. The purchase orders arecreated using CATT ZT_LO140_02, which is assigned for this course.

Choose Logistics Execution → Inbound Process → Goods Receipt for PurchaseOrder, Order, and Other Transactions → Enter Goods Receipt for Purchase Order.Find the purchase orders using the material number LES04-##. To post thegoods receipt, set the OK indicator for the item and save your entries.

TaskCreate a transfer order to put away the bases, and confirm the order onceputaway is complete.




1. Check the stock for your material LES04-##, in your warehouse number1xx (140 + group number ##).

2. Find the transfer requirement for the stock of material LES04-##.

3. From the list, create a transfer order directly for the transfer requirement.Where does the palletization proposal that appears on the initial screencome from?

4. Check the stocks of your material LES04-##. Are you able to remove thisstock (or a partial quantity of the stock) from storage?

5. Confirm the transfer order.

6. Check the stocks again.



Solution 7: Putaway with Transfer OrdersTaskCreate a transfer order to put away the bases, and confirm the order onceputaway is complete.

1. Check the stock for your material LES04-##, in your warehouse number1xx (140 + group number ##).


Enter your warehouse number 1xx (140 + group number), and thematerial number LES04-##, and confirm with Enter.

b) The goods receipt zone (interim storage area 902) contains 120pieces of the material.

2. Find the transfer requirement for the stock of material LES04-##.

a) Choose Logistics Execution→ Inbound Process → Goods Receipt forPurchase Order, Order, and Other Transactions → Putaway → CreateTransfer Order → For Material.

b) Enter the following data:

Warehouse Number 1xx(140 + group number ##

Material LES04-##

Plant 1200

Storage Location 01xx(0140 + group number ##)





3. From the list, create a transfer order directly for the transfer requirement.Where does the palletization proposal that appears on the initial screencome from?

a) Select your transfer requirement and choose TO in Foregr. fromthe application toolbar.

b) The system finds the palletization data in the material master in thesecond Warehouse Management view.

Hint: To find this data, choose Logistics Execution → MasterData → Material → Material → Display → Display CurrentStatus.

Enter your material number LES04-##. In the next step,Select Views, choose theWarehouse Management 2 view. In thescreen area for organizational areas, add plant 1200 andyour warehouse number 1xx (140 + group number ##).

c) On the initial screen, choose Putaway Foreground .d) Choose Enter to confirm the warning message Check your entries. The

system proposes the next TO work item and issues the same warningmessage. Confirm again with Enter and repeat for the remainingdocument items. The initial screen appears again.

Note: The warning message in the status line is there toinform you that the destination data highlighted in red is onlyproposed data, and that you can overwrite it at this point.

e) Save your input.

4. Check the stocks of your material LES04-##. Are you able to remove thisstock (or a partial quantity of the stock) from storage?

a) Choose Logistics Execution → Internal Warehouse Processes → Bins andStock → Display→ Total Stock per Material (Warehouse Management). Ifyou still have your stock overview open in a separate session, youcan update the display by choosing Refresh .

b) The material is now being moved, and is shown as both stock toremove from storage for the goods receipt zone, and as stock to putaway for the rack storage area.

c) As long as putaway is not complete, you cannot access these stocks.This means you still need to confirm the transfer order.





a) Choose Logistics Execution→ Inbound Process → Goods Receipt forPurchase Order, Order, and Other Transactions → Putaway → ConfirmTransfer Order → Single Document→ In One Step.

To call up the transfer order for editing, choose Enter.

b) To confirm the transfer order, save your data.

6. Check the stocks again.


b) The 120 bases are now in the shelf storage area.





89 Exercise 8: Putaway with Differences(Optional)Exercise Duration: 15 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Report differences at putaway, and clear them in Inventory Management

Business ExampleDuring putaway, one of the bases falls off the forklift and breaks. You mustreport this loss when you confirm the transfer order, and then clear it.


Task

This optional exercise is aimed at experienced participants. The prerequisitefor the exercise is that you have discussed and demonstrated how to cleardifferences in the system. The solutions are less detailed than in the exercisesaimed at all participants.

Create a purchase order, post the goods receipt for the purchase order, andput the material away using a transfer order. Report the difference when youconfirm the transfer order. Clear the difference in Inventory Management.

1. Create a purchase order for 72 pieces of material LES02-## for plant 1200and your storage location 01xx (0140 + group number ##). Post the goodsreceipt for this purchase order.

Enter the following data at header level:




Vendor 1000


Purch. Group 000

Company Code 1000

2. Put away the bases using a transfer order in your warehouse number 1xx(140 + group number ##). When you confirm the transfer order, youreport a difference of one piece.

3. Check the stock for your material LES02-## in your warehouse number1xx (140 + group number ##).

4. Clear the difference in Inventory Management, and check the results inthe stock overview for your warehouse number.

Hint: You must clear the difference that occurred during putawayin the same way that you would clear inventory differences.



Solution 8: Putaway with Differences(Optional)Task

This optional exercise is aimed at experienced participants. The prerequisitefor the exercise is that you have discussed and demonstrated how to cleardifferences in the system. The solutions are less detailed than in the exercisesaimed at all participants.

Create a purchase order, post the goods receipt for the purchase order, andput the material away using a transfer order. Report the difference when youconfirm the transfer order. Clear the difference in Inventory Management.

1. Create a purchase order for 72 pieces of material LES02-## for plant 1200and your storage location 01xx (0140 + group number ##). Post the goodsreceipt for this purchase order.

Enter the following data at header level:

Vendor 1000


Purch. Group 000

Company Code 1000

a) (Create Purchase Order): ChooseMaterials Management→ Purchasing→ Purchase Order→ Create→ Vendor/Supplying Plant Known. At itemlevel, enter your material number LES02-##, the order quantity 72,the plant 1200, and storage location 01xx (0140 + group number##). To create the purchase order, save your data.

b) (Post Goods Receipt): Choose Logistics Execution → Inbound Process→ Goods Receipt for Purchase Order, Order, and Other Transactions →Enter Goods Receipt for Purchase Order.




2. Put away the bases using a transfer order in your warehouse number 1xx(140 + group number ##). When you confirm the transfer order, youreport a difference of one piece.

a) Choose Logistics Execution → Outbound Process → Goods Issue forPurchase Order, Order, and Other Transactions → Putaway → CreateTransfer Order → For Material.

Choose TO Backgrnd to create the transfer order in the background.

b) Choose Logistics Execution→ Inbound Process → Goods Receipt forPurchase Order, Order, and Other Transactions → Putaway → ConfirmTransfer Order → Single Document→ In One Step.

Choose foreground processing.

c) In the Dest.Diff.Quantity field (difference quantity destination bin),enter the shortfall quantity and confirm this entry with Enter. Thesystem automatically corrects the actual quantity.

d) Save your input. To confirm the message concerning the difference,choose Confirm Difference.

3. Check the stock for your material LES02-## in your warehouse number1xx (140 + group number ##).


b) For the shortfall quantity, the system has generated a quant for onepiece of the material in the interim storage area 999.

4. Clear the difference in Inventory Management, and check the results inthe stock overview for your warehouse number.

Hint: You must clear the difference that occurred during putawayin the same way that you would clear inventory differences.

a) Choose Logistics Execution → Internal Warehouse Processes → PhysicalInventory → In Warehouse Management → Clear Differences →Inventory Management.

b) Enter your warehouse number 1xx (140 + group number ##) and theinterim storage area 999. To execute the selection, choose Execute. The system displays the quant to clear.

c) Choose Clear to clear the shortfall quantity from your storagelocation, 01xx (140 + group number ##).

d) Menu path: (See exercise 3a).



Lesson Summary

You should now be able to:� Explain the function of transfer orders� Create a transfer order with reference to a transfer requirement� Confirm a transfer order� Track the putaway process in the stock overview



Lesson:94

Inbound Deliveries for Purchase OrdersLesson Duration: 30 minutes

Lesson OverviewAs of SAP R/3 4.5A, SAP R/3 contains the inbound delivery as a document.In Logistics Execution, this document is used to map goods receipt processeswhere the putaway for materials procured externally must take place beforethe goods receipt is posted in Inventory Management.

The goods receipt process using inbound deliveries is particularly suited tothe requirements of the automotive (supplier) industry.


� Describe the flow of the goods receipt process using inbound deliveries� Explain the function of inbound deliveries� Create an inbound delivery for a purchase order� Call up and interpret the data relevant for putaway in the inbound

delivery document

Usually, most of the participants will not have come into contact with a goodsreceipt process using inbound deliveries. However, for some participants itis an alternative to the goods receipt process consisting of a GR posting fora purchase order and subsequent putaway. You should briefly compare theadvantages and disadvantages of the process using inbound deliveries. If youdeal with this lesson and the following lesson in the context of the unit, thereis a good opportunity to link in a discussion about available stocks, putaway,and requirements from Sales and Distribution from the lesson �Putaway withTransfer Orders�.

Business ExampleIDES AG is investigating an alternative to the previous goods receipt processfor externally procured materials. The incoming goods should be put awaybefore the goods receipt is posted in Inventory Management.


SCM601 Lesson: Inbound Deliveries for Purchase Orders

Goods Receipt with Inbound Deliveries: Process FlowThe goods receipt process using inbound deliveries realistically maps standardprocesses in many companies. If the vendor announces the goods receiptwith a shipping notification, the inbound delivery can be created eithermanually or automatically on the basis of the shipping notification. It containsinformation transmitted by the vendor concerning the expected delivery timesand quantities, as well as any information about packaging. It is also thereference document for the subsequent putaway using a transfer order. If youalso use the transportation function as part of Logistics Execution, you cansummarize inbound deliveries into inbound shipments.

Note: Up until SAP R/3 4.5A, the term �shipping notification� wasused in Materials Management to refer to both the message and thedocument. As of 4.5B, �shipping notification� refers to themessage,�inbound delivery� to the document.

Figure 27: Goods Receipt Process with Inbound Deliveries: Process Flow



If you have an EDI connection to the vendor, the vendor�s shippingnotification can generate an inbound delivery. The purchasing document isalways the reference document.

Note: SAP R/3maps this kind of process with Intermediate Documents(IDocs) using UN/EDIFACT message type DESADV.

Figure 28: Creating an Inbound Delivery Using an EDI Connection

ConfirmationsThe decision about the subsequent process flow is made in the purchasingdocument. If you want to work with inbound deliveries, this must be specifiedfor each item in the purchase order. A confirmation control key is used,which you define in Customizing for Purchasing. A confirmation control keyin the purchase order specifies that the orderer is expecting a confirmationfrom the vendor for the selected item. This can be either an order confirmationor a shipping confirmation. The inbound delivery is also categorized as atype of order confirmation.

Customizing links the confirmation control key Inbound Delivery with thedelivery type (EL) that was preconfigured for the document �inbounddelivery�. If the confirmation control key Inbound Delivery is assigned to apurchase order item, this also means that you can no longer post a goods



receipt with reference to the purchase order. You must post the goods receiptwith reference to the inbound delivery. If you are using the WarehouseManagement System, you usually perform a putaway with a transfer orderbefore the goods receipt can be posted for the inbound delivery. Accordingly,you can only create an inbound delivery for purchase order items with therelevant confirmation control key.

Note: In the vendor master and/or purchasing information record,you can specify a default confirmation control key in the purchasingorganization data. In Customizing for Shipping, you can also assignsuitable default values for combinations of plant, storage type,purchasing document category, and purchase order category.

You can find the Customizing settings for confirmations inpurchasing documents in the SAP Reference IMG under MaterialsManagement→Purchasing→Confirmations→Set Up Confirmation Control. Hereyou can also activate automatic creation of inbound deliveries withoutshipping notifications for the decentralized Warehouse Management System.You assign confirmation control keys to organizational units in Customizingunder Logistics Execution→Shipping→Deliveries→Define Order Confirmationsfor Inbound Deliveries.

Caution: You can post the goods receipt for the inbound deliverybefore the putaway if you use transaction MIGO, even if you areusing the Warehouse Management System. A transfer requirement isgenerated for which the system creates the putaway transfer order.However, this process goes against a central advantage of introducingthe inbound delivery process, namely that material should only beissued as unrestricted-use storage location stock after the putaway iscomplete.

The Inbound DeliveryThe construction of the document for the inbound delivery is essentially thesame as for the outbound delivery, the SAP R/3 document that is the basis ofshipping processing in the goods issue process. The inbound delivery also hasa document header containing the data valid for the entire transaction (vendor,goods receiving point, delivery date) and document items for the includedmaterials. For each of these items, the system attempts to determine thereceiving plant and storage location from the purchase order. You can change



the storage location manually before putaway, or add a storage location if it ismissing in the purchase order. The system uses the storage location to decidewhether the material is put away. If the receiving plant and storage locationare assigned to one warehouse number in Customizing, the system displaysthis warehouse number as the target in the inbound delivery. Also, the systementers an overall status for the putaway and a status for the transfer orderprocessing, which is updated in the course of the goods receipt process.

Figure 29: Determining Warehouse Numbers

In the inbound delivery, the system uses the warehouse managementmovement type for goods receipts for externally procured materials todetermine the issuing storage type for each document item (in other words,the interim storage area goods receipt zone, and the issuing storage bin, whichis usually a dynamic storage bin with the number of the purchase order as itsbin coordinates).

Note: The system displays this data for each item on the Putaway tabpage.

A main advantage of the goods receipt process using inbound deliveries, isthat in Inventory Management and Sales and Distribution, you can only seethose unrestricted-use receipts that have already been put away. The storagelocation stocks used in the availability check are only increased at the end ofthe process.



If you use Handling Unit Management, a management system for packagesin SAP R/3 that can be implemented at any point in the logistics process, youmust use the goods receipts process with inbound deliveries, since only theinbound delivery allows packing or accepting packages from the vendor.The same applies if you use the decentralized Warehouse ManagementSystem. The central Enterprise Resource Planning system (ERP system) andthe decentralized Warehouse Management System exchange process dataexclusively via inbound and outbound deliveries. However, if you wantto use Quality Management (QM) in SAP R/3, you cannot process goodsreceipts using inbound deliveries unless you are also using Handling UnitManagement.

Demonstration: Creating an Inbound Delivery for aPurchase Order

Purpose

Participants should understand that the subsequent process flow in LogisticsExecution is decided in Purchasing, by flagging individual purchase orderitems with a confirmation control key for inbound deliveries. They shouldexamine the document Inbound Delivery and be able to extract warehousemanagement-related information from it. The exercise is therefore constructedaccording to this demonstration.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Check the stocks of material LES04-00 in warehouse number 140.



2. Create a purchase order for 48 pieces of material LES04-00 for plant 1200and storage location 0140. Enter a delivery date of your choice.




Data to enter at header level:

Vendor 1000


Purch. Group 000

Company Code 1000

At item level, go to the Confirmations tab page and assign confirmationcontrol key Inbound Delivery to the item.

Hint: You can only see key ANLI if you have activated �expert

mode� using Customizing of Local Layout .

Save your input. You can no longer post a goods receipt for this purchaseorder using transaction MIGO.

3. Call up the transaction for creating an inbound delivery for a purchaseorder (VL31N).

Choose Logistics Execution→ Inbound Process → Goods Receipt for InboundDelivery → Inbound Delivery → Create → Single Documents.

If necessary, enter the number of your purchase order (the system usuallysuggests the number to you). Enter a delivery date notified to you by thevendor, and confirm with Enter.

4. Go to the Putaway tab page: The system determined warehouse number140. The overall status of the putaway and the transfer order status areboth A.



Statuses are assigned and updated in the inbound delivery in the sameway as in status administration for the outbound delivery. If the systemhas determined a warehouse number, both status fields contain values. Ifyou assign a storage location that is not linked to a warehouse number,the system only shows the overall status.

Hint: In the exercise, some participants forget to enter the storagelocation when creating the purchase order. In the inbounddelivery the Storage Location field is then blank, and the systemdoes not determine a warehouse number. When you create thetransfer order for the putaway in lesson �Putaway and GoodsReceipt Posting�, the system issues the error message No itemsto put away or handling units were found. You need to call up theinbound delivery again in change mode in order to add thestorage location.

Save the inbound delivery.

Caution: Unfortunately, the inbound delivery is still incorrectlycalled shipping notification in both the document and the statusline.

5. Call the inbound delivery in either display or change mode, and displaythe withdrawal data at item level.

Choose Logistics Execution→ Inbound Process → Goods Receipt for InboundDelivery → Inbound Delivery → Change or Display.

Select the document item and choose from the menu Goto → Item →Putaway. In the lower right corner in theWarehouse block, the systemdisplays the storage type 902 (goods receipt zone external receipts) and astorage bin with the number of your purchase order as its bin coordinates.

6. Return to your purchase order and check the updates of the process.

Choose Materials Management → Purchasing → Purchase Order →Change/Display.

Go to the Confirmations tab page. The inbound delivery you just createdfor the purchase order is shown in the list of confirmations with anotified delivery date.





101 Exercise 9: Creating an Inbound Delivery fora Purchase OrderExercise Duration: 20 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create an inbound delivery for a purchase order

Business ExampleYou order 48 bases for flat screen monitors from vendor C.E.B. Berlin. Thevendor informs you of an expected delivery date.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##.Password: init or personal password


TaskCreate a purchase order for 48 bases for flat screen monitors, and specifyin the purchase order that you want to create an inbound delivery for thispurchase order.

1. Order 48 pieces of material LES04-## from vendor 1000 for plant 1200and storage location 01xx (0140 + group number ##). Enter a deliverydate of your choice.


Vendor 1000


Purch. Group 000

Company Code 1000




2. In your purchase order, specify that further processing will use aninbound delivery.

Hint: There is a confirmation control key Inbound Delivery on theConfirmations tab page at item level.

3. Call up the transaction for creating an inbound delivery for a purchaseorder (VL31N). On the initial screen Create Inbound Delivery, enter thedelivery date from the vendor (such as the delivery date you entered inthe purchase order).

4. Check whether your system has determined warehouse number 1xx(140 + group number ##),

5. Create the inbound delivery. Call up the inbound delivery again inchange mode.

Hint: If, when you save, the system issues a warning messageAcknowledgement for PO item x contains date variance. Confirmthe message by choosing Enter.

6. Check whether the system has correctly determined the data for theissuing storage type and the storage bin, for later putaway in yourwarehouse number.

Hint: You can see this information at item level.

7. Check whether the system has updated the creation of the inbounddelivery in the purchase order.



Solution 9: Creating an Inbound Delivery fora Purchase OrderTaskCreate a purchase order for 48 bases for flat screen monitors, and specifyin the purchase order that you want to create an inbound delivery for thispurchase order.

1. Order 48 pieces of material LES04-## from vendor 1000 for plant 1200and storage location 01xx (0140 + group number ##). Enter a deliverydate of your choice.


Vendor 1000


Purch. Group 000

Company Code 1000

a) ChooseMaterials Management → Purchasing → Purchase Order →Create → Vendor/Supplying Plant Known.


Vendor 1000


Purch. Group 000

Company Code 1000


b) Enter material LES04-##, the required quantity (48 pieces), plant1200, and storage location 01xx (0140 + group number ##).Confirm your entries with Enter.




2. In your purchase order, specify that further processing will use aninbound delivery.

Hint: There is a confirmation control key Inbound Delivery on theConfirmations tab page at item level.

a) At item level, go to the Confirmations tab page and assignconfirmation control key Inbound Delivery to the item.

b) Save your input.

3. Call up the transaction for creating an inbound delivery for a purchaseorder (VL31N). On the initial screen Create Inbound Delivery, enter thedelivery date from the vendor (such as the delivery date you entered inthe purchase order).

a) Choose Logistics Execution→ Inbound Process → Goods Receipt forInbound Delivery → Inbound Delivery → Create → Single Documents.

b) If necessary, enter the number of your purchase order and thedelivery date. Choose Enter. The overview screen for the inbounddelivery appears.

4. Check whether your system has determined warehouse number 1xx(140 + group number ##),

a) Choose the Putaway tab page.b) If theWarehouse Number field is empty, check the storage location in

your delivery item. If necessary, enter your storage location 01xx(0140 + group number ##), manually.

Hint: The storage location for the item is copied from thepurchase order. If you do not enter a storage location, youmust enter it later in the inbound delivery.




5. Create the inbound delivery. Call up the inbound delivery again inchange mode.

Hint: If, when you save, the system issues a warning messageAcknowledgement for PO item x contains date variance. Confirmthe message by choosing Enter.

a) Save your data. The initial screen appears and the system shows adocument number in the status line.

b) To change the inbound delivery, choose Logistics Execution→ InboundProcess → Goods Receipt for Inbound Delivery → Inbound Delivery →Change → Single Document.

If the system does not propose your inbound delivery number, enterthe number in the Inbound Delivery field. Confirm with Enter toreturn to the overview screen for the inbound delivery.

6. Check whether the system has correctly determined the data for theissuing storage type and the storage bin, for later putaway in yourwarehouse number.

Hint: You can see this information at item level.

a) Select the document item with material LES04-## and from themenu choose Goto → Item → Putaway.

b) In the lower right corner in theWarehouse block, the system displaysthe storage type 902 (goods receipt zone external receipts) anda storage bin with the number of your purchase order as its bincoordinates.

7. Check whether the system has updated the creation of the inbounddelivery in the purchase order.

a) Call your purchase order in display mode. Choose MaterialsManagement → Purchasing → Purchase Order → Display.

b) At item level, go to the Confirmations tab page. The documentnumber and notified delivery date are shown in the list ofconfirmations.



Lesson Summary

You should now be able to:� Describe the flow of the goods receipt process using inbound deliveries� Explain the function of inbound deliveries� Create an inbound delivery for a purchase order� Call up and interpret the data relevant for putaway in the inbound

delivery document


SCM601 Lesson: Putaway and Goods Receipt Posting

Lesson:107

Putaway and Goods Receipt PostingLesson Duration: 30 minutes

Lesson OverviewThis lesson explains the technical posting process for putaway with referenceto the inbound delivery.


� Create and confirm a transfer order for an inbound delivery� Use the inbound delivery monitor� Post the goods receipt for an inbound delivery� Trace the putaway steps in the stock overview

Many participants are unaware of the process of goods receipt with inbounddeliveries. Mapping the putaway in the stock overview for WarehouseManagement does not always register with participants straightaway. For thisreason, you should explain the process step-by-step.

Business ExampleVendor C.E.B. Berlin has delivered bases for flat screen monitors, as per apurchase order. The goods are brought from the goods receipt zone into thewarehouse itself. Afterwards, the goods receipt is posted in the InventoryManagement system.

Putaway Process for Inbound DeliveriesA transfer order is required to put away the delivered goods. This refers tothe inbound delivery, and adopts essential data from the delivery for furtherprocessing (such as the issuing storage type and issuing storage bin). Whenyou create the transfer order, the system uses master data and Customizingsettings to determine storage types, storage sections, and storage bins forputaway. The goods receipt posting in Inventory Management, which alsorefers to the inbound delivery, completes the process.



Figure 30: Putaway Process for Inbound Deliveries

Mapping the Putaway OperationIn the inbound delivery, the system determines a putaway storage locationfor each delivery item from either the purchase order or the Customizingsettings. If the plant and storage location are linked to a warehouse numberin Customizing, the system displays this warehouse number in the inbounddelivery. The relevance for Warehouse Management is flagged with an overallputaway status and a transfer order status. This status shows you the progressof the putaway. In the transfer order for the putaway, the system copiespalletization data - where present - from the material master.

Usually, the system adopts the putaway location for each item from thepurchase order. However, it is possible to enable the system to determinethe storage location in the inbound delivery. In other words, you can setup putaway location determination in the same way as you set up pickinglocation determination in the outbound delivery. To do this, you must first



assign a storage location determination rule to the delivery type. Regardlessof its source, you can change the storage location manually in the inbounddelivery.

When you create a transfer order for an inbound delivery, this causes thesystem to update at least one of the negative quants in the interim storagearea goods receipt zone.

Note: The delivery items and quantities define the number of quantsin the goods receipt zone. For example, if more than one material wasdelivered, the system generates at least one quant for each material.If individual materials are subject to batch management, the systemgenerates at least one quant for each batch.

Figure 31: Negative Quant

This negative quant is a constructed object that ensures that at each point inthe process, the stocks inWarehouse Management and Inventory Managementhave the same total. In the example, the transfer order for putaway refersto an inbound delivery for 24 pieces of a material. The putaway itself takesplace before the transaction is posted in Inventory Management. This meansthat temporarily, 144 pieces of the material already exist in the warehouse.However, Inventory Management shows only 120 pieces in the stockoverview. The quantity of the negative quant in the goods receipt zone (-24pieces) is subtracted from the total stock in the warehouse number, so that thestock overview in Warehouse Management also shows a total of 120 pieces ofthe material.



The goods receipt posting always refers to the inbound delivery. You canonly post the goods receipt once the putaway is complete for all items. Bothdelivery statuses must be set to C.

Note: When you put away partial quantities, this results in the overallstatus B. If the transfer order for putaway has not yet been confirmed,the transfer order status is B.

The goods receipt posting increases the storage location stocks. The negativequant in the interim storage area has therefore served its purpose, and iscleared by the stock increase. Only now can the user see the putaway receivedgoods in Sales and Distribution.

Note: You report differences that arise or are noticed at putawaywhen you confirm the transfer order. The shortfall quantity is postedthrough the interim storage area assigned in Customizing.

In SAP R/3 Enterprise, you can post a partial goods receipt for an inbounddelivery. If several transfer orders are required to put away the total deliveredquantity, you can post the partial quantity with reference to the inbounddelivery after you have posted one transfer order for the goods receipt. Thesame applies if the transfer order contains several items, and putaway is onlyconfirmed for some of the items.

See below for an optional demonstration of this new development. There is anoptional exercise available for participants.

Demonstration: Putaway for Inbound Deliveries

PurposeShow the technical posting process of putaway for an inbound delivery. Inparticular, refer to how the process steps are displayed in the stock overviewfor Warehouse Management.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##



Password: init or personal passwordSet up instructions:


If you are using the lesson on its own, prepare by creating an inbound deliveryfor a purchase order. The purchase order is created by CATT ZT_LO140_02.

Choose Logistics Execution→ Inbound Process → Goods Receipt for InboundDelivery → Inbound Delivery → Create → Single Documents.

1. Check the stocks of material LES04-00 in warehouse number 140.



2. Create a transfer order for the inbound delivery. Find the relevantinbound delivery using the inbound delivery monitor.

Choose Logistics Execution → Inbound Process → Goods Receipt for InboundDelivery → Putaway → Create Transfer Order → For Inbound Delivery.

Choose Delivery Monitor Inb. Deliveries and on the next screen choose ForPutaway. Find your inbound delivery using your warehouse number140. Choose Execute .

3. Display the inbound delivery by double-clicking on the documentnumber. Choose the Putaway tab page and explain the storage-relevantdata.

Note: The storage location for the delivery item is copied fromthe reference purchase order. The system adopts the warehousenumber assignment from Customizing, and sets the overallputaway status and transfer order status to A.

4. Go back to the delivery monitor and create the transfer order for theinbound delivery in the foreground.



Select the inbound delivery and choose TO Fgrnd. Transaction CreateTransfer Order for Delivery Note appears (transaction code LT03).

Hint: The transaction for creating a transfer order for inbounddeliveries has the code LT0F. However, if you use the deliverymonitor, the system uses transaction LT03.

In the Palletization area, the system displays the distribution of thequantity to put away, with reference to the settings in the materialmaster (second Warehouse Management view).

5. The system proposes storage bins. Save all entries.

Choose Putawayl Background .

6. Call up the stock overview for Warehouse Management. The 48 pieces ofmaterial to put away are shown both as stock to put away for the rackstorage area, and as stock to remove from storage for the goods receiptzone. There is also a remaining negative stock in the goods receipt zone.

Hint: For comparison purposes, you can call up the stockoverview in Inventory Management (MM Stocks).


Choose Logistics Execution → Inbound Process → Goods Receipt for InboundDelivery → Putaway → Confirm Transfer Order → Single Document → InOne Step.

8. Update the stock overview by choosing Refresh . The quantity to putaway is now Unrestricted-use stock for the shelf storage area. However,the negative stock in the goods receipt zone is retained until the goodsreceipt is posted.

9. Post the goods receipt for the inbound delivery:

Choose Logistics Execution → Inbound Process → Goods Receipt for InboundDelivery → Post Goods Receipt → Inbound Delivery Individual Document.

Before you post the goods receipt, look at the status update: both deliverystatuses should now be set to C. Choose Post Goods Receipt to post thegoods receipt.



10. Call up the stock overview again for the material. The negative stock inthe goods receipt zone has disappeared. Check also the storage locationstocks by choosing MM Stocks.

Demonstration: Goods Receipt Posting After PartialPutaway (Optional)

PurposeIf any participants are interested in the new function for goods receipt postingafter partial putaway, show them this demonstration.

Hint: If you choose not to perform this demonstration, dependingon the previous knowledge of participants you should advise themagainst attempting the optional exercise for this topic.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Create a purchase order for 120 pieces of material LES04-00 for plant

1200 and storage location 0140. At item level (Confirmations tab page),choose confirmation control key ANLI (Inbound Delivery) to specify thatyou want to perform further processing using an inbound delivery.


Vendor 1000


Purch. Group 000

Company Code 1000


2. Create an inbound delivery for your purchase order (see above under�System Data�).



3. Create (at least) two transfer orders for the inbound delivery (for menupaths and description, see point 2 of the first demonstration). In thefirst transfer order, for example, reduce the number of storage units toput away to three. To create the transfer order, confirm the informationmessage Requested quantity x % fulfilled, and so on by choosing Yes.

4. Now confirm the first of the two transfer orders (see above, point 7).However, on the initial screen in the Adopt Putaway Quantity field, chooseoption 4 to specify that you want the system to post the goods receiptdirectly after this partial putaway.

Hint: The text for this key is Do not adopt putaway quantity asdelivery quantity, but post goods receipt. This means that you canpost further (partial) goods receipts for the inbound delivery ata later time.

5. Display the inbound delivery and check the document flow (Environment→Document Flow). An entry for the partial goods receipt posting appears.The second transfer order still has the overall processing status Open.

6. Now confirm the second transfer order in the background. Use option 4.



111 Exercise 10: Putaway for Inbound DeliveriesUsing Transfer OrdersExercise Duration: 20 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a transfer order and post the goods receipt for an inbound delivery

Business ExampleVendor C.E.B. Berlin has delivered 48 bases for flat screen monitors. Thegoods should be brought from the goods receipt zone into the warehouseitself. After putaway is complete, the goods receipt should be posted inInventory Management.




If you are using the lesson on its own, prepare by creating an inbound deliveryfor a purchase order for each group. The purchase orders are created byCATT ZT_LO140_02.

Choose Logistics Execution → Inbound Process → Goods Receipt for InboundDelivery→ Inbound Delivery→ Create → Collective Processing of Purchase Orders.

Select the purchase orders to process using plant 1200, and move the deliverydate forward by about a week. If you remove the Test Run indicator, thesystem generates the inbound deliveries in the background.



TaskCreate the transfer order for the inbound delivery. Put away the deliveredgoods and post the goods receipt for the inbound delivery.

1. Check the stock for material LES04-## in your warehouse number 1xx(140 + group number ##) and your storage location 01xx (0140 + groupnumber ##).

2. Find the inbound delivery for your material LES04-##. Use the inbounddelivery monitor (transaction VL06I)).

Hint: Select using your warehouse number 1xx (140 + groupnumber ##).

3. Display your inbound delivery and check the two putaway statuses.

4. From the monitor, create a transfer order in the foreground.

5. Check the stock overview again.

6. Confirm your transfer order in the background.

7. After confirmation, check your stocks.

8. Post the goods receipt for your inbound delivery. Before you do this, lookat the status update. Both delivery statuses should now be set to C.

9. Check the stocks again for your warehouse number and your storagelocation.



Solution 10: Putaway for Inbound DeliveriesUsing Transfer OrdersTaskCreate the transfer order for the inbound delivery. Put away the deliveredgoods and post the goods receipt for the inbound delivery.

1. Check the stock for material LES04-## in your warehouse number 1xx(140 + group number ##) and your storage location 01xx (0140 + groupnumber ##).


Enter your warehouse number 1xx (140 + group number ##) andmaterial number LES04-##, and confirm with Enter.

b) Choose Logistics Execution→ Internal Warehouse Processes → Bins andStock → Display → Total Stock per Material (Inventory Management).

Enter material number LES04-## and choose Execute .

Hint: Leave the remaining fields empty.




2. Find the inbound delivery for your material LES04-##. Use the inbounddelivery monitor (transaction VL06I)).

Hint: Select using your warehouse number 1xx (140 + groupnumber ##).

a) Choose Logistics Execution → Inbound Process → Goods Receipt forInbound Delivery → Inbound Delivery → Lists → Inbound DeliveryMonitor .

b) Choose For Putaway.

Hint: The putaway is the next step for processing yourinbound delivery. You can choose to search for yourdocument using the Delivery List for Inbound Deliveries. Theadvantage of the procedure in b), is that you can create atransfer order directly from the document list.

c) Select your inbound delivery using your warehouse number 1xx(140 + group number ##). To perform the search, choose Execute .The document number of your inbound delivery appears in the listof Inbound Deliveries for Putaway.

3. Display your inbound delivery and check the two putaway statuses.

a) Select your inbound delivery and choose Follow-On Functions →Display Inbound Deliveries.

b) Choose the Putaway tab page. The Overall Putaway Status and theOverall Status WM are set to A.

c) Go back to the inbound delivery monitor.




4. From the monitor, create a transfer order in the foreground.

a) Select your inbound delivery and choose TO in Foregr..b) Check the data on the initial screen of transaction LT03. Are the

warehouse number and document number correct? If they arecorrect, confirm with Enter.

Hint: The System-Guided option takes you to foregroundprocessing of the transfer order.

c) Check the palletization for the total quantity, and choose Putaway

Background or Putaway Foreground .

Hint: The Putaway Foreground option enables you tomanually change the destination storage type, storagesection, and/or storage bin.

d) To create the transfer order, save your entries.



b) The 48 pieces of material to put away are shown as both stock toput away into the shelf storage area, and as stock to remove fromstorage in the goods receipt zone. There is also remaining negativestock in the goods receipt zone.

6. Confirm your transfer order in the background.

a) Choose Logistics Execution → Inbound Process → Goods Receipt forInbound Delivery → Putaway → Confirm Transfer Order → SingleDocument → In One Step.

b) In the Control block, choose the processing option Background andconfirm your selection with Enter. The system confirms the transferorder in the background.




7. After confirmation, check your stocks.


b) You have now put away the delivered material. Because the goodsreceipt has not yet been posted in Inventory Management, thenegative quant remains in the goods receipt zone.

8. Post the goods receipt for your inbound delivery. Before you do this, lookat the status update. Both delivery statuses should now be set to C.

a) Choose Logistics Execution → Inbound Process → Goods Receipt forInbound Delivery → Post Goods Receipt → Inbound Delivery IndividualDocument.

If the system does not propose your inbound delivery, enter thedocument number in the Inbound Delivery field, and confirm withEnter.

b) On the overview screen, choose the Putaway tab page.c) To post the goods receipt, choose Post Goods Receipt.

9. Check the stocks again for your warehouse number and your storagelocation.


b) Choose Logistics Execution → Internal Warehouse Processes → Bins andStock → Display → Total Stock per Material (Inventory Management).



117 Exercise 11: Partial Putaway withSubsequent Goods Receipt Posting(Optional)Exercise Duration: 15 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Process a partial putaway with a subsequent goods receipt posting for

the inbound delivery

Business ExampleIt is not always possible to put away the entire delivered quantity immediately.However, the partial quantity should be available as soon after putaway aspossible.


CATT: NoneSet up instructions: None

TaskCreate a purchase order, enter an inbound delivery for the order, and putaway only a partial quantity. The system should post the goods receipt for thispartial quantity as soon as the transfer order is confirmed.

1. As in the first exercise, create a purchase order for 120 pieces of materialLES04-## for plant 1200 and storage location 01xx (0140 + group number##). In the purchase order, indicate that you want to continue processingusing an inbound delivery.

Input values:




Vendor 1000


Purch. Group 000

Company Code 1000

2. Create an inbound delivery for your purchase order, and check theputaway status.

3. Create two transfer orders for the inbound delivery by dividing up thetotal quantity to put away. For the first transfer order, choose foregroundprocessing.

4. Confirm the first transfer order in the background. Before you do this,specify that the partial quantity goods receipt should be posted directlyafter the confirmation.

Hint: Select option 4 (Do not take putaway qty as delivery qty, butpost GR) as the value for the Adopt Putaway Quantity field.

5. Finally, check the document flow for your inbound delivery. Was thegoods receipt posted for the partial quantity?

6. Confirm the second transfer order in the background. As for the firsttransfer order, specify that the goods receipt should be posted directlyafter confirmation.



Solution 11: Partial Putaway withSubsequent Goods Receipt Posting(Optional)TaskCreate a purchase order, enter an inbound delivery for the order, and putaway only a partial quantity. The system should post the goods receipt for thispartial quantity as soon as the transfer order is confirmed.

1. As in the first exercise, create a purchase order for 120 pieces of materialLES04-## for plant 1200 and storage location 01xx (0140 + group number##). In the purchase order, indicate that you want to continue processingusing an inbound delivery.

Input values:

Vendor 1000


Purch. Group 000

Company Code 1000

a) ChooseMaterials Management → Purchasing → Purchase Order →Create → Vendor/Supplying Plant Known.

b) At item level, select the Confirmations tab page and the confirmationcontrol key Inbound Delivery. Save your purchase order.

2. Create an inbound delivery for your purchase order, and check theputaway status.

a) Choose Logistics Execution→ Inbound Process → Goods Receipt forInbound Delivery → Inbound Delivery → Create → Single Documents.

b) On the Putaway tab page, you can see the transfer order status A andyour (target) warehouse number, 1xx (140 + group number ##).




3. Create two transfer orders for the inbound delivery by dividing up thetotal quantity to put away. For the first transfer order, choose foregroundprocessing.

a) Choose Logistics Execution → Inbound Process → Goods Receipt forInbound Delivery → Putaway → Create Transfer Order → For InboundDelivery.

b) Reduce the number of storage units (SU) from five to three, and

choose Putaway Background . Confirm the question Requestedquantity x% fulfilled - Created items sufficient? with Yes. Save yourentries to create the transfer order.

c) Create the second transfer order for the remaining quantity in thebackground.

4. Confirm the first transfer order in the background. Before you do this,specify that the partial quantity goods receipt should be posted directlyafter the confirmation.

Hint: Select option 4 (Do not take putaway qty as delivery qty, butpost GR) as the value for the Adopt Putaway Quantity field.


b) On the initial screen in the Adopt Putaway Quantity field, selectoption 4 and confirm with Enter.

5. Finally, check the document flow for your inbound delivery. Was thegoods receipt posted for the partial quantity?

a) Choose Logistics Execution → Inbound Process → Goods Receipt forInbound Delivery → Inbound Delivery → Display→ Single Documents.

b) From the menu, choose Environment → Document Flow. The goodsreceipt posting for the quantity put away in the last step is shownin the document flow. The second transfer order has the overallprocessing status Open.




6. Confirm the second transfer order in the background. As for the firsttransfer order, specify that the goods receipt should be posted directlyafter confirmation.


b) In the Foreground/Backgrnd field, set the Background indicator, andin the Adopt Putaway Quantity field choose option 4. To confirmthe transfer order, choose Enter.



Lesson Summary

You should now be able to:� Create and confirm a transfer order for an inbound delivery� Use the inbound delivery monitor� Post the goods receipt for an inbound delivery� Trace the putaway steps in the stock overview


SCM601 Unit Summary

Unit SummaryYou should now be able to:� Explain the technical posting process of a goods receipt for a purchase

order, with subsequent putaway� Create a purchase order in Purchasing� Post a goods receipt for this purchase order in Inventory Management� Display the transfer requirement generated by the goods receipt posting,

and interpret its contents� Explain the function of transfer orders� Create a transfer order with reference to a transfer requirement� Confirm a transfer order� Track the putaway process in the stock overview� Describe the flow of the goods receipt process using inbound deliveries� Explain the function of inbound deliveries� Create an inbound delivery for a purchase order� Call up and interpret the data relevant for putaway in the inbound

delivery document� Create and confirm a transfer order for an inbound delivery� Use the inbound delivery monitor� Post the goods receipt for an inbound delivery� Trace the putaway steps in the stock overview


Unit Summary SCM601




1. Available Stock in the Warehouse Management stock overview means:Choose the correct answer(s).

A �Available� in the context of the availability checkB �Unrestricted-use� in the sense of the Inventory Management

stock overviewC �Not being moved in the warehouse�D �Can be removed from stock� as long as the storage bin has

not been blocked

2. What is a �dynamic� storage bin?

3. Which storage types can contain dynamic storage bins?

4. How does the system determine a storage bin for putaway?

5. In transfer order creation, what do the terms �direct� and �automatic�mean?

Direct:

Automatic:



6. If you have assigned the confirmation control key Inbound Delivery to apurchase order item, you cannot post a goods receipt for the purchaseorder.Determine whether this statement is true or false.

TrueFalse

7. At which points in the system can you define a confirmation control keyas a default value for the purchase order?

8. At what point in the putaway process is a negative quant generated inthe interim storage area goods receipt zone?

9. In SAP R/3 Enterprise, you can post the goods receipt for a partial quantityafter you put away the partial quantity.Determine whether this statement is true or false.

TrueFalse



127Answers

1. Available Stock in the Warehouse Management stock overview means:

Answer: C, D

Available Stock in the Warehouse Management stock overview means�not being moved in the warehouse.� Available Stock is contained in thestorage bins, and can be removed from stock as long as the storage binhas not been blocked.

2. What is a �dynamic� storage bin?

Answer: A �dynamic� storage bin is a storage bin generated by thesystem for a specific transaction, and which only exists for the durationof the transaction.

3. Which storage types can contain dynamic storage bins?

Answer: Only interim storage areas can contain dynamic storage bins.

4. How does the system determine a storage bin for putaway?

Answer: It first determines the target storage type. If you have set, inCustomizing for storage types, that the system should check the storagesection at putaway, the next step is that the system searches for a storagesection. The system then performs storage bin determination in thisstorage section, according to the putaway strategy of the destinationstorage type.

5. In transfer order creation, what do the terms �direct� and �automatic�mean?

Direct:

Automatic:

In direct transfer order creation, the document is created directly afterthe previous posting. In comparison, automatic transfer order creationuses a report (RLAUTA10). The documents are therefore created with atime delay.



6. If you have assigned the confirmation control key Inbound Delivery to apurchase order item, you cannot post a goods receipt for the purchaseorder.

Answer: True

If you have assigned the confirmation control key Inbound Delivery to apurchase order item, you cannot post a goods receipt for the purchaseorder.

7. At which points in the system can you define a confirmation control keyas a default value for the purchase order?

Answer: You can store the confirmation control key as a default value inthe purchasing information record, and in Customizing for the delivery.

8. At what point in the putaway process is a negative quant generated inthe interim storage area goods receipt zone?

Answer: The negative quant is generated when you create the transferorder for the inbound delivery.

9. In SAP R/3 Enterprise, you can post the goods receipt for a partial quantityafter you put away the partial quantity.

Answer: True

This statement is correct. This is a new option that is available in SAPR/3 Enterprise.


Unit 4129 Goods Issue Processes

In this unit, introduce the two basic forms of goods issue processing, andcompare the technical posting processes. In contrast to goods receiptprocessing, the structure of the process usually triggers the goods issue.

Unit OverviewThe goods issue process also has two basic forms in Logistics Execution,which you will learn about in this unit:

� Goods issue posting (for example, for a work order or a cost center) andsubsequent stock removal

� Outbound delivery for sales order, stock removal for outbound delivery,and subsequent goods issue posting for the outbound delivery


� Explain the technical posting process of a goods issue for a cost centerwith subsequent stock removal

� Post a goods issue for a cost center in Inventory Management� Display the transfer requirement generated by the goods issue posting� Interpret the stock overview� Create a transfer order for a transfer requirement� Confirm the transfer order� Track the stock removal in the stock overview� Describe the goods issue process with outbound deliveries� Create a sales order


Unit 4: Goods Issue Processes SCM601

� Check the scheduling of the shipping process� Create an outbound delivery for a sales order� Call up and interpret document data that is relevant for the stock removal� Create and confirm a transfer order for an outbound delivery� Post the goods issue for an outbound delivery� Use the outbound delivery monitor� Name the options available for collective processing and automated

processing

Unit ContentsLesson: Goods Issue Posting for Cost Centers... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171

Demonstration: Withdrawals for Cost Centers from a Warehouse-ManagedStorage Location.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176Exercise 12: Withdrawals for Cost Centers ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179

Lesson: Stock Removal with Transfer Orders .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183Demonstration: Stock Removal with Transfer Orders... . . . . . . . . . . . . . . . . . . .186Procedure: Creating a Transfer Order for a Transfer Requirement ... . . .190Exercise 13: Stock Removal with Transfer Orders ... . . . . . . . . . . . . . . . . . . . . . .191

Lesson: Outbound Deliveries for Sales Orders ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196Demonstration: Creating a Sales Order .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .205Demonstration: Creating Outbound Deliveries for Orders .. . . . . . . . . . . . . . .207Exercise 14: Outbound Deliveries for Sales Orders .. . . . . . . . . . . . . . . . . . . . . .209

Lesson: Stock Removal and Goods Issue Posting .. . . . . . . . . . . . . . . . . . . . . . . . . . . .216Demonstration: Stock Removal for Outbound Deliveries and Goods IssuePostings... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .223Demonstration: Cancelling Goods Issue Postings and Return Transfer ofthe Outbound Delivery (Optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226Exercise 15: Outbound Delivery Process: Stock Removal with TransferOrder and Goods Issue Posting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .229Exercise 16: Return Transfer for Stock Removal (Optional) . . . . . . . . . . . . . .235


SCM601 Lesson: Goods Issue Posting for Cost Centers

Lesson:131

Goods Issue Posting for Cost CentersLesson Duration: 25 minutes

Lesson OverviewThis lesson deals with how to post a goods issue for a cost center from awarehouse-managed storage location, in order to determine the effects of thiskind of withdrawal posting in Warehouse Management.


� Explain the technical posting process of a goods issue for a cost centerwith subsequent stock removal

� Post a goods issue for a cost center in Inventory Management� Display the transfer requirement generated by the goods issue posting� Interpret the stock overview

This lesson forms a unit with lesson �Outbound Delivery with TransferOrder�. In the context of the unit �Goods Issue Processes� as a whole,the goods issue covered here For Other Transactions should be comparedand contrasted with the goods issue for outbound deliveries that is alreadyfamiliar to most of the participants. Posting a goods issue for a cost center isusually nothing new for at least some of the participants. The main focus ofthis, and the subsequent lesson, is therefore the mapping of this stock removalprocedure in Warehouse Management.

If the two lessons are used �together�, you can join the exercises togetheras well. Both exercises then take place at the end of the second lesson. Thisprocedure is advisable in courses with participants who are already familiarwith Inventory Management.

Business ExampleFor test purposes, the �Research and Development� department needs a fewpieces of a material that has been put away. In Inventory Management, agoods issue is posted to the department�s cost center.



Withdrawal for Cost Center: Process FlowWhen withdrawing warehouse materials to be debited to a cost center, thegoods issue in Inventory Management is the start of the process. If the issuingstorage location is linked to a warehouse number in Customizing, a transferrequirement is generated for the material quantity to be withdrawn, inaddition to the material and accounting document(s). At the same time, thisquantity is mapped as a negative quant in the interim storage area goodsissue zone.

Note: Standard SAP R/3 systems contain a preconfigured �goods issuezone for cost center� with the storage type key 911.

The material is removed from storage using a transfer order, which refersto and adopts the destination data from the transfer requirement (receivingstorage type and storage bin). Confirmation of the transfer order completesthe goods issue process. The material is now available for the departmentthat requested it.

Note: Depending on your Customizing settings, you can skipconfirmation of the transfer order. This requirement for confirmationis dependent on the storage type.



Figure 32: Withdrawal for Cost Center: Process Flow

Negative Quants in the Goods Issue ZoneA goods issue posting in Inventory Management reduces the storage locationstock of the material involved. However, the stock in the assigned warehousenumber remains unchanged until the stock removal is complete. To displaythe same total material quantities in both Inventory Management andWarehouse Management, the system generates a negative interim storagearea stock when the goods issue is posted. This is then subtracted from thewarehouse number total stock during the stock removal operation for thematerial to remove from storage.

Note: This procedure is comparable to the goods receipt process withinbound deliveries. Here, the system uses negative interim storagetype stocks to note the fact that quantities have been received in thewarehouse number that have not yet been posted at storage locationlevel. The subsequent goods receipt posting for the inbound deliverybalances the negative stock.



If you use this lesson in the context of the course, you can remind theparticipants of the contents of lesson �Putaway and Goods Receipt Posting�.

Figure 33: Negative Quant

The �putaway� of the requested quantity into the Goods Issue Zone interimstorage area balances the positive and negative quants. Stock removal iscomplete.



Figure 34: Stock Removal After Withdrawal Posting

A material withdrawal for a work order for production is mapped in the sameway, as long as you are not using theWM-PP interface. This means that agoods issue is posted for the work order in Inventory Management (in thestandard system, with movement type 261). This posting generates negativequants in the goods issue zone for work orders (in the standard system,interim storage area 914), and a transfer requirement for all componentsrequiring removal from storage as defined in the order. Confirmation of thetransfer order also completes this process.

Note: Using the preconfigured interface between Production Planningand Warehouse Management (WM-PP interface) allows you toperform staging targeted at specific storage bins, using productionsupply areas from shop floor control. Here, stock removal is controlledusing control cycles. Control cycles are master data in WarehouseManagement in which you define which material is staged, in whichstorage bin, and in which form.

Using the WM-PP interface, which is covered in course SCM630, is basicallydependent on one indicator PP Interface Active that you can set for eachwarehouse number. Staging is usually requested using separate transactions(LP10, LP11, and LP12). This type of request for staging generates a transfer



requirement, for which you create a transfer order for a stock removal and/orstock transfer into a separate interim storage area. The goods issue postingfor the work order reduces the stocks in the storage location, but also in theinterim storage area and therefore in the warehouse number.

Demonstration: Withdrawals for Cost Centers from aWarehouse-Managed Storage Location

PurposeThe aim of this demonstration is to show how the system maps goods issuepostings, which take place at the start of a stock removal process, if the issuingstorage location is warehouse-managed.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Display the stocks of material LES02-00 in warehouse number 140 and

storage location 0140.

Choose Logistics Execution→ Internal Warehouse Processes → Bins and Stock→ Display → Total Stock per Material (Warehouse Management).


Go fromWarehouse Management to Inventory Management by choosingMM Stocks.

2. Post the goods issue for cost center 1000 for ten pieces of materialLES02-00.

Choose Logistics Execution → Outbound Process → Goods Issue for OtherTransactions → Enter Goods Issue.

Input values:



Movement type 201

Plant 1200

Storage Location 0140

Confirm your entries with Enter. On the folllowing screen, enter costcenter 1000, material number LES02-00, and in the Quantity field enterthe required number of pieces. Save your input. The system displays thematerial document number in the status line.

3. Check the stock overview for the material in Warehouse Management.


In the interim storage area 911 you can see a negative stock for thewithdrawal quantity. The total quantity of the material in the warehousenumber, displayed under the material description, has been reduced bythe relevant number of pieces. The storage location stock matches thewarehouse number stock.

Hint: At this point in the demonstration you can call up thestorage location stocks again to check them.

The negative quant is in a dynamic storage bin with a coordinateconstructed using the number of the cost center.

4. Use the dynamic storage bin to go to the quant data record.

Select the plant/storage location stock line and choose Bin Stocks. Placethe cursor on the bin coordinate and press the left mouse button. Inthe Stock per Storage Bin area, select the material line and choose Quant.Choose Additional Data to display the number of the transfer requirement.

5. In an optional demonstration step, display the transfer requirement, orsearch for the requirement using one of the transfer requirement lists:

Choose Logistics Execution → Internal Warehouse Processes → TransferRequirement → Display → Single.

Enter your warehouse number 140 and the transfer requirement number.Confirm with Enter.

Alternative: Logistics Execution → Internal Warehouse Processes → TransferRequirement → Display → For Material.



To display the transfer requirement, place the cursor on the documentnumber and press the left mouse button.

Hint: In the Warehouse Management System, stock removalfor cost centers is controlled using movement type 201. As inmany other cases, the key here is the same as the InventoryManagement movement type. In this context, point out thattransfer requirements are only generated by postings using amovement type from Inventory Management that is linked to amovement type in Warehouse Management.



135 Exercise 12: Withdrawals for Cost CentersExercise Duration: 15 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Post a goods issue for a cost center, and explain the effects of this posting

in Warehouse Management

Business ExampleFor test purposes, the �Research and Development� department needs a fewpieces of a material that has been put away. In Inventory Management, agoods issue is posted to the department�s cost center.



TaskPost a goods issue for the cost center. Check your stocks in WarehouseManagement, and check the transfer requirement that the system generatedfor the subsequent stock removal.

1. Display the stock for your material LES02-## in your warehouse number1xx (140 + group number ##) and your storage location 01xx (0140 +group number ##).

2. Post the goods issue for cost center 1000 for 10 pieces of your materialLES02-##. The material should be withdrawn from storage location 01xx(0140 + group number ##).

3. Check the stock overview for your material in both WarehouseManagement and Inventory Management.

4. Display the transfer requirement generated by the goods issue posting.



Solution 12: Withdrawals for Cost CentersTaskPost a goods issue for the cost center. Check your stocks in WarehouseManagement, and check the transfer requirement that the system generatedfor the subsequent stock removal.

1. Display the stock for your material LES02-## in your warehouse number1xx (140 + group number ##) and your storage location 01xx (0140 +group number ##).


Enter your warehouse number 1xx (140 + group number ##) andmaterial number LES02-## and confirm with Enter.

b) Go from this overview to Inventory Management by choosingMMStocks.

2. Post the goods issue for cost center 1000 for 10 pieces of your materialLES02-##. The material should be withdrawn from storage location 01xx(0140 + group number ##).

a) Choose Logistics Execution → Outbound Process → Goods Issue forOther Transactions → Enter Goods Issue.

b) Input values:

Movement type 201

Plant 1200

Storage Location 01xx (0140 + group number ##)

c) Confirm your entries with Enter. On the folllowing screen, enterCost Center 1000, material number LES02-##, and in the Quantityfield, enter the required number of pieces. Confirm your entrieswith Enter.

d) Post the goods issue by saving your input. The system shows thematerial document number in the status line.




3. Check the stock overview for your material in both WarehouseManagement and Inventory Management.


b) In the interim storage area 911 you can see a negative stock for thewithdrawal quantity (10 pieces).

c) To check the storage location stocks, chooseMM Stocks.

4. Display the transfer requirement generated by the goods issue posting.

a) Choose Logistics Execution → Internal Warehouse Processes → TransferRequirement → Display → For Material and confirm with Enter.

b) If the system does not propose values, enter your warehousenumber 1xx (140 + group number ##) and material numberLES02-## and confirm with Enter. To display your transferrequirement, place the cursor on the document number andleft-click.



Lesson Summary

You should now be able to:� Explain the technical posting process of a goods issue for a cost center

with subsequent stock removal� Post a goods issue for a cost center in Inventory Management� Display the transfer requirement generated by the goods issue posting� Interpret the stock overview


SCM601 Lesson: Stock Removal with Transfer Orders

Lesson:139

Stock Removal with Transfer OrdersLesson Duration: 30 minutes

Lesson OverviewA goods issue posting to a storage location that was assigned to a warehousenumber in Customizing generates a transfer requirement. In this lesson, wewill focus on stock removal using a transfer order that refers to this transferrequirement.


� Create a transfer order for a transfer requirement� Confirm the transfer order� Track the stock removal in the stock overview

This lesson forms a unit with lesson �Goods Issue Posting for Cost Center�. Itcontinues the goods issue process, which began with the withdrawal posting,with removal from storage of the requested material, and completes theprocess with confirmation of the transfer order. The procedure described hereis an example for all goods issues For Other Transactions, as in the LogisticsExecution menu. These other transactions are all stock removals that refer to atransfer requirement. Usually, this process begins with a goods issue postingin Inventory Management. If you use the WM-PP interface, the systemgenerates the transfer requirement on the basis of the material request, directlyfrom the work order, or using your own transactions. The consumptionposting for the components removed from storage completes the process.

Business ExampleMaterial requested for test purposes is removed from storage in the shelfstorage area, and is made available to the department that submitted therequest.

Stock Removal with Transfer Orders: ProcessThe transfer order for removing the requested material from storage is createdwith reference to the transfer requirement. The goods issue posting forthe cost center has also generated a negative stock in the interim storage



area goods issue zone. This ensures that both the storage location and thewarehouse number always show the same material stock. The �putaway� ofthe requested material into the goods issue zone balances the negative stock.The goods issue process is complete.

Figure 35: Stock Removal with Transfer Orders: Process

Transfer Order for Stock RemovalWhen you create a transfer order, the system checks master data andCustomizing tables to find suitable storage bin stocks for removal fromstorage.



Figure 36: Transfer Order for Stock Removal

The system first looks for an issuing storage type (source storage type). InCustomizing for Warehouse Management, you define a default storage typesearch sequence for stock removals for each warehouse number. The systemworks through all storage types in the sequence in which it should search forstock that can be removed from storage. You can use indicators to influenceaccess to the table that controls the search sequence. For example, you can usean indicator in the material master to define that a certain material (storagetype indicator) is specifically removed from the rack storage area.

Note: Both the stock type and whether the stock is special stock candefine the storage type search. The prerequisite is that a correspondingentry is made in the table for the storage type search sequence.

As well as the material, stock type, and whether the stock is special stock thatwere mentioned above, other factors can influence the storage type search.For example, dangerous goods classes, storage location, and movement type.

In Customizing for the issuing storage type, the system finds the stockremoval strategy that specifies how the issuing storage bin (source storage bin)should be determined in that storage type. The �first-in-first-out� (FIFO)strategy is often used, which means that the oldest quant is always removedfrom stock first. In the standard system however, there are other strategiesavailable for storage bin determination.

Note: You can only assign one stock removal strategy to each storagetype.



In the strategy FIFO, the system bases its actions on the goods receipt date inthe quant. In Customizing for Warehouse Management, you can set the goodsreceipt date as today�s date, the material document date, or the posting date.

Caution: In connection with the FIFO stock removal strategy, youshould note that during putaway, additions to existing stock alwayscause the system to update the goods receipt date of the oldest quant.The goods receipt date of the quant added to the existing stock istherefore lost.

The topic of �additions to existing stock� is discussed in the lesson �StorageBins and Quants�.

If there are picking areas in the issuing storage type, you can use these tooptimize the stock removal.

� You print out a cross-transfer-order picking list that contains the materialquantities to be removed from storage. These quantities are sorted bypicking area.

� The transfer order is divided up according to picking areas (transferorder split). This means that more than one transfer order is created foreach reference document.

In the transfer order, you can tell the system which bin stocks it should removefrom storage. To do this, you must create the document in the �foreground�.In each stock removal transfer order, you have access to a list of all stocks ofthe relevant material that can be removed from storage. From this list, youcan select specific individual quants.

Demonstration: Stock Removal with Transfer Orders

PurposeThe main focus is on the transfer order for the stock removal. Participantsshould also understand the way in which a goods issue is mapped For OtherTransactions.



System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions:


If this lesson is used on its own, you should prepare by posting a goods issuefor cost center 1000 for ten pieces of material LES02-00 in plant 1200, storagelocation 0140.

Choose Logistics Execution → Outbound Process → Goods Issue for OtherTransactions → Enter Goods Issue.

On the initial screen of the transaction, enter movement type 201, plant 1200,and storage location 0140. On the data entry screen, enter the cost center,material number, and material quantity (see above). To post the goods receipt,save your entries.

1. Call up the stock overview for material LES02-00 in warehouse number140 in display mode.



In the interim storage area 911 you can see a negative stock, which is theresult of a goods issue posting for the cost center.

2. Find the transfer requirement for this negative quant. Use one of thethree lists.

Hint: These are the transactions LB10, LB11, and LB13. Eachtransaction has a different central selection criteria.

Choose Outbound Process→ Goods Issue for Other Transactions→ Picking→Create Transfer Order → For Material.

The system usually proposes the data you have already used. If this isnot the case, enter at least the warehouse number and material number.Confirm with Enter.



3. If you are not using this lesson in the context of the course or of lesson�Goods Issue Posting for Cost Center�, display the transfer requirement.

Place the cursor on the document number and press the left mousebutton.

Hint: The receiving storage bin in storage type 911 is a dynamicbin. It is created by the system with reference to a specifictransaction, and only exists for the duration of that transaction.In this case, the bin coordinate is the number of the cost center.Usually, the coordinate is formed from the number of thedocument that causes the movement.

4. Create a transfer order for the transfer requirement in the foreground.

Select your transfer requirement and choose Confirmation in Foreground.Explain the initial screen.

Hint: At this point you should briefly discuss storage typedetermination. In the Storage Type Search area, you can see aselection from the Customizing table for the storage type searchsequence. In the demonstration examples, the system alwayssearches in storage type 005 (Fixed bin storage) for stock that canbe removed from storage. If it does not find anything there, thesystem makes a second attempt in storage type 002 (Shelf storagearea) and - if this attempt also fails - then a final attempt in storagetype 004 (Bulk storage). If none of these three storage typescontain a quant that can be removed from storage, the systemissues an error message that the transfer order cannot be created.

Choose Stock Removal Background : The system proposes the issuingstorage type, issuing storage area, and the issuing storage bin.

Hint: At this point, you could interrupt the demonstration inorder to show how to access bin stocks directly from the transferorder. Go back to the transfer requirement and repeat step 4, but

instead of choosing Stock Removal Background, choose Stocks :The system displays all stocks of the material that can be removedfrom storage. You enter the quantity required in the SelectedQuantity column. Choose Stock Removal Background again.



Save your data.

5. Call up the Warehouse Management stock overview again for materialLES02-00.


The transfer order quantity is shown as both a stock to remove from storagein the rack storage area, and as a stock to put away in the goods issue zone.

6. Display the transfer order.

Choose Logistics Execution → Outbound Process → Goods Issue for OtherTransactions → Picking → Display Transfer Order → Single Document.


Choose Logistics Execution → Outbound Process → Goods Issue for OtherTransactions → Picking → Confirm Transfer Order → Single Document→In One Step.

In the Foreground/Backgrnd field, choose Background and confirm withEnter.

8. Now check the stock overview again.



143Creating a Transfer Order for a Transfer RequirementPrerequisitesA transfer requirement is usually generated as a result of an inventorymanagement posting, such as a goods issue posting for a cost center.

Procedure1. In one of the transfer requirement lists, find the transfer requirement

for which you want to create a transfer order. You have a choice oftransactions for selection by storage type, material, or requirement type.

Hint: The requirement type specifies the cause of the materialmovement, such as a withdrawal for a cost center (requirementtype K).

Choose Logistics Execution → Outbound Process → Goods Issue for OtherTransactions → Picking → Create Transfer Order → For Storage Type/ForMaterial/For Requirement. Enter values for your selection and confirmwith Enter.

2. If you want to display a transfer requirement shown in one of the lists,position the cursor on the document number and left-click.

3. To create a transfer order, select the relevant transfer requirement andchoose either Confirmation in Foreground or Confirmation in Background.

Hint: In foreground processing, you create the transfer orderinteractively. You can therefore make changes. In backgroundprocessing, the system generates the transfer order in thebackground, and displays the document number in the status line.

4. Confirm the transfer order. If you want to enter differences, you shouldchoose foreground processing (choose Foreground/Backgrnd on the initialscreen). Choose Logistics Execution → Outbound Process → Goods Issue forOther Transactions → Picking → Confirm Transfer Order → Single Document→ In One Step.



145 Exercise 13: Stock Removal with TransferOrdersExercise Duration: 15 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a transfer order for a transfer requirement in order to remove

material from storage

Business ExampleFor test purposes, the �Research and Development� department requested afew pieces of a material that has been put away. In Inventory Management,the goods issue was posted to the department�s cost center. The materialmust now be removed from storage.




If you use this lesson on its own, you should prepare by posting a goods issuefor cost center 1000 for all required groups. To do this, use transaction codeMB1A. There is a short description of this posting at the beginning of thesystem demonstration description in the lesson. Remember that each groupworks with its own material number LES02-## and its own storage location01## (0140 + group number ##).

TaskUse a transfer order to remove the requested material from storage.




1. Display the stock overview for material LES02-## in your warehousenumber 1xx (140 + group number ##).

2. Find the transfer requirement that was generated by the goods issueposting to the cost center. Use the transfer requirement list for yourmaterial LES02-##.

3. From the transfer requirement list, create a transfer order for yourtransfer requirement in the foreground. From which storage type doesthe system first attempt to remove the material from storage?

4. Call up the stock overview again for your material LES02-##.





Solution 13: Stock Removal with TransferOrdersTaskUse a transfer order to remove the requested material from storage.

1. Display the stock overview for material LES02-## in your warehousenumber 1xx (140 + group number ##).


Enter your warehouse number 1xx (140 + group number) andmaterial number LES02-## and confirm with Enter.

b) In interim storage area 911 you can see a negative stock. This is thedirect result of the goods issue posting to the cost center.

2. Find the transfer requirement that was generated by the goods issueposting to the cost center. Use the transfer requirement list for yourmaterial LES02-##.

a) Choose Logistics Execution → Outbound Process → Goods Issue forOther Transactions→ Picking → Create Transfer Order → For Material.

If the system does not propose the values you need, enter yourwarehouse number and material number, and confirm with Enter.

b) If you want to look at the transfer requirement, position the cursoron the document number and left-click. Go back to the list ofTransfer Requirements for Material.




3. From the transfer requirement list, create a transfer order for yourtransfer requirement in the foreground. From which storage type doesthe system first attempt to remove the material from storage?

a) Select your transfer requirement in the list and choose Confirmationin Foreground.

b) In the Storage Type Search area, you can see a selection from theCustomizing table for the storage type search sequence. The systemwill search first in storage type 005 (fixed bin storage) for stock ofmaterial LES02-## that can be removed from storage.

c) Choose Stock Removal Background or Stock Removal

Foreground. .d) Save your data to create the transfer order.

4. Call up the stock overview again for your material LES02-##.


b) The transfer order quantity is shown as both a stock to remove fromstorage in the fixed bin storage area, and as a stock to put away in thegoods issue zone.


a) Choose Logistics Execution → Outbound Process → Goods Issue forOther Transactions → Picking → Confirm Transfer Order → SingleDocument → In One Step.

b) You can choose again between foreground and backgroundprocessing. Confirmation in the foreground is usually onlynecessary if differences have occurred.



b) The negative stock in the goods issue zone is balanced.



Lesson Summary

You should now be able to:� Create a transfer order for a transfer requirement� Confirm the transfer order� Track the stock removal in the stock overview



Lesson:149

Outbound Deliveries for Sales OrdersLesson Duration: 45 minutes

Lesson OverviewIn this lesson you will learn about the connection between Logistics Executionand Sales and Distribution. Particularly important is the outbound delivery(the document), which is the central focus of this goods issue process.


� Describe the goods issue process with outbound deliveries� Create a sales order� Check the scheduling of the shipping process� Create an outbound delivery for a sales order� Call up and interpret document data that is relevant for the stock removal

This lesson introduces order processing for all participants that have noprevious experience of Sales and Distribution. One of the main points in thelesson is scheduling the shipping process in the sales order and outbounddelivery. Participants will also learn how the system determines whetherpicking includes Warehouse Management.

Business ExampleCustomers from the model company will receive deliveries of stock materials.Warehouse Management should be used to pick the goods.

Goods Issue Process with Outbound Deliveries: ProcessFlowThe following overview outlines the technical postings involved in anoutbound delivery process involving Warehouse Management.


SCM601 Lesson: Outbound Deliveries for Sales Orders

Figure 37: Goods Issue Process with Outbound Deliveries: Process Flow

Sales orders are created and monitored in SAP R/3 in Sales and Distribution(SD). The standard system contains a selection of sales document types,which are mainly used to summarize orders according to their function. Youmake essential Customizing settings for controlling SD processes in the salesdocument type.

Note: There are some preconfigured settings, such as a �standardorder� for normal SD processing and a �rush order� for urgent orders.

When you create a sales order, the shipping process is scheduled accordingto the Customizing settings. This means that time limits are calculated forcertain steps in the process (for example, loading the goods). This calculationis made for each document item.

Note: Shipment scheduling is dependent on the sales document typeselected by the sales employee.

The central document in Logistics Execution, the outbound delivery, iscreated with reference to the order. You have the choice between variousforms of collective processing. The outbound delivery adopts the main data



from the order, including the planned dates for the follow-on process. In theoutbound delivery, the system also determines a picking location for eachdocument item. If the system determines that this storage location has beenassigned to a warehouse number in Customizing, it displays this warehousenumber in the outbound delivery. The system also assigns an overall pickingstatus and a stock removal status. The user can then see immediately whetherthe subsequent stock removal must be performed using a transfer order.

It is possible that participants might now ask about Lean WarehouseManagement, or about the relationship of the old SD pick list to LeanWM. The lesson �Stock Removal and Goods Issue Posting� offers you anopportunity to discuss this topic.

You create the transfer order for the stock removal with reference to theoutbound delivery. The master data and Customizing settings for WarehouseManagement define which storage bin stocks are picked. The goods issue canonly be posted in Inventory Management once the stock removal is complete.The reference document is the outbound delivery again.

Note: Status management in the document prevents the goods issuefrom being posted before picking has been completed. It is onlypossible to post the goods issue once both statuses are set to C.

Packing of the goods can also be mapped in the outbound delivery. If you areusing the Warehouse Management System, you can choose to pack the pickedmaterial in connection with confirmation of the transfer order (pick and pack).

You activate the �pick and pack� function in Customizing for WarehouseManagement.

Packing is discussed in a separate lesson.

Shipment Scheduling in Sales OrdersWhen you create a sales order, the system first determines a requesteddelivery date and displays it in the document overview. The system calculatesthis requested delivery date based on the lead time defined in Customizingfor the sales document type. The system adds this number of days to thecurrent date.



The system can take account of a factory calendar.

Caution: The first time you create a standard order, the lead timedefined in Customizing (seven days) is added to the current datewithout consideration of a factory calendar. The second time youcreate a date order, the system does not include the weekend, whichmeans that the requested delivery date is nine days later. The reasonfor this difference is that the system takes account of the relevantfactory calendar for the sales organization. Usually, only the salesdocument type is entered when you first create an order. This meansthat the system cannot take account of a factory calendar, and sosimply adds �today�s date + lead time in days according to the salesdocument type�. If a sales organization is entered on the initial screen,the system immediately takes account of the factory calendar whencalculating the requested delivery date.

After you enter the sold-to party�s customer number, the ship-to party�scustomer number (where these are different), and the material numbers, thesystem performs shipping point determination and route determinationfor each document item. Shipping points are organizational units withinLogistics Execution.

Note: When you create an outbound delivery, you must enter ashipping point. You can only use the shipping points determinedin the order. Every outbound delivery is processed by one shippingpoint. If different shipping points were found for individual items inthe order, a delivery split takes place. The system creates the relevantnumber of outbound deliveries for the order.

Sometimes, participants change the shipping condition for their customerT-S11B## in lesson �Material Master and Customer Master�. In the salesorder, which will be created for the exercises in this lesson, the system thenfinds a different shipping point than the one specified for the group X0##.When they create the outbound delivery for the order, the system issues anerror log Delivery split due to different shipping point. On the initial screen forVL01N, you can achieve the same result by deliberately selecting a different



shipping point than X000 determined in the order. If the majority of theparticipants have less previous experience, you could demonstrate this error�as a precautionary measure�.

Routes are master data in Logistics Execution. A route describes a distancefrom A to B. The data record can contain information on the service provider,the distribution channel, and the transit time.

Note: You can make specific entries for the point of departure and thedestination (for example, �Hamburg - Munich�). However, you canalso enter a more vague description (for example, �East Coast USA�).

The shipping point and route are the two sources for the time limits that thesystem uses for shipment scheduling. The more exact you want scheduling tobe, the more detail you need to enter for the routes. For example, this wouldmean that the route �Hamburg - Munich� could have separate routes forshipping by post, by truck, and by plane.

Note: You can also use the route as a selection criteria for collectiveprocessing of orders due for delivery.

Figure 38: Determining the Shipping Point

The three factors that define shipping point determination are the shippingcondition valid for the order, the delivering plant, and the loading group ofthe material in the delivering plant. You can set the shipping condition anddelivering plant as default values in the customer master record. However,you can also make manual entries and changes in the order. A loading group



groups together materials according to their loading attributes. Shippingconditions and loading groups are freely definable in Customizing, so thatthey can be easily assigned at master data level. You can also enter a deliveringplant in the material master as a default value (first Sales and Distributionview). The third possible source for the delivering plant value in the order is acustomer-material information record, which contains specific agreements asthe master data for Sales and Distribution.

Note: If this type of customer-material information record exists, ittakes priority during plant determination. The system next checks theship-to party�s customer master, and then the material master wherenecessary. If no default value stored anywhere, the user has to enterthe delivering plant manually for the item.

In this context, you should emphasize that the shipping condition anddelivering plant in the order are default values, and that the user can thereforemake changes where required.

The system determines the route using specific data from the customer master,material master, and shipping point. Route determination therefore dependson a successful shipping point determination.

Figure 39: Determining the Route



The system adopts the departure zone for the outbound delivery from theshipping point. As in shipping point determination, the shipping conditioncomes from the customer master of the ordering party. You can change thismanually in the order.

Note: If you change the shipping condition in the order, the systemrepeats shipping point determination and route determination. Youcan also manually assign a route in the order.

You first define the material�s transportation group in Customizing. You thenassign the transportation group to the material master in the Sales: Gen./PlantData view. Transportation groups group together materials according to theirtransportation attributes (for example, on pallets, in containers).

The system searches for the transportation zone, in other words the regionaldestination of the outbound delivery, in the customer master for the ship-toparty. You define transportation zones in Customizing in the same way astransportation groups.

Customer-specific and material-specific elements are included in bothshipping point determination and in route determination. The more exact thedifferentiation required, the more groupings must be created in Customizing.

On the basis of values from the shipping point and route in the order, thesystem proposes dates for the following shipping activities:

� Staging (picking, packing, creating shipping documents)� Loading� Transportation planning (booking freight space, and so on)� Goods issue

The system adopts the pick/pack time from the shipping point in order tocalculate the material availability date. For the loading date, the systemadopts the loading time. The route is the source for the transportation leadtime and the transit time that are needed to calculate the transportationplanning date and/or goods issue date.



Figure 40: Shipment Scheduling

Starting from the requested delivery date, the system calculates the fourplanned dates by subtracting the time limits adopted from the shipping pointand the route. The transit time is subtracted from the requested deliverydate in order to determine the goods issue date. The goods issue dateminus the loading time gives us the loading date. The pick/pack time andtransportation lead time are subtracted from the loading date to calculate thematerial availability date and the transportation planning date (backwardsscheduling).

Note: The latest creation date for the outbound delivery date is eitherthe material availability date or the transportation planning date,depending which date is earlier.

Dates calculated in this way are only guidelines. They enable us to monitorshipping processing, but can also be used as selection criteria for collectiveprocessing of documents. Documents that had to be processed at the sametime in a specific processing step can be grouped together into a collectiveprocessing run. This option is particularly useful for regularly recurringbackground processing using jobs. It is possible to make Customizing settingsfor scheduling to the hour. To do this, you define shifts in advance andsummarize these into working time periods. You then assign the time periodsto a shipping point and/or route legs.



When you create the outbound delivery, these dates are copied to thedocument header, because the shipping point and route are consistent foreach outbound delivery.

Note: During outbound delivery creation, the shipping point androute are split criteria. If the system determines more than oneshipping point or route in the order, then the relevant number ofoutbound deliveries are created (see above).

If the system has a problem during shipment scheduling when calculatingbackwards from the requested delivery date, for example, because there is noavailable material stock, then it tries to propose a realistic staging date (earliestmaterial availability). It then adds four time limits to this that divide up theshipping process, in order to reach a new delivery date (forwards scheduling).

In Customizing, for each sales document type you can specify that thesystem only performs backwards scheduling. This means that backlogs inprocurement can be found more quickly and are more visible.

For certain transactions, it is advisable to avoid shipment scheduling. Thesales document type �rush order�, delivered with the standard system, doesnot require scheduling since all required steps should be performed as quicklyas possible one after the other.

Item Categories in the Outbound DeliveryAs for nearly all documents in Logistics in SAP R/3, the outbound deliveryalso has a header level and an item level. Data at header level is always validfor the entire document (for example, ship-to party, shipping point, route,and dates for shipping processing). Delivery items are usually mapped forthe material quantities ordered by the customer. However, there can also bedocument items for packaging materials, or texts.

The item category shows you the type of the delivery item. You definedelivery item categories in Customizing for Shipping. They are flagged withthree-character or four-character keys (for example, TAN for a standard itemor TATX for a text item). When you create an outbound delivery for a salesorder, the system copies the relevant key for the item category from the orderinto the outbound delivery. Delivery-relevant order item categories andtheir corresponding delivery item categories must also have the same key. If



there are non-order-dependent items in the outbound delivery (such as forpackaging material), or if the outbound delivery is created without referenceto a sales order, the system must perform an item category determination.

Note: This determination is also based on Customizing settings. Thevendor types and item category groups for the materials to deliver arelinked in a table containing delivery item categories.

The copying of item categories from the sales document, and item categorydetermination in the outbound delivery, are covered in detail in courseSCM610. You make the required Customizing settings under LogisticsExecution → Shipping → Deliveries → Define Item Categories for Deliveries andDefine Item Categories for Deliveries. You must also take account of the copycontrol sales document - delivery.

In Customizing for the delivery item category, you specify if and how thesystem should check the quantities for a delivery item (for example, for over-and underdeliveries) to see whether the item is relevant for picking andwhether it can or must be packed.

If necessary, during the demonstration below, show copying the item categorykey from the sales order into the outbound delivery. This is item categoryTAN (standard item).

Demonstration: Creating a Sales Order

PurposeThe main aim of this demonstration is to call up the results of shipmentscheduling in the sales order. You should give a brief overview of the sourcesof this data.




1. Create a sales order for sold-to party T-S11B00 for five pieces of materialLES04-00. The customer manages this order under the purchase ordernumber SCM601-00.

Choose Sales and Distribution → Sales → Order → Create.

Use order type OR (standard order). Point out that the system hasalready determined the requested delivery date before you enter thecustomer and material data.

Enter the customer number T-S11B00, purchase order numberSCM601-00, and the material number LES04-00 with an order quantity5. Confirm your entries with Enter.

2. Check the shipping point determination and route determination forthe document item:

Select the item and from the menu choose Goto → Item → Shipping, inorder to display the delivering plant, shipping point, and route for theitem. You should see the following data:

(Delivering) Plant 1200

Shipping Point X000

Route R00125

3. Check the results of shipment scheduling for the document item.

Go to the Schedule Lines tab page, and choose Shipping (Details). Under therequested delivery date, the system lists the four key dates. Where dailyscheduling has occurred, the material availability date and transportationplanning date are the same. The displayed date is the outbound deliverycreation date.

4. From the order, go directly to the customer master, the source for thedelivering plant, shipping condition, and transportation zone.

Choose Display Sold-To Party . The customer master record appears.Go to the Sales Area Data and the Shipping tab page. You should see thefollowing data:

Shipping conditions 50


Transportation zone D000070000



Caution: If you do not use this lesson in the context of the course,the Delivering Plant field in the customer master is blank! Thesystem has copied the plant in the order from the material masterrecord.

5. Return to the order and display the Shipping Condition field in thedocument header.

Choose Goto → Header → Shipping.

At this point you could also change the shipping condition manually.

6. Display the loading group and transportation group for materialLES04-00 in the material master. Go directly from the order.

Select the item and on the overview screen choose Environment → DisplayMaterial. Go to the Sales General/Plant tab page. You should see thefollowing data:

Transportation group 0001

Loading group 0002

To create the order, save your entries.

Hint: You can only display the issuing zone of the shipping pointin Customizing.

Demonstration: Creating Outbound Deliveries for Orders

PurposeCompare the data from the order in the first exercise with the data in theoutbound delivery. Briefly outline the document structure.




1. Try to create an outbound delivery with today�s date.

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery → Outbound Delivery → Create → Single Document → WithReference to Sales Order.

Check whether the system proposes the correct shipping point X000and the correct order number. Confirm the data with Enter. The systemdisplays an error log: No schedule lines due for delivery up to selected date.

Hint: This means that shipment scheduling in the order resultedin a later delivery creation date. Selections with the current datetherefore fail, because the system thinks the time for deliverycreation is too early.

2. In the order, change the selection date to the material availability dateand confirm your entries. The overview screen appears for you to createthe outbound delivery.

3. Check the shipping deadlines in the outbound delivery:

On the overview screen, choose Goto → Header → Processing. To createthe outbound delivery, save the data.



157 Exercise 14: Outbound Deliveries for SalesOrdersExercise Duration: 20 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create and deliver an order

Business ExampleYour customer, PC-World Stuttgart KG, orders five bases LES04-##.



TaskCreate an order, and then create an outbound delivery for the order.

1. Create a standard order for ordering party T-S11B## for five pieces ofmaterial LES04-##. The customer manages this order under the purchaseorder number SCM601-##.

2. Check the shipping point determination and route determination forthe document item.

3. Display the shipment scheduling for the document item (materialLES04-##).

4. Call up your order in change mode. From the order, go to the customermaster record. This is the source for the delivering plant, shippingcondition, and transportation zone.

5. From the order, display the loading group and transportation group formaterial LES04-## in the material master record.




6. Try to create an outbound delivery with reference to your order. Usetoday�s date as the selection date. Your shipping point has the key X0##.What happens?

7. If you cannot remember the material availability date from your order,call up the order in display mode to find the date.

8. Try to create the outbound delivery for your order again. To do this,change the selection date to the material availability date in the order.Confirm your entry.

9. Check the shipping deadlines in the outbound delivery and save yourdata.



Solution 14: Outbound Deliveries for SalesOrdersTaskCreate an order, and then create an outbound delivery for the order.

1. Create a standard order for ordering party T-S11B## for five pieces ofmaterial LES04-##. The customer manages this order under the purchaseorder number SCM601-##.

a) Choose Logistics → Sales and Distribution → Sales → Order → Create.b) Select order type OR (Standard Order) and confirm your entries

with Enter.

Hint: You do not need to enter data in any other fields. Inthe next step, the system will determine the sales area datafrom the customer master record.

c) Enter the following data, then confirm by choosing Enter.

Sold-to party T-S11B##

PO Number SCM601-##

Material LES04-##

Order quantity 5




2. Check the shipping point determination and route determination forthe document item.

a) Select the item and choose Goto → Item → Shipping.b) You should see the following data:


Shipping Point X0##

Route R00125

Caution: Make sure that the system uses shipping pointX0##. If the system has found a different shipping point,check the shipping condition in the document header andchange this where necessary to your group-specific shippingcondition (50 + group number ##). (Choose Goto → Header→ Shipping).

3. Display the shipment scheduling for the document item (materialLES04-##).

a) Select the item and choose Goto → Item → Schedule Lines. ChooseShipping (Details).

b) Under the requested delivery date, the system displays the fourkey dates:

� Goods issue date� Loading date� Material availability date� Transportation planning date

To create the order, return to the overview screen and save yourentries. The document number is displayed in the status line.




4. Call up your order in change mode. From the order, go to the customermaster record. This is the source for the delivering plant, shippingcondition, and transportation zone.

a) Choose Sales and Distribution → Sales → Order → Change.

If it does not appear as a default, enter the order number andconfirm your entry with Enter. Choose Display Sold-To Party toreturn to the customer master record.

b) Choose Sales Area Data.c) Choose the Shipping tab page. You should see the following data:

Shipping conditions Group-specific key (50 + groupnumber ##)


Transportation zone D000070000

Hint: If the Delivering Plant field in your customer masterrecord is empty, the system has used the plant from thematerial master in the Sales: Sales Organization 1 view.

Go back to the order.

5. From the order, display the loading group and transportation group formaterial LES04-## in the material master record.

a) Select the document item for material LES04-## and chooseEnvironment → Display Material.

b) Go to the Sales Gen./Plant tab page. You should see the followingdata:

Transportation group 0001

Loading group 0002

Go back to the order.




6. Try to create an outbound delivery with reference to your order. Usetoday�s date as the selection date. Your shipping point has the key X0##.What happens?

a) Choose Logistics Execution → Outbound Process → Goods Issue forOutbound Delivery → Outbound Delivery → Create → Single Document→ With Reference to Sales Order.

b) Enter your shipping point X0## and your order number. Confirmyour entries with Enter.

Hint: The system usually proposes this data.

c) You receive an error log: No schedule lines due for delivery up to selecteddate. The status line shows the message, The order cannot be delivered.

7. If you cannot remember the material availability date from your order,call up the order in display mode to find the date.

a) Choose Sales and Distribution → Sales → Order → Display.b) Select the document item and choose Goto → Item → Schedule Lines.

On the Schedule Lines tab page, choose Shipping.

8. Try to create the outbound delivery for your order again. To do this,change the selection date to the material availability date in the order.Confirm your entry.

a) Choose Logistics Execution → Outbound Process → Goods Issue forOutbound Delivery → Outbound Delivery → Create → Single Document→ With Reference to Sales Order.

b) Use today�s date plus one week as the selection date.

Hint: You can call up a calendar using the input help forthe Selection Date field.

9. Check the shipping deadlines in the outbound delivery and save yourdata.

a) Choose Goto → Header → Processing.b) The shipping data is now valid for the entire document.



Lesson Summary

You should now be able to:� Describe the goods issue process with outbound deliveries� Create a sales order� Check the scheduling of the shipping process� Create an outbound delivery for a sales order� Call up and interpret document data that is relevant for the stock removal



Lesson:163

Stock Removal and Goods Issue PostingLesson Duration: 30 minutes

Lesson OverviewIf you are using theWarehouse Management System, picking for the outbounddelivery is always performed using a transfer order. The goods issue postingin Inventory Management completes the process.


� Create and confirm a transfer order for an outbound delivery� Post the goods issue for an outbound delivery� Use the outbound delivery monitor� Name the options available for collective processing and automated

processing

This lesson forms a unit with lesson �Outbound Delivery for Sales Order�.The participants should be introduced to the process of stock removal usingtransfer orders. This lesson also compares the Warehouse ManagementSystem with Lean Warehouse Management. If the lessons from unit �GoodsIssue Processes� are used in the context of the course, in this lesson you canfinish off the unit by comparing both basic forms of mapping goods issueprocesses in SAP R/3.

Business ExampleGoods to be delivered are removed from storage and are placed in the goodsissue zone. Afterwards, the goods issue is posted in Inventory Management.

Stock Removal for Outbound DeliveriesAt the start of the goods issue process using outbound deliveries, there isusually an order or sales document that is created in the Sales and Distributionarea menu. The outbound delivery, which is central to this process, is createdwith reference to the order. The subsequent stock removal of the goods todeliver uses the transfer order, which in turn refers to the outbound delivery.


SCM601 Lesson: Stock Removal and Goods Issue Posting

Completion of the picking transaction is reported to the system when thetransfer order is confirmed. Only then is it possible to post the goods issue forthe outbound delivery in Inventory Management.

Figure 41: Goods Issue Process with Outbound Deliveries: Overview

When you create the outbound delivery, the system attempts to determine apicking storage location for each document item. You make the settings forpicking location determination in Customizing for Shipping. The prerequisitefor this is that you have activated the function for the relevant delivery itemcategory. During determination, the system takes the following factors intoaccount:

� The shipping point� The delivering plant� The storage condition of the material



Figure 42: Picking Storage Location Determination

The system adopts the shipping point and delivering plant from the order.The storage condition of the material is stored in the material master in theGeneral Plant Data/Storage 1 view, and is copied into the outbound delivery.You define storage conditions in Customizing for Shipping, in order toroughly indicate the requirements for the storage of a material. They are onlyused in storage location determination.

Note: Storage location determination does not have to run for aspecific material. This allows the system to limit its search to theshipping point and delivering plant.

Storage location determination is based on rules that you define inCustomizing for Shipping and that you assign to a delivery type. TherulesMALA, RETA, andMARE are preconfigured and cannot be changedin Customizing. The rule RETA was mainly designed for the industrysolution mySAP Retail. The ruleMARE is a combination of the first tworules mentioned above. In the training system it is assigned to the outbounddelivery type LF.

Before picking, users can manually change the storage location proposed bythe system in the outbound delivery.



In connection with picking storage location determination, the system alsochecks whether the storage location determined in Customizing has beenassigned to a warehouse number. If an assignment has been made, you mustcreate a transfer order in order to remove the material from stock.

Figure 43: Determining the Warehouse Number

As well as the warehouse number, the system shows two statuses in theoutbound delivery:

� An overall status of picking� An overall status of the transfer order

Note: In Customizing, you can set the warehouse number for eachdelivery type as a split criterium at delivery creation. The deliveriesthen always �have identical warehouse numbers�.

In Customizing for Shipping, you also need to flag the warehouse numbersaffected, otherwise there will be no delivery split.



Lean Warehouse ManagementNot every company requires a Warehouse Management System, andsometimes putaway and stock removal are performed in highly-specialized,almost completely automated systems that are controlled by separatesoftware. Therefore, if you do not require storage bin management in SAPR/3, as of SAP R/3 4.0, you can use Lean Warehouse Management (LeanWM) instead of the Warehouse Management System. Here, the stocks areonly managed at storage location level. However, the transfer order is stillused for picking. In contrast to the Warehouse Management System, thetransfer order in Lean WM is not controlling. It cannot be printed as a pickingsheet, nor displayed on a mobile data entry device, nor used as a means ofcommunication between SAP R/3 and an external system such as a warehousecontrol unit. Therefore there are few Customizing settings to be made.

Note: You require only one warehouse number and two storage types(fixed bin storage and a goods issue zone). This data is only similar inform to the organizational units fromWarehouse Management; they donot have any control functions. Their only task is to enable creation oftransfer orders for outbound deliveries. The lean warehouse numberis connected to a plant-storage location combination in Customizingfor the Enterprise Structure, in the same way as a �real� warehousenumber. Using indicators that are set in Customizing for Shipping,the system can, at any time, identify a warehouse number as a leanwarehouse number.

At this point, participants often ask about the comparison between the �old�SD picking functions (pick list printing with your own message type, ormanual entry of the picked quantity in the outbound delivery) and Lean WM.It is a fact that Lean WM aims to gradually replace SD picking. SAP Note401159 discusses support for SD picking in future releases. Lean WM can alsobe used in connection with inbound deliveries.

Collective Processing of Outbound DeliveriesAs well as manual creation of individual transfer orders for a single outbounddelivery, there are various collective processing options:

� Automatic creation of transfer orders using report RLAUTA20� Group formation in the outbound delivery monitor, and subsequent

transfer order creation for the group



� Two-step picking

The prerequisite for using report RLAUTA20 is that message typeWMTA(Automatic Transfer Order) was determined in the outbound delivery.This message type is used to create a transfer order for the outbounddelivery. Depending on your settings for message determination, in certaincircumstances, such as with a combination of a certain delivery type with acertain shipping condition, the system determines message type WMTA in theoutbound delivery. The system flags the outbound delivery in the documentheader as relevant for automatic transfer order creation. If you execute reportRLAUTA20, the system selects all flagged outbound deliveries and generatestransfer orders in collective processing.

Hint: The system creates one transfer order for each outbounddelivery. In SAP R/3 Enterprise however, you can create a singletransfer order for a group of outbound deliveries.

It is important to point this fact out to the participants. Some participantsassume that collective processing always means that the transfer ordercontains several outbound deliveries. However, this type of summary onlyoccurs during two-step picking. As mentioned in the note, a new alternativeis available as of SAP R/3 Enterprise.

Figure 44: Collective Processing of Outbound Deliveries

Using the outbound delivery monitor, you can summarize outbounddeliveries according to various criteria into groups, in order to process themcollectively during the subsequent picking. The outbound delivery monitor



also enables you to perform the remaining steps of the outbound processfrom a single screen. Even without forming groups, in the outbound deliverymonitor you can always process several outbound deliveries collectively.

Note: A main advantage of the outbound delivery monitor is itsmany selection options. The monitor therefore allows you accessto specific outbound deliveries. For example, this means you cancollectively process all outbound deliveries that you want to deliver tothe customer using a specific forwarding agent.

The wave pick is a special form of collective processing during transfer ordercreation. Outbound deliveries are again summarized into groups for furtherprocessing. However, time-based criteria take priority in the selection, forexample, a joint goods issue time.

Note: In Customizing for Shipping, you specify when picking occursduring the course of a working day. You also specify the compare timefor each warehouse number, which should be used when selectingoutbound deliveries. You can use wave pick profiles to specify weightand volume limits, and also a maximum processing time for each wave.

You can make the settings for using wave picks in Customizing under LogisticsExecution→ Shipping → Picking→ Wave Picks.

Two-step picking is also a special form of collective processing of outbounddeliveries. In this procedure, stock is removed from storage in two steps; onewithdrawal and one allocation step. The prerequisite for this is that outbounddeliveries have been summarized into groups. In the withdrawal step, youcreate a single transfer order to remove all materials of the group from storage.The cumulated material quantites are placed into interim storage in a separatestorage type. In the subsequent allocation to the outbound deliveries involved,the system generates one transfer order for each outbound delivery. Thematerial is transported from the interim storage type to the goods issue zone.

In the standard system during this procedure, the system only takes accountof materials that are flagged in the material master, in the first WarehouseManagement view, as relevant for two-step picking. If you deliver relevantand non-relevant materials together, the non-relevant materials are only



withdrawn in the second step. However, you do have an option of flaggingthese materials as relevant in a separate transaction, and therefore includingthem in the two-step picking proccess.

Demonstration: Stock Removal for Outbound Deliveriesand Goods Issue Postings

PurposeIn this demonstration, show how to create a transfer order for an outbounddelivery. Make it clear that goods issue posting is only possible once the stockremoval is complete.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions:


If you are using the lesson on its own, prepare by creating and delivering asales order. Proceed as follows:

1. For ordering party T-S11B00, create a date order (order type OR) for fivepieces of material LES04-00. Choose Sales and Distribution → Sales →Order → Create.

2. Deliver this order by choosing Sales Document → Deliver.

Hint: If you receive an error log containing No schedule lines duefor the delivery up to selected date, change your selection date on theinitial screen �Create Outbound Delivery with Order Reference�(for example, today�s date + one week).



1. Search the outbound delivery monitor for an outbound delivery. Whenthe chance arises, briefly explain monitor�s range of functions.

Hint: If you use this lesson in connection with the previous lesson�Outbound Delivery for Sales Orders�, you will be using theoutbound delivery created in the relevant demonstration.

Choose Logistics → Logistics Execution → Outbound Process → Goods Issuefor Outbound Delivery → Outbound Delivery → Lists and Logs → OutboundDelivery Monitor.

Choose For Picking. On the selection screen, enter your warehousenumber 140 and choose Execute .

2. Call up the outbound delivery in display mode from the monitor. Pointout warehouse number 140 and both overall statuses. Before pickingbegins, the status is A for each.

Place the cursor on the document number and press the left mousebutton. Go to the Picking tab page.

3. Show where the outbound delivery stores the target data for theimminent stock removal:

Select the first item and choose from the menu Goto → Item → Picking.The system targets the interim storage area 916 (shipping zone deliveries)and a dynamic storage bin with the document number of the outbounddelivery as its coordinates.

4. Go back to the outbound delivey monitor and create the transfer order inthe foreground.



Select your outbound delivery and choose Confirmation in Foreground.The initial screen for transaction LT03 appears. Confirm your entrieswith Enter. On the next screen, choose Storage Type Search Sequence toaccess the Preparation for Stock Removal screen.

Hint: In the Storage Type Search area, you can see a section from theCustomizing table for the storage type search sequence. If you donot use this lesson in the context of the course, you should brieflyexplain the screen display at this point. In particular, you shouldbriefly describe the system procedure during stock removal (ifyou have not done so already). Because this is explained in detailin the lesson �Stock Removal with Transfer Orders�, no furtherdetails will be provided at this point.

5. Remove material LES04-00 from storage, in the background.

Choose Stock Removal Background . When you choose Generate andnext material, the tab page overview appears again. However, you cansave straightaway and therefore create the transfer order.

6. Confirm the transfer order from the area menu for Logistics Execution.

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery → Picking → Confirm Transfer Order → Single Document → InOne Step.

You can confirm the transfer order in the background.

7. Check the stock overview for material LES04-00 in warehouse number140:



The material is now in interim storage area 916.

8. Post the goods issue for the outbound delivery. Check the status updatein the outbound delivery.

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery → Post Goods Issue → Outbound Delivery Single Document.



Both statuses are now set to C, which means that picking is complete.

Hint: Status C is the prerequisite for the goods issue posting. Anincomplete picking process (the withdrawal of partial quantities)leads to an overall picking status B. If the transfer order wascreated but not yet confirmed, the total status of the warehousemanagement is B.

From the overview screen for the outbound delivery, choosePost Goods Issue.

9. Check the stocks of material LES04-00 again (see above).

Demonstration: Cancelling Goods Issue Postings andReturn Transfer of the Outbound Delivery (Optional)

PurposeSometimes participants ask whether it is possible to cancel a transfer orderthat has already been confirmed. The background to this question is often thatparticipants wonder how to proceed if no outbound delivery of the goods tothe customer takes place, but picking has already been performed.

If you choose not to perform this demonstration, depending on the previousknowledge of participants you should advise them against attempting theoptional exercise for this topic.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Create a sales order (order type OR) for 20 pieces of material LES02-00

(ordering party T-S11C00). Deliver this order.


After you enter the order data (see above), from the menu choose SalesDocument → Deliver. Use shipping point X000. If necessary, move theselection date forward by a week.



2. Create the transfer order for the outbound delivery, and confirm it in thebackground. To do this, from the outbound delivery choose Follow-OnFunctions to switch to creation of transfer orders.

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery → Picking → Confirm Transfer Order → In One Step.

3. Post the goods issue for the outbound delivery.

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery → Post Goods Issue → Outbound Delivery Single Document.

Choose Post Goods Issue.

4. At this time, if the customer recalls the order or wants to move theoutbound delivery to a later date, the goods issue must first be canceled.A separate transaction (VL09) is available for this.

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery → Post Goods Issue → Cancellation/Reversal.

The system proposes the last outbound delivery that was edited, for thecancellation posting. Choose Execute . Select your outbound deliveryand choose Cancel. The system shows you a success message for theposting. Exit the transaction.

5. Check the stock overview for your material LES02-00 in warehousenumber 140: There should again be 24 pieces in the goods issue zone (fordescription of procedure, see the first demonstration).

6. Return transfer the material quantity using the transaction specificallydesigned for this, LT0G (Return Transfer for Outbound Delivery).

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery→ Picking → Cancel Transfer Order → Return Transfer for OutboundDelivery.

The system proposes your warehouse number 140, your outbounddelivery, and the Warehouse Management movement type 999. ChooseExecute .

Hint: In this selection screen, you can choose between a deliveryview and a transfer order view. If you do not want to returntransfer all the items, you can choose the second view and selectwhich items are to be returned. You can change the quantitiesmanually.



The system proposes the material for return transfer, with the quantitypreviously picked. Select this entry and choose Return to Stock.

Caution: You can only return to stock into the issuing storage bin,if the receiving storage type permits additions to existing stock, orif the issuing bin is empty. In the demonstration the material waspicked from a fixed storage bin. The storage type for fixed binstorage allows additions to existing stock, which means that youcan return the material to the fixed bin. In other cases, you wouldhave to choose either Putaway Foreground or Putaway Background.

7. Confirm the return transfer transfer order, and check the stocks ofmaterial LES02-00 and your outbound delivery. The picking status andtransfer order status are now both A (Not Processed) again.

Hint: This procedure is only possible if no billing document hasyet been created for the outbound delivery. If billing has alreadytaken place, you must first cancel the billing document.



171 Exercise 15: Outbound Delivery Process:Stock Removal with Transfer Order andGoods Issue PostingExercise Duration: 20 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a transfer order for outbound deliveries, confirm it, and then post

the goods issue for the outbound delivery

Business ExampleYour customer, PC-World Stuttgart KG, ordered five bases LES04-##. Youtrigger removal of the material from stock and it is moved to the goods issuezone. The goods leave your company from this zone.




If you are using the lesson on its own, prepare by creating and delivering asales order for each participant group. Proceed as follows:

1. For ordering party T-S11B##, create a date order (order type OR) for fivepieces of material LES04-##. Choose Sales and Distribution → Sales →Order → Create.



2. Deliver this order by choosing Sales Document → Deliver.

Hint: If you receive an error log containing No schedule lines duefor the delivery up to selected date, change your selection date on theinitial screen Create Outbound Delivery with Order Reference (forexample, today�s date + one week).

TaskCreate a transfer order for the outbound delivery, confirm it, and post thegoods issue for the delivery.

1. In the outbound delivery monitor, find an outbound delivery where thematerial item from your warehouse number, 1xx (140 + group number##), should be picked.

Hint: Select your outbound delivery using the material numberLES04-##. To do this, choose Item View in order to see the materialitems to be delivered.

2. Call up the outbound delivery from the Daily Pick List in display mode,and check the two picking statuses.

3. In the outbound delivery, display the destination data (storage type andstorage bin) for the stock removal of your material LES04-##.

4. Go back to the outbound delivery monitor and create the transfer orderin the foreground.

5. Remove material LES04-## from storage. Again, you can choose betweenforeground and background processing. Save your data.

Hint: Use background processing if you do not want to changethe system proposals for the issuing storage type and issuingstorage bin.


7. Post the goods issue for the outbound delivery. Before you post, checkthe overall picking status and the status of transfer order processing.

8. Check the stock overview for material LES04-## in your warehousenumber 1xx (140 + group number ##).



Solution 15: Outbound Delivery Process:Stock Removal with Transfer Order andGoods Issue PostingTaskCreate a transfer order for the outbound delivery, confirm it, and post thegoods issue for the delivery.

1. In the outbound delivery monitor, find an outbound delivery where thematerial item from your warehouse number, 1xx (140 + group number##), should be picked.

Hint: Select your outbound delivery using the material numberLES04-##. To do this, choose Item View in order to see the materialitems to be delivered.

a) Choose Logistics → Logistics Execution → Outbound Process → GoodsIssue for Outbound Delivery → Outbound Delivery → Lists and Logs→ Outbound Delivery Monitor.

b) Choose For Picking and enter your warehouse number 1xx (140 +group number ##). To execute the selection, choose Execute . Thesystem displays the document numbers of four outbound deliveriesin the status line.

c) Choose Item View and select the outbound delivery that containsLES04-##.

2. Call up the outbound delivery from the Daily Pick List in display mode,and check the two picking statuses.

a) Place the cursor on the document number and left-click.b) Choose the Picking tab page. Before picking begins, the status is

A for each.

3. In the outbound delivery, display the destination data (storage type andstorage bin) for the stock removal of your material LES04-##.

a) Select the material item and choose Goto → Item → Picking.b) The destination data is the interim storage area 916 (shipping zone

deliveries) and a dynamic storage bin with the document numberof the outbound delivery as its coordinates.




4. Go back to the outbound delivery monitor and create the transfer orderin the foreground.

a) Select your outbound delivery and choose TO in Foregr.. The initialscreen for transaction LT03 appears. Confirm your entries withEnter.

b) On the next screen, choose Storage Type Search Sequence to access thePreparation for Stock Removal screen.

5. Remove material LES04-## from storage. Again, you can choose betweenforeground and background processing. Save your data.

Hint: Use background processing if you do not want to changethe system proposals for the issuing storage type and issuingstorage bin.

a) Choose Stock Removal Background .b) Choose Generate and Next Material to return to the tab page overview.

You have the option to save now and therefore create the transferorder.


a) Choose Logistics Execution → Outbound Process → Goods Issue forOutbound Delivery → Picking → Confirm Transfer Order → SingleDocument → In One Step.

b) You can confirm the transfer order in the background. In the Controlscreen area, select the Background indicator in the Process field, andconfirm your selection with Enter.

7. Post the goods issue for the outbound delivery. Before you post, checkthe overall picking status and the status of transfer order processing.

a) Choose Logistics Execution → Outbound Process → Goods Issue forOutbound Delivery → Post Goods Issue → Outbound Delivery SingleDocument.

If the system does not propose the document number of youroutbound delivery, enter the number in the relevant field andchoose Enter.

b) Choose the Picking tab page. Both statuses must be flagged with C(Completely Picked orWM-TO Confirmed).

c) Choose Post Goods Issue.




8. Check the stock overview for material LES04-## in your warehousenumber 1xx (140 + group number ##).


Enter your warehouse number 1xx (140 + group number ##) andmaterial number LES04-## and confirm with Enter.

b) The delivered quantity was posted from the interim storage type 916.





177 Exercise 16: Return Transfer for StockRemoval (Optional)Exercise Duration: 15 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Reverse a goods issue posting for an outbound delivery, and return the

picked materials to storage

Business ExampleIT-Services AG in Frankfurt orders 20 flat screen monitors. The goods arealready in the goods issue zone when the company cancels the order. Youmust now reverse the goods issue posting and return the goods to storage.


TaskCreate an order, deliver the order, pick the goods, and post the goods issuefor the outbound delivery. Reverse the goods issue posting and return thepicked goods to storage.

1. Create a sales order (order type OR) for 20 pieces of material LES02-##(ordering party T-S11C##). Deliver this order (shipping point X0##).

2. Create the transfer order for the outbound delivery, and confirm it inthe background.

Hint: To do this, from the outbound delivery, choose Follow-OnFunctions to switch to the transaction Create Transfer Order forDelivery (transaction code LT03)).

3. Post the goods issue for the outbound delivery.Continued on next page



4. Now reverse this goods issue posting and check the stocks of yourmaterial LES02-##. There should be 20 pieces again in the interim storagetype 916, the goods issue zone.

5. Return transfer the material quantity you picked in step 2, usingtransaction LT0G (Return Transfer for Outbound Delivery).

6. Check the stocks of your material LES02-##and your outbound delivery.Check whether the system has reset the picking and transfer order statusto A.



Solution 16: Return Transfer for StockRemoval (Optional)TaskCreate an order, deliver the order, pick the goods, and post the goods issuefor the outbound delivery. Reverse the goods issue posting and return thepicked goods to storage.

1. Create a sales order (order type OR) for 20 pieces of material LES02-##(ordering party T-S11C##). Deliver this order (shipping point X0##).

a) Choose Sales and Distribution → Sales → Order → Create.b) After you enter the order data, choose Sales Document → Deliver.

Use your shipping point X0##. If necessary, move the selection dateforward by a week.

2. Create the transfer order for the outbound delivery, and confirm it inthe background.

Hint: To do this, from the outbound delivery, choose Follow-OnFunctions to switch to the transaction Create Transfer Order forDelivery (transaction code LT03)).

a) From the outbound delivery menu, choose Follow-On Functions toswitch to the transaction Create Transfer Order for Delivery.

b) To confirm the transfer order, choose Logistics Execution → OutboundProcess → Goods Issue for Outbound Delivery → Picking → ConfirmTransfer Order → In One Step.

In the Fgrnd/Bgrnd field, set the Background indicator.

3. Post the goods issue for the outbound delivery.

a) Choose Logistics Execution → Outbound Process → Goods Issue forOutbound Delivery → Post Goods Issue → Outbound Delivery SingleDocument.

b) Choose Post Goods Issue.




4. Now reverse this goods issue posting and check the stocks of yourmaterial LES02-##. There should be 20 pieces again in the interim storagetype 916, the goods issue zone.

a) Choose Logistics Execution → Outbound Process → Goods Issue forOutbound Delivery → Post Goods Issue → Cancellation/Reversal.

b) The system proposes the last outbound delivery that was edited, forthe cancellation posting. To execute the selection, choose Execute .

c) Select your outbound delivery and choose Cancel. The system showsyou a success message for the posting. Exit the transaction.

d) To access the stock overview, choose Logistics Execution → InternalWarehouse Processes → Bins and Stock → Display → Total Stock perMaterial (Warehouse Management).

5. Return transfer the material quantity you picked in step 2, usingtransaction LT0G (Return Transfer for Outbound Delivery).

a) Choose Logistics Execution → Outbound Process → Goods Issue forOutbound Delivery → Picking → Cancel Transfer Order → ReturnTransfer for Outbound Delivery.

b) The system proposes your warehouse number 1xx (140 +group number ##), your outbound delivery, and the warehousemanagement movement type 999. To execute the selection, chooseExecute .

c) The system proposes the material for return transfer, with thequantity previously picked. Select this entry and choose Return toStock.

d) In the background, confirm the transfer order created by the systemfor the return transfer. Choose Logistics Execution → OutboundProcess → Goods Issue for Outbound Delivery → Picking → ConfirmTransfer Order → Single Document → In One Step.

6. Check the stocks of your material LES02-##and your outbound delivery.Check whether the system has reset the picking and transfer order statusto A.

a) To access the stock overview, choose Logistics Execution → InternalWarehouse Processes → Bins and Stock → Display → Total Stock perMaterial (Warehouse Management).

b) Menu path for changing or displaying outbound deliveries: LogisticsExecution → Outbound Process → Goods Issue for Outbound Delivery →Change → Single Document (or → Display).



Lesson Summary

You should now be able to:� Create and confirm a transfer order for an outbound delivery� Post the goods issue for an outbound delivery� Use the outbound delivery monitor� Name the options available for collective processing and automated

processing


Unit Summary SCM601

Unit SummaryYou should now be able to:� Explain the technical posting process of a goods issue for a cost center

with subsequent stock removal� Post a goods issue for a cost center in Inventory Management� Display the transfer requirement generated by the goods issue posting� Interpret the stock overview� Create a transfer order for a transfer requirement� Confirm the transfer order� Track the stock removal in the stock overview� Describe the goods issue process with outbound deliveries� Create a sales order� Check the scheduling of the shipping process� Create an outbound delivery for a sales order� Call up and interpret document data that is relevant for the stock removal� Create and confirm a transfer order for an outbound delivery� Post the goods issue for an outbound delivery� Use the outbound delivery monitor� Name the options available for collective processing and automated

processing




1. What are the differences between a goods issue For Other Transactions anda goods issue For Outbound Delivery?

2. What is the function of negative quants in the goods issue zone?Choose the correct answer(s).

A Negative quants show that something is missing in thewarehouse.

B Negative quants ensure that the total stocks are the same inboth Inventory Management and Warehouse Management.

C Negative quants show that material is to be removed fromstorage.

D Negative quants map the temporary situation after the goodsissue posting and before stock removal.

3. During stock removal, how does the system determine a storage bin?

4. How can the picking area influence stock removal?



5. What factors influence shipping point determination?Choose the correct answer(s).

A The sales document typeB The sales organizationC The delivering plantD The shipping conditionE The loading group of the material

6. Which basic dates are determined during shipment scheduling?

7. Which factors play a part during picking location determination?Choose the correct answer(s).

A The shipping pointB The warehouse numberC The delivering plantD The picking areaE The palletization data of the materialF The storage condition of the material

8. Lean Warehouse Management isChoose the correct answer(s).

A A Warehouse Management system with a reduced scope offunctions

B Not a warehouse management systemC A means of using transfer orders even without storage bin

managementD An aid for connecting external systems for storage bin

management to your own SAP R/3 system



9. How can you tell from the outbound delivery that a transfer order isrequired for picking?

10. What is the message typeWMTA used for?



186Answers

1. What are the differences between a goods issue For Other Transactions anda goods issue For Outbound Delivery?

Answer: For a goods issue For Other Transactions, the process starts withthe goods issue posting. In an outbound delivery process, the goodsissue posting completes the process. In goods issue processes For OtherTransactions, the Inventory Management posting generates a transferrequirement. In the outbound delivery process, the transfer order refersto the outbound delivery.

2. What is the function of negative quants in the goods issue zone?

Answer: B, C, D

The negative quant balances the total stocks in Inventory Managementand Warehouse Management, and shows that stock removal has not beenperformed or is not yet complete.

3. During stock removal, how does the system determine a storage bin?

Answer: The system first determines the issuing storage type. Thenit uses the stock removal strategy defined for this storage type to findissuing storage bins.

4. How can the picking area influence stock removal?

Answer:

1. One transfer order split can be performed for each picking area.

2. In a cross-transfer-order picking list, the items are sorted by pickingarea.

5. What factors influence shipping point determination?

Answer: C, D, E

The delivering plant, the shipping condition, and the loading group ofthe material influence shipping point determination.



6. Which basic dates are determined during shipment scheduling?

Answer: The system determines the material availability date, loadingdate, transportation planning date, and goods issue date.

7. Which factors play a part during picking location determination?

Answer: A, C, F

During picking location determination, the system takes account of theshipping point, delivering plant, and the storage condition (optional)of the material.

8. Lean Warehouse Management is

Answer: B, C, D

You use Lean Warehouse Management when you want to use transferorders without storage bin management, for example, in order toexchange data with an external system.

9. How can you tell from the outbound delivery that a transfer order isrequired for picking?

Answer: If the Picking tab page displays an overall status of the transferorder and a warehouse number, then you must pick using a transferorder.

10. What is the message typeWMTA used for?

Answer: Message type WMTA allows manual and/or automatic creationof transfer orders for outbound deliveries.


Unit Summary SCM601


Unit 5189 Transportation

Both lessons in this unit only introduce the basic elements of the partialfunctions. The aim is for participants to gain an overview of the technicalposting processes in both systems.

Unit OverviewThis unit deals with transportation control as a subfunction of LogisticsExecution, and also discusses transportation planning in the SAP AdvancedPlanner and Optimizer (SAP APO). You will also learn how SAP R/3 and SAPAPO can work together during transportation processing.


� Name the range of functions within transportation planning� Explain the fundamental control parameters for the shipment type� Create a shipment document� Use this document to map transportation processing in SAP R/3� Position Transportation Planning and Vehicle Scheduling (TP/VS) within

SAP APO� Describe transportation planning using TP/VS� Explain the effects of combining TP/VS and SAP R/3 transportation

planning

Unit ContentsLesson: Transportation Planning in SAP R/3 ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249

Demonstration: Planning and Completing an Outbound Shipment.. . . . .258


Unit 5: Transportation SCM601

Exercise 17: Planning and Completing an Outbound Shipment ... . . . . . .261Lesson: Transportation Planning with SAP APO ... . . . . . . . . . . . . . . . . . . . . . . . . . . . .267


SCM601 Lesson: Transportation Planning in SAP R/3

Lesson:190

Transportation Planning in SAP R/3Lesson Duration: 45 minutes

Lesson OverviewThe �Transportation� function is the third part of Logistics Execution. Itsupports planning and requirements planning for transportation of inboundand outbound goods in SAP R/3. This lesson outlines the range of functionsfor transportation.


� Name the range of functions within transportation planning� Explain the fundamental control parameters for the shipment type� Create a shipment document� Use this document to map transportation processing in SAP R/3

Make clear that the transportation functions are optional and can be usedto enhance delivery processing. Whereas you can only use the outbounddelivery to plan the route of the goods from one shipping point using oneroute to one ship-to party, the transportation functions enable you to mapmore complex outbound delivery transactions. The same applies for inbounddeliveries with regards to incoming shipments. This lesson uses the exampleof an outbound shipment.

Business ExampleIDES AG plans shipments used to send goods to customers in variouslocations.

Transportation: Positioning Within the Logistics ProcessThe transportation functions in SAP R/3 are available in order to enhance threeforms of the delivery process. These processes are:

� Goods receipts with inbound deliveries� Goods issues with outbound deliveries� Stock transport orders with deliveries



Basically, the range of functions is limited to the inbound and outboundprocesses: if you work with deliveries for stock transport orders, thenthe deliveries are always either inbound or outbound (the latter play arole for Handling Unit Management). Not all participants are aware thatstock transport orders can be processed using deliveries. This procedure isparticularly useful if the delivering plant is in a different location from thereceiving plant, and for example, shipping papers are required.

The basic principle is always the same: deliveries are summarized into groupsaccording to various selection criteria. Further processing deals exclusivelywith the group. Process control references a separate document: the shipment,or more exactly, the shipment document, which is flagged with the numberof the delivery group.

The fact that the function and document are called the same, is initiallyconfusing for some participants. It is often helpful for the participants if youonly talk about �shipment documents�.

Figure 45: Transportation Function



The shipment document stores the data concerning planning and completionof the process substeps. You can create the document either before pickingor after picking is complete. Using transportation functions does not changethe process flow of the inbound or outbound process. Instead, it adds anextra step and a document. In connection with this document, you can alsoprocess messages. The standard system therefore contains preconfiguredmessage types for bills of lading, shipping orders, and invoices accompanyinggoods. These can be printed, or sent by fax or EDI to the recipient. In theshipment, you can also perform cross-delivery packing: packages are eitheradopted from the delivery and then packed further, or initial packing occursin the shipment.

An essential part of the transportation functions is shipment cost calculationand settlement, which works using pricing methods. You can use thissubfunction to create detailed forecast estimates of costs that might arise inrelation to transportation processing, and then forward this to accounting inorder to generate appropriations or create credit memos. You can also invoicethe customer for shipment costs in the billing document. A shipment costdocument is used to calculate and settle shipment costs.

To use the subfunctions for �shipment cost calculation and settlement�,participants require in-depth knowledge of SD pricing. This is covered indetail, along with transportation planning, in course SCM611.

The Shipment TypeA shipment type is a collection of process-controlling parameters thatyou create in Customizing for Transportation. It decides the direction,combination, and mode of transport for a shipment, in addition to the transferof data from preceding documents and message determination.



Figure 46: Shipment Type

The preconfigured shipment types in the standard system can be copied andchanged, or enhanced by adding new shipment types. When you create ashipment document, you must always enter a shipment type. The completiontype of the selected shipment type decides the direction of the shipment; youuse the indicator for process control to tell the system whether the shipmentis a single shipment or a collective shipment. You can differentiate betweenshipments with one or more modes of transport.

Note: A single shipment always has exactly one point of departureand one destination, regardless of how many deliveries are included inthe shipment. A collective shipment can have more than one point ofdeparture and destination.

Using the completion type, you can differentiate between loaded and emptyshipments.



If you want to map a more complex form of transportation processing in thesystem (several points of departure or different modes of transport), youcan create a transportation chain. Transportation chains consist of severalshipments, each created with a different shipment type. This means that eachpartial run can be controlled separately.

This kind of shipment can also be processed as a collective shipment usingonly one shipment document. Users often reach a dead end here, since thesettings for the selected shipment type are always valid for the whole process.A transportation chain however enables you to differentiate within processcontrol (assignment of dates, packages, messages, and texts).

Transportation chains consist of at least one preliminary leg, one main leg,and one subsequent leg.

Note: Shipment types that are used to process a �simple� single orcollective shipment receive the leg indicator Direct Leg.

Figure 47: Transportation Chain



The shipment type�s run indicator specifies the leg type. To be able to create atransportation chain, you need at least three shipment types that are flaggedaccordingly as Preliminary Leg,Main Leg, or Subsequent Leg. If you create ashipment using a shipment type flagged as such, the system recognizes that itis linked to other shipments.

The system uses the transportation planning status of the delivery. Youcan call up this status on the overview screen, or in the document headeron the Transportation tab page. Status A flags the delivery as relevant fortransportation. After the shipment is created, which is a partial leg within atransportation chain according to the shipment type, the status changes to B(partially scheduled): the system expects further shipments that will involvethe delivery.

Shipment StagesThe shipment type also defines the type of leg determination. A shipmentcan be divided into several stages. Shipments can be divided manually orautomatically. SAP R/3 contains three defined shipment stages:

� Legs� Load transfer points� Border crossing points

Figure 48: Shipment Stages



A leg is a connection between a starting point and an end point (for example,shipping point, plant, customer, or vendor). The means of transport isswitched at load transfer points. For example, the goods are loaded froma truck to a ship. Border crossing points are locations where shipmentscross national boundaries. Each shipment stage can be linked to specificinformation (for example, to a service provider, to a shipment cost calculation,and/or shipment scheduling). When you create a shipment, this data iscopied into the shipment document.

Note: Shipment stages can also be generated from routes. When youcreate a shipment and enter a route in the document header, the stagesare copied from this route. However, you can also copy the route (andtherefore its stages) from the delivery. The shipment type defineswhether stages are copied from the route.

Leg determination according to the shipment type has an extremely simplestructure. It is based on simple rules for determining a useful departureand arrival sequence. SAP R/3 does not contain any tools for geographicaloptimization or for planning vehicle load. For this reason, there is aninterface (SD-TPS) that enables you to connect other transportation planningsystems to SAP R/3. These external systems are specialized for specificindustries or goods. The transportation planning function TransportationPlanning/Vehicle Scheduling (TP/VS) in SAP APO is a SAP product forenhancing the range of functions for transportation processing in SAP R/3.

In the demonstration you work without routes. The shipment stages areconstructed using simple leg determination (Determine Legs Accordingto Itineraries). In the demonstration, if you work with automatic legdetermination according to the shipment type, the only stage type is for legs.Load transfer points and border crossing points are only available for manualschedule lines, and when you use routes.

Shipment DocumentThe shipment document is the basis for transportation planning. It is used tosummarize deliveries into a group according to specific criteria. When youcreate a shipment, you can select deliveries according to data about the pointof departure or the destination, by time-related criteria (such as transportation



planning date or goods issue date), or by other transportation-relevant criteria(such as forwarding agent, Incoterms, shipping condition, route, or meansof transport).

Note: You can only select transportation-relevant deliveries. Thesystem decides whether a delivery is transportation-relevant usingthe delivery type and the route, which must both be flagged astransportation-relevant in Customizing. Users can see the relevancefor transportation from the transportation planning status A in theoverview and in the delivery header.

You can create shipments as single documents. You can also use collectiveprocessing, which generates shipment documents using selection variants.Selection variants contain a group of criteria used to select deliveries. Theyalso enable background processing.

Note: For processes that take place regularly, you can assign aselection variant to a shipment type in Customizing. You can simplifymanual creation of shipments using planning proposals. As withselection variants, you group together selection criteria into a profile.In contrast to collective processing, you can still manually influencehow shipments are constructed.

In the shipment document, you can enter dates, service providers, and texts.You can also construct cross-delivery packages (see above). Transportationprocessing is controlled in the document using predefined statuses. Thesestatuses, which flag substeps in the process, range from �Planned� to�Completed�. You can also use statuses for the beginning and end of theshipment process. At any time, users can use the document to track thecurrent progress. In the document, users can also plan specific substeps, suchas loading. If the status Loading End is set, the system enters the actual timeloading was completed.

Note: In Customizing, you can link each shipment type to activityprofiles with separate statuses. You can use these profiles to automatemessage printing. However, you can also tell the system to carry outbackground processing, consisting of the goods issue posting andbilling for all outbound deliveries contained in the shipment, as soonas the assigned status is set in the document and the change is saved.



In the training system, activity profile 0003-05 for shipment type 0003(Collective Shipment) is assigned to the status �Completed�. This profiledefines that when you save the status change, the goods issue is posted forthe outbound delivery and the billing documents are created. (Menu pathin the SAP Reference IMG: Logistics Execution → Transportation → Shipments→ Define and Assign Activity Profiles)

If you are using Warehouse Management, picking can take place before orafter you create the shipment. If the shipment was already constructedbefore picking, it can be used in a collective run as a group for creating andconfirming transfer orders for the deliveries in the shipment.

Figure 49: Transportation Processing and Warehouse Management

In the first example, picking was performed before a shipment was created.In the second example, the shipment was used as a (outbound delivery) groupfor constructing wave picks.



Demonstration: Planning and Completing an OutboundShipment

PurposeDemonstrate first how to use the shipment document to collect outbounddeliveries in a group, and continue the goods issue process including pickingin the system.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Create a shipment with shipment type 0003 (Collective shipment) for

transportation planning point 1200. Select the outbound deliveries usingthe following criteria:

Choose Logistics Execution → Transportation → Transportation Planning →Create → Single Documents.

Enter the transportation planning point 1200 and choose shipmenttype 0003.

Choose Deliveries to collect the outbound deliveries for the shipment.Perform a selection using your shipping point X000 and warehousenumber 140. Choose Execute . The system should find three outbounddeliveries. Save the selection. The system issues a shipment number.

2. Call up the shipment document in change mode.

Choose Logistics Execution → Transportation → Transportation Planning →Change → Single Documents.

Point out the buttons for the shipment statuses on the Dates tab page.

3. Enter Nordspeed GmbH in Hamburg as the service provider for theshipment, and set the status �Planned�:



In the Service Agent field, enter the vendor number for Nordspeed GmbH(1058). Choose Planning and save your input.

Hint: Underneath the Transportation Planning Point field, you cansee a tendering status. Participants sometimes ask about this. Itis an additional function that can be used to tender shipmentsover the Internet. The shipments are created and planned inSAP R/3, and are offered to various forwarding agents on theInternet. You make the necessary settings in the SAP ReferenceIMG under Logistics Execution → Transportation → Interfaces →Internet Communication.

4. Call up the shipment document again, in order to check automatic legdetermination.


Go to the Stages tab page. Setting the status �Planned� has resulted intwo shipment stages: Dresden - Frankfurt and Frankfurt - Stuttgart.

Hint: This itinerary is only based on how the deliveries werearranged after the selection when you created the shipment. Ifyou work with selection variants, for example, the zip codes ofthe destinations could be the basis for leg determination.

5. Use the shipment as a group for picking in multiple processing. To dothis, create a wave pick for the shipment.

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery → Picking → Wave Picks → Create → According to Shipment.

Enter warehouse number 140 and the number of your shipment. Do notchange the default entry Display Waves Before Saving. Choose Execute .The system displays a list of your outbound deliveries. To create thewave pick, save the selection result.

Hint: The wave pick is identified with a separate group number.

6. Create the three transfer orders in multiple processing.

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery → Picking → Create Transfer Order → Collective Processing.



Enter your warehouse number 140 and the number of the wave pick.Choose background processing and then Start Multiple Processing. Thestatus line informs you that three transfer orders have been created.Choose Detailed Information to access the list of document assignments.Print the transfer orders or release them for transmission to an externalsystem, by choosing Release/Print . Exit the transaction. (Answerthe confirmation prompt with Yes.)

Caution: If you forget the release at this stage of thedemonstration, you must make sure you perform it beforeyou confirm the transfer orders. Choose Logistics Execution→ Outbound Process → Goods Issue for Outbound Delivery →Communication / Printing → Release and Print Wave Pick.

7. Confirm the three transfer orders for the wave pick in the background.

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery → Picking → Confirm Transfer Order → Collective Processing.

Enter your warehouse number and wave pick number again, and chooseExecute . Place your cursor on the first line of the transfer order andchoose Confirm Remaining Items.

8. Check the document flow for one of your outbound deliveries:

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery → Outbound Delivery → Display.

From the menu, choose Environment → Document Flow.

9. Return to your shipment and set the status �Completed�.


Choose Completion and save the status change. In the status line, thesystem informs you that a goods issue will be posted and a billingdocument will be created in the background for each outbound delivery.



197 Exercise 17: Planning and Completing anOutbound ShipmentExercise Duration: 25 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Process an outbound shipment

Business ExampleCompuMax GmbH in Frankfurt and PC World Stuttgart KG should bothreceive deliveries of flat screen monitors and pedestals. All outbounddeliveries should be sent to the recipients in the same shipment.



TaskCreate a shipment, then plan and complete it.

1. Create a shipment with shipment type 0003 (Collective shipment) fortransportation planning point 1200. Select outbound deliveries usingyour shipping point X0##and your warehouse number 1xx (140 + groupnumber).

2. Call up this shipment document in change mode. Add NordspeedGmbH in Hamburg (vendor number 1058) as the service provider fortransportation, and set the status Planning Completed.

3. Call up the shipment document again in change mode in order to checkautomatic leg determination.




4. Use your shipment as a group for picking in multiple processing. To dothis, create a wave pick for the shipment.

Hint: For the group number, use your shipment number. Thesystem will assign a separate number for the wave pick, whichyou will use to create and confirm the transfer orders in collectiveprocessing.

5. Use your wave pick to create three transfer orders for the three outbounddeliveries in your shipment.

6. To print the transfer orders or release them for transmission to an externalsystem, choose Release/Print .

7. Confirm the three transfer orders for the wave pick.

8. To complete the process, return to your shipment and set the statusShipment Completion. What happens when you save the data afterchanging the status?



Solution 17: Planning and Completing anOutbound ShipmentTaskCreate a shipment, then plan and complete it.

1. Create a shipment with shipment type 0003 (Collective shipment) fortransportation planning point 1200. Select outbound deliveries usingyour shipping point X0##and your warehouse number 1xx (140 + groupnumber).

a) Choose Logistics Execution → Transportation → TransportationPlanning → Create → Single Documents.

Enter transportation planning point 1200 and choose shipment typeCollective Shipment (key 0003).

b) ChooseDeliveries to collect the outbound deliveries for the shipment.Use your shipping point X0## and your warehouse number 1xx(140 + group number ##) as selection criteria. Choose Executeto perform the selection.

c) In the Shipments and Deliveries column, the system should displaythree outbound deliveries. Save the selection. The system issues ashipment number (in the status line).

Hint: If the system suggests more than three outbounddeliveries, use �Drag&Drop� to move superfluous entriesinto the Total of Deliveries Not Assigned area. Before this, checkthe ship-to party and status.




2. Call up this shipment document in change mode. Add NordspeedGmbH in Hamburg (vendor number 1058) as the service provider fortransportation, and set the status Planning Completed.

a) Choose Logistics Execution → Transportation → TransportationPlanning → Change → Single Documents.

If the system does not propose the shipment number, enter thenumber in the relevant field and choose Enter.

b) In the Service Agent field, enter the vendor number for NordspeedGmbH (1058).

c) Choose Planning and save your input.

3. Call up the shipment document again in change mode in order to checkautomatic leg determination.


b) Go to the Stages tab page. Setting the Planning Completed statushas resulted in two shipment stages: Dresden - Frankfurt andFrankfurt - Stuttgart.

4. Use your shipment as a group for picking in multiple processing. To dothis, create a wave pick for the shipment.

Hint: For the group number, use your shipment number. Thesystem will assign a separate number for the wave pick, whichyou will use to create and confirm the transfer orders in collectiveprocessing.

a) Choose Logistics Execution → Outbound Process → Goods Issue forOutbound Delivery → Picking → Wave Picks → Create → According toShipment.

b) Enter your warehouse number 1xx (140 + group number ##) and thenumber of your shipment. To execute the selection, choose Execute. The system displays a list of your outbound deliveries.

c) To create the wave pick, save the selection result.




5. Use your wave pick to create three transfer orders for the three outbounddeliveries in your shipment.

a) Choose Logistics Execution → Outbound Process → Goods Issue forOutbound Delivery → Picking → Create Transfer Order → CollectiveProcessing.

b) Enter your warehouse number 1xx (140 + group number ##)and enter the number of the wave pick in the Group field. In theForeground/Backgrnd field, choose Background and confirm with StartMultiple Processing.

c) The status line informs you that three transfer orders have beencreated.

6. To print the transfer orders or release them for transmission to an externalsystem, choose Release/Print .

a) Choose Release/Print and then exit the transaction. Answer theconfirmation prompt with Yes.

b) If you have forgotten the release, you can perform this now. ChooseLogistics Execution → Outbound Process → Goods Issue for OutboundDelivery → Communication / Printing → Release and Print Wave Pick.Enter your warehouse number and wave pick number. Selectbackground processing and choose Release Multiple Processing .

7. Confirm the three transfer orders for the wave pick.

a) Choose Logistics Execution → Outbound Process → Goods Issue forOutbound Delivery → Picking → Confirm Transfer Order → CollectiveProcessing.

b) Enter your warehouse number. In the Group field, enter your wavepick number, and choose Execute .

c) The system displays your three transfer orders. Place your cursoron the first line of the transfer order and choose Confirm RemainingItems. Exit the transaction.

8. To complete the process, return to your shipment and set the statusShipment Completion. What happens when you save the data afterchanging the status?


b) Choose Shipment Completion and save the status change. In thestatus line, the system informs you that a goods issue will be postedand a billing document will be created in the background for eachoutbound delivery.



Lesson Summary

You should now be able to:� Name the range of functions within transportation planning� Explain the fundamental control parameters for the shipment type� Create a shipment document� Use this document to map transportation processing in SAP R/3


SCM601 Lesson: Transportation Planning with SAP APO

Lesson:203

Transportation Planning with SAP APOLesson Duration: 50 minutes

Lesson OverviewThis lesson should give you an overview of the range of functions withinthe transportation planning system TP/VS as part of SAP Advanced Planningand Optimization (SAP APO). It also explains how transportation planning inSAP APO can work together with the execution functions in transportationmanagement in SAP R/3. Both are a part of the SAP transportationmanagement solution.

The SAP Event Manager, which is covered in a separate lesson, can also beused in this solution.


� Position Transportation Planning and Vehicle Scheduling (TP/VS) withinSAP APO

� Describe transportation planning using TP/VS� Explain the effects of combining TP/VS and SAP R/3 transportation

planning

To use TP/VS, you need to make a large number of Customizing settings andmaintain master data in both SAP APO and SAP R/3. In this lesson therefore,you should only roughly describe how transportation planning works in SAPAPO. We deliberately avoided a suggested demonstration, since the effortrequired for the demonstration and its usefulness to participants are notbalanced. Moreover, the complex planning screen in TP/VS is often confusingfor participants who are seeing SAP APO for the first time. At the end of thelesson, you can find a reference to a set of IDES demonstrations that you canuse if you decide to perform a system demonstration for TP/VS.

The documentation for TP/VS unfortunately contains some major gaps, and istherefore relatively unsuitable for gaining an overview of the range of TP/VSfunctions. However, there is a course that covers this topic (SCM612).



Business ExampleTo optimize their transportation processing, IDES AG wants to use atransportation planning system, and is therefore investigating TP/VS in SAPAPO.

OverviewTransportation Planning/Vehicle Scheduling is a subfunction of SAP APO,the planning and optimization systemwithinmySAP Supply Chain Management(mySAP SCM). It aims to enable more efficient transportation processes andto reduce costs through optimum utilization of capacities. Cooperation withtransportation service providers is supported.

Figure 50: SAP APO in mySAP SCM

As in other areas of supply chain management, transportation processingalso makes detailed plans for the required process steps in SAP APO. On thebasis of the planning results, the planned process steps are executed in SAPR/3 or in another Online Transaction Processing (OLTP) system, for example,by creating or updating documents.



Figure 51: Transportation Planning in mySAP SCM

The two elements of TP/VS, Transportation Planning and VehicleScheduling, are mainly different due to their functions. TransportationPlanning is designed for mid- to long-term planning of transportationprocesses, and Vehicle Scheduling is used for short-term detailed planningbased on the results of transportation planning.

Transportation Planning and Vehicle Scheduling can be performedinteractively, where user actions have an influence, or in the background,automatically. Automatization of planning and optimization is based onprofiles that are defined in Customizing for TP/VS. In interactive planning,you work with a planning board that allows you to assign sales orders andother documents to vehicles or other resources. Results from backgroundplanning can be changed in the planning board, for example by generating orchanging documents in SAP R/3 before they are released and become effective.

Resources are master data in SAP APO. To use TP/VS, a resource masterrecord is created for each vehicle. This master record contains detailedplanning-relevant information, such as the spatial capacity and availabilitywith regards to time.

Note: Resources in SAP APO are roughly classified according to theiruse. This means that as well as transportation resources, there are alsoproduction resources (such as machines).



However, transportation planning requires not only resources, but alsoorganizational units and master data. These must all exist in both SAP APOand in SAP R/3 (or the other OLTP system). Examples of this data are plants,materials, customers, and vendors. If the data already exists in SAP R/3, youcan copy it to SAP APO.

SAP APO often uses different terminology from SAP R/3. For example,�plants� in SAP R/3 are �locations� in SAP APO; �materials� are �products�.In order to avoid confusing the participants, this lesson will only useterminology from SAP R/3.

Note: Transportation service providers that should be included in theplanning in TP/VS require a vendor master record in SAP R/3.

The departure and destination locations are linked together in SAP APO usingtransportation lanes, which also have master data characteristics. If a specificcustomer regularly receives deliveries from a specific production plant ordistribution center, you can store this information as a transportation lane inthe system. This data stores information about the delivered products, thedistance, the means of transport usually used, the average transportationduration, and even shipment costs. TP/VS requires these transportation lanesfor optimization. During an optimization run, the system assigns sales ordersto the vehicles, and determines both delivery sequences and dates.

Note: TP/VS can also be used to plan inbound shipments.

Transportation Processing With SAP APO and SAP R/3Sales orders that were entered in SAP R/3 can be used as the basis fortransportation planning in SAP APO. The follow-up documents, the outbounddelivery and shipment document, are created in SAP R/3 later in processing,as a result of transportation planning using TP/VS from SAP APO.



Figure 52: Goods Issue Process with TP/VS

The sales orders transmitted to SAP APO form a planning worklist in TP/VS.The orders are assigned to available resources either in the background orinteractively, so that the resources� capacities are optimally utilized, andthe customer�s desired delivery dates can be realized with as few costs aspossible. As well as the vehicle capacity, the optimization run also considersthe following criteria:

� Availability of loading resources� Loading and unloading times� Opening hours� Penalty costs for early or delayed delivery

Note: Shipment and transportation scheduling is also influenced bythe use of SAP APO. If the sales order contains materials that are partof the global, in other words cross-plant, available-to-promise (ATP)check in SAP APO, the system also performs cross-plant scheduling.Different deadlines can be determined depending on the supplyingplant.

After planning is completed, TP/VS stores the results in the form of plannedshipments. On the basis of these planned shipments, outbound deliveries canautomatically be created from SAP APO in SAP R/3 for the sales orders enteredfor planning purposes. Any shipment-relevant changes to these outbound



deliveries are reported to SAP APO in order to update the planned shipments.The planned shipments are then released, in order to create shipments in SAPR/3 for the outbound deliveries created in the previous step.

Note: Instead of sales orders, outbound deliveries in SAP APO canalso be used as the basis for planned shipments.

TP/VS also enables you to select transportation service providers for plannedshipments according to specific strategies that you predefine in Customizing.Example selection criteria could be, for example, costs and/or contractsfor minimum or maximum quantities. In collaborative transportationplanning via EDI or the Internet, transportation RFQs can be sent to aspecific transportation service provider directly from transportation planning.The service provider can use the same methods to accept or reject theseRFQs. Accepted transportation RFQs are processed further in SAP APO; iftransportation RFQs are rejected, you can search for another transportationservice provider.

You have the option of evaluating planning data in the SAP BusinessInformation Warehouse (SAP BW). There is also an interface to the geocodingsystem, which is offered by various manufacturers as special software(IF_GEOCODING_TOOL).

You can find suggested demonstrations for TP/VS in SAPNet under thealias /ides. You can create your own user for the SAP APO and SAP R/3demonstration systems.



Facilitated DiscussionThe participant activities were only included in the lesson for formal reasons.

Discussion QuestionsUse the following questions to engage the participants in the discussion. Feelfree to use your own additional questions.

Which advantages do transportation planning systems offer in contrast toshipment processing exclusively by service providers?



Lesson Summary

You should now be able to:� Position Transportation Planning and Vehicle Scheduling (TP/VS) within


planning


SCM601 Unit Summary

Unit SummaryYou should now be able to:� Name the range of functions within transportation planning� Explain the fundamental control parameters for the shipment type� Create a shipment document� Use this document to map transportation processing in SAP R/3� Position Transportation Planning and Vehicle Scheduling (TP/VS) within


planning


Unit Summary SCM601




1. What does the completion type for the shipment type control?

2. What are the differences between single shipments and collectiveshipments?

3. Which types of shipment stages can be determined from the route?

4. What are transportation lanes?

5. You can use TP/VS to create deliveries and shipments from SAP APOin SAP R/3.Determine whether this statement is true or false.

TrueFalse



212Answers

1. What does the completion type for the shipment type control?

Answer: The completion type controls the direction of the shipment.

2. What are the differences between single shipments and collectiveshipments?

Answer: A single shipment has exactly one point of departure and onedestination.

3. Which types of shipment stages can be determined from the route?

Answer: The route can be used to determine legs, load transfer points,and border crossing points.

4. What are transportation lanes?

Answer: Transportation lanes are master data in SAP APO. They linkthe point of departure and the destination of a shipment, and containplanning-relevant information.

5. You can use TP/VS to create deliveries and shipments from SAP APOin SAP R/3.

Answer: True



Unit 6213 Monitoring Logistics Processes

This unit also discusses cross-system topics. In the first lesson, you introducethe warehouse activity monitor, which can be used to monitor operations inWarehouse Management in SAP R/3. The second lesson deals with the SAPEvent Manager, which you can use to coordinate and control complex logisticsprocesses.

Unit OverviewGoods receipt and goods issue processes consist of a sequence of substeps thatare usually interdependent. These substeps are often performed by differentpeople or groups. It is therefore important to be able to continually mointorthe processes. In this unit, you will learn about one means of controllinglogistics process within SAP R/3. You will also be introduced to the SAP EventManager (SAP EM) as an instrument for monitoring operations across severaldifferent systems.


� Describe the range of functions of the warehouse activity monitor� Use the warehouse activity monitor to monitor warehouse processes� Use the bin status report, indexes of empty storage bins, and capacity

evaluations� Explain the function of the SAP Event Manager� Name the uses of the SAP Event Manager in the supply chain� Describe a typical case for using the SAP Event Manager


Unit 6: Monitoring Logistics Processes SCM601

Unit ContentsLesson: Warehouse Activity Monitor and Other Evaluations.. . . . . . . . . . . . . . . . .281

Demonstration: Warehouse Activity Monitor .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .285Demonstration: Warehouse Activity Monitor: Creating a Variant(Optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .288Demonstration: Using the Bin Status Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .288Exercise 18: Warehouse Activity Monitor .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .291Exercise 19: Adapting the Warehouse Activity Monitor Using the SAP ListViewer (Optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .295

Lesson: Supply Chain Event Management.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300Exercise 20: Supply Chain Event Management ... . . . . . . . . . . . . . . . . . . . . . . . . .305


SCM601 Lesson: Warehouse Activity Monitor and Other Evaluations

Lesson:214

Warehouse Activity Monitor and Other EvaluationsLesson Duration: 35 minutes

Lesson OverviewSAP R/3 offers various tools for monitoring and evaluating warehouse stocksand movements. In this lesson you will learn about the warehouse activitymonitor and other standard analyses and stock overviews.


� Describe the range of functions of the warehouse activity monitor� Use the warehouse activity monitor to monitor warehouse processes� Use the bin status report, indexes of empty storage bins, and capacity

evaluations

Introduce the monitoring tool the warehouse activity monitor and talk aboutoptions for configuring the tool. You can demonstrate the various stockdisplays in the system; however, you do not necessarily have to show everytransaction mentioned in the lesson.

Business ExampleIn order to rapidly recognize errors or problems in the warehouse, IDES AGuses the warehouse activity monitor. In addition, regular checks of the stocksand material flow are also required.

Warehouse Activity MonitorThe warehouse activity monitor is a tool for monitoring warehousemovements and stocks. It aims to provide timely information about processesthat are either incomplete or running incorrectly. It also allows you to createand/or correct documents, and perform postings. The warehouse activitymonitor contains seven objects that are used for monitoring:

1. Unconfirmed transfer orders

2. Open transfer requirements

3. Open posting change documents



4. Open deliveries

5. Negative stocks

6. Stocks in interim storage types

7. Critical stocks in production storage bins

Figure 53: Warehouse Activity Monitor

You define processing deadlines for each of these objects in Customizing. Thismeans that the warehouse activity monitor only displays a document or astock if these deadlines have not been met. Each object has a correspondingreport. You can create variants of these reports. You can also schedule thereports as jobs in order to regularly check both documents and stocks.

The reference organizational unit for the warehouse activity monitor is alwaysthe warehouse number. If the system is processing the object UnconfirmedTransfer Orders, it searches for transfer orders that were not confirmed withinthe deadline specified in Customizing. You restrict this selection - also inCustomizing - to specific movement types and, where necessary, to specificstorage types. The object checks for open transfer requirements and open



posting change documents work in a similar way; if no transfer orders werecreated for the documents within the specified deadline, then the documentsappear in the warehouse activity monitor.

Note: Posting change documents and transfer requirements havethe same function: They document an Inventory Managementposting, and are reference documents for the transfer order. Postingchange notices are usually the result of posting changes in InventoryManagement, for example, which change the stock type, assignment tospecial stock, or the batch of a material quantity. Usually, a transferorder is needed to inform the Warehouse Management system whichquants are affected by the changes.

The system only searches for documents that have the status �Open�.Creating a transfer order usually changes the status of the reference documentto �Completed�. However, you can also manually set the status to completedfor both posting change notices and transfer requirements.

If the system checks the warehouse activity monitor object Open Deliveries,it searches for outbound deliveries with warehouse-management-relevantitems that do not yet have the overall transfer order status C (CompletelyProcessed). The deadlines you specify in Customizing for this object are alwaysvalid with regards to the dates for specific shipping activities. The systemdetermined these dates when the order was created, and then copied theminto the outbound delivery. This means that if you start the selection report forthe object, the system compares the planned time from the outbound deliverywith the rerport time. It uses the deadline from Customizing to see whetherthere is enough time remaining to complete the shipping activities.

Note: The value for wave pick processing for the warehouse numberdecides whether the system uses the material availability time, loadingtime, or goods issue time for the comparison. If these other values aremissing, the loading time is the reference factor.



Negative stocks and stocks in interim storage types are only displayed in thewarehouse activity monitor after a deadline specified in Customizing. Theobject for critical stocks in production storage bins was created in order tomonitor variances between transfer requirement quantities in the work orderand the transfer requirement used to stage the material for production.

Note: This object is only relevant if production is supplied withmaterial from the warehouse.

Stock Overviews and EvaluationsThe Warehouse Management system offers various stock overviews, inaddition to evaluations from different standpoints. The overviews of storagebin stocks are essential for daily work in the warehouse. Here you can choosebetween an overview of the entire stock of a material in a warehouse number(transaction LS26), and a material-specific bin stock overview (transactionLS24). The advantage of the first overview is that you can see immediatelywhether stocks are being moved. The structure of the overviews is otherwiseidentical.

Note: Transaction LS24 leads you directly to a list of all storage binsthat contain the selected material.

Another useful tool is the bin status report (transaction LX03), which givesyou an overview of various stocks in a warehouse or in individual storagetypes. From the bin status report, you can display individual storage binsand quants.

Note: You can adapt these stock overviews to your own requirementsusing the SAP List Viewer. You can hide columns that do not interestyou, while showing others. The exercises in this lesson will show youhow to work with this function.



Figure 54: Bin Status Report

If you are using fixed bin storage, you can analyze fixed bins and their stocksusing a separate report, the fixed bin information list (transaction LX29). Forexample, the system checks whether there are fixed bins that were not yetassigned to a material master, or whether materials are contained in a differentfixed bin than specified in the material master. You can also specifically selectall the empty bins in a storage type (transaction LS04).

Note: You can find other evaluations, such as document overviews fortransfer requirements and transfer orders, or analyses for inventoriesin Warehouse Management, under Information System in the LogisticsExecution area menu. This menu also contains the standard analysesfor warehouse controlling (evaluations of material and quantity flows).

Demonstration: Warehouse Activity Monitor

PurposeFirst demonstrate the full range of functions of the warehouse activitymonitor, before you start working with a preconfigured variant that onlyallows analysis of four of the seven objects. If there is general interest, you canalso show how to create a variant.



System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Call up the warehouse activity monitor for warehouse number 140,

without a variant.

Choose Logistics Execution → Information System → Warehouse →Warehouse Activity Monitor.

Choose Execute to perform the selection.

2. Briefly explain the individual warehouse activity monitor objects. Pointout that for most of the objects, you can restrict the search to activities forspecific movement types and/or storage types.

3. Go back to the initial screen and choose the variant LES001 before yourepeat the selection. The evaluation is restricted to unconfirmed transferorders, open transfer requirements, critical deliveries, and interim stockswith no movement.

4. Point out that the evaluation of the objects is not automatically updated.This means that you see the result of the last check, with entries for thedate and time.

Hint: Running the selection with large quantities of data canadversely affect system performance. This means that you mustexpressly ask for an update.

5. Make the system check all four objects:

Place the cursor on the first object, and from the menu choose Edit →Determine Data Again.

Choose Yes to confirm the prompt informing you that redetermining thedata might take a long time. The system updates the data. Repeat thisprocess for the other three objects. As a result, you should have twocritical transfer requirements and their corresponding critical interimstorage type stocks, which you can recognize from the red traffic lightsymbol.



6. Expand the display for both critical objects: The system shows you thatthey are two goods receipts for purchase orders, posted with movementtype 101. Close this view.

7. Call up the details for the first critical object by selecting the object andchoosing Detailed Display.

8. Create the transfer orders directly from the warehouse activity monitor.

Hint: At this point there are often protests from participants. Youshould expressly point out that the warehouse activity monitorwill check the critical documents and/or the fundamentalcontents before postings are completed. For example, for an opentransfer requirement it is possible that putaway has already takenplace, without a transfer order being created. Perhaps putawaywas just forgotten, and the goods are still in the goods receiptzone.

Select the documents and choose Create TO in Foreground: the systemcreates two transfer orders.

9. Return to the object display and repeat step 7 for the stocks in interimstorage types.

10. Since the transfer orders for putting these stocks away were alreadycreated in step 8, you can display the documents by choosing TransferOrders for Quant.

Hint: You only see one transfer order at a time.

11. Confirm the transfer orders from this screen: place the cursor betweenthe bin coordinates and the target quantity and choose Confirm in the

Background .

Hint: The system displays the next transfer order if you chooseafter confirming the document.



Demonstration: Warehouse Activity Monitor: Creating aVariant (Optional)

PurposeUsually, you do not use the �full� version of the warehouse activity monitor,but instead adapt it for specific monitoring purposes.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Call up the warehouse activity monitor for warehouse number 140.

Choose Logistics Execution → Information System → Warehouse →

Warehouse Activity Monitor, and then Execute .

2. Deselect all but two or three of the objects. If necessary, add a movementtype and/or storage type.

3. Save your selections as a variant.

Choose Goto → Variants → Save as Variant, enter a name for your variant,and specify its purpose by entering a description. To create the variant,save your data.

4. Call up the warehouse activity monitor again, but before you execute,use the input help for the Variant field to choose your variant.

Demonstration: Using the Bin Status Report

PurposeParticipants should learn about the bin status report, and how to change itusing the ABAP List Viewer.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administrator



User ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Call up the bin status report for warehouse number 140.

Choose Logistics Execution → Internal Warehouse Processes → Bins andStock → Display → Bin Status Report.

Enter your warehouse number 140 and choose Execute .

Hint: Because warehouse number 140 only contains storage binsin a few storage types, you do not need to restrict the selection tospecific storage types. If you do want to restrict the selection tocertain storage types, you can enter the key for shelf storage (002),bulk storage (004), or fixed bin storage (005).

2. Explain the display and demonstrate how to call up the storage binmaster record using the storage bin coordinates, and the quant datarecord using the material number.

3. Show how to include additional columns in the evaluation:

Choose Current Layout : the left hand screen area displays all thefields that are shown, the right hand side contains all the fields that arehidden. Select the Storage Section entry, and use Show Selected Fields tomove it into the list of shown fields. Choose Copy: the bin status reportnow displays the storage section.

4. (Optional) Save this layout:

Choose Settings → Layout → Save Layout. Enter values for the layout andits description. The layout is flagged as User-Specific, meaning that itcan only be used by you.

Hint: If you want other users to be able to use this layout, youmust remove theUser-Specific indicator and start the description ofthe variant layout with a diagonal slash (for example, /SCM601).

5. Call up the bin status report again, but before you execute the selection,choose your layout.





219 Exercise 18: Warehouse Activity MonitorExercise Duration: 20 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Use the warehouse activity monitor

Business ExampleYou need to check whether all putaway and stock removal activities werecompleted within the planned time.



TaskCall up the warehouse activity monitor and complete any missing processsteps.

1. Call up the warehouse activity monitor for your warehouse number 1xx(140 + group number ##) with variant LES001.

2. Make the system check all four objects for the variant. To do this, youmust update the data.

Caution: It is not sufficient to just choose Refresh . You musttell the system to update the data by choosing Edit → DetermineData Again.

3. Display the details for the first critical object (open transfer requirements).Create the transfer orders for these transfer requirements in thebackground.

4. Return to the object display. Display the details for the interim storagetype stocks and process the open activities.



Solution 18: Warehouse Activity MonitorTaskCall up the warehouse activity monitor and complete any missing processsteps.

1. Call up the warehouse activity monitor for your warehouse number 1xx(140 + group number ##) with variant LES001.

a) Choose Logistics Execution → Information System → Warehouse →Warehouse Activity Monitor.

b) Enter your warehouse number 1xx (140 + group number ##) andenter variant description LES001 in the Variant field.

c) To execute the selection, choose Execute .

2. Make the system check all four objects for the variant. To do this, youmust update the data.

Caution: It is not sufficient to just choose Refresh . You musttell the system to update the data by choosing Edit → DetermineData Again.

a) Place the cursor on the first object and choose Edit → DetermineData Again.

b) Choose Yes on the confirmation prompt. The system updates thedata.

c) Repeat this process for the other three objects. Afterwards,you should have two critical transfer requirements, and thecorresponding critical interim storage type stocks (red traffic lightsymbol next to the objects affected).

3. Display the details for the first critical object (open transfer requirements).Create the transfer orders for these transfer requirements in thebackground.

a) Select the object and choose Detailed Display.b) Select the documents and choose Create TO in Background. The

system creates two transfer orders.




4. Return to the object display. Display the details for the interim storagetype stocks and process the open activities.

a) Select the object and choose Detailed Display.b) Since the transfer orders for putting these stocks away were already

created in step 3, you can display the documents by choosingTransfer Orders for Quant.

c) Confirm the transfer orders from this screen. Place the cursorbetween the bin coordinates and the target quantity and choose

Confirm in the Background .

Hint: The system displays the next transfer order if you exitthe document display after confirming the document.





223 Exercise 19: Adapting the WarehouseActivity Monitor Using the SAP List Viewer(Optional)Exercise Duration: 10 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Adapt the warehouse activity monitor using the SAP List Viewer

Business ExampleThewarehouse activity monitor should be adapted to individual requirements.For example, in future the monitor should also show the storage sections.



TaskUse the SAP List Viewer to adapt the warehouse activity monitor so that youcan see specific additional information.

1. Call up the warehouse activity monitor for your warehouse number 1xx(140 + group number ##).

2. Choose Current Layout in order to select fields that were previouslyhidden.

Hint: To access the Current Layout, choose .




3. Save your new variant so that you can use it again later.

Hint: When you call up the warehouse activity monitor again,you can select your layout on the selection screen.



Solution 19: Adapting the WarehouseActivity Monitor Using the SAP List Viewer(Optional)TaskUse the SAP List Viewer to adapt the warehouse activity monitor so that youcan see specific additional information.

1. Call up the warehouse activity monitor for your warehouse number 1xx(140 + group number ##).

a) Choose Logistics Execution → Internal Warehouse Processes → Bins andStock → Display → Bin Status Report.

b) Enter your warehouse number 1xx and choose Execute .

2. Choose Current Layout in order to select fields that were previouslyhidden.

Hint: To access the Current Layout, choose .

a) Select some of the hidden fields, such as Storage Section or StorageBin Type, and choose Show Selected Fields to copy them into theselection of displayed fields.

Hint: To search for specific fields using their short text,

choose Find .

b) Finish adapting the monitor by choosing Copy. The selected fieldsnow appear as additional columns in the current warehouse activitymonitor.

Hint: You can also change the position and width of thesecolumns using the SAP List Viewer.




3. Save your new variant so that you can use it again later.

Hint: When you call up the warehouse activity monitor again,you can select your layout on the selection screen.

a) Choose Settings → Layout → Save Layout.b) Enter a name for your layout, such as SCM601-##, and enter a

description for the variant. Choose Save.



Lesson Summary

You should now be able to:� Describe the range of functions of the warehouse activity monitor� Use the warehouse activity monitor to monitor warehouse processes� Use the bin status report, indexes of empty storage bins, and capacity

evaluations



Lesson:227

Supply Chain Event ManagementLesson Duration: 25 minutes

Lesson OverviewThe SAP Event Manager, a part of Supply Chain Event Management (SCEM),is a new tool within mySAP Supply Chain Management (mySAP SCM), which isused to monitor and evaluate complex procurement and SD processes. Thislesson will give you an overview of its range of functions.


� Explain the function of the SAP Event Manager� Name the uses of the SAP Event Manager in the supply chain� Describe a typical case for using the SAP Event Manager

Give an overview of the range of functions in the SAP Event Manager. Theessential settings are comparatively complicated. This lesson is thereforelimited to showing the basic elements of the system. For the same reasons asin lesson �Transportation Planning with SAP APO�, we have not provided asuggested demonstration. If you would still like to demonstrate the SAP EventManager, you could use one of the IDES scenarios (see note at the end of thelesson). A customer course on this topic should be available in the near future.

Business ExampleIDES AG wants to be able to monitor logistics processes outside of its owncompany. If transportation problems occur, the responsible departmentshould be informed so that they can inform the customer as soon as possible.

PurposeThe SAP Event Manager is part of Supply Chain Event Management (SCEM),which is used within mySAP SCM to coordinate processes.

Note: It is a separate system. This means that activities in theapplication systems are not affected when you use the SAP EventManager.


SCM601 Lesson: Supply Chain Event Management

Figure 55: Position within the mySAP SCM Solution

SAP Event Manager should be used to make the process flow of logisticsprocesses more transparent. The SAP Event Manager should also be used tomonitor completion of object-related, accessible process steps, and to evaluatethe quality of the execution. The advantage to using the SAP Event Manageris the ability to involve all parties included in the process, in monitoring andcontrol. The responsible employee reacts to these messages, for example, bynotifying the customer affected. Customers confirm the receipt of deliveries,but can also collect advance information about the processing status of theirorders.

The openness of the SAP Event Manager is clearly an advantage in comparisonto data with different origins. Vendors, service providers, and customers (inother words, external parties) can use the Internet as a medium for exchanginginformation with the Event Manager. Within a company, application systems -such as an SAP R/3 system - can pass on data to the Event Manager using apreconfigured interface. External systems can communicate with the EventManager using Electronic Data Interchange (EDI) or XML. Data can be enteredusing mobile devices, scanners, and on-board computers. Speech recognitionis also possible for telephone messages. The Event Manager�s reactions aresent, for example, by e-mail or SMS.



Process FlowWhen you create an application object, such as a sales order or a purchaseorder, the application system checks the relevance of this object for SCEM. Ifthe object is relevant, the SAP Event Manager creates an event handler for theobject. The event handler represents the application system object in the SAPEvent Manager. It contains all the information required in order to monitorthe application object throughout the process, for example, planning data,identification numbers, and addresses of parties involved in the process.

Event handlers are therefore created in relation to the object�s relevance. Forthis to function, you define event handler types in Customizing for the SAPEvent Manager. At event handler type level, you specify which rule set isused for handling events, and which event statuses (such as "Delayed" or"Arrived") are possible.

Figure 56: Application Object and Event Handler

Logistics process monitoring is controlled by events. The SAP Event Managerrecognizes four types of events:

� Expected events� Overdue events� Unexpected events� Unreported events



Expected events occur within the time frame planned for them. For example,an outbound delivery reaches the customer on the agreed date. Overdueevents are expected events that do not occur within their planned time frame.Unexpected events, such as traffic jams, accidents, or machine breakdowns,are usually the reason for expected events turning into overdue events.Unreported events in the SAP Event Manager are expected events for whichthere is no message concerning its (timely or delayed) occurrence. Forexample, if an acknowledgement of goods receipt from the customer wasdefined as an expected event within the delivery process, and the customerdoes not send this acknowledgement even though he/she has received thegoods, then the expected event becomes an unreported event. The user cansee from the event handler which events are expected in the process, and thetime frame in which they are expected to occur.

Note: You predefine events in Customizing for the SAP Event Manager.You specify deadlines and dependencies on other events for eachindividual event.

In Customizing you only define expected events. Using the deadlines, internaldependencies, and the checking rules, the system can classify expected eventsas regular, overdue, or unreported.

The SAP Event Manager is informed via event messages when events occur.These messages can be entered in either the application system (for example,during document processing), directly in the SAP Event Manager, or in anexternal system. The SAP Event Manager offers amonitor for monitoring theevents, which continuously informs the user about the current progress. InCustomizing for the SAP Event Manager, you specify how the system reactsto various types of events. For example, a message reporting a delay due tothe forwarding agent could result in an e-mail to the ship-to party, informingthem of the delay.

Note: To check event messages and to control follow-on activites, youdefine rule sets in Customizing.

In the future, to simplify configuration of the SAP Event Manager, scenarioswill be offered as models. A relevant scenario already exists for a goods issueprocess using outbound deliveries and shipments.



According to information from Product Management, in future there will besingle process elements as templates, instead of the "Visibility Scenarios".However, they will only be available at a cost on CD-ROM or as a downloadfile. These process modules should be used as the basis for configuringmore complex process control in the SAP Event Manager. Depending on thecombination of modules, it should be possible to use the same module indifferent processes.

If you want to evaluate the processing that is monitored and controlled inthe SAP Event Manager from different viewpoints (for example, reliability ofservice providers), you can use an interface to the SAP Business InformationWarehouse (SAP BW) to transfer the data relevant for an analysis. However,you can also use a different data warehouse system.

You can find suggested demonstrations for supply chain event managementin SAPNet under alias /ides. You can create your own user for the SAP EventManager and SAP R/3 demonstration systems.



231 Exercise 20: Supply Chain EventManagementExercise Duration: 10 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Obtain information about Supply Chain Event Management

Business Example

This exercise was included in the course for mainly formal reasons. From thecourse author�s point of view, it makes more sense to have no participantactivities in relation to the lesson �Supply Chain Event Management� as longas there is no customer course covering this topic.

You want to obtain information from publicly accessible sources about SCEMas a part of mySAP SCM.

System DataSystem: Not applicable.Client: Not applicable.User ID: Not applicable.Password: Not applicable.

CATT: Not applicable.Set up instructions: Not applicable.

TaskUse the Internet to gain an overview of SCEM.

1. Call up SAP�s Web site (www.sap.com), select a country version, andchoose Solutions to find more detailed information on Supply ChainManagement.




2. Where can you find more information on this topic?



Solution 20: Supply Chain EventManagementTaskUse the Internet to gain an overview of SCEM.

1. Call up SAP�s Web site (www.sap.com), select a country version, andchoose Solutions to find more detailed information on Supply ChainManagement.

a) To startMicrosoft Internet Explorer, choose Start → Training@sap fromyour desktop. Enter the URL www.sap.com in the address line toaccess SAP�s homepage.

b) Choose Country Sites in the upper-right screen area. On the nextscreen, choose the country version you want to use.

c) Under Solutions, you can see a link to the mySAP SCM solution.From there, choose Key Capabilities (in the topic list on the right sideof the screen) to find a link to Supply Chain Event Management.

2. Where can you find more information on this topic?

Answer: You can find more material using the �Information Material�link in the Download Center. SAP customers and partners can alsoaccess the SAP Service Marketplace at service.sap.com.



Lesson Summary

You should now be able to:� Explain the function of the SAP Event Manager� Name the uses of the SAP Event Manager in the supply chain� Describe a typical case for using the SAP Event Manager


SCM601 Unit Summary

Unit SummaryYou should now be able to:� Describe the range of functions of the warehouse activity monitor� Use the warehouse activity monitor to monitor warehouse processes� Use the bin status report, indexes of empty storage bins, and capacity

evaluations� Explain the function of the SAP Event Manager� Name the uses of the SAP Event Manager in the supply chain� Describe a typical case for using the SAP Event Manager


Unit Summary SCM601




1. Which of these objects are warehouse activity monitor objects?Choose the correct answer(s).

A Open deliveriesB Open purchase ordersC Negative stocksD Unconfirmed transfer ordersE Blocked storage binsF Stocks in interim storage types

2. The warehouse activity monitor checks its objects across all warehousenumbers.Determine whether this statement is true or false.

TrueFalse

3. What is an event handler?

4. Which types of events does the SAP Event Manager recognize?Choose the correct answer(s).

A Unexpected eventsB Necessary eventsC Overdue eventsD Expected eventsE Unreported events



236Answers

1. Which of these objects are warehouse activity monitor objects?

Answer: A, C, D, F

Open deliveries, negative stocks, unconfirmed transfer orders, and stocksin interim storage types are all warehouse activity monitor objects.

2. The warehouse activity monitor checks its objects across all warehousenumbers.

Answer: False

The warehouse activity monitor always checks the objects in onewarehouse number.

3. What is an event handler?

Answer: An event handler represents an object from an applicationsystem in the SAP Event Manager, for example, a sales order in SAP R/3.It contains all the information required for monitoring processes.

4. Which types of events does the SAP Event Manager recognize?

Answer: A, C, D, E

The SAP Event Manager recognizes expected, overdue, unexpected, andunreported events.


Unit 7237 Additional Functions

Handling Unit Management, which you also discuss in this unit, was designedfor all of Logistics. In this unit therefore, you will be dealing with topicsoutside Logistics Execution. However, because Handling Unit Management isbased in the delivery process, it is suitable for inclusion in this course. In thepast we have seen that attending course LO140 is good preparation for themore specialized course SCM660 (Handling Unit Management), particularlydue to the knowledge gained about the process. The lesson on �simple�packing fulfills the prerequisites for understanding the lesson on HandlingUnit Management.

Unit OverviewIn Logistics Execution, you can map logistics processes using variousadditional functions. This unit will introduce a selection of these additionalfunctions.


� Make the required settings for packing at material master level� Use the packing transaction in outbound deliveries� Use the packing station� Explain the term �handling unit�� Describe the range of functions of Handling Unit Management� Create a handling unit without reference to an object� Use the Handling Unit Monitor� Name the uses of mobile data entry� Describe the radio frequency (RF) solution in SAP R/3


Unit 7: Additional Functions SCM601

� Use the RF monitor

Unit ContentsLesson: Packing... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .315

Demonstration: Assigning Packing-Relevant Groupings in the MaterialMaster .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .318Demonstration: Packing in the Outbound Delivery... . . . . . . . . . . . . . . . . . . . . . .321Demonstration: Packing Station .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .323Exercise 21: Packing in the Outbound Delivery ... . . . . . . . . . . . . . . . . . . . . . . . . .325Exercise 22: Packing Station (Optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .329

Lesson: Handling Unit Management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .334Demonstration: Creating a Handling Unit without Reference to anObject .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .340Procedure: Creating a Handling Unit Without Reference to an Object ..342Exercise 23: Handling Unit Management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .343

Lesson: Mobile Data Entry .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .347Demonstration: Mobile Data Entry in the Warehouse ManagementSystem .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .352Procedure: Putaway: System-Guided (One Transfer Order Item) .. . . . . .355Procedure: Stock Removal/Replenishment: System-Guided (One TransferOrder Item) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .356


SCM601 Lesson: Packing

Lesson:239

PackingLesson Duration: 25 minutes

Lesson OverviewThis lesson deals with the option of packing as a substep in the shippingprocess in SAP R/3. The outbound delivery contains a packing transactionthat you can use to construct packages (handling units). To be able to use thepacking transaction functions, you must make settings at master data leveland at Customizing level.


� Make the required settings for packing at material master level� Use the packing transaction in outbound deliveries� Use the packing station

In this lesson, demonstrate the packing transaction in the outbound processand - as an alternative for entries made by scanner - the packing station. Ifyou use this lesson in the context of the course, you should place particularemphasis on the differences between �simple� packing as it is demonstratedhere in the outbound process, and packing in Handling Unit Management.Handling Unit Management is covered in a separate lesson in this course.

The packing transaction is also available in the inbound process.

Business ExamplePacking of goods picked for outbound deliveries should be mapped in thesystem. The employees that perform this task at the packing station should beable to use scanners.



PresettingsDuring packing, material items in the outbound delivery are linked topackaging materials. Packaging materials are also managed in the system asmaterials with their own master records. You create these links in the packingtransaction for the outbound delivery.

Note: When you create material master records for new packagingmaterial, it is advisable to use material type Packaging (VERP).This material type contains several packing-relevant fields, such asmaximum weight and maximum volume.

Some participants might be used to the term shipping material, which wasused for packaging materials until SAP R/3 4.6B in SAP R/3. As of SAP R/34.6C the correct term is packaging material.

Figure 57: Packing in the Outbound Delivery



The system only allows as packaging materials those to which a packagingmaterial type has been assigned in the master record. Packaging materialtypes are defined in Customizing for Shipping. You group packagingmaterials according to their physical properties, such as boxes of a certain size,or pallets of a certain type.

Note: You assign packaging material types to the material record for apackaging material in the Sales: General/Plant view.

Materials to be packed can also be grouped together in the same way. To dothis, you can use theMaterial Group: Packaging Material, which you createin Customizing for Shipping in the same way as the packaging material types.Material groups for packaging materials group together materials that shouldbe packed in the same way.

Note: You enter the material group for packaging materials in the BasicData 1 view in the material master.

Packaging material types and material groups for packaging materials areassigned to each other in Customizing. Using these assignments as a basis,the system can check during packing whether the selected packaging materialis allowed for the material to be packed. In the packing transaction, userscan choose to display the packaging materials allowed for the material to bepacked, and can then select a material from this list.

Figure 58: Packing-Related Groupings



In packing for the outbound delivery, you can construct several levels, forexample, if goods to be packed should first be packed into boxes, and theboxes should then be packed onto a pallet. If, during packing, the systemshould check at the second level whether the selected packaging material isallowed, or if the user wants a system proposal for the packaging material,you must assign a separate material group for packaging materials to thepackaging materials in the material master.

Demonstration: Assigning Packing-Relevant Groupingsin the Material Master

Purpose

Show the material master fields where you assign the packing-relevantgroupings.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Display the material master record for the material to be packed,

LES02-00.

Choose Logistics Execution → Master Data → Material → Material →Display → Display Current Status.

Enter material number LES02-00 and confirm with Enter.

2. Select the Basic Data 1view: in the Packaging Material Data area youcan see the Material Group: Packaging Material field. GroupM020(Monitors/on-board computers) is assigned.

3. Demonstrate the packaging-material-specific data for material PK-100(view Sales: General/Plant) for plant 1000: the packaging material belongsto the packaging material type V030 (Standard cartons medium), but atthe same time to a material group for packaging materials K010 (Cartonsmiddle).



Functions in the Packing TransactionIn the outbound delivery, choose Edit in the packing transaction to access ascreen divided into two parts; the upper half is for packaging materials orexisting packages, the lower half is for the materials to be packed. In thisscreen area, the system automatically proposes the delivery items that can bepacked.

Note: You specify the delivery item categories that can be packed, orthat must be packed, in Customizing.

Figure 59: Packing Transaction

You can define default packaging materials for the delivery items to pack,either by entering the material number or - where you have make the requisitepresettings (see above) - taking them from a list of allowed packagingmaterials. Packing itself is assigning packaging materials to materials to bepacked. There are three available options:

� Packing the largest possible quantity of the material to be packed� New package for each partial quantity of the material to be packed� Packing the total quantity of the material to be packed

If you choose the first option, the result is one package. The system packsthe given quantity until the weight and volume tolerances defined in thematerial master are reached. The gross weight of the material to be packedis compared to the allowed packing weight for the packaging material.



Remaining quantities are not packed. The other two options ensure that thetotal quantity of the material to pack is always packed. Either the user enters apartial quantity, or the system is permitted to distribute the total quantity. Thesystem distributes the quantity as equally as possible. Where necessary, it alsoconstructs a new package for any remaining quantities.

Note: The packing transaction contains similar options that enable youto pack packages further.

These procedures can be almost completely automated:

� You can store the customer�s packing requirements as a packing proposalin the order, and can then tell the system to copy this automatically intothe outbound delivery.

Automatic copying of packing proposals from the sales order is activatedin Customizing for Shipping, using the copying control for salesdocument - delivery.

� If you want to standardize packing because certain materials are alwayspacked in certain conditions in a certain way, you can create packinginstructions as master data.

Course SCM660 describes in detail how to use packing instructions. Packinginstruction determination is based on condition technique.

Handling Units Without Handling Unit ManagementA package that you create in the packing transaction for the outbound deliveryis described as a handling unit in the system. This term was introduced inSAP R/3 4.6C and replaces the previous term shipping unit. This renamingtook place within the new development of Handling Unit Management (SAPR/3 4.6C), which is a package management tool that covers the entire logisticsprocess. The range of functions of the shipping unit has been enhanced withpackage numbering according to international standards and the packingstation.

Note: As of SAP R/3 4.6C, packages can be numbered according toEAN 128. In Customizing, you can set up automatic assignment of aSerial Shipping Container Code (SSCC).



For more information on numbering packages, see the lesson �Handling UnitManagement�.

Using the packing functions in the outbound delivery process does not meanthat you implement Handling Unit Management. To be able to move packagesacross the entire process chain, you need to make various Customizingsettings. Changes to the process control can have substantial consequences,particularly at Inventory Management level.

Some parts of the packing station functions (transaction HUPAST) correspondto the packing transaction in the outbound process. However, the packingstation is designed for data entry using scanners, since it is aimed at userswho perform packing and should spend as little time as possible workingwith on-screen data. A further advantage of the packing station is the optionof connecting computer-controlled scales, in order to copy the actual weightof a package into the SAP R/3 system. This option is particularly useful wherethe weight of the material to be packed changes, but the outbound delivery tothe customer must contain an exact weight for each package.

Note: The scales are connected via a serial interface to the packingstation worker�s PC. The locally-installed program that controls thescales transfers the weights to the SAP-specific program �scale.exe�,which is also installed on the PC. The connection between SAP R/3 andthe scales is created using a Remote Function Call (RFC).

Demonstration: Packing in the Outbound Delivery

PurposeDemonstrate how to use the packing transaction.




1. Create a standard order (OR) for four pieces of material LES01-00 forcustomer T-SB1100. Enter any PO number in the relevant field on theoverview screen.


Enter the order type OR and confirm with Enter. On the overview screenfor the order, enter the ordering party T-S11B00, any purchase ordernumber, and at item level enter the material number LES01-00 with anorder quantity. Confirm your entries with Enter.

2. Deliver the order by choosing the follow-on function Deliver. Yourshipping point has the key X000.

From the order menu, choose Sales Document → Deliver: the system takesyou directly to transaction VL01N (Create an Outbound Delivery as a SingleDocument with Reference to a Sales Order).

Hint: If the proposed selection date is today�s date, move itforward by one week.

3. Display the allowed packaging materials in the packing transaction forthe outbound delivery.

On the overview screen, choose Edit → Pack. Select the material line andin the packing transaction choose Extras → Allowed Packaging Material.

Hint: If you choose the padded box PK-100, later you can packtwo pedestals together which results in two handling units.

The system assigns the empty package an identification number.

Hint: In the demonstration example, packages are numberedaccording to EAN 128. The type of numbering is dependant onthe packaging material type for the selected packaging material.

4. First, test simple packing.

Select the material line and package and choose Pack : the paddedbox does not have enough capacity, meaning that two pieces of thematerial are not packed.

5. Empty the handling unit.



Select the handling unit and choose HU → Empty.

6. In this second test, use the option New HU for Partial Qty of Material. Packtwo pedestals into each padded box.

Change the partial quantity to 2. Select the material line and handlingunit again, then choose New HU for Partial Qty of Material, or from themenu choose Edit → Pack → New HU for Partial Qty of Material).

7. Go back to the overview screen for the outbound delivery: the systemhas added a delivery item for the packaging material.

Hint: This means that the goods issue posting will reduce thestocks of the packaging material.

Demonstration: Packing Station

PurposeEmphasize that the packing station is another form of the packing transactionfor the outbound delivery. Here too, packaging materials and materials to bepacked are linked to each other. The transaction was designed for scannerentries. In the demonstration you will have to enter data using the keyboard.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Create a sales order with the data from the first demonstration. Deliver

this order.

For menu paths and description, see points 1 and 2 above.

2. Create a transfer order for the outbound delivery in the background.Use the follow-on function in the menu (Follow-On Functions → CreateTransfer Order). In the Foregrnd/Backgrnd field, choose Background andconfirm with Enter.

Note: You do not need to confirm the transfer order, since youare using Lean Warehouse Management.



3. Call up the packing station for processing the delivery.

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery → Packing → Packing Station.

Select the packing station type PACK W/DELIVERY.

4. Enter the outbound delivery document number in the Delivery field (ifnecessary, use the input help), and confirm with Enter. The cursor movesto the Handling Unit field.

5. Enter the material number for the packaging material (PK-100) in thisfield. After you confirm this entry, the system creates an empty handlingunit, into which you pack material LES01-00 in the next step.

Hint: Instead of the packaging material, you can enter thenumber of an existing empty handling unit.

6. In the Material/Handling Unit field, enter the material number of thematerial to be packed (LES01-00). Confirm your input with Enter andin the Quantity field enter the number of pieces to pack (2). The systeminforms you that the material has been packed.

7. Pack the remaining two pieces of the material in the same way. Save yourinput. When you save, the data in the outbound delivery is updated.

Choose Goto → Process Other HU.

Hint: If you want to create a large number of similar handlingunits, you can copy the reference handling unit by choosing Edit→ Duplicate HU.

8. Display the outbound delivery once more, in order to check it: bothpackages have now been assigned.



245 Exercise 21: Packing in the OutboundDeliveryExercise Duration: 15 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Pack material in the outbound delivery

Business ExamplePC World Stuttgart KG orders four bases for flat screen monitors. These basesshould be packed in padded cartons before being shipped.



TaskCreate a sales order, deliver the order, and pack the material to deliver inthe outbound delivery.

Hint: To reduce the time needed for this exercise, no picking isperformed.

1. Create a standard order (OR) for four pieces of material LES02-## forcustomer T-S11B##.

2. Deliver the order by choosing the follow-on function Deliver. Yourshipping point has the key X0##.





4. Pack material LES02-## into packaging material PK-100.

Hint: If you select packaging material PK-100, you can pack up tothree pieces of material LES02-## together.

5. Before you save, check the overview screen for your outbound delivery.



Solution 21: Packing in the OutboundDeliveryTaskCreate a sales order, deliver the order, and pack the material to deliver inthe outbound delivery.

Hint: To reduce the time needed for this exercise, no picking isperformed.

1. Create a standard order (OR) for four pieces of material LES02-## forcustomer T-S11B##.

a) Choose Sales and Distribution → Sales → Order → Create.

If the system does not make a suggestion, enter the Order Type ORand confirm with Enter.

b) Enter ordering party T-S11B## and any purchase order numberin the relevant field on the overview screen. In theMaterial field,enter your material number LES02-##, and in the Order Quantityfield, enter 4. Do not save yet.


a) From the order menu, choose Sales Document → Deliver. The systemtakes you directly to transaction VL01N (Create an Outbound Deliveryas a Single Document with Reference to a Sales Order).

b) If the proposed selection date is today�s date, move it forward byone week.


a) Choose Pack , or from the menu on the overview screen, chooseEdit → Pack.

b) Select the material line and in the packing transaction choose Extras→ Allowed Packaging Material.




4. Pack material LES02-## into packaging material PK-100.

Hint: If you select packaging material PK-100, you can pack up tothree pieces of material LES02-## together.

a) Select the material line and handling unit, then choose New HU IfFull, or from the menu, choose Edit → Pack → New HU If Full.

b) This results in two handling units.

5. Before you save, check the overview screen for your outbound delivery.

a) A delivery item has been added for the packaging material.b) Save your input.



249 Exercise 22: Packing Station (Optional)Exercise Duration: 10 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Use the packing station as an alternative to the packing transaction in the

outbound delivery

Business ExamplePC World Stuttgart KG orders four bases for flat screen monitors. These basesshould be packed in padded cartons before being shipped.


CATT: NoneSet up instructions: None

TaskCreate a sales order, deliver the order, and pack the material to deliver usingthe packing station, and not the method from exercise 1.

1. Create a sales order using the data from the first exercise (four pieces ofmaterial LES02-## for customer T-S11B##).


3. Pick the goods for the outbound delivery by choosing Follow-OnFunctions.

4. If the system does not propose outbound delivery document number,you can use the input help for the Delivery. Call up the packing stationfor processing the delivery.

5. Pack your material LES02-## as two pieces in each padded carton(PK-100).




6. Call up and check the outbound delivery again. In the packingtransaction, check whether the handling units created using the packingstation actually appear.



Solution 22: Packing Station (Optional)TaskCreate a sales order, deliver the order, and pack the material to deliver usingthe packing station, and not the method from exercise 1.

1. Create a sales order using the data from the first exercise (four pieces ofmaterial LES02-## for customer T-S11B##).

a) Choose Sales and Distribution → Sales → Order → Create.b) Enter any PO number in the relevant field on the overview screen.


a) From the order menu, choose Sales Document → Deliver.b) If the proposed selection date is today�s date, move it forward by

one week.

3. Pick the goods for the outbound delivery by choosing Follow-OnFunctions.

a) In the outbound delivery, choos from the menu Follow-On Functions→ Create Transfer Order.

b) In the Foregrnd/Backgrnd field, choose Background and confirm withEnter.

c) Confirm the transfer order in the background. Choose LogisticsExecution → Outbound Process→ Goods Issue for Outbound Delivery →Picking→ Confirm Transfer Order → Single Document → In One Step.

4. If the system does not propose outbound delivery document number,you can use the input help for the Delivery. Call up the packing stationfor processing the delivery.

a) Choose Logistics Execution → Outbound Process → Goods Issue forOutbound Delivery → Packing → Packing Station.

b) Select the packing station type PACK W/DELIVERY.




5. Pack your material LES02-## as two pieces in each padded carton(PK-100).

a) Enter the outbound delivery document number in the Delivery fieldand confirm with Enter. The cursor moves to the Handling Unit field.

b) Enter the material number for the packaging material in this field.After you confirm this entry, the system creates an empty handlingunit, into which you pack material LES02-##.

c) In theMaterial/Handling Unit field, enter the material number ofyour material to be packed (LES02-##). Confirm your input withEnter and in the Quantity field, enter the number of pieces to pack(2). The system informs you that the material has been packed.

d) From the menu, choose Goto → Process Other HU in order to packfurther quantities of the material.

e) Pack the remaining two pieces of the material in the same way.Save your input.

Hint: When you save, the system updates the data in theoutbound delivery.

6. Call up and check the outbound delivery again. In the packingtransaction, check whether the handling units created using the packingstation actually appear.

a) Choose Logistics Execution → Outbound Process → Goods Issue forOutbound Delivery → Outbound Delivery → Change Document.

b) To access the packing transaction in the outbound delivery, choose

Pack , or from the menu, choose Edit → Pack.



Lesson Summary

You should now be able to:� Make the required settings for packing at material master level� Use the packing transaction in outbound deliveries� Use the packing station



Lesson:253

Handling Unit ManagementLesson Duration: 25 minutes

Lesson OverviewThe aim of this lesson is to introduce the basic principles of Handling UnitManagement, which is a tool for managing packages along the entire logisticsprocess.


� Explain the term �handling unit�� Describe the range of functions of Handling Unit Management� Create a handling unit without reference to an object� Use the Handling Unit Monitor

Handling Unit Management is a complex bundle of functions. You willonly be able to introduce the basics during this lesson. Participants shouldrecognize the adavantages of Handling Unit Management, but at the sametime should be aware that implementing this solution can have severeconsequences for inventory management and process control in Logistics.Usually, some participants have already heard of handling unit management.The preconceptions do not always correspond to the facts.

If several participants already work (or have worked) with shipping units, itis important to explain the differences between this �old type� of packageand the handling unit.

Business ExampleIDES AG is looking for ways to map packages in the system, and move themacross and throughout the entire supply chain.

DefinitionA handling unit is a unit consisting of material to pack and packagingmaterial, which is uniquely identified using a number. It can be usedthroughout the entire logistics process, and can also be used outside yourown SAP R/3 system as required. This option of using handling units across


SCM601 Lesson: Handling Unit Management

processes constitutes the main difference between handling units and their�predecessors�, shipping units. A shipping unit is a unit that is generated bypacking in the delivery. This means it can only be used in the delivery process.

Note: In SAP R/3 4.6C, the termshipping unit was replaced by handlingunit. Therefore, all units generated by packing are called �handlingunits� in the system.

Figure 60: Handling Unit

At this point, some participants ask about storage units, which are unitsconsisting of a load carrier and a material, and are therefore similar to handlingunits. However, storage units can only be used within a subapplication,specifically the Warehouse Management System.

Handling Unit Management was developed to simplify the technical systemprocessing of logistics processes. Various material movements are performedwith reference to packages. Usually, it is sufficient to enter the identificationnumber of the handling unit. You can use this identification number atany time to call up detailed information about the contents and packaging.Each handling unit also has a �history�, in other words a cross-process,chronological documentation of all its movements.



The handling unit identification number can be unique either within a client,or across systems. If the number should only be unique at client level, numberassignment is made according to number ranges. To uniquely identify thehandling unit in the entire SAP R/3 system as well as outside the systemboundaries, we use a Serial Shipping Container Code (SSCC). The systemalso uses number ranges here, but with the addition of other elements.

Note: The SSCC is part of the coding standards EAN 128 of EuropeanArticle Numbering International. It is an eight-character number usedto identify logistics units. The aim is to identify a package for at leastone year worldwide, using its SSCC.

Course SCM660 discusses the numbering of handling units in detail. Youcan find detailed information in the instructor�s handbook for the course.There is a range of good information about the coding system on the EANInternational Web site: www.ean-int.org.

Consequences for Inventory ManagementIn contrast to the old shipping unit, the handling unit is the inventorymanagement object (and not the material packed in it). This meansthat handling units are always inventory-managed in a separate storagelocation. This storage location is flagged in Customizing for Handling UnitManagement as subject to handling unit management. This means that it canonly take in packed stocks. Handling units can only be stock in a handlingunit storage location. A partner storage location, which is not subject tohandling unit management, is assigned to each handling unit storage location.This structure is necessary because packing and unpacking in HandlingUnit Management always cause storage-location-to-storage-location postingchanges. The following figure illustrates this basic procedure:



Figure 61: Packing and Unpacking as Posting Change Activities

When you pack an unpacked material, a posting change takes place froma non-handling-unit-managed storage location to a handling unit storagelocation. If you unpack a handling unit (or a partial quantity), the systemtransfer posts this material quantity into a non-handling-unit-managedstorage location.

Note: The non-handling-unit-managed storage location does notnecessarily have to be the partner storage location of the handling unitstorage location. If there is no default storage location, the systemuses the partner storage location.

In most posting steps you cannot enter a default storage location. This meansthat the system requires a partner storage location in order to perform thenecessary postings in the background.

For inventory management postings that affect packed material, you mustalways enter the handling unit involved. The posting must always refer to thetotal packed quantity.



Therefore, if you want to post only 10 out of 100 pieces of a material intoblocked stock from a handling unit, you must first unpack these 10 pieces.

Use in Logistics ProcessHandling Unit Management is a package management tool that can be usedthroughout the logistics process. You can implement this solution in nearly allLogistics subapplications in SAP R/3.

Figure 62: Process Overview

Goods procured externally are packed in the inbound delivery. However, youcan also adopt packages from vendors as handling units in your own system,using their identification numbers.

Note: Goods receipt processes with handling units must be executedusing inbound deliveries.



Material produced in-house is packed in production. You do not absolutelyneed to use the Warehouse Management system in connection with HandlingUnit Management, but it is possible. Packages are put away using transferorders.

You can supply Production with packed components. Here too, use ofthe Warehouse Management system is optional for material staging. Ifhandling units should be delivered to customers, you need to at least beusing Lean Warehouse Management if partial quantities have to be picked forthe outbound delivery from existing handling units. If the picking storagelocation is subject to handling unit management, the system does not permitpacking in the outbound delivery.

Note: However, if you are not using aWarehouse Management system,you can assign an entire existing handling unit to the outbounddelivery.

This fact often takes some getting used to for participants who performedpacking using previous releases of SAP R/3. However, this is an essential basicfeature of Handling Unit Management, which in certain circumstances canhave far-reaching effects on the general process. This means that you shoulddiscuss this issue during the course.

Using a transfer order, a pick handling unit is created in advance for thematerial quantity to pick. When the transfer order is confirmed, the pickhandling unit is assigned to the outbound delivery.

Staging of packed components for production functions in a similar way aswhen you use the Warehouse Management System, and need to removepartial quantities from existing handling units.

You can display handling units in the Handling Unit Monitor at any point inthe logistics process, regardless of their usage. The monitor also allows you tomake certain changes to handling units.



Demonstration: Creating a Handling Unit withoutReference to an Object

PurposeWhen you create a handling unit without an object reference, you can showthat packing in Handling Unit Management means a posting change from anon-handling-unit-managed storage location, to a handling-unit-managedstorage location. You can note that this is the reason why transaction HU02 iscomparable to parts of transaction MB1B (Transfer Posting). This note makesit easier to understand for participants with previous knowledge of InventoryManagement.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: None1. Check the stocks of material T-H-00 in plant 1200.

Choose Logistics Execution→ Internal Warehouse Processes → Bins and Stock→ Display → Total Stock per Material (Inventory Management).

Enter material number T-H-00 and plant 1200. Perform a selectionby choosing Execute . There are 20 pieces of the material in storagelocation 0001. This storage location is not managed using handling units.

2. Pack two pieces of the material onto pallet PK-HUM. A handling unitshould be created, which means that you must also enter the receivinghandling unit storage location.

On the General Header Data tab page, enter plant 1200 and the issuingstorage location 0001. On the Pack Material tab page, in the Materialto be packed area, enter material number T-H-00 and a total quantity2. In the Destination Storage Location column, enter the receivinghandling-unit-managed storage location 0005. Use packaging materialPK-HUM (All existing HUs screen area).

Hint: You can use the packing options Pack or New HU if Full. Thepackaging material PK-HUM can have two T-H-00.



3. Save the packing data. The system informs you that a material documenthas been generated. This material document is evidence of the postingchange in the system.

Caution: The posting change only covers the material to bepacked, not the packaging material. This means that the storagelocation stock for packaging material PK-HUM stays the same,even though after packing one pallet is part of a handling unitand is no longer for Unrestricted-Use, as suggested by the stockoverview. You can see this at the latest when you display thematerial document. If there are questions concerning inventorymanagement of the packaging material, refer to the fact that inpractice, handling units are generated as part of a process. In thedelivery, you can construct an item for the packaging material,so that the inventory management posting for the deliveryalways updates the stocks for the packaging material. In themanufacturing process, the packaging material could also beincluded in the bill of materials.

If there are questions concerning the management of returnablepackaging, you must refer participants to the industry solutionmySAP Automotive. The SAP R/3 standard system does notsupport returnable packaging processing for packaging materials.

4. Display the new handling unit in the Handling Unit Monitor.

Choose Logistics → Central Functions → Handling Unit Management →Handling Unit Monitor.

Go to the Contents tab page and make a selection using material T-H-00.Choose Execute . The system displays your handling unit. To displaythe handling unit details, place the cursor on the identification numberand press the left mouse button.



258Creating a Handling Unit Without Reference to an ObjectPrerequisitesHandling units are usually generated during the logistics process. However,you can also produce handling units by packing unpacked material outside aprocess.

Procedure1. From the SAP menu, call up the packing transaction for free packing.

Choose Logistics → Central Functions → Handling Unit Management →Processing Handling Units → Create and Change (General).

Hint: Since packing is essentially a posting changefrom a non-handling-unit-managed storage location to ahandling-unit-managed storage location, you must always enterthe issuing and receiving storage locations.

2. On the General Header Data tab page, enter the plant and the issuing(non-handling-unit-managed) storage location. Go to the Pack Materialtab page, and enter the material to pack, the quantity, and the receivinghandling unit storage location.

3. Now choose a suitable packaging material from the list of allowedpackaging materials, or enter a default packaging material. To displaythe list, select the material to pack and choose Extras → Allowed PackagingMaterial.

4. To assign the packaging material and material to be packed to each other,choose one of the four buttons between theMaterial to be packed and Allexisting HUs (available for packing) areas.

5. To create the handling unit(s), save your data. The system informsyou that the packing data was saved and that a material documenthas been created. This material document is evidence of thestorage-location-to-storage-location posting change.



259 Exercise 23: Handling Unit ManagementExercise Duration: 15 minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a handling unit without reference to an object

Business ExampleYour material warehouse contains unpacked pumps. You use Handling UnitManagement, and want to pack some of these pumps in order to createhandling units.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##.Password: initSet up instructions: None

TaskPack two pumps onto one pallet to create a handling unit.

1. Check the stocks of material T-H-## in plant 1200.

2. Pack two pieces of your material T-H-##onto one pallet (PK-HUM).

Hint: A handling unit should be created, which means that youmust also enter the receiving handling unit storage location 0005.

3. Save the packing data. What information does the system give you?What is the reason for this?

4. Display your handling unit in the Handling Unit Monitor. Perform aselection using material T-H-##.



Solution 23: Handling Unit ManagementTaskPack two pumps onto one pallet to create a handling unit.

1. Check the stocks of material T-H-## in plant 1200.

a) Choose Logistics Execution → Internal Warehouse Processes → Bins andStock → Display → Total Stock per Material (Inventory Management).

b) Enter material number T-H-## and plant 1200. Perform a selectionby choosing Execute . There are 20 pieces of the material instorage location 0001. This storage location is not managed usinghandling units.

2. Pack two pieces of your material T-H-##onto one pallet (PK-HUM).

Hint: A handling unit should be created, which means that youmust also enter the receiving handling unit storage location 0005.

a) Choose Logistics → Central Functions → Handling Unit Management→ Processing Handling Units → Create and Change (General).

On the General Header Data tab page, enter plant 1200 and theissuing storage location 0001. Delete any default values.

b) On the Pack Material tab page, in the Material to be packed area,enter material number T-H-## and total quantity 2 in the relevantfields. In the Destination Storage Location column, enter the receivinghandling-unit-managed storage location 0005. Confirm yourentries with Enter.

c) Enter packaging material PK-HUM in the All existing HUs (available forpacking) area, in the Packaging Materials field, and confirm with Enter.The system assigns an identification number (according to SSCC18).

d) Select the material line for the material to be packed and for thepackaging material, and choose one of the two packing optionsPack or New HU If Full. In the status line, you can see a messageinforming you that handling units have been created.




3. Save the packing data. What information does the system give you?What is the reason for this?

a) The system informs you that a material document has beengenerated.

b) The material document is evidence of the storage-location-to-storage-location posting change, which the system performed whenthe handling unit was created.

4. Display your handling unit in the Handling Unit Monitor. Perform aselection using material T-H-##.

a) Choose Logistics → Central Functions → Handling Unit Management→ Handling Unit Monitor.

b) Go to the Contents tab page and select handling units using materialT-H-##. Choose Execute . The system displays your handlingunit.



Lesson Summary

You should now be able to:� Explain the term �handling unit�� Describe the range of functions of Handling Unit Management� Create a handling unit without reference to an object� Use the Handling Unit Monitor


SCM601 Lesson: Mobile Data Entry

Lesson:263

Mobile Data EntryLesson Duration: 40 minutes

Lesson OverviewThis lesson will give you an overview of the range of functions in the mobiledata entry (MDE) solution for warehouses, which is integrated into thestandard SAP R/3 system.


� Name the uses of mobile data entry� Describe the radio frequency (RF) solution in SAP R/3� Use the RF monitor

Outline the possibilities for using the RF solution in SAP R/3. As of SAP R/34.6B, this solution allows direct data entry using mobile devices into SAP R/3(and from R/3 to mobile devices). In older releases, the data radio connectionusually works with IDocs.

Business ExampleFor cost reasons, IDES AG wants to cut down on paperwork as much aspossible. Putaway and stock removal operations should be reported usingscanners.

IntroductionMobile data entry is becomingmore commonplace in warehouse management.Material and storage bin data are entered using a barcode scanner, and arechecked by the system. The advantages of this procedure are obvious:

� Reduced error rate, because usually it is not possible to enter datamanually

� Increased processing speed� Constantly up-to-date stock information� Rapid training of new or temporary employees, since no previous

knowledge is required.



The warehousing mobile data entry solution available within LogisticsExecution is based on radio frequency (RF) technology. Users enter datadirectly into SAP R/3 using data frequency terminals, obtainable as eitherhandheld devices or as forklift terminals for mounting onto vehicles. Theseterminals usually consist of a display and a keyboard with an integrated barcode reader. There are also devices available that use touchscreen technology.Size, weight, details, and prices vary depending on manufacturer and model.

Note: The RF solution in SAP R/3 is not specific to any hardware. Thismeans you can use products from most manufacturers.

SAP works with suppliers of MDE hardware, such as Intermec, Symbol,Psion-Teklogix, Telxon, LXE.

FunctionsMobile data entry in Logistics Execution supports two types of radiofrequency terminals:

� Devices with graphical user interfaces� Devices with text-based user interfaces

Terminals with graphical user interfaces use the SAP Graphical User Interface(SAP GUI) for Windows. GUI devices are connected to SAP R/3. The screendisplay and size of the processing transactions is adjusted to the currentdevice functions, and allows the use of function buttons or pushbuttons.

Note: The SAP GUI is a program that connects a front end computerto a specific SAP system. It is the standard point of access to mostSAP solutions.

If you want to use terminals with a text-based user interface, you need to usean interface that can convert text displays into graphical displays, and viceversa. SAP R/3 standard systems therefore contain a suitable SAP standardinterface, the SAPConsole. It runs on the Windows NT platform. Theconnection to the hardware supplier�s subsystem is made using Telnet.

Note: Telnet is a program for making connections to any computerwithin a network, in order to execute programs on this computerwithout a graphical interface.



Some hardware suppliers, such as Psion-Teklogix, have developed their owncommunication protocols that they make available when you buy theirproducts.

Figure 63: Mobile Data Entry: Connection

Mobile data entry is an integrated solution, available as of SAP R/3 4.6B.



Use in WarehousesThe transactions for using the RF solution in the standard SAP R/3 system areset up for use within the Warehouse Management system. They cover nearlyall putaway and stock removal operations, and can also be used to pack, load,and inventory stocks. Yet it is relatively easy to enhance the solution byincluding additional functions.

Note: Customizing allows for user-specific screen and menumanagement, for example, adjusting the size of the screen displayand assigning specific transactions. There are also several availableuser exits for screen control. If required, you can also program newtransactions using ABAP. This means that the RF solution could beused outside the Warehouse Management system, if needed.

You can find all preconfigured RF transactions in the Object Navigator(transaction SE80) in package LMOB (Mobile Data Entry in WarehouseManagement).

In Customizing for Mobile Data Entry, you define queues, which are workinggroups that consist of similar activities grouped together. In this way, forexample, you can create a queue for the goods receipt and/or a queue for thegoods issue. These queues are assigned to both users and to documents to beprocessed. You can monitor the relationship between users and documentsin the radio frequency monitor. If the relationship is out of balance, you canmove users and documents from one queue to another using �Drag&Drop�.

Note: A traffic light icon helps you to recognize overloads immediately.In Customizing, you define the relationship between user andworkload, specifying when the system should view the relationship ascritical or not balanced.



Figure 64: Radio Frequency Monitor

Depending on the default settings, warehouse employees can selectdocuments to process using the document number (for example, fromdeliveries), or can work under �guidance.� This means that the systemproposes the next document in their queue for processing.

If you use storage unit management, you can also call up the transfer order forprocessing using the storage unit identification number.

The standard system supports all current bar code types, and permits the useof application identifiers (AI).

Note: Application identifiers are part of the UCC/EAN codingstandards. They are prefixes that flag the meaning and format of theirsubsequent codes. For example, AI 10 describes a batch number withup to 20 characters.



In Customizing, you must specify the bar code types that the system needs torecognize, and assign them to warehouse numbers. These settings are a partof MDE Customizing, in the SAP Reference Implementation Guide underLogistics Execution → Mobile Data Entry → Barcode.

Under certain circumstances, you can use interleaving to optimize processesin the warehouse. In this process, for example, a user has just performed aputaway. A stock removal is assigned for the user�s return journey in order toreduce the number of empty runs and deadheading.

There are separate RF transactions available for Handling Unit Management.

The procedures described below outline only a few of these transactions.The SAP Library contains step-by-step documentation about putaway, stockremoval, packing, loading, and identification operations.

Demonstration: Mobile Data Entry in the WarehouseManagement System

PurposeBriefly introduce the RF monitor and simulate a stock removal for anoutbound delivery, using mobile data entry.

System DataSystem: will be assigned by the training course administratorClient: will be assigned by the training course administratorUser ID: SCM601-##Password: init or personal passwordSet up instructions: Add a new entry for your user in the Customizingtable for assigning users to queues, by copying the entry for user SCM601-99.Choose Logistics Execution → Mobile Data Entry → RF Queue Management.Choose Assign Processor to Queues.

For delivery item category DLN, set the indicator Relevant for Picking. ChooseLogistics Execution → Shipping → Picking → Define Relevant Item Categories.

1. Call up the RF monitor in display mode.

Choose Logistics Execution → Internal Warehouse Processes → MonitorMobile Data Entry.

Your user name appears as the processor in the monitor.



2. For ship-to party T-S11B00, create an outbound delivery without orderreference (delivery type LO) for five pieces of material LES05-00.

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery → Outbound Delivery → Create → Single Document → WithoutOrder Reference.

Enter delivery type LO plus the various data, and confirm with Enter.

Shipping Point X000



Division 00

On the overview screen you can set the planned GI date as today�sdate + one week. Choose Enter to confirm the warning message thatthe distribution channel for the material is different from the defaultdistribution channel.

3. Create a transfer order for the outbound delivery in the background:

Choose Logistics Execution→ Outbound Process→ Goods Issue for OutboundDelivery → Picking → Create Transfer Order → Single Document.

In the Foreground/Backgrnd field, choose Background and confirm withEnter.

4. Take another look at the RF monitor. The transfer order you just createdis now assigned to queue PICKING01.

5. Use transaction LM00 (Mobile Data Entry) to confirm the withdrawal.

Choose Logistics Execution → Internal Warehouse Processes → Mobile DataEntry.

The logon screen appears, which could represent a radio frequencyterminal display.

6. Log on as a processor using the function button F1.

7. Process the transfer order for the outbound delivery under guidance fromthe system.



ChooseOutbound Process. On the next screen choose Picking/Replenishmentand then System-Guided Picking/Replenishment. The system shows youthe issuing storage type and storage bin (fixed bin storage 005 andstorage bin FIX-03), as well as the material number and material quantityaccording to the transfer order.

8. In order for the system to be able to check withdrawals, in the followingstep you enter part of the storage bin coordinates.

Hint: You specify the part of the bin coordinates that is used forverification, at master data level. To explain this connection to theparticipants, you can display the master record for issuing storagebin FIX-03. The verification field on the Storage Bin tab pagecontains the second part of the coordinates (03). This verificationfield can be filled separately for each master record, or in acollective run (Logistics Execution → Master Data → Warehouse →Storage Bin → Change → Single Bin or Verification Field Selection).

To verify the withdrawal, use the keyboard to enter the second part ofthe storage bin coordinates (03) into the field next to the bin coordinates.Save your entries using the F1 button.

9. To verify the withdrawal quantity, enter the picked material quantity inthe field next to the displayed quantity. Save again using F1. ChooseF4 to reach the next screen. You can see the destination storage typeand storage bin (storage type 916 and a dynamic storage bin, where thedocument number of the outbound delivery is the bin coordinates), aswell as the material data.

10. Save using F1. You see a message informing you that the system cannotfind any (more) transfer orders to process in your queue. Confirm thisinformation with OK and log off using F8.



268Putaway: System-Guided (One Transfer Order Item)UseThe system controls this putaway procedure. The user logs on, and thesystem decides which transfer order should be processed. Use system-guidedputaway if you want your employees� sort criteria and queue assignmentto be guided by the system.

Procedure1. Choose Inbound Process or Stock Transfer → Putaway → System-Guided

Putaway.

2. A screen appears showing the source data. The system works in thebackground. It decides which screens are displayed, and in whichsequence the transfer orders are processed.

3. Verify the data and choose F1 to save the source information in thedatabase. Choose F4 to reach the destination information screen.

4. Verify the data. Save the destination information to the database usingF1.

5. The system proposes the next transfer order for processing.



269Stock Removal/Replenishment: System-Guided (OneTransfer Order Item)UseThis stock removal procedure is controlled by the system. The user logson, and the system decides which transfer order should be processed. Usesystem-guided stock removal if you want your employees� sort criteria andqueue assignment to be guided by the system.

Procedure1. Choose Outbound Process or Stock Transfer → Picking/Replenishment →

System-Guided Picking/Replenishment.

2. A screen appears showing the source data. The system works in thebackground. It decides which screens are displayed, and in whichsequence the transfer orders are processed.

3. Verify the data and choose F1 to save the source information into thedatabase. Choose F4 to reach the screen for the destination data.

4. Verify the data and choose F1 to save the destination information intothe database.

5. The system proposes the next transfer order for processing.



Facilitated DiscussionThe participant activities were only included in the lesson for formal reasons.

Discussion QuestionsUse the following questions to engage the participants in the discussion. Feelfree to use your own additional questions.

Which advantages does mobile data entry in Warehouse Management have incomparison to standard methods of document processing?



Lesson Summary

You should now be able to:� Name the uses of mobile data entry� Describe the radio frequency (RF) solution in SAP R/3� Use the RF monitor


SCM601 Unit Summary

Unit SummaryYou should now be able to:� Make the required settings for packing at material master level� Use the packing transaction in outbound deliveries� Use the packing station� Explain the term �handling unit�� Describe the range of functions of Handling Unit Management� Create a handling unit without reference to an object� Use the Handling Unit Monitor� Name the uses of mobile data entry� Describe the radio frequency (RF) solution in SAP R/3� Use the RF monitor


Unit Summary SCM601




1. What is a packaging material type?

2. The packing station can be used as an alternative to the packingtransaction in the delivery.Determine whether this statement is true or false.

TrueFalse

3. What is the difference between a handling unit and a shipping unit?

4. What does SSCC stand for, and what does this term mean?

5. What is the function of the SAPConsole?



274Answers

1. What is a packaging material type?

Answer: Apackagingmaterial type is a category, defined in Customizing,that groups packaging materials according to their physical properties,for example, pallets with a certain size.

2. The packing station can be used as an alternative to the packingtransaction in the delivery.

Answer: True

The packing station can be used as an alternative to the packingtransaction in the delivery. It is particularly suited for data entry usingscanners.

3. What is the difference between a handling unit and a shipping unit?

Answer:

� The handling unit itself is the inventory management object.� It can be used throughout the entire logistics process.

4. What does SSCC stand for, and what does this term mean?

Answer: SSCC is the abbreviation for Serial Shipping Container Code.It is an internationally valid code for the identification of packages.

5. What is the function of the SAPConsole?

Answer: The SAPConsole converts graphical displays into text displays(and vice versa).


SCM601 Course Summary

Course SummaryYou should now be able to:

� Explain the organizational structures used in Logistics Execution� Create and maintain all relevant master data� Create the most important documents� Map goods receipt and goods issue processes in SAP R/3� Monitor these processes� Explain the basic functions of Transportation Planning/Vehicle

Scheduling (TP/VS) in the SAP Advanced Planner and Optimizer (SAPAPO)


Course Summary SCM601


IndexAAddition to existing stock,49, 186

Available, 110BBin status report, 284CCompany code, 36Confirmation control key,130

DDelivery split, 199Departure zone, 202EEvent, 302Event handler, 302GGoods issue posting, 172,183, 216

Goods receipt date, 50, 186Goods receipt posting, 52,88, 128, 143

Group, 221HHandling Unit Management,133, 320, 334, 352

IInbound delivery, 18, 128,143, 249, 338

Interim storage area, 34, 92,105, 132, 145, 172, 183, 281

Item category, 204, 319LLean WarehouseManagement, 220

Loading equipmentquantity, 64

Loading group, 200MMaster record, 17, 43

customer, 61, 68, 200material, 61, 88, 107, 185,200, 218, 316resource, 269route, 200, 255storage bin, 35, 108, 185,347vendor, 88, 131

Mixed storage, 49Movement type, 93, 282OOrganizational unit, 17, 32,199, 270

Outbound delivery, 18, 32,196, 216, 249, 270�271, 283,303, 315

PPackaging material, 316, 325,329, 334, 342

Palletization data, 63, 108,144

Pickingtwo-step, 222

Picking area, 35, 44, 186


Index SCM601

Plant, 36, 69, 89, 144, 200, 217Production supply, 175Purchase order, 88, 130Putaway strategy, 108QQuant, 47, 92, 105, 185

negative, 145, 172Queue, 350RRadio frequency, 348Route, 199, 255SSales document type, 197SAPConsole, 348Shipment document, 250,255

Shipment stages, 254Shipment type, 251Shipping condition, 69, 200Shipping notification, 129Shipping point, 32, 69, 199,217

Stock removal strategy, 185Storage bin, 35, 43, 108, 284,347dynamic, 94

Storage bin type, 44Storage condition, 217

Storage location, 36, 89, 105,131, 144, 171, 183, 197, 217,336, 342

Storage section, 33, 43, 107Storage type, 33, 43, 107, 185,282

Storage type indicator, 185Storage unit type, 64, 108TTransfer order, 18�19, 93,105, 129, 143, 172, 183, 190,197, 216, 257, 281, 339, 355automatic creation, 220confirm, 105, 146, 282create, automatic, 109create, direct, 109

Transfer order split, 186Transfer requirement, 19, 92,105, 172, 183, 190, 281

Transportation group, 202Transportation planningpoint, 33, 36

Transportation zone, 202WWarehouse number, 32, 43,62, 91, 105, 131, 144, 172,183, 197, 218, 282substructure, 33

Wave pick, 222


FeedbackSAP AG has made every effort in the preparation of this course to ensure theaccuracy and completeness of the materials. If you have any corrections orsuggestions for improvement, please record them in the appropriate place inthe course evaluation.
