Batch Management

Batch Determination
Batch Derivation

Mr. Asim Ayub Miraje

SAP PP Consultant
Environment: SAP PP S4 HANA 2020
 Index

Batch Management Batch Determination Batch Derivation

➢Batch Management Overview ➢Batch Determination Overview ➢Batch Derivation Overview
➢Batch Management Configuration ➢Batch Determination in Logistics ➢Derivation Event
➢Classification: Batch Class ➢Batch Determination in Production ➢Batch Derivation Customization
➢Master Data for Batch Management ➢Batch Determination Customization ➢Batch Derivation Master data
➢Batch Creation in SAP PP ➢Batch Determination Master data ➢Batch Derivation in Process Orders
➢Automatic Creation of Batches in PP ➢Batch Determination in Production
Orders
➢Manual Creation of Batches in PP
➢SLED - Shelf-Life Expiry Date
Batch Management

➢ Batch Management Overview

➢ Batch Management Configuration
➢ Classification: Batch Class
➢ Master Data for Batch Management
➢ Batch Creation in SAP PP
➢ Automatic Creation of Batches in PP
➢ Manual Creation of Batches in PP
➢ SLED - Shelf-Life Expiry Date
Batch Management Overview
 Batch is a partial quantity of a material, which is managed separately from
other partial quantities of the same material. The batch is like a production
lot.

 Quantity of a material produced during a given production run. A batch

represents a non-reproducible, homogeneous unit with unique
specifications.

 Purpose for Batch Management :

▪ Defect tracing, callback activities, and regression requirement
▪ The need for differentiated quantity-and value-based inventory
management
▪ Production or procedural requirements
Batch Management Overview
Batch Management Configuration

Batch Management requires the following configuration :

1) Batch Status Management

2) Batch Level
3) Batch Number Assignment
4) Creation of New Batches
Batch Management Configuration

Batch Status Management

SPRO > Logistics General > Batch Management > Specify Batch Level and Active Status
Management

Active the status for Batch Management.

Batch Management Configuration

Batch Level

SPRO > Logistics General > Batch Management > Specify Batch Level and Active Status
Management
Batch Management Configuration

Batch Number Assignment

SPRO > Logistics General > Batch Management >Batch Number Assignment>
Activate Internal Batch Number Assignment
Batch Management Configuration

Creation of New Batches

SPRO > Logistics General > Batch Management >Creation of New Batches >
Define Batch Creation of Production Order/ Process Order
For process industry: CORY Production Scheduling Profile
For Discrete industry: OPKP Production Scheduling Profile
 Batch Classification Config(OPKP)

There are 5 options for field “Batch Classification”:

i. No branching to batch classification: The classification does not happen automatically. In other words, the tab “classification” in
transaction MSC3N will be empty.
ii. Classification carried out in background (all batches): The system will carry out the classification in background. In other words, a
system will execute the classification in a update function module (uses update work process). This option is recommended for
scenarios where classification might lead to performance issues.
iii. Classification only in foreground for mandatory characteristics (all batches): The system will carry out the classification process in
foreground for mandatory characteristics (field “required entry” is marked in CL02 transaction). It can cause performance issues
depending the quantity of the characteristic assigned.
iv. Classification always in foreground (all batches): The system will carry out the classification process in foreground for all batches no
matter if the characteristic is mandatory or not.
v. Classification in foreground for new batches only: The system will execute the classification only for those batches created during
the order creation. It does not execute for batches previously created.
Classification
▪ Classification can be used to describe or group
objects together that have some likeness, but also
differences.
▪ The Classification system allows you to use
Characteristics to describe all types of objects and
to group similar objects in classes to classify
objects, so you can find them after easily.
▪ A characteristic describes the specifications of an
object, such as length, width, weight and color.
Tcode : CT04
▪ A class can contain one or more characteristics.
Tcode: CL01
Standard Characteristics

A characteristic describes specifications of an object, such as length, width, weight, color.

Tcode : CT04
Class

▪ A class can contain one or more characteristics. Tcode: CL01

▪ Class types control how the classification can be used for various objects.
Depending on how the system is configured, the class is assigned to one of the
class types below:
▪ 001 for Material Class
▪ 022 for batches at plant level, 023 for batches at material level/client level
 Master Data for Batch Management
Master Data required for Batch Management :

1) Material Master: MM01/MM02/MM03

➢ Classification View
➢ Work Scheduling View – For Finished products only
➢ Purchasing View – For Raw materials only
➢ Plant Data / Storage View 1
➢ Plant Data / Storage View 2

2) BOM : CS01/CS02/CS03

3)Resource : CRC1/CRC2/CRC3

4) Master Recipe : C201/C202/C203

1) Material Master:

Classification View
1) Material Master:

Work Scheduling View

1) Material Master:

Plant Data /Storage 1

1) Material Master:

Plant Data /Storage 2

Bill Of Materials
Master Recipe
Creating batches in
Production/Process Orders
Two Types of Batch
Creation:

1) Automatic Batch
Creation

2) Manual Batch
Creation
 Automatic Creation of Batches in PP

Configuration for
Batch Management

In Discrete industry :
OPKP Prod. Sched. Profile

In Process Industry :
CORY Prod. Sched. Profile
Automatic Creation of Batches in PP

Create Process
Order(COR1)

• Enter Material Number

• Enter Production Plant
• Enter Process Order type
PI01
Automatic Creation of Batches in PP

Create Process
Order(COR1)

• Enter Quantity, Start date

and create the Process
order
• Status CRTD is created.
Automatic Creation of Batches in PP

Automatic Batch
Creation(COR1)

• When Order is released REL,

the automatic batch is
created.
• You could check in the
Goods Receipt tab.
Manual Creation of Batches in PP

• Enter T-code MSC1N

• Enter Material ,Plant

 Manual
Creation of
Batches in PP
 When you enter the Date of
Manufacturing and enter, BBD gets
calculated as per General Plant
Data / Storage 1 and Classification
View.
 In the second image you can see
the classification view containing
standard characteristics of the
Batch class.
 Shelf Life Expiration Date - SLED
 Batches for materials that may no longer be used or sold after a certain time period
are normally assigned an expiration date or a shelf life expiration date.
 Normally used in industries like
▪ Food
▪ Pharmaceutical
▪ Chemicals
▪ Retail
 The SLED is set automatically during goods receipt if you maintain the total shelf life
in days in the material master.
 In the Total shelf life field in the material master Storage view, enter the total number
of days by which a material must be used, calculated from the day of production.
Batch Determination
➢ Batch Determination Overview
➢ Batch Determination in Logistics
➢ Batch Determination in Production
➢ Batch Determination Customization
➢ Batch Determination Master data
➢ Batch Determination in Production Orders
Batch Determination - Overview
 Batch Determination is used in inventory management, production, sales
and distribution, and warehouse management.
 It is used to select batches and allocate the same to components in a
manufacturing order or in an outbound delivery or in a goods
issue/goods transfer in inventory management.
 System automatically assigns the batches to the components based on
the search strategy and sort rule applied.
 Batch Determination can be initiated based on FIFO, FEFO , LIFO or some
other custom criteria.
 Batch determination can be done manually or automatically on the
manufacturing order.
Customizing for Batch Determination
Configuration data for Batch Determination
1) Create the Condition Table(T Code : OPLD)

SPRO>> Logistic General >> Batch Management >> Batch Determination &
Check>>Condition tables>> Define Process Order Condition Tables
Configuration data for
Batch Determination

2) Create the Access

Sequences

SPRO>> Logistic General >>

Batch Management >> Batch
Determination &
Check>>Access Sequences>>
Define Process Order Access
Sequences
Configuration data for Batch Determination
3) Create the Strategy Types

SPRO>> Logistic General >> Batch Management >> Batch Determination &
Check>>Strategy Types>> Define Process Order Strategy Types
Configuration data for Batch Determination
4) Create the Search Procedure

SPRO>> Logistic General >> Batch Management >> Batch Determination &
Check>>Batch Search Procedure Definition>> Define Process Order Search
Procedure
 Configuration
data for Batch
Determination
5) Define Order type dependent
parameters

SPRO>>Production planning for

process industries >>Process Order
>>Master Data >>Order >>Define
Order type dependent parameters
Assign Search procedure :
For process industries T-code: COR4
Batch Determination
Master data :
Material Master

 1 Header -Finished Material and

under that 1 Raw Material
 For Finished Material:
• Work Scheduling View:
Put Prod Scheduling Profile and
Activate Batch Management
Batch Determination
Master data :
Material Master

 For Raw Material:

• Classification View
Batch Determination
Master data :
Material Master

 For Raw Material:

• Purchasing View
Batch Determination
Master data :
Material Master

 For Raw Material:

• Plant Data /Storage 1View
Batch Determination Master data:
Bill of Material
Batch Determination Master data:
Task list (Master Recipe)
Batch
Determination
Master data:
Production
Version
Goods
Receipt of
Raw
Material
Batches
Batch Search
Strategy
COB1

Enter Strategy Type.

Then Enter Raw Material of which

you have created batches.
Batch Search Strategy:
Selection Criteria

 Select Selection Criteria

 Assign Batch Class 023
 Characteristics get assigned
here.
Batch Search Strategy:
Sort Rule

 Select Sort
 Enter Sort Rule (CU70) : FEFO
First Expiry First Out.

So when we create Process

order at time of Batch
Determination the Batch with
early expiry date will be
consumed.
Batch Determination in Process Orders

➢ COR1 Create new Process Order

Enter Finished material, Plant and
Order type

➢ Enter Order Quantity ,Basic start date

and schedule
 Batch Determination in Process Orders

➢ Go in Material List > Enter Storage Location where stock is previously added via GR of
RM batches
 Batch Determination in Process Orders

➢ Select Item and select Batch Determination tab

 Batch Determination in Process Orders

➢ Here you can see as per FEFO(First Expiry First Out) Sort Rule the Batch 3 and 2 are
consumed first as the y are first to expire.
 Batch Determination in Process Orders

➢ Batch get assigned as per requirements quantity

Process Order CRTD to TECO
Automatic Batch
Determination

 IN MRP 2 View of Raw and

Finished Material:

Batch Entry : 3
Upon Release of Order
automatic Batch determination
is occurred.
Automatic Batch Determination

 Order is Created

 When Order is Released,

Batch Determination occurs
automatically.
Batch Derivation
➢ Batch Derivation Overview
➢ Derivation Event
➢ Batch Derivation Customization
➢ Batch Derivation Master data
➢ Batch Derivation in Process Orders
Batch Derivation Overview
➢ Transferring batch characteristics values or batch master fields from the sender batch
to the receiving batch is called “Batch Derivation
➢ Component batches (RM/SM) may send data and Produced batches (FM) may
receive data.
➢ To fulfill the requirements that occur in various business processes, there are generally
two types of derivation:
· Static derivation
· Dynamic derivation

➢ Static derivation is recommended if a batch is newly created or changed and the

values in the receiver batch(es) should be filled with the attributes from the sender
batch(es).
➢ Dynamic derivation is used when
• The receiver batch must/should not be changed
• The sender values should be used as the basis for a user decision
Types of Derivations
Pull Derivation (1 receiver: n senders) Push derivation (1 sender: n receivers)

 Data from various senders can be  Data from a sender batch can be
collected, cumulated, and derived onto several receiver
calculated and then sent to batches.
receiver.
 Batch Derivation
Customization
OCHA T code For Batch
management configuration
1)Activate Batch Derivation :

SPRO>> Logistic General >>

Batch Management
>>Derivation of Batch
Data>>Activate Batch
Derivation
 Batch Derivation Customization
2) Derivation Event :
 The derivation can be called and used in all areas of Logistics at fixed times (for
example, when posting goods receipts for production orders, when releasing
process and manufacturing orders, when making the usage decision).
 SPRO>> Logistic General >> Batch Management >>Derivation of Batch
Data>>Define Derivation Events
 Batch Derivation
Master data :
Material Master
 1 Header -Finished Material and
under that 3 Raw Material
 For Finished Material:MM01
• Classification View:

Enter Batch Class 023

 Batch Derivation
Master data :
Material Master
 For Finished Material:
• Work Scheduling View:

Enter Prod Scheduling Profile and

Activate Batch Management
 Physical Inventory Indicator for
Cycle Counting :OMCO
Path: IMG – Materials Management – Inventory management and Physical
inventory – Physical inventory – Cycle counting

Indicates that the given material is subject to the cycle counting method of
inventory.

The indicator also defines at which time intervals a physical inventory is to be

carried out for the material.
 Batch Derivation
Master data :
Material Master
 For Finished Material:
• Plant Data Storage 1 and 2View:

Enter Physical Inventory Indicator for

Cycle Counting A and check CC
fixed
 Batch Derivation
Master data :
Material Master
 For Raw Material 1,2,3:
• Classification View:

Enter Batch Class 023

 Batch Derivation
Master data :
Material Master
 For Raw Material 1,2,3:
• Purchasing View:

Activate Batch Management

 Batch Derivation
Master data :
Material Master
 For Raw Material 1,2,3:
• Plant Data Storage 1 and 2 View :

Enter Total Shelf life

For RM04 : 365 days

For RM05 : 200 days
For RM06 : 180 days
Batch Derivation Master data:
Bill of Material CS01
Enter 3 RM into Finished material BOM
Batch Derivation Master data:
Master Recipe C201
 Batch Derivation
Master data:
Master Recipe
C201

Mr. Asim Ayub Miraje-SAP PP Consultant

 Goods Receipt
of Raw Materials
Batches MIGO
• Create one batch of each Raw
materials and enter a common
Date of Manufacturing.

• You can notice as per plant data

storage data of total shelf life the
BBD i.e. Best Before Date gets
updated.
Derivation Search Strategies for
Receiver and Sender Materials
Maintaining Condition Records
 Condition records should be maintained for receiver (FM) as well as sender
batches(RM/SM)
 There are two options for condition record maintenance
• Logistics>>Central Functions>>Batch Management>>Batch Derivation>>Condition Record
Maintenance for Bills of Material
T-code :
DVCO : Condition Record Maintenance for Bills of Material
• Logistics>>Central Functions>>Batch Management>>Batch Derivation>>Condition Receiver
Condition Records/Sender Condition Records>> Create
T-code :
DVR1 : Search Strategy for Receiver Material
DVS1 : Search Strategy for Sender Material
Derivation Search Strategy
for Receiver Material DVR1
Logistics>>Central Functions>>Batch
Management>>Batch Derivation>>Condition
Receiver Condition Records/Sender Condition
Records>> Create
Or T-code: DVR1
➢ Enter Strategy type BDR1
➢ Enter Receiver Material i.e Finished material
Derivation Search Strategy
for Receiver Material DVR1
Details Tab
➢ Select the Details option
➢ Enter Attribute i.e Characteristics which is
meant to be transferred from sender to
receiver batch
➢ For this scenario we will use VFDAT i.e. BBD
characteristics
Derivation Search Strategy
for Receiver Material DVR1
Rule Tab
➢ Select the Rules button
➢ Enter W in sender field
empty and overwrite
recipient.
➢ Rules for value selection if
more sender:
Minimum :
The earliest BBD will be
selected for transferring from
RMs to FM.
>Then save
Derivation Search Strategy
for Sender Material DVS1

Logistics>>Central Functions>>Batch Management>>Batch Derivation>>Condition Receiver

Condition Records/Sender Condition Records>> Create
Or T-code: DVS1
➢ Enter Strategy type BDS1
➢ Enter Sender Material i.e Raw materials
Derivation Search Strategy
for Sender Material DVS1

Details Tab
➢ Select the Details option
➢ Enter Attribute i.e Characteristics which is meant to be transferred from sender to receiver
batch
➢ For this scenario we will use VFDAT i.e. BBD characteristics
Derivation Search Strategy
for Sender Material DVS1

Condition Usage Tab

➢ Select the Condition Usage button
➢ Select Release Process and click on tick
Batch Derivation in Process Orders

➢ COR1 Create new Process Order

Enter Finished material, Plant and
Order type

➢ Enter Order Quantity ,Basic start date

and schedule
 Batch Derivation in Process Orders

➢ Go in Material List > Enter Storage Location and Batch numbers of RM which were
previously added in stock via GR.
 Batch Derivation in Process Orders

➢ Release the Process Order by clicking on green flag.

➢ Derivation gets carried out because
➢ In Details tab ,the earliest BBD between three Raw Materials gets transferred to Finished Material.
THANK YOU