Fig. Illustrate the basic organization structure

Integration settings for Organization structure

Fig. Illustrate the configuration settings required for Org Structure

ERP Settings

1. Define Plant

In SAP, a Plant serves as a crucial organizational unit. It can represent various facilities, such as a production site, warehouse, distribution center. A Plant plays a pivotal role across several SAP modules, including Materials Management (MM), Production Planning (PP), and Sales and Distribution (SD). It is integral to processes like procurement, inventory management, production, and order fulfillment. 

Assigning a Plant to a single company code ensures that all transactions and data are systematically organized and accounted for within the specific business unit.

PATH: IMG > Enterprise Structure > Definition > Logistics - General > Copy, delete, check plant

Fig. Maintain Plant

2. Define Storage Location

In SAP, a Storage Location represents a specific area within a plant where materials are physically stored. It enables organizations to manage inventory at a more granular level, providing visibility and control over material quantities and locations. Each storage location is uniquely assigned to a plant and plays a crucial role in inventory management, stock movements, and material planning. When defining a storage location in SAP, businesses can structure their warehouses or storage facilities based on operational needs, such as raw materials, finished goods, or quality inspection areas. 

In SAP EWM, each storage location is linked to a specific stock type by assigning it to an availability group. This availability group is then mapped to the corresponding stock type, ensuring accurate stock management.

PATH: IMG > Enterprise Structure > Definition > Materials Management > Maintain storage location

Fig. Maintain Storage Location

3. Define ERP warehouse: It represents the EWM warehouse number within the ERP system. It is a logical name used to map the EWM warehouse to the plant and storage location. It does not store any master or transactional data. 

• You can assign multiple Plant and storage location unique combinations to one warehouse.
• Material in the Plant is determined in the EWM warehouse by Party Entitled to Disposed. 

PATH: IMG > Enterprise Structure > Definition > Logistics Execution > Copy, Delete, and Check Warehouse Number

Fig. Define ERP warehouse number

4. Assign Warehouse Number to Plant and Storage Location (Activation of SLoc as EWM)

To ensure a storage location within a plant as EWM-managed in Material Management, you must first assign the plant and storage location to the corresponding ERP warehouse number.

Within a plant it is possible to assign several storage locations to the same warehouse number in Logistics Execution

PATH: IMG > Enterprise Structure > Assignment > Logistics Execution > Assign Warehouse Number to Plant and Storage Location

Fig. Assign ERP warehouse number to Plant and Storage location

5. Configure SAP EWM-Specific Parameters: 

In this activity, we configure the storage location as EWM-managed, define the delivery distribution process, and establish communication with external warehouse management systems.

• External WM: This define the warehouse is Decentral WM OR embedded OR local WM 

Parameter value: EWM (Extended Warehouse Management) 

• Distribution Mode: This ensure the inbound / outbound deliveries are distributed upon creation and no need to distribute them from monitor.

Parameter value: Distribution immediately at Document Creation

• Communication to External WM:  Use communication method qRFC to integrate an SAP EWM system   
  • Parameter value: Queued and serialized Asynchronous

PATH: IMG > Integration with Other SAP Components > Extended Warehouse Management > Basic Settings for EWM Linkage > Configure SAP EWM-Specific Parameters

Fig. Configure SAP EWM specific parameters

EWM Settings

1. Define EWM warehouse: In Extended Warehouse Management, a warehouse complex is mapped as a warehouse number, which you can use to identify the warehouse complex.

• Stock is managed on a quantity basis and not on a value basis.
• Store warehouse specific products data

PATH: IMG > SCMEWM > EWM > Master Data > Define Warehouse Numbers

Fig. Assign Warehouse Number

2. Assign Warehouse Numbers

Assign Supply Chain Unit to warehouse. (Mandatory)

Assign Default Party Entitled and Custodian. (Optional)

PATH: IMG > SCMEWM > EWM > Master Data > Assign Warehouse Numbers

• Master Data required to assign warehouse

Supply Chain Unit:  A supply chain unit is used to map the business roles of an organization unit. Supply chain unit must be assigned to embedded EWM warehouse.
INV - WAREHOUSE
DOOR - DOOR
SO - SHIPPING OFFICE
RO - GOODS RECEIPT OFFICE

Party Entitled to Dispose: An organization, defined as a business partner, that is entitled to dispose of stock. Usually this is the plant in which the stocks are planned, and in which the ATP check is performed.

If your warehouse number is linked to multiple ERP plants: Do not set a default entitled. Enter the entitled manually.

Fig. Assign warehouse number

3. Define Warehouse Number Control

Define the basic data for a warehouse number such as 

• Weight unit
• Volume unit
• Time unit
• Length unit

Fig. Define control parameters to warehouse number

4. Assign Warehouse Numbers from Logistics Execution

PATH: IMG > SCMEWM > EWM > Interfaces > ERP Integration > Goods Movements > Map Storage Locations from ERP System to EWM

Fig. Map ERP warehouse number to EWM

5. Configure Availability Group for Putaway

Availability group represent the Plant and Storage location and assigned to all stock types of the warehouse.

PATH: IMG > SCMEWM > EWM > Goods Receipt Process > Configure Availability Group for Putaway

Fig. Define availability group

Fig. Define Non location stock type

Fig. Define location dependent stock type

6. Map Storage Locations from ERP System to EWM

In this activity, you assign the storage location to warehouse and availability group, Which is then mapped to stock type so, each plant and storage location combination represents separate stock type in the warehouse.

You can assigned multiple combination of plant and storage location to separate stock type from same source system (S/4 Logical System).

It is possible to map the same plant and storage location from two different logical systems to a single availability group. However, transactions from each logical system can be easily distinguished by the Business System Group (BSG) assigned to that specific logical system.

PATH: IMG > SCMEWM > EWM > Interfaces > ERP Integration > Goods Movements > Map Storage Locations from ERP System to EWM