Configure EWM in SAP S4 HANA

Configure EWM in SAP S4 HANA

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--> This post will serve as a hub to configure EWM in SAP S4 HANA. 

--> There will be links to the other sequential posts required (in sequence) to configure the EWM in S4 HANA. 

Table of Contents

1. EWM Deployment Options

EWM is deployed as per below 6 options in SAP. All the deployment options have been shown into the below picture & explained below.

Picture : EWM Deployment Options

Note: We will focus only on Decentralized EWM on S4 HANA & Embedded EWM within S/4 HANA from EWM configuration point of view.

1.2 Our Focused first 2 Options

We will focus to configure the below two options, out of the total 6 options

1.2.1 Option 1: Embedded EWM within S/4 HANA On-Premises System (since version 1610)

As the name suggests this Option has EWM deployed within the S/4 HANA. It is same as WM is deployed within LE-TRA component of SAP ERP.

This deployment option is not to integrate with storage locations coming from another ERP system & client, other than the local client used for EWM.

This is now preferred deployment option in case of small and midsize warehouses (non-high throughput warehouses) within a geographical region which is near to the data center where the S/4HANA system is hosted.

1.2.1.1 Embedded EWM within S/4 HANA On-Premises System – Salient Features

Below are described some main features of Embedded EWM within S/4 HANA On-Premises System

  • In SAP S/4HANA embedded EWM, the use of CIF to transfer master data is no longer required.
  • This means all the Business partners like suppliers & customers of S/4 HANA are used by EWM.
  • Also, the material is used in embedded EWM same as it is in S/4 HANA.
  • In a SAP S/4HANA embedded EWM system, no inbound delivery notification exists. The EWM inbound delivery is directly created for the inbound delivery from ERP.
  • Similarly on outbound side, in SAP S/4HANA embedded EWM, the outbound delivery request does not exist, and the outbound delivery order is created directly in EWM.

1.2.2 Option 2: Decentralized EWM on S/4 HANA On-Premises System (since version 1809)

The option cannot integrate with local storage locations of the same system & client. While it can be integrated to multiple SAP ERP and/or S/4HANA systems with ERP role (with restrictions).

This option is now preferred standard deployment option for new decentralized EWM installations 

1.2.2.1 Decentralized EWM on S/4 HANA On-Premises System – Salient Features

This option offers the best future scalability options, provides best independent upgrade capabilities, and does not restrict future ERP integration scenarios. Below are described some main features of Decentralized EWM on S/4 HANA On-Premises System.

  • Master data from SAP ERP like Material, Batches, Business partners, Class & Characteristics etc. to decentralized EWM on SAP S/4HANA are distributed using SAP Standard Application Link Enabling (ALE)-IDoc or the Data Replication Framework (DRF).
  • Basic tables like units of measures, currencies, countries, and languages needs to be configured same in SAP ERP and in decentralized EWM.
  • We can use Object comparison SCMP to check the synchronization of configuration between SAP ERP (S4) & EWM.
There are a total of more than 40 table/views which should be in synchronization of SAP ERP customizing and customizing in decentralized EWM on S4 HANA.

--> Example - When we create an outbound delivery with shipping conditions and Incoterms in SAP ERP and this delivery is transferred from SAP ERP to Decentralized EWM, system checks that the shipping conditions and Incoterms also exist in Decentralized EWM customizing.

We will see all these entries in details as we will move forward with EWM configuration

1.3 Rest of the 4 Options

Below are the rest of the 4 options.

1.3.1 Option 3: EWM is deployed on Separate NetWeaver System Instance with only EWM Active

Since EWM system is deployed on separate server, so EWM availability is very high. It does not get affected with the events happened in the main ERP system.

1.3.2 Option 4: EWM is deployed on Separate SCM Server System Instance with only EWM Active

 Since EWM system is deployed on separate server, so EWM availability is very high. It does not get affected with the events happened in the main ERP system.

1.3.3 Option 5: EWM is deployed on Separate SCM /NW System Instance with other systems Active i.e. APO, TM etc.

In this option, EWM and APO can be deployed and used in the same system instance. But it is recommended to use EWM and APO in separate clients to avoid same receiver logical system and receiver system type for the master data distribution for both EWM and APO as we cannot use batch management on plant level (available with EWM 9.4 and higher) in this case. Separate clients for EWM & APO allows for dedicated master data distribution.

1.3.4 Option 6: EWM being deployed as an Add-On on an ERP system instance

Not Recommended for new EWM deployment due to the negative consequences in case of future plans of converting the ERP system to S/4 HANA.
Also, cannot be integrated with storage locations coming from another ERP system & client, other than the local client used for EWM.

2. What Happens to WM with arrival of EWM

There is no option of using WM with S4 HANA. With S4 HANA SAP EWM is the default warehouse management module. In this post we will configure EWM in SAP S4 HANA.

Though at present SAP WM also exist along with embedded EWM in SAP next generation ERP solution i.e. S/4 HANA, but SAP WM will soo end in near future and only EWM will be an option as a WM application in SAP S/4 HANA.

3. How to Configure EWM in S4 HANA

As we have stated above, we will focus to configure the below two options

  • Decentralized EWM on S4 HANA.
  • Embedded EWM within S/4 HANA.
--> In the process of EWM configuration, if there is any difference in configuration between decentralized & embedded EWM on S4 HANA, we will show it separately otherwise by default consider that configuration is same for decentralized & embedded EWM on S4 HANA

--> To configure EWM we need to follow a sequence of configuration. We will configure full EWM as per recommended sequence. 

How to configure EWM in S4 HANA. Please see below the sequence to configure EWM in S4 HANA successfully.

  1. Step1: Basic Connectivity Setting

    In this step basic connectivity of the system like -General settings for the system landscape and the qRFC communication & setting of master data & application integration is done.

  2. Step 2: Configuration in ERP
    [Decentralized] -Configuration will be in S4
    [Embedded] – Configuration will be in LE, MM, SD components of the ERP present in the same instance

    In this step we will execute the necessary configuration required to be executed in S4/EWM/LE to run the Embedded/Decentralized Warehouse

  3. Step 3: Integrate EWM warehouse

    In this step we will do all the configuration in EWM required to integrate the Embedded/Decentralized Warehouse to S4/EWM/LE.

  4. Step 4: Storage Type Configuration

    In this step we have configured storage types, storage type groups and assign the storage types to storage type groups

We will configure now each step.

3.1 Step 1: S4 HANA-EWM System Connection basic Settings

In this step we will do the basic setting of S4 HANA EWM system. EWM system is connected for both options embedded & decentralized as per below picture

Picture: S4 HANA EWM System Connection

Below activities are executed under this configuration

Step 1: General settings for the system landscape and the qRFC communication

1.1)-Name Logical Systems.
1.2)-Assign Logical Systems to a Client.
1.3)-Determine RFC Destinations for Method Calls.
1.4)-Set up QOUT Scheduler.
1.5)-Set up QIN Scheduler.

Step 2: Settings for master data integration

2.1)-Maintain Business System Group
2.2)-Assign Logical System & Queue Type

Step 3: Settings for application integration

3.1)-Define Own Business System
3.2)-Define Business System
3.3)-Assign Warehouse Numbers from Logistics execution
3.4)-Assign Business Partner to Plant
3.5)-Control for RFC queue

Please click on the below post to check the above all configuration steps in detail

S4 HANA EWM System Connection: Basic Settings in 3 Easy Steps

3.2 Step 2: Initial settings in ERP/S4

In order for EWM to work we need to do some initial configuration in ERP

  • If we are configuring decentralized EWM on S4 HANA then these settings needs to be done on S4 HANA system connected with EWM.
  • If we are configuring embedded EWM then these settings needs to be done on LE, MM , SD components of the ERP present in the same instance.

Below configurations are executed under this configuration

  1. Assign Warehouse Number to Plant & Storage Location
  2. Handling Unit Management
  3. Define Handling Unit Type
  4. Define Warehouse Storage Condition.
  5. Configure SAP EWM-Specific Parameters
  6. Assign Warehouse number to EWM Warehouse Number
  7. Setting for Inbound Delivery processing
  8. EWM Tolerance Check Indicator Based on Purchasing Documents
  9. Set Invoice before Goods Issue for Billing Documents
  10. Define Default Values for Deliveries
  11. Delivery Split by Warehouse Number
Please click on the below post to check all above configuration in detail

An Ultimate Guide for Initial S4 Settings to Configure EWM

3.3 Step 3: Integrate SAP EWM Warehouse

In this step we will do all the configuration in EWM required to integrate the Embedded/Decentralized Warehouse to S4/EWM/LE.

Below are the configurations done under this step

  1. EWM Warehouse definition and assignment to the Logistics Execution (LE) Warehouse
  2. Assignment of Organizational units to the EWM warehouse
  3. Assignment of EWM stock types & availability group to the S4 Plants and SLOCs.
  4. Delivery Document Integration configuration
  5. Extra Steps for Decentralized EWM on S4 HANA
  6. Cross Landscape Distribution (XLD) for Decentralized S4 HANA EWM
Please click on the below post to check all above configuration in detail

How to Integrate SAP EWM Warehouse in 7 Easy Steps

3.4 Step 4: Storage Types Configuration

In this step we will do storage type configuration in EWM. In addition to storage type, we will configure storage type groups & assign the storage type to the storage type groups.

Below are the configurations done under this step

1. Storage Type
1a. Explanation of all fields of a storage type
1aa. Fields in “General” Section of Storage Type Configuration
1ab. Fields in “Put away Control” Section of Storage Type Configuration
1ac. Fields in “Stock Removal Control” Section of Storage Type Configuration
1ad. Fields in “Goods Movement Control” Section of Storage Type Configuration
1ae. Fields in “Replenishment” Section of Storage Type Configuration
1b. How to create Storage Type in EWM
1c. Storage Types Configured for our Warehouse
1d. Download all the configured Storage Types in Excel with all the fields
2. Storage Type Group
3. Assign Storage Types to Storage Type Groups

Please click on the below post to check all above configuration in detail

Understanding Storage Types in EWM

9. Define Unit of Measure Attributes

We assign a quantity classification to a unit of measure (UoM). We can also specify whether the UoM is stock-specific or not.

quantity classification is used to determine the storage type search sequence for put-away and stock removal. Based on the requested quantity, the system determines the UoM with the largest conversion factor which is smaller or equal to the requested quantity. The system reads the assignment table with this UoM and uses the resulting quantity classification for the storage type search sequence determination.

We can mark the UoM as stock-specific if UoM is required to associate with the stock. We can only mark UoMs as stock-specific that represent a specific packaging level.

Note : We can’t mark a base UoM as stock-specific.

9.1 Quantity classification

Qty Classific. describes the different packaging units in which a product is stored in the warehouse. The different packaging units can be eaches, cases, pallets, and so on.

For example, if you pack 12 EA in a case, then you map that quantity to a quantity classification of Case. When a task is created to pick 12 EA from the storage type, the system gets the quantity classification from the packaging specification level that maps 12 EA to a case. This quantity classification is then used in the stock removal search sequence to determine the storage type that holds the right SKU. In addition, quantity classification helps identify the operative unit of measure (UoM) from the packaging specification level. This operative UoM is also the alternative AUoM in the warehouse task.

  • The Preferred UoM field is used to specify the preferred UoM at the warehouse level. If this value isn’t specified, the system picks up the preferred UoM maintained at a global level in the Storage tab of the product master.
  • Quantity classification@ storage type data level-The data in the Quantity Classif. field is used to determine the operative UoM for the packaging specification and is used during picking if the quantity classification isn’t stored at the storage type level.
Picture : Quantity Classification

Picture : Qty Classification for Our Warehouses

Note : The allowed values for quantity classification are maintained via IMG path

SCM Extended Warehouse Management –>Extended Warehouse Management –>Cross-Process Settings –> Warehouse Task –> Define Quantity Classifications

10.

11.

Warehouse Structure

Warehouse structure is physical structure of warehouse. We need to map warehouse structure in the system.

Picture : Warehouse Structure, Courtesy : SAP Help

The warehouse structure in warehouse management is divided hierarchically and consists of the following elements:

Warehouse Number : The warehouse number is the highest level of organizational unit in warehouse management. Warehouse number corresponds to a physical building or distribution centre.

Storage Bin : Each storage type and storage section consists of a selection of storage compartments that are called storage bins in EWM.

Quant: The quant is used for inventory management of a product in a storage bin.

Activity area : The activity area is a logical grouping of storage bins. It can refer to a storage bin, or can concatenate bins from several storage types. We can either assign storage bins manually to the activity areas, or if there is a 1:1 relationship between storage type and activity area, you can have the system generate the assignment.

Define Storage Groups for Layout-Oriented Storage Control

The storage group for the layout-oriented storage control is a logical or physical breakdown of a storage type. For Example – All storage bins in an aisle are grouped in a storage group, since the goods have to be brought during picking from this aisle to an intermediate storage bin at the end of the aisle

Note : The system uses the storage group for the layout-oriented storage control to determine the intermediate storage type.

Picture : Configuration of Storage group for LOSC

Below Storage groups are configured

Picture : Storage Groups for PA11 Warehouse

Define Activities

An activity in a warehouse triggers goods movements like Perform Physical inventory, perform putaway, perform picking, perform replenishment etc

Note : An activity must be uniquely assigned to a warehouse process category

Picture : Activity configuration path

Below activities are configured for our warehouse and linked to WP category

Picture : Activities for our Warehouse

Define Activity Area

Activity area are logical area of the warehouse, which groups storage bins together with regards to specific warehouse activities like : Put-away, Picking , Physical Activity etc.

Note : An activity area is used to group warehouse tasks into warehouse orders, which are then assigned to resources. Activity areas are also used for bin sorting based on activity area and activity. We can perform multiple activities in an activity area. An activity area also can include bins from multiple storage types.

Picture : Activity area configuration
Picture : Activity Area for PA11 Warehouse …To Be Continued
Picture : Activity Area for PA11 Warehouse

Generate Activity Areas from Storage Type

Through the report /SCWM/R_AREA_LGTYP_CREATE., we can creates the activity areas 1:1 from the storage types automatically. In the above section all the activity area corresponding to storage types are created automatically and description was given by system

Picture : Automatic Activity area configuration

Note : Once we have generated an Activity Area for all activities, a generic sort sequence is automatically created for every combination of storage type & activity If we create manually activity area corresponding to a storage type as we did in the above configuration, system will not automatically insert our warehouse entry into configuration “Assign Storage Bins to Activity Areas” & “Define Sort Sequence for Activity Area”

Assign Storage Bins to Activity Areas

Here we will Implicitly enter the storage type i.e. we will enter only the storage type and leave all the remaining fields empty. The system specifies the storage bins using the storage type, and assigns all storage bins within this storage type to the activity area.

Note : If we have generated activity area through configuration node “Generate Activity Areas from Storage Type” then system will insert this automatically

Picture : Assign Storage Bin to AA

Picture : Assign Bin to AA for PA11 Warehouse (implicitly)

Since we have created three activity area which is not 1:1 with Storage types so we need to manually insert these activity area in the above config in order to assign bins

Picture : Assignment of Bins to Activity Area not 1:1 with ST

Define Sort Sequence for Activity Area

Here We define the sorting rules within an activity area for all activities except cross-line stock put-away. We will Implicitly enter the sorting i.e. enter only the storage type and leave all remaining fields blank. The system sorts by storage bin name in ascending order.

Note : If we have generated activity area through configuration node “Generate Activity Areas from Storage Type” then system will insert entries in this configuration automatically

Activity : Sort Sequence for Activity Area

For the activity area

Picture : Sort Sequence for activity area

Define Sort Sequence for Cross-Line Stock Put-away

To influence the sort rule during the bin search, we need a sort sequence for the activity CSLP (cross-line stock put-away)

Picture : Cross Line Put away sorting used in inbound Bin search

Note : Put-away strategy doesn´t look for “Sort Sequence” defined for PTWY Activity Area. the activity PTWY assigned in the previous configuration is not considered during the bin search. This can only be used for sorting existing warehouse tasks during the WOCR or in the WO. This activity is never in a warehouse process

Picture : Cross Line put Away sorting to determine storage Bin during Put-away

Settings for Storage Bins

Here we will create the structure & template to create storage bins

Define Storage Bin Types

Storage bins can be divided into groups according to their physical attributes (for example, large bins, small bins). During slotting, you can have the system determine a preferred storage bin type.

Note : In combination with the handling unit type, a suitable storage bin is suggested to you during put away

Picture : Storage Bin type configuration path

Created below storage bin type for our warehouse

Picture : Storage Bin type for Warehouse PA11

Picture : can define capacity in Storage Bin Type configuration

Define Bin Access Types

Access types for storage bins is defined here

Picture : Bin Access Type configuration Path

Picture : Bin Access Type for WH

Define Storage Bin Identifiers for Storage Bin Structures

Here we define storage bin identifiers. These are used for Define Storage Bin Structures to uniquely identify the parts of the storage bin and to define activity areas independently of the storage type

Picture : Storage Bin identifier

Picture : Storage bin identifier Configuration

Define Storage Bin Structure

Here we define storage bin structures with the same configuration. The system uses the initial storage bin structure to automatically create a sequence of similar storage bins.

Picture : Storage Bin Structure

Staging Areas and Warehouse Doors

Staging Area

Staging area is defined by a storage type (called staging area group), a storage section (called staging area), and one or several storage bins (called staging bays).
A staging area can be assigned to one or several doors.

Note : Staging areas are storage sections that fall within a storage type with role D. Staging areas are used to provide interim storage for goods after unloading or before loading. During loading, the sequence of the bins in the staging area can be used as a loading sequence

We can also select a loading rule.
•The handling units should be sent to the warehouse door immediately after arrival.
•All handling units must arrive before loading can begin.
•There needs to be a wait of 24 hours before loading can begin

Picture : Staging Area Configuration Path

We have configured below staging area

Picture : Staging Area Configuration

Define Warehouse Door

A door is defined by a door number and a storage bin (that is door bin).
Note : The storage bin must be located in a storage type with storage type role “F”. The storage type does not contain any storage section. Furthermore, a door is assigned to a staging area.

Picture : Staging area and door Configuration
Picture : Door Configuration for PA11 WH

Note : Standard means of transport can be used for automatic creation of vehicles and transportation units in transaction /SCWM/DOOR (Maintain Door/Transportation Unit Assignments).

Assign Staging Area/Door Determination Group to Door

Here we define which staging area groups/door determination groups are permitted for a warehouse door.

Note : This can be used to separately control warehouse doors with bulk material and warehouse doors with palleted goods

Picture : staging area/door determination group

Assign Staging Area to Warehouse Door

Picture : Staging area and door assignment

Picture : Assignment of door to staging area

In the next post we will look at the further configuration of EWM

Business photo created by freepik – www.freepik.com

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