Explain The Purpose Of Using Batch Management

What is the importance of SAP Batch Management? Why do businesses do that? And where it is required?

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.

Batch Management

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

- Chemicals 

- Pharmaceuticals 

- Cosmetics 

- Health Care 

- Foodstuffs 

- Retail 

- Aerospace 

- Mill Products 

- Mining 

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. 

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