Heter

FUNCTIONAL REQUIREMENT SPECIFICATION FOR

SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

Department Information Technology

Name of the Supplier SAP India Pvt. Ltd
Name of Validation Consultant Pranava IT Services
Model/Version ERP ECC 6.0

CHANGE HISTORY
Revision Effective Date Description of Change
00 First Issue

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FUNCTIONAL REQUIREMENT SPECIFICATION FOR
SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

TABLE OF CONTENT

1.0 APPROVAL TABLE 3

1.0 Purpose of this document.......................................................................................4
2.0 Business process details........................................................................................4
3.0 Overview of warehouse management....................................................................4
3. GOODS RECEIPT WITH 101 MOV.TYPE..........................................................................4
3.2 GOODS RECEIPT CANCELLATION WITH 102 MOV TYPE...................................................5
3.3 GOODS ISSUE TO COST CENTER.201 MOV.TYPE.............................................................6
3.4 GOODS ISSUE TO COST CENTER 202 MOV. TYPE (REVERSAL OF GOODS ISSUE TO
COST ENTER)........................................................................................................................6
3.5 GOODS ISSUE TO PRODUCTION ORDER OR PROCESS ORDER........................................6
3.6 PRODUCTION REVERSAL 262 MOVE TYPE...................................................................7
3.7 TRANSFER POSTING FROM PLANT TO PLANT WITH 301 MOV.TYPE................................8
3.8 TRANSFER POSTING FROM PLANT TO PLANT WITH 303&305 MOV. TYPE........................9
3.9 TRANSFER POSTING FROM MATERIAL TO MATERIAL WITH 309 MOV. TYPE..................10
3.11 INITIAL STOCK UP LOAD WITH 561 MOV. TYPE...........................................................11
3.12 SALES ORDER GOODS ISSUE 601 MOV.TYPE...............................................................11
3.13 REVERSAL PROCESS SALE ORDER GOODS ISSUE 602 MOV.TYPE..................................12

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FUNCTIONAL REQUIREMENT SPECIFICATION FOR
SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

1.0 APPROVAL TABLE

Department Name Designation Signature / Date

Prepared by

Project Manager

Reviewed by

System Owner

Process Owner

Corporate
Quality
Assurance
Approved by
Corporate
Quality
Assurance

CHANGE HISTORY
Revision Effective Date Description of Change
00 First Issue

1.0 Purpose of this document

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FUNCTIONAL REQUIREMENT SPECIFICATION FOR
SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

The purpose of this Functional Risk Specification (FRS) document is to describe

warehouse management maintenance at Hetero Drugs Limited.

2.0 Business process details

Following business processes are implemented in Hetero Drugs Ltd. Warehouse

Management is integrated with Material Management, production planning and sales
and distribution.

WM Supports Warehousing Processes Like

a) Define and manage complex warehousing structures
b) Optimize material flow using advanced put away and picking techniques
c) Process goods receipts, goods issues, and stock transfers quickly and easily

3.0 Overview of warehouse management

The SAP Warehouse Management system (WMS) provides flexible, automated support
in processing all goods movements and in managing stocks in your warehouse
complex. The system supports scheduled and efficient processing of all logistics
processes within your warehouse.

The Warehouse Management application is fully integrated into the SAP R/3 system.
Transactions that are initiated in other SAP components result in corresponding tasks in
WM which activate the actual physical transfers within the warehouse.

The Warehouse management is integrated with Material Management (MM), Sales &
Distribution (SD), production planning (pp),Quality Management (QM) modules. The
base document for the material movement will be generated either in the MM or SD or
PP or QM modules

3.1 GOODS RECEIPT WITH 101 MOV.TYPE.

Process General Explanation

Goods receipt in the Warehouse Management system (WMS) is the physical inbound
movement of goods or materials into the warehouse. It is a goods movement that is
used to post goods received from external vendors or from in-plant production. All
goods receipts result in an increase of stock in the warehouse.

Reference documents for goods receipt in the WMS

The goods receipt is first posted in Inventory Management, from which the Warehouse
Management system generates a transfer requirement. Typical processes for this are,
for example:

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FUNCTIONAL REQUIREMENT SPECIFICATION FOR
SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

Process flow;-
a) To initiate the receipt of goods into WM, you generally post a goods receipt in
IM.

b) With the IM posting, the system assigns a quantity of material to a storage bin in
an interim storage area for goods receipts and creates a transfer requirement in
WM.

c) Subsequently a transfer order is created, usually automatically by the system,

based on the information in the transfer requirement.

d) Using a predetermined search strategy, the system determines where in the

warehouse the goods should be placed and palletizes the goods.

e) The transfer order is used to transfer the goods from the interim storage bin in
the receiving zone to one or several storage bins in the warehouse.

f) The warehouse worker confirms that the goods have been transferred. This can
be entered manually into the system or automatically by using RF equipment to
scan a bar code on a container.

g) At this point, the goods receipt process is completed

3.2 GOODS RECEIPT CANCELLATION WITH 102 MOV TYPE.

Process General Explanation

Cancel goods movements by using the reversal movement types, such as 102, in the
standard functions Cancel Material Document, Goods Receipt for Purchase Order .
The Cancel Material Document function cancels the material document “as-is” with all
assigned serial numbers, quantities, batches, and so on. The stock situation for a
successful cancellation has to be the same as after the original goods movement

Process flow;-

a) In Migo transaction Select Cancellation Option and give the Material document
created during GR (101 Mov Type) Now check the data and post it.

b) It will trigger 102 Mov. Type and will create Transfer Requirement (TR).

c) Convert this Transfer Requirement (TR) to Transfer Order (TO) and confirm it.

3.3 GOODS ISSUE TO COST CENTER.201 MOV.TYPE

Process General Explanation

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FUNCTIONAL REQUIREMENT SPECIFICATION FOR
SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

Goods issue means moving stock out of inventory that may be due to several reasons
like withdrawing of material for sampling or returning the goods back to vendor. So,
goods issue will result in decrease in quantity in warehouse.

Process flow:
a) 1. Transaction MIGO for Goods issue to others. With 201 Mov.Type

b) 2. Enter the material number and cost center.

c) 3. Select the Plant and Storage Location to which the warehouse is associated.

d) 4. If you post a goods issue in Inventory Management, the system creates a

transfer request as a request to pick goods from the warehouse.

e) 5. You create a transfer order on the basis of the basis of the transfer request
and remove the goods from storage..Once you post the material document in

f) . MM, the WM material will be issued and will be consumed against the cost
center.

3.4 GOODS ISSUE TO COST CENTER 202 MOV. TYPE (REVERSAL OF GOODS ISSUE
TO COST ENTER)

Process General Explanation

Goods Receipt (GR) is performed for stock items in a warehouse managed storage
location. Due to various reasons, including possible errors in GR quantity, there is the
need to perform a GR reversal or a return to vendor. The GR reversal can be full or
partial.

Process flow:

a) In MIGO transaction Select Goods issue against other. It will trigger 202 Mov type
(cost center) Now check the data an post it.
b) The process create Material document. And it will generate Transfer Requirement
c) Convert this Transfer Requirement (TR) to Transfer Order (TO) and confirm.

3.5 GOODS ISSUE TO PRODUCTION ORDER OR PROCESS ORDER

Process General Explanation

The Warehouse Management (WM) application component is interfaced to the

Production Planning Shop Floor Control (PP-SFC) application component to assist in

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FUNCTIONAL REQUIREMENT SPECIFICATION FOR
SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

providing materials to supply areas in production. The significant advantage for

customers using this WM-PP interface is that it provides pinpoint accuracy in timing the
supply of materials to production storage bins in production supply areas.

Process flow.

1. Create process order.

2. Release the process order.
3. The system determines the material staging type on the basis of the control cycle and
Determines the production storage bins, in which the components should be staged.
4. Automatic material staging is active in the standard system. The Warehouse
Management system (WMS) automatically creates the transfer requirements (TRs)
Needed for material staging. You can also create transfer requirements for material
Staging manually.
5. Create transfer orders for the staging TRs in the WMS.

Release Material staging A transfer requirement is

Create Process order manual/automati
process created with requirement type
c as - P
order

With reference to TR to TO will be Confirm Transfer Order

created manual/automatic

GI for Material consumption

3.6 PRODUCTION REVERSAL 262 MOVE TYPE

Proposed Process General Explanation

SAP provides a facility to reverse the wrong goods issues that you have made. In fact
all the goods movements in SAP - goods issue, goods transfer or goods receipts have a
reversal feature. This function can be especially useful if you have accidentally posted

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FUNCTIONAL REQUIREMENT SPECIFICATION FOR
SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

goods issue, for example, and you would like to reverse it. Goods issue reversal usually
occurs shortly after goods issue posting.

Process flow:-
In the case of a Goods issue to order, made using movement type 261, there is a
reversal movement available called 262. You can use the transaction code MB1a-262
or use MIGO-262 to create the reversals .Alternatively you can use the transaction code
MBST (or use MIGO - Document Cancellation option) to create the reversals, using
MBST not only saves your time, but it also creates a chance to know the original
reference document that was reversed.

a) 1. In Migo select goods issue to others. Mov.Type 262.

b) 2. Enter material number and quantity. Process order number, cost center and
post.

c) 3. Display material document and system generated TR Number.

d) 4. Create TO with reference to TR. and confirm the TO.

3.7 TRANSFER POSTING FROM PLANT TO PLANT WITH 301 MOV.TYPE.

Process General Explanation

For stock transfers from one storage location to another storage location, the process
begins in the Inventory Management (IM) component and is completed in the WMS

Stock transfers in the Materials Management system include the physical movement of
materials from, one plant/storage location to another plant/storage location

If materials are transferred within the same WMS warehouse which is assigned to two
separate WMS storage locations, it is handled as a plant to plant posting change. For
this type of stock transfer. Movement 301 needs to be used each time material is
moved from plant to plant.

Normally both plants would be within the same agency and the physical distance not
great when this movement type is used. The quantity is transferred from unrestricted-
use stock in the issuing plant to unrestricted-use stock in the receiving plant.

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FUNCTIONAL REQUIREMENT SPECIFICATION FOR
SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

Process Flow
a) 1 .To clear the stock transfer you must create and confirm a new transfer order based
on the material document which was originated in IM.

2. There are two ways to process a stock transfer from one storage location to another storage
location:
b) 3. You can create a transfer order by selecting from a list of open transfer
requirements.

d) You can create a transfer order using the Material document number

(from the IM component) for the stock transfer.

3.8 TRANSFER POSTING FROM PLANT TO PLANT WITH 303&305 MOV. TYPE

Process General Explanation

Within SAP Inventory Management, there are two methods how stock are moved
between plants using a 2-step process:

Whatdoes2-stepmean?

Two step means that two transactions will be used to move the stock. After the first
transaction, stock has left plant A but it is not yet available at Plant B. Only after the
second transaction is it available for use in Plant B.
Some reasons for using 2-step movements (and not 1 step):

Long time span between leaving Plant A and arriving at Plant B

Need to control when goods leave plant A but not received at plant B

Process Flow
Movement type 303 remove stock from supplying plant
Remove stock at IM level by transfer posting with 303 movement type for the
transaction Material document created. And it will generate Transfer request from
which Transfer order generated. Once Transfer order confirmed System will show the
stock in stock in transit IM level.

Movement Type: 305

Movement type 305 - placement in storage

Place stock at IM level by transfer posting with 305 movement type for the transaction

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FUNCTIONAL REQUIREMENT SPECIFICATION FOR
SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

Material document created. And it will generate Transfer request from which Transfer
order generated. Once Transfer order confirmed System posted from stock in transfer to
unrestricted-use stock . In the receiving plant. IM level.

3.9 TRANSFER POSTING FROM MATERIAL TO MATERIAL WITH 309 MOV. TYPE

Process General Explanation.

If a material changes over time in such a way that it no longer corresponds to the
features defined in the material master record, but to the features of a different material
number, you have to carry out a transfer posting from material to material. This is often
the case in the chemical and pharmaceuticals industry

Process Flow

a) 1).In order to carry out a transfer posting from material to material both materials
must be managed in the same stock keeping unit.

b) 2).Such a transfer posting is always carried out in one step and without advance
planning. The posting can only be carried out from the unrestricted-use stock of
the issuing material into the unrestricted-use stock of the receiving material.

c) 3).The transferred quantity is deducted from unrestricted-use stock of the

issuing material and posted into unrestricted-use stock of the receiving material.

d) For every item you enter, two material document items are created:

e) an item for the issuing material an item for the receiving material

f) Parallel to the material document, an accounting document is created. The

issuing material master record determines the value of the transfer posting.

g) Enter the number of the receiving material. Enter a plant and a storage location
only if you simultaneously want to post the stock to another plant or storage
location. If the receiving material is handled in batches, the system prompts you
to enter a batch.

h) Enter the items. For each item, you can still change the plant and the issuing
storage location. Check the data on the overview screen and post the
document.

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FUNCTIONAL REQUIREMENT SPECIFICATION FOR
SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

i) After you do the material to material transfer in IM you have to create transfer
order for the posting change notification created in material document in lt06.
The bin stock will in interim storage type 922.once you confirm the transfer order
the bin stock of the material will be reduced from the interim storage area to the
destination bin.

3.11 INITIAL STOCK UP LOAD WITH 561 MOV. TYPE

Process General Explanation

When you are going from legacy to SAP, the initial stock is maintained in the system
With 561 Movements.

Process;-

a) Stock upload should be done in IM first into the storage location that is
assigned to your warehouse. Initial stock upload in IM will result in quant’s in
storage type 998 (interim storage type works as an interface to IM) and after
that you can move the quant’s to the (normal) storage type / storage bins by
creating TOs.

3.12 SALES ORDER GOODS ISSUE 601 MOV.TYPE

Process General Explanation

Goods issue for an outbound delivery in the Warehouse Management system (WMS)
includes picking and goods issue posting for a material to be delivered, based on the
outbound delivery. If you map the goods issue process via an outbound delivery, you
can execute the processes related to the goods issue within the warehouse (picking,
stock removal) before you trigger the actual goods issue posting.

Process Flow

Movement Type 601 IN shipping, this movement type is created automatically with the
goods issue for delivery function. The quantity is taken from unrestricted-use you have
created outbound deliveries or scheduling agreements in the Shipping (LE-SHP)
component based on sales orders. The outbound deliveries serve as reference
documents for the picking processes to be performed in the WMS. The material to be
picked is stored in a WM-managed storage location.

You create the outbound delivery for a sales order or for another preceding document.

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FUNCTIONAL REQUIREMENT SPECIFICATION FOR
SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

The system recognizes at outbound delivery item level which items are relevant for
stock removal with the WMS. It sets the WM activity status in the outbound delivery to A
(relevant to Warehouse Management).

You create the transfer order for the outbound delivery for picking from your warehouse.

You can create the transfer orders direct or let the system create them automatically.
For more information, see Creating Transfer Orders.

You can create several transfer orders per outbound delivery if you have activated the
transfer order split in Customizing for Warehouse Management.

You can take into account batch information when creating transfer orders for picking.

If the batches to be picked are not defined in the outbound delivery, and if you want to
pick more than one batch to be able to cover the required quantity, you must confirm
these batches to the outbound delivery. In doing so, you create a new outbound
delivery item for each batch.

The system sets the WM Activity Status in the delivery to B, which means that a
transfer order has been created but not confirmed.

A print out of the TO serves as a picking document when removing goods from the
source storage bin that has been determined, to the goods issue interim storage area.

By confirming the transfer order, you confirm that the goods have been brought to the
goods issue interim storage area.In doing so, you record any stock differences between
the required quantity and the picked quantity. Post the goods issue for the outbound
delivery.

3.13 REVERSAL PROCESS SALE ORDER GOODS ISSUE 602 MOV.TYPE

PROCESS GENERAL EXPLANATION

Goods issue reversal means that you cancel the goods issue posting for a delivery. This
function enables you to remove the posting without having to create a returns delivery
and then having to post a goods receipt for it (see also Processing Returns after Goods
Issue Posting). This function can be especially useful if you have accidentally posted
goods issue, for example, and you would like to reverse it. Goods issue reversal usually
occurs shortly after goods issue posting.

Process Flow

When you reverse goods issue for a delivery, the system creates a cancellation
document that adopts the quantities and the valuation from the original goods issue
document, and also executes the respective value and quantity posting to stock.
Procedure.

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FUNCTIONAL REQUIREMENT SPECIFICATION FOR
SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

From shipping, choose Post Goods Issue ® Cancellation/reversal.

The Reverse goods movement screen appears. Enter your selection criteria, for
example, route, goods issue date, shipping point, and so on, and choose Execute. A list
of all deliveries that correspond to your selection criteria appears.

From the list of deliveries to be reversed, you can branch directly to a list entry in the
delivery by double clicking on the entry.

Select the deliveries for which you wish to reverse goods issue and choose
Cancel/reverse.

A dialog box appears. In the dialog box, confirm that you want to reverse goods issue.

in wm create to with reference to cancelled outbound delivery LTOG Enter warehouse

number , outbound delivery and execute , select line item and choose put away
foreground a popup will appear enter storage type , storage bin and choose adopt.
Stock will pick up from 916 shipping area deliveries.

In Display Transfer order Lt22 enter warehouse number, interim storage type 916 and
execute, confirm to Lt12.

3.14 RETURN SALES ORDER 651 MOV TYPE

Process General Explanation.

If a customer returns goods, you must first determine whether or not a returns delivery
exists for the returns in the Sales (SD-SLS) component. You then enter the return with
or without a returns delivery. Since returns from the customer are usually examined, the
quantity returned is first posted to blocked stock returns. As is the case with goods
receipt blocked stock, blocked stock returns are neither valuated nor do they count as
unrestricted-use stock. If an examination proves that the returned quantity should be
taken over into unrestricted-use stock, you enter the transfer to unrestricted-use stock
in a second step. It is at that time that the valuation of the goods receipt occurs.

Process Flow

First of all you need to create a return order with reference to sales order /Billing
document

In Standard the return order is RE.

Create the return delivery for the return order RE

And do PGR with movement type 651 now check in MMBE the stock at returns

The reverse process starts in ware house after create sales return order with order type
RE. And with reference to sales return order out bound delivery created

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FUNCTIONAL REQUIREMENT SPECIFICATION FOR
SAP ERP ECC 6.0 SYSTEM – WAREHOUSE MANAGEMENT
Document Number SAP-FRS-XXX-XX

In change out bound delivery post goods receipt. And return delivery saved.

Stock available at 904 interim storage types,Create To with reference to tr-Lt04 and
confirm to Lt12

In migo select transfer posting other with Tf mov type 453 and save material document
posted which result create posting change notification.

Then create Transfer order with reference to posting change Notification (LT05) and
confirm it.

This will complete the process.

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