Processing Goods Receipt

The process starts in the ERP system with a purchase order. A purchase order can be created based on a purchase requisition, but it is also possible to create the purchase order directly, without reference to another document.

In the purchase order, you order a quantity of a material for your plant and storage location.

For processing the goods receipt of the material in a decentral warehouse management system, you require an inbound delivery. This can be created manually when the goods arrive at your warehouse. The process which allows better planning is by receiving an Advanced Shipping Notification (ASN) document from your vendor. This is usually sent using EDI (Electronic Data Interchange). When the ASN arrives, the system generates an inbound delivery document.

When you create the purchase order, you must define whether you expect a shipping notification from your supplier or not. Define this using a confirmation control key (in our training system this is "ANLI") which is set at each purchase item level. You can predefine the control key either in shipping customizing, the information record, or in vendor master data.

If the confirmation control key is set, an inbound delivery document must be created. The inbound delivery is based on the purchase order. If the confirmation control key is set but the inbound delivery not yet created, it is not possible to post a goods receipt.

The inbound delivery contains information from the purchase order, including the:

• Material to arrive
• Quantity of that material to arrive
• Plant and storage location

Inbound Delivery Notification and Inbound Delivery

The ERP inbound delivery is copied into the SAP EWM Inbound Delivery Notification. It contains the same information and it has the same basic structure as the inbound delivery in the ERP system. The next document, the Inbound Delivery, is created automatically by the Post Processing Framework (PPF). The PPF is the follow-up model of ERP's output control. PPF provides tools to plan, start, and monitor actions such as printing and sending emails and faxes, starting workflows, or starting BAdIs (Business Add-Ins).

• In SAP EWM, the ERP inbound delivery is stored as an Inbound Delivery Notification. In embedded EWM this inbound delivery notification does not exist, in a decentral EWM from SAP EWM 9.5 on, you can choose to skip the inbound delivery notification. In these cases the inbound delivery is created directly.
• The Inbound Delivery document number is generated with an SAP EWM-specific number range. In embedded EWM or in a decentral EWM based on SAP S/4HANA, it is possible to re-use the ERP delivery number for the SAP EWM inbound delivery. While this is practical for embedded EWM, this might create issues if your decentral EWM is connect to more then one ERP backend (and the number ranges in these systems overlap).
• Any changes to the Inbound Delivery document are sent back to ERP. An Inbound Delivery document with status of Execution completed is the basis for a Proof of Delivery document in ERP.
• The Inbound Delivery Notification and Inbound Delivery documents are for a single warehouse. The Inbound Delivery document can also be used for forecasting the WM capacity load. SAP EWM processing is done from the Inbound Delivery document.
• The Inbound Delivery document is also called a Warehouse Request and all subsequent actions in the warehouse are based on that document.

A warehouse request enables the processing of warehouse activities. Warehouse activities are:

• Picking
• Putaway
• Posting changes
• Stock transfers (within warehouse)
• Scrapping

These are performed using warehouse tasks and these documents are created with reference to the respective Warehouse Request. Using the Warehouse Management Monitor, you can display and supervise all documents that are based on a Warehouse Request.

When a Warehouse Request is created, the delivery data from ERP is mapped, SAP EWM-specific data is determined, and a Warehouse Process Type is assigned. The Warehouse Process Type controls the processing of a warehouse task in SAP EWM.

When the warehouse request (inbound or outbound) is created or changed, the system automatically adds data. If a packaging specification exists, SAP EWM can automatically create handling units for inbound deliveries. You can determine packaging specifications using the condition technique.

During the creation of an inbound delivery with a corresponding handling unit, there is a check to determine if the handling unit is permitted in the warehouse. If a product is batch-managed, batches can be created.

In the ERP Inbound Delivery, you can create a handling unit (HU) manually in the packing transaction or your supplier tells you the packaging data in the shipping notification. The HU number is transferred to SAP EWM and is visible in the HU tab in the inbound delivery notification and in the inbound delivery.

You can putaway this HU. Customizing of the destination storage type defines whether you can or must putaway packed or unpacked products.

Goods receipt posting is triggered from the SAP EWM system to the ERP system. In the ERP system, the inventory management document, together with the required financial document, must be created.

The goods receipt posting can be the first step when processing an inbound delivery, it can be done in the Warehouse Management Monitor, or it can be done automatically when confirming the warehouse task for putaway. Additionally, there is a separate transaction to post the physical goods receipt. That transaction is ideal for use at a warehouse door. Various objects are available for posting the goods receipt, for example:

• Transportation unit
• Handling unit
• Product number
• Deliveries

Warehouse tasks are used to execute good movements in the warehouse, and these movements may be physical or just stock changes.

Warehouse tasks are needed for:

• Picking

• Putaway

• Internal movements

• Posting changes

• Goods receipt postings

• Goods issue postings

The warehouse task is a document that tells the warehouse worker what to do, for example, move x pallets of product y to storage bin abc.

In a putaway or picking process, or for posting changes, the basis for the warehouse task is the warehouse request.

For each warehouse request item, the warehouse task is created either manually or automatically by the Post Processing Framework (PPF).

In cases where warehouse stock must be transferred from one bin to another, it is possible to create a warehouse task without any reference document.

When the warehouse task is executed, the warehouse task must be confirmed. During confirmation, the warehouse worker confirms that the correct quantity of the correct product arrived at the correct destination bin.

Warehouse Task Creation for Putaway

If a product is moved from the bin, where goods receipt was posted, to the final destination bin in the warehouse with a single step, the associated document is a Product Warehouse Task. It contains the required information, for example, the Warehouse Process Type (WPT) to use, the source bin, and the destination bin. That is a simple case. The situation can be more complex, for example, it may be necessary to repack the goods at a packaging work station before moving the goods to the destination bin. In this case a combination of product and HU warehouse tasks is used for the complete movement. The HU warehouse task contains the same information as the product warehouse task, but it is used for packed products and when movements are done with several process steps.

Note

The important part in the previous sentence is "and when movements are done with several process steps". A product warehouse task can also move a packed product, including the HU information.

Warehouse tasks are grouped (or bundled) in a warehouse order. The warehouse order represents an executable work package that a warehouse employee should complete within a specific time frame. It contains one or more warehouse tasks or physical inventory items.

Warehouse tasks are created when products are received, issued, moved, or counted. Multiple warehouse tasks can be grouped together into warehouse orders and SAP EWM makes them available for processing. For example, in the goods receipt process, warehouse tasks are created to move the products into the warehouse and to their destination storage bins. SAP EWM groups these tasks together, according to warehouse order creation rules, to form warehouse orders.

Warehouse Order Creation Rules

Warehouse orders are created as follows:

1. Warehouse tasks are grouped together according to the activity area in which they are sorted, using predefined rules.
2. For each activity area, one or more warehouse order creation rules are defined.
3. The warehouse order creation rules are applied until each warehouse task is assigned to one warehouse order. Filters and limits are used as necessary.
4. If rules cannot be used, an SAP-supplied standard rule is applied.

Search Sequence for Order Creation

During the grouping of warehouse tasks into warehouse orders, SAP EWM uses the search sequence for warehouse order creation, for example, rule A, then rule B, then rule C. SAP EWM works through the warehouse order creation rules in sequence, as defined for each activity area.

• Filters and limit values: Control which warehouse tasks, and how many warehouse tasks, SAP EWM groups into a warehouse order.
• Sort rules: When SAP EWM applies a warehouse order creation rule, it sorts the warehouse tasks according to the sort rule. Individual warehouse order creation rules can contain sort rules.

In addition to sort rules and filter and limit values, warehouse order creation rules can also contain parameters for packing and consolidation groups.

• Consolidation groups: During warehouse order creation, consolidation groups determine warehouse tasks that are permitted to be bundled together.

In order to be processed, every warehouse task has to be assigned to a warehouse order. If SAP EWM has applied all user-defined warehouse order creation rules for the search sequence, and unassigned warehouse tasks still remain, the system uses a remainder rule.

• Remainder rules: Create warehouse orders for any remaining warehouse tasks. SAP EWM summarizes these warehouse tasks per activity area, queue, and consolidation group.
• Standard rules: Group tasks per activity area, queue and delivery. If the system cannot find a warehouse order creation rule for an activity area, SAP EWM applies this rule.

One of the simplifications in SAP S/4HANA embedded EWM is the option to execute the goods receipt process without an inbound delivery in ERP and EWM (synchronous goods receipt). For a goods receipt posting directly in Inventory Management, the system then automatically creates the putaway warehouse task in EWM.

The following are some of the goods movements that can be posted using synchronous goods movement:

• Goods receipt with the Post Goods Movement app for manufacturing orders and for purchase orders
• Cancellation of goods receipt for purchase orders
• Return products to the vendor as a return delivery referencing previous goods receipts
• Confirmation of manufacturing orders