1. Overview
In SAP, SU (Storage Unit) represents different type of packages like Carton, Pallets etc in Warehouse. Similarly a HU (Handling Unit) too represents different type of package like Carton, Pallets etc in Supply Chain.
Then what is difference between SU & HU. The difference is in existence
Storage Unit(SU) exists in WM only, while Handling Unit (HU) exists in Global Supply Chain.
2. Configuration Options in SAP for HU vs SU
Storage location is the top most organization structure to manage the stock further in the plants.
There are three Options to manage the stock under a SLOC (Storage Location) --> Stock is managed on SLOC level. --> Stock is managed on SLOC level with handling unit management (HUM). --> Stock is managed further to SLOC on storage bin level with only Storage Unit or Handling Unit as Storage Unit --> To manage the stock in SU, we require Warehouse Management . A warehouse is defined for the plant, SLOC combination. if only SU is used then warehouse and corresponding storage types are required to be defined for SUM
2.1 Option 1 -Standard IM Managed SLOC.
In this option we manage the stock no further than storage location (SLOC) level

No HU is used. Once storage locations are defined then no further configuration is required to manage the inventory. Only we need to extend the materials to all the storage locations (on which stock is to be managed).
This is a simple & straight scenario.
--> Please note that we can receive HUs with SSCC number without doing any further configuration of HUs on standard storage location. Only Config required is SSCC generation & packaging material type configuration.
2.1.1 Testing of Option1 in SAP
A Material is created in our plant PA10. Check the below post for the material creation
2 Minutes Guide to Create your First Material in S4 HANA
First we will receive the goods and then dispatch the goods.
2.1.1.1 Receiving the Goods
Purchase Order is created for Material to be procured and Good receipt is done once material is received in the warehouse. Once Good received is done material is available in Storage location of the plant.
Check the below posts for the full process till good receipt on SLOC
All About Purchase Orders in SAP MM
We have created PO & IBD in SAP_

a) Option 1 -Packing
We can pack and create SSCC number if it requires.
Just pack in inbound delivery and post the GR

2.1.1.2 Dispatching the Goods
We have created a sales order and OBD . We can use SSCC number in OBD or we just simply can pick and PGI. System is not going to check any type of SSCC number related checking

We can use Packing and generate SSCC number in option 1 , if we want but system does not execute any type of checking on the SSCC/HU.
2.2 Option 2 -IM Managed SLOC with HU Management
In this option stock is managed on storage location level with Handling Unit Management (HUM) activated.

In addition to storage location configuration, HU related configuration also needs to be done. We have the option of generating either an internal HU number or SSCC according to EAN128. All the stock movement/posting changes happens through deliveries.
2.2.1 Configuration of Option 2
Let’s configure the option 2 in the system in details and see the characteristics of this option.
2.2.1.1 Handling Unit Configuration
Handling unit is a combination of packaging material & material to be packed

a) Number Range Maintenance for HU Identification
We can maintain an internal number range or an external number range for HU identification.
Note: We can maintain multiple internal and external number range intervals so that various packaging material types create different numbers.
SPRO –> Logistics – General –> Handling Unit Management –> External Identification–> Number Range Maintenance for HU Identification
We have maintained the below number ranges

b) Packaging Material Type Configuration
We will configure below packaging material type as below
- Packaging Material Type SCAR -Will generate SSSC Carton Standard
- Packaging Material Type SPAL -Will generate SSSC Pallet Standard
- Packaging Material Type TRUK – Will generate Means of Transport
- Packaging Material Type SEAC – Will generate Means of Transport
- Packaging Material Type AIRC – Will generate Means of Transport
- Packaging Material Type THMM – Will generate Auxiliary packaging Material
- Packaging Material Type DICE – Will generate Auxiliary packaging Material
c) SCAR – SSCC Carton
SPRO –> Logistics – General –> Handling Unit Management –> Basics –> Define Packaging Material Types

d) SPAL – SSCC Pallet

e)- TRUK – Means of Transport “Truck”
Means of Transport “TRUK” is configured as per below

f)- AIRC – Means of Transport “Air Container”
Means of Transport “AIRC” is configured as per below

g)- SEAC – Means of Transport “Sea Container”

h)- THMM – Auxiliary Packaging Material “Thermometer”

i)- DICE – Auxiliary Packaging Material “ICE”

j) HU Type for EAN128 (Application Identifier 01)
Packaging material type configuration within the EAN128-/UCC128 norms, the shipping unit number/ Serialized Shipping Container Code (SSCC) is used to provide handling units with unique identification. The SSCC is 18 digits long and the first digit specifies the type of handling unit. Carton is represented by “0” & Pallet is represented by “1”
Please check the EAN128 configuration in details through the below link
All About Handling Units and Bar Codes in SAP S4 HANA
k) Material Group Packaging Material
Materials that are to be packed into similar packaging materials are grouped together. The material grouping for packaging materials is entered in the material master record of the shipping material.
SPRO –> Logistics – General –> Handling Unit Management –> Basics –> Define Material Group for Packaging Materials
Created Material Group for packaging materials as PKGR

l) Allowed Packaging Material
By assigning packaging material types to the material groups for packaging materials, you define which packaging materials are allowed for packing.
Assigned our both packaging material types SCAR & SPAL to our Material group PKGR

2.2.1.2 HU Requirement for Storage Location
We have configured storage location PP21 for this option.
When we set the HU requirement indicator for a storage location, we can only make stock postings if you specify the handling unit
If you do not specify the handling unit, the system does not create a material document when you make the posting but creates a delivery document.
Let’s maintain the handling unit requirement for SLOC PP21
SPRO –> Logistics – General –> Handling Unit Management –> Basics –> Materials Management –> Inventory Management –> HU Requirement for Storage Locations and Default Values for Deliveries

2.2.1.3 Partner Storage Location
In the above configuration, since the stock in storage location PP21 is subjected to a handling unit requirement, so stock is packed in principle, we must maintain a partner storage location for transactions such as unpacking. We used Standard SLOC PP1B as a partner location.
2.2.1.4 Configure default values for creating a delivery
SPRO –> Logistics – General –> Handling Unit Management –> Basics –> Materials Management –> Inventory Management –> Set QM Check and Delivery Type for Each Movement Type
Here we maintain the delivery categories corresponding to every movement type
a) Delivery Categories
Below are the delivery categories defined in SAP
Delivery Category | Delivery Category Description |
ID | Delivery Category for Inbound Deliveries |
OD | Delivery Category for Outbound Deliveries |
TP | Delivery Category for Stock Transfer Deliveries/Posting Changes |
RL | Delivery Category for Return Delivery to Supplier |
LB | Delivery Category for Subcontracting |
RK | Delivery Category for Customer Returns |
Let’s check/configure for 561 movement type as an example

2.2.1.5 Delivery Type Determination
Below is the path to configure delivery type determination
SPRO –> Logistics – General –> Handling Unit Management –> Basics –> Delivery –> Delivery Type Determination
a) Delivery type determination for inbound delivery

b) Delivery type determination for Outbound delivery

c) Delivery type determination for Posting Change

2.2.1.6 Configuration of SSCC Generation Acc. to EAN128
if we will try to pack in the absence of SSCC number generation while packaging material type configuration mandates it then system will throw the ERROR LE_SHP_BF_EAN128022
This error is due to unavailability of configuration of SSCC Generation Acc. to EAN128
To configure the SSCC generation please follow the below
SPRO –> Logistics – General –> Handling Unit Management –> External Identification –> SSCC Generation Acc. to EAN128 –> Maintain Number Range Object for SSCC

SPRO –> Logistics – General –> Handling Unit Management –> External Identification –> SSCC Generation Acc. to EAN128 –> Maintain SSCC Generation for Each Plant / Storage Location

2.2.2 Testing of Option 2
We will test the option 2 through two scenarios
2.2.2.1 Scenario 1 (Inbound) : Receipt of the material through initial Upload (Movement Type 561)
Let’s receipt the material through 561 movement type on IM HU SLOC PP21
Start MIGO –> Goods Receipt –> Other

As expected system has created inbound delivery

Check delivery type, system has created inbound delivery with type as “HID” as expected

Now if we try to do the goods receipt of this inbound delivery without creating HU , then system will throw error

To resolve this error pack in the inbound delivery

Note : HU number should be generated as per SSCC/EAN128 according to the packaging material type “SCAR” assigned to our packaging material “CARTONSTD”
a) ERROR M8147 -Account determination for entry PPIN GBB not possible

Configure GBB , BSA Key to resolve this error

Now try again to complete the goods receipt
b) Error M7279 – Data for delivery creation is incomplete

To resolve this error We need to assign plant to a vendor.
TIP
input your plant in table T001W and look for plant vendor. if It is available then the above error will not come.
We assign our plant PA10 to the already created vendor PA01VEN01

GR is done successfully now and HU is received in stock

2.2.2.2 Scenario 2 (Inbound) : Receipt of the material through External vendor
in this scenario we will create a PO and then IBD based on the PO.
We want to manage stock on IM storage location but in HU. To create the HU we need to pack in Inbound delivery while receiving the stock.
Crete a PO and Inbound delivery to receive the stock on PA21 SLOC
a) Inbound Delivery Created to receive the stock on IM HU PP21 SLOC

Check the below posts for the full process till good receipt on SLOC
All About Purchase Orders in SAP MM
GR is done and HU is now present in the plant on PP21 SLOC

2.2.2.3 Scenario 3: Move the HU between HU Managed & Non-HU Managed SLOCs
To move the HU among the HU managed and non-HU managed SLOCs we use VLMOVE & HUMO
a) VLMOVE
To move the full HU between HU-managed storage locations and non-HU storage locations we can use VLMOVE
b) HUMO
To move the full HU between HU-managed storage locations and non-HU storage locations we can use HUMO

c) Control of Movements used in VLMOVE & HUMO
In the below configuration, we define the movement types that are used for HU-specific material postings. The Packing process defines the movement type with which the packed (or unpacked) material is transferred between HU-managed storage locations and non-HU storage locations through the posting process in the Handling Unit Monitor (HUMO) and in the Goods Movements for Handling Units and Materials (VLMOVE) transaction.
SPRO –> Logistics – General –> Handling Unit Management –> Basics –> Technical Basics –> Maintain Goods Movements for Handling Unit Stock-Posting

2.2.2.4 Scenario 3 (Outbound) : Picking the HU for the OBD with Goods issue
In this scenario we will test a end to end outbound cycle.
a) Picking of HU for Outbound Delivery
Created a sales order and OBD. In the OBD input picking qty & batch and click on Pack
Please note that sales order & OBD is for 1 EA and HU we will try to pick is of 7 EA.
Input the HU to be picked and click on Pack as shown below

Unpack the material through HU02 to PP1B SLOC . Then again packed the material in 1 qty to PP21 SLOC

Now go to packing dialogues of VL02N and try to pick this newly packed 1 EA HU 86543210300000448
HU is picked now

HU is picked now. Execute the Post goods issue of outbound delivery.
Please see the below post for PGI related errors (SD-FI integration) & resolution
SAP SD FI Integration and Account Determination
Execute the Post goods issue of outbound delivery
PGI is done. Material & Accounting Document is generated

Check Accounting Document

2.3 Option 3 -WM Managed SLOC
In this option stock is managed further to SLOC level up-to the warehouse bin level. Storage location is assigned to plant & warehouse.
in option 3, there are further two options to manage the stock
- Stock is managed in Storage Units (SU). SUs are valid only inside the warehouse
- Stock is managed in Handling Units . HUs are valid inside as well as outside the warehouse.

2.3.1 Option 3.1 – Stock is managed in Storage Units (SU)
in this option, stock is managed in SUs inside the warehouse. You need to declare warehouse and required storage types as SU managed in configuration. A SU is created through an internal SU number range. SU exists only inside the warehouse and lost as soon as material is out from the warehouse.
2.3.2 Option 3.2 – Stock is managed in Handling Units (HU)
A Handling Unit (HU) becomes Storage Unit (SU) in warehouse with same or different number.
In this option, We manage the stock in HUs. A handling unit is nothing but a packing material and material to be packed combined. We can configure internal HU numbers or a SSCC (Serialized Shipping Container Code) according to EAN128.