BBP SAP WM Implementation Luminous

Business Blueprint Document
SAP WM Implementation for Luminous

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SAP WM IMPLEMENTATION FOR

LUMINOUS POWER TECHNOLOGIES LTD.
DRAFT VERSION
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TABLE OF CONTENTS
1 EXECUTIVE SUMMARY ..................................................................... 4

1.1 Background .................................................................................. 4
1.2 Business Blueprint Overview ........................................................... 4
1.3 Warehouse Management ................................................................ 5
1.4 Implementation Scope ................................................................... 7
1.4.1 Geographical Coverage ...................................................................... 7
1.4.2 Functional Scope ............................................................................... 7
1.5 Module Integration ........................................................................ 8
1.6 Interface Requirement ................................................................... 8
2 ORGANISATION STRUCTURE ........................................................... 9
3 ORGANIZATIONAL ELEMENTS........................................................ 10
3.1 Plants ........................................................................................ 10
3.2 Storage Locations ........................................................................ 10
3.3 Warehouse Number ..................................................................... 11
3.4 Storage Types ............................................................................. 11
3.5 Storage Section ........................................................................... 13
4 MASTER DATA................................................................................ 14
4.1 Material Master ........................................................................... 14
4.2 Storage Bin Master ...................................................................... 15
5 BUSINESS PROCESSES .................................................................. 16
5.1 Warehouse Material Put-away ....................................................... 16
5.1.1 Purpose .......................................................................................... 18
5.1.2 Master Data .................................................................................... 18
5.1.3 Features with reference to CIL .......................................................... 18
5.1.4 Business Process ............................................................................. 18
5.2 Warehouse Material Picking .......................................................... 19
5.2.1 Purpose .......................................................................................... 19
5.2.2 Master Data .................................................................................... 21
5.3 Warehouse Material Transfer posting ............................................. 22
5.3.1 Purpose .......................................................................................... 22
5.3.2 Master Data .................................................................................... 23
5.4 Physical Inventory ....................................................................... 24
5.4.1 Purpose .......................................................................................... 25
5.4.2 Master Data .................................................................................... 26
5.5 Movement types .......................................................................... 26
6 MODULE INTEGRATION ................................................................. 28
7 INTERFACE REQUIREMENT ............................................................ 29
8 STANDARD INFORMATION SYSTEM ............................................... 29
9 ANNEXURES................................................................................... 32
9.1 Master Data Templates................................................................. 32
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9.2 GAPS ......................................................................................... 32

9.3 Open Point .................................................................................. 32
9.4 Assumptions ............................................................................... 32
Abbreviation List
1. MM - Materials Management
2. WM - Warehouse Management
3. SD - Sales & Distribution
4. PP - Production Planning
5. LE - Logistic Execution
6. CSBP - Current State Business Process
7. FSBP - Future State Business Process
8. EA - Each
9. Ltd - Limited
10. PO - Purchase Order
11. SO - Sales Order
12. GR - Goods Receipt
13. GI - Goods Issue
14. TR - Transfer request
15. TO - Transfer order
16. w.r.t. - With respect to
17. WH - Warehouse
18. T Code - Transaction Code in SAP
19. SU - Storage Unit
20. SUT - Storage Unit Type
21. UoM - Unit of Measure
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1 EXECUTIVE SUMMARY
1.1 Background
Luminous Power Technologies Ltd. is focusing its concentration on traceability of the materials in their
warehouse operations. They wants to implemented warehouse Management in their warehouses. And also they
wants to integrate one third party application (developed by BCIL). For Managing all the transaction in Third party
application and record all the transaction through RFC connections in SAP.
1.2 Business Blueprint Overview

This document summarizes the findings of the Techfour Engineering Solutions Pvt. Ltd. and
Luminous Team, with respect to SAP WM Implementation in Luminous Power Technologies
Ltd.
The information was gathered through various activities carried out during different phases
of projects i.e. Review of Physical warehouse, Review of business processes, Business
procedures, Documentation and Relevant reports.
The purpose of Business Blueprint document is to move forward with the Implementation of
Luminous SAP R/3 WM system in Tauru Plant. At the conclusion of the blueprint, the
Techfour Engineering Solutions Pvt. Ltd. consultants determined the SAP functionality
required to run the luminous business.
The Blueprint and its associated appendices present a summarized perspective of all
functional business processes which will be implemented. As such, the Blueprint document
will serve the dual role of both official project scope as well as system acceptance criteria.
The body of this document describes the Organizational Structure, Master Data, and R/3
functional process flows to be implemented at Luminous Tauru Plant. Generally,
requirements that can be met using standard R/3 functionality through routine
configuration tasks are not explicitly documented.
The Blueprint reiterates the R/3 organizational structures that have been identified and will
serve as the basis for the initial configuration activities. No significant configuration and
customization choices have been identified that will prevent the future implementation of
additional capabilities within the R/3 environment.
The information gathered and documented in the Blueprint is sufficient for the team to go
forward into the Realization phase. However, it is critical that both Techfour and Luminous
team agree on the scope of the project as presented in this document. Acceptance - by
both teams - is required to move the project into the next phase.
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1.3 Warehouse Management
Warehouse Management module is used for mapping the material storage Business processes used by Luminous,
for Planning, Receipts, Issues, Transfer Posting, Physical Inventory.
It is sub divided into

Strategies
Activities
Storage units
Hazardous Material
Planning & Monitoring
Interfaces
Bin Management
Integration with third party application
Strategies:
The tasks of the SAP WM component are as follows:
In this, settings are made related to strategies to receive proposal from the SAP system. With help of these
strategies the SAP system can use available transfer & warehouse capacity optimally.
For strategies, the following procedures are available:
Put-away strategies
Picking Strategies
Few other settings required before activating the actual put-away & picking strategies as listed below.
1. Activate Storage Type Search

In this configuration setting we try to maintain storage type search indicators with help of which SAP warehouse
management system can search in which storage type material can be place or from which storage type material
can be picked.
2. Activate Storage Section Search
In this configuration setting we try to maintain storage section indicators with help of which SAP warehouse
management system can search in which storage section of the storage type material can be place or from which
storage section of storage type material can be picked.
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Activities:
This component deals with the following tasks.
Transfer
Confirmation
Define Print Control
Physical Inventory
In transfer process we configure mainly the requirement type, shipment type & movement types.
Requirement type is category of the originating document in IM against which the WM document needs to
be created.
Shipment type is the type of transfer happening in the warehouse like movements important for materials
& movement concern for warehouse.
Interfaces
The Warehouse Management system (WMS) is fully integrated into the SAP system. Business
processes, which you trigger in other application components, lead to physical goods movements in your
warehouse. You organize, control and monitor these goods movements with the WMS.
Interface to Inventory Management (MM-IM)
You trigger most activities in the WMS via Inventory Management, including most goods receipts, goods
issues and posting changes.
Storage Unit Management
Storage unit (SU) management in Warehouse Management (WM) enables you to optimize warehouse
capacity and control material flow by utilizing storage units within the warehouse.
A storage unit is a logical grouping of one or several amounts of material such as a pallet or a container
that can be managed within a warehouse as a unit that belongs together. Storage units can be either
homogeneous (containing one material item only) or mixed (containing two or more material items).
All storage units, whether the materials are stored on standard pallets, wire baskets or other containers,
are assigned an identifier a number which is maintained in the system as the storage unit number.
Therefore, it is possible at any given time to know where each storage unit is located in the warehouse
complex, the amount of material contained in it, and which operations have been processed or planned
for it.
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1.4 Project Scope
1.4.1 Geographical Coverage
The following units are within the scope of SAP WM Implementation at Luminous:
Plant Warehouse Dedicated Units

TAURU TAURU This site is currently
a Central Warehouse
1.4.2 Functional Scope
TAURU SAP WM Implementation scope for warehouse management module under logistics
is as follows:
Warehouse Management
Warehouse
o Transfer Requirement
o Transfer Order
o Transfer posting
o Storage type, Storage section & Bin determination
o Put-away & Picking Strategy
o Master Data
Warehouse Control
Storage type
Storage section
Bin
Activities
o Requirement type
o Shipment type
o Warehouse movements
o Printer setting
o Print form & labels
Physical Inventory
o Phys. Inventory Doc.
o Inventory Count
o WM Difference
o IM Difference
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Integration with Third Party Application (developed by BCIL)

o Master data flow( Material, Plant, Vendor, Material Plant combinations)
o Material Receiving from internal source
o Material Receiving from external Source
o Internal Movement
o Dispatch to other Plants
o Sale
o Sales Return
o Issue on Returnable Gate Pass
o Receiving against returnable gate pass
o Physical Inventory Process
1.5 Module Integration
Warehouse Management is integrated with MM, SD, QM & PP modules. For CIL SAP WM integration with WM-QM
& WM-PP is not in scope of this project.
MM Interim area for the material receipt, Integration with good receipt & transfer
posting material document
SD Interim area for the material issue, Integration with good issue material
document
1.6 Interface Requirement
Integration of SAP WM system with third party Application system (Developed by

BCIL) project. Scope of this integration as below:
1. Master data flow( Material, Plant, Vendor, Material Plant combinations)

2. Material Receiving from internal source
3. Material Receiving from external Source
4. Internal Movement
5. Dispatch to other Plants
6. Sale
7. Sales Return
8. Issue on Returnable Gate Pass
9. Receiving against returnable gate pass
10.Physical Inventory Process
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2 ORGANISATION STRUCTURE
Current Organisation Structure
Proposed Organisation Structure
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3 ORGANIZATIONAL ELEMENTS
3.1 Plants
Plant is an organizational unit within material management & is assigned to the warehouse with unique combination
of the plant & storage location.
The following plant is considered for Luminous WM Implementation:
Plant Plant Description

1021 TAURU Central Warehouse
3.2 Storage Locations
A Storage location is an organizational unit within material management & is assigned to the warehouse with unique
combination of the plant & storage location.
The Storage locations considered for Luminous WM Implementation:
Plant Plant Description Storage location Storage location

Description
Company Code LPTL
1021 Tauru To be identified To be identified
First two digits indicate the Site or Location for the ease of Identification. Additional storage locations can be added
if required.
Negative stocks will not be allowed at any of the above storage locations.
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3.3 Warehouse Number
Warehouse Number
A warehouse complex is represented in the Warehouse Management system as a warehouse number that is used
to identify a complex warehouse setup. The physical location is usually decisive for assigning the definition of the
warehouse number. A warehouse number group together storage types and storage bins that are organized and
maintained as a complete unit.
A warehouse number has the following characteristics:
A warehouse number does not have an address, but a short descriptive text.
It is possible to store material data that is specific to a warehouse number.
Within each warehouse number, the stock figures are managed as quantities, not as values.
Within a plant it is not possible to assign several storage locations to the same warehouse number.
The following warehouse number decided for the Tauru site.
WH Warehouse Description
To be Tauru Warehouse
decided yet
The assignment of Warehouse to the plant & storage location combination is as follows:
Plant Storage Warehouse Warehouse Description

location
1021 Storage To be Tauru Warehouse
location to decided yet
be identified
3.4 Storage Types
A warehouse number is divided up into a number of storage types. A storage type is defined on the basis of its
spatial or organizational features (for example, high rack storage area, bulk storage area, goods receipt area).
A storage type has the following features:
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A storage type does not have an address, but a short description.
It is possible to store storage-type-specific material data.
Within a storage type, inventory is executed for each storage bin.
The Storage types defined for Luminous Tauru WH are:
Storage Types Description

(max 3 char) (max 25 char)
901 GR Area for Production
902 GR Area External Receipts
904 Returns
910 GI Area General

911 GI Area for Cost Centre
912 GI Area Customer Order
913 GI Area - Fixed Assets
914 GI Area Production Orders

915 Fixed Bin Picking Area
916 Shipping Area Deliveries
917 Quality Assurance

918 Goods Issue Area Contain.
920 Stock Transfers (plant)

921 Stock Transfers (St. Loc)
922 Posting Change Area
923 Packaging Area
980 R/3 --> R/2 Cumulative
998 Init. Entry of Inv. Data
999 Differences
GRA Generic racks
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OPN Open Storage

HRA High Rack
RET Return
3.5 Storage Section

Within a storage type, a storage section is a series of storage bins with the same features.
When you create a storage bin, you must enter a storage section.
If you are using storage types without sections, you must define at least one storage section (for example,
001) per storage type. The storage section in this case is identical to the storage type.
At Luminous Tauru below are the Storage Section to be created as per physical
WH.
Yet to be decided..
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4 MASTER DATA
4.1 Material Master
The material master data created at warehouse contains information stored at warehouse level & storage type level.
Maintaining material master at the warehouse level we can maintain the various fields such as unit of measures for
the material, Indicators related to storage strategies in Warehouse View 1 of the material master. In Warehouse
View 2 we can maintain Palletization data in e.g. SUT type UoM of SUT & LE Quantity.
Maintaining the material at storage location level in addition to the above mentioned fields we can also maintain the
details related to fix bin, picking area, maximum / minimum bin quantity, control quantity, replenishment quantity &
rounding quantity.
Unit of measure
The R/3 System distinguishes between the following units of measure:
Base unit of measure
This is the unit of measure in which the stocks of a material are managed. The system
converts all quantities entered in other units to the base unit of measure.
Warehouse Management Unit of Measure
This Unit of measure is one in which SAP warehouse management system manages the
material. SAP recommend to only maintain this field if you want to use a unit of measure
that differs from the base unit of measure or the alternative units of measure.
Unit of issue
This is the unit in which the material issued from the warehouse.
Proposed UoM from material (Default for unit of measure from material master record)
In the material master record you can define different units of measure for each material. In a business
environment, for example, in the warehouse, only one unit of measure is used per material so that the user does not
need to specify a unit for the quantities.
The defaults you define determine which unit of measure the system will propose if a user does not enter a unit of
measure together with the material quantity. Initially, the system attempts to use the unit of measure defined in the
material master record. If none is available in the material master, the system attempts to assign one of the defaults
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from the warehouse number record. If these defaults have not been maintained, the system uses the base unit of
measure.
For example, various proposed options by system for proposed UoM as below.
Proposed UoM Description

from material
A Unit of issue
B Order unit
K Base unit of measure if no other unit of measure
specified
L WM unit of measure
M WM unit of measure also for other UoM in
reference doc.
N Base unit of measure, even if another UoM in
reference doc.
Base unit of measure
4.2 Storage Bin Master
The storage bin, also referred to as coordinate, is the smallest unit that can be accessed in
a warehouse. Each storage bin must be assigned to a storage section.
While creating the Storage Bin master fields related to Storage bin type, Maximum weight (capacity check), Fire
containment section (applicable for Hazardous materials). Storage bins could be created by individual storage bin
creation t-code (LS01 / LS01N) or several storage bin simultaneously (LS10)
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5 BUSINESS PROCESSES
5.1 Warehouse Material Put-away
Material put-away is based on IM movement trigged in Inventory management. For planning the automatic
proposal of the material put away in the expected location in WM there is need to decide configuration related to
determination of the basic organization element determination.
1. Activation of storage type search sequence. In this we define the storage type search indicator & assign the
storage type search sequence according to the warehouse, storage type & search indicator combination.
There are also various other selection options related to stock category, special stock indicator, WPC, etc.
available for configuration if required.
2. Activation of storage section search sequence. In this we define the storage section search indicator &
assign the storage section search sequence according to the warehouse, storage type & search indicator
combination. There are other selection options related to storage class & WPC available for configuration if
required.
3. Activation of storage bin type search sequence. In this we define the applicable bin types & storage unit
types for the warehouse. We assign the various available storage unit types to the combination of the
warehouse & storage type & then bin types for the combination of warehouse & storage unit type.
4. There are also certain other configuration such as Define Sort Sequence for Put away (Cross-line Stock
Put away) & Define Sort Sequence for Stock Removal (Picking) not applicable for the current Luminous
Tauru WH Implementation.
Put away Procedures
Currently Luminous TAURU WH, warehouse is using Dynamic Bins Allocation for
Material as per size, Qty and Weight.
Strategy for Fixed Bins:
The "fixed bin" stock placement strategy is used for storage types in which a material is
assigned to a particular storage bin. This strategy is used mainly in storage types where
picking is carried out manually (for example, in small parts storage areas with manual
picking).
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Strategy for Open Storage:
This stock placement strategy required to set up an open storage area in the SAP system as
a storage bin. "Open storage" refers to a type of warehouse organization whereby you
define only one storage bin for each storage section. The quants in this storage bin are
stored in the form of mixed storage.
Strategy for Addition to Existing Stock:
As per this stock placement strategy SAP System tries to place a quantity of material into a
storage bin in which the material already exists. To add to existing stock, there must be
sufficient remaining capacity in the storage bin. So you must switch on the capacity check
for the relevant storage type to implement the strategy addition to existing stock.
Strategy for Empty Storage Bin:
As per the configuration in this stock placement strategy warehouses managed on a

random basis supported. The SAP system proposes Empty storage bins during the creation
of transfer orders.
Here it is necessary to make configuration related to the search for Empty storage bins
using the storage section assignment within a storage type.
Strategy for Pallets:
When many high rack storage areas are available in the warehouse & one shelf section can
include a different number of pallets, depending on the pallet size.
The SAP system can process different storage unit types (for example, European pallets)
and allocate them to a shelf section. A mixture of different storage unit types (pallet types)
within one shelf section is not allowed.
Strategy for Bulk Storage:
When in warehouse some materials that are usually available in large quantities and
therefore require a lot of storage space are often stored in bulk storage areas.
In bulk storage, each row of the bulk storage area represents a single storage bin. In this
type of storage bin, a quant is stored. The system can deduce how many storage units (for
example, pallets) are in each bin from the ratio for quantity per storage unit type defined in
the material master.
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Strategy Near Picking Bin:
This put away strategy used where a material is required to be stored in a reserve storage
bin near the fixed picking bin of this material.
5.1.1 Purpose
The central role of put away functionality is to automatically create proposals for efficient warehouse transfer as per
the functional requirement of the warehouse team. This target is achieved by using various put away procedure
described above.
In Luminous, Business identified materials are planned for warehouse put away with Dynamic bin strategy currently
Bins identified for material as per size, Qty and Weight and Bin search Propose the bin as per given sort sequence.
5.1.2 Master Data
The master data in the area of put away includes:
Material Master
Bin master
5.1.3 Features with reference to Luminous
Creation of the proposal to put material in the bin automatically with system setting. Minimum manual
intervention in deciding the put away of material
Confirmation of the put away in the bin with reference to the RFC and actual bin details will be updated
through third party application.
Creating of the storage units for materials received in standard package & storing it to avoid the manual
effort of counting & receiving material unit as material received in standard quantity of boxes or pallets.
5.1.4 Business Process
In SAP WM put away of the material triggered w.r.f. the IM document.
WM documents creation for put away starts with the requirement type creation. We can create various requirement
types depending on the IM reference document categories such as purchase order, production order, cost center,
etc. & also assign the tracking document for the same.
Depending upon the follow on document creation settings in SAP WM, system would create the transfer
requirement for the IM movement. The transfer requirements could be converted in the transfer order.
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IM movement for which we need to trigger put away we have to create settings in WM related to W M reference
movement & WM movement. Later we need to make the relevant assignment of IM movement to WM movement
through reference movement.
TO creation depends upon the various search options & put away strategy configured in the system. Source
Storage type & source storage bin determined as per the settings in the WM movement type configured for the
creation of the transfer order. Destination storage type & bin determined as per the search sequence & strategy in
the put away configuration.
Material could be received in SUT or loose basis depending on the settings made for the storage type.
TO printing for individual TO item or multiple TO items along with the SU or non SU label
printing can also be configured.
5.2 Warehouse Material Picking
5.2.1 Purpose
Material picking is based on IM reference document created for issue of material. For planning the automatic
proposal of the material picking from the expected location in WM various material picking strategies are used.
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The stock picking strategies may be suitable for materials in Luminous Tauru warehouse.
FIFO (First In First Out):
As per the configuration of stock removal with FIFO (First In First Out), the warehouse management system
proposes the oldest quant in each storage type from which you want to remove stock. The system calculates the
age of a quant using the date of the goods receipt posting that was set in the quant by the transfer requirement and
the transfer order.
Stringent FIFO:
Difference in stringent FIFO procedure & FIFO procedure is related to the oldest quant search. In stringent FIFO
oldest quant of a material searched within entire warehouse (that is, in all the storage types together) & for FIFO it is
searched within the storage type where this strategy is applicable.
For stringent FIFO the system ignores the individual stock removal strategies when it searches through the
individual storage types since this could cause data inconsistencies.
It is required to exclude certain storage types from the stringent FIFO principle so that the system does not make
incorrect stock removal proposals.
1. Interim Storage type for differences 999

2. Interim storage type for initial stock entry 998
3. Interim storage types for posting changes and stock transfers 920, 921, 922 & 923
4. goods issue interim storage type 904,910, 911, 912,913, 914,915,916,917,918
The stock picking strategies those would not be considered for Luminous Tauru
WM Implementation.
LIFO (Last In First Out):
As per the SAP WM configuration related to LIFO (Last In First Out), the Warehouse Management system proposes
for stock removal of the quant (in storage type where this strategy applicable) that was last placed into stock.
You can use this stock removal strategy in warehouses where the newly placed material is stacked on top or in front
of material already in storage.
Partial quantity:
With this strategy the FIFO principle may be waved off to optimize the warehouse situation.
If this stock removal strategy Partial Pallet Quantity selected then Warehouse Management system compares the
requested amount from the transfer order with the largest bin amount in the storage type. If the requested quantity
of the transfer order is the same as or larger then system removes the material from this bin.
If the requested quantity is smaller, the system removes the material from a storage unit for partial quantities. The
search sequence for full storage units is carried out using the FIFO principle.
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The implementation of this strategy is only practical in the Warehouse Management system if stock placements are
executed using
Standard storage unit types (always the same quantity of material per SUT) or
Partial pallet quantities (smaller quantities than a standard SUT)

Large/small quantities:
This stock removal strategy can influence the storage type selection on the basis of the requested quantity.
Depending on whether this quantity is less than or exceeds the control quantity you have defined in the material
master, Warehouse Management System proposes the stock removal from different storage types.
5.2.2 Master Data
The master data in the area of material picking includes:
Material Master
Bin master
CIL requirement for the custom picking procedure would be discussed & planned in later stage.
Creation of the proposal to pick material from the bin automatically with system setting. Minimum manual
intervention in deciding the picking of material
Confirmation of the picking from the bin with reference to RFC details received from third party application.
Issue of the storage units for materials received in standard package to avoid the manual effort of counting
& issuing material at base unit.
In SAP WM picking document or the transfer order is created against the outbound delivery document.
This delivery document could be created against the sales document or the return order.
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The transfer order could be created with reference to delivery with WM transaction or also created from the delivery
menu screen.
We can print pick-list for the TO or the combined list of the TOs. This list could be generated & distributed within
warehouse for the picking operation.
Picking of the material from storage type & confirmation of the TO due for the picking could be done with RF
devices.
5.3 Warehouse Material Transfer posting
5.3.1 Purpose
Transfer posting in WM is triggered with reference to the various IM movements.
Stock transfers in the Materials Management system include the physical movement of materials from
One plant/storage location to another plant/storage location
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Warehouse to warehouse
Storage bin to storage bin (internal transfers)
For stock transfers within the same warehouse complex (that is, within a warehouse number), you can create,
manage, and display information about the movement of stock from the time it is received until it leaves the
warehouse using the Warehouse Management system (WMS). For stock transfers from one storage location to
another storage location, the process begins in the Inventory Management (IM) component and is completed in
WMS.
5.3.2 Master Data
The master data in the area of material picking includes:
Material Master
Bin master
Creation of the proposal to transfer material from the bin automatically with system setting. Minimum
manual intervention in material transfer posting.
Creation of the various transfer posting requirement against the IM documents & create TO for transfer of
material from the bin with reference to the RFC details received from third party application
Load distribution within the warehouse resources with the creation of TO document & allocating work within
available resources.
In SAP IM the material transfer document created.
Request for the transfer posting created in SAP WM against the IM document
Transfer order created with reference to WM transfer posting document.
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Material is first transferred to interim area for the transfer posting from source storage type & from there is posted to
destination storage type.
5.4 Physical Inventory
In SAP R/3, physical inventory can be carried out both for a companys own stock and for special stock. Inventory
for a companys stock and for special stocks (such as consignment stock at customer, external consignment stock
from vendor, or returnable packaging) must be taken separately (in different physical inventory documents).
However, note that the blocked stock returns and the stock in transfer cannot be inventoried. If these stocks are still
to be counted in a physical inventory, must be transfer post these stocks to other stocks capable of inclusion in a
physical inventory.
The stock in a warehouse can be divided into stock types. In the standard system, a physical inventory can be
carried out for the following stock types:
Unrestricted-use
Consignment stock
Blocked stock
Inventory of all stock types mentioned can be taken in a single transaction. For the bins to be inventoried, one item
is created in the physical inventory document for every stock type.
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SAP WM physical inventory takes place at storage type & bin level. A separate physical inventory document is
created for every storage type & bin selected in the same.
If a material does not exist in a storage type & Bin, this means that no WM movement has ever taken place for the
material in the storage type. The material, therefore, has never had any stock in this storage type. The material
does not exist at WM stock management level in the storage type. It is therefore not possible to carry out a physical
inventory for the material in this storage type.
SAP WM supports the following physical inventory procedures:
Continuous inventory
Annual inventory
Cycle counting
Continuous Inventory:
In the continuous inventory procedure, stocks are counted continuously during the entire fiscal year. In this case, it
is important to ensure that every material is physically counted at least once during the year.
Annual inventory:
In this method of inventory stocktaking happens for all stocks in a company on a fixed date (usually at the end of the
fiscal year).
There are no transfers in the warehouse on this day.
Cycle Counting:
Cycle counting is a method of physical inventory where inventory is counted at regular intervals within a fiscal year.
These intervals (or cycles) depend on the cycle counting indicator set for the materials.
The Cycle Counting Method of Physical Inventory allows fast-moving items to be counted more frequently than
slow-moving items.
5.4.1 Purpose
This component allows you to carry out a physical inventory of your companys warehouse stocks for balance sheet
purposes.
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5.4.2 Master Data
Material master
Bin Master
Luminous Tauru warehouse inventory process will follow Periodic, Annual & cyclic inventory related
methods. All stocks of the company would be physically counted quarterly, annually & every month at
Luminous Tauru warehouse.
Visibility of inventory differences with every inventory count across plants is

available.
Inventory counting is done for every material at storage type & bin level in the
warehouse.
Posting of difference can be controlled through authorizations. Differences could be posted at WM & IM
level after approval on the differences occurred in inventory to match the IM & WM stocks.
The physical inventory procedure is carried out in three steps:
1. Creating a Physical Inventory Document.

2. Entering the Physical Inventory Count.
3. Posting inventory differences at WM & IM level.
Inventory Documents Number Ranges:
Inventory Documents From To Ext(E)/

Int(I)
(WM Physical Inventory)
Inventory Document No. 0000000001 1000000000 I
TO Inventory No. 9000000000 9999999999 I
5.5 Movement types
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The following is the list of IM movement types that will be using in Luminous.
Needs To be identified yet.
IM Mvt Description
Type
The following is the list of WM movement types that will be mapped in system.
WM Mvt Type Description
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List WM document & number range
WH Docs From To Ext(E)/

Int(I)
TR 0000000001 1000000000 I
TO 0000000001 1000000000 I
Quants 0000000001 1000000000 I
Posting 0000000001 1000000000 I

Changes
6 MODULE INTEGRATION
Warehouse Management is integrated with SAP MM, SD, PP & QM modules.
Luminous would consider the integration of SAP WM with MM & SD modules in Luminous Tauru WM Tauru.
Integration of SAP WM and third party application.
Inventory Management
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SAP WM & MM integrated with the interim storage area for the receipt of material i.e.
storage type 902-GR Area External Rcpts. All IM movement relevant WM trigger the WM
requirement creation & TO creation. This process initiates the automatic material put-away
to the WM storage type & bins.
Sales & Distribution
SAP WM integrated with SAP SD with the interim area for issue of material for sales order
i.e. storage type 916-Shipping Area Deliveries. Delivery is created for the sales order issue
& TO could be directly created for the delivery with WM t-code or from the delivery screen.
This TO creation would determine the source storage as per the picking strategy & material
would be moved to the storage type 916-Shipping Area Deliveries. This material would be
depleted from warehouse once the IM goods issue happens for the sales order.
7 INTERFACE REQUIREMENT
At Luminous there would not be any interfacing of SAP or third party system with
SAP WM system.
8 STANDARD INFORMATION SYSTEM
SAP WM as standard functionality offers various functionality wise reports for various analysis and helps in decision
making for the business organization.
List of such standard reports is given below:
T Code Transaction code description
LL01 Warehouse Activity Monitor
LS04 Display Empty Storage Bins
LX01 List of Empty Storage Bins
LX03 Bin Status Report
LX04 Capacity Load Utilization
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LX29 List of Fixed Storage Bins
LS27 Stock per Storage Unit
LX27 Shelf Life Expiration Date - Control List
LX02 Stock for All Materials
LS26 Stock Aggregated - Material-Specific
LS24 Stock In Bins - Material-Specific
LS25 Stock per Storage Bin
LX09 TR Document Overview
LX33 TR Display From Archive
LRF2 TO Display RF Activities
LX10 Movements/Storage type
LX11 TO Document Overview
LX12 TO Detailed Overview
LX13 TO Differences Analysis
LX32 TO Display from Archive
LX14 Material Movement Frequency
LX47 Analysis of Delayed Delivery Update
LU04 Posting Change Document Overview
LX34 Posting Change Display from Archive
LX17 Different List of Open WM Inventory Documents
LX18 WM Inventory Difference Statistics per Storage Type
LX25 WM Inventory Status
LX35 Display Physical Inventory Documents from Archive
LX36 Display Inventory History from Archive
LI15 Evaluation of Quant Inventory
LX44 Warehouse Document for Decentralized Warehouse
MCL1 Putaways/Stock Removals
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MCL5 Flow of Quantities
MCL9 Putaways/Picks
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9 ANNEXURES
9.1 Master Data Templates
SAP master data Templates for the extension of material master for WM view & creation of bins enclosed for the
reference.
Material Master Data Template (WM View Extension)
Bin Master Data Template (WM)
BDC Bin
Creation.xlsx
9.2 GAPS
As per Physical Warehouse there is INSP called inspection area which is not WM configurations because this area
is used for storing the material after 103 Movement and we are not doing any MVT in WH for 103.
9.3 Open Point
Open points need to be considered for the discussion
Any change in custom T code ZMB52 if required as currently it is fetching the bin information for material
from the plant storage data of material master view. Bin location would change after the implementation of
the WM put away strategy.
9.4 Assumptions
IM movement 103 & quality check would not be covered in WM & no WM label printing would take place at
this stage.
Warehouse management scanning would take place by manual entry or 1D barcode scanning of WM
objects such as TO number, SU number, etc. for put away or picking of material.
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As per Last communication, we have checked for If we Implement SAP WM and in future if we wants to
move on SAP RLM. There is no conflict and if clients wants to use both the functionality they can use the
same.(as per SAP SDN Community).
33

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Business Blueprint Document

SAP WM Implementation for Luminous

SAP WM IMPLEMENTATION FOR

1 EXECUTIVE SUMMARY ..................................................................... 4

9.2 GAPS ......................................................................................... 32

1.2 Business Blueprint Overview

1.3 Warehouse Management

It is sub divided into

The tasks of the SAP WM component are as follows:

For strategies, the following procedures are available:

1. Activate Storage Type Search

This component deals with the following tasks.

Storage Unit Management

1.4 Project Scope

1.4.1 Geographical Coverage

Plant Warehouse Dedicated Units

1.4.2 Functional Scope

Integration with Third Party Application (developed by BCIL)

1.5 Module Integration

1.6 Interface Requirement

Integration of SAP WM system with third party Application system (Developed by

1. Master data flow( Material, Plant, Vendor, Material Plant combinations)

Current Organisation Structure

Proposed Organisation Structure

The following plant is considered for Luminous WM Implementation:

Plant Plant Description

3.2 Storage Locations

The Storage locations considered for Luminous WM Implementation:

Plant Plant Description Storage location Storage location

Company Code LPTL

1021 Tauru To be identified To be identified

3.3 Warehouse Number

A warehouse number has the following characteristics:

It is possible to store material data that is specific to a warehouse number.

The following warehouse number decided for the Tauru site.

Plant Storage Warehouse Warehouse Description

3.4 Storage Types

A storage type has the following features:

A storage type does not have an address, but a short description.

It is possible to store storage-type-specific material data.

Within a storage type, inventory is executed for each storage bin.

The Storage types defined for Luminous Tauru WH are:

Storage Types Description

910 GI Area General

913 GI Area - Fixed Assets

914 GI Area Production Orders

916 Shipping Area Deliveries

917 Quality Assurance

920 Stock Transfers (plant)

OPN Open Storage

3.5 Storage Section

4.1 Material Master

The R/3 System distinguishes between the following units of measure:

Base unit of measure

Warehouse Management Unit of Measure

Proposed UoM Description

4.2 Storage Bin Master

5.1 Warehouse Material Put-away

Put away Procedures

Strategy for Fixed Bins:

Strategy for Open Storage:

Strategy for Addition to Existing Stock:

Strategy for Empty Storage Bin:

As per the configuration in this stock placement strategy warehouses managed on a