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This blog gives a quick overview of simple outbound process and process oriented storage control in an embedded EWM in S/4 hana.

Outbound Process

Outbound process is used to ship ordered goods to customers. this process starts with the creation of a sales order and an outbound delivery. The outbound delivery is replicated to the Embedded EWM system, where an outbound delivery order is created. This document serves as the starting point for the outbound processing within the warehouse. Warehouse tasks are created with reference to the outbound delivery order and the physical process for picking is executed. During the creation of warehouse tasks, the system determines the location for picking the stock and allocates the stock to the warehouse task. At the end of the process, the goods issue is posted. The goods issue information is transferred from SAP EWM to the SAP S/4HANA system. Subsequent process steps such as billing can be executed accordingly. The outbound process also known as goods issue process in extended warehouse management.

The key process steps are as follows

  • Create sales order

  • Create outbound delivery

  • Check outbound delivery orders

  • Create warehouse tasks

  • Pick warehouse orders

  • Post goods issue for outbound delivery order

The following steps are to use to execute simple outbound process (picking and staging )

Creation of sales order (T.Code – VA01)                                                                                                                                                           Enter the mandatory details like order type, sales org, distribution channel and division                                                                                                                                                                   

Enter the sold to party (Customer)and ship to party material to ordered quantity and plant and shipping details and save it one sales order will created (in our case sales order 258 is created)   

Create outbound delivery (T.Code VL01N) 

enter the details like shipping points sales order and date

Enter the material to shipped, delivery quantity, plant, storage location, other shipping details and save it one outbound delivery will be created saved and will be distributed into EWM system

outbound delivery is created and saved it is distributed into EWM system.

to view the outbound delivery in embedded EWM system go to T.Code : /n/scwm/prdo enter the delivery or document number to check the outbound delivery order   

Create warehouse task go to path: outbound delivery order.> follow on functions > warehouse task

create and save the warehouse task

Warehouse tasks for picking can be created manually as well as using picking strategies.

in order to confirm the warehouse task go to path warehouse task > confirm

confirm and save the warehouse task

warehouse tasks for picking are confirmed either in foreground or in background. the stocks are now available in goods issue staging area generally known as GI Staging area next  goods issue is posted for the warehouse request after which the outbound delivery is generated.

Configuration of picking strategies 

Path go to  spro > SCM extended warehouse management > extended warehouse management > master data > goods issue process > strategies > specify stock removal rule

Specify stock removal rule 


specify storage type search sequence                                                                                                                                                                                                                                    

Define stock removal control indicator                                                                                                                                                                                                                                        

 Determine storage type search sequence for stock removal                                                                                                                                                                                                                                                                                                                                                                    Optimization of access strategies for storage type determination in stock removal


 Go to product master and maintain stock removal control indicator (/n/scwm/mat1)


the stock removal control indicator should be maintained in the product master in order to execute the picking strategies


Process Oriented Storage Control (POSC )

POSC is used in warehouses where there is need for multi steps movements for stocks inside the warehouse due the restrictions in layout of the warehouse for simple movements. In complex warehouses, outbound process involves a series of multi step movement. means that the material which is picked does not directly go the door or goods issue area. instead will go to interim storage type for packing and value-added services again from there the Handling Unit (HU) is staged in staging area followed by loading. Handling Unit undergoes the multi-step physical movements.

The following Process Steps are used in POSC

  • Remove from Stock (Pick)

  • Pack

  • Stage

  • Load

Configurations Settings for outbound POSC

Path to configure for Process oriented storage control-SPRO > SAP Reference IMG > Extended Warehouse Management > Cross Process Settings > Warehouse Task > Define Process-Oriented Storage Control                                                                                                                                                                                                                                                     

Define external steps and the corresponding internal steps for outbound POSC

Define storage process                                                                                                                                                                                                                                                                       

Assign external steps to storage process                                                                                                                                                                                                                                           

The first step in the outbound POSC is picking i.e 0B01. for picking strategies are configured so system picks the stocks according to strategies defined but for second step i.e packing is done manually on worktable. so, for packing one work center and work center layout is required. since work center is a storage type we define work center as a storage type with storage type role ‘D’ and one storage bin for this work center along with work center layout

Define storage type work center with storage type role ‘E'                                                       

Creating storage bin for the work center ( T.Code /n/scwm/ls01) 


Defining  work center and work center layout                                                                                   


Specify work center layout                                                                                                                   


Define master data attributes for work center (assigning the storage bin to the work center) in SAP easy access                                                                                                                                                                                                                                                             

Now again go to spro in POSC and configure the source and destination for each of the stock movements by Enter the source and destination storage types and storage bins in for each external steps here one internal warehouse process types 3070 is used for internal stock movement                                                                                                                                                                                                                                                                                           

During outbound POSC we assign storage process at warehouse order creation rule and this warehouse order creation rule at warehouse process type

Defining warehouse order creation rule                                                                                                                                                                                                                                                        

Assigning warehouse order creation rule to warehouse process type                                 

Assign warehouse process type (N210) and assign WOCR and maintain destination storage type and storage bin as door and door bin respectively


Test case on outbound POSC with multi step Movements involving pick, pack, stage and load 


One outbound delivery is created and distrubuted into EWM system now, go to (T.Code /n/scwm/prdo) enter the ERP document number and execute                                                                                                                                                                                                                             

Create warehouse tasks for the warehouse request                                                                                                                                                                             

one main task is created to pick and place the stock at door for loading i.e the system is picking the stocks from RK01-01-06 bin and placing the stocks at door bin now confirm the task subsequent steps created to pack and stage the stocks in background

Creation of pick HU’s

For Picking, pick handling units are used to pick the stocks from respective storage bins to move the stocks into packing work center, here two things are possible either pick HU can be same as ship HU or Pick HU’s are unpacked and repacked into new handling unit to create ship HU                                                                                                                                                                                             

In simple words pick HU’s is the trolley or wire basket which is used to pick the stocks from the respective bins to packaging work packing work center pick HU’s are made into ship HU’s.

Warehouse tasks for picking can either be confirmed in background or go to warehouse monitor (T.Code-/n/scwm/mon) and confirm the picking warehouse tasks.


Picking will take place according to strategies defined from final storage bin where the stocks are finally kept during inbound process to outbound packing work center using pick HU’s i.e source bin is RK01-01-01-06 and RK02-04-02-01 to OBD-PACK-BIN  respectively after confirmation of picking warehouse tasks respectively now the stocks are available in packing work center for packing.

Now go to packing work center (T.Code- /n/scwm/pack)

Enter the warehouse number, work center and warehouse request number and execute one can see the stocks available in pack bin now there two possibilities either you can close the pick HU meaning that pick HU is equal to or same as ship HU or you can create two new pack material and create new ship HU’s to complete the packing step which is a part of POSC external step pack                                                                                                                                                                                             

Pick HU’s are available in packing work center either pick HU’s can be made build HU’s or change handling unit into new HU’s in our case pick HU’s is equal to ship Hu’s. Double click on HU and close the HU,new warehouse tasks will be created to move the HU from packing work center to GI staging area which can seen in the warehouse monitor.confirm these warehouse tasks in background and now the handling units are available in GI staging new warehouse task will be created to move the HU from GI staging area to door i.e last step in POSC process is loading which takes place at door

After packing and closing the HU a new warehouse task is created to move the HU from packing work center to staging area, now to warehouse monitor and confirm this task

Go to warehouse monitor and confirm the two new warehouse tasks to move the HU from packing work center to GI staging area as part of POSC external step staging

After confirming the tasks one new warehouse tasks is created to move the HU’s from GI staging area to warehouse door. confirm this new warehouse tasks to move the HU’S from GI staging area to door. after confirmation the HU’s are now available in door ready to be loaded after loading post the good issue after goods issue is being posted one new document is generated which is outbound delivery is final delivery

This completes the entire outbound POSC process with multi step movements involving pick, pack, stage and load


The configuration and test cases of executing outbound process, picking strategies and outbound POSC process involving pick, pack, stage and load gives an overview on execution of outbound process

The outbound process starts when customer raises sales order to ship for goods or stocks that are relevant to EWM managed warehouse. system generates a sales order, followed by creation of outbound delivery in ERP system and is replicated into Embedded EWM system as outbound delivery order (warehouse request) warehouse tasks for warehouse request are created to pick the stocks from their respective storage location (storage bins) using picking strategies. upon confirmation of warehouse tasks, stocks are now available in interim storage type generally referred as GI staging area where packing and other labelling activities can be done before shipping stocks to customers. Once stocks are shipped goods issue is posted which updates the stock levels in ERP system. upon posting the goods issue one more document is generated in EWM system which is referred as outbound delivery or final delivery. Reversal of goods issue can be made at outbound delivery or final delivery document. the entire process of picking and shipping of stocks to customers can be done in one or two steps but these movement of stock inside the warehouse could be still more complex due to restrictions on warehouse layout. for the multistep movements inside warehouse Process Oriented Storage Control (POSC) is used where all activities like picking, packing, staging and loading are executed individually before at separate storage types before shipping of stocks.