Basic Stock Management

Material Master Data

Before describing the management of materials in WM, we need to discuss briefly how the material records are organized in the SAP Materials Management system.

What is the Material Master Record?

The material master record contains all information about the materials a company procures, manufactures, stores and ships. The data stored in the material master is not only used by Warehouse Management (WM), but also by other application components, such as Inventory Management (IM), Production Planning (PP), Quality Management (QM) and Shipping (SDSHP). The integration of all information about a material into a single record eliminates redundancy and makes it possible to store material data for all relevant system components in a single database.

Views in the Material Master Record

You maintain and display material master records using views. Just as data in the material master record is maintained for specific departments, such as quality assurance, sales or product planning, some of the data is used specifically by the Warehouse Management (WM) application. For example, when you maintain material data from the viewpoint of warehouse management, the system displays only the data that is relevant for the storage of the material in the warehouse. General data that is relevant for more than one view (for example, the material's description, its weight, and its volume) appears in several views.

Organization Level for Data

There are two organizational levels that can be defined for WM. In the WM view of the material master record, all the indicators and fields that are used for the entire warehouse number are entered at the warehouse number level. There is also a storage type level with all the indicators that apply to a single storage type but do not for the entire warehouse. If you enter a storage type for a material on the initial screen for the WM view, the system displays an additional section in which you can enter, for example, a fixed storage bin or a control quantity. These fields only apply to the storage type and not to the entire warehouse.

Defining Warehouse Data in the Material Master

Since it is possible to use the Materials Management system without interfacing to Warehouse Management, other views may already exist when you create the WM view in the material master record. For example, data from other system components (such as purchasing, quality management, accounting and storage) may already exist in the material master. To define warehousing data in the material master:

1. Choose Logistics → Logistics Execution → Master Data →Material →Material →Create→Immediately from the SAP menu. To change data in the material master, choose Logistics→Logistics Execution →Master Data → Material →Material →Create → Immediately. The steps for changing data are basically the same as those described below. Using this function, you can overtype existing data in the material master record.
2. Enter a material number, industry sector code, and material type and choose Select view.
3. Choose Warehouse Management and any relevant additional views and choose Org.levels.
4. In the organization level window, you must enter a warehouse number as a minimum. You can also enter the plant and storage type. Enter a storage type only if you need to enter storage type data for fixed bins or special processing.Choose ENTER. If you selected only the Warehouse Management view, the system immediately displays the warehouse data screen.
5. As a minimum, you must enter a descriptive text about the material and the base unit of measure. If you entered a storage type on the organizational level screen, additional fields are displayed under the Storage bin heading, such as the maximum and minimum quantity that can be stored in a bin and replenishment quantities. Linking the Material Master Record to a Hazardous Material Record These steps only apply if hazardous material management is active.
6. To link this material to a hazardous material record, enter the number or designator of the hazardous material in the Hazardous material number field.
7. Save the data about the material to the data base. In the material status table, two fields are taken into consideration in Warehouse Management that make it possible to limit processes permitted for materials:

• Transfer Requirement Instruction: Based on the material status, the system issues a notification message when transfer requirements are created manually or via function modules. The system does not issue a notification when transfer requirements are created via the normal IM _ WM interface. Warnings are suppressed when the system creates transfer requirements via function modules.
• Transfer Order Instruction: Based on the material status, the system issues a warning message or an error message when transfer orders are created. When you confirm a transfer order, the system does not issue a notification. Warnings are suppressed when the system creates transfer orders via function modules. The material status field is located in the “MRP 1” view of the material master record. To make changes to the material status table, see the Implementation Guide for Logistics.

Displaying the Material Master Record

The material master record can be displayed from various system components. For example, in the Inventory Management component, you can display the same views of the material master as is possible with Warehouse Management (WM). To display information about a specific material assigned to your warehouse in the Warehouse Management view

1. Choose Logistik →Logistics Execution → Master Data →Material →Material → Display →Display Current Status from the SAP menu.
2. Enter a material number and choose Goto → Select view(s).
3. Choose the Warehouse Management view 1.To enter the plant, warehouse number and storage type data, choose Org. levels.
4. As a minimum, you must enter a warehouse number. You can also enter the plant and storage type. To display fixed bin or replenishment information about a material, you must enter a storage type.
5. Choose ENTER.

The Quant and Stock Management in WM

Definition

Stock is managed in the SAP Warehouse Management system in quants separate identifiable quantities of material that are stored in the warehouse.

Is a quant simply a "quantity" of material?

Yes, however, it is a quantity of material with similar characteristics in a single storage bin. Therefore, if there is a quantity of the same material in a bin that has two separate batch numbers, for example, there would be 2 quants in that bin.

Structure

What data identifies separate quants in a storage bin?

When a storage bin is occupied, the system maintains data about the materials that are stored at that location in the quant record. This information includes:

• Quant identification
• Plant
• Material number
• Batch number
• Stock category
• Special stock indicator and number

If a single storage bin contains 100 pieces of material ABC as follows:

• Batch 01 = 20 pieces
• Batch 02 = 50 pieces
• Batch 02 = 30 pieces of inspection stock

There are 3 quants in this storage bin. The following graphic illustrates how quants are used in storage bins:

From left to right:

• The first storage bin has two quants, a single quant for material 1 and a single quant for material 2.
• The second bin contains 2 quants of material 3, each with a separate batch number.
• The third bin has a single quant of material 4.
• The fourth bin has 2 quants of material 5. The first quant is quality inspection stock with a stock category of “Q”. The second quant of material 5 has been released from inspection and is now “unrestricted” stock that is available for use.

The amount of material in a quant can be increased by adding material to existing stock. The different types of stock (categories) and special stock are passed to WM from IM and serve as stock separation characteristics in the quant. WM has no stock categories nor any special stock types of its own. Since it is possible to manage stocks from different plants within one warehouse complex number, the plant must also exist as a stock separation characteristic in the quant.

Active storage unit management in a storage type can also influence the number of quants in a storage bin. In customizing, for each storage type you can define whether only one quant or several quants can be stored in a storage bin. For each storage type, you can allow mixed or homogeneous storage. You can also permit the addition to existing stock at this level. This means that goods with the same material number and the same additional quant criteria can be combined during putaways and stock transfers.

When adding materials to existing stock, quant characteristics are combined. This means that the quant information in the stock that is added to existing stock is lost and takes on the quant characteristics of the stock that is already stored in the bin. This includes, for example, the goods receipt date and caution should be exercised for FIFO stock. This quant information does not go away until the storage bin has been completely emptied.

What additional data is kept in the quant record?

• Data about the last transfer
• Data about the last inventory
• Stock amounts, for example stock that is available or stock that is being transferred to or from a storage bin
• Blocking indicators

How is a quant created?

When you store goods in an empty storage bin in WM, the system creates the quant in the bin.This means that the system issues a quant number and, when the quantity of material is picked, the quant number is automatically deleted again. This number has no significant meaning for your company and is used for management purposes in WM.

Integration

Why is the use of the quant meaningful in WM?

Since the system automatically assigns a quant number to each separate quant in WM, the system can optimize material flow and manage stock in the warehouse more efficiently.

Shelf life expiration date (SLED)

The SLED field only exists in the quant when shelf life management is active in Materials Management (MM). This happens when the material master is maintained accordingly.

During a stock placement in MM you can enter either the production date or the shelf life expiration date. This depends upon whether the field Remaining shelf life has been maintained in the material master record. For example, if 10 days have been entered into this field, the system assumes that when goods are received, the production date was entered and calculates the shelf life automatically. If you leave this field empty in the material master, the system makes it possible for you to directly enter the shelf life expiration date. This date that is entered or calculated during the goods receipt is then noted in the quant that is created in the storage bin. If you add stock to an existing quant in a storage bin, the shelf life expiration date of the new quantity that is added is lost.

Changing Quant Data
To change data for a single quant:

1. Choose Logistics → Logistics Execution → Internal Whse Processes → Bins and Stock →Display→Single Displays → Quant from the SAP menu.
2. Enter the warehouse number, the storage type and the bin coordinate of the quant you want to change and choose ENTER.
3. To access the quant, choose Stock. If there is more than one quant in the storage bin, a list of quants appears.
4. To change a quant in the list, position the cursor on the quant you want to display and chooseChange Quant.
5. Make changes to the quant on the detail screen. Data that cannot be changed is not accessible.
6. Save the changes to the data base.

Displaying Quant Information

There are several tasks in WM that you can use to display information about quants in the warehouse.

• For example, to display the stock information for a specific material in the warehouse with the stock category of Q, choose: Logistics → Logistics Execution →Internal Whse Processes →Bins and Stock→Display → Bin Stock per Material from the SAP menu. Enter a warehouse number, material number, plant, Q (in the Stock category field), and choose ENTER.
• To display the stock information for a specific storage type, such as an interim storage area, choose: Logistik →Logistics Execution →Internal Whse Processes → Bins and Stock →Display →Bin Stock per Material from the SAP menu. Then choose Program → Execute.

For example, to display stock in the interim storage area for goods receipts, enter a warehouse number and the storage type (902 in the standard system). To display the individual quant information for a material in the bin status report, position the cursor on a material and choose a material.

Types of Stock

Special Stock

Special stock is managed separately in the Warehouse Management (WM) application for reasons of ownership or for various factors reflecting the location in which they are kept. Each type of special stock is assigned a special stock indicator to aid in managing it in the system.

Special stock characteristics assigned during goods movements transactions in the IM component are displayed on WM screens and taken into consideration when processing stock in WM. You can manage the following special stock using WM:

Individual Customer (Sales Order) Stock (E)

Individual customer (make-to-order) stock is managed in WM using a special stock number and the special stock indicator E. The special stock number is made up of the sales order number (10 digits) and the sales order item (6 digits).

Consignment Stock (K)

Stock of materials made available by the vendor and stored on the premises of the ordering party. This stock remains in the ownership of the vendor until it is removed from the warehouse and used for production purposes or taken over into the company's own valuated stock. Consignment stock is managed in WM using a special stock number and the special stock indicator K. The special stock number for consignment stock is the same as the supplier (vendor) number.

Returnable Transport Packaging (RTP) Vendor (M)

Multi-trip packaging medium (such as pallets or containers) in which goods can be transported between vendors and customers. It is the property of the vendor and is therefore not included in the customer's valuated stock.

Project Stock (Q)

Material which is held in the warehouse for the completion of a project. For project stock, the system checks to see whether a corresponding master record exists.

System Checks

In conjunction with the special stock indicator, the system checks the length of the special stock numbers as shown below:

Stock Category

In WM, it is important to know what quantity of a stock is in a particular storage bin, but also its status and whether or not it is available. Stock in the warehouse is categorized in WM as follows:

Available Stock

Unrestricted-use stock that is physically located in the warehouse, valuated, and not subject to any kind of usage restrictions. You can carry out all stock movements for this stock to include stock transfers, putaway and picking.

Inspection Stock

This stock carries the stock category “Q” to indicate that it is in quality inspection. Stock in quality inspection has been valuated but does not count as unrestricted-use stock.

The Quality Management inspection data in the QM view of the material master determines whether a percentage of stock is to be designated as inspection stock when it is received in the warehouse. Once this stock has been inspected and a usage decision has been made, you carry out a transfer posting in the Inventory Management component and subsequent Posting Change in WM to remove the category Q, thus converting it to available stock.

Blocked Stock

In IM it is possible to designate goods as blocked stock. These materials are a company's own stock that should not be used. Stock can be blocked, for example, because it has been damaged and for various other reasons. This stock is displayed in WM with a stock category of“S”. This stock is processed in exactly the same manner as inspection stock.

For blocked stock, there are movement types in both IM and WM which you can use to convert blocked stock into inspection stock and vice versa (movement types 349 and 350 in the standard IM component with reference to 309 in WM).

Blocked Stock Returns

When delivered goods are returned by a customer, they are first posted in the system to “blocked stock returns” with a stock category of “R”. This stock is neither valuated nor is it considered to be unrestricted-use stock. It is possible store this stock in the warehouse. You must carry out a posting change to return it to available stock.

Status of Stock in the Warehouse

When goods arrive in the warehouse, they are usually received in the Goods Receipt Area (GRArea) near the receiving dock. Later, they are transferred using a transfer order to another area within the warehouse, such as high rack shelving or other reserve storage areas. In some cases, goods are moved directly to fixed bins in a picking area near the goods issue area or shipping dock.

During the period of time when move orders have been created for the movement of goods between the various storage types that have not been fully processed, two availability statuses exist for this stock which has not yet been moved. When warehouse evaluation lists are displayed for these material, these goods appear on the display lists under the following three headers:

Quantity or Total Stock

This designator usually appears at the top of many stock display lists. This is the total quantity of material quants stored in the warehouse that does not include quantities for planned putaways and picks. For the display of materials in a bin, the total quantity in each storage bin is also displayed.

For Stock Placement

This column designator appears in some stock lists. The system has created a transfer order for this stock to move it from one storage bin to another. It has been marked for putaway (storage) in the warehouse.

For Stock Removal

This is also a column designator that appears in some stock lists. A transfer order has been created to pick this stock from a storage bin in the warehouse. In most cases, this stock will be transferred to a storage bin in the goods issue area.

Displaying Stock in the Warehouse
Specific Material
To display stock for a specific material, by plant and storage type:

1. Choose Logistik → Logistics Execution → Internal Whse Processes → Bins and Stock →Display→Total Stock per Material (Warehouse Management) from the SAP menu.
2. Enter a plant, material and warehouse number and choose ENTER. You can also enter a storage location and/or storage type to further limit the output for this task. To generate a list of stock for a range of storage types and storage bins, choose Logistics →Logistics Execution →Information System →Warehouse → Stock →For all materials.

Batch of Material

To display the location of materials with a specific batch in the warehouse, choose Logistics→Logistics Execution →Information System → Warehouse →Stock →Per Material - Bin-Related.

Stock in a Storage Bin

To display the quants for a single storage bin:

1. Choose Sie Logistics → Logistics Execution → Information System →Warehouse →Stock→Per Storage Bin.
2. Enter the warehouse number, storage type, and storage bin on the selection screen and choose ENTER.

Blocking Stock in the Warehouse

The possibility exists in WM to block material quants in the warehouse, for example, due to damage to stock or perhaps to reserve the stock in the warehouse on request for a specific customer.

To block quants of a specified material in the warehouse:

1. Choose Logistics →Logistics Execution →Internal Whse Processes →Bins and Stock →Block→Stock Figures from the SAP menu.
2. Enter a warehouse number and a material. You can leave the plant field blank or enter either a single plant or a range of plants. As additional selection criteria, you can select materials that are already blocked (for stock placement and/or stock removal) and you can specify a batch, stock category, special stock, and special stock number. To start the blocking process, choose Program→Execute.
3. Mark each storage bin that you want to block or unblock. To mark all bins, choose Edit → Select all.
4. To block the selected storage bins, choose Block; to unblock, choose Unblock.
5. Select the type of block, enter the blocking reason and choose Continue.
6. Save the changes to the data base.The system remains on the list screen and displays a message that the blocking for the material has been changed.

Units of Measure

In the Materials Management (MM) component of the SAP System you can define several different units of measure (stockkeeping units) for each material that are all taken into consideration in WM.

The base unit of measure is the basis for inventory management and evaluation. Alternative units of measure, such as the order unit, issue unit or WM unit of measure, are defined to identify packages or containers for smaller units of measure such as cartons, boxes, bottles, barrels or pallets.

Units of Measure used in WM:

Base Unit of Measure

Quantities of warehouse materials (quants) are counted using the base unit of measure (UoM). Quantities in alternative units of measure are always converted to the base unit of measure for calculation purposes.

Stockkeeping Unit

The stockkeeping unit is synonymous with the base unit of measure. In the SAP System, the term “base unit of measure” is more commonly used.

WM Unit of Measure

The WM unit of measure (WM UoM) is an alternative unit which can be defined in the Warehouse Management view of the material master record.

Unit of Issue

The unit of issue (UoI) is a unit of measure generally used in Inventory Management for processing goods receipts and goods issues.

Other Alternative Units of Measure

Alternative units of measure can also be defined to identify packages or lager containers for smaller units of measure such as cartons, boxes, bottles, barrels, pallets (storage unit types) and so on.

How can you implement the various units meaningfully?

The use of several different units of measure in the SAP system is useful, for example, for accounting, storage and packaging purposes. For example, if a crate contains several thousand pieces of a particular material, it is more expedient to purchase, package and sell this material by the crate or box rather than by the piece. Additionally, it is important to use units of measure that cause no field overflows to occur when the quantities are increased.

Alternative Units of Measure in the Material Master

Additionally, in the WM view of the material master record, you can define a loading quantity for each pallet type or storage unit type (SUT). You can enter this quantity using any unit of measure that has been defined in the system.

A material is normally managed in kilograms. It is stored in the warehouse in sacks and is transported in large wire baskets. In this case, the base unit of measure is "kilograms"; the alternate unit of measure is "sack" (for example, one Sack = 10 kg) and you can define this in the WM view of the material master so that one wire basket contains 5 sacks or 50 kilograms.

The SUT is an important factor for the automatic stock placement strategy. The quantity to be putaway is divided by the quantity that is defined to fit on one SUT and is distributed for storage based on the strategy and capacity of the storage bins in the warehouse.

Converting Alternative Units of Measure

Since the MM system uses the base unit of measure for calculation purposes, the WM application requires that a conversion be defined for any alternative units of measure that have been assigned to a material.

When you create a new material in the system, for example, if you designate "piece" as the base unit of measure and "box" as an alternative unit of measure, the system will display a conversion window which asks you to define how many pieces are contained in a box.

Default Quantity Units

The default unit of measure is the unit of measure that is selected by the system when you enter only a material number and quantity into the system. When you define a warehouse number you can designate primary and secondary default units of measure. These are then used by the system if you do not specify a unit of measure during a transaction. You enter them in the 1st default UoM field and the 2nd default UoM field in the Quantities/Weightssection of the warehouse number record screen. If the primary default quantity unit is not maintained for a material, the secondary default quantity unit is used. If the secondary default quantity unit is not maintained for the material, the base unit of measure is used.

Using Units of Measure in Transfer Order Processing

You confirm transfer orders using any unit of measure that is allowed for the material. The system converts this into the alternative unit of measure and stores it when the transfer order item is processed. In the data fields 1st and 2nd default UoM in the warehouse number record, you can change the unit of measure proposed as a default by the system (i.e., if users do not enter a UoM). Units of measure from preliminary documents such as transfer requirements and deliveries are usually taken over by the system. Using the characteristic M, it is also possible to edit these documents automatically based on the WM unit of measure.

Units of Weight

During the planning stage, the transfer of materials, and the subsequent display of warehouse stock, WM supports all related alternative units of measure for processing. For example, if the weight of a particular material is managed in kilograms, the system can make calculations based on the input of weight measures such as grams, ounces, pounds or tons. It is important to use units of weight that cause no field overflows once WM has become active.

Batch Management

What is a batch?

A batch in the Materials Management system is defined as a subset or partial quantity of a material that is managed separately from other subsets of the same material. Each batch is identified not only by its material identification but also by a separate batch number. Typical examples of batches include different production lots (such as paints, dyes, wallpapers, and pharmaceutical products), delivery lots, or quality grades of a material.

When is batch handling used?

In the logistics process, from procurement to sales, it is sometimes necessary for you to specify batches for individual business transactions. For goods receipt transactions, you can manually specify a batch number or you can use the internal number assignment function. For stock removals from WM, the system searches for stock with the batches specified in the sales order or delivery. Logistics-wide batch handling is possible in the following core areas:

• Batch definition
• Batch status management
• Batch determination

How do you distinguish between various batches in WM?

The essential features in Warehouse Management include the following:

1. There are two statuses in batch status management: unrestricted and restricted. The status is stored centrally in the batch and is classified as a characteristic of the batch. The system then uses this status during batch determination. When you process transfer orders, you should avoid transmitting batches with the status restricted during certain movements. This is determined by the entries in the movement type table.
2. A universal solution covering the whole of logistics was created for the batch determination complex whereby different areas use a central batch determination module. This module is divided into several sub-functions. The following steps are of importance to WM:
3. – Strategy: If a "batch neutral" quantity is requested when you create a transfer order to remove stock from storage, a “search pattern” in the movement type or in the warehouse number record specifies whether the batch determination is carried out or not. Based on the determination pattern, the system determines access sequences which, in turn, are linked to a search sequence. The system then selects a valid strategy for the batch determination.
4. – Selection: Via the classification system, the system finds batches according to predefined search criteria. Examples of possible criteria include shelf life and batch status.
5. – Sorting: The system sorts any batches found according to certain criteria (for example, shelf life expiration date or the production date) and sends them to the program that creates the transfer orders. Here, the system processes the selected batches based on the stock removal strategies. To make the settings mentioned above, see Logistics - General → Batch Management →Batch status management →Activate batch status checking in Warehouse Management in the Enterprise IMG documentation.

Batch Determination

You can use batch determination in the following applications:

Active Ingredient Processing

Active ingredient processing is integrated into the batch determination process in WM. For this process, the conversion factors for the individual batches are taken into consideration.

When you create transfer orders, the system displays the active ingredient unit of measure, however, it does not become the alternative unit of measure since this would not be appropriate for working in the warehouse. Therefore, you cannot use the active ingredient unit of measure for confirming transfer orders nor for taking inventory.

Shelf Life Expiration Date

The shelf life expiration date (SLED) for warehouse stock is established when goods are received. This date is updated in the quant, where it can be viewed and changed if necessary. For materials that are managed in batches, the shelf life expiration date is kept in the batch and cannot be changed in Warehouse Management (WM).

When shelf life management is active for a particular material, you must enter the expiration date on the stock placement preparation screen when you create a transfer order. The system can then print the shelf life expiration date on pallet documents.

You enter the shelf life data into the storage view of the material master record. This data includes:

• Maximum time a material can be stored
• Minimum shelf life a material must have available to be accepted by the system
• Percentage of the total shelf life that must still be available if the goods are to be sent to another distribution point
• Time unit used for the shelf life data (days, weeks or years)
• Total number of days that the goods can be kept – from production to the shelf life expiration date

Displaying Materials with a Shelf Life Expiration Date (SLED)

You use this task to select and list materials in the warehouse that respond to a user-defined remaining time before a given expiration date. This is known as the shelf life expiration date (SLED) control list. This function is only meaningful when SLED management is active. To display the shelf life expiration date control list

1. Choose Logistics → Logistics Execution → Information System →Warehouse → Stock →SLED Control List from the SAP menu.
2. You must enter the warehouse number as a minimum. Additionally, you can enter material, plant and storage type data. As selection criteria, you must enter the remaining shelf life in days. The system selects all materials whose remaining shelf is less than or equal to the number of days entered.
3. Choose Program →Execute.

Storing Materials in the Warehouse

The WM system manages both homogeneous and mixed storage:

Homogeneous Storage

Homogeneous storage is the storage of only one material number in a storage bin. You can define a storage type so that only one material can be stored in each available storage bin. Bulk storage areas are set up so that one line or block contains only one material number. For example, materials such as cases filled with beverages, bottled gas and pallets of cement blocks and other construction materials are stored homogeneously in bulk storage areas. This method is preferable when large quantities of the same material are stored in a warehouse.

Mixed Storage

When you define mixed storage for a storage type in your warehousing complex, it is possible to store two or more materials (quants) in each storage bin. There is no standard strategy in WM that automatically would place material together with another material that is already stored in a storage bin.

Mixed storage is particularly useful when you have smaller quantities of several material numbers that need to be stored in the same storage area. Often, slower moving items are stored in mixed storage areas. Homogeneous storage would not be useful here, because that would mean that only a few boxes might be stored in each storage bin.

WM Interface to Inventory Management (IM)

The most important system component that is linked to WM is the Inventory Management (IM) application component. Most activities that take place within WM are initiated in IM.

Interim Storage Areas

The Inventory Management component communicates with WM through interim storage types. When you process a goods receipt in IM that is posted to a WM-managed storage location, the quantity is automatically posted to an interim storage area (goods receipt area). When this happens, a quant is created in a storage bin in the interim storage area. Afterwards, WM posts the goods to a storage bin in the warehouse.

This second step can take place automatically. This increases the total stock quantity in both IM and WM. When you process a goods issue, the system posts a quantity to an interim storage area (goods issue area or shipping zone). This time, however, a quant with a negative quantity is created since the IM posting reduces the total stock quantity.

It is through the interim storage areas that the stock quantities remain constant in both IM and WM. The total sum of the stock of all the WM storage areas for a warehouse number, both physical and logical, should always be identical to the sum of the stock in the IM storage location.

How many interim storage areas do I need?

You need to decide how many and the types of interim storage areas to define and use. Generally, you need at least four:

• Goods receipt area
• Goods issue area
• Interim storage area for differences
• Posting change area

The interim storage area for differences manages stock differences that occur during stock movements. Data pertaining to stock differences (such as overages, shortages, and damages) is kept in the interim storage area until the conditions that led to the differences are resolved. Stock differences are cleared with a difference posting from the WM interim storage area to the IM component.

Additional Interim Storage Areas

You can also set up several interim storage areas for goods receipt and goods issue, depending on the requirements in your company. For example, you could define the following additional interim storage areas:

• Goods receipt interim storage area for purchase orders
• Goods receipt interim storage area for production orders
• Goods issue interim storage area for delivery documents
• Interim storage area for posting changes
• Goods issue interim storage area for cost centers

This would make it possible for you to keep a record of each of the different types of documents and compartments completely separate at the storage type level.

How do I define an interim storage area?

You define interim storage areas the same way you define any other storage type in WM. You use the Customizing application to set up the storage types for each warehouse. Then you define the characteristics for each storage type.

Interim Storage Bins

When you define the interim storage area, you also specify the type of coordinate that will be used to identify the storage bins within the interim storage area. Storage bins for an interim storage area can have:

• Predefined coordinates
• Dynamic coordinates
• Fixed coordinates

The following graphic illustrates the use of all three types of interim storage bins.

Predefined Coordinates

For each interim storage area, you can define one or several storage bins with fixed coordinates. For example, for the goods receipt area, you can create a fixed storage bin with the coordinates GR-AREA. You then assign a separate movement type to each storage bin in the interim storage area. You do this by entering the storage bin coordinates into the movement type record when you define the movement type. Before you can post stock movements using movement types containing storage bin coordinates, you must first create the corresponding interim storage bin in WM.

When you post a goods receipt in the IM component, the system uses the movement type to select which interim storage bin will receive the stock quantity in the interim storage area. On the other hand, when you post a goods issue, the system uses the movement type to determine from which storage bin in the interim storage area the stock will be removed.

Dynamic Coordinates

When you define a movement type, you can set up the system to create dynamic storage bins in the assigned interim storage area. In this case, the system uses the document number which triggered the stock movement as the coordinates for the interim storage bin.

For example, for a goods receipt, you can set up the system to use the purchase order number as the storage bin coordinates in the interim storage area for goods receipts. These coordinates only exist as long as the quant is in the interim storage bin; afterwards, they are deleted.

Advantage of using Dynamic Coordinates

The advantage of using dynamic coordinates for goods receipts for purchase orders is that when several goods receipts are posted, these postings then create separate quants which can be differentiated using the purchase order numbers as coordinates. If predefined coordinates are used, only the total quantity of the material in the interim storage area is visible.

Fixed Bin Coordinates

For a movement type, you can also assign a fixed storage bin that has been defined in the WM view of the material master record. You enter this storage bin coordinate in the Storage bin field in the storage bin stock section in the material master at the storage type organizational level. In this case, when you define the movement type you have to enter the storage type from the material master as an interim storage area in which the fixed bin has been defined. When the material is received in the warehouse, it is then posted directly to the assigned fixed bin. For the goods receipt posting, the system does not create a transfer requirement. In this case, none is required.

When should I use fixed bin coordinates?

You should use this procedure, for example, for fixed bin picking or in situations in which good system performance is important and when you can do without a return notification of the putaway.

Creating Interim Bins with Predefined Coordinates

Storage bins in interim storage areas must be created the same as bins in other storage types in Warehouse Management. Generally, interim storage bins are created when WM is installed. Later, when you define new movement types to which you want to assign interim storage bins, you can create these bins either manually or you can set up WM to create them automatically. In the latter case, carry out the following procedure.

1. Choose Logistics → Logistics Execution →Master Data → Warehouse →Storage Bin →Create →For Interim Storage from the SAP menu.
2. Enter a warehouse number and choose Program → Execute. The system checks all movement types in which you have defined an interim storage type and displays two lists. The first list contains storage bins that have not yet been created in WM. The second list contains storage bins that have already been created in WM.
3. Choose Create bins.

Order of Postings in Integrated WM

We can distinguish between two types of stock movements, depending upon the system that initiates the movement.

• The goods movement is posted first in IM and then carried out in WM.
• The goods movement is carried out in WM and subsequently posted in IM. To accomplish these tasks, the system uses interim storage areas for each interim storage area.

Sample Report

Report RLEXIP01 serves as an example to demonstrate how information that has been posted in the WM system can be completed by postings in the IM system.

Posting First in IM

Example: Goods Receipt for a Purchase Order

Physical Process

When goods are received in a company, they are generally not transferred immediately to their final storage bin. Typically, goods are delivered to an interim (temporary) storage bin, such as a marked area on or near the receiving dock, where they are identified and sorted. They remain at that location until a suitable final storage bin can be found in the warehouse.

Process in the System

1. In the SAP System, you post the delivery of goods as a goods receipt in the IM system.
2. The system posts the stock to a storage location and creates a goods receipt document. This IM posting automatically updates the data about the location of the goods.
3. WM uses the goods receipt document to create a transfer requirement. This takes place automatically. The stock is noted in the system as being in a storage bin within an interim storage area. The quantity of stock recorded in WM is the same as the quantity of stock recorded in the IM system.
4. Subsequent to the goods receipt, you create a transfer order in WM using information from the transfer requirement. The transfer order initiates the physical stock movement. The goods are then transferred from the interim storage area to storage bins within the warehouse.

Posting First in WM

Example: Goods Receipt from Production

Physical Process

For this example, we use a manufacturer whose production department continuously produces materials on pallets. These are then transferred immediately from production to high rack storage shelves within the warehouse.

Process in the System

In this situation, the IM system is not informed each time a pallet is transferred from production to the warehouse. Instead, a posting that summarizes the goods receipt is made at regular intervals.

1. In WM you create a transfer order to transfer each individual pallet into the warehouse.
2. When you create a transfer order, the system posts a negative quantity to the interim storage area that is designated to receive material from production and a positive quantity to the destination storage bins in the warehouse, for example, in high rack storage.
3. Each time a pallet of the same material is received in the warehouse, the system increases the negative stock posting in the interim storage area (cumulative update).
4. Subsequently you start a batch program that reads the data from the interim storage area (for example, the quantities and material). This triggers the task for posting a goods receipt in the IM system.
5. When you post the goods receipt for the production order in the IM system, the system then updates the inventory data in IM and clears the negative quantities from the interim storage area.

Comparing Stock Quantities in WM and IM

The stock comparison function compares stock levels in the Warehouse Management (WM) application with stock levels in the Inventory Management component and searches for differences. To clear differences, you can create a batch input file:

1. Choose Logistics →Logistics Execution → Internal Whse Processes → Physical Inventory → in Warehouse Management → Stock comparison from the SAP menu.
2. In the first section of the initial screen, select data is to be compared for the stock comparison report. Permissible selections include:
• Plant and storage location
• Plant and warehouse number
• Warehouse number only
3. In the output section of the screen, select one of the following additional fields to determine how the information is to be displayed or processed:

With bin inventory

• If you select this option, the system lists the stock quantities at the bin level for Warehouse Management.

All material data

• With this option you select all stock records for a material for which a difference is found. These records also include the material number, batch, special stock indicator and supplier combinations that have no differences and whose stock quantity is greater than zero. This detailed information helps in detecting exactly where the error occurred.

Create batch input file

• If you select this output option, the system generates a batch input file. This batch input session adapts the stock figures in IM to those in WM. The prerequisite for this is that all goods movements to the corresponding warehouse number be blocked. If you only want to see a summary of the differences, we do not recommend using this option. It is best to clarify the causes of the differences first using the output list displayed on the screen before removing them using the batch input file.
• Choose Execute.