batch Determination in Inventory Management

Lakshminarayana.Jonnalagadda [email protected] SAP ID: 51356040

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Batch determination procedure in Inventory management

May-2012 SAP MM


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Applies to:

SAP Inventory Management ECC 6.0

Summary

The batch determination functionality in SAP allows allocating batches in stock for all

movements using certain selection criteria. Batch determination is based on the condition

technique.

Besides you may also want to Goods issue only those products which have a remaining shelf life

of a certain number of days after it is being delivered.

Author: Lakshminarayana.Jonnalagadda

Company: HCL Technologies Ltd.

Created on: May 5th, 2012

Author Bio

Fourteen years of work experience, which includes 8 years of IT experience

in SAP for the Logistics modules.

Diverse functional experience in procurement, inventory, logistics

execution management,

Working as SAP Managing Consultant in HCL Technologies Ltd


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Table of Content

1. Introduction..............................................................................................................................4

2. Configuration Steps for Batch Management............................................................................4

2.1.1. Define Batch Level..................................................................................................4

2.1.2. Conversion Of Batch Levels..6

2.1.3. Batch Status Management6

2.1.4. Initial Status.8

2.1.5. Batch Numbering.9

2.1.6. Activate Internal Batch Number Assignment.................10

2.1.7. Batch Where Used List11

3. Master Data for Batch Management.12

3.1.1. Characteristics.12

3.1.2. Batch Managed Material.19

4. Configuration Steps For Batch Determination21

4.1.1. Batch Determination Condition Tables..22

4.1.2. Batch Determination Access Sequence..23

4.1.3. Batch Determination Strategy Types24

4.1.4. Batch Determination Search Procedure25

4.1.5. Batch Determination Search Procedure Allocation and Check Activation.26

5. Master Data For Batch Determination.26

5.1.1. Batch Search Class.26

5.1.2. Sort Rule..27

5.1.3. Batch Search Condition Records.28

6. Transaction Data..30

6.1.1. Goods Receipts30

6.1.2. Goods Issues.31

7. Summary


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1. INTRODUCTION

This document details the configuration and Master Data requirements for automatic batch

determination using Movement Types in Inventory Management. The content of the

documents are based on the learning from the project.

The batch determination functionality in SAP allows allocating batches in stock for all

movements using certain selection criteria. Batch determination is based on the condition

technique.

The procedure for batch determination will be explained for one Movement Type. The

procedure can be extended for other movements in Inventory Management.

2. CONFIGURATION STEPS FOR BATCH MANAGEMENT

The configuration steps discussed below are in the same sequence as carried out in an SAP

Implementation of Batch Determination in Inventory Management.

2.1 DEFINE BATCH LEVEL

The Foremost configuration in Batch Management is activating the level at which batch

management would work. The following are the levels at which you can activate batch

management

At plant level

At material level

At client level

IMGLogistics - General Batch Management Specify Batch Level and Activate Status

Management (T.Code: OMCE).


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NOTE: In this example, we have selected Batch Unique at Material Level

Plant level: Batch Unique at Plant Level

The Batch number is unique in connection with the Plant and material.

The Batch number is only known in the Plant in which it is created.

If the stock is transferred to another Plant, the Batch is unknown in the Recipient

Plant and the system does not adopt any data.

The Batch is to be recreated and specified in the receiving Plant, i.e. the same Batch

number may have different specifications in several Plants.

Material level: Batch Unique at Material Level

The Batch number is unique in all plants in connection with the material.

The same Batch number has the same meaning for the material in all Plants.

A Batch will have the same specifications for all Plants at which a material is stored.

One Batch number cannot have different specifications in different Plants.

The same batch number can be re assigned with a different specification for each

material.

During stock transfer to another Plant, the specification of the Batch is known in the

destination Plant even if the Batch is placed into storage in that plant for the first

time.

Client Level: Batch Unique at Client Level

A Client is a SAP Box which can contain a set of company codes and plants under it. In

such cases if you define batch management at client level, it means that the material

M1 would keep the same batch number (say B1) across all the plants and across all

company codes in the client. This also means that the batch classification values or

characteristics values would also remain the same across.


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Note - If you want to go back to Material level batch settings you can do so at any time

by changing the configuration to material level batch management, but you cannot go

back to plant level from the client level settings.

2.2 CONVERSION OF BATCH LEVELS

IMG Logistics General Batch Management Specify Batch Level and Activate

Status Management (T.Code: OMCT)

While the conversion program is running, you can only post batches at the old level.

You can only post batches at the new level after the conversion has been completed.

You cannot change back from a higher Level to plant level in the standard system.

However, you can change the batch level from client level back to material level.

To change the batch level from plant level to material level, the material has to be

subject to batch management in all plants.

2.3 BATCH STATUS MANAGEMENT

Indicate whether a batch is usable or not.

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 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.

Batch Level Status Management

Material or client level - Automatically in all plants

Plant level - Can be chosen for individual plants.

IMG Logistics General Batch Management Specify Batch Level and Activate

Status Management (T.Code: OMCS)


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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


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2.4 INITIAL STATUS

You can define which status a newly created batch is to be given for each material type.

IMG Logistics General Batch Management Specify Batch Level and Activate Status

Management (T.Code: OMCS)


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2.5 BATCH NUMBERING

The Batch number uniquely identifies a Batch in the SAP System.

The Batch Level chosen determines the area in which the Bach number is

unique.

The Batch number can be assigned at different times:

During manual creation of a Batch.

While creating a Purchase Order.

While carrying out goods movements Goods Receipts, Transfer

Postings.

During creation of a Process/Production Order.

When usage decision is made in quality management.

During quality analysis. (e.g. due to aging)

IMG Logistics General Batch Management Batch Number Assignment

Maintain Internal Batch Number Assignment Range (T.Code: OMAD)


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2.6 ACTIVATE INTERNAL BATCH NUMBER ASSIGNMENT

IMGLogistics GeneralBatch ManagementBatch Number Assignment Activate

Internal Batch Number Assignment (T.Code: OMCZ)


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2.7 BATCH WHERE USED LIST

The batch where-used list is set to active at all the plants, but you would have to

manually select synchronous posting of batch where used records. Selecting a plant for

synchronous posting means that you trace the batch history (batch history of receipts

and consumptions) across all the plants.

A batch where-used list can tell you the production order through which the batch was

produced, the object where the batch was issued (production order or sales order), in

short the batch where-used list gives you the list of objects from where the batch was

produced from and the objects where the batch was issued to. If the batch is under

inspection with an inspection lot, the list also shares the inspection lot number.

You can switch between a Top-down hierarchy option and a Bottom-up hierarchy option

that gives you the batch where-used information in various hierarchical ways.

Uses Batch traceability, i.e. Understanding the history of a batch thereby analyzing the

history of batches in case when there are customer complaints.

IMG Logistics GeneralBatch ManagementBatch Where-Used ListMake Settings

for Batch Where-Used List


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3.0 MASTER DATA FOR BATCH MANAGEMENT

3.1 CHARACTERISTICS

1. STANDARD CHARACTERISTICS

LOBM_BWTAR - VALUATION TYPE

LOBM_LVORM - DELETION FLAG

LOBM_QNDAT - NEXT INSPECTION DATE

LOBM_VERAB - AVAILABILITY DATE

LOBM_VFDAT - EXPIRATION DATE

LOBM_ZUSTD - STATUS

2. USER DEFINED CHARACTERISTICS

A. Update Standard Characteristics

IMG Logistics General Batch Management Batch Valuation Update Standard

Characteristics (T.Code: CT04)

The first thing you need to do is to check that your SAP client has all the required SAP

standard characteristics. To do this go to transaction CT04 and query your system to find

all characteristics that are called LOBM*


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The following messages will be displayed if everything goes well.

Once that is done you might want to go back to transaction CT04 and query for

characteristics called LOBM*.

Why do I need to do that do you ask? Well for one thing all the work is done for you.

Secondly and more importantly the standard SAP functions that will enable us to


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dynamically calculate the Expiration date based on minimum remaining shelf life,

makes use of these standard characteristics they are hard coded in the ABAP

functions.

B. Create User Defined Characteristics

Easy Access Logistics Central Functions Batch Management Environment

Classification Master dataCharacteristics (T.Code:CT04)

a. Viscosity

b. Density

c. Solvent Color Tone

Viscosity

Viscosity

Viscosity


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Viscosity

Viscosity

Density


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Density

Density

Density

Density


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Solvent Color Tone

Solvent Color Tone

Solvent Color Tone

Solvent Color Tone


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3.2 CREATE BATCH MANAGED MATERIAL

Easy Access Logistics Materials Management Material Master Material

Create (T.Code: MM01)

Solvent Color Tone


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4.0 BATCH DETERMINATION

Batch Determination is used in inventory management. It is used to select batches and

allocate the same in goods issue/goods transfer in inventory management.

In inventory management, batch determination is used to search and allocate batches

for the components to search for batches and allocate batches in goods issues.

The tools that batch determination uses is the condition techniques based on the

condition tables, access sequence and strategy types. These condition types are enough

to choose and allocate batches. Though additionally batch determination uses selection

classes and its characteristics values to choose batches and/or uses sorting rules to

choose sort batches while selection based on characteristics and its values.

Batch Determination can be used

During Goods Issues.

During Transfer Postings

During Stock Transfer.

Batch Determination is required in Inventory Management for

Material Withdrawal


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Internal Material Provision

Return Delivery to Supplier

Scrap / Sample.

Transfer Posting.

4.1 BATCH DETERMINATION CONDITION TABLES

Batch determination condition tables once created become the key combination fields

for searching batches. Eventually the condition records or search strategies are created

as master data based on these key combinations. The Condition Tables are created

separately for IM, Production, WM and Sales.

IMG Logistics General Batch Management Batch Determination and Batch Check

Condition Tables Define Inventory Management Condition Tables (T.code:OMA1)

Standard Tables


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4.2 BATCH DETERMINATION ACCESS SEQUENCE

Batch determination access sequences have multiple condition tables (key

combinations) assigned in a sequence of priority. This facility allows you to create data

for many key combinations so that even if the search of batches fails on the first key

combination condition the rest in the priority would help in search. The Access

Sequences are created separately for IM, Production, WM and Sales.


Access Sequence Define Inventory Management Access Sequences (T.Code: SPRO)


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4.3 BATCH STRATEGY TYPES

Batch Search Strategy holds multiple access sequences, though not assigned in any

sequential priority. The assignment of the strategy types is separately for IM,

Production, WM and Sales.

The strategy types or condition types are assigned in priority in the next step called

Batch Search Procedure Definition.

The strategy types configuration holds the selection criteria and the sort rules used in

batch determination techniques.

Strategy types are used ultimately to create the batch search master data or batch

search condition record so that the system would know the exact level at which search

for batches is to be carried out along with the selection/sort rules of these batches.

It is obvious that batch search strategy is used to search batches on certain rules,

because you want to automate the process and do not want it to do it manually for each

and every batch. Thus you have to aid the system in putting in a decision such as -

search all the batches of a given plant or search all the batches of a given set of material

at a plant or search batches for a given component or etc.


Strategy Types Define Inventory Management Strategy Types (T.Code: SPRO)


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4.4 BATCH SEARCH PROCEDURE

A Batch Search procedure holds multiple strategy types assigned in sequential priority.

The Batch search procedure thus becomes the final configuration which holds the total

search configuration together. The Batch Search Procedures are created separately for

IM, Production, WM and Sales.


Batch Search Procedure Definition Define Inventory Management Search

Procedure (T.Code: SPRO)

4.5 BATCH SEARCH PROCEDURE ALLOCATION AND CHECK ACTIVATION

In this step you allocate the batch search procedure to the respective modules. In the

case of inventory management, the Batch search procedures are assigned to the

Movement types.


Batch Search Procedure Allocation and check activation Allocate IM Search

Procedure / Activate Check (T.Code: OMCG)


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5.0 MASTER DATA FOR BATCH DETERMINATION

5.1 BATCH SEARCH CLASS

This is a class that will be used to search and find applicable batches during batch

determination. It is not directly assigned to the product it will be assigned to the batch

search strategy of the product.

The question is, what characteristics should we put in this class?

All we need is a characteristic where we will be able to input the value corresponding to

X (minimum remaining shelf life required). Again, we do not need to do anything, SAP

provides the characteristic LOBM_VFDAT Shelf Life Expiration Date, to do just that.

We therefore have a class (also of technical type 023 batches) that looks like this.

Easy Access Logistics Central Functions Batch Management Environment

Classification Master Data Create Class (T.Code:CL02)


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5.2 SORT RULE

Its all good to build a batch search class to find batches, but assuming SAP finds

numerous batches, how should they be sorted (i.e which should be the first one used?)

By batch number? Of course not, we want to sort batches based on the expiration date

in ascending order (the batches with the date closest to the present should be the first

to go).

Easy Access Logistics Central Functions Batch Management Batch

Determination Selection and Sort Sort Rule Create (T.Code: CU70)


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5.3 BATCH SEARCH CONDITION RECORDS OR BATCH SEARCH STRATEGY

When the entire configuration for batch search condition techniques is done, you would

create the Batch search condition records using varied transaction codes:

Easy Access Logistics Central Functions Batch Management Batch

Determination Batch Search Strategy For Inventory Management Create

(T.Code: MBC1)


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6.0 TRANSACTION DATA

6.1 GOODS RECEIPTS

1st

Goods Receipt without Reference

2nd


3RD



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6.2 GOODS ISSUES


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7.0 SUMMARY

The system looks for the 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.

The system checks whether the batches are available.

The system 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

The system proposes that batch determination is to run to run online, providing that

the search strategy contains the information.


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DISCLAIMER AND LIABILITY NOTICE

This document may discuss sample coding or other information that does not include

SAP official interfaces and therefore is not supported by SAP. Changes made based on

this information are not supported and can be overwritten during an upgrade.

SAP will not be held liable for any damages caused by using or misusing the information,

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at his/her own risk.

SAP offers no guarantees and assumes no responsibility or liability of any type with

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resulting from incompatibility between the content within this document and the

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batch Determination in Inventory Management