- SAP Managed Tags:
As segmentation allows to segment materials logically based on certain attributes, such as its characterstics or customer segment. Segmentation can be used to identify specific areas of demand or to identify demand in the overall supply chain. The same applies to Supply also.
In this blogpost I will be covering “Country Of Origin” of the products, i.e. how we can restrict the Sales/Production of material based on the country of origin. For example, there is a product company in US which manufacture products in US or in China, OR it uses BOM components (Raw Materails) from US or China, now there is a customer in US who wants to procure the items made in US only or the BOM components are from US only. Segmentation can solve the issue as it can restrict the sales or production of products of US to US customer only. Lets see the configuration steps, then I will take you though the scenario example.
CREATE CHARACTERISTICS - CT04
Characteristics are properties or attributes used to describe and differentiate objects, like products or equipment, enabling classification and analysis. First create a characteristic in the Segmentation grouping, this is similar to any other characteristic creation in S/4HANA but it must be created in the special group for Segmentation.
Characteristic Name : Name of The Characteristic
Char. Group : SGT_SAP-C - This is mandatory for segmentation
Status : Released
Number of Chars : You can enter values which you want in Characteristics, as we are using for country of origin we will enter “US”, “CH”, “IN” hence we entered 2
Value Assignment : Select “Single Value” as we need only one value in Characteristic
Enter the values of Characteristics “COUNTRY” as shown below
In “Additional Data” tab, client on “Relevance” to select the values where the segmentation is relevant.
In our scenario, the following processes are relavant. Hence select the same, for more details about each line items, please refer to SAP Help.
This relevancy provides the ability to have selected components to recognize the Segmentation. Make sure that the relevant ones are checked as per your business process.
CREATE SEGMENTATION STRUCTURE - SGT_SETUP
The tcode is for Simplified Segmentation Setup, please follow the below steps.
Select the Node
Click on “Create” icon
Enter the value for “Segmentation Structure”
Click on “Save
Once the Segmentation Structure is Saved, assign the pre-defined characterstics to the structure.
Double Click on Structure
Click on “Add Line”
Select the characterstics which we defined earlier, for example “COUNTRY”.
CREATE SEGMENTATION STRATEGY - SGT_SETUP
Once the Characteristic is assigned, Now create Strategy
Enter Segmentation Strategy “SEGSTG1”
Enter ‘1” in the Segmentation Scope
You will see the characterstics values are assigned to Segmentation Strategy as follows
Next steps will be assigning the strategy to the materials, hence to assign the materials, after the assignment, do check that the segmentation structure and strategy assignment in MM03-Basic Data 2
Validate the BOM, you can see the segmentation at Raw Material level as well.
Lets now execute the transactions to see the functionality of Segmentation.
CREATE SALES ORDER - VA01
In our scenario, we will create the sales order for the Finished Goods to be manufactured from “US” only, hence we will enter "US" in the segmentation field of the Sales Order Line Item
RUN MRP - MD02
Execute the MRP for the material “FG_SEG_001” to generate the production and procurement proposal based on the material master settings. You will observe that Sales Order is created for “US” segmentation but the production is performed without segmentation though “US” is maintained at Raw Material level which assign the Raw Material from “US” only. Upate can be done at planned order level for segmentation values.
Once the Planned Order is converted to Production Order, you will observe that the Raw Materials are segmented as “US”.
POST GOODS RECEIPT - MIGO
Enter the following details in MIGO transaction
• Goods Receipt
• Order
• Enter the Production Order Number and execute
• Enter the relevant entries like Qty, plant and storage location
• Stock Segment as “US”
CHECK SEGMENTATION RELEVANT STOCKS - MMBE
You will observe that the stocks will be available for respective segmentation, then the sales order will be confirmed using the Requirement Segmentation mapped to Stock Segmentation.
SUMMARY
Organizations use to have multiple product codes to identify the different products or the performance of different production lines of business though there are lots of similarities. Raw Material/Semi Finished/ Finished materials can be the sames with little difference in characterstics like country of origin, color, packaging or quantity, etc.
For further details on SAP S/4HANA segmentation, do refer to the e-bite - "Introducing Supply and Demand Segmentation in SAP S/4HANA"
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