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This Session Will Cover the Mapping of Warehouses and Storage Locations
Deciding whether a specific storage place will be
handled as a warehouse [Warehouse Management (WM)] or as a storage location [Inventory Management (IM)] is not enough! After the completion of that decision, optimize the relationships at all of the plants storage places This session will talk about the main differences between a warehouse and a storage location and then recommend the best mapping of combined storage places WM and IM together to optimize the SAP system
Materials Management and is embedded in the whole logistics process By managing your warehouse stock using Inventory Management, you will be able to manage your material stocks in several storage locations in terms of quantity and value Warehouse Management also enables you to display your entire warehouse complex in the system in detail, including storage levels. This will be discussed later in this session.
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Inventory Management
Logistics Execution
Invoice Verification
holds the stock quantity Option: To maintain a single storage bin for every material in every storage location To simplify: To utilize a storage location as the storage facility means that the materials actual bin location is not important, or that the material is located in a single bin throughout the storage
Plant 2000
Plant 1000
Received, Goods Issue, Transfer Posting) Picking and packing processes should not be managed by SAP There is a lower volume of activity Outsourced warehouse operations
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What is a Warehouse?
As of SAP R/3 4.5, Warehouse Management is part of
Logistics Execution Warehouse Management allows you to implement all of the processes in Logistics Execution, whether sales orders have to be fulfilled or production needs to be supplied with components. Whether goods delivered from a vendor or finished products from in-house production have to be put away, Warehouse Management provides the necessary tools.
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holds the stock bin location To simplify: When a warehouse (Warehouse Management) is utilized as a storage facility, a materials actual bin location is of great importance
Advantage: Track a materials changing bin location
in a storage facility
Disadvantage: More complexity and usually requires more
data entry
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Management >
When you copy Warehouse 001, most of the activities will have default data Now it is time to design your specific warehouse
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What is a Warehouse?
Company Code
Plant 2000
Plant 1000
Storage Location 0001 Warehouse 100 Storage Type 001 Storage Type 002
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Radio Frequency (RF) solution Connection to specialized external systems using an interface
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Management, can only provide information on the total quantity of material in stock, Warehouse Management enables a precise specification of the exact location of a particular quantity of material and informs you whether this quantity is currently in a storage bin or on the move
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that holds 100,000 materials would mostly be handled as a warehouse) Number of transactions (movements) is high Traceability and visibility is critical Complex processes
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Recommendations
Companies often select only one option: Inventory
Management or Warehouse Management If a company is very small, Inventory Management is often the ideal choice In general, if you do not HAVE to implement Warehouse Management, stick to Inventory Management. Keep it simple! When Warehouse Management is implemented, it is recommended that storage locations be used according to processes
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Recommendations (cont.)
Goods Receipt from production (Goods Receipt to storage
Warehouse
915
100 902 Storage Location 0001
Transfer Posting to warehouse
PP Order
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Warehouse Management to storage location, then auto Goods Issue to order) Storage 912 Warehouse Location Transfer Posting 0001 from warehouse 100
Goods Issue backflushed material
902 PP Order
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This parameter defines that this component is not issued manually to the production order, but rather backflushed automatically
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location(s) than the warehouse Warehouse 912 100 Storage Storage Location Storage Location 0001 Storage Location 0002 Location 0003 0004
902
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QM Integration
If decentralized Warehouse Management is used with
Quality Management (QM) integration, then QM stock must reside in a storage location different than the warehouse 912 100
Transfer Posting
Decentralized Warehouse
Goods Receipt
Purchase Order
QM Stock
Unrestricted-Use Stock
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902
Special Circumstances
Some special stocks cannot be implemented in
Warehouse Management (e.g., customer stock as in Industry Solution Aerospace & Defense)
In that case a storage location should be used
Warehouse
912 100
Transfer Posting
Customer Stock
902
Customer Stock
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warehouses and storage locations Mapping may change as an enterprise evolves Mapping may be created by adding all storage facilities as boxes on a paper with connecting lines between all facilities The complete mapping should include production facilities as well as vendors, customers, and other related systems
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QM Stock
Unrestricted-Use Stock
Purchase Order
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Typical Mapping
Storage Location
Purchase Order
Sales Order
Warehouse
Purchase Order
Storage Location
Storage Location
Storage Location
Storage Location
Storage Location
Storage Location
Warehouse
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single storage location (if that is not possible design an easy process to move the materials from one storage location to another) Design material movements according to SAPs available functionality Think of information transfer not only of transactions, i.e., how would the warehouse know a material should be transferred from one location to another
The information might transfer by creating a reservation, email,
fax, phone, etc. The transaction would be MIGO Transfer Posting 311, for instance.
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standard containers These parts are independent of PO and are issued as a full crate. In the standard system, you order crate parts manually.
Goods Issue Transaction MIGO Movement Type 261
Unrestricted-Use Stock
Cost Center
Production Order
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Execution > Master Data > Warehouse > Control Cycle Production Supply > Create
On the left, there are the Staging Indicator Values, for example, crate part
NOTE: A Control Cycle without material means all materials EXCEPT those materials with specific Control Cycle
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stored loosely at the work center, ready for use Bulk materials are used in small quantities of low value and are not taken into account when costing an order
Goods Issue Transaction MIGO Movement Type 201
Cost Center
Unrestricted-Use Stock
Production Order
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provided in the required quantities as specified in a production order These parts can be provided in a physical storage bin or in a dynamic storage bin, for example, with the name Production Order
Unrestricted-Use Stock
Goods Issue Transaction MIGO Movement Type 261
X
Cost Center
Production Order
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automatically to an order after the complete order or order step is approved (e.g., specific electronic parts assembled in an SMT machine) These parts should be issued from a storage location Warehouse 912 100
Backflushed material
902
PP Order
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Resources
Product information: www.sap.com/erp Product documentation: http://help.sap.com For customers and partners: http://service.sap.com/qm * Information about courses: www.sap.com/education
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handled by Inventory Management and which by Warehouse Management Do not forget to think of your parts categories
Create Master Data accordingly
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Management/Warehouse Management decisions Change the mapping as your organization changes Consult all modules (not only Materials Management) when designing the mapping
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Your Turn!