Table of Contents
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).
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)

In addition to storage location configuration, HU related configuration also needs to be done. We have the option of generating either a internal HU number or SSCC according to EAN128. All the stock movement/posting changes happens through deliveries.
2.3 Option 3 -WM Managed SLOC with HU Management
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.
You can learn everything about SAP HU and Barcode here
3. SAP Configuration of SU vs HU
Now we will configure all the three options explained above in SAP as per below picture

3.1 SAP Configuration Option 1 -Standard IM Managed SLOC.
This is a simple & straight scenario.
3.1.1 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
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
Once process is completed as per steps given in above link, stock is present on Storage location as per option 1


3.2 SAP Configuration Option 2 -IM Managed SLOC with HU Management
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. We will use the below SLOC for this in Plant PA10

Crete a PO and Inbound delivery to receive the stock on PA21 SLOC
3.2.1 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
To Pack in IBD we need HU Configuration
3.2.2 Option 2 SAP Config – Handling Unit Configuration
Handling unit is a combination of packaging material & material to be packed

3.2.2.1 Packaging Material Type
We will configure two packaging material type as below
- Packaging Material Type SCAR -Will generate SSCC Carton Standard
- Packaging Material Type SPAL -Will generate SSCC Pallet Standard
a) SCAR – SSCC Carton
SPRO –> Logistics – General –> Handling Unit Management –> Basics –> Define Packaging Material Types

b) SPAL – SSCC Pallet

c) 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
3.2.2.2 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

3.2.2.3 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

3.2.2.4 Packaging Material
As per definition provided by SAP- “Packaging materials are intended to enclose or hold together the materials that are to be packed. In other words, the material that is to be packed can be packed into or onto the packaging material. The packaging material can be a load carrier. The most important packaging materials include crates, boxes, containers, wire baskets, and pallets”

We will create two packaging material
- Packaging Material CARTONSTD -CARTON WITH SSCC GENERATION
- Packing Material PALLETSTD – PALLET WITH SSCC GENERATION
a) Packaging Material CARTONSTD -CARTON WITH SSCC GENERATION
TCode – MM01, Select Material type as “VERP” – Packaging Material

Packaging material type Standard Carton “SCAR” assigned to packaging material “CARTONSTD”

b) Packaging Material PALLETSTD – PALLET WITH SSCC GENERATION
T-Code – MM01, Select Material type as “VERP” – Packaging Material

3.2.2.5 Material To be Packed or Main Material
Now we will create the material to be packed or main material. We call it shipping material also.
for clarity & Simplicity we will name it as Product-TBP
a) Material “Product-TBP” Creation

b) Material “PRODUCT-TBP” packaging level
- 1 “CARTON” of Material “PRDUCT-TBP” = 6 “PC”
- 1 “PALLET” of Material “PRDUCT-TBP” = 8 “CARTON”
- 1 “PALLET” of Material “PRDUCT-TBP” = 48 “PC”

Testing-1 of Option 2
Please note that we can receive HU from vendor with SSCC number without doing any further configuration of HUs on storage location. Only Config required is SSCC generation & packaging material type configuration. In this case it is equal to option-1 . We have already created a inbound delivery to test this. Now try to pack in Inbound Delivery.
Created a PO & IBD and tried to pack the material “PRODUCT-TBP” into [packaging material “PALLETSTD

ERROR LE_SHP_BF_EAN128022
This error is due to unavailability of configuration of SSCC Generation Acc. to EAN128
Configuration of SSCC Generation Acc. to EAN128
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

Now try to pack the material “Product-TBP” into a full Pallet (48 PC) and PGR

Check the stock through MMBE.


Since we have not configured our SLOC PP21 as “HU Required” SLOC till yet so HU received on this SLOC is “Without Inventory Management” and we can transfer partial qty to other SLOC without any HU related system restriction just like a normal stock managed in PC.

Now out of full pallet (48 PC) received partial is present in PP21 SLOC & partial is transferred to PP1A SLOC

VLMOVE
To move the full HU between HU-managed storage locations and non-HU storage locations we can use VLMOVE
HUMO
To move the full HU between HU-managed storage locations and non-HU storage locations we can use HUMO
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

Picking of HU for Outbound Delivery
Created a sales order and OBD. In the OBD input picking qty & batch and click on Pack

Input the HU to be picked and click on Pack as shown below

HU is picked now. Execute the Post goods issue of outbound delivery. We received the error
ERROR M8147 -Account determination for entry PPIN GBB not possible

Configure GBB , VAX Key to resolve this error

Execute the Post goods issue of outbound delivery. We received the below error
Error NR751

Number Range 49 Maintenance for object RF_BELEG

Execute the Post goods issue of outbound delivery
PGI is done. Material & Accounting Document is generated

Check Accounting Document

Option 2- SAP Config 2.1 -HU Requirement for Storage Location PP21
When you set the HU requirement indicator for a storage location, you 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.
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

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.
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
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

Delivery Type Determination
SPRO –> Logistics – General –> Handling Unit Management –> Basics –> Delivery –> Delivery Type Determination
Delivery type determination for inbound delivery

Delivery type determination for Outbound delivery

Delivery type determination for Posting Change

Testing-2 of Option 2
Let’s receipt the material through 561 movement type on IM HU SLOC PP21
ERROR M8147 -Account determination for entry PPIN GBB not possible

Configure GBB , BSA Key to resolve this error

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

Now again try to receive material through 561 movement type, system has created IBD successfully

System will throw the error if we try to execute the goods receipt without packing for this IBD as SLOC

Do the packing in IBD. System will propose allowed packaging material. Choose “PALLETSTD” as we want to generate PALLET. HU number should be generated as per SSCC/EAN128 according to the packaging material type “SPAL” assigned to our packaging material “PALLETSTD”

GR is done successfully now and HU is received in stock

SAP Configuration Option 3 -WM Managed SLOC with HU Management
Further Reading
- Configure SAP S4 HANA SD Output Tax in 6 Quick Steps
- SAP SD FI Integration and Account Determination
- An Ultimate guide to Sales Order in SAP S4 HANA SD
- All About Purchase Orders in SAP MM
- How to Configure Logistics Invoice Verification in SAP S4 HANA
- Ultimate guide to SAP S4 HANA MM Pricing Procedure