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Functions in Warehouse Management 
You can manage materials at SKU level in AFS Warehouse Management. With AFS materials, you not only have the option of working with strategies and of querying data at SKU level in reports, but you can also use functions and processes such as goods receipt, replenishment, and goods issue. The AFS system does not provide any functions that exceed the warehouse management functionality of the standard ERP system.
The batch number entry will be optional for the transfer requirements (TR) that you have created for AFS warehouse managed materials. Only the grid value/stock category fields will be mandatory based on material master properties.

In a situation where multiple batches exist per grid value/stock category, there can be a situation where one batch has the necessary stock whereas other batches have no stock. In the lower AFS releases, while creating the TR, there was a possibility that a batch number (which had no stock on it) was selected and updated in the TR item. This meant that the conversion of this TR item to a transfer order was not possible until there was stock available on that batch. It was also not possible for changing the batch number in the TR item after it has been created. To avoid this, AFS TR items have a batch number entry optional. This means that the batch for the specific AFS SKU with enough stock will be subsequently selected.
The AFS system does not support the following processes in warehouse management:
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Cross-Docking
The cross-docking procedure, in which goods are posted directly from the goods
receipt to the goods issue without being placed in storage, is not supported
by the AFS system. This is because the materials in the AFS system have to be
assigned to a sales order before delivery can take place.
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Production Supply (WM Material
Staging)
Supplying production with materials has to occur manually at SKU level because
the AFS system does not consider data at SKU level in WM during the BOM
explosion.