Processes in Logistics Execution Edited PDF

LO140 Processes in Logistics Execution
LO140
R/3 System Release 46C 27.03.2001
0
LO140 Processes in Logistics Execution ............................................................................................................................. 0-1
Copyright............................................................................................................................................................................... 0-2
Logistics Execution......................................................................................................................................................... 0-3
Course Prerequisites........................................................................................................................................................ 0-4
Target Group .................................................................................................................................................................... 0-5
Course Overview.................................................................................................................................................................. 1-1
Course Goals .................................................................................................................................................................... 1-2
Course Objectives............................................................................................................................................................ 1-3
Course Content................................................................................................................................................................. 1-4
Main Business Scenario ................................................................................................................................................. 1-5
Navigation ............................................................................................................................................................................. 2-1
Navigation: Unit Objectives .......................................................................................................................................... 2-2
Navigation: Business Scenario...................................................................................................................................... 2-3
Logging On to the System ............................................................................................................................................. 2-4
SAP Easy Access - Standard ......................................................................................................................................... 2-5
Role -Based User Menu................................................................................................................................................... 2-6
Screen Elements............................................................................................................................................................... 2-7
Selecting Functions......................................................................................................................................................... 2-8
Field Help: F1 and F4 ..................................................................................................................................................... 2-9
Menus: System and Help.............................................................................................................................................. 2-10
SAP Library .................................................................................................................................................................... 2-11
User-Specific Personalization ..................................................................................................................................... 2-12
Personalizing the Frontend with GuiXT.................................................................................................................... 2-13
Elements of the Workplace.......................................................................................................................................... 2-14
Active Applications (In Use)....................................................................................................................................... 2-15
Workplace Favorites ..................................................................................................................................................... 2-16
Personalizing MiniApps............................................................................................................................................... 2-17
Workplace: Advantages ............................................................................................................................................... 2-18
Navigation: Unit Summary .......................................................................................................................................... 2-19
Navigation - Exercises.................................................................................................................................................. 2-20
Navigation - Solutions.................................................................................................................................................. 2-25
Overview of Logistics Execution ...................................................................................................................................... 3-1
Overview of Logistics Execution: Unit Objectives ................................................................................................... 3-2
Overview: Business Scenario ........................................................................................................................................ 3-3
Logistics Execution......................................................................................................................................................... 3-4
SAP LES: Integrated Part of the Supply Chain .......................................................................................................... 3-5
Process Integration.......................................................................................................................................................... 3-6
Overview: Logistics ........................................................................................................................................................ 3-7
Goods Receipt: Procurement......................................................................................................................................... 3-8
Purchase Orders ............................................................................................................................................................... 3-9
GR for Purchase Order: Document Overview......................................................................................................... 3-10
Goods Issue: Sales Order Processing......................................................................................................................... 3-11
GI for Sales Order: Document Overview.................................................................................................................. 3-12
The Shipping Process.................................................................................................................................................... 3-13
Warehouse Management.............................................................................................................................................. 3-14
Overview: Unit Summary ............................................................................................................................................ 3-15
Data Used in Exercises................................................................................................................................................. 3-16
Exercises ......................................................................................................................................................................... 3-18
Solutions.......................................................................................................................................................................... 3-28
Organizational Units and Master Data ............................................................................................................................. 4-1
Unit Objectives ................................................................................................................................................................ 4-2
Business Scenario ............................................................................................................................................................ 4-3
Organizational Units: Topic Objectives ...................................................................................................................... 4-4
The Organizational Unit ................................................................................................................................................. 4-5
Organizational Units in a Warehouse Number........................................................................................................... 4-9
The Organizational Unit ............................................................................................................................................... 4-10
The Organizational Unit ............................................................................................................................................... 4-11
Organizational Structures: Logistics and LES .......................................................................................................... 4-12
Storage Bins and Quants .............................................................................................................................................. 4-13
Storage Bins and Quants .............................................................................................................................................. 4-14
Information Contained in a Quant.............................................................................................................................. 4-15
Material Master.............................................................................................................................................................. 4-16
Views in a Material Master Record ............................................................................................................................ 4-17
Material Type................................................................................................................................................................. 4-18
Maintaining a Material Master Record: Screen Sequence ..................................................................................... 4-19
Customer Master............................................................................................................................................................ 4-20
Vendor Master................................................................................................................................................................ 4-21
Unit Summary ................................................................................................................................................................ 4-22
Exercises ......................................................................................................................................................................... 4-23
Solutions.......................................................................................................................................................................... 4-28
Goods Receipts..................................................................................................................................................................... 5-1
Goods Receipts: Unit Objectives .................................................................................................................................. 5-2
Goods Receipts: Business Scenario ............................................................................................................................. 5-3
Goods Receipts and Transfer Requirements: Topic Objectives .............................................................................. 5-4
The Inbound Process....................................................................................................................................................... 5-5
GR for Purchase Order: Document Overview........................................................................................................... 5-6
Information in Transfer Requirement .......................................................................................................................... 5-7
Planning a Movement..................................................................................................................................................... 5-8
Putaway Steps.................................................................................................................................................................. 5-9
Transfer Order for Putaway: Topic Objectives ........................................................................................................ 5-10
Goods Receipt: Process Flow...................................................................................................................................... 5-11
Transfer Order for Transfer Requirement ................................................................................................................. 5-12
Procedure for Creating TOs in the SAP System ...................................................................................................... 5-13
Palletization Instructions.............................................................................................................................................. 5-14
Printing a Transfer Order ............................................................................................................................................. 5-15
Transfer Order Confirmation....................................................................................................................................... 5-16
Handling Differences.................................................................................................................................................... 5-17
Putting Away Goods Received: Topic Objectives................................................................................................... 5-18
Goods Receipt with Inbound Deliveries: Process Flow.......................................................................................... 5-19
Inbound Delivery ........................................................................................................................................................... 5-20
Ways of Creating an Outbound Delivery .................................................................................................................. 5-21
Information in Inbound Delivery ................................................................................................................................ 5-22
Goods Receipts: Unit Summary .................................................................................................................................. 5-23
Exercises ......................................................................................................................................................................... 5-24
Solutions.......................................................................................................................................................................... 5-30
Goods Issues ......................................................................................................................................................................... 6-1
Goods Issues: Unit Objectives ...................................................................................................................................... 6-2
Goods Issues: Business Scenario .................................................................................................................................. 6-3
Outbound Deliveries: Topic Objectives ...................................................................................................................... 6-4
The Shipping Process...................................................................................................................................................... 6-5
Structure of an Outbound Delivery .............................................................................................................................. 6-6
Updating Orders............................................................................................................................................................... 6-7
Document Flow................................................................................................................................................................ 6-8
Ways of Creating an Outbound Delivery .................................................................................................................... 6-9
Outbound Delivery Monitor........................................................................................................................................ 6-10
Scheduling ...................................................................................................................................................................... 6-11
Backward Scheduling ................................................................................................................................................... 6-12
Forward Scheduling ...................................................................................................................................................... 6-13
Determining the Shipping Point.................................................................................................................................. 6-14
Transfer Order for Outbound Delivery: Topic Objectives ..................................................................................... 6-15
Steps in the Outbound Process.................................................................................................................................... 6-16
Transfer Order for Outbound Delivery ...................................................................................................................... 6-17
Lean WM - Using a TO as a Pick Order ................................................................................................................... 6-18
Connection Between Shipping and WM................................................................................................................... 6-19
Ways of Creating TOs for Deliveries......................................................................................................................... 6-20
Creating Groups in the Outbound Delivery Monitor .............................................................................................. 6-21
Ways of Creating TOs: WMTA .................................................................................................................................. 6-22
Picking: Topic Objectives............................................................................................................................................ 6-23
Rough Workload Estimate: Objectives...................................................................................................................... 6-24
Rough Workload Estimate: Key Figures................................................................................................................... 6-25
Picking Waves................................................................................................................................................................ 6-26
Two-Step Picking .......................................................................................................................................................... 6-27
Radio Frequency (RF) Connection: Topic Objectives............................................................................................ 6-28
Advantages of RF Connections................................................................................................................................... 6-29
Radio Frequency Activities ......................................................................................................................................... 6-30
Picking Using RF: Scanning Bins .............................................................................................................................. 6-31
RF Queue Management................................................................................................................................................ 6-32
Radio Frequency Monitor............................................................................................................................................ 6-33
Packing: Topic Objectives ........................................................................................................................................... 6-34
Packaging Materials ...................................................................................................................................................... 6-35
Handling Units as Shipping Elements ....................................................................................................................... 6-36
Packing: Functions........................................................................................................................................................ 6-37
Handling Units in the Supply Chain .......................................................................................................................... 6-38
Business Processes Inbound ........................................................................................................................................ 6-39
Business Processes Outbound ..................................................................................................................................... 6-40
Posting a Goods Issue: Topic Objectives .................................................................................................................. 6-41
Posting a Goods Issue: Overview............................................................................................................................... 6-42
Effects of a Goods Issue Posting................................................................................................................................ 6-43
Goods Issues: Unit Summary ...................................................................................................................................... 6-44
Exercises ......................................................................................................................................................................... 6-45
Solutions.......................................................................................................................................................................... 6-57
Transportation....................................................................................................................................................................... 7-1
Transportation: Unit Objectives.................................................................................................................................... 7-2
Transportation: Business Scenario ............................................................................................................................... 7-3
Inbound and Outbound Shipments: Topic Objectives .............................................................................................. 7-4
Transportation Activities in the SAP System............................................................................................................. 7-5
Inbound Shipments.......................................................................................................................................................... 7-6
Outbound Shipments....................................................................................................................................................... 7-7
Individual Shipments ...................................................................................................................................................... 7-8
Collective Shipments ...................................................................................................................................................... 7-9
Transportation Chain .................................................................................................................................................... 7-10
Shipment Documents: Topic Objectives ................................................................................................................... 7-11
Transportation Planning and Processing................................................................................................................... 7-12
Shipment Documents and Their Functions............................................................................................................... 7-13
Structure of Shipment Documents.............................................................................................................................. 7-14
Creating Shipments ....................................................................................................................................................... 7-15
Shipment Stages............................................................................................................................................................. 7-16
Shipment Cost Documents: Topic Objectives.......................................................................................................... 7-17
How Shipment Costs Fit into the Overall Process................................................................................................... 7-18
Calculating Shipment Costs: Prerequisites ............................................................................................................... 7-19
Creating a Shipment Cost Document......................................................................................................................... 7-20
Items in a Shipment Cost Document.......................................................................................................................... 7-21
Transportation: Unit Summary ................................................................................................................................... 7-22
Exercises ......................................................................................................................................................................... 7-23
Solutions.......................................................................................................................................................................... 7-27
Reporting ............................................................................................................................................................................... 8-1
Reporting: Unit Objectives ............................................................................................................................................ 8-2
Reporting: Business Scenario........................................................................................................................................ 8-3
Warehouse Activity Monitor......................................................................................................................................... 8-4
Warehouse Activity Monitor Objects .......................................................................................................................... 8-5
Shipment Details .............................................................................................................................................................. 8-6
Itinerary and Transportation Network.......................................................................................................................... 8-7
Warehouse Controlling................................................................................................................................................... 8-8
Transportation Information System (TIS) ................................................................................................................... 8-9
ABAP List Viewer ........................................................................................................................................................ 8-10
Reporting: Unit Summary ............................................................................................................................................ 8-11
Exercises ......................................................................................................................................................................... 8-12
Solutions.......................................................................................................................................................................... 8-15
ASAP...................................................................................................................................................................................... 9-1
ASAP: Business Scenario .............................................................................................................................................. 9-2
ASAP: Objectives............................................................................................................................................................ 9-3
TeamSAP Components .................................................................................................................................................. 9-4
AcceleratedSAP: Implementation Planning................................................................................................................ 9-5
AcceleratedSAP Implementation Roadmap................................................................................................................ 9-6
Global ASAP.................................................................................................................................................................... 9-7
IMG: Tasks ....................................................................................................................................................................... 9-8
Customer-Specific Configuration................................................................................................................................. 9-9
Accelerated Industry Solutions: Steps....................................................................................................................... 9-10
Implementation Planning and Tools: Summary ....................................................................................................... 9-11
Conclusion........................................................................................................................................................................... 10-1
Course Objectives.......................................................................................................................................................... 10-2
Recommended Follow-up Courses............................................................................................................................. 10-3
Recommended Follow-up Activities.......................................................................................................................... 10-4
LO140 Processes in Logistics Execution
LO140
Processes in
Logistics Execution
 SAP AG
AG 1999
n R/3 System
n Release 4.6C
n October 2000
n Material number 50042474
Course Content
Preface
Unit 1 Course Overview Unit 6 Goods Issues

Unit 2 Navigation Unit 7 Transportation
Unit 3 Overview of Logistics Unit 8 Reporting, Planning
Execution and Monitoring
Unit 4 Organizational Units and Unit 9 ASAP and IMG
Master Data
Unit 10 Conclusion
Unit 5 Goods Receipts
 SAP AG
(C) SAP AG LO140 1-4

Main Business Scenario
l Our model company, IDES, orders a range of

materials from vendors, and offers and sells these
to its customers.
l This model company is implementing an R/3
System.
l You are a member of the project team. You are
responsible for the logistics aspects of the system.
l In this course, you will check and test the
functionality of the R/3 System to see if and how it
can be used to handle the business processes for
which you are responsible.
 SAP AG 1999

Overview of Logistics Execution
Contents:
l Inbound process in the SAP System - without
Warehouse Management
l Outbound process with lean WM
l Internal warehouse processes
l Where Logistics Execution fits into the supply chain
 SAP AG 1999

Logistics Execution
Vendor
Customer
Warehouse Border
Production warehouse
Distribution center
Production site
 SAP AG 1999
n The Logistics Execution component (LE) maps a company's logistics processes. The component
covers the entire process chain - from the vendor, internal warehouse, production site, and
distribution center right through to the customer.
n LE processes include:
Ÿ Inbound process - the goods are collected from the vendor and placed in storage in a company
warehouse.
Ÿ Outbound process - the goods are removed from storage, and delivered to the customer.
Ÿ Internal warehouse processes such as posting changes, stock transfers, inventory, and so on.
Ÿ Transportation process - inbound and outbound shipments, as well as the calculation and
settlement of shipment costs

SAP LES: Integrated Part of the Supply Chain
Planning and Optimization

l Planning & simulation
l Consolidation
Forecast
Supply Network Planning
Transport- SAP LES Warehouse

ation Management
Purchasing Sales
Production
Business Processes
 SAP AG 1999
n The Logistics Execution System is an integral part of the supply chain. It forms the basis for logistics
processing, and provides a link between planning, optimizing, and actually working through business
processes.
n The LES, with its warehouse and transportation management functions, supports all the necessary
business process flows. It is the "executing" level of the supply chain. This results in a streamlined
flow of information and material flow, and makes the function chain more transparent. This, in turn,
means that the different levels - planning, optimization, and execution - can communicate efficiently
with each other.
n SAP LES is an "open" system, and can be integrated into an SAP R/3 System. It can also be used in
conjunction with supply chain planning and optimization tools such as SAP APO, Data Warehouses
like the SAP BW, and other mySAP.com components.

Process Integration
Sales Order Processing (SD)

Presales Order Delivery/
Billing Payment
activities processing Transportation
Logistics Execution (LE)

Requirements
Goods
issue
Customer
account
G/L
Determination of Inventory
Stock
requirements
requirements Management
Management
Vendor
Requirements
receipt
Goods
Source Processing of Invoice Payment

determination purchase orders Verification
Ordering (MM)
 SAP AG 1999
n The logistics process can be subdivided into the following main processes:
Ÿ Sales order processing for goods issues
Ÿ Ordering (purchase order processing) for goods receipts
Ÿ Physically moving goods in the supply chain
n Sales order processing is handled mainly by the SD component (Sales and Distribution), whereas
ordering is processed in the MM component (Materials Management). SAP Logistics Execution (LE)
represents the link between the two processes.

Overview: Logistics
Presales
Sales order
activities
MRP
External procurement Internal procurement
Purchasing Production
Invoice Inventory Management

Verification
Posting
change
Goods receipt
Invoice Goods
receipt issue
Shipping Billing
Internal and external
accounting
 SAP AG 1999
n The various steps in the logistics process chain are processed in different components of the SAP
System. The different areas are closely connected, and linked together by means of a document flow.
n The logistics process can be subdivided into a material flow and a value flow. Material requirements
planning is processed in the Materials Management component (MM). Information on requirements
is passed on to this component from sales orders, for example. The requirements are passed on to
internal or external procurement, and processed by Purchasing of Production (PP).
n The Inventory Management component (IM) maps transactions that result in changes involving
stock: goods receipts, goods issues, reservations, posting changes, and stock transfers. The
Warehouse Management component (WM) is integrated into the material flow, and maps complex
warehouse structures and stock movements. The logistical process flows in Logistics Execution (LE)
are then processed further in the Shipping component. The process is completed in the Billing
component. The Billing component is integrated with internal and external accounting components
(FI and CO).
n In Invoice Verification, the value flow is updated, and the various details passed on from the goods
receipt, purchase order and goods issue are summarized.

Goods Receipt: Procurement
Determination of Determination of Selection of vendor

requirements source of supply
Purchase
req.
Handling of payments Ordering

Purchase
order
Invoice verification Goods receipt Purchase order

monitoring
Invoice Purchase
order
?
 SAP AG 1999
n Determination of requirements: The department in question can report that materials are required by
submitting a purchase requisition to Purchasing. If you have defined an appropriate MRP procedure
in the material master record of a material, the R/3 System can generate the purchase requisition
automatically.
n Determination of source of supply: The R/3 System helps the purchaser (buyer) to determine
possible sources of supply. One way of determining sources of supply is to create requests for
quotation, and then to enter the corresponding quotations. It is also possible to draw on purchase
orders and conditions that already exist in the system.
n Selection of vendor: A comparison of the prices contained in the various quotations makes it much
easier to select vendors. Letters of rejection can be generated and sent automatically.
n Ordering: The system boasts a range of features that make it easier to create purchase orders.
n Purchase order monitoring: The purchaser can monitor the progress of the purchase order in the
system. For example, he or she can find out if a goods receipt or invoice receipt has been posted for
an order item. The system also supports various dunning (urging) procedures.
n Goods receipt: The system checks the goods receipt quantity against the purchase order quantity.
n Invoice verification: The vendor invoices are checked to make sure that they are correct.
n Handling of payments: Normally, payments to vendors are processed in Financial Accounting.

Purchase Orders
Purchasing
Purchase
requisition
Purchase
order External vendor
Request
for quotation
(inquiry)
Master Other plant

data
 SAP AG 1999
n A purchase order is a formal request made of a vendor to supply goods or services under specific
terms and conditions.
n You can create a purchase order without a reference, or with a reference to a purchase requisition,
request for quotation, or another purchase order.
n When you are entering purchase order data, the system proposes default values to help you. For
example, the ordering address, as well as conditions of payment and shipping (Incoterms) are
proposed by reading the corresponding information from the vendor master record. If you have
created a material master record for a specific material in the SAP System, this is read by the system
so that it can propose the material short text, for example, or the material group. If you have already
defined a purchasing information record in the system, you can default a price proposal for the
purchase order.
n Either you send the purchase order to a vendor, or you trigger a stock transfer order from another
plant in your company. In the latter case, you can take account of the shipping costs in the purchase
order.
n Note: To find out more about stock transfer orders, please refer to the Materials Management
documentation on Inventory Management. ("Special Stocks and Special Forms of Procurement in
Materials Management.")

GR for Purchase Order: Document Overview
Purchase
order External vendor
Delivery of materials
or
ordered
other plant
Purchasing/Inventory Management
Material
document
Goods receipt
posting
Accounting
document(s)
 SAP AG 1999
The process for posting a goods receipt with reference to a purchase order might be as follows:
n The goods receiving point can check to see if the delivery matches up with the purchase order data
(in other words, if what was ordered was delivered).
n The system can propose default values from the purchase order (for example, item and quantity) -
this makes entering goods receipt data easier. It also means that overdelivery and underdelivery can
be detected more easily when the goods are received.
n The ordering data is updated automatically - this is triggered in part by the deliveries. If delivery
deadlines are not met, the purchasing department can send a reminder.
n When a goods movement is posted in Inventory Management, a material document is generated.
This document acts as proof that one or more movements took place, and can be used as a source of
information by all downstream applications. When the goods receipt is posted, a material document
is generated. This document contains information on the material delivered, and on the quantity
delivered. It also contains details of the storage location where the material was received and stored.
n In the case of transactions that affect material valuation, at least one accounting document is
generated. This contains information on the affects the material movement has on accounting.
(C) SAP AG LO140 3-10

Goods Issue: Sales Order Processing
Presales activities Order processing Procurement
Payment Billing Shipping /

transportation /
goods issue
Rechnung
Invoice
 SAP AG 1999
n In R/3, sales and distribution processing is subdivided into the following areas: sales support, sales,
shipping, transportation, and billing.
n Every sales activity made in one of these areas is documented by means of a sales document.
n Various business transactions in sales, shipping, transportation, and billing can be mapped by means
of specially tailored document types.
n Each document is identified by means of a unique document number. Special search features (called
"matchcodes") are available to help you find a document easily.
n Each document is assigned an overall status that shows the processing stage that the document has
reached. The overall status is determined from the various statuses in the document. These show
what stage the individual steps that make up the sales activity have reached.
n You can analyze and evaluate sales and distribution transactions in the Sales Information System.
n Sales and distribution processing interfaces with several other areas (for example, Materials
Management, Financial Accounting, and Controlling).
n Shipping is a follow-on activity to sales. In the Shipping component, you can perform a range of
shipping activities (picking, packing, printing out shipping documents, and so on). All of these
activities are based on a delivery document (outbound delivery).
(C) SAP AG LO140 3-11

GI for Sales Order: Document Overview
SD
Sold-to party Outbound

Sales order Transfer
delivery
order
(pick order)
Ship-to
party
Shipment Goods issue
Bill-to Billing document

party
Accounting Material
Payer document(s) document
 SAP AG 1999
n A range of documents are used in the SAP System to map the individual steps in the goods issue
process (inbound process). These documents contain relevant information on the business
transactions. In other words, the various documents each represent business transactions.
Ÿ Sales documents are documents that are created during presales and order processing. Requests for
quotation, quotations, contracts, scheduling agreements, and standard orders are all examples of
sales document types.
Ÿ Outbound deliveries, transfer orders (transfer requirements), and shipments are documents that are
used in the goods issue process. A goods receipt document contains changes involving stock, and
forms the basis for the corresponding accounting documents.
Ÿ A billing document is a document in the Billing component, and forms the basis for the
corresponding accounting documents.
n Business partners can be legal persons or natural persons who are involved directly in conducting a
business transaction with you. Possible business partner roles (functions) include: sold-to party, ship-
to party, bill-to party, and payer.
(C) SAP AG LO140 3-12

The Shipping Process
6 7
3 4 5
1 2
9 10 12 13 14
8 11
19 20 21
16 17 18
15 26 27 28
23 24 25
22
29 30 31
Sales
order Shipping
point
Functions affecting shipping:

• Determination of shipping • Monitoring of shipping
point due dates
• Determination of route • Create delivery
• Scheduling
Warehouse
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
. . . ..........................
. ...
.... ...
.... ...
.... . . . .. . . ...
.... ...
• Goods issue • Shipping documents • Packing • Picking
 SAP AG 1999
n SAP LE functions available for shipping processing include:

Ÿ Monitoring of shipping due dates in reference documents (e.g. sales orders and purchase orders)
Ÿ Creating and editing outbound deliveries
Ÿ Monitoring availability
Ÿ Picking (with a connection to Warehouse Management)
Ÿ Packing the outbound delivery
Ÿ Printing out and passing on shipping documents
Ÿ Processing the goods issue
n The outbound deliveries posted in the 'Goods Issue' shipping department can be used to create a
worklist for billing (billing due list).
(C) SAP AG LO140 3-13

Warehouse Management
Storage bin management Planning and monitoring
Stock movements Radio frequency Warehouse control

(RF) connection
 SAP AG 1999
n In the Warehouse Management system (WMS), you manage complex warehouse structures with
various types of storage areas (high rack random storage, block storage, fixed bin storage, and so on)
within one or more plants - right down to the storage bin level.
n The processing of all stock movements (such as goods receipts, goods issues, stock transfers using
stock placement and stock removal strategies) is controlled in WM, and takes the characteristics of
the individual materials into account.
n Stock movements and other warehouse activities such as physical inventories are supported by a
direct radio frequency connection.
n Non-SAP warehouse control systems can be linked up to the Warehouse Management System via
the WM-LSR interface.
(C) SAP AG LO140 3-14

Overview: Unit Summary
You are now able to:

l Work through a simple inbound process (order, goods
receipt, invoice verification)
l Work through a simple outbound process (sales order,
outbound delivery, goods issue, billing)
l Explain the idea behind the Warehouse Management
System (physical stock movements in a complex
warehouse structure)
l Explain how Logistics Execution fits into the supply
chain as the link between goods receipt, goods issue,
internal warehouse processes, and transportation
 SAP AG 1999
(C) SAP AG LO140 3-15

Solutions
Unit: Overview of Logistics Execution
1-1 How do the processes fit into the supply chain?

1-1-1 The individual steps in the ordering process are: determination of
requirements, determination of source of supply, selection of vendor,
ordering, purchase order monitoring, goods receipt, invoice verification, and
handling of payments.
1-1-2 The individual steps in the sales order processing process are: presales
activities, order processing, procurement, shipping, goods issue, billing, and
payment.
1-1-3 The Logistics Execution System covers the following processes: shipping,
goods issue, placing in storage, inbound and outbound transportation.
2-1 Creating a purchase order
Logistics → Materials Management → Purchasing → Purchase Order → Create

→ Vendor/Supplying Plant Known
Field Name/Type of Data Values
Order type Standard purchase order
Vendor 1000
Purchasing organization IDES Germany(1000)
Purchasing group Chef, H. (000)
Company code IDES AG (1000)
Material LES01-##
PO quantity 48
Order unit PC
Delivery date Today’s date
Plant 1200
Storage location 0001
Save your purchase order.
2-2 Logistics → Materials Management → Purchasing → Purchase Order →

Display
3-1 Posting a goods receipt

(C) SAP AG LO140 3-28
Logistics → Logistics Execution → Inbound Process → Goods receipt for
Purchase Order, Order, Other Transactions → Enter Goods Receipt for Purchase
Order

Document number Number of your purchase
order
Item OK Select this option
Quantity in UnE 48
Storage location Materials store
Post the goods receipt.
3-2 Logistics → Logistics Execution → Inbound Process → Goods receipt for

Purchase Order, Order, Other Transactions → Display Material Document
Enter the number of your material document, and choose Enter.
3-3 Logistics → Materials Management → Purchasing → Purchase Order →

Display
Click Item details, and then choose the Purchase order history tab page.
4-1 Entering a vendor invoice

Logistics → Materials Management → Invoice Verification → Logistics Invoice
Verification→ Document Entry → Enter Invoice

Document date Today’s date
Purchase order Number of your purchase
order
Amount 21120 (net)
Tax amount 1920
Save your invoice.
(C) SAP AG LO140 3-29

5-1 Creating a sales order
5-1-1 Logistics → Sales and Distribution → Sales → Order → Create
Enter the order type Standard order (OR), and press Enter.

Sold-to party T-S11B##
Purchase order number LO140-##1
PO date Today’s date
Material LES01-##
Order quantity 12
Unit PC
Save the order.
5-1-2 Logistics → Sales and Distribution → Sales → Order → Display

The line item is to be delivered from plant 1200. Select item 10, and then
click the Display item details icon. You can view the delivering plant on the
Shipping tab page.

To display the document flow, choose Environment → Display document
flow. As you can see, the status is Open.
(C) SAP AG LO140 3-30

6-1 Creating an outbound delivery
6-1-1 Logistics → Logistics Execution → Outbound Process → Goods Issue for

Outbound Delivery → Outbound Delivery → Create → Single Document
→ With Reference to Sales Order

Shipping point 1200
Selection date 1 week from today
Order The number of your standard
order
6-1-2 Delivery quantity: 12 pcs

Pick. quantity: 0 pcs
6-1-3
Outbound Delivery → Outbound Delivery → Display → Environment →
Document flow
Standard order: Completed
Outbound delivery: Open
7-1 Picking the outbound delivery
7-1-1 Logistics → Logistics Execution → Internal Warehouse Processes →

Bins and Stock → Display → Total Stock per Material (Inventory
Management)

Material LES01-##
Plant 1200
48 pieces of material LES01-## are in unrestricted-use stock.

Outbound Delivery → Picking → Create Transfer Order → Single
Document
(C) SAP AG LO140 3-31

Warehouse number 012
Delivery The number of your outbound
delivery
Foreground/background Background

Outbound Delivery → Outbound Delivery → Display
Choose the Picking tab page.
Delivery quantity: 12 pieces
Pick quantity: 12 pieces

Outbound Delivery → Outbound Delivery → Change → Single Document
Click the Post goods issue icon.

Bins and Stock → Display → Total Stock per Material (Inventory
Management)

Material LES01-##
Plant 1200
36 pieces of this material are in unrestricted-use stock.
Logistics → Logistics Execution → Outbound Process → Goods Issue for

The status of the outbound delivery is Being processed.
(C) SAP AG LO140 3-32

8-1 Billing
8-1-1 Logistics → Sales and Distribution → Billing → Billing Document →
Create

Document The number of your outbound
delivery
Billing type Invoice
Save your invoice.
8-1-2 Logistics → Sales and Distribution → Billing → Billing Document →

Display → Environment → Display document flow
The status of the billing document is Completed.
9-1 Stock overviews in Warehouse Management

Bins and Stock → Display → Bin Status Report
Enter your warehouse number (###), and use the F4 Help function to select
storage type 004 (bulk storage). Storage type 004 has 10 storage bins.

Bins and Stock → Display → Total Stock per Material (Warehouse
Management)
Enter your warehouse number (###) and material LES02-##. The stock
overview shows you in which storage types the material is found. 240 pieces
of this material are in shelf storage.

Bins and Stock → Display → Bin Stock per Material
Enter material LES03-##, and your warehouse number (###). An overview
of the bins in which the material is stored appears.

Bins and Stock → Display → Single Displays → Storage Bin
Enter your warehouse number (###), storage type 005 and storage bin FIX-
03. Material LES05-## is stored in this storage bin.
(C) SAP AG LO140 3-33

Organizational Units and Master Data
Contents:
l Organizational Units in Logistics Execution
l Master Data in Logistics Execution
 SAP AG 1999

The Organizational Unit "Company Code"
Company Code
l Legally independent unit with a self-contained set of

accounts
l The following are created at the company code level:
è Financial statements
è Profit and loss statements
 SAP AG 1999

The Organizational Unit "Plant"
l A plant is an organizational unit in Logistics, and allows

you to look at a company from the point of view of
production, procurement, plant maintenance, and
materials planning.
l A plant is a branch or division within a company.
 SAP AG 1999
n A plant can be used to map various functions in a company, for example:

Ÿ Central delivery plant
Ÿ Regional sales office
Ÿ Production site
Ÿ Company headquarters
Ÿ Plant maintenance site
n When you create a new plant, you can use the Copy Plant function. If you use this function, the entry
in the plant table and all dependent Customizing tables and system tables where the plant appears as
a key are processed.

The Organizational Unit "Storage Location"
l An organizational unit that enables you to distinguish

between the various material stocks in a plant.
l Quantity-based inventory management data pertaining
to the plant is summarized at the storage location level.
 SAP AG 1999

The Organizational Unit "Warehouse Number"
l An organizational unit that maps the company from a

warehouse management perspective. A warehouse
number corresponds to a warehouse complex
containing different storage types that are organized
differently.
l The physical conditions of the warehouse are mapped
in the warehouse number.
 SAP AG 1999
n The warehouse number is the highest organization unit in Warehouse Management. It is used to
represent an entire warehouse complex, and is defined uniquely in the client. A warehouse number
maps the physical conditions in a warehouse complex.
n You define individual storage types within a warehouse number. These storage types represent the
different kinds of storage available in the warehouse number. Examples of storage types include bulk
storage, shelf storage, and fixed bin storage.

Organizational Units in a Warehouse Number
Goods Shipping
Fixed bin storage
receiving area
Door 1 zone Picking area 1
Staging Door 3
area 1
Picking area 2
Door 2
Storage type
005
Staging Door 4
Storage type area 2
902
Pallet storage Door 5

Bulk storage
Storage section 001
Storage
Storage section 002
type
916
Storage type Storage type
004 007
Warehouse Number 140

 SAP AG 1999
n A warehouse number comprises various storage types. A storage type is a collection of storage bins
with a similar process structure. A process structure is regarded as similar, for example, if the same
putaway strategy is used (bulk storage, pallet storage, ...), or even if the bins have a geographical
link.
n There are two kinds of storage types: physical storage types (i.e. storage types that actually exist),
and logical storage types. Goods receipt areas and goods issue areas are also considered to be storage
types. However, since stocks are only stored here for short amounts of time, they are referred to as
interim storage types.
n Storage bins are grouped together into storage areas to facilitate putaway (for example, section 001
for fast-moving items, section 002 for slow-moving items). It is also possible to create picking areas
for the purposes of picking, but this is optional.
n Further structuring options include doors and staging areas.

The Organizational Unit "Transportation Planning
Point"
Transportation
planning points
Planning, handling,
and settlement
of shipments
1010 1011 1200

Hamburg Internat. Hamburg Rail Dresden Truck
Ocean Freight Transportation Transportation
 SAP AG 1999
n A transportation planning point is the central point in a company where shipments are organized and
monitored. A transportation planning point can be a physical location or a group of people
responsible for processing shipments.
n Every shipment is created and processed by a transportation planning point.
n You can define transportation shipping points to meet your company's requirements - by location, for
example, or by mode of transport.
(C) SAP AG LO140 4-10

The Organizational Unit "Shipping Point"
Plant 1000 Plant 1012
6 7 7
2 3 4 5 4 5 6
1 13 14 2 3
13 1 4
8 9 10 11 12 20 21
1 11 12
7 18 19 8 9 10 18 19 20 21
15 16 1 25 2 6 2 7 28 151
6 17
2 7 28
22 23 2 4 22
23 2 4 25 2 6
2 9 30 31 29
30 31
Shipping point Shipping

for trucks point for rail
l A shipping point is an organizational unit that allows you to look

at a company from the point of view of shipping, the shipping
materials required, and the means of transportation required. On
the goods receipt side of things, the goods receiving point
corresponds to the shipping point.
 SAP AG 1999
n Shipping points are important organizational units used for shipping. They represent the physical
location or group of persons responsible for processing sales activities. Every delivery is processed
by one shipping point. Shipping points are assigned to one or more plants. They can be broken down
further into loading points.
(C) SAP AG LO140 4-11

Organizational Structures: Logistics and LES
Transportation
Company code Transportation
planning points
planning points
5 7
3 6
1 4 14
2 1 1 12 13
8 9 1 0 21
1 9 20
1 7 1 8
1 5 16 2 7 2 8
2 2 2 5 26
2 3 2 4
6 7 2 9 3 0 3 1
4 5
3
1 2
1 1 1 2 1 3 1 4
8 9 1 0 9 2 0 2 1
17 1 8 1
1 5 1 6 2 7 28
2 4 25 2 6
2 2 23
29 3 0 3 1
Shipping points
Plant Plant Shipping points
C
C BBB
A
BBB
A
Storage Storage
Warehouse
location location number
 SAP AG 1999
n The organizational units in LES are linked to the organizational structure of Logistics in the SAP
System. You can set up these assignments in Customizing - this is where you configure the SAP
System.
n Transportation planning points are assigned to a company code. Several transportation planning
points can be assigned to the same company code, but a transportation planning point cannot be
assigned to more than one company code.
n Shipping points are assigned to one or more plants. Several shipping points can be assigned to a
plant, and the same shipping point can be assigned to several plants.
n Warehouse numbers are assigned to a plant via a storage location. You can assign several plants and
several storage locations of a plant to the same warehouse number. However, you can only assign a
storage location to one warehouse.
(C) SAP AG LO140 4-12

Storage Bins and Quants
Bin Type
Small
Bin Type
Large
Storage Bins
 SAP AG 1999
n In Warehouse Management, the individual storage bins are defined within each storage type. A
storage bin is the smallest geographical or organizational unit that can be addressed by the system.
They can be mapped as coordinates.
Example: 02-04-09 (aisle 02, stack 04, level 09)
n Storage bins can be identified by means of a bin type.

Example: Bin type P1 for upper bins, bin type P2 for lower bins
n The existence of a material (with specific characteristic values) in a bin is referred to as a quant.
(C) SAP AG LO140 4-13

Storage Bins and Quants
One quant
Two
quants: One quant
mixed
storage
Quants are defined by:

§ Material § Special stock
§ (Batch) § Plant / storage location
§ Stock category § (Storage unit number)
 SAP AG 1999
n In the case of non-mixed bins (bins designated for storing only one material), only one quant may be
stored in a storage bin. If a new quant is put away in this storage bin, and it is compatible with the
quant already in the bin, this is referred to as an addition to existing stock. The two quants become
one.
n In bins designated for mixed storage, different quants may be stored in the same storage bin. These
quants might be different materials, batches, special stocks, or stock categories.
(C) SAP AG LO140 4-14

Information Contained in a Quant
Material Stock category

Plant/storage location Special stock
Batch Storage unit
Available stock
Putaway/pick?
Weight
GR date
GR number
Last movement
Blocking indicator
 SAP AG 1999
n Information used to identify the quant is stored in the quant itself. Information on the available stock
and any open putaways and picks are also stored in the quant.
n At the quant level, "available stock" means that the stock in question is available for a physical
movement in Warehouse Management (in other words, that this quant can be put away, picked, or
transferred).
n Goods receipt data is stored at the quant level.
(C) SAP AG LO140 4-15

Material Master
General Data
Plant-Specific Data
Warehouse Management Data
Purchasing Data
Sales and Distribution Data

...
Accounting Data
 SAP AG 1999
n The material master contains full information on all the materials that a company designs, purchases,
produces, stores, and sells.
n The material master is subdivided by area: basic data, sales and distribution data, purchasing data,
additional data for engineering/construction, accounting, costing, warehouse management, and so on.
n Basic data is relevant to all areas. It applies to all of the organizational units within a client.
n Sales and distribution data is relevant to SD, and applies to the sales organization and distribution
channel.
n Sales plant data is also relevant to SD, and applies to the delivery plant.
n Data is also defined for a range of other areas, and applies to the various organizational units used in
these areas.
n In a company, the material master is the central source where material-specific data can be accessed.
The material master is used by all of the components in SAP Logistics.
(C) SAP AG LO140 4-16

Views in a Material Master Record
Basic Data Purchasing

PC Material Master
t
MRP SD
A Stock in plant/ Work

B
storage loc. Scheduling
Quality
Accounting
Management
Storage Forecast
Warehouse
Classification
Management
 SAP AG 1999
n Since all material data is incorporated into a single database object, the problem of redundant data
does not arise. The data can be used by all areas (purchasing, inventory management, shipping,
warehouse management, MRP, invoice verification, and so on).
n Since different company departments process materials, and enter different types of material data,
the data in a material master record is organized according to user department. This means that each
user department has its own view of a material master record, and is responsible for maintaining the
data contained in this vie w.
n You define which views of the material master record are possible for each material type.
n You can also define which views of the material master records can be displayed/maintained by a
specific user. Each user can specify which views should appear when he or she maintains material
master records.
n The data in the individual views is assigned to specific organizational levels: plant, storage location,
sales organization, warehouse number or storage type. The material master views are created for
these specific organizational levels.
(C) SAP AG LO140 4-17

Material Type
Number assignment
Procurement type Raw

materials
User departments Control

Semi-
Semi-finished Trading
products goods
Field selection
Finished
... products
products
 SAP AG 1999
n Materials with similar characteristics can be assigned to the same material type. Examples of
material types include raw materials, semi-finished products, and finished products.
n The material type determines the following:
Ÿ Type of number assignment used (internal, external)
Ÿ Which number range intervals are allowed
Ÿ Which screens appear, and the sequence in which they appear
Ÿ Which department-specific data (views) appear for entering data
Ÿ Which procurement type is allowed for a material (in other words, if the material is produced in
house or externally, or if both these options are possible)
n In conjunction with the plant, the material type determines whether inventory management is
compulsory for a material (in other words, whether quantity changes are updated in the material
master record and value changes are updated in the balance sheet accounts in Financial Accounting).
n The material type also determines the accounts to which information is posted if a material enters the
warehouse or leaves the warehouse.
n A whole range of material types have already been defined in the standard SAP system. If you need
to define additional material types for your company, you can do so in Customizing.
(C) SAP AG LO140 4-18

Maintaining a Material Master Record:
Screen Sequence
Material
(Industry sector)
(Material type)
(Reference)
Views Organizational Data screen(s)

- Basic data levels
- Purchasing - Plant
- Warehouse mgt - Warehouse no.
- Accounting - ...
- ...
 SAP AG 1999
n When you edit material master data, you work through a range of screens.
You start out on the initial screen, and then process two dialog boxes, one after the other. In the first
of the these dialog boxes, you specify which views you want to edit. In the second, you specify the
appropriate organizational levels. Finally, the data screens themselves appear.
n The industry sector can be defaulted on a user-individual basis. Alternatively, you can specify that
the industry sector should not be displayed on the initial screen.
n You can also define user-specific defaults for the views and organizational levels. The Select Views
and Organizational levels dialog boxes can be removed from the standard screen sequence by
making the appropriate default settings in the material master.
(C) SAP AG LO140 4-19

Customer Master
Valid for all

Relevant to SD and
General Data Accounting
organizational
units
Relevant to Valid for:

Company Code Data Accounting Company code
Valid for:
Sales Area Data Sales organization /
Relevant to SD
Distribution channel /
Division
 SAP AG 1999
n In Accounting, a customer is considered to be a company partner with a customer account. For this
reason, customer master records are maintained both by Accounting and by Sales and Distribution.
n The customer master is subdivided into general data, sales area data, and company code data.
Ÿ General data is relevant to SD and to Accounting. It is stored centrally (client-specific) to prevent
data redundancy. It applies to all of the organizational units within a client.
Ÿ Sales area data is relevant to SD, and applies to the sales area (combination of sales organization,
distribution channel, and division).
Ÿ Company code data is relevant to Accounting, and applies to the company code in question.
n The customer master contains all the data required for processing orders, outbound deliveries,
invoices, and payments.
(C) SAP AG LO140 4-20

Vendor Master
Valid for all

Relevant to
General Data Purchasing
organizational
units
and Accounting
Relevant to Accounting Valid for:

Company Code Data Company code
Valid for:
Purchasing Purchasing
Relevant to
Organization Data Purchasing organization
 SAP AG 1999
n The vendor master contains all of the vendor information required. Vendor master records are
maintained both by Accounting and by Purchasing.
n The vendor master is subdivided into general data, sales area data, and company code data.
Ÿ General data is relevant to Purchasing and to Accounting. It is stored centrally (client-specific) to
prevent data redundancy. It applies to all of the organizational units within a client.
Ÿ Purchasing organization data is relevant to Purchasing, and applies to the purchasing organization
in question.
Ÿ Company code data is relevant to Accounting, and applies to the company code in question.
(C) SAP AG LO140 4-21

Unit Summary

l Name the organizational units and master data
used in Logistics Execution
l Explain the relationships between the following
organizational units: plant, storage location,
warehouse number, shipping point, and
transportation planning point
l Create, change, and display the following master
data: storage bin, material, customer, vendor
 SAP AG 1999
(C) SAP AG LO140 4-22

Solutions
Unit: Organizational Units and Master Data

Topic: Organizational Units
1-1 Organizational Units
1-1-1 A plant is a unit that allows you to look at a company from the point of view
of production, procurement, plant maintenance, and materials planning. A
plant can be a central delivery plant, a regional sales office, a production
site, the company’s headquarters, or even a central warehouse.
1-1-2 Stocks are summarized, and managed at the storage location level. It is not
possible to determine the stock stored in a specific storage bin at the storage
location level.
1-1-3 The warehouse number belongs to Warehouse Management.
1-1-4 Shipments are planned and controlled at the transportation planning point,
whereas deliveries are planned and controlled at the shipping point.
1-2 Relationships Between Organizational Units
1-2-1 Shipping points are assigned at the plant level.
1-2-2 Transportation planning points are assigned to a company code.
1-2-3 In LES, a physical warehouse structure is mapped using a warehouse

number, and individual storage types, storage sections, and storage bins.
1-2-4 If you want to use WM, the warehouse number must be assigned to a plant
(via a storage location).
Unit: Organizational Units and Master Data

Topic: Master Data
(C) SAP AG LO140 4-28

2-1 Creating a Storage Bin
Logistics → Logistics Execution → Master Data → Warehouse → Storage Bin
→ Create → Manually
2-1-1 Enter your warehouse number (###), storage type 005, and Box-## as the
name of your new storage bin.

Storage section 001
Maximum weight 2000
Putaway block X
Block reason 3 (New storage bin)
2-1-3 Logistics → Logistics Execution → Master Data → Warehouse →

Storage Bin → Display

Bins and Stock → Display → Empty Storage Bins
Enter your warehouse number (###), and storage type 002 (Shelf Storage).

Bins and Stock → Display → Bin Status Report
Enter your warehouse number (###), and storage type 004. Place your
cursor on the column entitled Duration (TiL), and press F1. This column
tells you how many days the quant has already been in this storage bin.

Bins and Stock → Display → Capacity Load Utilization
Enter your warehouse number (###).

Bins and Stock → Block → Storage Bin Selection
Enter your warehouse number (###), and storage type 005. Select storage
bin BOX-##, and click the Unblock icon. Select the Putaway block option,
and press Enter. Finally, click the Save icon in the standard toolbar.
(C) SAP AG LO140 4-29

3-1 Material Data
3-1-1 Logistics → Logistics Execution → Master Data → Material → Material

→ Create → Immediately
Enter material number LES04-##, and press Enter. In the Select View(s)
dialog box, select the views Warehouse Management 1 and Warehouse
Management 2, and then press Enter. In the Organizational Levels dialog
box, enter plant 1200, and warehouse number ###, and then press Enter.
On the Create Material screen, go to the Warehouse Management 1 tab
page, and enter REG in the Stock removal and Stock placement fields. On
the Warehouse Management 2 tab page, enter an LE quantity of 24 PC
(storage unit type E1).

→ Create → Immediately
Enter material number LES02-##, and press Enter. In the Select View(s)
dialog box, select the views Warehouse Management 1 and Warehouse
Management 2, and then press Enter. In the Organizational Levels dialog
box, enter plant 1200, warehouse number ###, storage type 005, and then
press Enter.
On the Create Material screen, go to the Warehouse Management 1 tab
page, and enter FIX in the Stock removal and Stock placement fields. On
the Warehouse Management 2 tab page, enter BOX-## in the Storage bin
field.
Save your changes.

→ Change → Immediately → Defaults → Organizational levels

Plant 1200
Warehouse number ###
Press Enter.
3-2 Customer Master Data
3-2-1 Logistics → Logistics Execution → Master Data → Partner → Customer

→ Change → Sales and Distribution
(C) SAP AG LO140 4-30

Customer T-S11B##
Sales organization 1000
Distribution channel 12
Division 00
Click the Sales areas data pushbutton, and then go to the Shipping tab page.
Enter the following data:

Shipping condition 50+## – ## Standard
Delivering plant 1200
Save your input.
3-2-2 Logistics → Logistics Execution → Master Data → Partner → Customer

→ Display → Sales and Distribution

Customer T-S11B##
Sales organization 1000
Distribution channel 12
Division 00
Click the Sales areas data pushbutton, and then go to the Partner functions
tab page. The customer has the following partner functions:
SP – Sold-to party T-S11B##
BP – Bill-to party T-S11B##
PY - Payer T-S11B##
SE – Sales employee 1205
SH – Ship-to party T-S11B##
4-1 Logistics → Logistics Execution → Master Data → Partner → Vendor →

Display

Vendor 1000
Company code 1000
(C) SAP AG LO140 4-31

Purch. organization 1000
Address Select this option
The address of customer C.E.B. Berlin is as follows:

Kolpingstr. 15
12001 Berlin, DE
(C) SAP AG LO140 4-32

Goods Receipts
Contents:
l Inbound process in Warehouse Management (using
transfer orders)
l Transfer order for putaway
l Inbound process involving inbound deliveries
 SAP AG 1999

Goods Receipts: Unit Objectives
At the conclusion of this unit, you will be able to:
l Name the various options available for working

through the inbound process in Logistics
Execution
l Explain how transfer orders for putaway are
structured, and how they are used
l Work through the inbound process (goods
receipt, putaway) in a warehouse managed in WM
 SAP AG 1999

Goods Receipts: Business Scenario
l In the IDES model company, when goods are

received, they are put away in a warehouse
managed in WM. As a member of the project team,
you familiarize yourself with the various options
that can be used for goods receipts in the Logistics
Execution System. In the model company, when
materials are received from vendors, this is
recorded in the form of goods receipts that
reference the corresponding purchase orders.
 SAP AG 1999

Goods Receipts and Transfer Requirements:
Topic Objectives
At the conclusion of this topic, you will be able to:
l Post goods receipt against a purchase order

l Name and work with the documents used in the
inbound process
 SAP AG 1999

The Inbound Process
Inventory Management Warehouse Management
Purchase Goods Quant in

in
order receipt GR area
Transfer Transfer
reqmt order
Source bin Destination bin

Quantity Palletization
Material Strategies
Confirm
Clear Difference
transfer
difference ?
order
Quant in
bin
 SAP AG 1999
n The inbound process for posting a goods receipt with reference to a purchase order and for putting
away the goods in WM begins in Inventory Management (IM).
n The goods receipt is entered in Inventory Management:
Ÿ A material document is created in IM
Ÿ An accounting document is created in IM
Ÿ A quant is created in the GR area in WM
Ÿ A transfer requirement is created in WM

GR for Purchase Order: Document Overview
Purchase
order
External vendor or Delivery of
other plant materials ordered
Purchasing/Inventory Management
WM System
Material
document
Transfer GR posting
requirement
Accounting
document(s)
 SAP AG 1999
n When the goods receipt is posted with reference to a purchase order, a material document in
generated in Inventory Management, and an accounting document is generated in External
Accounting.
n A transfer requirement is created in Warehouse Management.
n Goods Receipts: Real-Life Physical Process
When goods are received, they are usually transferred first to the goods receipt (GR) area. The
goods are not put away in the warehouse until a suitable storage bin has been determined for them.

Information in Transfer Requirement
GR Area GI Area
Tranfer requirement
What
?
How much
Palletization
When
Where from
Triggered by
Storage type
 SAP AG 1999
n A transfer requirement (TR) contains the following information:

Ÿ What is to be moved (material number, batch, stock category)?
Ÿ How much is to be moved (quantity)?
Ÿ How is it palletized (material document)?
Ÿ What was the trigger/cause (movement type / reference)?
Ÿ How much has already been moved (if partial quantity)?

Planning a Movement
GR Area Transfer requirement
Transfer order
High-Shelf
Storage
 SAP AG 1999
n A transfer requirement (TR) is created in order to plan a stock movement.

n The TR is a request that a specific quantity (quant) of a material should be brought into the
warehouse (putaway) or removed from the warehouse (stock removal, or picking).
n The TR provides information about anticipated stock movements.
n The TR is later converted into one or more transfer orders (TO).

Putaway Steps
Goods receipt
posting (TO
generated from TR)
Transfer
order
Pallet slip
Confirm
transfer Stock available
order
 SAP AG 1999
n When goods are delivered, the goods receipt is entered in Inventory Management. On the basis of the
goods receipt posting, a transfer requirement and a quant in the GR area are created.
n In order to put away the goods, a transfer order is created with a reference to the transfer
requirement. When the transfer order is created, the system determines the destination storage bin.
n The transfer order documents are used to physically put away the goods. The transfer quantity
remains unavailable in the warehouse until the putaway is confirmed in the system.
n As soon as the physical putaway has taken place, you confirm the transfer order and also enter any
differences that might arise.
n Depending on the system set-up, transfer orders can also be created automatically in the background.

Transfer Order for Putaway: Topic Objectives

l Describe the information contained in a transfer
order
l Create transfer orders for putaway, and list the
various options available for doing this
l Confirm transfer orders, thus completing the
physical putaway
 SAP AG 1999
(C) SAP AG LO140 5-10

Goods Receipt: Process Flow
Purchase Goods Quant in

order receipt GR area
TR TO
Source bin Destination bin

Quantity Palletization
Material Strategies
Clear Difference Confirm

difference ? TO
Quant in
bin
 SAP AG 1999
n A transfer order with a reference to the transfer requirement is created in WM. This document forms
the basis for carrying out the actual physical transfer in the warehouse.
n When you confirm the transfer order, this informs WM that the movement has been completed. Once
the transfer order has been confirmed, the goods are regarded as available. Any differences noted
during putaway are also entered at this time.
n These differences are posted to an interim record fore differences. Information on differences has to
be passed on to IM, where the differences are cleared.
n There are a range of options for automating this process at various points.
(C) SAP AG LO140 5-11

Transfer Order for Transfer Requirement
Transfer order
GR area
Header
Transfer
requirement
Item 1
Item 1
Source
Item 2 Dest.
Item 2
Source
Dest.
Item 3
 SAP AG 1999
n Before the goods can be actually put away, the transfer requirement has to be converted into a
transfer order. If the quantity of a transfer requirement item is distributed among several storage bins
(for example, one storage bin per pallet), several transfer order items will be created for this transfer
requirement item. A transfer order is an instruction to move materials from a source storage bin to a
destination storage bin within a warehouse number.
n Transfer orders contain the following information:
Ÿ Material (quant ID), quantity to be moved, source storage bin, destination storage bin and return
storage bin
n The information that the transfer order needs comes from several sources:
Ÿ The material master record, WM movement type, strategies for determining the source or
destination storage bin, user input, and source documents such as transfer requirements and
deliveries
(C) SAP AG LO140 5-12

Procedure for Creating TOs in the SAP System
TR Transfer requirements list
TR items
Overview of TR items
Preparation screen
Details of TO item
 SAP AG 1999
n The transfer requirements list contains all transfer requirements that match the selection criteria
specified. In this list, you can select a transfer requirement, process it and create the transfer order in
the background.
n The overview of transfer requirement items contains all the items in the selected transfer
requirement. It is possible to select one or several items in the list and process them either in the
foreground or in the background.
n On the preparation screen, the quantity of a specific transfer requirement item is distributed to
different storage bins (where appropriate, palletization instructions are proposed by the system).
n The detail screen of a transfer order item contains a source item, a destination item, and sometimes
also a return item.
(C) SAP AG LO140 5-13

Palletization Instructions
Preparation
Screen
Transfer
Requirement Transfer Order
Item 1 200 pc Item 1 50 pc

Item 2 50 pc
Item 3 50 pc
Item 4 50 pc
Mat.master
50 pc on
E1 pallet
 SAP AG 1999
n The preparation screen is used to distribute the transfer requirement quantity among the various
pallets (storage bins).
n Any palletization data contained in the transfer requirement is proposed on the preparation screen.
n If any default palletization data has been defined in the material master record, the system proposes
that the quantity should be distributed in accordance with these storage unit types (SUT).
n You can change the proposed palletization data, or specify manually how the goods should be
palletized.
(C) SAP AG LO140 5-14

Printing a Transfer Order
Transfer Order Pick List

Item 1
Item 1 Mat 1 from – to
Item 2
Item 2 Mat 2 from – to
Item 3
Item 3 .
. .
. .
.
Single slip Collective slip
 SAP AG 1999
n Generally speaking, transfer order are printed out as soon as the are created, or they are passed on via
radio frequency to mobile data entry devices (MDE).
n You can print out transfer orders in different ways:
Ÿ As a single slip (one item per page)
Ÿ As a collective slip (several items per page)
Ÿ As a pick list (several transfer orders with different sort options per page)
n You can also print out bar codes (optional).
n You can also print out labels for each transfer order.
(C) SAP AG LO140 5-15

Transfer Order Confirmation
GR area
Confirm Transfer Order
4
Warehouse no. 6/25 14:36 h
TO 1895
Active work... Inactive.. Conf.
Item Material Dest.st.type Dest.bin Difference quantity
10 T - BW 001 11 - 05 - 05
20 T - BW 001 13 - 04 - 06
4 4
30 T - MS 005 01 - 17
 SAP AG 1999
n When you confirm a transfer order or a transfer order item, you are in effect verifying that the
required quantity of material has actually been transferred from one location to another and that the
processing of the transfer order or item has been completed.
n The TO Confirmation function provides three different confirmation options:
Ÿ Standard
1st screen - confirm that actual quantities are equal to target quantities
2nd screen - enter any differences that have arisen (1 screen per item)
Ÿ Input list
A screen for confirming quantities and entering any differences
Ÿ TO confirmation can be carried out directly in the warehouse using a PDC (portable data capture)
device.
n You can make settings in Customizing to specify whether or not transfer orders should be confirmed
automatically.
(C) SAP AG LO140 5-16

Handling Differences
GR posting
GR Area
50 pc
TO Item
FROM GR Target 50 pc
TO Shelf
Confirmation Target 50 pc
Actual 40 pc
Difference 10 pc
40 pc
Difference Difference posting
10 pc Inventory Management
 SAP AG 1999
n If a difference is detected during a stock transfer, you can enter this into the system when you
confirm the transfer order.
n The quantity that makes up the difference is automatically posted to an interim record for
differences.
n In a second step, the differences are cleared in Inventory Management either manually or using batch
input.
n When differences are processed in the system, the quantity of stock in the Inventory Management
and Warehouse Management systems remains the same.
(C) SAP AG LO140 5-17

Putting Away Goods Received: Topic Objectives
l Describe the options available for putting away

incoming materials before the goods receipt is
posted
l Explain how inbound deliveries are used for
putaway
l Discuss the pros and cons of the various
methods available for processing goods receipts
 SAP AG 1999
(C) SAP AG LO140 5-18

Goods Receipt with Inbound Deliveries:
Process Flow
Negative
Purchase
quant in
order Inbound GR area
delivery
TO
Dest. bin
Palletization
Strategies
Clear
difference Difference
?
Adjustment? Confirm
TO
Goods
receipt Quant in
bin
 SAP AG 1999
n If you wish, you can put away goods in Warehouse Management before you actually post the goods
receipt. To do this, you create an inbound delivery for a purchase order. The WM system uses this
inbound delivery as a kind of 'to-do' list for putaway.
n A transfer order is created for the inbound delivery. This transfer order controls the actual physical
putaway. The quantity to be put away is stored as a negative quant in the goods receipt area. In
effect, this quantity is not yet regarded as available stock.
n Once the putaway has been confirmed, the goods receipt is posted. Any differences that occur can be
entered in the system at this point. The quantity is now regarded as available stock.
(C) SAP AG LO140 5-19

Inbound Delivery
Outbound Outbound
delivery delivery
Inbound Inbound
delivery delivery
Outbound Outbound
delivery delivery
Inbound Inbound
delivery delivery
Outbound Outbound
delivery delivery
Inbound Outbound
Warehouse
shipment shipment
 SAP AG 1999
n In the system, an inbound delivery represents the materials that are delivered and received at a goods
receiving point. An inbound delivery is a document that is structured in the same way as an outbound
delivery for a goods issue.
n An inbound delivery is a request that goods should be put away in a warehouse. A transfer order for
putaway can be generated from an inbound delivery.
(C) SAP AG LO140 5-20

Ways of Creating an Outbound Delivery
Collective
processing
Purchase
order EDI
Inbound
delivery
Manually
Easy Web
Transaction
 SAP AG 1999
n In the LE System, there are different ways in which you can create an inbound delivery:
Ÿ Using EDI communication - where a shipping notification is transmitted from the vendor. In this
case, the system generates an inbound delivery automatically.
Ÿ The inbound delivery is created manually with reference to a purchase order.
Ÿ The inbound deliveries are created with the help of a worklist (if they are not created via EDI or
manually).
Ÿ The inbound delivery is created by the vendor in the SAP system (via the Internet)
n If you wish to generate inbound deliveries with a worklist, the purchase order confirmation must be
set up in Purchasing in such a way that inbound deliveries can be created automatically.
n Inbound deliveries should be created as early as possible in order to generate a worklist. Like transfer
requirements, they do not block either storage bins or materials.
(C) SAP AG LO140 5-21

Information in Inbound Delivery
Inbound delivery #180005614
Inbound delivery Vendor
What
How much
When ? Items Putaway Transport Status overview
Where from
Vendor 10 Material1 Plant Storage location ...
Status
20 Material2 Plant Storage location ...
 SAP AG 1999
n The inbound delivery contains information derived from the purchase order. This information is the
same as the information contained in the trasnfer requirement:
Ÿ What is to be moved (quant information)?
Ÿ How much is to be moved (quantity)?
Ÿ What was the trigger/cause (movement type / reference)?
Ÿ How much has already been moved (if partial quantity)?
n The following statuses are kept up to date in an inbound delivery:
Ÿ Putaway status
Ÿ Storage status
Ÿ Goods movement status
(C) SAP AG LO140 5-22

Goods Receipts: Unit Summary

l Name the various options available for working
through the inbound process in Logistics
Execution
l Work through the inbound process (goods
receipt, putaway) in a warehouse managed in WM
 SAP AG 1999
(C) SAP AG LO140 5-23

Solutions
Unit: Goods Receipts

Topic: Goods Receipts and Transfer Requirements
1-1 Displaying stock information in WM and Inventory Management

Logistics → Logistics Execution → Internal Warehouse Processes → Bins and
Stock → Display
1-1-1 To display the Inventory Management stock overview, choose Total Stock
per Material (Inventory Management). To display the WM stock overview,
choose Total Stock per Material (Warehouse Management).
Stock in Inventory Management overview: 0 pieces
Stock in Warehouse Management overview: 0 pieces
The stocks of the material do not yet exist in the goods receipt area.
1-2 Posting of goods receipt

Logistics → Logistics Execution → Inbound Process → Goods Receipt for
Purchase Order, Order, Other Transactions → Enter Goods Receipt for Purchase
Order
1-2-1 Press F4 for help, and select matchcode M: Purchasing documents for
material. Enter plant 1200 and material LES04-## as search criteria. Press
Enter.
Purchase order number: varies
1-2-2 Select the line containing the purchase order item for material LES04-##.
The system display details of the line item in question. On the Quantity tab
page, you will see the quantity that was ordered – you can change the
quantity to 72 pieces.
1-2-3 Choose the Where tab page. The goods receipt is posted for storage location
0###.
1-2-4 You will also find the movement type that was used to post the goods
receipt on the Where tab page. This is movement type 101.
1-2-5 Select OK for the purchase order item, and choose Post.
Material document number: varies (number assigned internally)
(C) SAP AG LO140 5-30

1-3 Displaying stock information in WM and Inventory Management
Stock → Display
1-3-1 To display the Inventory Management stock overview, choose Total Stock
per Material (Inventory Management).
Inventory Management:
_____________________________________________
1-3-2 Stock in Warehouse Management overview: Choose Total Stock per

Material (Warehouse Management).
Storage type: 902
To display the storage bin, place your cursor on the line containing Plant
1200, and choose Bin stock.
Storage bin: Number of your purchase order
To view the goods receipt date, click on the available quantity – this
displays the quant.
Goods receipt date: today
1-4 Displaying a transfer requirement

Purchase Order, Order, Other Transactions → Putaway → Create Transfer
Order → By Material
1-4-1 Enter material number LES04-##, and press Enter. On the screen entitled
List of Transfer Requirements for Material, you can see all open transfer
requirements for material LES04-##. To display a transfer requirement,
click the transfer requirement number in question.
Transfer requirement number: varies
Requirement type: B – Purchase order
Requirement tracking number: Number of your purchase order
Source storage type: 902 – GR Area External Receipts
Source storage bin: Number of your purchase order
Movement type: 101 – Goods Receipt for Purchase Order
Open quantity: 72 pieces
1-4-2 To display the transfer order quantity, choose Processing status.

Transfer order quantity: 0 pieces
(C) SAP AG LO140 5-31

Unit: Goods Receipts
Topic: Transfer Order for Putaway
2-1 Putaway
Purchase Order, Order, Other Transactions → Putaway → Create Transfer
Order → By Material
2-1-1 In the list of transfer requirements, choose TO in foreground to create a

transfer order.
2-1-2 The system proposes palletization (3 pallets, each with 24 pieces). This
information is derived from the material master record in the Warehouse
Management 2 view.
2-1-3 To put away the items individually, choose Putaway foreground, and then
choose Post.
2-1-4 Logistics → Logistics Execution → Inbound Process → Goods Receipt for

Purchase Order, Order, Other Transactions → Putaway →Display
Transfer Order → Single Document
Enter the number of your transfer order, and press Enter. You have not yet
confirmed the putaway.

Management)
72 pieces are to be put away into shelf storage. Click Bin stock. The stock is
not yet available.
(C) SAP AG LO140 5-32

2-2 Confirmation/differences
Purchase Order, Order, Other Transactions → Putaway → Confirm Transfer
Order
2-2-1 Single Document → In One Step

Enter the number of your transfer order, and press Enter. Decrease the
quantity of the third item to 22 pieces. Save the confirmation, and confirm
the difference in the dialog box.

Management)
Enter material number LES04-##, and press Enter.
Storage type Quantity
002 – Shelf Storage 70 pieces
999 - Differences 2 pieces
To display the stock in Inventory Management, click MM stock.
Stock in Inventory Management: 72 pieces
2-2-3 Logistics Execution → Internal Warehouse Processes → Physical

Inventory→ In Warehouse Management → Clear Differences →
Inventory Management
Enter your warehouse number (###), and storage type 999. Choose Execute.
On the screen entitled Clear Difference in Inventory Management,
choose Clear.

Management)
Enter material number LES04-##, and press Enter.
Storage type Quantity
002 – Shelf Storage 70 pieces

To display the stock in Inventory Management, click MM stock.
Stock in Inventory Management: 70 pieces
(C) SAP AG LO140 5-33

Goods Issues
Contents:
l Outbound Deliveries
l Transfer Order for Outbound Delivery
l Picking
l Radio Frequency Connection
l Packing
l Goods Issues
 SAP AG 1999

Goods Issues: Unit Objectives
l Describe and work through the outbound process

for outbound deliveries
l Use the various options available for optimizing
the outbound delivery process (rough workload
estimate, picking waves, two-step picking, direct
connection to radio frequency terminals)
 SAP AG 1999

Goods Issues: Business Scenario
l In the IDES model company, goods are issued to

customers using outbound deliveries. The goods
are picked in a warehouse managed in WM. When
you plan and perform picking, you explore the
various options available for optimizing the
outbound process. As a member of the project
team, you want to find out how the process flows
can be mapped in Logistics Execution.
 SAP AG 1999

Outbound Deliveries: Topic Objectives
l Describe how outbound delivery documents are

structured and how they are used
l Create a Sales Order and work through the various
options available for creating deliveries
l Describe the information contained in outbound
deliveries, and specify where this information
comes from
l Use the delivery monitor for creating deliveries as
part of the outbound process
 SAP AG 1999

The Shipping Process
6 7
3 4 5
1 2
9 12 13 14
10 11
8 19 20 21
17 18
15 16 26 27 28
23 24 25
22
29 30 31
Sales order
Shipping
point
Functions relevant to shipping:

• Determine shipping point • Monitor shipping due
• Determine route dates
• Scheduling • Create delivery
Warehouse
..........................
..........................
..........................
..........................
..........................
..........................
..........................
..........................
. . . ..........................
. ...
.... ...
.... ...
.... . . . .. . . ...
.... ...
• Goods issue • Shipping docs • Packing • Picking
 SAP AG 1999
n SAP LE functions available for shipping processing include:

Ÿ Monitoring of shipping due dates in reference documents (e.g. sales orders and purchase orders)
Ÿ Creating and editing outbound deliveries
Ÿ Monitoring availability
Ÿ Monitoring capacity in the warehouse
Ÿ Picking (with a connection to Warehouse Management)
Ÿ Packing the outbound delivery
Ÿ Printing out and passing on shipping documents
Ÿ Processing the goods issue
Ÿ Controlling using overviews of
- The outbound deliveries currently being processed
- The activities still to be carried out
- Potential bottlenecks
n The outbound deliveries for which goods issues are posted in the shipping department can be used to
create a worklist for billing (billing due list).

Structure of an Outbound Delivery
Header:
e.g. ship-to party,
shipping point, route
Change Outbound Delivery 80004893: Overview
Overview
Header details:
Outbnd delivery: 80004893
Ship-to party: 2145
Item overview Picking Loading TransportationStatus overview
All items
10 1400-100 Headlights 5 PC TAN

Items:
Items:
e.g. material, quantity
Item details:
 SAP AG 1999
n A delivery document comprises a header and any number of items.

n The header contains data that applies to the entire document. This means, for example, that the ship-
to party, shipping point, and route are unique for each outbound delivery.
n The individual items contain above all information on the material to be delivered.
n The information in the delivery document is displayed on a range of different screens:
The overview screen contains header and item information, grouped thematically on several tab
pages. This means that important data can be viewed on a single screen.
n A further screen is available for displaying further header and item details. This data is also grouped
together thematically onto tab pages.
Ÿ Header details include data sorted into the following groups: processing, picking, loading,
transportation, foreign trade/customs, texts, partners, output, package tracking, conditions, etc.
Ÿ The item detail screen also contains similar tab pages with item-specific information.

Updating Orders
Order
Order Outbound delivery
K1 K1
10 M1 100PC 10 M1 100PC
20 M2 50PC 20 M2 30PC
Delivery status
K1
10 Fully delivered
20 Partially delivered
 SAP AG 1999
n When the outbound delivery is created, the order in question is given a delivery status (at the header
and item level). This status denotes the progress of the outbound delivery in the shipping process.
n The progress made in the shipping activity is displayed in the outbound delivery by means of
statuses.

Document Flow
Order Outbound Transfer

Transfer
delivery order
order
...
Document flow
Document Date Overall processing status
. Order 5373 06/05 Completed
Delivery 80003752 06/09 Being processed
. WM transfer order 2651 06/09 Completed
. WL Outbound delivery 49007029 06/10 Completed
 SAP AG 1999
n Since documents are interlinked in SD sales and distribution processing, it is possible to find the
order that gave rise to a particular outbound delivery (or to find subsequent documents such as the
WM transfer order, goods issue document, and billing document).
n It is possible to display these documents from the document flow.
n The document flow and the statuses displayed here allow you to monitor the progress made in
processing an activity.
n You can display the document flow at the header level, for one or for all items in the document in
question.
n Note: The overall processing status of the outbound delivery is "Being processed" until the billing
document has been generated. This applies even if picking has been completed, and the goods issue
has already been posted.

Ways of Creating an Outbound Delivery
Order Delivery
l Collective processing of orders and order items due for

shipping using different selection options
l Create outbound delivery manually
 SAP AG 1999
n Delivery scenarios are a way of mapping the various business processes involved in a delivery.
Every user can configure a delivery scenario that is tailored to his/her personal requirements.
Additional criteria are available for selecting documents for delivery. These include the material,
partner, document type, shipping condition, and so on.
n You can also create the outbound delivery manually.

Outbound Delivery Monitor
Perform and monitor

outbound delivery activities
Outbound delivery list
Picking Goods issue
Loading
Confirmation
Transportation planning
 SAP AG 1999
n The Delivery Monitor allows you to display and edit open and completed deliveries. You can use it
to process both inbound and outbound deliveries. Since many functions work in the same way for
both types of delivery, the generic term delivery is mostly used when describing these functions.
(C) SAP AG LO140 6-10

Scheduling
Actions Pick delivery

Requested delivery date
Pack Load
Plan Process
transportation transportation
SAP System
Process transfer order
Sales Create
Process delivery
order
order delivery
Goods
issue
Process shipment document
 SAP AG 1999 Time
n When the goods issue activities are scheduled, the various activities required for shipping processing
are taken into account. These activities include picking in Warehouse Management (i.e. making the
material available for the goods issue), packing and loading the delivery, as well as planning and
processing the shipment/transportation of the delivery.
n In LES, these activities are distributed among Warehouse Management (picking), Shipping (creating
and editing the delivery), and Transportation (editing the shipment document). These internal
processes are completed by posting the goods issue - before the goods are delivered by the requested
delivery date.
(C) SAP AG LO140 6-11

Backward Scheduling

SAP System
Material Transportation
Order date availability Loading date Goods issue
planning
date date
date
Sales Transit time

order
order
Loading time
Pick/pack time
The earlier date is the

creation date used for the
Lead time delivery.
 SAP AG 1999 Time
n The material availability date is determined by delivery scheduling. Enough of the material must be
available on this date if the customer is to receive the delivery on time.
n The material availability date is determined by the system (by taking the delivery date requested by
the customer and scheduling backward).
n The system also takes into account the amount of time required to pick, pack, load, and ship the
goods.
(C) SAP AG LO140 6-12

Forward Scheduling

SAP System Confirmed
delivery date
New material Transportation
Order date availability Loading date Goods issue
planning
date date
date
Sales Transit time

order
order
Loading time
Pick/pack time
The
The confirmed
confirmed delivery
delivery date
is
is determined using forward
determined using forward
scheduling
scheduling based
based onon the
the
Lead time new
new material
material availability
availability
date.
date.
 SAP AG 1999 Tim

e
n If the material is not available on the material availability date, the system tries to find a date on
which the material is available. This date is the new material availability date.
n The system uses this new material availability date as the basis for re-scheduling (in order to
determine a new delivery date).
(C) SAP AG LO140 6-13

Determining the Shipping Point
Shipping Shipping point Other possible

Loading group Plant
conditions (default value) shipping points
5 6 7
2 3 4 4 5 6 7
1 12 13 14 1 2 3 13 14
9 01 11 11 12
8 19 20 21 8 9 10 20 21
16 17 18 1 19
8
15 26 72 28 15 16 17 28
2 24 25
3 25 26 27
22 2
22 23 4
30 31
29 29 03 31
Express 1000
Express Rail
shipping l
shipping
point point
7
4 5 6
1 2 3 1
13 4
11 12
8 9 10 2 1
0 2
1 19
8
15 16 17 28
25 62 27
22 23 24
29 03 31
Standard 1400
Truck
shipping
point
Sold-to Order
Material
party item
 SAP AG 1999
n The shipping point responsible for the goods issue is determined on the basis of the following
combination: shipping condition, loading group, and plant. This information can be derived from
the following sources:
Ÿ The shipping conditions are stored in the shipping view of the customer master record.
Ÿ The loading group is stored in the "Sales/Plant Data" view of the material master record.
Ÿ The plant is stored in the sales order.
(C) SAP AG LO140 6-14

Transfer Order for Outbound Delivery: Topic
Objectives
l Describe the structure and content of a transfer

order for an outbound delivery
l Describe the various options available for
creating transfer orders for outbound deliveries
l Create transfer orders for outbound deliveries,
and use these documents for picking
 SAP AG 1999
(C) SAP AG LO140 6-15

Steps in the Outbound Process
Create TO for
outbound
delivery
Transfer order
Confirm Post
transfer goods issue
order
 SAP AG 1999
n In order to pick a material, an outbound delivery is created.

n To pick the goods, a transfer order is created with a reference to this outbound delivery. When the
transfer order is created, the system determines the source storage bin.
n The goods are physically removed from the warehouse with the help of the transfer order documents.
n As soon as the physical stock removal is completed, the user confirms the transfer order. Here it is
possible to enter differences straight away.
n Once the transfer order has been confirmed, the goods issue is posted. You can work through this
step when you are confirming the TO.
n Depending on your system setup, you can specify that the system should create transfer orders
automatically in the background.
(C) SAP AG LO140 6-16

Transfer Order for Outbound Delivery
Transfer order
Delivery
Src - Dest
Src - Dest
Item 1
Src - Dest
Item 2
Src - Dest
Item 3
Src - Dest
Src - Dest
GI area
 SAP AG 1999
n A transfer order is created for the outbound delivery so that the corresponding materials can be
picked. It is possible that several TO items might result from a single outbound delivery item. The
appropriate source storage bins are determined in the transfer order. The destination storage bins are
located in the goods issue area (GI area).
n You can enter default values for the selection of storage bins, leave it to the system to search in
accordance with the strategies defined in Customizing, or change these proposals manually.
(C) SAP AG LO140 6-17

Lean WM - Using a TO as a Pick Order
Transfer Warehouse number 010

Delivery order (Lean WM)
Fixed bin 01
Fixed bin 02
Fixed bin 03
Fixed bin 04
Output options
Individual TOs: Groups: Send IDocs to

subsystems
• Individual printout • Individual printout
• Multiple printout • Multiple printout
• Pick list
 SAP AG 1999
n Lean WM functionality makes it possible to create transfer orders for deliveries even if storage bins
are not managed in the WM component.
n Transfer orders that are created for deliveries in Lean WM are used to pick stock from available
fixed bins in the warehouse that are managed entirely at the storage location level.
n The characteristics of a transfer order created for Lean WM are basically the same as for any transfer
order:
Ÿ You can specify whether or not the transfer orders created for Lean WM are subject to
confirmation.
Ÿ You can confirm overdeliveries, shortages and batches.
Ÿ You can print out the transfer orders using WM functionality.
Ÿ You can transmit Lean WM transfer order data to external systems.
Ÿ You can enter performance data (such as assignment to a picker, confirmation of actual times, or
determination of target times) for this type of transfer order.
(C) SAP AG LO140 6-18

Connection Between Shipping and WM
Create
outbound
delivery
Lean WM Picking WM
storage loc.?
Create TO Create TO
TO printout TO
TO printout
printout
IDoc IDoc
Pick
Pick from fixed bin
Confirm TO No
No Differences Yes Copy TO data

to delivery?
?
Yes
Yes
Post
GI
 SAP AG 1999
n WM and Shipping are linked to each other via the picking location.
n If the picking location is managed in WM, the outbound deliveries are also picked in WM. When the
transfer order is processed, the storage bins from which the materials are to be picked are
determined. Picking is carried out on the basis of the information in the TO. The picking process
ends with confirmation (and the option of entering differences).
n If the picking location is managed using Lean WM, the source bin is determined on the basis of the
fixed bin of the material (and not on the basis of a strategy).
n The process is completed by posting the goods issue.
(C) SAP AG LO140 6-19

Ways of Creating TOs for Deliveries
Delivery Transfer order
l Create transfer order manually

l Create transfer order from Delivery Monitor
l Create transfer order automatically/directly
l Collective processing for a group of deliveries
l Create transfer order as a subsequent function for the delivery
 SAP AG 1999
n There are different ways of creating TOs for an outbound delivery:

Ÿ Manually using the "Transfer Order for Outbound Delivery" transaction.
Ÿ In the Outbound Delivery Monitor, by selecting all outbound deliveries due for picking, and
creating TOs for these.
Ÿ Create TO directly/automatically upon creation of the outbound delivery.
Ÿ Multiple processing for several deliveries.
Ÿ TO as a subsequent function of the outbound delivery.
(C) SAP AG LO140 6-20

Creating Groups in the Outbound Delivery Monitor
Print without
group
Outbound Delivery Monitor: Transfer

Create transfer orders Transfer
order
Select and assign order
individually Transfer
to group order for DL 4711
Transfer
for DL 4725
DL 4711 order
for DL 4720
DL 4720 for DL 4813

DL 4725
DL 4813
Release/
print with group
Collective processing:
Create transfer orders Pick list
Group #23 for group Group #23
LSR interface
IDoc
Release Group #23
 SAP AG 1999
n You can group together outbound deliveries. This group of outbound deliveries can then be
processed further as a single entity. You can use a range of criteria to select the deliveries in the
Outbound Delivery Monitor, and then group these deliveries together into a single group.
n The TOs in a group can be printed out individually, or printed out together as a group in a pick list. If
you use the group printout option, various options are available for sorting the individual items.
n When you release a group, this triggers printout or transmission of IDocs to subsystems.
(C) SAP AG LO140 6-21

Ways of Creating TOs: WMTA
Create TO
automatically
Job RLAUTA20
Delivery Batch
program
Delivery type Transaction

Transaction:
LF
Shipping pt. 1200 Output Output from
Shipping condition Shipping
deliveries
Immediately condition
Immediately WMTA
Create TO
directly
Immediately
Process directly
upon creation
of delivery
 SAP AG 1999
n At the interface from SD Shipping to WM, you can specify whether transfer orders should be created
directly or automatically for deliveries. Processing is controlled by the output control function of the
shipping module. Using the condition technique, you can trigger output type WMTA when the
delivery is created. In this case, at least one item of the delivery must be relevant to WM. The
"Shipping point / Delivery type" combination is responsible for determining the output type.
n Depending on how output type "WMTA" is set up, there are a range of different types of processing:
Ÿ The output is processed either using a batch program, or manually using the "Output for Delivery"
transaction. Since this processing type is executed separately from the delivery creation process,
we refer to this as Automatic Transfer Order Creation.
Ÿ If TOs are created directly, output processing is triggered immediately after the delivery has been
created. Therefore, this is referred to as Direct (Immediate) Transfer Order Creation.
(C) SAP AG LO140 6-22

Picking: Topic Objectives
l Name the options available for optimizing the

picking process
l Use the rough workload estimate to forecast the
workload in the warehouse
l Use picking waves to group together tasks in the
warehouse
l Use two-step picking to optimize the picking
process
 SAP AG 1999
(C) SAP AG LO140 6-23

Rough Workload Estimate: Objectives
Resources Processes
l Human resources l Goods receipt

l Pallets l Picking and goods issue
l Forklifts l Returns to vendor
l ... l Returns from customer
 SAP AG 1999
n The rough workload estimate is a tool that enables you to forecast the expected workload in a
warehouse. The future workload involved in warehouse processes such as goods receipts for
purchase orders, goods issues for deliveries, and returns from customers or to vendors, is estimated.
You can use the information in the rough workload estimate to plan the resources you will require.
n Business processes are regarded as requirements for the rough workload. You can define operations
and assign them to the business processes to refine your analyses.
(C) SAP AG LO140 6-24

Rough Workload Estimate: Key Figures
l Weight
l Volume
l Quantity (quantity unit group)
l Number of document items
l Time for workload
l Shipping materials
 SAP AG 1999
n Key figures are summarized and displayed for the individual days on which the workload is due,
warehouse numbers, etc.
n The standard key figures for analysis in the RWE include weight, volume, quantity, and number of
document items. These key figures are available immediately, without additional customizing.
n With additional customizing, it is possible to include time as a factor in your analyses. You can
assign standard times to business process and operations - this means that the analysis is calculated
in a unit of time.
(C) SAP AG LO140 6-25

Picking Waves
Warehouse Number 001
Wave 200002301 Wave 200002302

May 25 0900 h May 25 1600 h
Company Company Company Company Company Company
Company Company Company Company Company Company
Del 1 M
Invoice
Invoice Del 2
Invoice
Invoice
M Del 3 M
Invoice
Invoice Del 4 M
M
Invoice
Invoice Del 5 M
M
Invoice
Invoice Del 6 M
M
Invoice
Invoice
TO 1 TO 4 TO 7 TO 10 TO 13 TO 16
TO 2 TO 5 TO 8 TO 11 TO 14 TO 17
TO 3 TO 6 TO 9 TO 12 TO 15 TO 18
 SAP AG 1999
n Picking waves are groups of deliveries that have been grouped together using time-based criteria.
These time-based criteria refer to activities in the warehouse. A picking wave corresponds to one
group, and is processed accordingly in the warehouse.
n You can create picking waves for transfers.
n You can create transfer orders, print out pick documents/connect up external systems, confirm
transfer orders, print out deliveries, print out loading lists, trigger transfer activities, post goods
issues, and trigger billing - all with reference to a picking wave.
(C) SAP AG LO140 6-26

Two-Step Picking
Material-based Delivery-based
picking allocation
Step 1: Picking Step 2: Allocation
Group Pick TO for one

group TO #250
DEL 4813
Mat.01 3 pc
Mat.01 3 pc Mat.02 4 pc
Mat.02 4 pc Item 1 Mat.01 10 pc TO #251
FROM: 200 Mat.01 4 pc
DEL 4814 From 001
TO: 916 Mat.02 5 pc
Mat.01 4 pc To 200
Mat.02 5 pc FROM: 200 TO #252
TO: 916
DEL 4815 Item 2 Mat.02 10 pc Mat.01 3 pc
Mat.01 3 pc Mat.02 1 pc
Mat.02 1 pc
From 001
FROM: 200
To 200
TO: 916
 SAP AG 1999
n In 2-step picking, the removal of the material is optimized with regard to quantity. The quantities
required are grouped together, totaled up, and picked as an "overall quantity" (pick step). The group
can consist of deliveries or transfer requirements. The destination storage type is an interim storage
type.
n In a second step, the quantities are allocated to the individual requirements (allocation). This step is a
multiple processing step, and can also include materials picked using 1-step picking (direct picking).
n In the standard system, the material in question determines whether 2-step picking is used.
(C) SAP AG LO140 6-27

Radio Frequency (RF) Connection: Topic
Objectives
l Explain how radio-frequency terminals in a

warehouse are linked up directly to an SAP
System for paper-free communication
l Explain how queues are used for processing
transfer orders, and describe processor
assignment
l Use the RF Monitor to monitor the RF activities in
a warehouse
 SAP AG 1999
(C) SAP AG LO140 6-28

Advantages of RF Connections
l Fast, reliable, accurate processing of individual goods

movements
l Simple, easy-to-understand control mechanism for

warehouse staff
l Paper-free communications using

portable data capture devices
l Low costs
l Improved quality resulting from

fewer errors
 SAP AG 1999
n The radio frequency (RF) solution is new in the Enjoy release. The IDoc interface will continue to be
supported. Both solutions set out to achieve different goals. The pros and cons of each are detailed in
the table below:
MOB / LSR Direct Radio Frequency Connection

------------------------------------------------------------------------------------------------------------
Can also be used offline Online solution
Individual program interface Standard solution with growing functionality
Requires third-party software New ABAP transactions easy to create
For complex automated warehouses Cheaper
Very secure, asynchronous data transfer Plug-and-play solution
(C) SAP AG LO140 6-29

Radio Frequency Activities
Select an RF activity by clicking Following RF activity appears

pushbutton/pressing function key on the next screen
SAP R/3
SAP R/3
F8 - Exit F2 - Reset F3 - Back F4 - Cont

1. Putaways
1. Select by TO
2. Stock removals
2. For delivery
3. Inventory
3. Managed
4. Query
5. Loading control
6. Queue
 SAP AG 1999
n Putaway process
A warehouse employee scans in the storage unit or transfer order; a destination storage bin is assigned on the
basis of this information. If the materials are to be put away in this bin, the storage bin can be verified. This
completes the putaway process.
n Picking process (stock removal process)
A warehouse employee receives the next transfer order on his/her RF terminal; this contains the information on
where the next material is to be picked. The material number of EAN can be verified (by scanning it in) at the
storage bin in question. The material is then transferred to the GI area.
n Loading control
It is possible to control packing and unpacking using RF terminals. This can be done using various selection
criteria (such as loading for a shipment or outbound delivery on the basis of identifiable shipping elements).
n Inventory
The inventory can be performed for storage bins or for storage units. Users can select a specific bin to be
inventoried, or they are assigned to an inventory document. Users can then work in the system.
n Stock information
It is possible to display information on bin stocks. Information can be selected on the basis of storage bin,
goods receipt date or shelf life exp iration date.
n Queue
When TOs are created, they are assigned to different queues, and represent a specific workload for the queue in
question. It is possible to change the assignment of users to queues - this allows you to react quickly and
flexible to changes.
(C) SAP AG LO140 6-30

Picking Using RF: Scanning Bins
SAP R/3
Source information
Source bin 008 01- 05 - 18
Material information
T-BW01-00 50 pc
 SAP AG 1999
n Users have to verify specific pieces of information when they confirm transfer orders. They might,
for example, have to verify the destination storage bin, or the actual quantity transferred. The ID of
the bin that is scanned in is compared with the information contained in the transfer order.
n This verification can be defined individually for source screen and destination screens. The fields
that can be verified are as follows:
Ÿ Storage bins
The bin verification data scanned in is compared with the verification field in the storage bin data.
This verification field can contain the name of the storage bin in question, or some other ID. You
can use a special transaction to enter data in this field.
Ÿ Storage unit number
Ÿ Material number
The material number can be the SAP material number, the old material number from the material
master, or the EAN.
Ÿ Quantity
(C) SAP AG LO140 6-31

RF Queue Management
Goods receipt Goods receipt queue:
TO TO #45
TO #46
#45 TO #46
High rack storage

Fixed bin
storage
TO
#47
Goods issue queue:
TO #47
Goods issue
 SAP AG 1999
n Queues grouping together similar activities are defined to make it easier to coordinate the activities
in a warehouse. For example, you might define a queue that groups together all of the activities
involved in a goods receipt. The transfer orders are then processed within this queue. The transfer
orders and users are assigned to queues.
n Queues are required for coordinating the RF activities in a warehouse. Users can only display the
TOs in their own specific queue.
n You can define queues for various activities, doors or areas in a warehouse number. This allows you
flexibility in defining the various queues that coordinate the processing of the TOs.
(C) SAP AG LO140 6-32

Radio Frequency Monitor
Goods receipt queue Goods issue queue
TO #45 TO #46
TO #46
TO #46 TO #45
TO #46
TO #48
User Joe Strummer User Mick Jones

TO #47
TO #51
TA#46 TA#48
 SAP AG 1999
n The RF Monitor is a tool that enables you to coordinate the activities and users that are assigned to
the various queues. The monitor assigns the new TOs to the various queues. It does this on the basis
of the type of transfer involved (putaway or pick), and on the basis of the source and destination data
contained in the transfer orders. You can also manage the workload and the capacities of the queues.
n You can display the number of TOs assigned, as well as monitoring the behavior of the users
assigned and displaying the actual workload in the queue. You can process additional detailed
information for individual TOs - sorted by creation date and time.
n You can move transfer orders and users manually from one queue to another by dragging and
dropping them. This gives you more flexibility, and allows you to react quickly to unforeseen
circumstances.
n A transfer order can be passed on to another queue. If no users are available for processing the TO,
the TO can be passed on automatically.
n You can change the transfer priority of a TO (and thus influence the sequence in which TOs are
processed).
(C) SAP AG LO140 6-33

Packing: Topic Objectives
l Pack the materials for an outbound delivery

l Explain the relevant packing terms
l Describe the inventory management options
available for packaging materials
 SAP AG 1999
(C) SAP AG LO140 6-34

Packaging Materials
Carton Wire basket Crate
Pallet Container Truck
 SAP AG 1999
n Packaging materials are materials that can be used to pack or transport goods.
n If you wish to store packing information for outbound deliveries, you must specify packaging
materials.
n You must have created a material master record for each packaging material. In the standard system,
you can use material type VERP for these materials. You enter special information such as the
permissible packaging weight and volume in the material master.
You can, however, also make these fields ready for input for other material types.
(C) SAP AG LO140 6-35

Handling Units as Shipping Elements
Unpacked
Unpacked Deliveries
Deliveries
Delivery: 80000327
Delivery: 80000327
Material Quantity
Material Quantity
M1 10 pc
M1 10 pc
M3 20 kg
M3 20 kg
Pack
Handling unit
M1 10 pc
M3 20 kg
 SAP AG 1999
n Selected items in an outbound delivery can be packed into an individual packaging material, referred
to as a handling unit (package).
n The handling unit is either assigned a unique sequential number from a predefined number range, or
it can be given a unique name based on SSCC18 (serialized shipping container code).
n The handling unit header contains information on the packaging material into which the items were
packed.
The content overview of the shipping element shows which delivery items or other shipping
elements are contained, and also details the quantities of these.
n You can change the data defaulted from the material master record of the packaging material. You
can also enter an external ID (the pallet number, for example).
(C) SAP AG LO140 6-36

Packing: Functions
Crate1 Pallet 3011

Delivery
Container 7821
Crate2
Pallet 5211
Crate3
Crate4
Shipping
Packing
label
list
 SAP AG 1999
n Packing is in effect the assignment of delivery items to shipping materials. The resulting handling
units can then be packed into further handling units. This, in turn, results in new handling units.
There is no limit to the number of levels of handling units you create (multi-level packing).
n You can unpack from handling units, and you can also empty and delete handling units.
n For items involving a batch split, you can specify in the delivery item category whether packing
should be carried out for the main item (using the total quantity derived from the batch split items),
or for the individual batch split items. If you pack the batch split items individually, you will be able
to identify the handling unit in which a specific batch is to be found.
(C) SAP AG LO140 6-37

Handling Units in the Supply Chain
l Handling Units
n Describe what is packed
how
n Have an identification
number (licence plate eg.
EAN128 or UCC128)
n Have a history
n Simplify the operation in the
Supply Chain
n Are known by all logistic
applications
l Enabling
n Goods movements without
typing material numbers
n Customer specific packing
n Inventory control per HU
 SAP AG 1999
n HU‘s simplify the processes in logistics. Any goods movement can be done for the handling unit.
n A HU only has to be created once. The content and the history information is kept in t he handling
unit and from here available to the different logistics components.
(C) SAP AG LO140 6-38

Business Processes Inbound
Inbound business processes covered with Handling

Unit Management
l Goods Receipt Process
n Handling Units in the inbound delivery / ASN
n Quality Management with HU‘s
n Putaway in the warehouse
l Production Replenishment
n Order dependent (Pick Parts)
n Order independent
l Special processes in Production
n Material Reconciliation
 SAP AG 1999
n Goods receipt and putaway are two basic processes in the warehouse, and they take place when
goods are delivered from a vendor or from production. The putaway process includes putting away
goods in storage bins in the warehouse. You can use the putaway strategies in WM to find a suitable
bin easily.
n When a vendor notifies the goods recipient of the delivery of goods by using a shipping notification,
this can also contain packaging information. The shipping notification generates an inbound delivery
that includes the packing data from the shipping notification. Also, an inspection lot in QM can be
created for the HU`s and the stock then is posted into quality inspection stock upon goods receipt.
n For production supply, you can carry out material staging of production order components with HU´s
in conjunction with WM.
n You can also use material reconciliation with HU`s. Material reconciliation is used to analyze and
verify ingredients at the end of the production process in process manufacturing. It allows to
compare the material quantity that actually flowed in with the planned quantity or the quantity of the
material produced.
(C) SAP AG LO140 6-39

Business Processes Outbound
Outbound business processes covered by Handling

Unit Management:
l Finished Goods processes in
production
n Packing in production
n Goods Receipt from production
l Picking and packing
n Pick HU‘s
n Handling Units in the Delivery
n Handling Units and RF
n Delivery Split with HU‘s
l Handling Units in the shipment
l Plant to plant movements
 SAP AG 1999
n Packing finished goods in production means, you can group material produced from a production
order in HU‘s. You pack the material and post goods receipt with reference to to the HU or to the
order. This means that material can be divided beteen several handling units.
n Since all inventory is principally managed with HU‘s, it is necessary, even for pick TO‘s, that the
stock is repacked into HU‘s.
n Using the mobile data processing function, you can perform quick and error-free data transfer since
the data entered through scanning the bar codes is posted synchronously in the SAP R/3 system.
n HU‘s are known in transportation as well since a container could be packed into a truck.
(C) SAP AG LO140 6-40

Posting a Goods Issue: Topic Objectives
l Describe the various options available for posting

a goods issue in the Logistics Execution System
l Complete the outbound process by posting a
goods issue
 SAP AG 1999
(C) SAP AG LO140 6-41

Posting a Goods Issue: Overview
5 6 7
3 4
1 2 1314
9 10 11 12
8 20 21
7 1 8 19
15 16 1 27 2
8
3 24 25 2 6
22 2
0 31
29 3
All shipping Delivery 80003714

activities Shipping point
completed? Goods issue ü
• Manually (change outbound delivery)

• Multiple processing
• During TO confirmation
• Using Outbound Delivery Monitor
 SAP AG 1999
n Shipping activities are completed when a goods issue is posted for the outbound delivery.
n All compulsory shipping activities must be completed before you can post the goods issue. These
might be compulsory confirmation, or compulsory picking status.
n You can post the goods issue by changing an individual outbound delivery. Alternatively, you can
use the multiple processing function to first of all select all outbound deliveries for which a goods
issue is to be posted, and then to actually post goods issues for these. You can use the Outbound
Delivery Monitor for this.
n You can also post the goods issue when you confirm the transfer order.
n When you change an individual outbound delivery, you can specify the actual goods issue date
(without changing the planned date) before posting the goods issue.
n The goods issue applies to the entire outbound delivery. If any errors occur, these are logged (if, for
example, batch or serial number information is missing for unpicked or partially picked items). If
errors occur, the goods issue is not posted.
(C) SAP AG LO140 6-42

Effects of a Goods Issue Posting
Outbound
delivery
Goods issue
Material 1 100 PC
Interim Material
storage stock
area
Order
Delivery Account 1 Stock
Billing
due list X X
 SAP AG 1999
n Once you have posted the goods issue for the outbound delivery, certain restrictions are imposed as
to the data you can change in the delivery - for example, you cannot change any quantities. This is
because the outbound delivery must be a precise reflection of the real-life situation.
n The goods issue
Ÿ Reduces the stock in Inventory Management, and clears the interim storage bins.
Ÿ Posts the value change to the balance sheet accounts of inventory accounting.
Ÿ Clears the delivery requirements.
Ÿ Writes status information in the outbound delivery.
Ÿ Is recorded in the document flow.
Ÿ Creates the billing due list.
(C) SAP AG LO140 6-43

Goods Issues: Unit Summary

l Describe and work through the outbound process
for outbound deliveries
l Use the various options available for optimizing
the outbound delivery process (rough workload
estimate, picking waves, two-step picking, direct
connection to radio frequency terminals)
 SAP AG 1999
(C) SAP AG LO140 6-44

Solutions
Unit: Goods Issues

Topic: Outbound Deliveries
1-1 Creating a sales order
1-1-1 Logistics → Sales and Distribution → Sales → Order → Create

Order type OR
Sold-to party T-S11B##
Purchase order number ##-01
Material LES02-##
Quantity 5
Material LES04-##
Quantity 5
Choose Save. The order number is assigned internally (i.e. automatically by
the SAP R/3 System).

Enter the number of your order, and choose the Shipping tab page. You will
see the following information for both items:
Item 10: Plant 1200 (Dresden)
Item 20: Plant 1200 (Dresden)
1-1-3 Item 10: Shipping point X0## (Dresden)
Item 20: Shipping point X0## (Dresden)
1-1-4 A shipping point is the physical location or group of persons responsible for
processing shipping activities. Every delivery is processed by one shipping
point.
(C) SAP AG LO140 6-57

1-2 Information in the order on the plant
1-2-1 The delivery plant can be derived from the customer material information
(on the sold-to party), from the master data of the ship-to party (sales area
data), or from the material master (in the sales view “Sales org. data 1”).
1-2-2 If a delivering plant has not been specified, no delivering plant is defaulted
in the order. Exception: You have specified a default value manually in the
Delivering plant field in the header of the sales document.
1-3 Information in the order on the shipping point

1-3-1 The delivering plant, shipping condition of the sold-to party, and loading
group of the material are used to derive the shipping point.
1-3-2 Delivering plant 1200, shipping condition 50+## (e.g. 70 for course group
20) and loading group “Forklift” were used to determine the shipping point.
1-4 Scheduling
Logistics → Sales and Distribution → Sales → Order → Display
1-4-1 Enter your order number. Select item 10, choose Schedule line for item, and
then click the Shipping icon. Make a note of the dates displayed.
1-4-2 The shipping activities must be started on the material availability date.
1-4-3 Picking, packing, and transportation planning must be completed.
2-1 Creating an outbound delivery

Outbound Delivery → Outbound Delivery → Create → Single Document → With
Reference to Sales Order
2-1-1 No. The scheduling data in the order shows that you do not have to start
processing shipping today (you can start in a few days’ time).
2-1-2 Yes. Processing of shipping must have commenced on the material
availability date so that the goods are delivered to the customer on the
confirmed delivery date.
3-1 Displaying an outbound delivery

3-1-1 To view the overall status, choose Header details, and then choose the
Processing tab page.
To display detailed information on item 10, choose Item overview, select
item 10, and then choose Item details.
(C) SAP AG LO140 6-58

Overall status of picking: A – Not yet picked
Overall status of WM activities: A – WM-TO required
Warehouse no.: ###
Storage type: 916
Bin (WM): The number of your outbound delivery
Goods issue status of item 10: A – Not yet started
3-1-2 The warehouse number is determined by the picking storage location on the
basis of the combination of plant, shipping point and storage condition
defined for the material.
3-1-3 The delivery quantity is 5 pieces, and the picked quantity is 0 pieces.

Outbound Delivery → Outbound Delivery → Change → Single Document
The goods issue cannot be posted for the outbound delivery because the
outbound delivery has not yet been fully picked.
(C) SAP AG LO140 6-59

Unit: Goods Issues
Topic: Transfer Order for Outbound Delivery
4-1 Stocks and statuses

Management)
Enter material LES02-##.
Storage type Storage bin Quantity
___________ ___________ _________
___________ ___________ _________
___________ ___________ _________
Stock in Inventory Management

____________________________________________________________

Enter your outbound delivery. To display detailed information on item 10,
choose Item overview, select item 10, and then choose Item details.
Picking: A – Not yet picked
WM activities: A – WM-TO required
Goods issue: A – Not yet started
4-2 Creating a transfer order

4-2-1 You can create transfer orders for outbound deliveries in the following
ways: Manually using the “Transfer Order for Outbound Delivery”
transaction; by selecting the outbound deliveries due for picking from the
outbound delivery monitor and creating the transfer orders; by creating
transfer orders directly or automatically once you have created an outbound
delivery; using the collective processing function for several deliveries; or
by specifying the creating a transfer order is a subsequent function of the
outbound delivery.
(C) SAP AG LO140 6-60

Outbound Delivery → Picking → Create Transfer Order → Single
Document
Enter the number of your outbound delivery, and your warehouse number
(###). On the screen of the items to be processed, select the first item, and
choose Storage type search sequence.
4-2-3 Movement type 601 – GR delivery note
4-2-4 Storage type = 916; storage bin = Number of your outbound delivery.
4-2-5 Choose Stock removal foreground, and confirm the warning that tells you to
check the storage bin. You can change the storage bin from which the goods
are to be picked.
4-2-6 To go to the next material, choose Generate and next material.
4-2-7 To view the stock of the material in specific bins, choose Stock. Select the
pallet that only has 22 pieces (this is the one from the goods receipt
exercise), and take 5 pieces from it.
4-2-8 Save your transfer order, and make a note of the transfer order number.
4-3 Stocks and statuses

Management)
___________ ___________ _________
___________ ___________ _________
___________ ___________ _________
____________________________________________________________
(C) SAP AG LO140 6-61

4-3-2 Enter your outbound delivery. To display detailed information on item 10,
Picking: C – Fully picked
WM activities: B – Ex. open TO items
Picked quantity: 5 pieces
4-4 Confirming the transfer order

Outbound Delivery → Picking → Confirm Transfer Order → Pick Step
Enter the number of your transfer order, and choose Input list. Confirm the
transfer order by saving it.
Outbound Delivery → Picking → Display Transfer Order
The confirmation status of the source data is Withdrawal confirmed.

Outbound Delivery → Picking → Confirm Transfer Order → Transfer
Step
Enter the number of your transfer order, and choose Entry list. Confirm the
transfer order by saving it.
Logistics → Logistics Execution → Internal Warehouse Processes →
Management)
___________ ___________ _________
___________ ___________ _________
___________ ___________ _________

____________________________________________________________

WM activities: C – WM TO confirmed
(C) SAP AG LO140 6-62

(C) SAP AG LO140 6-63

Unit: Goods Issues
Topic: Goods Issue for Outbound Delivery
5-1 Posting the goods receipt

Outbound Delivery → Outbound Delivery → Lists and Logs → Outbound
Delivery Monitor
5-1-1 Choose For goods issue, and enter your shipping point (X0##). Select your
outbound delivery, and choose Goods issue. Display the outbound delivery
by double-clicking it. To find out the number of the material document,
choose Environment → Document flow.

Management)
___________ ___________ _________
___________ ___________ _________
___________ ___________ _________

__________________________________________________________

WM activities: C – WM TO confirmed
Goods issue: C – Completed
(C) SAP AG LO140 6-64

Transportation
Contents:
l Inbound and outbound shipments
l Shipment documents
l Shipment cost documents
 SAP AG 1999

Transportation: Unit Objectives
l Describe where and how transportation fits into

the supply chain
l Create, plan, and process shipments
l Calculate shipment costs
 SAP AG 1999

Transportation: Business Scenario
l In the IDES model company, deliveries are grouped

together and planned as shipments. This optimizes
the supply chain. The shipment costs incurred also
have to be calculated. Since you are the project
team member responsible for this, you have to
familiarize yourself with the transportation
activities in Logistics Execution.
 SAP AG 1999

Inbound and Outbound Shipments: Topic Objectives

the supply chain
l Name the different types of shipment possible
(inbound shipment, outbound shipment,
individual shipment, collective shipment,
transportation chain), and explain how they differ
from each other
 SAP AG 1999

Transportation Activities in the SAP System
Transportation activities
deal with the shipping of
goods ...
From vendor to plant á Inbound shipments
From plant to customer á Outbound shipments
From plant to plant á Stock transfer
 SAP AG 1999
n A shipment is a collection of outbound or inbound deliveries with the same conditions for
transportation.
n If deliveries are to be shipped on time and arrive at the customer site accordingly to plan, the
transportation process must be handled efficiently.
n The Transportation part of Logistics Execution provides you with the most important functions you
need for handling inbound and outbound shipments.
n Different type of shipment are used to manage the transportation process.

Inbound Shipments
Purchase Inbound Goods Inbound

Order Delivery Receipt Invoice
Inbound
Shipment
Plant
Vendor
 SAP AG 1999
n The shipment type contains all the information required for controlling a shipment (e.g. the number
range, and whether the shipment is an inbound or outbound shipment).
n Inbound shipments are part of the inbound process, and are made on the basis of inbound deliveries.
n An inbound shipment is the transportation of the delivery from the vendor to your own plant.
n The goods receipt for this is then posted. Invoice verification is the final activity in the purchasing
process.

Outbound Shipments
Order Outbound Goods Outbound

Delivery Issue Invoice
Outbound
Shipment
Plant
Customer
 SAP AG 1999
n An outbound shipment is another type of shipment. Outbound shipments are part of the outbound
process, and are made on the basis of outbound deliveries.
n An outbound shipment is the transportation of goods from your own plant/shipping point to the
customer.
n The goods issue is then posted, and the invoice for the goods created.

Individual Shipments
Shipment
Hamburg
DELIVERY 1
From: Hamburg
Delivery 1,2
To: Frankfurt
BA
Load: A
DELIVERY 2
Frankfurt From: Hamburg
To: Frankfurt
Load: B
 SAP AG 1999
n Individual shipments are yet another separate type of shipment. An individual shipment is
characterized as follows:
Ÿ One or more inbound/outbound deliveries are involved in the shipment
Ÿ There is one point of departure and one point of destination
Ÿ Normally, only one mode of transport is involved
Ÿ One shipment document is created

Collective Shipments
Shipment
Hamburg
DELIVERY 1
From: Hamburg
BA Delivery 1,2
To: Stuttgart
Load: A
Frankfurt DELIVERY 2
From: Hamburg
A Delivery 1
To: Frankfurt
Stuttgart
Load: B
 SAP AG 1999
n A collective shipment is another type of shipment. A collective shipment is characterized as follows:

Ÿ One or more inbound/outbound deliveries are involved in the shipment
Ÿ There can be one or more points of departure and one or more points of destination
Ÿ Normally, only one mode of transport is involved
Ÿ One shipment document is created

Transportation Chain
Dresden Hamburg Harbor New York Harbor Boston Philadelphia
Shipment 1
Locations
Delivery 1,2
Shipment 2
Main leg
Delivery 3-6
Shipment 3 Subsequent legs
Preliminary
Delivery 1-6 Shipment 4
legs Delivery 1,2
Shipment 5
Delivery 3
Shipment 6
Delivery 4-6
Time
 SAP AG 1999
n A transportation chain enables you to manage shipments where inbound/outbound deliveries are
made using several modes of transport. In other words, the deliveries are involved in different
shipments.
n A transportation chain is characterized as follows:
Ÿ One or more inbound/outbound deliveries are involved in several shipments
Ÿ There can be one or more points of departure and one or more points of destination
Ÿ Several modes of transport can be involved
Ÿ Several shipment documents are created: preliminary legs, main legs and subsequent legs. In each
case, separate shipment types are available.
(C) SAP AG LO140 7-10

Shipment Documents: Topic Objectives
l Describe how shipment documents are

structured, and what they are used for
l Name the different methods that can be used to
create a shipment
l Describe the information contained in shipment
documents
l Create, plan, and process an outbound collective
shipment
 SAP AG 1999
(C) SAP AG LO140 7-11

Transportation Planning and Processing
Transportation Planning:
Transportation planning covers all

planning and organizational activities
that have to be performed before an
actual shipment is made
Transportation Processing:
Transportation processing (aka

shipment completion) covers all the
steps required for making an actual
shipment
 SAP AG 1999
n Transportation planning involves a whole range of further tasks.

n All the information pertaining to these tasks can be stored in a shipment document.
n Some of this information is determined by the shipment type (the means of transport, for example),
or is copied from the deliveries (shipping elements, service agents, routes and route stages, for
example). You can change this defaulted data as required.
n You enter other pieces of information manually in the shipment document (deadlines, comments,
texts, etc.).
n A range of activities can be performed before the shipment leaves the shipping point. These activities
follow on from the planning activities, and are linked inextricably with actually carrying out the
shipment. These activities are normally not started until the means of transport is present.
n You can store information and data on these activities in the shipment document.
(C) SAP AG LO140 7-12

Shipment Documents and Their Functions
Group together inbound or

outbound deliveries into a
shipment Service provi
provider
der
Create output Mode of transport

(EDI / papers)
Record details of
shipment
Functions of
Shipment
Documents
Record planned and
actual dates / status Determine shipment
information stages
A C
Plan. Act.
Create shipping units
B
June 4
June 12
 SAP AG 1999
n A shipment document is a central document that is used to map shipments in Logistics Execution. It
contains all the information required for organizing and carrying out shipments.
n A shipment assumes the following functions:
Ÿ Grouping together of inbound deliveries into inbound shipments
Ÿ Grouping together of outbound deliveries into outbound shipments
Ÿ Assignment of service agents, modes of transport, shipment type, and so on
Ÿ Scheduling and deadline monitoring
Ÿ Information on shipment stages
Ÿ Packing and formation of shipping elements
Ÿ Creating output (messages) and shipping papers
Ÿ Recording texts relevant to shipping
Ÿ Recording information on partners
(C) SAP AG LO140 7-13

Structure of Shipment Documents
Header
Shipment TrPPt Service agent Weight/KG Route
1095 1000 12345 27 R00025
Items
Delivery ShipPt Recipient address Weight/KG Deliv.date
80000123 1200 61234 Frankfurt 14 04/23/XX

80000345 1200 70418 Stuttgart 13 04/23/XX
 SAP AG 1999
n A shipment document comprises the following:

Ÿ Shipment header - contains data that applies to the entire shipment. This is data on the shipment
type, transportation planning point, deadlines, statuses, and so on.
Ÿ Shipment items - in inbound shipments, the items correspond to individual inbound deliveries; in
outbound shipments, they correspond to individual outbound deliveries.
(C) SAP AG LO140 7-14

Creating Shipments
Individually, Automatically in
using the Using a non-SAP
a collective run
Create transportation
using the
Shipment planning system
Worklist
function function
TPS
Online Batch
LES
 SAP AG 1999
n There are different ways of creating shipments in Logistics Execution:

n You can use the Create Transportation function to create individual shipments. In this case, you use
a range of selection criteria to select deliveries due for transportation, and create shipment documents
for these.
n You can also create several shipments at the same time. You use a multiple processing run for this.
This can be done online or in the background. On the basis of various processing rules, the system
creates one or more shipment documents automatically.
n If the shipment documents are created in an external transportation planning system, and have to be
optimized, an interface is available for linking up the external system with the Logistics Execution
System.
(C) SAP AG LO140 7-15

Shipment Stages
Possible
stages of shipment
Shipment leg Border Load transfer

crossing point point
Hamburg - Frankfurt Hamburg Frankfurt
Partner: Forwarding Partner: Customs Partner: Loading
agent broker supervisor
Customs
 SAP AG 1999
n Stages contain geographical information for a shipment.

n The following stages are available in the standard system:
Ÿ Leg - this is the link between a starting point and a finishing point; the starting and finishing points
might be transportation connection points, shipping points, unloading points, and the like.
Ÿ Load transfer point - this is the location/point where a shipment is loaded or unloaded, or is
transferred from one means of transport to another.
Ÿ Border crossing point - this is the location/point where a shipment crosses over a border.
n Information on service agents, partners, deadlines, distances, shipment costs relevance, and so on,
can be stored for each of these stages.
n You can also assign the deliveries to the individual stages.
(C) SAP AG LO140 7-16

Shipment Cost Documents: Topic Objectives
l Describe how shipment cost documents are

structured, and list the information they contain
l Create a simple shipment cost document
 SAP AG 1999
(C) SAP AG LO140 7-17

How Shipment Costs Fit into the Overall Process
Outbound Inbound
Sales order Purchase order
Outbound delivery Inbound delivery
Shipment Shipment
Goods issue Goods receipt
Calculation of Calculation of
shipment costs shipment costs
Settlement Settlement
 SAP AG 1999
n Shipment costs can be calculated and settled for both inbound and outbound shipments.
n The shipment costs are stored in a separate document in Logistics Execution - the shipment cost
document. A range of functions are available in a shipment cost document:
Ÿ Calculation of shipment costs
Ÿ Settlement with service agent
Ÿ Pass on costs to external accounting (FI) and internal accounting (CO)
(C) SAP AG LO140 7-18

Calculating Shipment Costs: Prerequisites
Shipment Document
The shipment document must Shipment costs rel. 4

be relevant to shipment costs
The shipment document must Status

have the correct overall status Planned 4 Completed
(but at least the status
"Planned")
 SAP AG 1999
n If you wish to create a shipment costs document for a shipment, the shipment must be flagged as
"relevant to shipment costs." The shipment document must also have the required overall status
specified in the shipment cost element definition (but at least the status "Planned").
(C) SAP AG LO140 7-19

Creating a Shipment Cost Document
Shipment doc. Shipment cost doc.
1 1
2 2
3 3
1:1
 SAP AG 1999
n You can create shipment cost documents individually in the foreground, or in a multiple processing
run.
n If you create a shipment cost document individually, you will refer directly to a shipment document.
You create one shipment cost document for each shipment document.
n Depending on your system setup, the shipment costs can be calculated automatically, assigned to the
correct accounts, and passed on to accounting.
(C) SAP AG LO140 7-20

Items in a Shipment Cost Document
Shipment doc. Shipment cost doc.
Header Item 1
Insurer
ABC Insurance
Stage 1 Item 2
Hamburg - Frankfurt
Forwarding agent
Nordspeed
Stage 2 Item 3
Frankfurt - Stuttgart
Forwarding agent
Schmalenbach
 SAP AG 1999
n Shipment cost items refer either to the shipment header or a shipment stage.
n For example, an item that refers to the header can contain insurance costs for supplementary
transportation insurance. An item that refers to a shipment stage might contain transportation costs,
load transfer costs, and so on.
n The way in which items function is determined by the item category.
(C) SAP AG LO140 7-21

Transportation: Unit Summary

the supply chain, and how it is linked to Shipping
l Create, plan, and process shipments
l Calculate shipment costs
 SAP AG 1999
(C) SAP AG LO140 7-22

Solutions
Unit: Transportation
1-1 Where transportation fits in in LE

1-1-1 Transportation is the external logistics within the LES supply chain. On the
inbound side of things, transportation fits in as follows Purchase order –
Inbound delivery – Transportation – Goods receipt; on the outbound side of
things Sales order – Outbound delivery – Transportation – Goods issue.
1-1-2 Inbound and outbound deliveries. The delivery type determines whether the
delivery affects transportation.
1-1-3 The transportation planning point plans, process and monitors shipments.
2-1 Creating outbound deliveries

Outbound Delivery → Outbound Delivery → Create → Single Document
→ With Reference to Sales Order
Use the matchcode function (F4) to search for the sales order numbers on
the basis of purchase order numbers. Create an outbound delivery for each
sales order.
The status is A – Transportation not yet planned.
2-1-3
(C) SAP AG LO140 7-27

2-2 Creating a shipment
2-2-1 You can use Collective shipment and Collective shipment by road.
Outbound Delivery → Transportation → Create → Single Documents
Enter the following data:

Transportation planning point 1200
Shipment type Collective Shipment
Click the Select deliveries icon, and enter the following:

Shipping point/receiving point X0##
Transportation planning date Your date
Save your shipment document.

Outbound Delivery → Transportation → Display
Overall status of shipment: Planned
Transportation planning status of outbound delivery: C – Planning
completed.
2-3 Processing the shipment document

Outbound Delivery → Transportation → Change → Single Documents
Enter the number of your shipment, and enter forwarding agent 1058 in the
Forwarding agent field. Then click the Planning pushbutton to change the
status of the shipment.
2-3-2 Now go to the Stages tab page. The first stage is from Dresden (shipping
point) to Frankfurt (Compumax), and the second from Frankfurt
(Compumax) to Stuttgart (PC – World).
2-3-3 The stage from Dresden to Frankfurt is a main leg with Leg indicator 2.
Save the shipment document.
(C) SAP AG LO140 7-28

2-4 Combined picking
Outbound Delivery → Picking → Wave Picks → Create → According to
Shipment
Create a wave pick for the shipment. Enter the shipment, and save the
group.

Outbound Delivery → Picking → Create Transfer Order → By Wave Pick
Enter the number of the wave pick, and select the Background processing
option. Once the TOs have been created, click Release and then click Totals
info to display the numbers of the TOs created.

Outbound Delivery → Picking → Confirm Transfer Order → By Wave
Pick
Enter your wave pick, select the Background processing option, and select
the Pick and transfer option. Choose Execute.
2-5 Shipment completion

Outbound Delivery → Transportation → Change → Single Documents
Click the Shipment completion pushbutton, and save your shipment.
Overall status of shipment: Shipment completion
Transportation planning status of outbound delivery: C – Planning
completed.
(C) SAP AG LO140 7-29

Reporting
Contents:
l Warehouse Activity Monitor
l Shipment details
l Standard analyses
l ABAP List Viewer
 SAP AG 1999

Reporting: Unit Objectives
l Use the Warehouse Activity Monitor to monitor

critical processes in a warehouse
l Call up different kinds of summarized information
from Logistics Execution
l Configure ABAP List Viewer lists
 SAP AG 1999

Reporting: Business Scenario
l Now that you have become familiar with the

functionality of Logistics Execution, you want to
explore the options available for reporting,
planning and monitoring. You want to determine
critical warehouse activities at regular intervals.
You also want to be able to display shipment
details clearly. The movement data you analyze
should be summarized.
 SAP AG 1999

Warehouse Activity Monitor
Deliveries
Production Storage type
Goods receipts
 SAP AG 1999
n The Warehouse Activity Monitor is a tool that enables you to monitor the activities in your
warehouse so that you can detect and correct errors and critical situations. The Warehouse Activity
Monitor automatically detects irregularities as soon as possible after they arise. It displays these and
provides assistance in analyzing and correcting these irregularities.
n You can automate the selection of the critical objects displayed in the Warehouse Activity Monitor.

Warehouse Activity Monitor Objects
l Transfer orders
l Transfer requirements
l Negative stock situations
l Deliveries
l Posting changes
l Interim storage stock without movement
l Critical stock for production supply
 SAP AG 1999
n Transfer orders: unconfirmed transfer orders that have existed for longer than a specific period
defined in Customizing.
n Transfer requirements: unprocessed (open) transfer requirements that have existed for longer than the
critical time period defined in Customizing. Time can be measured from the creation date/time or
planned date/time.
n Negative stock situations: this monitoring function shows you all negative stock situations that have
existed for longer than a specific critical period.
n Critical deliveries: unprocessed delivery notes with WM relevant items where there is less time
available for processing than the critical time period defined in Customizing.
n Posting changes: unprocessed posting change notices that have existed for longer than a specific
period defined in Customizing.
n Interim storage stock without movement: the Warehouse Activity Monitor displays all bin stocks that
are stored in interim storage types and whose last movement was so long ago that a predefined
critical period is exceeded.
n Critical stocks for production supply: shows where you have inconsistencies between the reservation
amount and the transfer requirement.

Shipment Details
Detailed Planned/actual
Order
query dates
Graphic display
of shipment
Deliveries
Shipments
Weights
Delivery Dates
Edinburgh
....
Dresden Hamburg
London
Shipment
 SAP AG 1999
n You can use an information system in the SAP System to get a clearer overview of your shipments.
You can display information in list form or graphical form here.
n You can call up this information system from a sales order, delivery, or shipment.
n You can also make further detailed queries in the graphic display.

Itinerary and Transportation Network
Germany Netherlands USA
Plant S1 Customer
Hamburg Boston
D1 S6
Hamburg S3
station D1
S2
S5 Customer
Warehouse D1,D2 S7
D2 Philadel.
Hamburg
Rotter- New
North D2
dam D1, D2, D3 York
S4 S8
D3
D3
Plant
Dresden
Customer
Detroit
Itinerary of delivery D2 Transportation network for delivery D2
 SAP AG 1999
n Shipment details include the itinerary and the transportation network.

n The itinerary shows only shipment stages in which the deliveries/shipments in question are involved.
n The transportation network, on the other hand, shows all of the shipment stages connected with a
delivery/shipment. In other words, it shows all of the shipments pertaining to an activity (including
preliminary legs and subsequent legs, etc.).

Warehouse Controlling
Standard
analyses
Material flow
Putaways
Quantity
Quantity flow
flow
Stock removals
removals “Q”
to
“Rel”
Movement types
 SAP AG 1999
n The Warehouse Management system is integrated with the SAP Logistics Information System (LIS)
to support the analysis of the physical flow of quantities in the warehouse. The evaluations for
Warehouse Controlling are incorporated as standard analyses in the Inventory Controlling menu.
n The following five standard WM analyses are available in Inventory Controlling:
Ÿ Putaway and stock removal (picking)
Ÿ Quantity flow
Ÿ Material putaway/picking
Ÿ Material flow
Ÿ Movement types

Transportation Information System (TIS)
Materials, weights,
volumes, etc.
Service agents Transportation

TIS
planning point/
shipping point
Route and stage

details Shipping
elements/materials
 SAP AG 1999
n The Transportation Information System (TIS) is an information system within the Logistics
Information System (LIS). You can use the TIS to generate a range of analyses and statistics for
shipments.
n The following standard analyses are available:
Ÿ Transportation: provides general information on a shipment (such as the service agent, start and
end of the shipment, type of shipment)
Ÿ Shipment Routes: provides analyses of routes (e.g. how often are specific routes used?)
Ÿ Means of Transportation: provides an analysis of the main shipping material (e.g. to what extent
are the means of transportation being used?)
Ÿ Transportation Shipping: analysis based on shipping information (e.g. how many deliveries of type
LF were shipped from the Hamburg shipping point?)
Ÿ Stages of Shipment: analysis of individual stages (e.g. how many trucks drive from Hamburg to
Frankfurt?)
Ÿ Transportation Material: analysis of individual materials (e.g. material xyz makes up what
proportion of the entire shipment volume?)

ABAP List Viewer
Bin Status Report: Overview
Storage bin Material Plant Stock cat. Stock
01-01-01 T-BW-01 1000 5

Duration
01-01-02 T-MS-00 1000 15
25
01-01-03 T-MS-00 1000 15
130
01-01-04 << Empty >>
130
01-01-05 << Empty >>
01-01-06 << Empty >>
01-01-07 T-BW30 1000 78
01-01-08 T-BW25 1200 80
51
01-01-09 << Empty >>
368
01-01-10 << Empty >>
01-02-01 100 - 450 25
Total 218
0
 SAP AG 1999
n In LE, many lists are displayed as ALV lists.
n The ABAP List Viewer enables you to standardize and simplify lists in the SAP System. A
standardized user interface and standardized presentation options are available for all lists. This
means that there are no redundant functions.
n You can use generally applicable and user-specific display variants to configure the appearance of
lists. You can, for example, show or hide individual fields, generate totals, or move columns. This
gives you the flexibility you need when working with lists.
(C) SAP AG LO140 8-10

Reporting: Unit Summary

l Use the Warehouse Activity Monitor to monitor
critical processes in a warehouse
l Call up different kinds of summarized information
from Logistics Execution
l Configure ABAP List Viewer lists
 SAP AG 1999
(C) SAP AG LO140 8-11

Solutions
Unit: Reporting
1-1 Warehouse Activity Monitor

Logistics → Logistics Execution → Information System → Warehouse →
Warehouse Activity Monitor
1-1-1 Enter your warehouse number (###) and variant LES001. The critical
processes are Unconfirmed transfer orders, Open transfer requirements,
Critical deliveries and Interim storage stock, without movement.
1-1-2 The data you see was updated at the last full hour. To update data manually,
place your cursor on the line in question, and choose Edit → Determine data
again.
1-1-3 Double-click the objects, and edit them. Once you have corrected the critical
situation, the traffic-lights icon turns green.
1-1-4* To create a new variant, call up the Warehouse Activity Monitor for your
warehouse number, and do not specify a variant. In the screen that appears,
you can restrict your selection to specific objects. Select only the objects
Unconfirmed transfer orders and Critical deliveries. Also specify the source
and destination storage types. Save your variant, and give it a name.
1-2 Shipment details

1-2-1 By choosing Environment → Transportation info → Itinerary:

Graphic/Transportation network: Graphic, you can display the shipments in
graphic form.
1-2-2 From shipment documents, deliveries, and sales orders.
(C) SAP AG LO140 8-15

2-1 Logistics Information System
Logistics → Logistics Execution → Information System → Warehouse →
Standard Analyses
2-1-1 If you use the Material Flow analysis, you can display further information
on the materials and movement data.
2-1-2 Place your cursor on the column entitled Moved quantity, and click the Time
series icon.
2-1-3 Logistics → Logistics Execution → Information System →
Transportation Planning → Standard Analyses
Select the standard analysis called Transportation Material, and enter the
material from the previous exercise.
2-2 Rough Workload Estimate

2-2-1 Logistics → Logistics Execution → Information System → Warehouse →
Rough Workload Estimate → General Overview
Enter your warehouse number (###), and an analysis period.
2-2-2 You can update the following key figures here: Processing time/hours,
weight, volume, quantities in load categories, number of schedule lines, and
shipping materials.
2-2-3 In the Rough Workload Estimate, information in a warehouse number is
broken by warehouse process. Warehouse processes are goods
receipt/putaway, and picking/goods issue.
3-1 ABAP List Viewer (ALV) Lists

Stock → Display → Bin Status Report
3-1-1 Enter your warehouse number (###), and click Execute. To change the
current display variant, click the Current display variant icon. Find the field
Available stock in the list of hidden fields (on the right-hand side of the
dialog box). Select the line containing this field and transfer it to the list of
selected fields on the left.
3-1-2 Now select the Batch field on the left-hand side of the dialog box, and hide
it (by transferring it to the list of hidden fields). To use your display variant,
click the Copy icon.
3-1-3 Now click the Save display variant icon, and enter a name and description
for your display variant. Save your display variant. If you want to use it as
the default display variant, choose Settings → Display variant →
Administration. Click IV (Initial Variant) for your variant.
3-1-4 Now call up the bin status report again.
(C) SAP AG LO140 8-16

ASAP
Contents:
l Components of TeamSAP
l ASAP Roadmaps
l Major implementation tools
 SAP AG 1999

ASAP: Business Scenario
l The implementation team analyses the tools and

services provided by SAP to facilitate the
implementation of SAP software.
 SAP AG 1999

ASAP: Objectives
l Describe the components of TeamSAP
l List and briefly describe the five phases of the

ASAP Implementation Roadmap
l Discuss the main tools available for
implementing SAP software
 SAP AG 1999

TeamSAP Components
People:
Solutions expertise
Quality
n SAP
Processes :
AcceleratedSAP
Pro
n Consulting partners
le
n Complementary Consistency
ces
op
software partners n AcceleratedSAP Roadmaps
Pe
ses
n Technology & or powered-by methodologies
hardware partners n SAP Review Program
Products n Support, services
& training
Products :
The Business Framework
Strengths
n SAP product family
n Complementary software products
n Products from technology partners
n Industry solutions
 SAP AG 1999
n TeamSAP involves coordinated interaction between the groups involved in the implementation
environment of the products concerned.

AcceleratedSAP: Implementation Planning
ASAP Roadmap
Continuous
Project Final Improvement
Preparation Preparation Go Live &
Business Realization
Support
Blueprint
Methodology l Implementation
l Project
Management Assistant
Project- l Q&Adb
l Change
Management related Tools l Implementation
knowledge Guide
l Risk analysis
l Profile Generator
l Review l Transport System
Services
Consulting, licensing,
licensing, training
training material,
material,
support,
support, project
project reviews
reviews
 SAP AG 1999
n SAP recommends that you use ASAP as a standard methodology for implementation planning and
for implementing SAP software. The ASAP Roadmap provides a step-by-step guide to
implementation.
n During the five phases of an ASAP project, the results of each phase are recorded in specific
documents. This is particularly important in Phase 2.

AcceleratedSAP Implementation Roadmap
ASAP Roadmap
Continuous
Project
Preparation Final Improvement
Preparation
Go Live &
Business Realization Support
Blueprint
 SAP AG 1999
n Phase 1: Project Preparation - The primary focus of Phase 1 is getting the project started, identifying
team members and developing a high-level plan.
n Phase 2: Business Blueprint - The primary focus of Phase 2 is to understand the business goals of the
enterprise and to determine the business requirements needed to support these goals.
n Phase 3: Realization - The purpose of this phase is to implement all the business and process
requirements identified in the Business Blueprint. You configure the system step-by-step in the work
packages Baseline and Final Configuration.
n Phase 4: Final Preparation - The purpose of this phase is to complete testing, end-user training,
system management and cutover activities. Critical open issues are resolved. When you have
successfully completed this phase, you will be ready to run your business in your production system.
n Phase 5: Go Live and Support - Transition from a project-oriented, pre-production environment to a
successful and live production environment.
n The new ASAP Roadmap (available as of Release 4.6A), helps integrate all existing ASAP
Roadmaps into one "configurable" one. It is based on the products R/3, BW (Business Information
Warehouse), APO (Advanced Planner & Optimizer), CRM (Customer Relationship Management
encompassing Mobile Sales/Mobile Services), and B2B (Business to Business Procurement) and
provides a single implementation solution within ASAP for all SAP software.

Global ASAP
l Implementation strategy l Change management

l Global definition of business l Manage global activities
processes
l Legal requirements
l Global system topology
l Standardization of business
processes
Maintenance &
Support
Realization
Business
Program
Blueprint
Set-Up
Rollout ASAP Roadmap
Continuous
Project
Preparation Final Improvement
Realization Preparation
Business Go Live &
Blueprint Support
 SAP AG 1999
n SAP has developed Global ASAP as the standard implementation methodology for the global
implementation of SAP software. The basic concept of Global ASAP is to map all activities that do
not take place at local level onto a special structure called the Global Roadmap. This Roadmap is
structured according to the AcceleratedSAP principle and includes How-to's, accelerators, modeling
methods and tools. The Global Roadmap is linked to each Roadmap for projects at local level.
n A global implementation strategy involves defining a pre-configured corporate system or global
template. The global template is the sum of all enterprise-specific configuration and Customizing
settings, and models that are included in one SAP System and provide a reference for live systems at
the global and local levels (individual companies and plants). This implementation approach is also
referred to as the global template rollout of the SAP System.
n The Global ASAP Roadmap consists of four phases:
Ÿ Global Program Set-Up
Ÿ Global Business Blueprint
Ÿ Global Realization
Ÿ Global Maintenance & Support

IMG: Tasks
IMG
•The IMG contains documentation
for each activity . Global settings
•The activities can be carried out directly. Countries
•Functions for project management
Currencies
and project documentation are available.
Calendars
Project Project
SAP Documentation Activities Management Documentation
l Concept l Open Customizing l Status/activity data l Efficiently organized
l Recommendations transactions l Scheduling using notes
l Requirements l Resources l Use Microsoft Word
l Activity l Microsoft Project
l WinHelp interface
 SAP AG 1999
n The IMG contains all Customizing activities you need to implement application components.
n You can create Customizing projects in an SAP System, to help structure and manage an
implementation project. You can also record cross-project documentation.
n You can create an IMG for each project.
n From a Project IMG you can work on Customizing transactions, project documentation, cross-
project documentation, and information on project management.

Customer -Specific Configuration
Configuration
Manually ASAP -IMG

link
Project Project
SAP Generate IMG
Generate IMGs
Reference Project IMG
views
Customizing
Customizing
IMG Projects Views
Customizing Project Project

transactions documentation management
 SAP AG 1999
n The IMG acts as a checklist of the Customizing activities that your enterprise should complete to
implement an SAP System. The IMG is hierarchically structured.
n The structure of the IMG and the IMG tools (for example, allocating resources such as project
members and the MS Project interface) help your project team to work through the Customizing
activities in a rational sequence.
n For the realization, you can divide the scope of the Reference IMG into different projects, which, in
turn, are assigned to Project IMGs. Use a Project IMG to work on Customizing transactions, project
and cross-project documentation, as well as information on project management.
n You can create views to improve the structure of a Project IMG. You can use these views to edit
Customizing transactions, project and cross-project documentation, and information on project
management, in line with the Project IMG.
n As of Release 4.6, you can use the ASAP-IMG link in the Q&Adb to create project views. This
transfers the project scope set in the Question & Answer database (Q&Adb) to the R/3 System. The
views generated by the ASAP-IMG link contain Customizing activities for the processes set in scope
in the Q&Adb.
n To use the ASAP-IMG link, a Customizing project must already exist in the R/3 System.

Accelerated
Accelerated Industry
Industry Solutions:
Solutions: Steps
Steps
Industry-specific details in ASAP and documentation
Model-based presentation of the industry solution
Industry-specific Business Blueprint
Industry-specific Customizing in IMG and CATTs

Preconfigured Industry System
Industry-specific business components

Business framework component
Accelerated Solution
 SAP AG 1999
n System documentation and the ASAP Question & Answer database contain industry-specific
information and are the ideal places to start looking for information.
n Model-based presentations of industry-specific business processes help you analyze the business
processes you have selected. Event-driven process chains (EPCs) are available for several industries
(for example, the automotive and pharmaceutical industries) and are integrated in the SAP Reference
Structure. A structure is available for each industry in the ASAP Question & Answer database, and
helps you to produce an industry-specific Business Blueprint (Phase 2 of the ASAP Roadmap).
n Industry-specific Customizing involves integrating default Customizing parameters for a specific
industry in the IMG. SAP has documented this process in the IMG. You can use the Computer Aided
Test Tool (CATT) which is also integrated in the system to transfer industry-specific master data
structures to the system. Test programs (CATTs), named after the above tool, are provided for the
industry-specific business cases defined by SAP. This collection of tools is known as Preconfigured
Industry Systems.
n Industry-specific business solutions are integrated as business components in the business
framework. Implementation in the system can also be a ready-to-work solution. The main feature of
such a solution is the delivery of a combination of software and hardware required to install an SAP
System.
(C) SAP AG LO140 9-10

Implementation Planning and Tools: Summary

l Describe the elements of TeamSAP
l List and briefly describe the five phases of the

ASAP Implementation Roadmap
l Discuss the major tools that support an SAP
implementation
 SAP AG 1999
(C) SAP AG LO140 9-11

Conclusion
Course Overview
Navigation
Overview of Logistics Execution
Organizational Units and Master Data
Goods Receipts
ion
u
Goods Issues
l s
nc
Transportation
Co
Reporting, Planning and Monitoring
ASAP and IMG
 SAP AG 1999
(C) SAP AG LO140 10-1

Course Objectives
l Maintain the master data required in Logistics

Execution, and name the corporate structures
required
l Work through the process flows in warehouse
management, shipping, and transportation
l Describe and appraise the various procedures
available for goods receipts and goods issues in
Logistics Execution
 SAP AG 1999
(C) SAP AG LO140 10-2

Recommended Follow-up Courses
l LO530 - Basic Processes in Warehouse Management

l LO531 - Additional Topics in Warehouse Management
l LO610 - Shipping
l LO611 - Transportation
 SAP AG 1999
(C) SAP AG LO140 10-3

Recommended Follow-up Activities
l Go through the exercises again using the IDES data

or your own data
l Read the online documentation
l Read the IMG documentation
l Read the release notes
 SAP AG 1999
(C) SAP AG LO140 10-4

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LO140 Processes in Logistics Execution

R/3 System Release 46C 27.03.2001

Unit 1 Course Overview Unit 6 Goods Issues

(C) SAP AG LO140 1-4

l Our model company, IDES, orders a range of

(C) SAP AG LO140 1-5

(C) SAP AG LO140 3-1

(C) SAP AG LO140 3-4

Planning and Optimization

Transport- SAP LES Warehouse

(C) SAP AG LO140 3-5

Sales Order Processing (SD)

Logistics Execution (LE)

Source Processing of Invoice Payment

(C) SAP AG LO140 3-6

Invoice Inventory Management

(C) SAP AG LO140 3-7

Determination of Determination of Selection of vendor

Handling of payments Ordering

Invoice verification Goods receipt Purchase order

(C) SAP AG LO140 3-8

Master Other plant

(C) SAP AG LO140 3-9

(C) SAP AG LO140 3-10

Presales activities Order processing Procurement

Payment Billing Shipping /

(C) SAP AG LO140 3-11

Sold-to party Outbound

Bill-to Billing document

(C) SAP AG LO140 3-12

Functions affecting shipping:

• Goods issue • Shipping documents • Packing • Picking

n SAP LE functions available for shipping processing include:

(C) SAP AG LO140 3-13

Storage bin management Planning and monitoring

Stock movements Radio frequency Warehouse control

(C) SAP AG LO140 3-14

You are now able to:

(C) SAP AG LO140 3-15

Unit: Overview of Logistics Execution

1-1 How do the processes fit into the supply chain?

2-1 Creating a purchase order

Logistics → Materials Management → Purchasing → Purchase Order → Create

2-2 Logistics → Materials Management → Purchasing → Purchase Order →

3-1 Posting a goods receipt

Field Name/Type of Data Values

3-2 Logistics → Logistics Execution → Inbound Process → Goods receipt for

3-3 Logistics → Materials Management → Purchasing → Purchase Order →

4-1 Entering a vendor invoice

Field Name/Type of Data Values

Save your invoice.

(C) SAP AG LO140 3-29

Field Name/Type of Data Values

5-1-2 Logistics → Sales and Distribution → Sales → Order → Display

5-1-3 Logistics → Sales and Distribution → Sales → Order → Display

(C) SAP AG LO140 3-30

6-1-1 Logistics → Logistics Execution → Outbound Process → Goods Issue for

Field Name/Type of Data Values

6-1-2 Delivery quantity: 12 pcs

7-1 Picking the outbound delivery

7-1-1 Logistics → Logistics Execution → Internal Warehouse Processes →

Field Name/Type of Data Values

48 pieces of material LES01-## are in unrestricted-use stock.