Introduction: During the business blueprint/realization phase, project teams frequently discuss the activation of SAP Batch Management functionality. In this article, I will showcase the essential use cases of SAP Batch Management to assist the project team in making informed decisions.
Use Cases:
Use Cases |
Business Requirement |
SAP Batch Management |
Recording the Country of Origin
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The same material is often received from multiple vendors, each with a different country of origin. The country of origin indicates where the material was originally produced or manufactured. It is essential for generating legal customs documents in export/import transactions. This field is also referenced in global trade. |
The Batch Master record includes a Country of Origin field that can be recorded upon receipt and utilized for shipping purposes. |
The manufacturing date of the product & Shelf Life |
There are requirements to record the manufacturing date and subsequently calculate the expiration date of the material. This enables the capture of the material's shelf life information. |
The Batch Master record includes fields for the manufacturing and expiration dates, which can be used to calculate the product's shelf life. Batch Cockpit is a powerful report. |
Product Characteristics (Including vendor batch) during receiving
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Additional attributes of the material, such as vendor batch number, temperature, color, viscosity, or refraction index, may need to be captured at the time of goods receipt.
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SAP Batch Management with characteristics is an ideal solution for fulfilling such requirements. Characteristics can be created and assigned to the class to capture and manage the additional attributes of the material. |
Inventory Aging |
Businesses often require an aging inventory report that provides information on the quantity and value of inventory over time.
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By leveraging SAP batch management, it is possible to generate an inventory aging report. This report provides valuable insights into the quantity and value of inventory based on the age of the batches. |
Variable Weight/Catch Weight Management |
There are instances where each product packaging unit contains a distinct weight.
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SAP Catch Weight or Batch-Specific Unit of Measure solves this requirement. With this feature, managing products where each packaging unit carries a different weight becomes possible. The system allows for assigning specific unit of measure values to batches or catch weights, enabling accurate tracking and managing variable weights within the SAP system. |
FIFO/LIFO Picking any other attribute-based picking. |
In many cases, businesses must prioritize the consumption of the oldest lot of materials first. This approach is known as the First-In-First-Out (FIFO) method and ensures that the oldest inventory is used or sold before the newer stock.
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SAP Batch Management with Batch Search Strategy is an ideal solution for first consuming the oldest lot of material. The batch Search Strategy allows businesses to define specific criteria and rules for selecting batches during goods issues, production, or other processes. |
Product traceability and product recall |
Businesses require tracking the consumption of components during receipt and production processes, as well as monitoring the production of finished products.
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SAP Batch Management provides the capability to identify and trace batches throughout the supply chain uniquely. This allows for efficient tracking and identification of specific batches during product recalls or quality issues. With this system in place, businesses can quickly pinpoint affected batches, enabling targeted recalls and minimizing potential risks to customer safety. The traceability provided by SAP Batch Management enhances overall product safety and helps businesses effectively manage any quality-related challenges. |
Quality Control |
The business requirement is to perform quality control of the product.
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SAP Batch Management provides the functionality to record and track quality data for each batch of products. This includes capturing important information such as test results, inspection dates, and associated documents. By leveraging SAP Batch Management, businesses can effectively manage and monitor the quality of their products, ensuring compliance with standards and regulations and facilitating traceability and analysis of quality-related data. |
Split Valuation |
The business requirement is to track materials of different origins with distinct values.
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When a material is sourced from different suppliers or origins, split valuation can assign different valuation methods or prices to each batch or source. This enables accurate cost tracking and valuation for materials with varying procurement costs. |
Storing Of Certificate Of Analysis (i.e., COA) |
The business requirement is to link Vendor's COA or in-house produce COA to the material and ensure it is included when shipping to the customer. |
SAP Batch Management allows for capturing the vendor's batch number and establishing links between the SAP batch, vendor's batch, and COA (Certificate of Analysis). |
Conclusion:
SAP Batch Management is a feature within the SAP system that allows for managing and tracking batches or lots of materials or products. It is commonly used in pharmaceuticals, food and beverage, chemicals, and cosmetics industries.
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