4    SAP Extended Warehouse Management

In this chapter, we'll highlight the business processes enabled by SAP S/4HANA’s warehouse management functionality in the context of both traditional SAP ERP Warehouse Management (SAP ERP WM) and embedded SAP Extended Warehouse Management (EWM).

With the 1610 release of SAP S/4HANA, SAP has introduced the embedded Extended Warehouse Management solution, including the advanced warehouse functionality in the core SAP S/4HANA solution instead of the interfaced SAP Supply Chain Management (SAP SCM) solution offered previously. The SAP S/4HANA solution also includes the traditional SAP ERP Warehouse Management functionality offered in the SAP Business Suite.

The embedded EWM functionality offered in SAP S/4HANA is a major functionality gain in the SAP S/4HANA offering. This new functionality offers a best-of-breed warehouse management solution in the SAP S/4HANA core product offering.

This chapter begins with an overview of the warehousing process as envisioned with SAP S/4HANA and explains important master data simplifications. The chapter then explores the warehousing functionality, calling attention to places where substantial improvements have taken place.

This chapter focuses primarily on functionality and architectural changes from the embedded EWM offering in SAP S/4HANA. It also discusses functionality that is new in the SAP S/4HANA offering instead of explaining the core EWM functionality that hasn’t changed with the SAP S/4HANA offering.

4.1    Traditional Warehouse Management in SAP S/4HANA

The traditional SAP ERP Warehouse Management (SAP ERP WM) module offered in SAP Business Suite has been moved forward into the SAP S/4HANA platform. It’s only supported via the on-premise offering, not through a cloud-based offering. The functionality is supported with very little change from the SAP Business Suite offering. Ultimately the SAP ERP WM functionality is being migrated to the SAP EWM module, with a future end-of-service date for the traditional SAP ERP WM functionality in SAP Business Suite.

The existing standard SAP ERP WM transactions and functionality are supported with very little change. This section will show the traditional SAP ERP WM processes and menu paths that exist in SAP S/4HANA.

4.1.1    Inbound Processing in SAP S/4HANA Warehouse Management

The inbound process in Warehouse Management in SAP S/4HANA has the same transactions and the same integration with procure-to-pay for receiving and inbound delivery or advanced shipping notification (ASN) creation.

The transaction grouping for inbound warehouse management functionality can be found via the following menu path: LogisticsLogistics ExecutionInbound ProcessGoods Receipt for Inbound DeliveryPutaway (see Figure 4.1).

Menu Path for the Inbound Warehouse Management Transactions in SAP S/4HANA

Figure 4.1    Menu Path for the Inbound Warehouse Management Transactions in SAP S/4HANA

4.1.2    Outbound Processing in SAP S/4HANA Warehouse Management

The existing Warehouse Management processes in SAP S/4HANA include integration with order-to-cash for outbound delivery processing.

The transaction grouping for the outbound Warehouse Management functionality can be found via the following menu path: LogisticsLogistics ExecutionOutbound ProcessGoods Issue for Outbound DeliveryPicking (see Figure 4.2).

Menu Path for Outbound Warehouse Management Transactions in SAP S/4HANA

Figure 4.2    Menu Path for Outbound Warehouse Management Transactions in SAP S/4HANA

4.1.3    Internal Processing in SAP S/4HANA Warehouse Management

The Warehouse Management internal processing functionality in SAP S/4HANA includes physical inventory processing, Warehouse Management Radio Frequency (RF) functionality, stock transfers, and posting changes.

The transaction grouping for the internal Warehouse Management functionality can be found via the following menu path: LogisticsLogistics ExecutionInternal Whse Processes (see Figure 4.3).

Menu Path for Internal Warehouse Warehouse Management Transactions in SAP S/4HANA

Figure 4.3    Menu Path for Internal Warehouse Warehouse Management Transactions in SAP S/4HANA