Master S/4HANA EWM Integration : Step-by-Step Guide Part 3- S4HANA EWM Settings

After completing the connectivity layer (Part‑1) and ERP‑side settings (Part‑2), this section takes you inside the EWM system to configure the warehouse numbers, Supply Chain Units (SCU), SCU hierarchy, Party Entitled to Dispose, Custodian, and warehouse mapping.

These settings form the hidden structural layer of EWM — the layer that determines how stock is interpreted, how documents behave, and how S/4HANA communicates with the warehouse at runtime. If these objects are not configured correctly, even a perfectly connected landscape will fail during inbound, outbound, or stock movement processes.

Once you complete this part, you will have the full EWM structural foundation required for stable integration. From here, you can continue to Part‑4, where we align stock types, availability groups, and storage locations between S/4HANA and EWM.

1. Define Warehouse Numbers

Here we defines our all three Extended warehouses

We have created below three warehouses for our car business

2. Define the Supply Chain Unit (SCU)

The SCU holds the physical attributes like country and time zone.

2.1 Characteristics of the Supply Chain Unit (SCU)

• Each warehouse number is a unique Supply Chain Unit (SCU) with the Business Attribute INV (Warehouse)
• The supply chain unit contains information, such as country, region, and time zone.
• Time zone of the SCU is used to display all date and time fields for the warehouse.
• SCUs are SCM basis objects and used for structural settings in SAP EWM for
• A warehouse number always has to be connected to a SCU.
• Locations are used for the route determination.
• The plant and the SCUs for the warehouse and shipping points have to be created manually in the decentral EWM & embedded EWM.

2.2 Creation of SCU for plant

We will create our plant PA10 as SCU.

SAP Easy Access –> Logistics –>SCM Extended Warehouse Management –>Extended Warehouse Management –>Master Data –>Maintain Supply Chain Unit

T-Code -/SCMB/SCUMAIN

2.3 SCU Creation for Shipping Points

We have the below shipping point assigned to plant PA10 which will be used for deliveries

• PA10 -IC Car Chicago Plant Outbound
• PA20-IC Car Chicago Plant Inbound

Please check the below post for shipping point configuration & assignment

Configure SAP S4 HANA Logistics Execution Organization Structure in 5 Minutes – 2.5 Define Shipping Points

Outbound Shipping point SCU

Inbound Shipping point SCU

3. Maintain SCU Hierarchy

In a simple warehouse with one shipping & receiving point, the warehouse SCU also has the business attributes SO (shipping office) and RO (receiving office).

T-Code -/SCMB/SCUHIERMAIN

4. Party Entitle to dispose

The party entitled to dispose is a BP that represents the party or the organization that is entitled to dispose of the warehouse stock.
Usually, this is the BP of the plant in which the stock is placed and in which the ATP check is performed.

• If we want to manage stocks from several plants in one warehouse, we can use multiple parties entitled to dispose to track the stocks.
• The warehouse-specific product master data in Transaction /SCWM/MAT1 maintains different views per entitled party, this makes it possible to, for example, have a different put-away location determination strategy for different entitled parties, or a different storage process with a value-added service (VAS) step for the goods issue process.
• For each plant in SAP ERP, there is a BP available in EWM. In the standard setup, this BP has the same name as the plant. It can be displayed and maintained in Transaction BP.
• In NW stack it is identified through DB BUT01D IDTYPE “CRM011”.
• In SAP S/4 stack DB BUT01D is not used and a new dedicated DB table /SCWM/TMAPPLANT is used (View /SCWM/VTMAPPLANT) to assign an entitled to plant

4.1 Party Entitle to dispose in Embedded S4 HANA

In Embedded S4 HANA creating of a vendor with plant assigned in enough to declare this BP as party entitled to dispose (& custodian)

Our business partner PA01VEN01 is linked as Supplier to the plant.

So system will allow BP PA01VEN01 to be given as custodian & Default party to dispose

4.2 Party Entitle to dispose in Decentralized S4 HANA

In Decentralized S4 HANA in addition to the creating of a vendor with plant assigned to this vendor, We need to assign this BP to the plant in the table /SCWM/TMAPPLANT is used (View /SCWM/VTMAPPLANT)

Below is the path for assignment of a disposal party to a plant

SPRO –> SCM Extended Warehouse Management –> Interfaces –> ERP Integration –> General Settings –> Assign Business Partners to Plant

5. Custodian

In some industries, especially for logistics service providers, it is common practice to store stocks for more than one plant in the same warehouse number. If you have multiple parties entitled to dispose assigned to the warehouse, you have to assign a custodian to the warehouse number as well. The custodian is the BP that stores, manages, or further processes stock for another BP, but without transfer of title.

• The custodian is usually the owner of the warehouse. The custodian only maintains effective possession of the stock, whereas the owner maintains legal possession.
• The custodian is the owner of the warehouse, whereas the party entitled to dispose is the owner of the stocks. (The custodian may also be referred to as the “holder” of the stocks.).
• To simplify the maintenance, usually the BP of the plant is chosen as the custodian. So, even if the owner of the warehouse is company A, and the plant is called PL01, then you use BP PL01 as the custodian. This saves you the step of creating an additional BP. However, when you use stock for multiple plants within the same warehouse, you can’t do this, and you assign company A as custodian.

As stated above, We have created BP PA01VEN01 to be given as custodian & Default party to dispose

6. Assign Warehouse Numbers

In this step we assign our warehouse number to supply chain unit, Custodian & Default Party to dispose

Now assign as per the below screenshot

7. Map Warehouse Numbers from ERP System to EWM

Here we map the warehouse numbers from SAP S/4HANA or SAP ERP to the warehouse numbers in Extended Warehouse Management (EWM).

7.1 In Embedded EWM within S4 HANA

In embedded EWM we can simply assign the 3-digit warehouse number from S4/ERP to the 4-digit EWM warehouse number without specifying any business system

For our car business we assign PA1 to PA11

7.2 In Decentralized EWM on S/4 HANA

In decentralized EWM on S4 HANA too, we can simply assign the 3-digit warehouse number from S4/ERP to the 4-digit EWM warehouse number without specifying any business system until we want to create a rule for an exceptional case, where an ERP warehouse should be mapped to a different EWM warehouse number if the data from ERP arrives from a particular business system.

8. Warehouse-dependent Number Ranges

Define Number Ranges for the following:
◦Warehouse tasks or warehouse documents
◦Waves
◦Warehouse orders
◦Consolidation groups
• Define Number Range for Physical Inventory Documents
• Define Number Range for HU Identification

9. Define Warehouse Number Control

Here you define the basic data for a warehouse number. For example, weight, volume, time & length units, Default Storage Process Types for special activities, Determination Procedure for Condition Technique etc

10. Acknowledge Use of Advanced Functions

There are two Licence type of EWM

• Basic Warehouse Management
• Extended Warehouse Management

10.1 Basic Warehouse Management

In Basic Warehouse Management usage mode, below basic warehousing processes and functions are included

• Inventory Management
• Inbound Processing (for example, Deconsolidation)
• Outbound Processing
• Internal Warehouse Movements
• Physical Inventory
• Reporting

10.2 Extended Warehouse Management

In Extended Warehouse Management usage mode, below advanced warehousing functions are included

• Inventory Management Optimization (for example, Slotting)
• Inbound Process Optimization
• Outbound Process Optimization (for example, Waves)
• Material Flow Control
• Yard Management (for example, TU handling, Dock Appointment Scheduling)
• Labor Management
• Value Added Services
• Kitting
• Cross Docking
• Warehouse Billing
• Cartonization Planning
• TM Integration
• IDOC based integration to MFS subsystems

With the EWM structural layer now configured, your warehouse is fully prepared to interpret stock, manage ownership, and process documents coming from S/4HANA. You have defined warehouse numbers, SCUs, hierarchy, custodian, disposal party, and warehouse mapping — the core elements that determine how EWM behaves at runtime. The next step is to align stock types, availability groups, and storage locations between S/4HANA and EWM.

Continue to Part‑4 to configure the stock‑mapping layer that ensures physical and logical stock always remain synchronized.

11. Revision : How to Configure S4HANA EWM Integration EWM Settings in 7 Easy Steps

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