This blog post explains the key features of the Fiori app Stock-Single Fiori app. The knowledge in this post will help readers in client-facing roles. All logistics departments can use this Fiori application for reporting purposes. It shows the stock of one material at a time with all relevant details such as plant, storage location, unrestricted stock, quality inspection stock, blocked stock, returns, etc. Users can see the stock information in the table and chart views.

In this blog we will discuss about pricing concept in SAP, Evolution from ECC to S/4HANA with key benefits.

ECC 16 pricing fields in detail are as follow:

• Steps: Place the condition in sequence.
• Counter: If there is no space between two steps to add one more condition type.
• Condition type:  Specifies the type of the pricing element.
• Description: To describe the condition types in sales document pricing.
• From: Help to determine the base value for calculating the condition type value in sales document pricing.
• To: Used to cumulate the value of multiple steps that are in a sequence.
• Manual: If we check manual, then the system will not determine the condition type automatically into the sales document.
• Requirement: If we check required, then system will not allow to save the sales document if the condition type is missing
• Statistical: If we check statistical then it will have two effects, value doesn’t have any effect on net value & not be posted into accounting.
• Print: Controls whether to print the condition type into output printout or not.
• Subtotal: Used to store the value of condition type in some temporary tables and fields for the purpose of further calculations.
• Requirements: The system will check while determining condition type into sales document, if condition fulfilling then condition type determine into sales document.
• Alternate calculation type (Formula): Use alternate calculation type, if the calculation part of condition type is not standard.
• Alternate Base type (Formula): Use alternate base type when the base value of the condition type is not standard.
• Account Key: It is a parameter to determine revenue G/L account while posting invoice values into accounting.
• Accrual Key: Keeping some amount aside from each transaction into provisional account to meet the further requirements of rebate settlement.

Now SAP S/4HANA pricing procedure has expanded from 16 pricing field to 18 pricing field are follow:

1. Statistical and Relevant for Account Determination:

Statistical: It does not impact the net price but is recorded for reporting purposes.

Relevant for Account Determination: It still flows into financial accounting, even though it’s statistical. We can use this field indicator to define that the statistical price condition is posted to account-based Profitability Analysis (CO-PA) as journal entry to an extension ledger of Financial Accounting.   

Example: Imagine you are delivering the free delivery above 200 rupees, previously this delivery cost maybe be ignored in financial posting because it has marked as Statistic.

Now, you can post it to an extension ledger in CO-PA, giving you a clear picture of how much free delivery impacts your bottom line.

Scenario: In this scenario Tax will display and post, but no impact on Net price:

This shows the Tax ZXYX on invoice, it will be posted to a special liability GL account and will not impact the product net price (i.e., customer doesn’t pay directly).

In system:

✅ Visible on sales order and invoice as a separate line

✅ Posted to G/L account (e.g., Environmental Provisions) using Account Key ZEV

❌ Does not affect the net selling price (because it’s statistical)

2. Access level (New in 2023): Access levels is used to control the access of your business users to price elements in business documents.

Access levels consist of a four-digit number and a description, you can use all numbers from 0001 to 9999.

Default value 0000 grants full access to all users.

For example, the profit margin in a sales order can be displayed only by a sales manager.

Business Need: Can we hide certain price details (like Profit Margin or Internal Cost) from some users in sales documents or invoices?

Solution: In SAP S/4HANA, introduced Role-Based Access level to Price Elements. This controls who can view or edit specific price conditions (e.g., profit margin) in sales orders, returns, or invoices — either at header or item level. You can set access as no access, display only, or editable, based on the user’s role.

Recommendation by SAP: The higher the sensitivity, the higher is the number of the access level.

Benefit of S/4HANA Pricing:

• Improved performance as pricing is stored in the single table PRCD_ELEMENTS, it leads to execution of sales order creation and billing creation.
• Reduces errors by replacing multiple condition tables into one condition table.
• Enhanced user experience with Fiori apps.
• Supports Real-time profitability analysis.
• Enhanced customization, increased range of digits, can create more Access sequences, Condition tables, Formula/Routine and Condition type counter.

Key Components of Pricing Procedure:

• Condition Records: It stores the pricing information, taxes, and discounts. (e.g., prices, surcharge, taxes, discounts)
• Condition Types: Define types of pricing components, such as- PR00 Basic price, K004 material discount. Each pricing type represents a particular pricing element.
• Pricing Procedures: A pricing procedure is a collection of condition types arranged in a specific sequence, it defines the rules and logic for pricing that how to calculate conditions where conditions are mandatory, optional, or statistical.
• Access Sequences: It searches the strategy for finding valid condition records.
• Condition Tables: It specifies the combination of fields used to maintain condition records (e.g., customer and material, sales organization).
• Master Data Integration: Pricing leverages data from Customer master and material master.

Difference between ECC pricing & S/4HANA pricing:

Conclusion: The evolution from ECC to S/4HANA in pricing procedure is not just as technical upgrade but it is transformation that brings greater flexibility, transparency, improved performance, time saving and error free. with the expansion from 16 to 18 pricing fields, the system now supports more accurate financial reporting and role-based access control through features like statistical posting to CO-PA and Access Levels.

Choosing the Best Option for Carrier integrations with SAP TM. The customers are confused...

In the fast-paced world of supply chain management, unexpected events can disrupt operations and impact service levels. SAP Extended Warehouse Management (EWM) offers robust exception handling capabilities that enable businesses to respond effectively to discrepancies, ensuring seamless operations and enhanced customer satisfaction. This article delves into the critical configurations and best practices for managing exceptions within SAP EWM.

Co-Product and By-Product:

A Co-Product is a product that is produced in parallel with other products but have high value. The system creates a separate order item in the production order for each co-product. This means that it is possible to display actual costs at co-product level.

A By-Product is a product that is produced in parallel with other products. The system does not create a separate order item for each by-product. The material valuation of a by-product is always based on the price specified by price control in the material master.

SAP IBP solution does not distinguish between Co-Product and By-Products

How to Setup Co-Production in IBP?

SAP IBP Master Data Setup:

Production Source Header:

In the Production Source Header MDT update the Source Type as ‘C’ for Co-Product FG100-CO. C indicates Co-production.

One Source ID ‘1010_FG100_PV1’ is assigned to Finished Product FG100 and Co-Product FG100-CO

Production Source Item:

Below is the master data setup for the Production source item.

SG100 is the semifinished material with a source ID ‘1010_FG100_PV1’. RM100 and RM200 are the raw materials with a source ID ‘1010_SG100_PV1’

Resource Location:

Below are the resources available at location 1010 which is production plant. Capacity Supply can keep it blank since capacity supply time series indication is marked as "X"

Production Source Resource:

Below are the resources used by source ID

Capacity updated for each resource in IBP:

Supply Chain Network:

Network setup for Co-Product Scenario.

Input:

Independent Demand at Finished Good (FG100) and Co-Product (FG100-CO)

Finite Heuristic Output:

Net demand is calculated for finished product FG100 based on the independent demand at the same product.

However Net demand is not calculated for co-product FG100-CO. The heuristics that support co-production don't plan a production event just to satisfy net demand for a co-product. Demand for a co-product is satisfied only from stock. 

Optimizer Output:

The optimizer supports co-production and calculates a cost-optimal production plan. It considers production costs, stock holding costs, and costs incurred for not satisfying demands for all output products, that is, both main and co-products.

Independent Demand at Finished Good (FG100) and Co-Product (FG100-CO) at DC-1000

System has calculated net demand for FG100 till W13 since it has independent demand till W13 only at DC- 1000.However, it has calculated Net demand till W15 at plant 1010 is due to co-product independent demand.

Optimizer has calculated Net demand for co-product FG100-CO at DC due to co-product independent demand.

In W15 we have independent demand only for co-product FG100-CO and system has generated production receipt.

//Setup initial cost Production Cost, Transportation cost, Non Delivery Cost, Inventory holding Cost

I hope this blog was helpful to understand the setup. Thank you.

In the realm of warehouse management, effective storage strategies are vital for maximizing space utilization, enhancing operational efficiency, and improving inventory accuracy. SAP Extended Warehouse Management (EWM) offers a robust framework for managing various storage strategies, one of which is the Pallet Storage Strategy by Handling Unit (HU) Type. This article delves into the intricacies of this storage strategy, detailing end-to-end configurations and best practices for implementation.

Ever wondered how production and warehouse operations sync seamlessly in SAP? The integration between SAP EWM and Production Planning (PP) ensures real-time material staging, consumption, and inventory updates—crucial for manufacturing excellence.

In this guide, I Delve into :
✅End-to-end EWM & PP integration
✅Configuration steps for raw material staging & finished goods receipt
✅Key master data and testing approach
✅Real-world staging methods: Single, Cross-Order & Crate Part staging
✅Differences between Production and Process Orders

In today's competitive supply chain landscape, operational efficiency and inventory accuracy are crucial to meeting customer expectations and reducing fulfillment costs. Automatic Replenishment in SAP EWM is a strategic tool that helps businesses maintain seamless warehouse operations by ensuring that picking locations are consistently stocked without manual intervention. By automating the movement of goods from reserve areas to fixed picking bins based on real-time stock levels, businesses can prevent order delays, optimize labor utilization, and reduce stockouts. In this blog, we’ll explore how automatic replenishment supports warehouse efficiency and demonstrates its functionality through a practical test scenario.

Let’s dive into the key configuration steps that make this process work effortlessly behind the scenes.

Configuration:

1. Activate Replenishment strategies in storage type

2. Maintain Document types and item types for warehouse request

3.  Assign Fixed Bins to the products

4. Stock Removal Strategies

4.1 Specify Storage type Search sequence for Stock removal

4.2 Determine Storage type Search sequence for Stock Removal

5. Warehouse Process Type

5.1 Define Warehouse Process Type

5.2 Determine Warehouse Process Type

6. Maintain Product Master

Test Case:

In this test scenario, we will walk through a practical example to validate how Automatic Replenishment works in SAP EWM. The goal is to demonstrate that a Warehouse Task is automatically created when the stock in a bin drop below the predefined minimum quantity threshold.

We’ll simulate a real-life outbound process, starting from the creation of a Sales Order, triggering a pick from fixed bins, and observing how the system handles replenishment post-picking. Verify that the system automatically triggers replenishment when the stock in a fixed bin falls below the minimum quantity after a picking confirmation.

Pre-requisites:
1. Ensure Sufficient Stock is Maintained in the Reserve Area
Before testing replenishment, verify that adequate stock is available in the Reserve Area (HLR1). This stock will be used by the system to automatically replenish the Fixed Bin once the stock level falls below the defined minimum threshold. The replenishment warehouse task will move stock from the reserve area to the fixed bin to ensure seamless picking operations.

2. Ensure Sufficient Stock is Available for Order Picking

Verify that enough stock is available in the Fixed Bin to fulfill the outbound delivery. Once the picking is executed and confirmed, the system checks if the remaining quantity in the bin has fallen below the configured minimum quantity. If so, the follow-up replenishment process is automatically triggered, creating a warehouse task to replenish the fixed bin from the reserve area ensuring readiness for future picking demands.

3. Stock Removal Strategies are Preconfigured for Order Picking

As a prerequisite, ensure that appropriate Stock Removal Strategies are already configured in the system. These strategies determine how the system selects stock from storage bins during the picking process for outbound deliveries. Having this in place ensures that the system can efficiently identify and pick stock from the correct bins when processing the sales order.

Create a Sales Order (T-Code: VA01)

Sales Order is created with a quantity of 26 units. Each fixed bin holds 10 units, and the minimum quantity is configured as 5 units (as shown in Step 3). After the picking process, we expect the system to identify that the stock has dropped below the minimum threshold and automatically trigger a replenishment task from the reserve area.

Create an Outbound Delivery in S/4HANA and Distribute to EWM (T-Code: VL01N)

Generate the outbound delivery based on the sales order and distribute it to the EWM system.

Process the Outbound Delivery Order in EWM (T-Code: /N/SCWM/PRDO)

Access the outbound delivery order and create the picking warehouse tasks.

Create Warehouse Task:
 Outbound Delivery > Follow-on Functions > Warehouse Task

Three Warehouse Tasks have been Successfully Created for Picking. As expected, the system generated three warehouse tasks one for each fixed bin, each containing 10 units, to fulfill the 26-unit Sales Order. Upon confirmation of these tasks, the stock level in each bin is evaluated. Since the remaining quantity falls below the defined minimum threshold, the system is expected to automatically trigger three replenishment tasks from the reserve area.

Let’s now verify these replenishment tasks in the Warehouse Monitor. à Filter with Open Warehouse Task and Whse Process Type - 3010

Immediate Replenishment tasks have been automatically Created. The system has instantly generated replenishment tasks following the confirmation of picking tasks. The automatic creation of replenishment warehouse tasks is a result of the key configuration settings completed earlier such as activating automatic replenishment, defining the appropriate process type, and setting up effective stock removal strategies (as outlined in Steps 1, 4, and 5). These configurations work together to ensure seamless replenishment when fixed bin stock falls below the minimum threshold.

Before proceeding with the confirmation of these replenishment tasks, let’s first review the current stock levels in the fixed bins for the relevant products. This will help us validate that the system correctly identified the stock falling below the minimum quantity threshold and responded as expected.

Stock Status Before Replenishment Confirmation
One bin shows 4 units remaining, while the other two bins have disappeared from available stock, likely due to full depletion. Let’s confirm the replenishment tasks and verify the updated stock levels in the fixed bins.

Post Replenishment Task Confirmation
After confirming the replenishment tasks, all fixed bins are fully restocked and now ready for picking in upcoming outbound processes, as illustrated in the image below.

This example demonstrates how Automatic Replenishment functions in SAP EWM. When stock levels in the picking area fall below the defined minimum quantity, the system proactively creates replenishment tasks to transfer stock from the reserve area to the fixed bins. This ensures that stock is consistently available for picking, supporting uninterrupted outbound operations and enhancing overall warehouse efficiency. It's a powerful feature that helps businesses maintain optimal stock levels and streamline their fulfillment processes.