SAP Batch Management Overview

 Study Material Contributed by Ulhas Kavle - Senior SAP Consultant

SAP Batch Management Overview 

Batch Management can be defined as tagging an alphanumeric or a numeric code to the material produced or material procured. Every batch number has an inventory quantity associated with it. This 10 digit code in SAP helps in uniquely identifying a material and the quantity associated with it. 

A partial quantity of production or procurement can be tagged with a batch number that clearly makes that material inventory unique. 

The Batch number generated for the material quantity not only helps in uniquely assorting the material inventory, but it also stores the characteristics values or the chemical composition or the product specifications at the time of its production or procurement. 

Which Materials can be Batch Managed? 

Typically you can say that material which can be stored separately without mixing and piling one over the other, is a good candidate for batch management. 

Product produced or procured has to be stored separately for it to be tagged with a batch number. If you mix all the pieces or mass together then the identification is lost. 

Case 1: Products which are powder in state like Iron ore, which is procured from vendors (in ships) and are dumped in a location loosing any sort of traceability of when they were procured and from whom they were procured are not a good candidate for batch management. 

Case 2: At the same time, if Iron ore is procured from vendors (in ships) and piled up separately (every shipment is piled up separately) then you can think of making the product (iron ore) as a batch management candidate. 

Case 3: You can also take a case where products are Solid in state but are mixed together after production; where the producing company does not wish to keep any traceability of when it was produced and what were the product features or conditions at that point of time. In this case you can avoid Batch management or any recording batch specifications. 

Perquisites in SAP for Batch Management

·   Activation of Batch Management at Material Level, Plant level or Client Level 

· Creation of Number Range for Batch Management: Specify use of Standard Internal Number Range or External Number Range or Both 

·   Material should be activated for batch management 

Life after Batch Management 

Batch Management once activated in configuration and the material master’s activated for batch management, then the material is stored in inventory at plant-storage location-batch level. In this case there is no question on mixing of material or loosing any sort of traceability. 

The plant inventory which would be normally stored in storage locations at the plant-storage location level would now be stored at the plant-storage location-batch level; which means that every time you issue this material for further production or every time you deliver this to the customer, you have to mention the storage location as well as the batch number you are issuing. 

This may end your liberty of consumption of this material at plant-storage location level and you may get frustrated in knowing the batch number you are issuing every time. 

Storage Location Stock before Batch Management: 

Activating or Deactivating Batch Management for a Material during the life of the Material  

Activating or Deactivating Batch Management for a product means that you would have to go through a lot of work: 

a) All the existing in-progress documents like the Purchase orders, Sales orders deliveries, Production orders, Batch Classifications or Batches, which are using the Material batches should be reversed, archived or deleted. 

b) All the Material Stock should be made = 0 

The best way to do it is, moving the stock of the material to a temporary material or writing off all the stock for the material. Once you have done this you can activate or deactivate the material for batch management. 

c) You can then bring back all the stock from the temporary material to this original material. 

When is a Batch Created in SAP:

A 10 digit batch is created in SAP for a batch managed material at the following instants of goods receipt for the material: 

a) A Batch is created at Goods Reciept from Production (Movement type 101): 

When you carry out Goods receipt for a Batch Managed Material from a production order or a process order or a run shcedule header, the system creates a batch for the received quantity and material. 

The batch received would have an internal batch number assigned (or an external batch number assigned as per configuration).If the configuration is set at External batch numbering, then you would have to assign a batch number before saving the goods receipt. 

The received stock would be associated with the batch number and any further inventory movement for the material quantity would be made using the batch number. 

The goods receipt movement types are MB31, MIGO, MIGO_GR through movement type 101 - GR from Production order. 

b) A Batch is created at Goods Reciept from Purchase order or STO (Movement type 101): 

 When you carry out a goods receipt for a batch managed material from a Purchase order (or a STO - Stock Transport order), the system creates a Batch number (if the configuration is set at internal batch numbering). If the configuration is set at External batch numbering, then you would have to assign a batch number before saving the goods receipt. 

The purchase order goods receipt is from an external vendor, whereas STO receipt is from a supplying plant in the same or different company code. 

If the Batch Management is set at plant level then in the case of STO transfers the batch number in all possibilities would change at the goods receipt in the receiving plant. If Batch Management is set at Material Level then the supplied material batch would be adopted at goods receipt in the receiving plant. 

The goods receipt movement types are MB31, MIGO, MIGO_GR through movement type 101 - GR from Purchase order. In the case of STO you could also create a goods receipt from an outbound delivery created at the sending plant. 

c) A Batch is created at Goods Receipt from Production - By Product receipt: 

When you carry out by-product goods receipt for a batch managed material from a production order or purchase order using MB1c-531 movement type, the system creates a Batch number. 

d) A Batch is created at Goods receipt from Initial Inventory Creation 

When you carry out goods receipt as a part of initial inventory creation through 561 or 501 movement types, the system creates a Batch number for a batch managed material. 

Summary - A Batch in SAP is created at a Goods Receipt of a Batch Management Material 

When you receive a Goods Receipt of a Batch Management Material through any GR Movement type, SAP Triggers creation of a Batch number for the received quantity. 

Above were listed only a few major GR Transaction code and Movement type.

Batch Specifications 

Define Batch Specifications  

A Batch is created in SAP as a master data prior to production or at receipt of stock from a vendor through a purchase order or at the receipt from a production order.

A Batch contains a place holder for maintaining various production or product specifications in the form of Batch characteristics. 

Mantaining Batch Characteristics Values or Batch Specifications is not mandatory atall: 

It is not mandatory that you maintain batch specifiation in a batch.  

You can create batches for material inventory without any batch specifications. 

Maintaining Batch characteristics values for batches is an Optional Feature. 

Batch Specifications Example: 

If you producing steel billets of a certain quality, you can maintain specifications for a certain production batch as 

Material = Steel Billet

Plant = 0001

Batch Number = 0000056239 

Carbon                        = 0.16

Si                                 = 0.2

Magnesium                   = 0.15

Sulfur                           = 0.022

Potassium                     = 0.025

Al                                 = 0.02 

How to Make a Batch Unique with Batch Specifications: 

To make a batch specifications unique by adding characteristics such as Production Date, Production Line, Shelf life of Product or even the supervisors name. If you add these sort of characteristics with values you would be successful in making a batch unique with unique set of batch specifications. 

Making a batch as unique as possible helps differentiating between multiple batches which makes it easier for back traceability. 

In the above example of Steel Billte production, you can add some more characteristics in the batch classification, as below:  

Material = Steel Billet

Plant = 0001

Batch Number = 0000056239 

Carbon                         = 0.16

Si                                 = 0.2

Magnesium                   = 0.15

Sulfur                           = 0.022

Potassium                     = 0.025

Al                                 = 0.02

Production Date           = 25th Dec 2009

Production Time           = 13:12:08

Production Line            = L3

Shelf life                       = 25th Dec 2019

Batch Specifications Target Values: 

Batch characteristics can a predefined value maintained. You can maintain the following:

• An absolute value or absolute values

Absolute values predefined will force you enter no other value other than these predefined ones in the batches. 

1. A Character format Characteristics STEEL_PRODUCT_GROUPS can have predefined values such as Billets, Coils, Rounds, and Bars.

2. While a Numeric characteristics can have predefined values for characteristics  “BILLET_LENGTH” as 10m, 50m, 100m, 150m, 200m, 250m,

• A Tolerance Range Value 

A Tolerance value range predefined in the batch characteristics will force you enter no other value other than

     these predefined ones in the batches.  

1. A Character format characteristic cannot have tolerance ranges. 

2. A Numeric format characteristic CARBON_CONTENT can have predefined tolerance ranges such as 0.1 – 0.3. 

Leave it blank for entry in the Batches during GR or Tolerance Entry in the Material Master

1. There can be situations where you may want to enter any value in the Batch and not restrict to predefined values in the characteristics 

2. Tolerances ranges at Batch Characteristics Level - There can be situation where the tolerance ranges change with respect to the materials characteristics combination 

3. Tolerances range Material Wise – There can be situations where the tolerances for the characteristics changes with respect to materials, i.e. characteristics CARBON_CONTENT may not be 0.1 to 0.3 for all the materials and it may vary for each material, to do this you would have to assign a value for the batch class characteristics in the material master and not in the batch characteristics level. You have to enter a value for the characteristics in the material master classification view, say MATERIAL = M1 for Batch Class STEEL_CHEMISTRY would have a value 0.15 – 0.3 for the characteristics “CARBON_CONTENT”. 

Master Date Maintenance for SAP Batch Specifications: 

If you want to maintain batch specifications for a produced or purchased batch you need to maintain a set of master data in the order mentioned: 

Creation of SAP Characteristics 

Create Characteristics through the use of transaction code CT04. Characteristics are the actual Specification master data with predefined values or number range or open for entry of any value. 

For example to have something called carbon % you have to maintain a characteristics called – “CARBON_CONTENT”. Similarly you have to create all the characteristics that you want to use for recording values. 

While Creation or during change of characteristics, you can define target predefined values for the characteristics or define a tolerance number range within which the recorded value should exists or leave it blank for input of any value during result recording for the characteristics. Though there can be situations where the allowed tolerances changes material wise; in which case you can leave the values section in Characteristics as blank and maintain the required tolerances in the characteristics at the material master classification view for the batch class or material class. 

For example, you can have for the characteristics “CARBON_CONTENT” you can define a tolerance number range of 0.17 - 0.24 which means that any resultant value that you would record should be mandatorily within this range. Or as a second example for characteristics PRODUCTION_LINE_NUMBER” you can have predefined set of values such as L1, L2, L3, L4, L5 to choose from during result recording in the Production Batch. 

Please see below for details on how to create the characteristics. 

Example: 

Carbon_Content (Characteristics)             = Predefined Range 0.1 – 0.3

Si_Content (Characteristics)                      = Predefined Range 0.1 – 0.3

Mg_Content (Characteristics)                    = Predefined Range 0.2 – 0.5

S_Content (Characteristics)                       = Predefined Range 0.01 – 0.03

P_Content (Characteristics)                       = Predefined Range 0.01 – 0.004

Al_Content (Characteristics)                      = Predefined Range 0.01 – 0.004

Production Date (Characteristics)              = No Predefined Value

Production time (Characteristics)               = No Predefined Value

Production Line (Characteristics)              = Predefined Values L1, L2, L3, L4, L5

Shelf Life (Characteristics)                         = No Predefined Value

Note – when you leave the predefined values as blank in the characteristics, it means that any value can be entered or it can also mean that the values change with respect to material master and you have to maintain the values or a value tolerance range in the material master. 

·        Creation of SAP Batch class 

Once you have created all the characteristics, you have to create a class using transaction code CL01. 

A class is a place holder for characteristics. Eventually you would assign the class to a material master. By assigning a class to a material master you would be indirectly assigning all the characteristics to the material. 

See the illustration below:  

STEEL_CHEMISTRY (Batch Class type 023)

      > Carbon_Content (Characteristics)

      > Si_Content (Characteristics)

> Mg_Content (Characteristics)

> S_Content (Characteristics)

> P_Content (Characteristics)

> Al_Content (Characteristics)

> Production Date (Characteristics)

> Production time (Characteristics)

> Production Line (Characteristics)

> Shelf Life (Characteristics)          

When you create a Class, you have to specify the class type, whether it is a batch class or a material class or any other class type for use in any other modules. 

Batch class type 022: If you are using Plant Level Batch Maintenance.  

Batch class type 023: If you are using Material Level Batch Maintenance or Client Level Batch Maintenance. 

You should include a description of the class and the characteristics or specifications that should be included in the class.  

·         Create Material Master Classification View and assign a Batch Class 

Extend or create Material Master Classification view and add a batch class type to the classification view (Transaction code MM02 or MM01 – Material Master Change or creation). 

You can add batch class type 022: If you are using Plant Level Batch Maintenance. 

You can add batch class type 023: If you are using Material Level Batch Maintenance or Client Level Batch Maintenance.  

Assigning a batch class to the material classification view would indirectly assign all the characteristics to the material master. Thus whenever you create a batch for this material through MSC1n or you receive materials in stock from production order or process order or purchase order goods receipt you can record values for these assigned characteristics only.  

See the illustration below:  

STEEL_BILLET_123 (Material Master)

> STEEL_CHEMISTRY (Class type 023)

                  > Carbon_Content (Characteristics)

                  > Si_Content (Characteristics)

> Mg_Content (Characteristics)

> S_Content (Characteristics)

> P_Content (Characteristics)

      > Al_Content (Characteristics)

            > Production Date (Characteristics)

> Production time (Characteristics)

> Production Line (Characteristics)

> Shelf Life (Characteristics) 

Characteristics have a predefined format (character alphanumeric or date or numeric format) and a predefined set of values in the form of direct values or in the form of allowed tolerance range or no values (without any values suggesting allowed for random value entry in batch).

Note: There can be situations where the allowed tolerances changes material wise; in which case you can leave the values section in Characteristics as blank and maintain the required tolerances in the characteristics at the material master classification view for the batch class. 

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