3592881 - Customize Subtype in Storage Location

The issue is the inability to edit the "Sub Type" for an existing Storage Location under the Organizational Structure.

SAP S/4HANA Cloud Public Edition

1. Ideally there are two key sub-types to consider: third-party warehouse and cloud warehouse. These are specifically used when configuring a storage location intended to connect with either a third-party or cloud-based warehouse. 
2. If only setting up storage location for inventory management instead of warehouse management, any of the other standard storage location sub-types can be used, no matter it's labelled as raw material or finished material.

For example, one can copy from the template creating a storage location with sub-type 'Raw Material', and use it to store finished products; or create a storage location with sub-type 'Semi-finished Product' and use it for trading goods. There's no difference in terms of the configuration settings behind or the behavior of the storage location itself.

SAP Community Post: Solved: Storage location Subtype in SAP S/4HANA Cloud - SAP Community 

SAP S4, EWM, Organizational Structure, Storage Location, Sub Type, Inventory Management, Warehouse Management. , KBA , SCM-EWM-CNT-2CL , S/4HANA Best Practices for EWM (Public Cloud) , Problem