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Why Batch Management is required?

Former Member
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Hello Experts,

I am going through all notes available in SPRO related to Batch Management and able to understand the settings for the same.

However, I do not have any idea what is the importnace of Batch Management? Why do we do that? And where its required?

Can you throw some light on the same?

Thanks And Regards,

Krupesh Kothari.

Accepted Solutions (1)

Accepted Solutions (1)

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batch management is applicable for FMCG (Fast moving consumer goods) materials. here we can split the production or procurement quantities in to number of batches based on the date and time of production.

all the materials (in house or external) are identifies through batch during goods receipt and goods issue.

batch will be useful to identify the correct materials and if there is any failure of materials we can able to identify the root cause by drill down batches.

hope you understand the use of batch



Former Member
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Hello Sridharan,

Thanks for your reply.

However, I still have one question:

From your first two sentences I understood that Batch is useful for the reporting purpose and mainly to have complete track of the material in the business process.

However, your last comments: that batch is useful for root cause analysis if material fails. So can you explain how batch is useful for rot cause analysis?

Please help me to clear this doubt. As understanding of mine varies with statements made by you.

Thanks And Regards,

Krupesh Kothari.

Edited by: KrupeshK on Oct 31, 2009 12:03 PM

Answers (4)

Answers (4)

Active Contributor
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Batch Management you doing means, you just subdividing the material according to the Characteristics of material.

Example....Lets say Vendor supplying H2SO4,you are receiving 98%,70% and 50% purity. According to you requirement and supply from Vendor you can keep in three different batches. This characteristic of material you can maintain in creating the characteristic.

Batch Management can be used for all type of industries.Example.... Chemicals, Pharmaceuticals, Health Care , Food, Aerospace & Mining.

Note :

Batch management of existing material can not be done if it has stock and value.You can keep stock value NIL (By reversing) and then proceed with batch management.

For more check the link:


Biju K

Former Member
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Batch Managment

Batch Management can be used in all industries. It is mainly used in the following -




Health Care




Mill Products


Batch Management incorporates the entire logistics process, from procurement to sales. The new functionality works with all existing batch records. It is closely linked with classification, but can also be used without classification. You can only search for batches via the batch determination function if the batches are classified. In a process manufacturing environment, production is usually executed in batches. In addition, many materials entering the process are managed separately in batch stocks with different specifications.

Batch - A batch is a quantity of the material produced during a given production run. A batch represents a homogeneous unit with unique specifications. A Batch is a subset of the total quantity of a material held in stock. The subset is managed from all other subsets of the same material.

Depending on the plant, material and operational levels we can choose the level at which you want the batch number to be unique. The material number is unique at the client level. However, the uniqueness of the batch number can be defined at the following levels -

In combination with the material and plant

In combination with a material number

At the client level

If the Batch level is set to Plant/Material in your system, the following applies:

The batch number can be reassigned for a material with a different specification in each plant.

However, you can transfer a stock from one plant to another between batches with the same number, even though the batches do not necessarily have the same specification. In such cases, the batch quantity transferred assumes the specification of the destination batch.

If you want the batch specification to be unique across all plants, you can only achieve this through organizational measures. The system does not support this. In this case, you are recommended to switch to a higher batch level.

If the Batch level is set to Material in your system, the following applies:

A batch has the same specification for all plants at which a material is stored.

The same batch number can be reassigned with a different specification for each material.

If the Batch level is set to Client in the system:

The same batch number can only be assigned once within the entire client.

It is uniquely assigned to one material number.

Also refer this link, this will help you a lot:




Former Member
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In various industries u2013 particularly the process industry u2013 you have to work with homogenous partial quantities of a material or product throughout the logistics quantity and value chain.

There are various reasons for this:

Legal requirements (for example, the guidelines set out by GMP (Good Manufacturing Practice) or regulations on hazardous material

Defect tracing, callback activities, and regression requirement

The need for differentiated quantity-and value-based Inventory Management (for example, due to heterogeneous yield/result qualities or varying constituents in Production.

Differences in usage and the monitoring thereof in materials planning in SD and Production.

Production or procedural requirements (for example, settlement of material quantities on the basis of different batch specifications).


Batch Management is integrated in all applications of the R/3 System. It supports the management and processing of batches in all of a companyu2019s business processes.


Batch number assignment

You use this function to assign a batch with a number that uniquely identifies it.

Batch specifications

You use this function to describe each batch uniquely using characteristics and characteristic values. You specify the permitted value range in the allocated material master record.

Batch status management

You use this function to indicate whether a batch is usable or unusable. You set this status:

Manually in the batch master record or at goods receipt

Automatically in the usage decision in quality management

Batch determination

With this function, you can use various criteria to search for batches that are in stock, for example:

when posting goods issues

when combining suitable material components for production orders and process orders

when creating a delivery according to particular customer requirements

Batch where-used list

The batch record contains all quality-relevant planned and actual data for the production of a batch and complies with the GMP guidelines (Good Manufacturing Practices) for the pharmaceutical industry and food industry.

The path of the batch from Procurement to delivery to your customer is shown in the batch where-used list.

For more information, refer to Archiving Batch Records (PP-PI) in the BC - SAP ArchiveLink Scenarios PP documentation.

Active ingredient management

You use this function to administrate and process materials with active ingredients that are to be handled in batches.

also see following:

The following process chain describes how batch management could look when integrated into the relevant SAP component.

Process Flow

Sales & Distribution

A sales order for a material subject to handling in batches is posted.

You have previously agreed with the customer that the batches of the material he is supplied with must meet certain specifications.

you run a batch determination, as well as a batch availability and usability check. The system determines that the sales order cannot be met with the present stock.

a requirement is transferred to production.


A production order (discrete manufacturing) or a process order (process manufacturing) is created for the material to be handled in batches due to the posted sales order.

A batch number can be assigned for the quantity of material to be produced.

As raw materials with certain specifications are required for the manufacture of this material, batch determination is triggered.

If a sufficient quantity of raw material is available, the selected batches are reserved for the production or process order


If there is an insufficient quantity of raw material, the required quantity with the appropriate specifications is ordered from the vendor.

Goods Receipt

Due to the purchase order created by purchasing, the raw material is posted to the stock in quality inspection during goods receipt.

The batch is assigned a batch number.

An inspection lot is created.

Quality Management

The delivered batch of raw material is subject to quality inspection.

The inspection results are recorded, and become available to batch determination as soon as the usage decision has been recorded.

The batch is posted to either restricted or unrestricted stock.

Warehouse Management

The batch of raw material is placed into stock at storage bin level.


Before production commences, an availability check is run as part of batch determination.

The production or process order is released.

A batch number is assigned to the material to be produced.

The shop floor papers (PI sheet, for example) are created.

An order-related inspection lot is created for quality inspection.

The raw materials warehouse is notified of the transport requirement for material provision.

Warehouse Management

Using the transport requirement, the batch of raw materials is provided at the correct time and date.


The manufacturing process is completed, the batch of raw material is consumed.

Inventory management

The goods issue for the batch of raw material required by production is posted.

Quality Management

Inspections are conducted during the manufacturing process.

The inspection results are recorded.

A usage decision is made.

Inventory Management

The batch produced is posted to the stock in quality inspection.

An inspection lot is created.

Quality Management

The batch produced is subject to a quality inspection for final release.

The inspection results are recorded.

A usage decision is made.

Inventory Management

The batch produced is posted to unrestricted-use stock.

Sales & Distribution

During delivery, batch determination is conducted with reference to the sales order.

During batch determination, an availability check is carried out.

Using the inspection results for quality management, inspection certificates can be automatically created.

Inventory Management

The goods issue is posted.

For detailed information on batch management in Inventory Management, refer to the MM - Inventory Management documentation.

Former Member
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Hi Krupesh ,

Batch mangment is mostly use in chemical industry as well as in many other industry , as you may be using serial number for material , the serail number is assign to each material , e.g if you are making 10 number there should be 100 serial number and all this 100 qty. material can be assign to a single batch no.