2793156 - Storage location entered is WM-relevant

In your SAP Public Cloud environment, you have certain storage locations where Third-Party de-centralised Warehouse Management is activated. This procedure is described in the SAP Best Practises scope item 1ZQ. 
If you try to carry out a Physical Inventory in one such storage location, you receive error message 'Storage location entered is WM-relevant' and you are unable to proceed.

SAP S/4HANA Cloud All Versions

1. Open the APP 'Create Single PI Document'. 
2. Enter Plant and Storage location. 
3. Press return. 
4. Error M7727 'Storage location entered is WM-relevant' is raised. 

A Physical Inventory cannot be performed the central system, for storage locations which are connected to a 3rd party warehouse. The Physical Inventory has to happen in the 3rd party warehouse, because only there, the detailed Org level, warehouse and stock information is available.

If the stock should not actually be managed in a 3rd party warehouse, you can remove the warehouse assignment as follows in the Public Cloud.
Change the customising via SSCUI 500199  - Assign Warehouse Number to Plant and Storage Location - 101109

If the 3rd party warehouse assignment is required, then the Physical Inventory has to be carried out in the 3rd party warehouse

1ZQ, T320, SIMG_SAPCOML2, SAPMM07I, FORM LAGERORT_LESEN, M7727, M7 727, WM relevant. , KBA , MM-IM-PI-PI , Physical Inventory , MM-IM-PI-PI-2CL , Physical Inventory (Public Cloud) , LE-IDW-CEN , Central Processing , Problem