Open Transfer Orders in Warehouse Module

[Former Member]

Hello,

What is the impact of open transfer orders not confirmed, which are cancelled or deleted.Does cancellation has any financial impact and how will the inventory affteced in the WM.

[Former Member · Accepted solution]

In a WM managed - non HU managed facility:

Open transfer orders always represent some process that is not finished, whether its picking for production orders, out bound deliveries or replenishment's for example. Transfer orders are for the movement of material in relation to some process or other, or it could even be for ad-hoc movements. If a T.O. is left open it will prevent movement (prevent creation of a new transfer order against the same material) in effect locking the stock until the T.O. is either confirmed or canceled. Management and/or supervisors should monitor and check for transfer orders that have been left unconfirmed longer then the associated process should take to complete. For example if you use LL01 warehouse activity monitor you can easily check for transfer order that have been open for an excessive amount of time. Those "old" transfer orders should be researched and canceled or confirmed to free up the inventory or to allow correction of any stock dependency that might be found during research.

The creation of a transfer order has no financial impact and if it is canceled it will have no impact on financials or WM (aside from allowing the creation of new Transfer order(s) against the stock). Think of an open transfer order as a stock movement proposal, if it is confirmed the proposed stock movement is completed. If it is canceled then there is no stock movement and no changes other then the creation of a transfer order record that was canceled. It is a fairly common misconception among some SAP security firms that see allowing access to both transfer order creation and cancellation as a security risk but when we fully understand the concept of transfer order creation, cancellation, confirmation and confirmation with differences we can see that is not actually the case. Especially when we consider the fact that the system will save a record of exactly who created confirmed or canceled a given transfer order.

Hope this helps to expand your understanding 🙂

[Former Member · Accepted solution]

Thank you Jacob for a prompt reply, I am new to WM module and your explaination sounds good.

[Former Member]

Hello Vineet

You just know that WM is quantity base only & IM is quantity & value base . If you do the transaction either receipt / Issue  , system will take the material into interim area & showing put away qty but not in available qty in standard storage area   but in removal time stock will show negative interim storage area, you can check the stock status in LS24/LS26 , but once you cancel the TO , stock will show only in interim storage area  .

only physical inventory time , when you will do difference posting in IM level LI21 , that time only system show you financial impact .

You just run the transaction & check the stock over view , you can see the magic .

Regards

Dillesh

[MANIS]

Are these transfer order are related to Inbound delivery / Outbound delivery / Posting change or Bin to Bin.

you cannot cancel or delete the transfer order related to Inbound delivery as this will create mismatch in between your stock where you first perform the goods receipt in IM first and WM later. In terms of Outbound delivery if you are not confirming the transfer order then you won't be able to deliver the goods. To perform any activity successfully in WM you need the Transfer order and you need to confirm. Bin to Bin is within warehouse and no impact on IM

[former_member205024]

In WM we are not dealing with any accounting entries.However your stock won't be available in physical bin.So whenever the inbound or outbound deliveries for production unit or for customer would be created system won't check the availability of stock in the bin & picking wont be possible in such case.

However in real scenario it's possible only while picking from interim storage type & placing it to physical bin the stock would get damage in between.