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Warehouse Management Terminologies

SAP ERP Warehouse Management Terminologies

In this blog will going to understand about the SAP ERP WM Terminologies

Company Code

Company Code is the smallest organizational unit for which a complete self-contained accounts can be drawn for external reporting which involves recording of all business relevant transactions and generating all supporting documents required for financial statement like balance sheets, profit and loss etc. In SAP it is represented with four-digit alphanumeric key.

Example- 1000, RJ23, RJEP


Plant is an organizational unit within logistics serving to subdivided an enterprise according to production, procurement, maintenance, and material planning. A plant is a place where the material is procuring, producing goods and providing goods and services.

In SAP it is represented with four-digit alphanumeric key.

Example- 1000, RJ23, RJEP


Warehouse is a organizational division of a plant which used to maintain the materials and stored is different places. In SAP it is represented with three-digit alphanumeric key.

Example- 100, RJW, W01


Quant is the stock of particular materials/batch/stock status available in storage bin. Quants and created, decreased or increased based on goods movement. On receiving of goods quant increased, or goods issue quant decreased. Quants used by the system to track stock and stock movement throughout the warehouse management system.

Transfer Order

Transfer Order is the instructions to move materials from a source storage bin to a destination storage bin within a warehouse complex at specified point of time. A transfer order can be created based on customer delivery, a transfer requirement or a posting change notice.  

Transfer Requirement

Request to transfer materials at a particular time from a source bin to destination storage bin within warehouse premises. Transfer Requirements have material quantity, and either the source bin (for goods issue) or destination bin (for Goods receipt and put away).

TR+ Picking Strategy = TO for Picking (Stock Removal)

TR+ Put away Strategy TO for Put away (Goods Receipt)

Storage Location

Storage location is an organizational unit that allows the differentiation of material stock within plant.

In SAP it is represented with four-digit alphanumeric key.

Example- 0001, RJ23, RJEP

Storage Type

Storage Type is a physical or logical subdivision of a complex warehouse distinguished by the warehouse procedures used or its organization from or function. For example;

·      Goods receipt area

·      Goods Issue area

·      Picking Area

·      High rack storage

·      Bulk Storage

·      Open Storage

Posting Change

Primarily a change in information about the stock. Example; releasing or placing of stock status holds, re-identifying material with a new material of batch number, converting special stock, such as consignment stock or returned stock, into the company’s own stock, changing ownership of stock from one plant to another when not using a stock transfer order.

Movement Type (IM)

Classification key indicating the type of material movement type (for example, goods receipt, goods issue, physical stock transfer.

The movement type enables the system to find predefined posting rules determining how the accounts of the financial accounting system (stock consumption accounts) are to be posted and how the stock fields in the material master record are to be updated.

Movement Type (WM)

Classification key used in warehouse management system to describe a stock movement within warehouse complex (warehouse number).

There are many variations of IM movement type which become far fewer in warehouse.

Storage Unit

Storage Unit is a logical group of one or several amount of material which can manage within a warehouse as a unit that belongs together.

A unique identifier and tracking number for the grouping.

A Storage unit it is an attribute of the storage type, not the material.




Rajesh Sharma

SAP WM/EWM Functional Consultant


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