S/4HANA Handling Unit Management

Handling unit management functionality allows you to manage materials in different package units following the packaging process. The most common business scenario is to manage inventory in pallets. With handling unit management, you can have multiple levels of packaging, and you can group and identify individual units that are nested.

Business users can control the handling unit in two ways:

  • Manage inventory with processes for pack, unpack, and transfer posting, allowing control of the inventory by handling units. It’s possible to view inventory that is packaged and unpackaged; for this, two different storage locations are linked to each other—one dedicated for unpackaged materials and the other for packaged materials. Every time the packaging activity takes place, the inventory is updated accordingly to the activity that is performed.
  • Manage inventory only during receiving or issuing processes.  Under this scenario, the materials are tracked using the handling unit identification recorded in the delivery documents. Pack and unpack activities are possible during delivery processing. The inventory doesn’t need to be controlled with packaging units.
Both ways of handling packaged materials aren’t mutually exclusive; depending on the business requirements, it’s possible to have one or both. The second process provides full visibility and tracking of the
handling units across the inventory processes.

Handling unit management in SAP S/4HANA doesn’t have any SAP Fiori apps that facilitate the common actions; instead, users must rely on the transactions available in the core system via the user interface (GUI).

Handling unit management has been incorporated in SAP S/4HANA with the same capabilities available in SAP Business Suite (SAP Menu - Logistics - Central Functions - Handling Unit Management) and has integration with the traditional warehouse management functionality.

With the addition of embedded EWM capabilities, users now have another option to manage inventory with handling units.

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