Business Requirements Document

Approval Matrix:

SAP User Name Module Functional / HOD / Head IT

Module &Location CTM Technical Vertical Head Approval
Approval Feasibility Approval
WM - - Yes - -

General Information
SAP Module (SD / MM / FI / CO / PP / QM / WM / WM
MDM)
Responsible Consultant Mr. Sachin Sharma
Approved by Mr. Dinesh Kumar
Cross-functional impact (Yes / No) (If yes, BRD
approval to be signed )
Requestor Name, Location, Department Date
16.08.2024

Warehouse Management

Introduction
 Purpose of the Document: Outline the objective, such as detailing the functional requirements for
the warehouse management processes in SAP WMS.
 Scope: This document will cover all the necessary details, including the processes related to Put
away of a material in bin, handling material in a bin, Bin to bin transfer, Dispensing of a material
from Warehouse storage, and Physical inventory management in the warehouse.

Functional Scope
 SAP WM Implementation scope for warehouse management module under logistics is as follows:
 Warehouse Management

 Warehouse
 Storage type, Storage section & Bin determination
 Master Data
 Storage type
 Storage section
 Bin
 Transfer Requirement
 Transfer Order
 Transfer posting
 Put-away & Picking Strategy

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 Business Requirements Document

Below Business processes map in WMS

1.) Putaway of material in bin
2.) Dispensing of a material
3.) Bin to Bin transfer
4.) Physical inventory in WM

1.) Putaway of a material

The putaway process is a critical warehouse management function, involving the movement of materials
from the receiving area to designated storage locations (bins) within the warehouse. This section outlines
the detailed steps, business rules, system requirements, and exceptions handling for the putaway process
in SAP WMS.

Process Flow Overview

 Trigger Event: The putaway process is typically triggered when goods are received in the
warehouse, either from external suppliers (via purchase orders) or from internal transfers (e.g.,
production returns).
 System Input: The process begins with a Goods Receipt (GR) against a purchase order.
 Output: The material is stored in the designated bin location, and the inventory is updated in the
system.

Goods Receipt and Transfer Order Creation:

 Upon receiving materials, a Goods Receipt (GR) is posted and material will in quality inspection and
while posting in unrestricted, triggering the creation of a posting change number and from that TO
will be create for putaway in the SAP system.

Bin Selection Based on Putaway Strategy:

 The system selects an optimal bin location based on predefined strategies (e.g., fixed bin, random
bin) and criteria like capacity, material type, and storage rules.

Physical Putaway and System Confirmation:

 The material is physically moved to the designated bin, and the warehouse operator confirms the
putaway. The system updates the inventory in real-time.

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 Business Requirements Document

2.) Dispensing of a material in WMS

Dispensing Request Generation:

 A dispensing request is generated in the WMS, typically triggered by a production order or a

specific material requirement, specifying the quantity and type of material needed.

Bin Selection and Picking:

 The system identifies the appropriate bins based on the dispensing strategy (e.g., FIFO, batch
control). The warehouse operator picks the required material from the selected bins.

Material Verification and Transfer:

 The picked material is verified against the dispensing request for accuracy. The operator then
transfers the material to the designated area (e.g., production line or staging area) and confirms the
transfer in the system.

System Confirmation and Inventory Update:

 The WMS updates the inventory records, deducting the dispensed quantity from the corresponding
bins. Any discrepancies are flagged for review, ensuring inventory accuracy.

3.) Bin to Bin transfer

Initiation and Transfer Order Creation:

The transfer is initiated by generating a Transfer Order (TO) in the WMS, specifying the source bin,
destination bin, and material details.

Physical Movement and Confirmation:

The material is physically moved from the source bin to the destination bin. The operator confirms the
transfer by scanning the material and bin barcodes.

System Update:

The WMS updates the inventory records to reflect the new location, ensuring accurate tracking and
visibility of the material within the warehouse.

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 Business Requirements Document

4.) Physical Inventory in WMS

Inventory Count Planning:

 The physical inventory process begins with planning, where specific bins, storage types, or materials
are selected for counting. The WMS generates physical inventory documents that outline the items to
be counted.

Physical Counting and Data Collection:

 Warehouse operators conduct the physical count, manually counting the items in each bin. The count
results are recorded on handheld devices or paper, capturing actual quantities.

Data Entry and Reconciliation:

 The counted data is entered into the WMS, where it is compared with the system’s recorded
inventory. Discrepancies between the counted and system quantities are identified for further
investigation.

Discrepancy Resolution:

 Any discrepancies are analysed, and adjustments are made to correct inventory records. The WMS
may require approval for adjustments to ensure accountability.

Finalizing Inventory and Reporting:

 Once all discrepancies are resolved, the physical inventory is finalized. The WMS updates the
inventory records, and reports are generated to document the results and provide insights for
inventory management.

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