The SAP People: August 2010

SAP batch handling means an additional key fields for users to identify the same material (May be with different characteristics)

For e.g.

Normal control : Plant + Material + Stor. Loc.
Batch Handling : Plant + Material + Stor. Loc. +Batch No.Reason for implementing batch management

Download - Practical Batch Process Management

You can use batches through out the business process.
Batches are always uniquely assigned to a material.
Batches can only used for materials that are to be handled with batches.

Reason for implementing batch management

Traceability in case of complaint & recall issue
Search via expiration date
ISO certification
Usage of batch characteristics to manage which batch fits to a specific requirement
One of the most interesting term that comes into picture with batch management is SLED.

Batch Management in Logistics
It is integrated into various SAP process flow

Sales & distribution
Production
Purchasing
Goods Receipt
Quality Management

Process flow

Once the raw material is posted at bin level again process flow starts as below

Sales and Distribution

A sales order for a material subject to handling in batches is posted. You have previously agreed with the customer that the batches of the material he is supplied with must meet certain specifications.
You run a batch determination, as well as a batch availability and usability check. The system determines that the sales order cannot be met with the present stock.
A requirement is transferred to production.

Production

A production order (discrete manufacturing) or a process order (process manufacturing) is created for the material to be handled in batches due to the posted sales order.
A batch number can be assigned for the quantity of material to be produced.
As raw materials with certain specifications are required for the manufacture of this material, batch determination is triggered.

Purchasing

If there is an insufficient quantity of raw material, the required quantity with the appropriate specifications is ordered from the vendor.

Goods Receipt

Due to the purchase order created by purchasing, the raw material is posted to the stock in quality inspection during goods receipt.
The batch is assigned a batch number.
An inspection lot is created

Quality Management

The delivered batch of raw material is subject to quality inspection.
The inspection results are recorded, and become available to batch determination as soon as the usage decision has been recorded.
The batch is posted to either restricted or unrestricted stock.

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Warehouse Management

The batch of raw material is placed into stock at storage bin level.
Once the raw material is posted at bin level again process flow starts as below
In production the production or process order is released. A batch number is assigned to the material to be produced. An order-related inspection lot is created for quality inspection. The raw materials warehouse is notified of the transport requirement for material provision.
In WM using the transport requirement, the batch of raw materials is provided at the correct time and date. The manufacturing process is completed in production & the batch of raw material is consumed

In Production, the manufacturing process is completed, the batch of raw material is consumed.
In IM, the goods issue for the batch of raw material required by production is posted.
In QM, inspections are conducted during the manufacturing process & inspection results are recorded.
In Inventory Management the batch produced is posted to the stock in quality inspection & an inspection lot is created.
In QM, the batch produced is subject to a quality inspection for final release. The inspection results are recorded & a usage decision is made.
Once the quality inspection is done in IM, the batch produced is posted to unrestricted-use stock.
In SD, during delivery, batch determination is conducted with reference to the sales order. During batch determination, an availability check is carried out.
Finally in IM, The goods issue is posted.

Depending on the plant, material and operational levels we can choose the level at which you want the batch number to be unique. The material number is unique at the client level. However, the uniqueness of the batch number can be defined at the following levels -

Plant Level

The batch No. is unique in connection with plant & material
The batch No. is only known in the plant in which it was created. So if the stock is transferred to another plant, the batch is unknown in the recipient plant & the system does not adopt any data
To avoid such issue, you have to recreate & specify the batch in receiving plant, i.e. the same batch No. with different specification in several plant

Material Level

The batch No. is unique in all plants in connection with the material, which means the same batch No. has the same meaning for the material in all plants.
One batch No. can't have different specifications in different plant.

Client Level

The batch No. is unique in the whole client
Batch No. can only be assigned once in the client

Changing The Batch Level

1. You can not change back the level from a higher level to plant level in the standard system. However you can change the batch level from client level to back to material level.
2. To change the batch level from plant level to material level, the material has to be subject to batch management in all the plants.

Batch No. Assignment

1.You assign a unique key to a batch. This unique key is the batch No. Batch Nos are uniquely identifies a batch in SAP system. The batch level you choose determines the area in which the batch No. is unique.

2. You can assign the batch No. at different times, for Ex:
    During manual creation of a batch
    When carrying out goods movement (Ex: goods receipt or transfer posting)
    During creation of a process or production order
    When the usage decision is made in quality management
    When creating a purchase order

Batch No. Assignment

Features
You assign the batch number either:

• Manually or
• Automatically using the Internal Batch Number Assignment function

Internal batch number assignment is configured in the step Internal batch Number Assignment in Customizing for Batch Management.
Internal batch number assignment is activated for the complete client, unless you exempt individual plants or materials using a customer exit.

Maintain Internal Batch Number Assignment Range
Standard settings

In the standard, number range 01 from 0000000001 to 9999999999 has been defined for number range object BATCH_CLT.
Activities
Check whether number range interval 01 exists and maintain new number ranges, if necessary.
Further notes
If you replace the number range object and/or interval proposed by the system with your own object or interval using customer function call EXIT_SAPLV01Z_001, maintain the number range object and/or interval in this step.

Here you maintain the number ranges for the external batch number assignment.

Standard settings
In the SAP Standard system, no external number range object is defined for the number range object BATCH_CLT. The number range 02 is checked without changing the number range object or the number range (see SAP enhancement SAPLV01Z -> EXIT_SAPLV01Z_003).
Activities
Check whether the number range 02 exists and, if required, maintain new number ranges.
Further notes
If you want to replace the proposed number range object and/or the interval by your own number range object and/or interval using the Customer Function Calls EXIT_SAPLV01Z_003, you must also maintain the number range object or the interval in this step.

Batch character &; classifications
Batch Specifications

Batch specifications describe the technical, physical and/or chemical properties of a batch. You store batch specifications, such as batch status or active ingredient potency, as characteristics in the classification System.

Example:
Batches of car paint are specified by color value, viscosity and expiration date. You store the characteristics color value, viscosity and expiration date for these properties in the classification system and assign the respective values to each individual batch.

Specifications in the Classification System

You define properties of the material and its batches and store them as characteristics in the classification system.
You create classes for the material and the batches and assign the characteristics to the classes. You can use the same class for different materials.

You must assign the class to a class type. There are two class types of the category Batch for batches and their materials:
– Class type 022 at plant level
– Class type 023 at client or material level

You create the material master record, assign the desired class to the material and assign characteristics to the material.
You can assign only one class of the class type “batch” (022, 023) to each material. This means that multiple classification is not possible.
Depending on the system settings, you create the batch master record manually, or you let the system carry this out automatically.

Classification with Standard Characteristics

In Customizing for Batch Management, you copy the standard characteristics to the current client by choosing Batch Valuation→ Update Standard Characteristics. The system creates and assigns to the standard characteristics the variant functions and dependencies that are required for using the standard characteristics in Batch Determination.

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SAP MM-Functionality and Technical Configuration (2nd Edition)

Material Master Setup for Batch

You can only create batches for a material if the material is to be handled in batches. You must first specify in the material master record that the material is to be managed in batches for the specified plant. To do this, you must set the batch management requirement indicator in the material master record.

(Example, in the Purchasing view field MARA-XCHPF or Storage Location view field MARC-XCHPF).

Batch indicator can be set in the below area while creating material in MM01

Sales/General.plant
Plant/Storage 1
Purchasing
Warehouse Mgmt 1

The replenishment lead time should not be considered in the dynamic availability check for batches, since batches are not reproducible. In the General Sales view, or in the MRP view, choose availability check group CH. Group CH takes the identical inward and outward movements but does not consider the replenishment lead time
You use this function to enter batch data into a separate master record.

Prerequisites
You can only create batches and batch master records for a material if the material is to be handled in batches. To do this, you must set the Batch management indicator in the material master record.

BATCH Must Exist Before the First Goods Receipt?
Both the master batch and the stock data for the batch are created automatically during the first goods receipt. Thus, you do not need to create this data manually. However, if you want to define specific data for a batch, such as the shelf life expiration date, you have to manually maintain the batch data.
Creating a Batch Master Record Manually
To create a batch master record manually, choose Logistics →Central Functions →Batch Management →Batch →Create (T-code MSC1N)
If the material is not yet classified, you can choose a class when creating the batch master record.

Creating a Batch Master Record in the Background

The system creates a batch master record in the background in the following procedures:

The first time goods are received for a batch
During creation of a process or production order
When a usage decision is made in quality management
During a recurring inspection
For transfer postings (when you want to split a batch, for example)
When creating a purchase order

You can make the setting for creating batch master records in the background in Customizing for Batch Management under Initial Batch Creation and Batch Valuation → Valuation for Creation of New Batches Using Function Module.

You can use customer exit to create batch master record in background. For Ex. if you want batches to be available 10 days after goods receipt, you can use the customer exit interface to ensure that the system fills the Available from field with a date that is 10 days after the date of goods receipt.

Deleting a Batch Master Record

You have to flag a batch master record for deletion so that the archiving and deletion program can delete it. To do this, you call up the batch master record in the change mode. You can set a deletion flag at plant level or storage location level, provided that a deletion flag has not yet been set at a higher level (For Ex. Client). The system then deletes the batch master record at this level and at all levels below it in the hierarchy.

When you flag a batch master record for deletion, the system does not check whether the batch master record can actually be deleted. The archiving and deletion program checks this. In most companies, the system administrator runs the archiving and deletion program at regular intervals.
Note:
If a material is flagged for deletion at plant level, a deletion flag appears at plant level and at storage location when you maintain the batch.
If a material is flagged for deletion at storage location level, you can flag batches for deletion at plant level, but not at storage location level.

Batch Status Management

This component is used to indicate whether a batch is usable or not. This allows you to prevent goods movements for batches that are not usable, as well as their delivery to customers and their use in Production.
You activate batch status management in Customizing for Batch Management under Specify Batch Level and Activate Status Management.
The level at which you define the batches to be handled determines the plants in which status management is used for a material to be handled in batches.

Features

Batch Status
The system uses an indicator in the batch master record to show batch status.
– Status unrestricted = the batch can be used
– Status restricted = the batch cannot be used
The status is entered as a batch characteristic in Classification. In addition, for each status, you can specify details as to where the batch can be used or why the batch is restricted, for example, blocking reasons such as faulty or spoilt. You store these comments as user-defined characteristics within the classification of the batch.

Stock Types
For a material that is subject to batch management, two stock types directly depend on the batch status within Inventory Management.

• Unrestricted stock
• Restricted stock

All other stocks that are managed at batch level do not give any indication of the batch status. These are posted independently of the status indicator in the batch master record:

• Inspection stock
• Blocked stock
• Stock in transfer
• Blocked stock returns

Stock Update
The unrestricted stocks of a batch are updated with regard to their usage status.

Features
Batch Status and Availability Check
The batch status determines whether a batch is available or not: a batch is available as soon as it enters a stock type that is included in the availability check.
You use a combination of availability check group (CH) and checking rules to control whether or not restricted batches are to be considered during the availability check.

Batch Determination

In the logistics process, that is from procurement to sales, you are required time and again to specify batches for individual business transactions. You can use batch determination for all types of goods movements from the warehouse to find batches that meet defined specifications
In Inventory Management (IM), you can use batch determination in goods movements when you are dealing with a goods issue posting
In Production (PP) you can use batch determination in production and process orders and run schedule headers to find suitable material components for the product to be produced, and to pick these from stock.
In Sales and Distribution (SD), it is possible to determine batches that match customer specifications. Batch determination can be triggered at two points in the process, either when the sales order is entered, or when the delivery is created
In the Warehouse Management System (WM), batch determination is used to optimize warehousing, for example, in view of stock removal strategies and replenishment from stores.

Batch determination is done by condition technique

The following must be defined in Customizing for Batch Management:
• Condition tables
• Access sequences
• Strategy types
• Search strategies
•Assignment of batch search procedure to business transactions
• Selection classes
• Sort rules

Batch Determination - Process Flow
You start batch determination manually, or the system starts automatic batch determination.

The system then carries out the following steps in succession:

It looks for a search procedure for the business transaction
It searches through the strategy types listed in the search procedure for a search strategy. The first valid search strategy is adopted and all other search strategies are ignored.
It then uses the characteristics from the selection class of the search strategy to look for batches with suitable specifications
It checks whether the batches are available
It sorts the batches that were found and are available according to the sort rule from the search strategy
The system selects a proposed quantity in accordance with the proposed quantity from the search strategy.

Sort sequence

In sort rules, you specify the characteristics according to which the system sorts the batches it finds. You can specify an ascending or descending sort sequence for each field.
The sort rule characteristics must be characteristics or Standard Characteristics that you have used for the classification of the batch. Exceptions: You can only use LOBM_LGORT (For storage location) and LOBM_MENGE (For quantity) for sorting
The characteristics LOBM_MENGE and LOBM_LGORT must not be contained in the batch class, otherwise sorting will not work with these characteristics.

Batch Determination in Sales and Distribution

There are four points at which you should use batch determination in Sales & Distribution. These are:
• Quotations
• Quantity contracts
• Sales orders (or scheduling agreement)
• Delivery

Batch Determination in Quotations and Quantity Contracts

Batch determination in quotations or quantity contracts allows you to reserve batches for a customer at a very early stage. This is because requirements are transmitted in a quotation or a quantity contract ensuring that the corresponding batches can be reserved
Determining batches at an early stage ensures that the material is available when the customer requires it.
You can define whether batches that you have already determined in quotation or quantity contract should be fixed or un modifiable. You use the message system to control this. If you choose the setting Error message (E), the batches are fixed. If you choose either No message () or Warning message (W), you can still change the batches in the order. You make these settings in Customizing for Sales and Distribution.

Batch Determination in Sales Orders
There are two ways you can run batch determination in sales orders:
• Automatically, during creation of the sales order
• You can trigger it manually during order processing;

Use batch determination here, if a customer, for instance, requires a material with certain set specifications.

Contrary to deliveries, batch splits are not possible for sales orders (as opposed to delivery). Even if you have defined a certain number of batch splits in the batch search strategy, the system overrides this default setting.

Batch Determination in Deliveries

There are two ways in which you can run batch determination when taking deliveries:
  • Automatically, during the background transfer of the order data for all relevant items of the delivery, or
  • You can trigger it manually when you process the delivery

You should choose batch determination in deliveries, if
     • You are dealing with materials that are constantly available (mass production)
     • The expiration date, or the remaining shelf life are the most important criteria
     • Batch splits are necessary. If batches have already been specified in the sales order, they are copied to the delivery, and cannot be changed there.

Pick-Up Lists

This function (T-code MB5C) generates a list of sales documents which contain a specific batch of a material. If you know the sales document, you can enter it directly. From this list, you can carry out the batch where-used list function.
To be able to create the batch where-used list from within the list of sales documents, the batch where-used list function must be active.
The list contains the following data:
• Plant
• Sales document and item
• Material number and batch

From this list, you can carry out the following functions:
• To display the sales document, material, or batch, place the cursor accordingly and select Choose
• To create the where-used list of the batch, choose Top-down or Bottom-up.

Archiving Batch Where-Used Records
Use

Batch where-used records are data records from the database table CHVW, which logs goods movements of materials handled in batches
The archiving of batch where-used records:
Ensures the availability of archived data for the batch where-used list to meet legal requirements
Prevents memory space and run time problems due to increasing movement data

Prerequisites
The system only archives batch where-used records whose batch master records have already been archived. This ensures that no other batch where-used records are created for a batch

Batch-Specific Units of Measure

In some industry sectors (i.e. the pharma, chemical, steel, or paper) , the composition or attributes of products vary to some degree. Therefore, you cannot use a fixed conversion factor to convert quantities of these products into various units of measure. Instead, each batch has to be given an individual conversion factor. This component allows you to handle materials like these throughout the entire logistics chain.

EXAMPLE:
Steel/Paper/Wood/Textiles /Pharma etc.
These materials are handled in batches. Among other things, these batches convey the product’s grade. There is a fixed relationship between the number of pieces and the weight of each batch; the weight per piece. The quantity in the purchase order is listed in pieces, but billed in kilograms. The dimensions of the individual parts in each of the batches are different, but they still belong to the same material.

Price Determination
This function calculates the price of a specified physical quantity using the proportion quantity or product quantity it contains.

You can use this function if you choose a batch-specific unit as a unit of measure in the condition record in Sales and Distribution (SD). The process can be carried out in base units of measure or batch-specific units of measure.

Prerequisites

• You must choose condition formula 50 in the calculation procedure for the condition types for which you work with batch-specific units of measure, in the AltCBV (condition formula for the condition basis) field.
You do this in Customizing for Sales and Distribution under Basic Functions →Pricing → Pricing Control →Define and Assign Pricing Procedures.
• In the condition record, you must choose batch-specific units of measure in the UoM field.

In SD if you need a batch specific price for the similar material, then you need to maintain the condition record for the material with the combination of

Material + Batch Number

Shelf Life Expiration Date (SLED)
The term shelf life expiration date (SLED) is predominantly used in the pharmaceutical industry and food industry.

Batches of materials that may no longer be used or sold after a certain time period are normally assigned a shelf life expiration date (SLED). This function calculates the SLED from the total shelf life and the production date during the following procedures:
• At goods receipt (GR)
. • Upon automatic goods movements
If a total shelf life is not specified, you must manually enter the SLED in the goods receipt document.
Prerequisites

You must activate the automatic calculation of the shelf life expiration date or the shelf life expiration date check in Customizing for Batch Management.

1. Automatic calculation and check of the SLED of a batch If the total shelf life is specified in the material master record, the system calculates the SLED as follows:

SLED = total shelf life + production date from GR document.

2. Rounding off the SLED that has been calculated automatically

You use the rounding indicator in the material master record to specify whether and how the system rounds off the SLED that has been calculated automatically. You can decide:
– not to round off the SLED
– to round off to the first day of the time period specified
– to round off to the last day of the time period specified
SLEDs that are specified manually are not rounded off.

Checking the remaining shelf life, for batches that were processed externally, for example

If the minimum remaining shelf life is specified in the material master record, the system calculates the remaining shelf life from the day of goods receipt to the SLED. The remaining shelf life must be greater than the minimum remaining shelf life for the batch to be accepted.

If the calculated remaining shelf life is less than the minimum remaining shelf life, a warning or error message is issued depending on the system settings.

Batch Worklist
In a batch work list, you can group batches together and display and change their data.

Structure of Worklist

You can fill a worklist (Logistics →Central Functions →Batch Management →Batch →Worklist with as many batches as you wish. To obtain a better overview of your worklist, you can structureit using worklist folders.
You define worklist folders in Customizing for Batch Management by choosing Tools →Worklist →Define Worklist Folder.
There are two types of worklist folders: public and private . You can assign folders to as many users as you wish. The contents of a folder marked as public can be displayed and processed by all users. A private folder can only be processed by the user assigned to it.
The system also automatically provides a private “standard folder” for each user.
In Customizing for Batch Management, you define worklist folders for all users by choosing Tools
→Worklist →Assign Worklist Folder to Users.

Batch determination configurations (SD specific)

Specify Batch Level Menu Path:
Enterprise Structure Logistics General Batch Management  Specify batch level and activate batch status management Transaction OMCT.

Batch Number – Activate Internal Number Assignment Menu Path:
Enterprise Structure Logistics General  Batch Management  Batch Number Assignment  Activate internal batch number assignment Transaction OMCZ

Batch Creation – for Goods Movements Menu Path:
Enterprise Structure Logistics General Batch Management  Creation of new batches  Define batch creation for goods movements Transaction
(If you want OR don't want batch numbers to be created automatically in certain movement types, this setting should be used )

Characteristic Value Assignment — Update Standard Characteristics Menu Path:

Enterprise Structure Logistics General Batch Management  Characteristic Value Assignment  Update Standard Characteristics Transaction
(This program needs to be executed in all clients)

Activate Batch Classification for Goods Movements in Inventory Management Menu Path:
Enterprise Structure Logistics General Batch Management  Characteristic Value Assignment  Valuation for goods movements  Activate Batch Classification for goods movements in Inventory Management Transaction OMCV

Batch Determination – Condition Table(Cross Client) Menu Path :
Enterprise Structure Logistics General Batch Management  Batch Determination & Batch Check  Condition Tables  Define SD condition Tables Transaction V/C7

Batch Determination – Access Sequence(Cross Client) Menu Path:

Enterprise Structure Logistics General Batch Management  Batch Determination & Batch Check  Access Sequences  Define SD Access Sequences Transaction V/C2

Batch Determination – Strategy Types Menu Path:
Enterprise Structure Logistics General Batch Management  Batch Determination & Batch Check  Define SD Strategy Types Transaction V/C1

Batch Determination – Batch Search Procedure Menu Path:
Enterprise Structure Logistics General Batch Management  Batch Determination & Batch Check  Define SD Search Procedure Transaction V/C3

Batch Determination – Batch Search Procedure Allocation(SD) Menu Path:
Enterprise Structure Logistics General Batch Management  Batch Determination & Batch Check  Allocate SD Search procedure Transaction V/C5

Batch Determination – Activate Automatic Batch Determination(SD) Menu Path:

Enterprise Structure–> Logistics General–> Batch Management –> Batch Determination & Batch Check –> Activate Automatic Batch Determination in SD –>For delivery item categories Transaction V/CL
(If you want Automatic Batch Determination in Sales order, then you need to activate the same here)

Create Characteristics Menu path:
Cross-Application Components --> Classification system --> Master data --> Create Characteristics (T-code CT04)
(Here you define what are the values you need to be consider during batch determination & similar Characteristics are used by all modules)

Batch Determination – Batch Selection Class Menu Path:
Enterprise Structure–> Logistics General–> Batch Management –> Batch Determination & Batch Check –> Define Selection Classes Transaction CL01

Batch Determination – Batch Selection Class Menu Path:

Enterprise Structure–> Logistics General–> Batch Management –> Batch Determination & Batch Check –> Define Selection Classes Transaction CL01

Batch Determination – Sort Rule Menu Path:
Enterprise Structure–> Logistics General–> Batch Management –> Batch Determination & Batch Check –> Define Sort Rules Transaction CU70

Batch Determination – Make Settings for Batch Where-used list Menu Path:
Enterprise Structure–> Logistics General–> Batch Management –> Make Settings for Batch Where-used list Transaction OMBB

Once all the IMG configs are done, then create the batch search strategy (Condition record) for the material in t-code VCH1, where you need to assign the classification & sort sequence as configured before.

Now you can do the goods receipt for the material where batches will be assigned automatically at the time of GR. Then create the order & delivery to see the result of batch determination.