The Ultimate Guide to SAP S/4HANA Extended Warehou...

mickaelquesnot · ‎2025 Sep 23

The Ultimate Guide to SAP S/4HANA Extended Warehouse Management (EWM)

A Practical Handbook for End Users, Key Users, and Consultants

Introduction

Welcome to the world of modern logistics with SAP S/4HANA Extended Warehouse Management (EWM). If you're coming from an older SAP ECC system with Warehouse Management (WM), you're in for a significant upgrade. If you're new to SAP logistics, you're starting in the right place.

This guide is designed to be your single point of reference, whether you're an end user processing daily transactions, a key user training your team, a consultant implementing the system, or a "dummy" who just wants to understand how it all works.

We will transform legacy, custom processes into standard, best-practice S/4HANA EWM functionalities, focusing on modern SAP Fiori applications and a seamless, integrated workflow that spans the entire supply chain.

From WM to EWM: What's the Big Deal?

Think of the classic SAP WM module as a well-organized personal library. It knows which bookshelf (storage bin) a book is on and can help you find it.

EWM, on the other hand, is like the entire Amazon fulfillment center infrastructure. It doesn't just know where the book is; it manages the entire process with incredible detail:

Labor Management: Tracking how long tasks take.
Wave Management: Organizing picking for multiple orders simultaneously.
Slotting: Optimizing where products should be stored based on demand.
Value-Added Services (VAS): Managing kitting or special packaging.
Advanced RF/Mobile Functionality: Modern, user-friendly mobile interfaces.

This guide will walk you through this powerful system, making it simple and accessible.

Chapter 1: The Foundation - Master Data

Everything in SAP starts with clean master data. Without it, no process can run correctly. We'll focus on the essential objects for our end-to-end warehouse flow.

1.1 The Business Partner (BP)

In S/4HANA, the old concepts of "Customer" and "Vendor" are unified into a single object: the Business Partner. A single BP can have multiple roles.

What is it? A BP represents a person, organization, or group your company interacts with. It holds all the core data like name, address, and bank information.
How to Manage it:

Fiori App: Manage Business Partner Master Data
SAP GUI: Transaction BP

Key Concepts:

General Role: The basic data for the entity.
Customer Role (FI Customer / Customer): Contains financial accounting data (like reconciliation account) and sales-specific data (like shipping conditions).
Supplier Role (FI Vendor / Supplier): Contains financial data and purchasing-specific data.
For our warehouse processes, a BP must have the appropriate Customer role to receive goods and the Supplier role to procure materials from.

1.2 The Material Master

The Material Master holds all information about a product. In S/4HANA, this is now often called the "Product Master," but the core concepts and transaction (MM01) remain.

What is it? The central record for every material you procure, produce, store, or sell.
How to Manage it:

Fiori App: Manage Product Master Data
SAP GUI: MM01 (Create), MM02 (Change), MM03 (Display)

Key Views for EWM:

Basic Data 1 & 2: Core information like material number, description, and unit of measure.
Sales Views: Essential for the outbound process. Defines the delivering plant and tax information.
Purchasing View: Crucial for the inbound process. Defines the purchasing group and order unit.
Plant Data / Stor. 1 & 2: Defines the storage location and basic warehousing parameters.
Warehouse Management 1 & 2: In ECC, this was for WM. In S/4HANA, these views are still used for basic data, but the detailed EWM data is stored elsewhere.

Practical Exercise 1: Create a Finished Good

Launch the "Manage Product Master Data" Fiori app.
Click "Create."
Enter a Material Number (e.g., FG-1001), Material Type (FERT - Finished Good), and select the necessary views (Basic Data, Sales, Plant Data, Storage Location).
Fill in the required fields like Description, Base Unit of Measure (EA for Each), and assign it to your Plant (e.g., 1000) and Storage Location (e.g., 1030).
Save the material. You now have a product ready to be managed in EWM!

1.3 The EWM Product Master

Once a material is created, it must be "extended" to the warehouse, creating an EWM-specific view of the product.

What is it? An extension of the Material Master that holds EWM-specific data, such as putaway strategies, stock removal rules, and packaging specifications.
How to Manage it:

Fiori App: Manage Product Master Data (navigate to the warehouse views)
SAP GUI: /SCWM/MAT1

Key Data Tabs:

Warehouse Data: Define the Warehouse Process Type (WPT) for putaway and stock removal. For example, a fast-moving item might have a different removal strategy than a slow-moving one.
Slotting: Define parameters that help the system determine the optimal storage bin for this product.
Storage Type Data: Define specific parameters for how the product is stored in different storage types (e.g., fixed bins, bulk storage).

Consultant Corner: Customizing Point

The strategies and control indicators you see in the EWM Product Master are configured in SPRO or CBC under: SCM Extended Warehouse Management > Extended Warehouse Management > Master Data > Define Warehouse Process Type. Here, you define the logic for how the system handles movements like putaway, picking, or internal transfers.

1.4 Packaging Specifications

This master data defines how a product is to be packed. It's the foundation of Handling Unit Management (HUM).

What is it? A set of rules defining how many "eaches" go into a carton, how many cartons go onto a pallet, the packaging material to be used, and the total weight/volume.
How to Manage it:

SAP GUI: /SCWM/PACKSPEC

Example: For our product FG-1001:

Level 1: 1 EA of FG-1001 is packed into packaging material CARTON-S.
Level 2: 50 CARTON-S are packed onto packaging material PALLET-EU.
When you receive or pick 50 units, the system will automatically know it should be on a single pallet. This replaces the manual logic seen in the old Z4WM programs for palletization.

Chapter 2: Inbound Logistics - From Purchase to Putaway

This chapter covers the end-to-end process of receiving goods from an external supplier into your EWM-managed warehouse. We will model the process described in the source documents (RéceptionFournExt, MIGO, VL31N) using a modern S/4HANA approach.

Process Flow:

Purchase Order -> Inbound Delivery -> EWM Warehouse Tasks -> Goods Receipt

2.1 Create Purchase Order (PO)

This is the starting point, where the purchasing department orders goods from a supplier.

Who does it? Purchaser
How to do it?

Fiori App: Manage Purchase Orders
SAP GUI: ME21N

Key Steps & Data:

Enter the Supplier (Business Partner with Supplier role).
In the item overview, enter the Material number (e.g., RAW-MAT-01), Quantity, Plant, and Storage Location.

Crucially, this storage location must be linked to your EWM warehouse.

On the "Confirmations" tab of the item details, ensure a Confirmation Control Key is used that requires an Inbound Delivery (e.g., Z003 from the source doc, now a standard key like 0004). This is a critical integration point.
Save the Purchase Order.

2.2 Create Inbound Delivery

The Inbound Delivery is a notification that a shipment is on its way. It's the key document that connects Logistics Execution (LE) with EWM.

Who does it? Can be created manually by a warehouse clerk or automatically via an Advanced Shipping Notification (ASN) from the supplier.
How to do it?

Fiori App: Create Inbound Delivery
SAP GUI: VL31N

Key Steps & Data:

Reference the Purchase Order you just created.
Enter the delivery quantity.
Handling Units (HUs): If the supplier sent an ASN with HU information, you can pack the delivery here. If not, you will create the HUs inside the EWM warehouse.
Save the Inbound Delivery.

Behind the Scenes: As soon as you save, this Inbound Delivery is automatically replicated to the EWM system, creating an Inbound Delivery Notification and then an Inbound Delivery within EWM.

2.3 EWM Inbound Processing

This is where the physical work in the warehouse begins. All these steps are typically performed on a mobile RF device, but can also be executed using desktop Fiori apps.

Who does it? Warehouse Operator
Key Fiori Apps:

Warehouse Monitor (for an overview)
Process Warehouse Tasks
Post Goods Receipt for Inbound Delivery

Step-by-Step EWM Flow:

Goods Arrival: The truck arrives at the warehouse. The delivery is checked in.
Unloading & HU Creation:

The operator is directed by the system to unload the pallet.
If the goods are not already in an HU, the operator will now create them. This replaces the old custom transaction Z4WM08 or Z4WM19.
Standard Process: Using an RF device, the operator scans the product, enters the quantity, and scans a pre-printed barcode label to create a new HU number. The system prints a new HU label to be applied to the pallet.

Putaway Task Execution:

The system automatically creates a Warehouse Task (WT) to move the HU from the goods receipt area (e.g., storage type 9010) to its final storage bin.
The system determines the destination bin based on the putaway strategy defined in the EWM Product Master (e.g., next empty bin, fixed bin, bulk storage).
The RF device guides the operator: "Pick up HU 12345. Take it to Bin A-01-03."

Task Confirmation: Once the operator scans the destination bin, the WT is confirmed in the system. The stock is now physically and systemically in its final location.

2.4 Post Goods Receipt (PGR)

This is the final financial step. It tells the system that you legally own the goods, updates inventory quantities in real-time, and allows for invoice verification.

Who does it? Warehouse Clerk
How to do it?

Fiori App: Post Goods Receipt for Inbound Delivery
SAP GUI: /SCWM/PRDI (in EWM)

Process:

The warehouse clerk finds the Inbound Delivery in the app.
The system shows that all putaway tasks are complete.
The clerk clicks "Post Goods Receipt."

Integration Impact:

Inventory Management (MM): The stock is now visible in the plant/storage location (e.g., using transaction MMBE).
Financial Accounting (FI): An accounting document is created, debiting inventory and crediting the GR/IR (Goods Receipt / Invoice Receipt) account.
Purchasing (MM): The Purchase Order history is updated to show the goods have been received.

Consultant Corner: The link between an MM storage location and an EWM warehouse is a key configuration point. It's done in SPRO/CBC under: Enterprise Structure > Assignment > Logistics Execution > Assign warehouse number to plant/storage location.

Chapter 3: Outbound Logistics - From Sale to Shipment

This chapter details the process of selling a product, picking it from the warehouse, packing it, and shipping it to the customer. This replaces the legacy processes seen in GU_Expedition du magasin central and 124_ERP606_BPD.

Process Flow:

Sales Order -> Outbound Delivery -> EWM Tasks (Picking, Packing, Staging) -> Goods Issue

3.1 Create Sales Order

The process starts when a customer places an order.

Who does it? Sales Representative
How to do it?

Fiori App: Create Sales Orders
SAP GUI: VA01

Key Steps & Data:

Enter the Customer (Business Partner with Customer role).
Enter the Material to be sold and the Quantity.
The system performs an Availability Check (ATP) to confirm if the stock is available and proposes a delivery date.
Save the Sales Order.

3.2 Create Outbound Delivery

Based on the sales order, an Outbound Delivery is created when the material is due for shipping.

Who does it? Shipping Specialist / Can be automated
How to do it?

Fiori App: Manage Sales Orders (select the order and choose "Create Delivery")
SAP GUI: VL01N or VL10E for collective processing.

Process:

The system copies relevant data from the Sales Order.
The Storage Location on the delivery must be EWM-managed.
Save the Outbound Delivery.

Behind the Scenes: Just like in the inbound process, this document is replicated to EWM, creating an Outbound Delivery Request and then an Outbound Delivery Order.

3.3 EWM Outbound Processing

This is where the complex orchestration of picking, packing, and staging happens.

Who does it? Warehouse Operator
Key Fiori Apps:

Run Outbound Process
Pack Handling Units

Step-by-Step EWM Flow:

Wave Creation (Automation): The system can automatically group Outbound Delivery Orders into waves based on criteria like shipping time, route, or customer. This allows for efficient, consolidated picking.
Warehouse Task (WT) Creation: The system creates picking WTs for the wave. It determines the source bins based on stock removal strategies like FIFO (First-In, First-Out) or LIFO.
Picking:

The RF device directs an operator to a source bin: "Go to Bin A-01-03. Pick 10 EA of FG-1001."
The operator picks the items and confirms the quantity on their device. They place the items into a picking cart or pallet. The system now knows the stock is in transit within the warehouse.

Packing: This is the standard replacement for the old custom palletization programs (Z4WM09, Z4WM10, Z4WM11).

The operator takes the picked items to a packing station.
Fiori App/RF Screen: "Pack Handling Units" (GUI: /SCWM/PACK).
The operator scans the products and the packaging material (e.g., a shipping carton). The system, using the Packaging Specification master data, validates the packing.
Once packed, a new HU (the shipping carton or pallet) is created, and a shipping label is printed.

Staging:

The system creates a final WT to move the packed HU from the packing station to the shipping area (e.g., Storage Type 9020, Staging Bay for Route A).
The operator moves the HU and confirms the task.

3.4 Post Goods Issue (PGI)

This is the final step, marking the transfer of ownership to the customer and the physical departure of the goods.

Who does it? Shipping Clerk
How to do it?

Fiori App: Run Outbound Process
SAP GUI: /SCWM/PRDO (in EWM)

Process:

The clerk finds the Outbound Delivery Order.
Once the truck is loaded, the clerk clicks "Post Goods Issue."

Integration Impact:

Inventory Management (MM): The stock is deducted from the warehouse.
Financial Accounting (FI) / Controlling (CO): An accounting document is created debiting Cost of Goods Sold (COGS) and crediting the inventory account.
Sales and Distribution (SD): The billing due list is updated, allowing the finance department to create an invoice for the customer.

Chapter 4: Internal Warehouse Processes & Inventory

Warehouses are dynamic. This chapter covers essential internal operations, replacing the functions of old transactions like Z4WMxx for transfers, palletizing, and inventory.

4.1 Ad-Hoc Moves & Rearrangements

Sometimes you need to move stock manually for reasons outside of the standard inbound/outbound flow (e.g., consolidation, quality inspection).

Standard Process: This replaces the various custom transfer transactions (Trasf cartoni, Tras paletta, Tras Ubi a Ubi).
How to do it?

Fiori App: Process Warehouse Tasks (create an ad-hoc task)
SAP GUI: /SCWM/ADHU (Move Handling Unit) or /SCWM/ADPROD (Move Product).

Practical Exercise 2: Move a Pallet

Launch transaction /SCWM/ADHU.
Enter your Warehouse Number.
In the "Source HU" field, scan or enter the HU number you want to move.
In the "Destination" section, enter the Storage Bin where you want to move it.
Execute. The system creates and confirms the WT in one step. The stock is moved.

4.2 Replenishment

This is the process of moving stock from a reserve storage area to a forward picking area to ensure pick faces are always stocked.

What is it? An automated or planned internal stock transfer.
Key Concepts:

The system monitors the stock levels in the picking bins.
When the stock drops below a pre-defined minimum quantity (set in the Product Master), the system automatically creates a replenishment WT.
An operator is then directed to move a full pallet or case from the reserve area to the picking bin.

Consultant Corner: Replenishment strategies are highly configurable. They are set up in SPRO/CBC under: SCM Extended Warehouse Management > Extended Warehouse Management > Internal Warehouse Processes > Replenishment. You can define different strategies like Planned, Automatic, or Order-Related replenishment.

4.3 Physical Inventory (PI)

This is the process of counting your physical stock to ensure the system data is accurate. EWM offers flexible and efficient ways to do this, replacing the old Z4WM22 and Z4WM23 processes.

How to do it?

Fiori App: Manage Physical Inventory Documents

Standard PI Process Flow:

Create PI Document: The warehouse manager decides what to count (e.g., a specific storage type, a range of products) and creates a PI Document.
Counting:

A warehouse operator receives the count document on their RF device.
They go to the specified bins and count the products/HUs.
They enter the count results directly into the device. The PI document is updated in real-time.

Analyze Differences: The manager reviews the count results in the Fiori app. The system highlights any discrepancies between the counted quantity and the system quantity.
Recount (if necessary): If there's a large difference, the manager can trigger a recount for that specific bin.
Post Differences: Once the count is finalized, the manager posts the differences.

Integration Impact: Posting differences in EWM automatically triggers a corresponding posting in Inventory Management (MM) and creates a financial document in FI to adjust the value of the inventory and write off the loss/gain.

Chapter 5: Special Processes & Financial Integration

This chapter handles more complex scenarios like customer returns and the resulting financial documents, modernizing the processes from Retour marchandise and ND et NC.

5.1 Advanced Returns Management

When a customer returns a product, you need a robust process to handle the physical and financial aspects. S/4HANA provides a standard "Advanced Returns Management" solution.

Process Flow:

Returns Order -> Inbound Delivery for Return -> Quality Inspection (in EWM) -> Financial Settlement

Step 1: Create Returns Order

A Customer Service agent creates a Returns Order (VA01, order type ZCRN in the source doc, now a standard type like CBAR). They reference the original sales order or invoice.

Step 2: Goods Receipt & Inspection

The physical return follows a process similar to the standard inbound flow, but the stock is received into a special "Returns" storage type and is often in a "Blocked" or "Quality Inspection" stock status.
A quality inspector is notified. They inspect the goods.

Step 3: Logistical Follow-Up (in EWM)

Fiori App: Material Inspection in Warehouse
Based on the inspection, the inspector decides the follow-up action:

Return to Stock: If the product is fine, create a WT to move it to a standard storage bin.
Scrap: If damaged, create a WT to move it to a scrap zone.

Step 4: Financial Settlement

Once the logistical follow-up is complete, the system can automatically trigger the creation of a Credit Memo Request.
This is then approved and becomes a Credit Memo (NC), which is sent to the customer, clearing their account. This is the standard, integrated replacement for the manual ZNCN process described in the Italian document. The process for a Debit Memo (ND) follows a similar path if you need to charge the customer.

5.2 Quality Management (QM) Integration

EWM is tightly integrated with QM for processes like acceptance sampling on incoming goods or in-process inspections.

Standard Process:

When goods are received from a supplier, if the material is marked for quality inspection, the stock is automatically posted to "Quality Inspection" stock in EWM.
An Inspection Lot is created in the QM module.
A Quality Technician performs the required tests and records the results.
They make a Usage Decision (UD) in the QM system (e.g., Accept or Reject).
This UD triggers an automatic stock posting change in EWM, moving the stock from "Quality Inspection" to "Unrestricted Use" (if accepted) or "Blocked Stock" (if rejected). This replaces the manual status change transactions mentioned in the documents (Z4WM18, Z4WM17).

Chapter 6: The Comprehensive Test Plan

This test plan provides a structured framework for validating the end-to-end processes described in this guide. It is designed for all user types to ensure the system functions as expected.

Instructions: For each test case, follow the steps precisely. Record the document numbers you create. Compare the Actual Result with the Expected Result and mark the Status as Pass/Fail.

Test Area 1: Inbound Logistics

Test Case ID	Scenario	Pre-requisites	Test Steps	Expected Result	Actual Result & Data	Status
TC-INB-001	Standard Goods Receipt of Palletized Goods	Material RAW-MAT-01 exists and is extended to EWM. Supplier SUPP-1001 exists.	1. Create Purchase Order for 100 EA of RAW-MAT-01. 2. Create Inbound Delivery (VL31N). 3. In EWM (/SCWM/PRDI), check the delivery. 4. Process Unload & Putaway tasks (/SCWM/MON or RF). 5. Post Goods Receipt.	- Stock is visible in the final EWM bin. - GR is posted in MM (MMBE). - PO history is updated. - FI document is created.
TC-INB-002	Goods Receipt with HU Creation in Warehouse	Same as above.	1. Create PO & Inbound Delivery. 2. At the GR zone, use RF/desktop to create a new HU for the 100 EA. 3. Process the putaway task for the newly created HU. 4. Post Goods Receipt.	- A new HU is created in the EWM system. - Stock is located in the final bin under this new HU number. - GR is posted successfully.

Test Area 2: Outbound Logistics

Test Case ID	Scenario	Pre-requisites	Test Steps	Expected Result	Actual Result & Data	Status
TC-OUT-001	Standard Pick, Pack, and Ship	Material FG-1001 has sufficient stock in an EWM bin. Customer CUST-2001 exists.	1. Create Sales Order for 10 EA of FG-1001. 2. Create Outbound Delivery (VL01N). 3. In EWM (/SCWM/PRDO), create picking WTs. 4. Confirm picking WTs. 5. At a packing station (/SCWM/PACK), pack the 10 EA into a new HU. 6. Confirm the staging WT. 7. Post Goods Issue.	- Stock is removed from the EWM bin. - The Outbound Delivery is fully processed. - Goods Issue is posted in MM. - COGS is posted in FI. - The Sales Order is updated as delivered.
TC-OUT-002	Picking with Batch Determination (FIFO)	Material FG-BATCH-01 exists with two different batches in stock (Batch A received yesterday, Batch B received today).	1. Create Sales Order for FG-BATCH-01. 2. Create Outbound Delivery. 3. Check the created picking WT in EWM.	- The system should automatically create the picking WT for Batch A (the older batch) based on the FIFO strategy.

Test Area 3: Internal & Inventory Processes

Test Case ID	Scenario	Pre-requisites	Test Steps	Expected Result	Actual Result & Data	Status
TC-INT-001	Ad-Hoc HU Movement	An HU with stock exists in Bin A.	1. Use transaction /SCWM/ADHU. 2. Enter the HU number and a valid empty Destination Bin B. 3. Execute.	- The HU is moved from Bin A to Bin B in the system. - The stock monitor (/SCWM/MON) reflects the new location.
TC-INV-001	Physical Inventory Count with Difference	Product FG-1001 has a system stock of 50 EA in a bin.	1. Create a PI Document for the bin. 2. Using RF/desktop, enter a count of 48 EA. 3. In the PI Document, review the difference. 4. Post the difference.	- The system shows a negative difference of 2 EA. - After posting, the system stock in the bin is updated to 48 EA. - An FI document is created to write off the value of 2 EA.

Test Area 4: Special Processes

Test Case ID	Scenario	Pre-requisites	Test Steps	Expected Result	Actual Result & Data	Status
TC-RET-001	Customer Return and Credit	A sales order has been previously delivered and invoiced to a customer.	1. Create a Returns Order, referencing the original invoice. 2. Create an Inbound Delivery for the return. 3. Receive the goods in EWM into a "Returns" area. 4. Perform an inspection and decide to "Return to Stock". 5. Process the stock movement in EWM. 6. Verify the creation of a Credit Memo Request in SD.	- Stock is successfully returned to an unrestricted-use bin. - A Credit Memo Request is ready for the finance team to process, ensuring the customer is credited correctly.

kantimaa · ‎2025 Sep 24

I am interested to know more about EWM RELATED TOPICS