2 Step KANBAN Stock transfer with EWM managed storage locations

Objective: The objective of this blog is to showcase system demo and settings that we need to perform for 2 step KANBAN stock transfer with EWM managed storage locations. Both source and destination storage locations will be EWM managed.

Context: 2 step stock transfer is generally used when the source storage location from which the material for replenishment is to be withdrawn and the production storage location (destination storage location) are spatially separated and the material therefore has to be transported.

We will follow the process steps documented in below SAP help link and outline all the system configuration that we need to do for this process to work.


Ok- all good to go!

Let’s start with the first step .

Step 1

KANBAN is set EMPTY in S4 CORE system. This step will create outbound delivery in S4 CORE that will be distributed to EWM for logistics steps to be done like picking, packing, goods issue etc.

Which delivery type system will create? What will be the shipping point? Which customer? What will be movement type in the delivery? Lots of questions will arise for this step.

Let’s go one by one.

Delivery type and movement type determination

Please follow below node for delivery type and movement type determination.

For the combination of your plant and storage location , please enter correct delivery type here. You can create your own new delivery types for KANBAN and maintain in this customizing. We take SAP standard delivery type DOG for outbound process and DIG for inbound process.

Movement type for outbound should be set as 313 and for inbound as 315.

For our example storage location 1010 is the source and 1500 is the destination.

Ship to party determination for Outbound delivery:

We need to maintain customer for the plant. Please follow below customizing node to do so.

You also need to maintain sales area in above customizing node.

What else do we need to create an outbound delivery?

We at least need- sales area, delivery type, and shipping point to run the transaction to start creating delivery. You may check first screen of transaction VL01NO.

Shipping point determination

This is determined from below node. Please have a note this is not determined based on normal shipping point determination rules based on the combination of shipping condition, loading group and delivery plant.

You can assign shipping point at plant level in above customizing and give more specific shipping point at storage location level as well.

We are good now to make KANBAN empty and expect our outbound delivery to be created.

Once KANBAN is set EMPTY- OBD will be created and distributed to EWM system. OBD can be seen in PK13N as well once you double click the KANBAN ID.

Once GI is posted for OBD from EWM system, two things happen at the S4 CORE side.

1- IBD is created at S4 CORE side for movement type 315 to receive goods from stock in transit to receiving storage location.

2- KANBAN status is set to In-transit

Not to mention, GI is posted with material document 313 which will remove stock from supplying storage location and put into stock in transfer of receiving storage location.

Both IBD and OBD can be seen in the PK13N once you double click on the KANBAN ID number.

IBD will be also linked in the document flow of the OBD.

Now let’s switch our discussion back to IBD. How does supplier is determined for IBD?

We know what delivery type and movement type IBD should have, but we haven’t talked about the supplier determination until now.

Well- it will be determined from the same node where we did setup the shipping point. Please scroll up and check , we maintained supplier 200 for our test 🙂

IBD will be distributed to EWM system and will be processed like normal EWM inbound delivery- Create and confirm warehouse task->GR will be posted upon WT confirmation.

You can also post GR as first step and later create and confirm WT.

Once GR is posted for the IBD what happens?

1- GR material document is posted with MVT type 315. This moves stock from stock in transfer to receiving storage location.

2- KANBAN status is set to FULL (Color legend= GREEN)

What will be the put away strategy for the IBD?

Once we do stock transfer with KANBAN then we need to assign destination storage bin in the KANBAN control cycle. This is the bin location where stock will be put away. You can see the PSA assignment to the IBD. This will make sure that stock is put away to the correct PSA bin location as per the KANBAN control cycle.

We are about to finish our blog, but haven’t talked about KANBAN replenishment strategy and control cycles.

Ok- let’s cover important thing that we need to take care about the KANBAN replenishment strategy.

KANBAN replenishment strategy:

Please go to below node to customize KANBAN replenishment strategy.

SAP standard is 0007. You can copy and create your own. You must need to change MVT type to 313 for two step process to work. Rest all fields should stay like as in standard.


We must need to create KANBAN CC for the combination of our material, plant and PSA. PSA- is production supply area which you need to create in transaction PK05. This PSA must be created for destination EWM managed storage location.

In KANBAN CC, you maintain the source storage location as well as destination storage bin where the stock should finally go.


PSA is created in transaction PK05 . It must be created for EWM managed destination storage location.

So finally we are done with this blog.

There are some other ways by which you can determine supplier/customer for certain processes. like setting vendor, customer, delivery type at MVT type level. You can also define default customer, vendor, shipping point, sales area at warehouse level.


After following this blog, you will be able to understand the basic material flow in two step KANBAN stock transfer from one EWM managed storage location to another EWM managed storage location and different system settings that we need to perform to make this process work.

Hence the KANBAN 2 Step stock transfer topic ends here. I will wait for your comments and improvements to make this blog more productive.

Please feel free to provide your valuable comments, feedback and ask any questions pertaining to this blog post on material flow or system settings. Your feedback and comments are welcome.

Thank you very much for your time.

Best regards

Aslam Ansari