Tscm42 Unit 7

Unit 7Material Staging and Withdrawal

Unit Overview• Default issue storage location in the production order• Material staging• Picking• Material withdrawal variants (planned, unplanned, surplus, deficit,

backflushing, cancellation)

Unit ObjectivesAfter completing this unit, you will be able to:

• Describe the possible procedures for material staging• Perform goods issue postings

Unit ContentsLesson: Material Staging ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .242Lesson: Material Withdrawal Variants.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .255

Exercise 17: Material Staging... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .261

2009 © 2011 SAP AG. All rights reserved. 241

Unit 7: Material Staging and Withdrawal TSCM42

Lesson: Material Staging

Lesson OverviewThis lesson provides you with an overview of the possible procedures for materialstaging.

Lesson ObjectivesAfter completing this lesson, you will be able to:

• Describe the possible procedures for material staging

Business ExampleYou will become familiar with the possible procedures for performing materialstaging for production orders.

Material Staging Options

Figure 89: Material staging options

The basis for material withdrawal for production orders can be materialwithdrawal slips, pull lists, pick lists, work instructions, weighing systems linkedvia the PI-PCS interface (basis for execution steps and control instructions) andsimilar documents or technologies.

The SAP ECC and SAP SCM systems provide the following various proceduresfor organizing material staging. These procedures depend on the inventorymanagement type and the stockholding type:


TSCM42 Lesson: Material Staging

a) Warehouse management using theMM-IM (Inventory Management)component

b) Replenishment control using the KANBAN component

c) Storage location management and replenishment control based on theLE-WM (SAP ECC) or EWM (SAPSCM) components.

The following three options are available for material staging with WarehouseManagement system:

• Pick parts are staged directly in the amount of the requirements quantityfor the production order. The staging of these parts for the production ordercan be done at a physical or at a dynamic storage location (production order).

This is typical for high value parts, such as shafts, casings, and so on.

• Crate parts are ordered manually when a crate is almost empty.

This is typical for small parts in containers, such as screws, nails, and so on.

• Release order parts are requested manually. At this point, the requiredquantity is calculated from the target quantity of the components of theselected orders that have been released.

This is typical for board material, colors, and so on.

Sequence of Material Staging

Figure 90: Sequence of Material Staging



Determination of Storage Location

Figure 91: Determination of Storage Location: Overview (I)

Figure 92: Determination of Storage Location: Overview (II)



Figure 93: Determination of Storage Location: Details (I)

Each material component in the production order can be assigned a default issuingstorage location (at the point of order creation). This default enables automaticwithdrawal postings (for example, backflushing).

There are numerous options for the default (work center, bill of material, materialmaster, production version).

If the default originates from a production version, additional steps must be carriedout, as described on the following slide.

If materials are to be picked from a Warehouse Management storage bin,additional measures must be taken, as described on the slide after the next one.

The procedure illustrated above (standard) can be changed by modifying its orderof priority by following the instructions contained in SAP Notes 123580 and126881.

The SAP enhancement PPCO0005 contains a customer exitEXIT_SAPLCOSD_001 for the storage location default.

Legend: PSA = production supply area.

The default logic also applies to production orders planned in SAP SCM (APO)and converted from APO planned orders.

Container resources used in the production process model (PPM) are anexception. These are adopted during the conversion (SAP Note 488270).



Figure 94: Determination of Storage Location: Details (II)

If no storage location was found via the work center, the BOM item, or thematerial master, the MRP group for the product determines whether theissue storage location is taken from the production version of the product in aproduction order, or from the material master of the component (“ProductionStorage Location Selection” field).

This field can be defined for each MRP group in Customizing for materialrequirements planning.

Storage location selection = empty or 1: The production storage location in thematerial master of the component is proposed as the issuing storage location (leadsto no storage location default in the production order; see above).

Storage location selection = 2: For all components, the default issuing storagelocation is the one contained in the production version of the production order(see the material master of the manufactured product). If this issuing storagelocation is not maintained in the production version, the system uses the receivingstorage location as the issuing storage location. This can be defined in theproduction version of the assembly in the Receiving Location field or in thematerial master of the assembly in the Production Storage Location field.

You should use this type of selection if all components are stored together at astorage location near the production line, where they are required.

Storage location selection = 3: Behaves in the same way as selection type 2.

Storage location selection = 4: Behaves in the same way as selection type 2.



Figure 95: Determination of Storage Location: Details (III)

If the stocks of the material components are managed at storage bin level using theWarehouse Management system, other requirements have to be fulfilled.

These required measures affect the SAP components KANBAN and WarehouseManagement (WM).

Once all settings have been fixed,WM staging can be triggered directly from theproduction order.

This results in transfer requirements or transfer orders for the WM system.

The transport orders need to be executed and exited. The material will then beavailable at the receiving storage location.

You can use an interactive pull list to request and transfer material. You canuse this function to prepare any stock transfer, create and print a stock transferlist and then carry out the stock transfer.

You can use a picking function to prepare and post material withdrawals. Youcan use this function to create and print any picking list and post the materialwithdrawals.

You can export the picking list to MS-Excel ® or a PC file.



Organize Material Staging

Figure 96: Organize Material Staging: Inventory Management

Figure 97: Pull List

You can use an interactive pull list to request and transfer material stock.

You can use this function to prepare any stock transfer, create and print a stocktransfer list and then carry out the stock transfer.

You can find the pull list under



ECC → Logistics → Production → Shop Floor Control → Goods Movements→ Material Staging → Pull List

Figure 98: Organize Material Staging: KANBAN

Figure 99: Material Staging via KANBAN

In KANBAN, the material flow is organized using containers that are keptdirectly at the appropriate work centers in production. Each contains the quantityof material that work center personnel need for a certain period of time. As soonas a container is emptied by the demand source, replenishment is initiated in



KANBAN. The supply source for the required material can be another place inproduction, an external vendor or a warehouse. The demand source can usematerial from other containers until the actual container returns to full.

The aim is to control the replenishment process in production itself and toreduce the manual posting efforts for personnel as much as possible. Thisself-management process and the fact that replenishment elements are createdclose to the time they are actually consumed means that stocks are reduced andlead times are shortened (replenishment is only triggered when a material isactually required and not before).

KANBAN in summary: With KANBAN, material is staged where it is used. andis always available in small material buffers. This means that material stagingdoes not need to be planned. Instead, material that is consumed is replenishedimmediately using KANBAN.

By using KANBAN with the SAP ECC system, you can automate the transfer ofreplenishment data. For example, scanning the barcode on a KANBAN cardis sufficient to transfer the data required for procurement and to post the goodsreceipt when the material is received.

Figure 100: Organize Material Staging: Warehouse Management System



Figure 101: Material Staging with the Warehouse Management System(Overview I)

Figure 102: Material Staging with the Warehouse Management System(Overview II)



Goods Issue Posting

Figure 103: Goods Issue Posting: Options

Figure 104: Picking List (CO27)

You can use a picking function to prepare and post material withdrawals.



You can use this function to create and print any picking list and post thematerial withdrawals.

You can export the picking list to MS-Excel or a PC file.

You can find the picking function under

ECC → Logistics → Production → Shop Floor Control → Goods Movements→ Material Staging → Pick



Lesson Summary

You should now be able to:• Describe the possible procedures for material staging


TSCM42 Lesson: Material Withdrawal Variants

Lesson: Material Withdrawal Variants

Lesson OverviewIn this lesson, you will learn about goods issues for production orders.

Lesson ObjectivesAfter completing this lesson, you will be able to:

• Perform goods issue postings

Business ExampleMaterial components must be staged for production in specific quantities and byspecific dates. To do so, you, as employee, go to the proposed warehouse with thematerial withdrawal slip and withdraw the material.

As an alternative, the material may be supplied to you automatically or by shipmentteam. The procedure for material withdrawal postings is, however, the same.

Figure 105: Material Withdrawal Variants

Goods issue is always performed in SAP ECC. It can be both planned andunplanned.

The data you need to enter depends on the type of goods issue.



The basis for material withdrawal for production orders are material withdrawalslips, pull lists, pick lists and similar documents.

You can also post goods issues automatically during confirmation (backflushing).

Figure 106: Manual Goods Issues

The reference to a reservation is determined by the planned or unplanned materialwithdrawal for a production order.

Planned material withdrawals can only be made for components kept in stock.Items for backflush posting are not offered in the process.

Unplanned material withdrawals cause actual costs in the production order. Theyare not included in the component overview nor are they recorded in the log ofgoods movements.

Goods movements can vary for each item.

You can also make collective entries for various account assignments in a materialdocument.

A prerequisite for goods issue is that the goods movement has been allowed forthe reservation item. This means that the production order must be released.

You can restrict material withdrawal according to storage location and proportionalquantity default. Likewise, you can have extended selection with regard torequirements dates and operations.

You can also set the final issue indicator. When this is done, the reservation itemis deemed completed.



You can find goods issue posting under

ECC → Logistics → Production → Shop Floor Control → Goods Movements→ Goods Issue

Figure 107: Movement Type: Meaning

The movement type enables you to differentiate between goods movements. Ithelps control the creation and update of goods movements.

You can select the movement type from the menu or use F4 to display a list of themovement types assigned to the transaction. You can enter the individual items ofa material document with various movement types.

The reference to a production order is controlled upon material withdrawal using aspecially defined movement type (261).



Figure 108: Effects of a Goods Issue

• Storage location-related update of stock and consumption fields• Reduction of reservations (for planned withdrawal)

Only costs are updated for unplanned withdrawals. Determining actual costs(evaluation) and updating the order.

You give material consumption a value in Customizing using a valuation variantspecific to plant or company code.

Material, accounting and controlling documents are generated for a goodsmovement.

The material document describes the goods movement from the materialsmanagement (stock) point of view.

The accounting document describes the goods movement from the financialaccounting point of view. An accounting document is always related to a companycode. You can create one, several or indeed no accounting documents for a goodsmovement.

When you display a material document, you can branch to the other documents.

You can print a goods issue document.



Figure 109: Backflushing Posting of Material Withdrawals

A materiel component withdrawal can be posted automatically (backflushing),synchronously or asynchronously when an operation is confirmed.

You should always use backflushing when you do not want to stage materialsphysically from the warehouse for a specific order.

It is assumed that the material is staged at the work center.

Application Areas:

• Flow and assembly lines• Less valuable materials

You can control backflushing in the material master, in the work center or for eachBOM component assignment to an operation.

You must rework unsuccessful withdrawal postings (stock = 0).

The stock determination and batch determination functions can be activatedwhen the backflush posting of the material withdrawal is carried out.



Figure 110: Negative Stocks or Reworks

If, for organizational reasons, the goods issue is created before the correspondinggoods receipt and the material already physically exists in the warehouse youcan choose between three procedures.

• Postprocessing unsuccessful material withdrawals.• Negative stocks• Stock determination

Negative stocks are possible in inventory management.

When you are working with negative stocks, you must make sure that:

• You have no negative stocks on the balance sheet key date and at the timeof taking physical inventory

• When you run the month end closing program, no negative stocks stillremain from the previous month

You set the indicator determining the permissibility of negative stocks in thematerial master (storage screen 2).



Exercise 17: Material Staging

Exercise ObjectivesAfter completing this exercise, you will be able to:• Perform goods issue postings

Business ExampleMaterial components must be staged for production in specific quantities and byspecific dates. To achieve this end, you take the material withdrawal slip, enterthe proposed warehouse and withdraw the material.

As an alternative, the material may be supplied to you automatically or by shipmentteam. The procedure for material withdrawal postings is, however, the same.

Task 1:Create an order with the following data:

Material R-F1##

Production plant 1000

Order type PP01

Total quantity 10 pieces

Finish date Any

Scheduling type Backwards

1. Release the order.

2. Save your order.

Order no.:____________________

Continued on next page



Task 2:Check the current stock level for each material component using thestock/requirements list.

Hint: In the steps to follow, if your requirement quantities are more thanthe current stock level or if material withdrawals cannot be carried outbecause stocks are low, then use transactionMB1C and movement type561 to execute other goods receipts.

Post a sufficient quantity.

Task 3:Create a picking list for the staging of the material components for the orderin the warehouse.

Save the result (picking) to post the goods issues.

Path: ECC → Logistics → Production → Shop Floor Control→ GoodsMovements → Material Staging → Pick → Use the standard profile ‘000002’

Select all components in the list and choose Picking.

Hint: To display errors, choose Environment ->Errors in the Picking list.

Task 4:Ensure that the system has updated the production order (documented goodsmovements, withdrawal quantities, actual costs).

Task 5:Create another production order using the following data:

Material R-F1##


Order type PP01


Finish date Any



2. Save your order.




Order no.:____________________

Hint: Withdraw the material components for the order in thefollowing steps (withdrawal variants). (Transaction MB1A,movement type 261)

3. Determine the reservation and item number of assembly R-B1## in yourorder and make a material withdrawal with reference to the reservationin transaction MB1A.

Reservation number: ________________

Item number: ________________

Path: ECC → Logistics → Production → Shop Floor Control → GoodsMovements → Goods Issue

Select the pushbutton TO RESERVATION

4. Carry out a material withdrawal for assembly R-B3## with reference tothe production order.

Path: Select TO ORDER

5. Make an overwithdrawal with a quantity of 1 for R-B1## with reference tothe reservation.

Caution: If you switch on the indicator “Suggest Zero Lines”, thesystem proposes components for an overwithdrawal which havealready been finally issued.

6. Make an overwithdrawal with quantity 1 for R-B1## without referenceto the reservation and order, but for the production order (movement type261). This is the equivalent of an unplanned withdrawal.

Task 6:

1. Withdraw the remaining quantities of materials that have not beenwithdrawn, so that no planned material withdrawals are outstanding.

Task 7:

1. Ensure that the system has updated the production order (documentedgoods movements, withdrawal quantities, actual costs).




Task 8:Display the material documents that have been generated.

1. Single document (transaction MB03)

Path: ECC → Logistics → Materials Management → InventoryManagement → Material Document → Display

Mass documents (transaction MB51)

Path: ECC → Logistics → Materials Management → InventoryManagement → Environment → List Displays → Material Documents



Solution 17: Material StagingTask 1:Create an order with the following data:

Material R-F1##


Order type PP01


Finish date Any



a) - - -

2. Save your order.

Order no.:____________________

a) - - -

Task 2:Check the current stock level for each material component using thestock/requirements list.

Hint: In the steps to follow, if your requirement quantities are more thanthe current stock level or if material withdrawals cannot be carried outbecause stocks are low, then use transactionMB1C and movement type561 to execute other goods receipts.

Post a sufficient quantity.

Task 3:Create a picking list for the staging of the material components for the orderin the warehouse.

Save the result (picking) to post the goods issues.

Path: ECC → Logistics → Production → Shop Floor Control→ GoodsMovements → Material Staging → Pick → Use the standard profile ‘000002’




Select all components in the list and choose Picking.

Hint: To display errors, choose Environment ->Errors in the Picking list.

Task 4:Ensure that the system has updated the production order (documented goodsmovements, withdrawal quantities, actual costs).

Task 5:Create another production order using the following data:

Material R-F1##


Order type PP01


Finish date Any



a) - - -

2. Save your order.

Order no.:____________________

Hint: Withdraw the material components for the order in thefollowing steps (withdrawal variants). (Transaction MB1A,movement type 261)

a) - - -

3. Determine the reservation and item number of assembly R-B1## in yourorder and make a material withdrawal with reference to the reservationin transaction MB1A.

Reservation number: ________________

Item number: ________________

Path: ECC → Logistics → Production → Shop Floor Control → GoodsMovements → Goods Issue




Select the pushbutton TO RESERVATION

a) - - -

4. Carry out a material withdrawal for assembly R-B3## with reference tothe production order.

Path: Select TO ORDER

a) - - -

5. Make an overwithdrawal with a quantity of 1 for R-B1## with reference tothe reservation.

Caution: If you switch on the indicator “Suggest Zero Lines”, thesystem proposes components for an overwithdrawal which havealready been finally issued.

a) - - -

6. Make an overwithdrawal with quantity 1 for R-B1## without referenceto the reservation and order, but for the production order (movement type261). This is the equivalent of an unplanned withdrawal.

a) - - -

Task 6:

1. Withdraw the remaining quantities of materials that have not beenwithdrawn, so that no planned material withdrawals are outstanding.

a) - - -

Task 7:

1. Ensure that the system has updated the production order (documentedgoods movements, withdrawal quantities, actual costs).

a) - - -

Task 8:Display the material documents that have been generated.

1. Single document (transaction MB03)

Path: ECC → Logistics → Materials Management → InventoryManagement → Material Document → Display




Mass documents (transaction MB51)

Path: ECC → Logistics → Materials Management → InventoryManagement → Environment → List Displays → Material Documents

a) - - -



Lesson Summary

You should now be able to:• Perform goods issue postings


Unit Summary TSCM42

Unit SummaryYou should now be able to:• Describe the possible procedures for material staging• Perform goods issue postings


Tscm42 Unit 7

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Transcript of Tscm42 Unit 7