All goods receipt in SAP are recorded to a virtual storage location. Such virtual storage locations in SAP represent warehouses or stocking locations. In SAP, it is possible to create storage locations automatically upon a receipt of good. Automatic creation of storage location needs to be configured in SAP by defining the plant and the type of good movement. Normally, from a security and controls perspective in SAP, the automatic creation of storage is enabled at the time of SAP implementation. This makes storage location maintenance much easier since SAP automatically creates a storage location.

The configuration for creation of storage location can be done by using the transaction code OMB3. Alternatively, SAP users can alos use the menu path mentioned below.

IMG >> Materials Management >> Inventory Management and Physical Inventory >> Goods Receipt >> Create Storage Location Automatically

Once SAP MM has been fully implemented, the configuration for automatic creation of storage location should be disabled. This will ensure that SAP automatically does not create a storage location other than the normal business storage locations in use. However, many companies choose to keep this configuraton enabled to ease the creation of storage locations.

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