SAP EWM INTERVIEW QUESTIONS,

ANSWERS AND EXPLAINATIONS

Q1. Explain SAP Extended Warehouse

Management EWM?

Answer: SAP EWM is used to efficiently manage

inventory in Warehouse and for supporting
processing of goods movement. It allows
company to control their Warehouse inbound and
outbound processes and movement of goods in
Warehouse.

The main process in a Warehouse is incoming

and outgoing materials, goods receipt and goods
issue, fulfil customer orders, and distribution of
goods. When a company doesn’t store any
goods, then there is no need of Warehouse
management to manage goods.

Inbound process involves Storage of goods in

Warehouse and their location and Outbound
process involves picking up the goods.
Whenever a material is stored in a Warehouse, it
is stored in Storage Bin and you can find its
current location.

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Q2. How SAP EWM is different from SAP
Warehouse Management?

Answer: SAP EWM is part of SAP Supply chain

management like Warehouse management
system but provides more robust and advance
features to manage key activities in Warehouse.

SAP Extended Warehouse Management EWM is

like Warehouse management, but it provides
more features like picking, put away, RF
framework, Warehouse structure and more
flexible options to manage Warehouse functions.

You can create new elements like activity area,

resources, labor management and work centers
in SAP EWM which were not available in WM.

SAP EWM provides more robust solution to

manage Warehouse functions in an organization.
It is also a part of SAP Supply Chain
Management and also support all the processes
within logistics and supply chain.

Q3. What are the key features in SAP

Warehouse Management?

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Answer: Below are the key features

in SAP Warehouse management −

● Using SAP EWM, you can control

Warehouse activities- picking, posting, and
managing Storage Bin and good receipts.
● You can set alert for- changed data before
goods receipt from EWM to the ERP system,
reversal, or correction of the goods receipt
from EWM to the ERP system and an
inbound delivery split from EWM to the ERP
system.
● You can perform deconsolidation of handling
units contain different Products before put
away in different Storage sections.
● You can determine Storage concepts using
slotting for Products and optimize
arrangement of goods Warehouse
automatically.
● It allows you to perform executable tasks like
work packages, consisting of Warehouse
tasks Warehouse employees should perform
as part of Warehouse management
activities.
● It allows you to manage track vehicles and
transportation units from yard check-in to
yard checkout, including movements’ tasks
within the yard.

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 ● SAP EWM also includes Storage and
handling of hazardous substances and their
transportation in accordance with regulations
from SAP Environmental Health & Safety
EHS.

● In SAP EWM, you can also plan labor times

and resources more effectively and hence
you can make your Warehouse efficient by
managing key resource management tasks
effectively.
● In SAP EWM, you can use Warehouse
cockpit that allows you to display Warehouse
key figures graphically and to evaluate or
monitor activities using defined chart types.
● You can use cross-docking that allows you to
perform transportation of handling units
across different distribution centers or
Warehouses till they reach final location in
Warehouse.

Q4. What are the different deployment options in

EWM?

Answer: SAP EWM can be considered as

deployed in ERP server or you can also consider
it as an application in Supply chain Management
landscape.

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SAP EWM is integrated with ERP to access
transaction and master data and use of features
like slotting, availability check also requires
integration with CRM.

SAP EWM is considered as separate application

and share the same server with SCM
applications. You can also run SAP EWM in its
own SCM environment which is suitable to get
improved performance.

EWM Deployment options −

● SAP EWM on SCM Server

● SAP EWM as Standalone

Q5. How SAP ERP system communicates with

Extended Warehouse Management or CM with
APO system?

Answer: SAP ERP and EWM are closely

integrated with each other for transfer of
transaction and master data. There are two
different ways of communication.

Core Interface (CIF) −

Core interface is one of the common methods for

communication between SAP SCM system and

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SAP Advanced Planning and Optimization APO.
Master data maintained in ERP system like
customer, material and vendor which are
available in ERP system are transferred to EWM
system use Core Interface CIF communication.

How do you check various menu structure of

Extended Warehouse management system?

Login to SCM system and navigate to Extended

Warehouse management node in SAP menu.
You can use various transactions to manage
basic functions in Warehouse management −

Warehouse Monitor /SCWM/MON

Maintain Inbound Delivery /SCWM/PRDI
Maintain Outbound Delivery /SCWM/PRDO
RF Environment /SCWM/RFUI
Creating Storage Bin /SCWM/LS01
Confirm Warehouse Task
/SCWM/TO_CO
NF
Warehouse Product Maintenance
/SCWM/MAT1

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Q6. What are the different Organizational

units in Warehouse Management?

Answer:

● Warehouse Number
● Storage Type
● Storage Section
● Storage Bin
● Activity Areas
● Quant

Q7. What is Storage Bin?

Answer: Storage Bins represent the physical

location of Storage space where the Products are
stored in Warehouse. They are at lowest level of
organization structure and when you store an
item in a Warehouse you need to mention its
exact location.

Q8. What is the use of Activity areas in Storage

Bin?

Answer: Storage Bins are further categorized in

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activity area. It includes activities like picking, put
away or a physical inventory. As per activity, you
can assign same Storage Bin to multiple activity
areas.

Q9. What is Quant?

Answer: The quantity of goods in Storage Bin is

represented by Quant. The quant is used for
managing inventory in Storage Bin.

Q10. How can you create Storage Bins?

Answer: To create a Storage Bin, you can use T-

Code: /SCWM/LS01

Q11. What are the structure elements

in a Warehouse management?

Answer: Warehouse consists of

following elements in hierarchical

structure −

● Warehouse Number
● Storage Type
● Storage Section
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 ● Storage Bin
● Activity Area

Q12. What is the highest unit and smallest unit in a

Warehouse structure?

Answer: The highest unit in a Warehouse is

Warehouse number and smallest unit is a
Storage Bin.

Q13. What is a Storage section? Provide examples

of Storage section?
Answer: This is part of Storage type and
represents a group of Bins with same
characteristics. Commonly used Storage
sections are fast moving or slow-moving items,
etc.

Q14. What is Work Center in a Warehouse?

Answer: A work center in Warehouse is

assigned to a Storage type and a physical unit to
perform packing, deconsolidation or weighing
activities. Storage type assigned to work center
has a role of work center, pick point or pick point
and identification. You can also configure more
than work center in a Storage type.

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Q15. Where do you use Work

Centers in Warehouse

processes?

Answer: Work center can be used

for the following processes −

● Packing
● Deconsolidation
● Counting
● Quality check

Q16. How can you create a work

center for packing in SAP EWM

system?

Answer: To create a work center for

packing, you need information −

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 ● Warehouse
● Storage Type
● Inbound Section
● Outbound Section

To define a work center, navigate to Extended

Warehouse management → Master Data →
Work Center → Define Work Center.

Q17. What are different Warehouse process types

in SAP EWM system?

Answer: There are different Warehouse process

categories that are predefined in EWM system −

● Stock Removal
● Putaway
● Internal Movement
● Goods receipt posting
● Goods issue posting
● Physical inventory
● Cross Line Putaway

Q18. What is Value Added Services in Warehouse

management?

Answer: Value Added Services define the

Product processing to be performed in a
Warehouse and includes activities like packing,

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labeling, assembling, etc.

Q19. How do you inform employees about the

work that they have to do as part of delivery and
packing specifications?
Answer: VAS order informs Warehouse
employees about the work that they must do as
part of delivery and packing specifications.

Q20. What are the different

components in a Value-Added

Order?

Answer: A Value-added services order

consists of the following components −

● Order Header
● VAS activities to be performed
● Items
● Auxiliary Products (Packing material, labels,
oil, etc.)

Q21. Where do you manage Packaging

specifications?

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Answer: Go to SAP Easy access → EWM →
Master Data → Packaging Specification →
Maintain Packaging specification.

Q22. How do you perform direct Goods Issue in

SAP EWM system?

Answer: The goods issue process in extended

Warehouse management starts with outbound
delivery request. When an outbound delivery
document is created, this process starts in ERP
system. For items that are relevant in EWM,
delivery document is replicated in SAP EWM
system.

Q23. What do you understand by Stock Removal

Strategy?

Answer: Stock removal strategy is method of

determining Storage Bins for one or more
Products to be picked. You can customize stock
removal rule definition table in customizing for
SCM extended Warehouse management.

Q24. What do you understand by Denial Scenario

in Outbound Delivery system?

Answer: When an outbound delivery request is

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created, EWM system doesn’t create a
Warehouse task or task is created with a partial
quantity, this is called Denial scenario.

Q25. When do you use Denial scenario in

outbound delivery in EWM system?

Answer: When a Warehouse task can’t meet the

quantity requested in outbound delivery request,
system can be configured to raise a pick denial.

In case of stock discrepancy picked by an

employee, smaller quantity as per outbound
delivery and no other stock is available in
Warehouse, you can set the system to execute a
pick denial.

Q26. What is Storage Control?

Answer: Storage control is used to determine

Product movements in Warehouse. It is used to
execute put away or stock removal process in
Warehouse.

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Q27. What are the different

types of Storage Control?

Answer:

● Layout Oriented
● Process Oriented

Q28. In ComBined Storage Control, which one is

executed first?

Answer: In SAP Extended Warehouse

management, process-oriented Storage control
is executed first and layout Storage control is
executed to check if put away step is possible in
Warehouse layout view and also adjust the put
away or stock removal as per layout view.

Q29. When no Storage location is specified for

picking in Order Item, what happens?

Answer: System determines the Storage

location when it creates outbound delivery and
copies it to delivery item.

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Q30. In EWM, where do you find exact
whereabouts of a material quantity in the
Warehouse?

Answer: Storage Bins

Q31. What are the transactions available to

create a transfer order for moving partial stocks
within a Warehouse?

Answer:

● LT01
● LT10

Q32. What is the goods movement status of the

outbound delivery after a goods issue has been
cancelled?

Answer: Not yet started

Q33. What is pick pack and pass of goods in EWM

system?

Answer: This is used to manage picking, packing

and transportation of goods in activity areas in

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Warehouse. This can be used in RF
environment commonly and process flow is
same as for standard RF process. In pick, pack
and pass goods are moved from activity area to
activity area till it arrives at destination point in the
system.

Q34. What is the difference between System

Controlled and User Controlled Pick, pack and
pass of goods?

Answer: You need a Warehouse order creation

rule that supports the top Warehouse order
creation for the pick, pack, and pass process. The
creation categories for this are −

System-driven −

For the system-driven option, the sequence of

the Warehouse orders in the top Warehouse
order is determined according to the sort
sequence of the assigned in the configuration
settings for joining the activity areas.

User-driven –
For the user-driven option, the sequence is
manually determined during the execution, which
means it can also be done by the material flow

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system (MFS).

Q35. What is Replenishment in SAP EWM?

Answer: Replenishment is defined as movement

of goods from Warehouse to shipment locations.
In SAP EWM, you can use predefined techniques
for replenishment of Storage Bins. There are
different replenishment control fields defined at
Storage type level or Storage Bin level. The data
for control fields can be entered manually in
system or you can use slotting process to define
these fields.

Q36. What are common Control

fields in Replenishment?

Answer: Below are the common

control fields for Replenishment −

● Minimum stocking quantity

● Maximum stocking quantity
● Replenishment quantity

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Q37. What is Planned

Replenishment and Order

Replenishment? Answer:

Planned Replenishment −

Planned replenishment can be performed either

interactively or in the background. The system
calculates the replenishment in accordance with
the defined minimum quantity and maximum
quantity. Replenishment control is triggered
when the stock is less than the minimum quantity.

Order Related Replenishment −

Order related replenishment is performed when

stock figure is less than required quantity. The
system rounds up the replenishment quantity to
a multiple of minimum replenishment quantity.
The maximum quantity can be exceeded, and
order related replenishment can be performed in
background or interactively.

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Q38. What is automatic and

direct Replenishment? Answer:

Automatic Replenishment −

The system starts automatic replenishment when

a Warehouse task is confirmed. Replenishment is
calculated as per maximum and minimum activity.

Direct Replenishment −

Direct Replenishment is started during a pick

denial and is only possible for fixed Bin scenario.
The system calculates replenishment as per
maximum and minimum quantity.

Direct replenishment is performed by picket and it

assume zero Storage Bin quantity.
Q39. Why do you use Physical inventor in SAP
EWM?

Answer: To perform financial accounting and tax

regulations, you may need to perform accurate
inventory to get the value of an inventory in
Warehouse. Physical inventory process deals
with counting physical inventory of a Warehouse
and to get counting results.

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Physical inventory can be used by management
to count inventory so that Product can be
stocked or corrected.

Q40. What are the different type of Physical

inventory?

Answer: There are two types of physical inventory

that can be performed −

1. Storage Bin specific

2. Product Specific

Q41. What are the different Physical inventory

procedures supported in SAP system? Answer:

● Periodic
● Continuous
● Cycle Counting

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Q42. What is an Ad-hoc

Physical inventory?

Answer:

Ad-hoc physical inventory is type of continuous

physical inventory and It can be executed anytime
during the fiscal year, an ad hoc physical
inventory may become necessary.

Q43. What is Slotting process in EWM? What are

different parameters used in Slotting?

Answer: Slotting is a process in EWM to define

most suitable Putaway parameters- Storage
type, section, etc. Slotting places the good in a
Warehouse in the manner that provides most
optimal Storage and picking of goods.

There are different parameters that are used in

slotting process −

● Storage Requirement Data

● Product Data
● Packaging Data
● Demand Forecast

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Q44. What is Direct and

Indirect labor?

Answer:

Direct Labor −

This includes time to perform Warehouse activities

like picking, packing, put away, etc.
Indirect Labor −

This includes extra activities to manage

Warehouse like Sweeping, cleaning,
housekeeping etc.

Q45. What is Expected Good Receipts?

Answer: Expected good receipts are used to

create inbound deliveries. You can also create
goods receipt in EWM system without an inbound
delivery.

Advantages of using good receipt −

● This process occurs in EWM system only.

● If your ERP system is down, you can still

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 execute expected goods receipt in EWM.
● Expected goods receipt is based on data
in Production order so it can be used as
preview of goods receipt.
● This process requires two documents to be
used in EWM system −
o Notification Expected goods receipt

o Expected goods receipt

Q46. What is Cross docking in SAP EWM system?

Why do we use Cross docking?

Answer: Cross Docking allows you to reduce the

costs of goods transportation in Warehouse and
shorten the time needed for delivery. Cross
docking only creates one movement GR Zone to
GI Zone and can only be used if stock for removal
is not determined by First in first out.

Q47. What the different types are of cross

docking?

Answer: There are different types of cross docking

available in SAP system −

● Transportation cross docking

● Merchandise Distribution
● Push deployment

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 ● Pick from goods receipt
● Opportunistic Cross docking

Q48. What is the use of RF framework in EWM

system? What are the functions that can be
performed using RF framework?

Answer: In SAP EWM, RF stands for radio

frequency mobile data entry that allows real time
communication between Warehouse employees
and EWM system.

RF framework supports both browser based and

GUI devices to connect to SAP system. You can
create screen templates and merge them to a so-
called display profile. This display profile is
assigned to the presentation device.

RF framework in SAP EWM system provides all

Warehouse functionalities −

● Loading
● Unloading
● Deconsolidation
● Put away
● Picking
● Packing
● Replenishment
● Physical inventory

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Q49. The outbound delivery plant for each item
is defined in the order. The system can
automatically determine the outbound delivery
plant. Identity the highest priority outbound
delivery plant in descending priority order?

Answer:

● Outbound delivery plant defined in Customer

material information master record, outbound
delivery plant defined in ship-to party master
record, Outbound delivery plant defined in
material master

Q50. What happens when no Storage location for

picking is specified in the order item? Answer:

a) The system determines the Storage location

when it creates the outbound delivery and
copies it into the delivery item.
b) The Storage location entered in the order item is

used in the outbound delivery

Q51. What is the goods movement status of the
outbound delivery after a goods issue has been
cancelled?

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Answer:

● Not yet started

Q52. You must always specify a batch before

goods are issued. What is the solution if the
delivery quantities of an item are to be taken
from different batches?

Answer:

In Warehouse Management
Manually in the batch split screen of the delivery
item
Using automatic batch determination when
creating the outbound delivery
Q53. What is the requirement for the Purchase
order items that are included when the inbound
delivery is created?

Answer:

● They should have confirmation control key

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Q54. Movements involving the Inventory
Management system use Storage areas that are
defined as Storage types in the Warehouse
Management system and as Storage locations in
the IM system. The goods receipt for a purchase
order is posted first in Inventory Management
and the goods are then brought into the
Warehouse via a Storage area, the goods
receipt area. What are these Storage areas
called?

Answer:

Interim Storage area

The interim Storage area plays a special role
and can be generally be recognized at first
glance in the standard system by their key
(which starts with a 9). These Storage areas
form a sort of bridge to Inventory Management.
Good receipt area and goods issue area are
typical examples of interim Storage areas.
Q55. Where can we find exact whereabouts of a
material quantity in the Warehouse?

Answer:
Storage Bins
In Warehouse Management, Storage Bins are
master data created either from the application

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menu or in Customizing.
Based on this master data, the stock overview
in Warehouse Management shows the exact
whereabouts of a material quantity in the
Warehouse.
Q56. Some kinds of material; for example,
certain fluids are not suited to interim Storage in
a goods receipt area. They are taken directly to
the destination Storage Bin when they arrive (for
example, in a road tanker). In this case, the
goods receipt posting in the Inventory
Management should not trigger the creation of
transfer requirement. How can we set this?

● Special movement indicator

Q57. Sometimes a customer cancels an order at

the last minute or wants to postpone the delivery
until a much later time than planned. If the goods
have already been picked and taken to the
goods issue area, they have to be returned to
Storage. What is the transaction available and
what are its functions?

Transaction LT0G
You can return an entire delivery quantity to
Storage
You can return the quantity from individual

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 transfer order items

Q58. What are the transactions available to

create a transfer order for moving partial stocks
within a Warehouse number?

Answer:

● LT01
● LT10

Two transactions are available to create a

transfer order for moving partial stocks within
a Warehouse number:

Create Transfer Order without Source

Object (transaction code LT01) Create
Transfer Order from Stock List
(transaction code LT10)

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