CASE STUDY

Warehouse Management (WM) IV

This case study explains the integrated warehouse management process of the
physical inventory. A storage bin is checked by means of a continuous physical
inventory.

Product MOTIVATION PREREQUISITES

S/4HANA 2020 Warehousing is of significant Before using this case study, you
Global Bike importance for logistics. should be familiar with navigation in
the SAP system.
Fiori 3.0 For a company, it is of central
importance to know about the In order to work through this case
precise inventory quantities and study successfully, it is not necessary
Level inventory values of its warehouse to have finished the WM exercises
Beginner complex. The warehouse although it is recommendable.
management thus gathers all
Focus position outflows and inflows both Notes
Warehouse Management quantitatively and qualitatively.
This case study uses the Global Bike
Incorrect postings, shrinkage, and
(GB) data set, which was created
operational errors, however, might
Authors lead to stock differences.
exclusively for SAP UA global
Chris Bernhardt curricula.
Stefan Weidner In order to reveal missing
quantities and differences and in
Version order to gather physical stocks, the
4.1 warehouse management draws on
physical inventory.
Last Update
June 2022

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Process Overview

Learning Objective Conduct a physical inventory in the warehouse Time 60 min

management.
Scenario An internal security audit showed that, until now, there has been a
mistake in the security concept. Through this mistake, unauthorized persons
could have gained access to the pallet warehouse of the San Diego
warehouse. For this reason, a continuous physical inventory will be
conducted for all pallet warehouses that, according to the inventory control,
contain materials and goods.
Employees involved Carolin Bruzik (Warehouse Supervisor)
Sunil Gupta (Warehouse Employee)

The basis of a physical inventory in the SAP S/4HANA Warehouse Management is a system
inventory record. In contrast to the sample-based physical inventory, documents are created
directly when performing the continuous physical inventory because of the low number of storage
bins that have to be checked. The affected storage bins are earmarked for counting and a status is
set against the storage bin. In the next step, the activation of the physical inventory document
causes the lock of all storage bins that are listed in the document but this can only be conducted if
all outstanding transportation orders to the destinations have been completed beforehand. The
lock can only be released after clearing the inventory - a manual release is not possible.

After the counting, the results have to be entered into the system. The same applies to any
possible recounts. After the finalization of the physical inventory, the difference has to be cleared
in the warehouse management system. Since the locked storage bins are released by clearing, this
also applies if there are no differences.
Physical inventory is completed through the correction of the storage location stocks in MM
inventory management. Thereby, not only the quantity difference is updated, but also the value
difference.

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Table of Contents
Process Overview .................................................................................................................. 2
Step 1: Create and activate a physical inventory document .................................................. 4
Step 2: Display physical inventory document ....................................................................... 7
Step 3: Display bin status report ........................................................................................... 9
Step 4: Enter count results................................................................................................... 12
Step 5: Start recount ............................................................................................................ 14
Step 6: Enter recount ........................................................................................................... 16
Step 7: Display bin status report ......................................................................................... 18
Step 8: Clear differences in the warehouse management .................................................... 21
Step 9: Display bin status report ......................................................................................... 23
Step 10: Display warehouse inventory value ...................................................................... 25
Step 11: Clear the differences in MM inventory management ........................................... 27
Step 12: Display warehouse inventory value ...................................................................... 29
WM IV Challenge ............................................................................................................... 31

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Step 1: Create and activate a physical inventory document

Task Create and activate a physical inventory document. Time 5 min

Short Description Use the SAP Fiori Launchpad to create a physical
inventory document
Name (Position) Carolin Bruzik (Warehouse Supervisor)

To create a physical inventory document, use in the Warehouse Management Fiori App
area on the Physical Inventory page in the Warehouse Supervisor role the
app Carry out Continuous Inventory.

In the screen Carry out Continuous Inventory, enter 100 as Warehouse 100
002
number, 002 as Storage type, STBN-*-### (do not forget to replace ### with STBN-*-###
your number) as Storage bin and LEARN-### as Name of counter. Also LEARN-###
Deselect Only bins not
make sure that the value Only bins not yet counted is not selected (this also yet counted
displays storage bins from completed inventories). Compare with the screen
below and confirm your entries with .

Note: The warehouse number is the highest level of organizational unit in

warehouse management. In practice, the warehouse number usually
corresponds to a physical building or distribution center. Each warehouse
number has a substructure that maps the spatial relationship in the warehouse
complex in detail.

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Storage bins are the lowest level of organizational structure. They are
assigned to a storage type and a storage section (if one exists). Storage bins
represent the physical location where the goods are stored in the warehouse.

In the following screen, deselect all storage bins except for STBN-9-###. STBN-9-###

Now click on Activate button and thus create a physical inventory

document. Through this process, the selected storage bins are blocked
against stock putaways and stock removals.

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Your will receive the following success message:

Click on to return to the SAP Fiori Launchpad.

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Step 2: Display physical inventory document

Task Display your physical inventory document. Time 5 min

Short Description Use the SAP Fiori Launchpad to watch your physical
inventory document.
Name (Position) Carolin Bruzik (Warehouse Supervisor)

To watch your physical inventory document, use in the Warehouse Fiori App
Management area on the Physical Inventory page in the Warehouse
Supervisor role the app Inventory Overview.

In the screen Inventory Overview, enter 100 as Warehouse number. Make 100

sure that all other screens are empty and click .

Use the name of counter in order to find and to select your physical
inventory document.

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Click on .

Check the inventory status, the storage bin, and the count date. Press
in order to see additional key figures of the inventory.

Click on to return to the SAP Fiori Launchpad.

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Step 3: Display bin status report

Task Check the status of your bin status report. Time 5 min
Short Description Use the SAP Fiori Launchpad in order to display the bin
status report, which displays a detailed report of each storage bin within the
specific warehouse.
Name (Position) Carolin Bruzik (Warehouse Supervisor)

To display the bin status report, use in the Warehouse Management area on Fiori App
the Physical Inventory page in the Warehouse Supervisor role the app Run
Bin Status Report.

In Bin Status Report: Initial Screen, enter 100 (for the San Diego 100
STBN*###
Warehouse) as Warehouse number and STBN*### as Storage bin (do not
forget to replace ### with your number). Press .

In Bin Status Report: Overview you should see that the storage bin STBN-9- STBN-9-###
### is filled. The screenshot below could be look different from your view.

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Click on your storage bin in order to receive more detailed information about
the warehoused goods. Additionally, this screen also includes information
about the current physical inventory status.

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Please note the total stock for both goods of this storage bin:
________________________________________________________
________________________________________________________

Click on to return to the SAP Fiori Launchpad.

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Step 4: Enter count results

Task Enter your count results in the S/4HANA System. Time 5 min
Short Description Use the SAP Fiori Launchpad in order to enter your
physical inventory document and the count information in the S/4HANA
System in accounting terms.
Name (Position) Sunil Gupta (Warehouse Employee)

To enter your count results, use in the Warehouse Management area on the Fiori App
Physical Inventory page in the Warehouse Employee role the app Enter
Inventory Count.

In the screen Enter Inventory Count: Initial Screen, enter 100 as Warehouse 100
Number and today’s date as Count date. Enter your Inventory Record Your Inventory Record
Number
number if it is not entered automatically. If you cannot remember your Today’s day
inventory record, please re-simulate the transaction of the previous step in
order to find it. Also please enter LEARN-### as name of counter. Press LEARN-###
Enter to confirm your entries.

In Enter Inventory Count: Overview, for the Material ORMN1###, add 5 ORMN1###
Actual value +5
units to the value of the previous step and enter this new value as counted ORWN1###
quantity. For the Material ORWN1###, enter the same value which you Actual value
have listed in the previous step. Press Enter.

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The deviation of the count result should be more than 20%.

For this reason, subsequently, a screen will open in which you will have to
confirm the data by pressing Enter.

Press to update your physical inventory document with the count

results.

Click on to return to the SAP Fiori Launchpad.

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Step 5: Start recount

Task Start the recount. Time 5 min

Short Description Use the SAP Fiori Launchpad in order to enter the data of
the recount.
Name (Position) Carolin Bruzik (Warehouse Supervisor)

To order to enter the recount, use in the Warehouse Management area on the Fiori App
Physical Inventory page in the Warehouse Supervisor role the app Start
recount.

In the screen Start Recount: Initial Screen, the number of your Inventory Inventory record
100
record and 100 as Warehouse Number should already be listed. If they are
not listed, please fill in the boxes. Press Enter.

If you cannot remember the number of your inventory record, you can
identify it once more as in the task Display Physical Inventory Document.

Make sure that your storage bin STBN-9-### is selected for the recount and STBN-9-###

start it by clicking .

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You will receive following succes message:

Click on to return to the SAP Fiori Launchpad.

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Step 6: Enter recount

Task Enter the count results of your recount into the S/4HANA System. Time 5 min
Short Description Use the SAP Fiori Launchpad to enter the count results
into the S/4HANA System.
Name (Position) Sunil Gupta (Warehouse Employee)

To enter the count result of the recount, use in the Warehouse Management Fiori App
area on the Physical Inventory page in the Warehouse Employee role the app
Enter Inventory Count.

In the screen Enter Inventory Count: Initial Screen, enter 100 as Warehouse 100
1
Number, 1 as Recount version, LEARN-### as Name of counter and LEARN-###
today’s date as Count date. Please enter your Inventory Record Number if Today’s date
Inventory Record
it is not listed automatically. Confirm your entries by pressing Enter. Number

In the screen Enter Inventory Count: Overview, enter the same data that was Same as in the first
count
entered in the first count. Please enter LEARN-### as Name of counter for LEARN-###
both positions. Press Enter.

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The deviation of the count result is 20%. Therefore, in the new screen that
will open subsequently, you have to confirm the data by pressing Enter.

Click in order to update your physical inventory document with the

recount results.

Click on to return to the SAP Fiori Launchpad.

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Step 7: Display bin status report

Task Check the status of your bin status report. Time 5 min
Short Description Use the SAP Fiori Launchpad in order to display the bin
status report that displays a detailed report of every storage bin within the
specific warehouse.
Name (Position) Carolin Bruzik (Warehouse Supervisor)

To display the bin status report, use in the Warehouse Management area on Fiori App
the Physical Inventory page in the Warehouse Supervisor role the app Run
Bin Status Report.

In Bin Status Report: Initial Screen, enter 100 (for your San Diego 100
STBN*###
warehouse) as Warehouse number and STBN*### as Storage bin (replace
### with your number). Click .

In Bin Status Report: Overview, you should notice that the storage bin
STBN-9-### is filled. The screenshot below could be look different from
your view.

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Click on your material ORMN1### in order to receive detailed information

of this quant and check if the amounts have already changed.

Note As you can see, small adjustments have been made since the stock
difference has not been booked into the warehouse management yet.

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Click on to return to the SAP Fiori Launchpad.

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Step 8: Clear differences in the warehouse management

Task Clear the differences in the warehouse management. Time 5 min

Short Description Use the SAP Fiori Launchpad in order to clear the stock
differences within the warehouse management.
Name (Position) Carolin Bruzik (Warehouse Supervisor)

To order to clear the differences, use in the Warehouse Management area on Fiori App
the Physical Inventory page in the Warehouse Supervisor role the app Clear
Differences in WM.

In the screen Clear Differences in WM: Initial Screen, the Warehouse 100
Inventory record
Number 100 and the number of your Inventory record should already be
entered. If this is not the case, please enter the corresponding figures. Press
Enter.

In the list of differences, select your storage bin STBN-9-###. Afterwards, STBN-9-###

click on .

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You will receive the following success message:

Click on to return to the SAP Fiori Launchpad.

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Step 9: Display bin status report

Task Recheck the bin status report. Time 5 min

Short Description Use the SAP Fiori Launchpad in order to watch the status
of your bin status report. It will offer a detailed overview over each storage
bin.
Name (Position) Carolin Bruzik (Warehouse Supervisor)

To display the bin status report, use in the Warehouse Management area on Fiori App
the Physical Inventory page in the Warehouse Supervisor role the app Run
Bin Status Report.

In Bin Status Report: Initial Screen, enter 100 as Warehouse number (for 100
STBN*###
your San Diego warehouse) and STBN*### as Storage bin (replace ### with
your number). Click .

In the screen Bin Status Report: Overview, click on your storage bin STBN- STBN-9-###
9-### in order to get detailed information. Make sure if the amount of your
ORMN1### was adjusted.

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Click on to return to the SAP Fiori Launchpad.

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Step 10: Display warehouse inventory value

Task Display the warehouse stock. Time 5 min

Short Description Use the SAP Fiori Launchpad in order to watch the
warehouse stock.
Name (Position) Carolin Bruzik (Warehouse Supervisor)

To display the warehouse stock, use in the Warehouse Management area on Fiori App
the Physical Inventory page in the Warehouse Supervisor role the app
Display Warehouse Stock.

In the screen Display Warehouse Stocks of Material, enter ORMN1### as ORMN1###

SD00
Material (replace ### with your number) and as SD00 as Plant. Make sure
that all boxes are empty and click .

Pay attention to the fact that the stock difference, although booked for the
warehouse management, is not cleared for the inventory management yet.
This becomes clear since the data for the distribution center San Diego
displays the old stock quantity.

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Click on to return to the SAP Fiori Launchpad.

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Step 11: Clear the differences in MM inventory management

Task Clear the differences in MM inventory management. Time 5 min

Short Description Use the SAP Fiori Launchpad in order to clear the stock
differences in the inventory management.
Name (Position) Carolin Bruzik (Warehouse Supervisor)

To clear the differences in the inventory management, use in the Warehouse Fiori App
Management area on the Physical Inventory page in the Warehouse
Supervisor role the app Clear Differences in Inventory Management.

In the screen Clearing of Differences in Inventory Management, enter 100 as 100

999
Warehouse number and 999 as Storage type. Press .

Note Storage types are represented as a group of warehouse bins with similar
characteristics. Storage types are defined on the basis of their spatial or
organizational features.

In the screen List of Quants for Difference Posting in Inventory

ORMN1###
Management, select your Material ORMN1###. Make sure that no other
elements are selected. Click .

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On the next screen you will receive a message that your material document is
now created.

Click on to return to the SAP Fiori Launchpad.

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Step 12: Display warehouse inventory value

Task Display the warehouse stock again. Time 5 min

Short Description Use the SAP Easy Access Menu in order to see the
warehouse stock.
Name (Position) Carolin Bruzik (Warehouse Supervisor)

To display the warehouse stock, use in the Warehouse Management area on Fiori App
the Physical Inventory page in the Warehouse Supervisor role the app
Display Warehouse Stock.

In the screen Display Warehouse Stocks of Material, enter ORMN1### as ORMN1###

SD00
Material (replace ### with your number) and SD00 as Plant. Make sure that
all boxes are empty and click .

As you can see, the amount of material and the associated data in San Diego
has increased.

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Click on to return to the SAP Fiori Launchpad.

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WM IV Challenge

Learning Objective Conduct a physical inventory. Time 60 min

You have successfully gone through the Case Study Warehouse Management IV. Now you are
able to demonstrate and to apply your knowledge. For this purpose, you should solve the
following additional task on your own.
Scenario As a warehouse manager, you are in control of the necessary physical inventories
within your warehouse. The San Diego warehouse applies the method of continuous inventory. In
the course of this inventory, your aim is to check all storage locations of the storage type pallet
storage.
In the course of the physical inventory of the storage bin STBN-9-###, which is listed as empty,
120 units of your off-road helmets (OHMT1###) are found in storage location TG00. Strict
investigations revealed that they were part of the last delivery and were not entered into the
system at all. The goods were also put away into the wrong storage bin, as STBN-3-### would be
the standard bin for them. Start this physical inventory within the system, add the count and clear
it.
To reconcile the stocks, use a transportation order in order to restore the 120 units from the
storage bin STBN-9-### to the storage bin STBN-3-###.
Task Information You are free to use the Case Study Warehouse Management IV as an aid. It is
however recommended to accomplish this advanced task without any help in order to thus put
your acquired knowledge to a test.

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