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Custodian/ Party Entitled to Dispose

Owner/Custodian/Party Entitled to Dispose

In this blog we will discuss about Owner/Custodian/Party Entitled to Dispose in SAP EWM.

In SAP Extended Warehouse Management (EWM), the concepts of "Custodian" and "Party Entitled to Dispose" (PED) relate to the ownership and responsibility for goods stored in the warehouse. Let's explore each concept:


The custodian in SAP EWM refers to the physical entity or organization that has custody or possession of goods within the warehouse.

This entity is responsible for the physical handling, storage, and movement of the goods while they are in the warehouse.

The custodian may be an internal department within the organization, a third-party logistics provider (3PL), or any other party designated to perform warehouse operations.

Party Entitled to Dispose (PED):

The Party Entitled to Dispose represents the legal entity or organization that has ownership or legal rights over the goods stored in the warehouse.

This entity has the authority to make decisions regarding the disposition of the goods, such as selling, transferring, or disposing of them.

The PED may or may not be the same as the custodian. In some cases, the PED and custodian may be different entities, such as when goods are consigned to a warehouse but still owned by a supplier or customer.

In SAP EWM, these concepts are important for managing warehouse operations, inventory ownership, and legal compliance. Here's how they are typically used:

Goods Receipt:

When goods are received into the warehouse, the system records both the custodian (who physically receives and stores the goods) and the party entitled to dispose (who owns or has legal rights over the goods).

Inventory Management:

SAP EWM tracks the ownership and custody of goods throughout their lifecycle in the warehouse. This includes monitoring stock levels, movements, and transactions associated with both the custodian and the PED.

Outbound Processing:

During outbound processes such as picking, packing, and shipping, SAP EWM considers the ownership and legal rights of the goods to ensure that they are handled and dispatched in accordance with the PED's instructions.

Reporting and Compliance:

The ability to differentiate between the custodian and the PED enables organizations to generate accurate reports on inventory ownership, warehouse utilization, and compliance with legal and contractual obligations.

Business Partner Concept in SAP EWM

In SAP Extended Warehouse Management (EWM), Business Partner (BP) and BP Role play significant roles in managing and organizing various entities involved in warehouse operations. Here's an overview:

Business Partner (BP):

A Business Partner represents a real-life entity such as a customer, vendor, carrier, or any other business entity that interacts with your organization.


In SAP EWM, Business Partner is a central master data concept used to maintain information about parties involved in warehouse operations, including their contact details, addresses, communication methods, and other relevant information.


BPs can represent various entities, including customers who receive goods, vendors who supply goods, carriers who transport goods, and internal departments or organizational units involved in warehouse processes.


BP Role:

BP Roles provide a way to categorize and differentiate Business Partners based on their roles or functions within the warehouse operations.


Each BP can be assigned one or more BP Roles to specify their role or relationship in a particular context.


Examples of BP Roles in SAP EWM include Shipper, Consignee, Freight Forwarder, Warehouse Operator, Vendor, Customer, Carrier, and various other roles relevant to warehouse management processes.

Here's how Business Partner and BP Roles are used in SAP EWM:

Master Data Management:

Business Partners and BP Roles:

BP Roles are essential for maintaining master data related to entities involved in warehouse operations. This includes creating and maintaining records for customers, vendors, carriers, and other parties, along with specifying their roles.

Order Processing:

When processing inbound or outbound orders, SAP EWM uses Business Partner information to determine the involved parties, such as the shipper, consignee, freight forwarder, etc. BP Roles help categorize and identify these parties based on their roles in the order process.


Communication and Collaboration:

Business Partner data, along with BP Roles, facilitates communication and collaboration between various entities involved in warehouse operations. It ensures that the right parties are informed and involved in relevant processes, such as order confirmation, delivery scheduling, and shipment tracking.


Integration with SAP ERP:

SAP EWM integrates with other SAP modules, such as Sales and Distribution (SD) and Materials Management (MM), where Business Partner data and BP Roles are also used. This ensures consistency and coherence of master data across different SAP systems.


Reporting and Analysis:

Business Partner data, along with BP Roles, provides valuable information for reporting and analysis purposes. Organizations can analyze warehouse operations based on the roles and relationships of different entities, helping to identify trends, optimize processes, and make informed business decisions.

Create Business Partner

000000 Business Partner (General)

Step 1: Enter Business Partner

Step 2: Select Grouping- BPAB External Alpha Numeric Numbering

Step 3: Enter Search Term

Step 4: Update Address

Step 5: Select Language

Step 6: Save

Business Partner: 000000 General BP9566 Created

FLVN01- Supplier (Maintained)

Step 1: Click on Edit Button

Step 2: Select BP Role FLVN01- Supplier/Vendor

Step 3: Click On Vendor General Data Enter Plant-9566

Step 4: Click on Save

Step 5: Click on Purchasing Button

Step 6: Enter Purchasing Organization

Step 7: Currency and Payment Terms

Step 8: Click on Save

Click on Partner Function Tab

FLVN00- Supplier (Finance Account) (Maintained)

Step 1: Click on Edit Button

Step 2: Select BP Role FLVN00- Supplier (Finance Accounting) (Maintained)

Step 3: Click On Company Code

Step 4: Enter Company Code

Step 5: Enter Reconciliation Account

Step 6: Save

Overall, Business Partner and BP Roles in SAP EWM are fundamental concepts for managing master data, facilitating communication, and orchestrating collaboration among various entities involved in warehouse operations. They streamline processes, improve data accuracy, and enhance visibility across the supply chain.  

Rajesh Sharma

SAP WM/EWM Functional Consultant

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