1. Warehouse Management (Part 2) EGN 5622 Enterprise Systems Integration Spring, 2014

2. Warehouse Management Organizational Structure, Master Data, and Process Management and Control SAP Implementation

3. WM Part 2 Overview WM Process Management and Control
Logistics Execution: Goods Issue (outbound delivery)
Goods movement: Stock transfer and transfer posting
WM Physical inventory procedures

4. Logistics Execution - Process Overview

5. Goods Issue Process for Outbound Delivery Steps
LE: Logistics Execution

6. Goods Issue Process for Outbound Delivery
Outbound delivery is created with reference to sales order.
During creation of outbound delivery, a picking storage location is determined for each item in the outbound delivery. If the storage location has been assigned a warehouse number, the outbound delivery displays the warehouse number.
In addition, the system assigns an overall picking status and a stock removal status.

7. Goods Issue Process for Outbound Delivery: Status Overview

8. Goods Issue Process for Outbound Delivery: Transfer order
The removal from storage is carried out using transfer order which is created with reference to outbound delivery.
There is no transfer requirement for creating a transfer order for a delivery.
The completion of picking process is reported to the system through confirmation of the transfer order.
After confirmation of TO, it is possible to post the goods issue for the outbound delivery in inventory management (IM).

9. Goods Issue Process for Outbound Delivery – Transfer order

10. Goods Movement: Transfer posting and stock transfer
Transfer posting: A change in the stock ID (material number) or the stock category of a material (unrestricted, under QA, or blocked). Transfer posting is not necessary to involve an actual (physical) goods movement.
Stock transfer: Movement of materials from a particular storage location into another storage location. Stock transfer can take both within the same plant and between two plants. The two plants can be in the same company code or between different company codes. Physical goods movement is involved.

11. Goods Movement: Transfer posting and stock transfer
Example of Transfer posting:
- Stock to stock (Under QA to unrestricted)
- Material to material
Example of Stock transfer:
- Storage location to storage location
- Plant to plant

12. Goods Movements

13. Transfer Posting/Physical Stock Transfer
Only for unrestricted stocks and one FI document is created
Only for unrestricted stocks and two FI document are created

14. Goods Movement: Transfer posting and Stock Transfer
One-Step and Two-Step Procedures:
A stock transfer/transfer posting consists of a goods issue from issuing point and a goods receipt at a receiving point.
For one-step procedure, a transfer posting or stock transfer can be done with a single posting for all transfer posting or stock transfer.
- Advantage of one-step procedure is that only a single transaction is generated.

15. Goods Movement: Transfer posting and stock transfer
One-Step and Two-Step Procedures:
For some stock transfers, two-step procedure may be selected and two separate postings will be created.
- Advantages for two-step procedure are enable to monitor stock status. Once goods issue has been posted from the issuing point, the stock is regarded as in transfer as the receiving point.
- In the case of stock transfers between plants, the two-step procedure must be used if users have operation authorization only for one plant.

16. One-Step/Two-Step Procedures

17. Goods Movement: Transfer posting and stock transfer: Financial Accounting
For a plant-to-plant transfer, both financial accounting and material requirement planning are affected.
- A cross-plant stock transfer (in the same company code) leads to a value update in the stock accounts. An accounting document is generated parallel to the material document for the stock transfer. The stock transfer is valued at the valuation price of the material in the issuing point.
- in the case of a cross-company-code stock transfer, two accounting documents are created: one for each company code. The offsetting is then made to a company code clearing account.

18. Cross-Plant Stock Transfer
In the case of a plant-to-plant stock transfer, the two plants can be belong to the same company code or to different company codes.

19. Plant to Plant: One-Step/Two-Step Procedures
In the case of one-step procedure, the goods issue and goods receipt are posted in a single material document. In two-step procedure, valuation always take places at the time of the first step.

20. Goods Movement: Stock Transport Order
Stock transport order is similar to a purchase order, but the vendor is replaced by a supply plant.
Stock transport order is integrated with MRP. A purchase requisition generated by MRP can be converted into stock transport order.
The receipt by stock transport order can be planned at the receiving plant.
Can add delivery costs and a forward/carrier in the stock transport order
Goods receipt can be posted directly to consumption.
In the case of a goods receipt into the warehouse, you may post the material to stock in quality inspection or blocked stock.
The entire process (goods issue and goods receipt) can be monitored via the PO history.

21. Stock Transport Order

22. Stock Transport Order

23. Physical Inventory Reasons for physical inventory:
- Material requirement planning: for correction of incorrect stock quantities.
- Accounting: Determination of material stocks for current assets.

24. Physical Inventory
The physical inventory is carried out on the basis of stock management units, or stock keeping unit (SKU).
A stock management unit is a non-divisible part of a stock of materials for which a separate book inventory exists. A stock management unit is uniquely defined by:
Material
Plant storage location
Stock type
Batch
Special stock, such as consignment stock
Each stock management unit of a material is counted separately, and the inventory differences are posted per stock management unit.
For example, you must record the quantities of unrestricted-use stock, stock in quality inspection, and blocked stock of a material at a storage location of a plant separately in each case.

25. Phases of the Physical Inventory
The physical inventory process comprises three phases:
1). Creation of physical inventory documents
2). Entry of count
3). Posting of inventory difference
In the first phase, you create the physical inventory (PI) documents and print out the documents in order to start the counting process.
In the second phase, you enter the count results in the system. System then determines the inventory differences. If some of the results seem doubtful, you can arrange for a recount of the stock management units affected. In this case, further PI documents are generated.
3. In the third phase, you post the inventory differences that have been identified. In the process, the stock quantity and stock value are updated and the stock accounts are updated in accounting.

26. Phases of the Physical Inventory

27. Physical Inventory Document
PI document is created per plant and storage location.
For special stocks, PI document may be created per plant, storage location, special stock, and vendor or customer or project.
Storage bin or material group may be specified as futher grouping values.
When creating a PI document, you can specify a physical inventory number in the document header (this number should not be confused with the number of the PI document). The physical inventory number facilitates selection of the PI documents to be processed during entry of the count data, posting of differences, and in evaluations.
The status of an item indicates whether or not the item has been processed, counted, posted, or recounted. You can use the status of a PI document item as a selection criterion in searches for physical inventory documents.

28. Physical Inventory Document
You can make the following changes to a PI document header:
1) Change the planned count date
2) Set or unset the posting block or freeze book inventory
3) Create or change the physical inventory number
In a not-yet-counted item
• Change the stock type or change the count unit of measure
• Set the deletion indicator
Enter new items (as long as no count has yet been entered)
Delete the document

29. Physical Inventory Document
Figure 256

30. Blocking Goods Movements
You can block all goods movements relating to a stock management unit for the purposes of a physical inventory. The system blocks all the stock management units of the relevant PI document by means of the Posting Block indicator in the PI document header.
In the Storage Location view of the material master record, the Physical Inventory Block indicator shows the value X (material blocked for movements due to physical inventory).
If it is not possible to block the goods movement for organizational reasons, you can freeze the book inventory in the PI document at the time of the count.
To do so, you set the Freeze Book Inventory indicator in the PI document. This prevents goods movements from changing the book inventory figure that is relevant to the inventory-taking process.
Figure 257

31. Blocking Goods Movements
9/26: GR 100 before posting block. The stock level is 250 after GR 100.
9/28: physical account result is 255
9/29: stock level = GR 75 = 325
9/30: stock level = GR 45 = 370 plus 5 as a difference posted (255 – 25)

32. Freezing the Book Inventory

33. Physical Inventory Status of an Item
For physical inventory count, you must print out the PI document and distribute to the persons responsible for the count.
The stock figures can be entered with or without reference to a PI document.
When entering the physical inventory count, you can enter a percentage variance of the count quantity from the book inventory, above which the system issues a warning message. When the entered data is saved, the system determines the book inventory in the system. The difference between the count result and this book inventory is the inventory difference.

34. Physical Inventory Status of an Item
You can analyze this difference via the list of differences. The list of differences contains the following information on each item:
1) Quantity counted
2) Book inventory
3) Difference quantity
4) Difference amount
You can perform the following functions with the list of differences:
1) Enter, change, display count
2) Post difference
3) Display or change document
4) Recount document or item

35. Physical Inventory Status of an Item

36. Posting of Inventory Differences
You can post the inventory differences either via the list of differences or via separate transactions. When an inventory difference is posted, the system creates a material document that corrects the stock figures, and an accounting document recording the necessary account movements.
If a document exceeds the document tolerance defined for the user group, a user who is assigned to this physical inventory tolerance group may not post an inventory difference for this document. If the total value of the document lies below the document tolerance, but certain items exceed the maximum amount per item, the user may not post the differences for these items. User can process the other items.
Figure 260

37. Posting of Inventory Differences
Figure 260

38. Combining Physical Inventory Steps
Regular three basic phases for PI:
1) Create PI document
2) Enter count
3) Post inventory difference
You have options of combining individual phases and performing them in a step.
1) Enter count without PI document (1 and 2 combined)
The system will automatically create a PI document.
2) Enter count and post PI difference (combined 2 and 3)
The counts are entered for an already existing PI document, and PI differences are immediately posted when these results are saved.
3) Enter count without PI and post PI difference (combined 1, 2, and 3)
All three phases are carried out in one step. When count results are posted, the system generates PI document and posts the PI difference.

39. Combining Physical Inventory Steps
Figure 261

40. Global Bike, Inc. WM Organizational Structure

41. GBI 2.1 Structure for Warehouse Management
Global Bike
Client 610
Global Bike Inc. US
Global Bike Inc. DE
Company Code
Dallas
San Diego
Miami
Plant
Storage Location
Trading Goods
Finished Goods
Miscellaneous
Warehouse Number
San Diego Warehouse
Shelf Storage
GR Area Ext.
Receipts
Pallet Storage
Shipping area
Deliveries
Stock Transfers
(Plant)
Storage Type
Total Section
Storage Section
STBN-2-000
STBN-2-001
STBN-2-999
Storage Bin

42. GBI 2.1 WM in SAP R3: Logistics Execution

43. GBI 2.1 WM in SAP R3: Define Warehouse Number

44. GBI 2.1 WM in SAP R3: Define Storage Type

45. GBI 2.1 WM in SAP R3: Define Storage Section

46. GBI 2.1 WM in SAP R3: Define Storage Bin Structure

47. WM Multiple Choice Question
Name: ________________________
How can you assign organizational levels in SAP Warehouse Management? Please choose the correct answer. (One correct answer)
a) O You can assign a plant-storage location and a storage area combination to one warehouse number.
b) O You can assign several plant-storage location combinations to one warehouse number.
c) O You can assign the plant-storage location combination to several shipping points.
d) O You can assign a plant-storage location to multiple warehouse numbers.

48. Exercises: (Due Date 3/31/2014)
Case Study 2:
Create and Process Transportation Order
Process overview
1. Display materials inventory
2. Create transport order
3. Display materials inventory
4. Display material inventory value
5. Create goods issue
6. Review material inventory after GI
7. Review material inventory value after GI
8. Create goods receipt
9. Display materials inventory
10. Display material inventory value
11. Run Bin status report
12. Create transfer order
13. Confirm transfer order
14. Run bin status report

49. Exercises: (Due Date 3/31/2014)
Case Study 3:
Process outbound delivery
Process overview
1. Create sales order
2. Display materials inventory
3. Create outbound delivery
4. Display material inventory
5. Pick materials with transfer order
6. Run Bin status report
7. Confirm transfer order
8. Run bin status report
9. Display materials inventory value
10. Ship material
11. Display materials inventory
12. Display materials inventory Value