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How to Understand SAP APO with ERP Location Types

ByShaun Snapp

Executive Summary

  • A Location Type is a critical component in SAP APO and interacts with ERP locations.
  • We cover the various location types used in APO and the CIF.

Introduction to Location Types in APO

APO has multiple Location Types. You will learn how to translate requirements to the appropriate Location Type, what the Location Types are, and how they are configured in APO.

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Notice of Lack of Financial Bias: We have no financial ties to SAP or any other entity mentioned in this article.

  • This is published by a research entity, not some lowbrow entity that is part of the SAP ecosystem. 
  • Second, no one paid for this article to be written, and it is not pretending to inform you while being rigged to sell you software or consulting services. Unlike nearly every other article you will find from Google on this topic, it has had no input from any company's marketing or sales department. As you are reading this article, consider how rare this is. The vast majority of information on the Internet on SAP is provided by SAP, which is filled with false claims and sleazy consulting companies and SAP consultants who will tell any lie for personal benefit. Furthermore, SAP pays off all IT analysts -- who have the same concern for accuracy as SAP. Not one of these entities will disclose their pro-SAP financial bias to their readers. 

What is the Location Type?

A location in APO is a master data item, which is what configures the supply network. Locations in SAP ERP translate to different location types in SCM. Here is the key that explains the relationships between the different locations types on the ERP and SCM sides. ERP plants are more simple organizational units. Once we get into the SCM world, more detail is necessary.

  • The main point of this is that extra characteristics are necessary with SCM locations because of the application’s planning needs. Once this master data is altered in SCM, it has no counterpart in SAP ERP.
  • Locations are normally created by being brought over from SAP ERP.
  • Locations in SAP ERP can be the following types:

ERP Locations

  1. Plant
  2. Customer Location
  3. Supplier
  4. DC

When they come into APO, they become locations with a location type. The following are the location types; as you can see, there are more than the four listed above. This means that APO takes things that are not listed as locations in ERP, things like MRP Area and Carrier, and converts them into location types:

APO Location Types


A location in APO is a master data item, which is what configures the supply network. Locations are normally created by being brought over from SAP ERP. Locations in SAP EPR can be the following types:

  1. Plant
  2. Customer Location
  3. Supplier
  4. DC

However, when they come into APO, they become locations. This is surprising to some, especially concerning suppliers, as suppliers are not represented as “plants” in SAP ERP. However, this process is automated by the CIF. The screenshot below shows the detail that opens up to the Purchasing Info Record section of the CIF:


A supplier location can be brought in as a standard supplier, a subcontract location, or a consignment location. The supplier is then shown as a vendor type, which can be seen from the screenshot below: 


All of the possible location types are listed in this drop-down of Location in APO. MRP Areas also map over to APO as locations, but the location Storage Location MRP Area or location 1007. 

Shipping Points, Transportation Zones, Customers, none of these are ERP locations, but they all come across as locations in APO.