Rajesh Sharma
- 3 days ago
- 3 min read

Production Integration in SAP EWM

Production Integration in SAP EWM

In this blog, we are going to discuss the Production integration in SAP Extended Warehouse Management

Overview

SAP PP (Production Planning) and SAP EWM (Extended Warehouse Management) integration ensures smooth production operations and warehouse management, optimizing processes like material flow and inventory management. Here's a breakdown of how the integration typically works:

1. Master Data Synchronization

Material Master: Material data is essential for production and warehouse processes. Material data is shared between SAP PP and EWM.
BOM (Bill of Materials): BOM from SAP PP helps define the components required for production. EWM needs this data to reserve the appropriate inventory.
Work Centers: These are locations where production takes place. EWM manages material flows in and out of these locations.
Storage Bin and Stock Locations: EWM stores data on where materials are located in the warehouse for smooth retrieval when needed for production.

2. Process Flow

Production Order Creation (PP): In SAP PP, when a production order is created, it triggers the need for components that must be provided from the warehouse.
Reservation for Production (PP): Materials are reserved in SAP PP to ensure availability for production orders.
Material Staging (EWM): SAP EWM takes the production order and stages materials (prepares and moves them) from warehouse bins to production areas (work centers).
Goods Issue (PP): Once materials are staged and used in production, SAP PP processes the goods issue to reflect the consumption of the components.
Production Confirmation (PP): After production, SAP PP confirms the quantity produced, and this triggers EWM to update the warehouse stock with finished products.
Goods Receipt (EWM): Once production is confirmed, finished products are moved to the warehouse and a goods receipt is posted in SAP EWM to update inventory.

3. Key Integration Points

Material Movement Posting: EWM handles the physical movement, while SAP PP tracks the logical movement of stock in production.
Process Orders and Transfer Orders: SAP PP sends process orders to SAP EWM, which then creates transfer orders for picking and staging.
Warehouse Tasks: SAP EWM uses warehouse tasks to manage picking and put-away activities based on production needs from SAP PP.
Monitoring and Control: Both SAP PP and EWM provide monitoring tools to track the status of orders, material flow, and stock levels in real time.

4. Communication Between SAP PP and EWM

IDocs or RFC (Remote Function Calls): Standard interfaces like IDocs or RFC are often used for data exchange between SAP PP and SAP EWM.
Advanced Integration Using SAP S/4HANA: With SAP S/4HANA, the integration is more seamless, and the systems share information in real time using the same database (without the need for separate instances).

Benefits of SAP PP and SAP EWM Integration:

Real-time Information: Seamless flow of data between production and warehouse ensures real-time updates, avoiding bottlenecks.
Optimized Material Flow: Ensures the right materials are available at the right time and place for production, minimizing delays.
Better Inventory Control: Accurate tracking of component and finished goods inventories improves overall warehouse and production efficiency.
Reduced Lead Times: Streamlined processes reduce lead times in production and distribution.

This integration enables more efficient production cycles, improved inventory accuracy, and better synchronization between manufacturing and warehouse operations.

Conclusion

This integration enables more efficient production cycles, improved inventory accuracy, and better synchronization between manufacturing and warehouse operations.