Batch Management

Define Batch Management:

 Its is mostly used in Process Industries

 If the company manufactures thousands of products every day. They are going to the market. When
respective customer identifies some kind of issues for the respective product then if we don’t have a
batch number then it is difficult to identify on which date the product got manufactured and what
exactly it belongs to and that analysis will be difficult
 If we had the Batch number, If the company manufacture 1000 Qty, at the time of packing we will
give/ assigned a Batch Number as "1". Again if the company manufactures another 1000 Qty then it
will be assigned to Batch number as "2". When customer is giving some complaint for the material of
Batch number "2". then we can analyse the Batch number "2" on which date it was manufactured and
also we can check the BOM that what kind of Raw material we used to manufacture the product and
then we take the samples of those Raw materials and respect R&D team will do the analysis and they
will identify the issue caused
 Then we identify the characteristics and properties of that Raw material and how it was approved in
Quality. And anything it was released without any checking. This kind of analysis can be done with the
Batch Number.
 These are having lot of advantage to use the Batch Management
 If the Stock is available then Batch management cannot be activated
 Batch Management can be used in all industries. It is mainly used in the following:
o Chemicals
o Pharmaceuticals
o Cosmetics
o Health Care
o Foodstuffs
o Retail
o Aerospace
o Mill Products
o Mining

 Batch Management incorporates the entire logistics process, from procurement to sales
 It is closely linked with classification, but can also be used without classification.
 You can only search for batches via the batch determination function if the batches are classified.
 In a process manufacturing environment, production is usually executed in batches. In addition, many
materials entering the process are managed separately in batch stocks with different specifications.
 A batch is a quantity of the material produced during a given production run.
 A batch represents a homogeneous unit with unique specifications.
 A Batch is a subset of the total quantity of a material held in stock. The subset is managed from all
other subsets of the same material.
Depending on the plant, material and operational levels we can choose the level at which you want the batch
number to be unique.

However, the uniqueness of the batch number can be defined at the following levels:

o In combination with the material and plant

o In combination with a material number
o At the client level

If the Batch level is set to Client Level in the system :

 The same batch number can only be assigned once within the entire client.
 It is uniquely assigned to one material number.
(or)
 In this case, the Batch number is unique for the entire Client, meaning the same Batch number will not
be generated for different Plants under the same Company Code. This method is useful when plant-to-
plant stock transfer is used, and the Batch number is supposed to be unique.

Example :

o Batch number 1 – Material X, Plant P1

o Batch Number 1 won’t be repeated again for any material under any plant

If the Batch level is set to Plant Level in your system, the following applies :

 The batch number can be reassigned for a material with a different specification in each plant.
 However, you can transfer a stock from one plant to another between batches with the same number,
even though the batches do not necessarily have the same specification. In such cases, the batch
quantity transferred assumes the specification of the destination batch.
 If you want the batch specification to be unique across all plants, you can only achieve this through
organizational measures. The system does not support this. In this case, you are recommended to
switch to a higher batch level.
(or)
 At a plant level, a Batch number is unique for a material inside a plant only. The same Batch number can
be generated at another plant under the same Company, though these Batches are not the same. If a
plant-to-plant stock transfer scenario is used, plant-level Batch numbering is not suitable

Example :

o Batch number 1 – Material X, Plant P1

o Batch number 1 – Material X or Y, Plant P2

If the Batch level is set to Material in your system, the following applies :

 A batch has the same specification for all plants at which a material is stored.
 The same batch number can be reassigned with a different specification for each material.
(or)
 With this method, the Batch number will be unique at the material level only. Thus, in a given plant,
different materials can have the same Batch number.

Example :

o Batch number 1 – Material X, Plant P1

o Batch number 1 – Material Y, Plant P1
o Batch number 1 – Material Z, Plant P1

1. Specify Batch Level and Activate Status Management

Path: Logistics General - Batch Management - Specify Batch Level and Activate Status Management

a. Batch Level
 Activate Batch Level
b. Batch Status Management
 Activate it

c. Plants with Bath Status Management

 Activate to the required plants

d. Initial Status of a New Batch

 If we activate it to respective material type, during GR it’s status will be in “Restricted” and then we
need to change the status to “Un-restricted” for the usage
 So, do not required to activate it
2. Batch Number Assignment

2.1. Activate Internal Batch Number Assignment

Path: Logistics General - Batch Management – Batch number assignment - Activate Internal Batch Number Assignment

a. Activate Batch Number Assignment:

b. Internal Batch Number Assignment for Assigned Goods Receipt:

 If we want to assign the Batch number during account assignment Goods receipt, then we can activate
this check box for our respective plants otherwise not required.
 Here I’m not maintained to my plants
2.2.Maintain Internal Batch Number Assignment Range
Path: Logistics General - Batch Management – Batch number assignment - Maintain Internal Batch Number Assignment
Range

 BATCH_CLT is a standard object for Number range

 Click on Ranges
3. Create New Batches
Path: Logistics General - Batch Management – Creation of New Batches - Define Batch Creation for Goods Movements

 Whether during GR, the Batch will be created automatic or manual we can assign here
 SAP recommends and Standard maintained as Automatic/Manual without check
4. Batch Valuation
Path: Logistics General - Batch Management –Batch Valuation - Valuation for Goods Movement in Inventory
Management - Activate Batch Classification for Goods Movements in IM

4.1.Activate Batch Classification for Goods Movements in IM

 During Goods Receipt, whether the Classification needs to determine or not we can maintain here
 It’s a standard configuration no need to change anything. If required do the changes.
5. Batch Determination and Batch Check
Path: Logistics General - Batch Management – Batch Determination and Batch Check

5.1.Condition Tables
Path: Logistics General - Batch Management – Batch Determination and Batch Check - Condition Tables - Define
Inventory Management Condition Tables

 Standard tables already available, we can use those tables

5.2.Access Sequences
Path: Logistics General - Batch Management – Batch Determination and Batch Check - Access Sequences - Define
Inventory Management Access Sequences

 Standard Access sequence(ME01) already available, we can use it

5.3.Strategy Types
Path: Logistics General - Batch Management – Batch Determination and Batch Check - Strategy Types - Define Inventory
Management Strategy Types

 We already had a standard Strategy type(ME01), we can use it else create new one
 But I’m creating a new strategy type by copying standard, But using the same standard Access sequence
 Copy the Standard strategy type and maintain new strategy name and save it
 “Class” is not assigned. After creation we need to assign it here
5.4.Batch Search Procedure Definition
Path: Logistics General - Batch Management – Batch Determination and Batch Check - Batch Search Procedure
Definition - Define Inventory Management Search Procedure

 We had standard procedure(ME0001). We can directly assign our strategy type/Condition type in it or else we
can create a new procedure and assign it
 I will create a new procedure by copying standard procedure
5.5.Batch Search Procedure Allocation and Check Activation
Path: Logistics General - Batch Management – Batch Determination and Batch Check - Batch Search Procedure
Allocation and Check Activation - Allocate IM Search Procedure/Activate Check

 Here we need to assign the Procedure to required Movement types like 101, 201, 301, 561,501 etc…
5.6.Define Selection Classes
Path: Logistics General - Batch Management – Batch Determination and Batch – Define Selection Classes

 Before going to define the Class, we need to define Characteristics

 T-code: CT04 to create characteristics
 MCH1 is the table we use to create characteristics

a. Characteristics:

Shelf life Expiration date:

 Check additional values
Manufacturing Date:

Last Goods Receipt:

Batch Status:

 Directly maintained the character length and data type without additional data tab maintained or if you want to
maintain by table and field then use (MCHE – ZUSTD)
Batch Remaining Shelf life:

Note:

 No need to create the characteristics. We already had the standard characteristics in system, we can use them
 Please maintain search as “LOBM*” then we will get the Batch management related standard characteristics
 LOBM – Logistics Batch Management
b. Class for Batch

Path: Logistics General - Batch Management – Batch Determination and Batch – Define Selection Classes

 Now we need to assign this class in strategy type

5.7.Define Sort Rules
Path: Logistics General - Batch Management – Batch Determination and Batch – Define Sort Rule

 We will create a two types of Sort Rules

 FIFO – First In First out
 FEFO – First Expiry First Out

a. FIFO – First In First out

 Go to Characteristics and Please assign last GR Characteristics

b. FEFO – First Expiry First Out

6. Batch Where-Used List
Path: Logistics General - Batch Management - Batch Where-Used List -Make Settings for Batch Where-Used List

 This component determines how a batch is created and used in Production Planning PP through various stages
of production and displays the result in a list.
 You can use this to find out:
 In which other batches a batch was used
 From which other batches a batch was created

 This is important in the case of complaints and questions about product safety if the composition of semi-
finished and finished products has to be documented across all production levels. The material type is not
important.
 As well as batches, the system also displays production orders, manufacturing orders, subcontract orders, and
vendor batches. This enables you to trace a batch’s progress through each stage of production.
 The list is used for all plants, but can also be restricted to certain plants.
 For batches in other areas, for example Sales and Distribution (SD) or Warehouse Management ( LE-WM) , the
Pick-Up List shows where batches are used.
 Please activate Synchronization posting
7. Shelf Life Expiration Date (SLED)
Path: Logistics General - Batch Management - Shelf Life Expiration Date (SLED) - Set Expiration Date Check

 Expiration date check will be activated at Plant Level. And we can keep specific settings for each movement type
 If the shelf life check expiration date check is active, you must enter the shelf life expiration date or the
production date of the material at the time of a goods receipt.
 At the time of goods receipt, the system checks whether the remaining shelf life is sufficient. If this is not the
case, a warning or error message is issued, depending on the system settings.
 When the goods receipt is posted, the shelf life expiration date is recorded in the material document.

Set Expiration Date Check :

 Please maintain for required movement types
 Batch Condition records – MBC1/MBC2/MBC3
 Remaining Shelf life = SLED – Today’s Date
 SLED = Manufacturing date + Total Shelf life

Batch Creation manually – MSC1N/MSC2N/MSC3N

Batch Condition Records – MBC1/MBC2/MBC3

 Batch creation through Goods Receipt:

During 101, 501

 Impact of Total Shelf Life and Remaining Shelf Life in Material Master:

Remaining Shelf Life = SLED – Today’s Date

Case 1:

2190 – No Remaining Shelf Life and Total Shelf Life in Material Master

In this case, system won’t even ask to enter Manufacturing Date or SLED

Case 2:

2191 – Remaining Shelf Life is only maintained but not Total Shelf Life

Case 3:

2192 – Both Remaining Shelf Life and Total Shelf Life are maintained
In this case, system asks Date of Production (MFD) and claculates the SLED as per below
formulae.

SLED = Manufacturing Date + Total Shelf Life

 Batch Determination:

FIFO:

2190

FEFO:

2191
Maintain Condition Records for Batch Strategy Type with Transaction code MBC1. In
MBC1, we give strategies and Sort rule. Sort rule mainly plays the role to give the order
of Batches for the goods movement