
A storage location is an organizational unit that helps differentiate stocks of materials within a plant.
The following functions are carried out at storage location level:
- Inventory management on a quantity basis
- Physical inventory within materials management and inventory management
As with all organizational elements, storage locations are configurations that are defined in Customizing. A storage location in a plant is defined using a unique four-character alphanumeric key.
Organizational levels are assigned to each other in order to create the enterprise structure. Therefore, a client may contain several company codes, and a company code may contain several plants. However, a plant can only belong to a single company code in the SAP S/4HANA application.
Note
The plant key is unique to a client, and a plant can only belong to one company code. Therefore, by specifying the plant, you simultaneously specify the company code.You can assign several storage locations to a plant. However, when you assign a certain storage location to a plant, it forms a compound key. Storage locations are defined and thereafter assigned to a plant.
The storage location key can be unique only within a plant. Within a client, you can use the same key for different storage locations. You can assign several storage locations to a plant. However, when you assign a certain storage location to a plant, it forms a compound key. Storage locations are defined and thereafter assigned to a plant. The storage location key can be unique only within a plant. Within a client, you can use the same key for different storage locations.
Note
When you specify a storage location, specify the plant as well.Storage Location Address

When creating a storage location, you define it with a unique four-character alphanumeric value so that the company can create a sufficient number of storage locations for each facility.
- A subcontractor location where inventory is held
- A company facility with a different shipping address
Companies may need to define a different address for each storage location because of the following reasons:
- You can store a material at several storage locations.
- To store data specific to each storage location, you must create the relevant material master record (or extend an existing material master record) for each location.
- If the material master record already exists, you can extend it to include data specific to a storage location either manually or automatically.
The material master record is automatically extended the first time a goods receipt is posted for the material. Data specific to the storage location is updated in the material master record. Therefore, you can configure the system in Customizing by choosing Materials Management → Inventory Management and Physical Inventory → Goods Receipt → Create Storage Location Automatically.
Note
To create storage locations with reference to a plant, in Customizing choose Enterprise Structure → Definition → Materials Management → Maintain storage location.Creating a Storage Location
If you want to post a goods receipt without maintaining the storage location view of the material master record in advance, allow automatic creation of storage location data for goods receipts.
To enable automatic creation of storage location data, perform the following steps while configuring the system:
- Allow automatic creation per plant.
- Allow creation of storage location data for each movement type.
Note
The storage location data is only created if the quantity is posted to standard storage location stock. It is not created for receipts into a special stock, such as sales order stock.
The standard system is set in such a way that the storage location data is created automatically for all types of receipt, such as goods receipt with or without reference, stock transfers, initial entry of stock balances, and reversal of goods issues.
To manually create storage locations, perform the following steps:
- On the SAP Easy Access screen, chooseLogistics → Production → Master Data → Material Master → Other → Enter Storage Locations (transaction MMSC).
- Enter the storage locations for a material master record collectively because it is less time-consuming.
Once a material exists in a storage location, a storage location view is available in the material master. In addition, you can edit settings for material requirements planning (MRP) at storage location level in the MRP 4 view.