S/4HANA 2021: Improvements for Segmentation in Process Orders
SAP Demand and Supply Segmentation is a solution that was originally developed for the fashion industry, allowing companies to segregate demands, stock and supply elements in individual segments. With segmentation, companies can fulfill unique requirements of different markets, creating rules to segment the stock using different characteristics, without increasing the total number of materials, BOMs and routings in the system.
Those business requirements, however, are not unique for fashion companies and companies in the life-sciences industry share similar requirements to segregate the stock into different segments. The main business requirement for life-science industry is to fulfill compliance requirements across different markets and at the same time avoid additional master data maintenance. Several pharma companies started to explore the segmentation solution to fulfill those requirements, however, segmentation was not yet fully integrated to process orders, until SAP S/4HANA 2020.
The latest release of SAP S/4HANA 2021 brought improvements for segmentation focused in process orders and, as stated in SAP note 3083589, the following process are now supported:
- Creation, Change and Display of Process orders,
- Creation, Change and Display of Master Recipes
- Conversion of Planned orders to Process orders via COR7
- Goods movement via MIGO
This blog provides an overview of the new features available for segmentation in process orders, as of SAP S/4HANA 2021:
1 – Segment selection during manual process order creation
As of S/4HANA 2021 users can manually select the segment when manually creating a process order in transaction COR1. When creating a new process order for a segmented material in transaction COR1, a popup screen will be shown, where the user can choose the value for the different segmentation characteristics or the valid segmentation combinations.
2 – Segment is now displayed in the process order
Besides the possibility to select the segment during the order creation, process order transactions (such as COR1 and COR2) now bring a field where the segment is displayed and where it can also be changed.
3 – Process order segment copied to manually created batches
In previous releases, the segment was only copied to the batch if the batch was automatically created during the process order release. As of S/4HANA 2021, if a segment is determined for the process order, it is now automatically copied to the batch, even when it is manually created in the process order transactions.
4 – Segment selection in the master recipe
In previous releases it was already possible to determine the segment for the bill of material components, defining if a specific component should be used or not when manufacturing a product for a specific segment.
As of S/4HANA 2021, the master recipe transactions introduced a new button where we can determine the validity of a master recipe for specific segments. With this option, besides the different components, we can also have different manufacturing processes for each segment.
As shown in the figure below, it is now possible to determine that the Master Recipe will be valid for specific segment or to define that it will be excluded for specific segments.
Additional details of this app can be found in the following links:
SAP Help – Process Orders with Segmentation
SAP Note 3083589 – SAP S/4HANA On Premise 2021 release: Fashion and Vertical Business Restriction Note
Brought to you by the SAP S/4HANA RIG and Customer Care team.
This is definitely a good move forward. Do we have any best practice document or an overall configuration document to support this process ?
I did not find any best practice for this specific scenario, but I'll suggest to our product team to create it.
Thanks a lot , appreciate your response...
Thanks for sharing this information.
Do you know if the QM module supports this functionality?
Thanks in advance
Even though the QM transactions were not exactly enhanced to work with segmentation (that means, there is no field to show or change the segment), it is possible to use QM with a material for which segmentation is active.
Dear Caetano ,
vey well explained ,
Can we have similar scenario mapped for Pharma Industry to capture the Active Pharmaceutical ingredient Material (API) in planning during our MRP execution.
I apologize for my delay, but I did not see your comment earlier.
Active Ingredient can be considered in MRP in standard, but I have never tested it together with Segmentation. I did not find any restriction in the documentation, but it is a scenario that should be worth to test in the system.
Is Stock segmentation available in IBP?
Yes, you can forecast by demand segment in IBP.
Hello Caetano Almeida
Do we need an extra license to activate Segmentation in S/4 HANA (not fashion solution) ?
Thanks and Regards
I'm not the right person to discuss licenses, but if I'm not wrong there is a separated license for segmentation. Better to double check with your SAP accountant excutive.
Is it possible to build hierarchy in segmentation?
|_ Segment 2-Level 2
|_ Segment 3-Level 2
The main focus of this blog was to show the new features for segmentation in process orders.
For general segmentation questions, please open a separate thread with your inquiry.