Unlocking Supply Chain Efficiency:
Integrating SAP ERP with Extended Warehouse Management (EWM)

In today’s rapidly evolving business landscape, the integration of SAP ERP and Extended Warehouse Management (EWM) is essential for organizations looking to streamline their supply chain operations and enhance warehouse efficiency. SAP ERP serves as the backbone for managing core business processes like procurement, sales, finance, and production, while SAP EWM offers advanced capabilities to optimize warehouse operations, from inbound and outbound logistics to inventory management. Linking SAP ERP with EWM enables seamless data flow and real-time visibility across these systems, ensuring synchronized operations that reduce errors, increase productivity, and drive overall business success. This blog explores the critical role of this linkage and walks you through the essential configuration steps for effective integration between SAP ERP and EWM.
SAP ERP and EWM Configuration
To achieve the seamless integration of SAP ERP and EWM, configuration must be completed on both sides: SAP S/4HANA ERP and SAP EWM. Let’s start with the necessary configurations on the S/4 ERP side.
Configuration on the S/4 ERP Side
- Name Logical System
- This step is managed by the SAP BASIS consultant. Naming the logical system is crucial for establishing communication between SAP ERP and EWM.
- Path: SPRO > IMG > Integration with other SAP components > Extended Warehouse Management > Basic Settings for setting up the system landscape > Name Logical System.

2. Assign Logical System to a Client
- This step involves assigning the S/4 logical system to a client and is also performed by the SAP BASIS consultant.
- Path: SPRO > IMG > Integration with other SAP components > Extended Warehouse Management > Basic Settings for setting up the system landscape > Assign Logical System to a Client.

3. Setup RFC Destination
- The RFC (Remote Function Call) destination must be set up to allow proper communication between SAP ERP and EWM. Testing the connection is important to ensure that it is working as expected.
- T-code: SM59.
- Path: SPRO > IMG > Integration with other SAP Components > EWM > Basic Settings for setting up the system landscape > Setup RFC Destination.

- To confirm the connection:
- Click on “Remote Logon” to open a new SAP window.
- To confirm the connection:

- Click on “Connection Test.” The result should not throw any errors, and the “msec” field should display in the result column.

4. Basic Settings for EWM Linkage
Following steps are carried out by the SAP EWM consultant.
4.1 Configure EWM-Specific Parameters
- Path: SPRO > IMG > Integration with other SAP Components > Basic Settings for EWM Linkage > Configure SAP EWM-Specific Parameters.

4.2 Generate Distribution Model
- The distribution model is essential for transactional data transfer between SAP ERP and EWM.
- Path: SPRO > IMG > Integration with Other SAP Components > EWM > Basic Settings for EWM Linkage > Generate Distribution Model for Transactional Data Transfer to SAP EWM.

- Check whether the distribution model is configured by using the T-code BD64 – Display Distribution Model.

4.3 Assign RFC Connection
- T-code: BD97- Assign RFC Destinations for Synchronous Method Calls

5. Assign Warehouse Number to EWM Warehouse Number
- This step links the warehouse numbers between the ERP system and the EWM system.
- Path: SPRO > IMG > Integration with Other SAP Components > EWM > Assign Warehouse Number to EWM Warehouse Number.

These are the primary configuration steps on the S/4 ERP side. Now, let’s move on to the EWM-specific configurations.
EWM-Specific Configurations
- Define Own Business System
Business System: This defines the business system of the SAP EWM itself, specifying the technical system ID and client it operates within. It’s used to uniquely identify the EWM system in integration scenarios.
- Path: SPRO > IMG > SCM EWM > EWM > Interfaces > ERP Integrations > General Settings > Define Own Business System.

2. Define Business System
- Path: SPRO > IMG > SCM EWM > EWM > Interfaces > ERP Integrations > General Settings > Define Business System.

3. Assign Warehouse Number from Logistic Execution
- Path: SPRO > IMG > SCM EWM > EWM > Interfaces > ERP Integrations > General Settings > Assign Warehouse Number from Logistic Execution.

4. Assign BP (Business Partner) to Plant
- Path: SPRO > IMG > SAP EWM > EWM > Interfaces > ERP Integrations > General Settings > Assign Business Partner to Plant.
- In SAP EWM, the Business Partner refers to the Party Entitled to Dispose (PED), responsible for managing the goods. The PED must be assigned to the warehouse number to ensure accurate ownership and control over warehouse operations.

5. Control for RFC Queues
- Path: SPRO > IMG > SCM EWM > EWM > Interfaces > ERP Integrations > General Settings > Control for RFC Queues.

6. Assign RFC Destinations for Logical System
- Path: SPRO > IMG > SCM EWM > EWM > Interfaces > ERP Integrations > General Settings > Assign RFC Destination for Logical System.

7. Map Storage Locations from ERP to EWM
- Path: SPRO > IMG > SCM EWM > EWM > Interfaces > ERP Integrations > Goods Movement > Map Storage Locations from ERP to EWM.

Conclusion
Integrating SAP ERP and SAP EWM requires thorough configuration on both systems to ensure seamless data exchange and process synchronization. The steps outlined above provide a comprehensive guide for setting up the linkage, ensuring that warehouses are managed efficiently while maintaining real-time visibility of inventory and logistics operations. Once configured properly, this integration can significantly boost operational efficiency, reduce errors, and improve overall productivity in warehouse management.
Author
Rahul Gandi​
SAP EWM Functional Consultant
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