Warehouse Concept and Terminology



Warehouse management helps to identify the stock of material at bin level.


It is a tool to assist in processing all goods movement and maintaining inventories at warehouse.


Warehouse management process initiated by inventory management apart from that, it is integrated with SD, QM and PP Module.


GR/GI and posting changes are initiated in IM and processed in WM.


In SD shipping integrates WM through delivery document while in QM it allows to trace material inspection lot in warehouse.


Org Structure




WM Terminologies



Storage location-Physical location within plant for storage and movement of material.


Warehouse-Area designated inside storage location, it is not concern with values.

Warehouse number uniquely identifies warehouse.


Storage Type- a groping of storage according to its nature is storage type.

e.g. Bin,Shlet,Drum


Storage Section-Logical grouping of storage type is storage section.


Storage Bin an individual location in warehouse.


Quant- it is material and bin combination. smallest level of storage in WM

There may be many quants it means one bin can have more then one material.


Warehouse Structure



Movement in WM


Inventory management movement triggers a movement in WM.

After IM material posted in interim storage type in WM known as logical storage type.


At this stage system creates transfer request as WM Document.



Transfer request is a request to move material auto triggered by transaction on some other function

which required mvt type. e.g. GR,GI,Tr



Transfer Order is a instruction to move material from warehouse.

It contains material no, qty, source location, destination location.

Each transfer order must be confirmed, confirmation of TO ensures the issue/receipt of material in right bin.






WM Strategies


Put a way and Picking strategies are used by sap to expedite bin search more effectively and easily.


During transfer order creation system auto defines the storage bin.

In addition to this manual intervention is also possible.