Exclude a Logistic Area from planning and availability check

The objective of this blog post is to explain the possibility to exclude inventory of specific logistics areas from planning and availability check in SAP Business ByDesign.

Warehouse Managers sometimes want to exclude certain logistics areas from planning and availability check like spare parts dedicated to the repair department or products reserved for demo purpose. Those quantities should not be considered for availability confirmation and ‘normal’ shipment to customers and thus should also not be considered as ‘available quantities’ in supply planning.

You can separate those quantities by assigning the logistics use ‘Not relevant for planning’ to a specific logistics area that shall keep that inventory. As a consequence, different inventory levels will be visible in the stock overview and the supply and demand list.

You can organize your logistics execution for these special logistics areas in two ways:

Option 1: Keep the quantities in the specific logistics area only for consumption for cost center or project or for direct goods issue for service order items. You would then not assign the logistics use ‘Storage’ to that logistics area but only the logistics use ‘Not relevant for planning’.

  • Using this stock for pick, put-away or replenishment processes is not possible. You need to move the stock to a ‘standard’ warehouse logistics area first.
  • Example: the repair department has products available whereas in the warehouse there is no stock on hand anymore. Now, in case of an important sales order, the responsible teams agree on using the stock from the repair department. In consequence, you need first to move the stock to a different logistics area with the logistics use ‘storage’ before you can use it in outbound shipment process.
  • In case of receiving goods from the supplier, you must post the goods receipt into storage first, and then move it to the specific logistics area.

Option 2: Allow quantities on a specific logistics area to be immediately used in exceptional cases in picking, put-away or replenishment through manual selection.

  • Example as above. The consequence would be that the warehouse operator could immediately pick from the specific logistics area.
  • This option requires the additional assignment of the logistics use ‘Storage’ to the specific logistics area. It is recommended to exclude this specific logistics area from the material flow rules because it would be automatically proposed otherwise.

Here you find a link to a video with a demo.