SAP S4/HANA Embedded EWM Configuration - Blog - step by step Guide - Organization structure (2024)

Introduction

As a Production consultant I have been asked many time in interview that, am I aware about EWM. So I am making this.

We can say EWM is evolution of Inventory management in SAP

Inventory Management (Storage location) -> Warehouse Management -> Extended warehouse management

Warehouse (WM) vs Storage location (IM)

In Storage location we can get how much stock we have in a location.

But in EWM we can get exactly in which location, at which place the product is exactly located (Storage bin).

Warehouses require larger spaces and are mostly located in remote areas i.e. outside the plant, where large land mass is available. It enables you to store, ship, and distribute your goods from one single location. This makes it easy for you to track and manage your inventory efficiently.

On the other hand, storage facilities are located mostly inside the plant since they need to be easily accessible to customers and for production.

Image of Warehouse in business

Why Extended Warehouse?

In SAP WM has been overtaken by EMW. EWM has thesamebasic core functionalities as WMbutwith additional capabilities, such as labor managementand internal routing.SAP originally wanted to phase out the WM module by the end of 2025.

Process flow difference - WM vs EWM

EWM also have 2 versions, Like PPDS in APO and PPDS in S4HANA.

1. Decentralized EWM - 2 separate client system i.e. we need to do transaction with 2 user credentials
2. Embedded EWM - 1 client system.

Here I am explaining the Embedded Extended warehouse Management process

This is embedded PPDS in S4Hana version. So only one system credential is enough. Even though the EWM system will be configured as Logical system (Soul) inside S4Hana. So the transactions which are happening in ERP will be communicated to EWM logical system.

So here the warehouse number need to be created in 2 places both in ERP and EWM as like Plant and Location in ERP and PPDS. For example

To have a overview about EMW please go throughLink

Prerequisites on Basis

Check for Logical system configuration.

Integration with Other SAP Components - Extended Warehouse Management - Basic Settings for Setting Up the System Landscape - Name Logical System

The highlighted one should be there.

Check forAssign Logical System to a Client

Integration with Other SAP Components - Extended Warehouse Management - Basic Settings for Setting Up the System Landscape - Assign Logical System to a Client

Check forSet Up RFC Destination

Integration with Other SAP Components - Extended Warehouse Management - Basic Settings for Setting Up the System Landscape - Set Up RFC Destination

The highlighted one should be there.

Check for the business function in SFW5

Check for the highlighted entries in table TBLSYSDEST via SE16N

Main Part.

Overview on Configuration

To do EWM transaction we have the below configuration to be done at first.

1. Define the Plant, Storage location, Shipping point, Warehouse number - 3 digits in ERP System
2. Assign ERP Warehouse Number to Plant and Storage Location
3. Assign shipping point to plant
4. Assign the Shipping point condition to Plant and to Shipping Point
5. Assign storage location to shipping point
6. Create EWM warehouse numbers - 4 digits
7. Create BP
8. Create Supply Chain Unit - Tcode /n/SCWM/SCUMAIN
9. Assign BP & SCU to EWM Warehouse Number PED - SCPR20 - /SCWM/WH_NUMBER
10. Creating the EWM parameters related to ERP
11. Define Warehouse numbercontrol
12. Create plant and shipping point as locations in EWM via program /SAPAPO/create_location
13. Validate the same in /n/SAPAPO/LOC3 - shipping point will have SP in prefix
14. Define storage type
15. Define storage section
16. Define storage bin type
17. Define staging area
18. Define storage BIN type.
19. Define storage access type.
20. Create storage bin in EWM via /SCWM/LS01 or upload program or using template
21. Define Storage bin identifiers
22. Define Storage bin structure
23. Create activity
24. Define activity area
25. Assign the storage type to activity area
26. Generate Activity Area from Storage Type
27. Define sort sequence for activity areas.
28. Create sorting procedure via upload program /SCWM/SRTUP
29. Create staging area
30. Create staging area door determination group
31. Create warehouse door
32. Assign staging area/door determination door determination group
33. Assign the staging area door determination rule in EWM product - /SCWM/MAT1
34. Assign BP to plant
35. Map ERP storage location to EWM
36. Define/Copy Warehouse number range combination for document types.
37. Assign ERP warehouse to EWM warehouse
38. Generate Distribution Model for Transaction Data Transfer to SAP EWM
39. Create material master in MM01 in storage location and add additional unit of measure
40. Check the same in APO via /SAPAPO/MAT1 in global data
41. Create the same in EWM via /SCWM/MAT1 at your location

1. Organization Structure

In EWM Warehouse is at the top in hierarchy.

Define the below to setup EWM system for doing transaction

1.a. Plant - OX10

The company is considered as plant. The plant I created is 1111

Enterprise Structure - Definition - Logistics - General - Define Plant

I would suggest you to better copy the SAP best practice plant. So that you can configure it later.

1.b. Storage Location - OX09

You can consider the place where the materials are stored as storage location. Here I created two AFS and ROD. In AFS the finished materials available for sale will be kept which is near by shipping point, so that it can be taken easily. And in ROD the materials just received will be kept and it will be near to loading and unloading point, so that it will be easy to put the materials in to racks whenever its unloaded.

Enterprise Structure - Definition - Materials Management - Maintain storage location

1.c. Shipping Point - OVXD

The place were the truck will stand & take the ordered materials to customer

Enterprise Structure - Definition - Logistics Execution - Define Shipping Point

1.d. Warehouse Number - EC18- (This is ECC/ S4HANA Warehouse only 3 digits)

You can consider all the area, Storage location, shipping point... as warehouse.

Enterprise Structure - Definition - Logistics Execution - Define Warehouse Number

2. Assign ERP Warehouse Number to Plant and Storage Location

Here we are mapping the plant 1111, warehouse EWM and storage location ROD, AFS together

Enterprise Structure - Assignment - Logistics Execution - Assign Warehouse Number to Plant and Storage Location

3.Assign shipping point to plant

Here we have to assign the shipping point SHPP to newly created plant 1111

Enterprise Structure - Assignment - Logistics Execution - Assign shipping point to plant

4. Assign the Shipping point condition to Plant and to Shipping Point

Here we need to do the sales configuration of Shipping condition

Logistics Execution - Shipping - Basic Shipping Functions - Shipping Point and Goods Receiving Point - Determination - AssignShipping Points

5. Assign storage location to shipping point

Here we have to assign the storage location to the shipping point

Logistics Execution - Shipping - Basic Shipping Functions - Shipping Point and Goods Receiving Point - Determination -Assign Goods Receiving Points for Inbound Deliveries

6. Define Warehouse Numbers - (This is for EWM system)

Later we create Warehouse number for ERP and now we have to create it for EWM Logical system.

SCM Extended Warehouse Management - Extended Warehouse Management - Master Data - Define Warehouse Numbers

7. Create one Business Partner in supplier

Transaction code BP, seeLinkto how to create. It need to be maintained in SCU.

Party Entitled to Dispose (PED) : Ownership of the Material

If EWM warehouse is connected to more that one plant then stock for those plant in EWM warehouse will get differentiated with Ref to PED

8. Create supply chain unit

SCU is Physical location i.e. Address to our warehouse.

Transaction code: /SCMB/SCUMAIN - created SCU-WEWM , Type 1008. Also you need to maintain the alternatives. Otherwise you could not assign it to Warehouse.

9. Assign warehouse numbers to SCU.

Assign the Owner, PED, SCU to the warehouse. All are BP

SCM EWM - EWM - master data - Assign warehouse numbers

10. Creating the EWM parameters related to ERP

Integration with other SAP system - Extended warehouse management - Basic settings for EWM linkage- configure EWM specific parameters

When you create the warehouse number in ERP it will automatically create this entry. Here you need to change the external WM as EWM.

11. Define Warehouse numbercontrol

Here you can define the dimensions for the warehouse and it will be populated to your bin type while creating it.

SCM Extended Warehouse Management - Extended Warehouse Management - Master Data - Define Warehouse Number Control

12. Create plant and shipping point as locations in EWM via program /SAPAPO/create_location via SE38

This will create the location (1111) and shipping point (SP_SHPP) in EWM.

13. You can check the same in /n/SAPAPO/LOC3

Shipping point will have SP in prefix

14. Define storage type

You can say warehouse starts from storage type. There are different types of storage types. All are differentiated by the storage type role.

Standard Storage Type, A - Identification Point , B - Pick Point, C - Identification and Pick Point, D - Staging Area Group, E - Work Center, F - Doors, G - Yard, H - Automatic Storage Retrieval (Material Flow Control), I - Work Center in Staging Areas Group, J - Automatic Warehouse (Controlled by MFS), K - Production Supply

You can ask why this door and staging area are considered as storage type because on these area also the materials will be stored for some time. Since these are also considered as storage types.

SCM EWM - EWM - master data - define storage type

For Normal storage type please maintain these

confirm put away , Put away complete, Delete stock identification , put away rule 4 - addition to existing stock, Confirm removal, availability group 002,Storage type role as empty

For Staging area storage type please maintain these

conf put away , Confirm removal, put away rule - General storage area, Storage type role D

For production we mostly use Production supply area.

15. Define Storage section

Storage type were further divided to section. Here I have created 2 sections per storage type

SCM EWM - EWM - master data - Storage section

16. Define Storage Bin type.

Storage sections are further divided into Bins. It can be tote, cage, pallet. So its need to be defined in system

SCM EWM - EWM - master data - Storage bin - Storage bin Type

As mentioned earlier these highlighted values coming from warehouse control number

17. Define Storage bin access type.

It will define how the bins can bee accessed.Fork lift, Manual, Reach truck, Order Picker.

SCM EWM - EWM - master data - Storage Bin - Storage bin access type

18. Define Storage bin identifiers

It will define the structure for the storage type.

SCM EWM - EWM - master data - Storage Bin - Define storage bin identifiers.

19. Define Storage bin structure

Here whatever we defined all we need to mention here

SCM EWM - EWM - master data - Storage Bin - Define storage bin structure

20. Create Storage bin - EWM Master data

We can create storage bin by following method

1.Create storage bin : /n/SCWM/LS01

2.Generate storage bin using Template

3.Upload Program - /n/SCWM/SBUP (Not shown here)

For loading the storage location we need to define bin identifiers and structure.

Create Storage bin in Mass using /n/SCWM/LS10

You can do Mass change using/n/SCWM/LS11

21. Create activity

SCM EWM - EWM - master data - Activity areas - activities- Define activity for activity area

22. Define activity area

Its Just combination of storage types.

Its an area to execute the activities , PTW, Picking , Internal movement etc.

SCM EWM - EWM - master data - Define activity area

23. Assign the storage type to activity area

SCM EWM - EWM - master data - Assign the storage type to activity area

24. Generate Activity Area from Storage Type

SCM Extended Warehouse Management - Extended Warehouse Management- Master Data - Activity Areas - Generate Activity Area from Storage Type. This will create set of sorting activity area where you need to add sorting conditions.

25. Define sort sequence for activity areas.

So this will create a sorting sequence for the storage locations grouped in the activity area.

SCM Extended Warehouse Management - Extended Warehouse Management - Master Data - Activity Areas - Define Sort Sequence for Activity Areas

27. Do sorting for Storage binsvia upload program /SCWM/SRTUP

But we can do it one by one via/SCWM/SBST

Based on shorting procedure the bins are filled from bottom level to top but last stack to first stack.

28. Create staging area Group (Staging Storage Type)

We have defined the staging area Storage type and section. But it should be differentiated by this setting further. For GR we have 2 staging area and for GI we have 2 staging area.

SCM EWM - EWM - master data - Staging areas - Define staging area

Simply you can say
staging area group = staging storage type ST01/ST02 and
staging area = staging section SGR1/SGI1

29. Define Staging Area and Door Determination Groups - Optional

SCM Extended Warehouse Management - Extended Warehouse Management - Master Data - Staging Areas - Define Staging Area and Door Determination Groups

31. Create warehouse door

Here define which doors are for inbound and which are for outbound

SCM EWM - EWM - master data - warehouse door - Define warehouse door

32. Assign staging area/door determination door determination group

SCM EWM - EWM - master data - warehouse door - Assign staging area/Door determination Group to door

33. Assign the staging area door determination rule in EWM product

The stock comes from DGR1 should go to staging area ST01-SGR1 and stock from DGI2 to ST02-SGI2

SCM EWM - EWM - master data - warehouse door - Assign the staging area door determination rule in EWM product

34. Assign BP to plant

The BP is assigned to plant so that it will be fetched in next step automatically. See the disposal party here and next screenshot.

SCM EWM - EWM - Interfaces - ERP integration - General settings - Assign BP to plant

35. Map ERP storage location to EWM

Here the ROD should have the availability group as 001 and the AFS should have the availability group as 002.

SCM EWM - EWM - Interfaces - ERP integration - Goods movement - Map storage location from ERP system to EWM

36. Define Number ranges

SCM Extended Warehouse Management - Extended Warehouse Management - Master Data - Define Number Ranges- Create NR for all documents and assign it respectively.

37. Assign ERP warehouse to EWM warehouse

We have to map the ERP warehouse EWM to the EWM warehouse EMW0 to guide system which is which

SCM EWM - EWM - Interfaces - ERP integration - General settings - Assign warehouse number from logical executions

38. Generate Distribution Model for Transaction Data Transfer to SAP EWM

Without this step the inbound / Outbound deliveries will not transfer between EWM and ERP

Integration with Other SAP Components - Extended Warehouse Management - Basic Settings for EWM Linkage - Generate Distribution Model for Transaction Data Transfer to SAP EWM

Once created you can check the same in BD64

39. Create material master in ERP via MM01 in storage location ROD, AFS also add additional unit of measure

check the same in APO via /SAPAPO/MAT1 in global data

40. Create the same in EWM via /SCWM/MAT1

Now create one dummy storage bin and assign it to dummy Process type and create PO, Inbound Delivery VL31N, and do the test

Create one dummy storage bin and assigned it to one process type

SCM Extended Warehouse Management - Extended Warehouse Management - Cross-Process Settings - Warehouse Task - Define Warehouse Process Type

Create one PO in ME21N (Confirmation Control Must) and Inbound delivery in VL31N.

Later in /n/SCWM/PRDI we can see inbound delivery.

If its not creating any WO then check in SMQ2 for error and correct it accordingly. Later do GR to close the cycle

Conclusion

This Blog will give you an overview on configuring EWM system.

Please comment if there are any changes. Also please guide if there are more links to read.