Warehouse

Management

By Shuja Ansari
May 2006

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Warehouse Structure

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Warehouse Structure

Storage Unit

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Storage Types

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 Storage Section

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 Storage Bin

• A storage type generally contains several storage spaces

or slots. These are called storage bins in Warehouse
Management (WM). The storage bin is the smallest
available unit of space in a warehouse. The storage bin
therefore describes the position in the warehouse where
the goods are or can be stored.
• Since the address of a storage bin is frequently derived
from a coordinate system, a storage bin is often referred
to as a coordinate. The coordinate 01-02-03 for example,
can refer to a storage bin in row 1, stack 2, and level 3.

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 Storage Bin

• You can also define the following additional

characteristics of a storage bin:
• Maximum weight
– Total capacity
– Fire containment section
– Storage bin type (for example, for small or large pallets)

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 AIME WM Structure

Material type Storage type Storage section Bin Type

100(Floor)
Rack (Third, second, first,
Semi Finished Goods 200(Drive-In) 100(Bulk)
ground)

300(Picking)

100(Floor)
Standard
Finished Goods 200(Drive-In) 300 (Packed) Rack (third, second, first,
ground)
300(Picking)

100(Floor)
Rack (Third, second, first,
Packaging 200(Drive-In) 500 (Packaging)
ground)

300(Picking)

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 Warehouse Processes
• Receive products to stock from a regular purchase order
• Return products to a vendor from a stock location against a
purchase order
• Move products from Incoming Inspection Area to stockroom
location after acceptance by QA
• Move products from Incoming Inspection Area to a rejected
stockroom location when rejected during incoming inspection
• Move products from a rejected stockroom location to a normal
location after sorting or sampling
• Move from one product number to another to change the
product number
• Transfer products from stockroom locations to WIP (production
order)
• Complete and move Finished product to stock (production
order)

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 Warehouse Processes
• Transfer products to shipping stockroom’s locations
• Move products from one bin in a stockroom to bin in the same
stockroom
• Move products from one location in one stockroom to another
location in a different stockroom
• Scrap products from a stockroom location or a WIP location
• Miscellaneous issue from a stockroom location (e.g. samples for
engineering)
• Miscellaneous receipt to a stockroom location (e.g. rework,
return of samples)
• Throw out obsolete inventory
• Transfer products for deliveries
• Return products from customers
• Stock issue on cost center
• Stock entry on cost center
• Return from production

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 Warehouse Processes
• Goods Receipt in WM
Manufacturing
outside SAP Confirm
Production
order

P Purchase
Mvt 501
order

Mvt 101

Manual
Goods receipt
TO creation Physical TO
TO printing
transfer Confirmation

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 Warehouse Processes
• GR Cancellation in WM

If cancellation happened
after putaway TO
TO creation TO printing
Confirmation
GRV

Accounting
postings

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 Warehouse Processes
• Outbound Delivery / Goods Issue in WM

Outbound
delivery

TO creation

Physical TO
TO printing
transfer Confirmation

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 Warehouse Processes
• TO creation:
– The TO is created according to the material and the storage type
– The TO is printed by manual validation
• Physical transfer:
– The forklift driver use the TO slip to know from where to take the
stock
– If he wants to change the proposed quantity by storage bin, he’ll
have to indicate it on the TO slip
• TO Confirmation:
– During TO confirmation, quantity differences can be recorded (in
source storage bin or in difference storage type)
– For shipping Transfer Order, the confirmation will update the
delivered quantity with the confirmed quantity

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 Warehouse Processes

• Inbound flows

Purchased order goods receipt

Purchased order goods receipt with manual TO creation
Production order goods receipt
Destination storage bin change during confirmation
Cancellation of goods receipt

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 Warehouse Processes

Outbound flows

Goods issue on cost center

Scrap
Outbound delivery
Picking
Post Goods Issue

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 Warehouse Processes
• Physical Inventory Process

• Four ways to handle the inventory:

– Full Physical inventory:
• The inventory is done once or twice a year for the complete stock
– Continuous inventory:
• The inventory is done by storage bin during the year, a list of storage bin
being counted every week
• All storage bins are counted several times during the year
– Cycle counting:
• The physical inventory is done by material number, the frequency of the
inventory based on the ABC code of the materials
– Manual: correct known differences as they are found.

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 Warehouse Processes
• Physical Inventory
Inventory
ABC codes document
assignment creation Inventory Inventory Inventory Inventory Inventory Inventory
document document document document document Clearing
activation print count recount Clearing in WM in IM

Manual Inventory
document
creation

Automatic
FI FI posting

C
Automatic CO
posting

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