Batch Strategy, Search procedure and Automatic Batch Determination

Business may need to identify and differentiate between individual items of a material. To supplement the material master record, which may contain all data for describing and managing a piece of material, but does not enable to differentiate between individual items of that material.

Batch configuration is mainly used:

• To work with homogeneous partial quantities of a material.

• To meet legal requirments or regulations.

• Defect tracing, callback activities, and regression requirement.

• To meet production or procedural requirments(for example, settlement of material quantities on the basis of different quantity specifications).

• To ease the goods movements processing.

• To optimize all logistic functions.

• ·         Inventory management

• ·         Sales and Distribution

• ·         Process industry

• ·         Production

• ·         Warehouse management

• ·         Manual creation of a batch master record

• ·         Goods receipts

• ·         Creation of a process or production order

• ·         Useage decision in Quality Management

• ·         Quality analysis

• ·         Transfer postings(including batch splits).

• ·         The functionality for which the class is intended

• ·         The type of objects that it can be used to classify.

• Objects can be classified via classification transactions or directly through their master record(i.e. the classification view of the material master).

• In order to do a search, a user must know the class to search within. It can be found by:

• ·         Placing a * in the class field

• ·         Using a search help

• ·         Exploding the hierarchy graphically

• ·         Via the characteristics to be used.

• Condition Type: It represents the four character strategy type identification key, ZGM2.

• Access Sequence: Access sequence represents the group of condition tables used as key combinations to enter the condition records,  which is assigned to strategy type.

• Class Type: The class type is always 023—the batch class provided in the standard SAP system for use with batch management, except for the material/plant level batch maintenance scenario, where the class type is 022.

• Class Using Class: A default classification can be defined for the strategy type.

• Selection criteria: The Selection Type field defines how the selection for a batch needs to happen. When left blank, the system immediately displays the batches that meet the selection criteria when the batch search is executed in a document.

• Sort Sequence: The Sort Sequence field allows to sort the suitable batches based on specific characteristics (Example, remaining shelf life or delivery date). You can define ascending or descending sort sequence for each field. As an example, You can instruct the system to pick those batches for which the remaining shelf life ( No of days left for the material lot to be expired from the date of delivery) is  greater than 40 days.

• Batch Split: The Batch Split field controls the number of batch splits that are allowed during batch determination. Batch splits are not possible for sales orders unlike in deliveries, the default split values entered in the search stratergy are overrided.

In various industry sectors, particularly the process industry, you have to work with homogeneous partial quantities of a material or product throughout the entire quantity and value chain.

In SAP system, a batch is the quantity or partial quantity of a particular material or product that is manufactured to the same recipe.

SAP ba                         In SAP system, Batch management process is utilized for Manufacturing Visibility and Execution and Collaboration.

                                      In simple terms, SAP Batch Handling means an additional key fields for the user to identify the same materials.

For example, Normal Control: Plant + Material + Storage Location

                                      Batch handling: Plant + Material + Storage location + Batch Number.

                                      Batch management is a functionality used in every industry mainly:

·         Chemicals

·         Pharmaceuticals

·         Cosmetics

·         Hygiene and sanitation

·         Food

·         Retail

Batch functions provide you with the possibility of managing and processing a non-reporoducible production unit in all areas of logistics.

In Pharmaceutical industry & food Industry, Batch function is used to avoid selling lots which are no longer be used or sold after a certain period.

Batch is structured under LO (General Logistics) area in SAP R/3 system. However it will require Customizing setting in the respective Logistics area. These are:

Batches are well integrated and can be traced throughout the complete supply chain, From the point of entry into the manufacturing process till they leave the production plant through Sales.

Batch Number Assignment

Batch numbers can be assigned manually or allow the system to generate. Internal number assignment is activated in Customizing for batch Management. It is activated at the client level. A need to generate a batch number can occur due to:

Classification and Batch Management

The SAP Classification is used to : find similar objects or find out no suitable objects exist.

The three main activities within the classification system are : Maitaining characteristics and classes, Linking objects to classes and assigning characteristics values, and Finding objects.

Characteristics are defined for a specific format, either Characteristic, numeric, a date, a currency, or  time. Reference characteristics pull their values automatically from master record fields. No user maintenance is required.

There are two types of characteristics, Pre defined Standard characteristics and user defined characteristics. To copy the standard characteristics to the current client, report RMMCCH01 has to be used.

    

Classes are defined for a specific class type. The class type controls:

Batch Determination

Batch determination is used to select those batches which meet the specific business conditions

·         Batch determination is based on the condition technique.

·         Agreements regarding specification customer accept are captured in strategy records. During batch determination the system compares batch specifications to those in the strategy record.

·         Two lists can be used to track batchs:

i.              The Batch where used list

ii.             The Pick-up list

·         Pricing can be done at either the batch or material level.

Each individual batch search stratergy is based on a stratergy types and several search stratergies are grouped under a search procedure which is assigned to a business transaction.

Strategy types are the condition types that control the search criteria. It can be created using the  transaction code is V/C1, or the menu path IMG à Logistics à General à Batch Management à Batch Determination And Batch Check à Strategy Types à Define Sales And Distribution Strategy Types

The important fields on this customization screen are as follows:

Once the strategy is defined we need to assign the strategy types to a determination procedure that will help determine the required batch during a sales transaction.

The transaction code is V/C3, and the menu path is IMG à Logistics à General à Batch  Management à Batch Determination And Batch Check à Batch Search Procedure Definition à Define Sales And Distribution Search Procedure.

Finally, we define the determination rule.

The transaction code is V/C5, and the menu path is IMG à Logisticsà General à Batch Management à Batch Determination And Batch Check à Batch Search Procedure Allocation And Check Activation à And Check Activation à Allocate SD Search Procedure/Activate Check.

Here, a combination of sales area and document type helps in determining the relevant determination procedure for a sales transaction. This can be represented in equation form as follows:

Sales area + Document type = Determination procedure

If the business requires the SAP system to automatically determine the relevant batches during sales order and delivery processing, it can be specify by selecting the automatic determination check box for each sales and delivery item category for which you would like the automatic batch determination.

The transaction code is V/CA for sales and V/CL for delivery. The menu path is IMG à Logistics àGeneralà Batch Management à Batch Determination And Batch Check à Activate Automatic Batch Determination In SD.

Batch Determination in Sales and Distribution

There are four points at which you should use batch determination in SD:

a.     Quotations

b.    Quantity Contracts

c.     Sales Orders (or Scheduling agreements)

d.    Delivery

Batch Determination in Sales Orders

You should choose batch determination in sales orders when customer requirements take precedence over all other factors(such as, stock removal strategies for example). Use batch determination here, if a customer, for instance, require a material with certain set specifications.

You should use batch determination for the sales orders to find batches for set specifications. You can also reserve batches, as requirments are transmitted via the sales order in the same way as they are via the quotation.

Batches assigned in sales order are copied to the delivery and cannot be changed.

Batch Determination in Delivery

You should choose batch determination in deliveries, if

• Dealing with materials that are constantly available(mass production).
• ·         You want to minimize capital lockup.
• ·         The specification are not very detailed(e.g. if you require batches that may not be sold in the USA but in Asia, or batches that are suitable for whole customer groups).
• ·         The expiration date, or the remaining shelf life are the most important criteria.

·         Batch splits are necessary.

Manage Batch Split

Batch indicates the various shelf characteristics of a material, ideally, the manufacturing lot used to produce this material. If a material is Batch-managed, then the same is specified in the Material master.

The batch split functionality is manually processed using batch determination option in the Outbound delivery 

The order quantity can be split into many batches, if batch split is allowed for the material. It is useful in case the requirement quantity can’t be fulfilled by a single batch or if the material is to be picked across batches 

If no batch split is allowed (batch split is zero), then one batch will be used to satisfy the requirement

Batch Split in Sales and Distribution delivery:

When materials are stored in the batch format or when materials are produced in batch format to be stored in the storage location, batch split is used.

When the outbound delivery is being processed, batches from the storage location are used. E.g. if there is an order for 400 pieces and there are multiple batches with batch size of 300 pieces each, then two batches would be required to fulfill the order. In this case, we will chose the material to be delivered, and then manually chose the option for enabling batch split.

We’ll divide the order into two batches:

Material 1 – Batch 1 – 300 pieces

Material 1 – Batch 2 – 100 pieces

Thus by choosing different batches, the batch split enables us to meet the delivery requirements. Batch split enables us to pick only from those batches that meet our Batch strategy and other criterion.

Batch strategy can be created using the transaction VCH1. Various options are available to split batches that are displayed based on :

· Customer / Material

· Customer / Material / Plant

· Country of Dest / Mat Grp

· Customer Hierarchy

· Customer Hierarchy/Material

Batch Number can be assigned against a material while creating a sales order.

Batch Determination Process

 Batches are defined within different processes, depending on the module being used. For SAP SD, they are defined for sale orders, quotations, agreements, and deliveries.

A search procedure is assigned to a business transaction (be it IM, SD, WM, PP). Depending on the business transaction, the search procedure provides different strategy types.

A batch search strategy is linked to each strategy type. The selection class must contain at least one of the batch’s characteristic.

The batch determination either can be done automatically by the system, or manually by the user.

Following steps take place in succession:

·         Find search procedure for the business transaction

·         Searches strategy types listed in the search procedure for a search strategy:

o   The first valid search strategy is used

·         Characteristics from the selection class of the search strategy are used to find batches with suitable specifications

·         Check if the batches are available

·         Sord batches according to sorting rule

·         The proposes a selected quantity

·         If each search strategy contains the information, system proposes to run batch determination online

Steps for “Processing Batch Determination”.

·         Define the characteristics with T-code CT04 to qualify for the batch search criteria

·         Define the class with T-code CL02 for batch selection

§  Enter release class: 023

§  Assign characteristics defined for batch selection to class

§  Extend material master to this class for required material

·         Define search strategy with the T-code MBC1

§  Selecting required key combination (e.g. Plant/Material)

§  Enter the values for selected fields of key combination

·         Define the sort sequence for batch selection

·         Enter Goods Issue of material (e.g. to cost center) with transaction code MIGO

·         Batch is selected automatically with batch determination procedure

·         Post the GR document