How to optimize batch management in sap

The batch management process in SAP ERP is used to separate the process of batch creation, batch release, and batch run. All batch data are entered as per the Batch Management Process of SAP ERP. In various industries, including the manufacturing industry, we need the task of working with uniform, partial amounts of a substance or product across the entire supply chain. A batch is the total or part of a specific substance or product made following the same recipe within the SAP system.

What is a batch in SAP?

A batch is a defined quantity of a material produced or processed in a single run in SAP. A unique batch number, which is typically assigned by the SAP system or manually entered by the user, can be used to identify batches. Batches are used to track and manage raw materials, intermediate materials, and finished goods at various stages of production or processing.

Batches can be tracked in SAP using the Batch Management module, which enables users to create, manage, and track material batches throughout the manufacturing process. The Batch Management module also includes quality control tools, such as the ability to track inspection results and generate certificates of analysis (COAs) for batches that meet quality standards.

Batch management is an important component of SAP’s Materials Management (MM) module, which is used to manage and control material procurement, storage, and movement within an organisation. Companies that track material batches can ensure that they are using the most up-to-date and highest-quality materials in their manufacturing processes, as well as improve their forecasting and planning capabilities.

What is batch management?

SAP Batch Management is used to enhance transparency in the manufacturing process, Execution and Collaboration.A batch is an entire amount of any material in an exact manufacturing cycle. The main purpose of a manufacturing batch is to ensure the uniformity of the batch.

Sap Batch Management process is utilized for Manufacturing Visibility & Execution & Collaboration.In simple terms, SAP Batch Handling means additional key fields for users to identify the same materials. For e.g.  Normal Control : Plant + Material + Storage Location
Plant + Material + Storage Location + Batch Number = Batch Handling

Batch management
Batch management

Batch management is a feature that is used in almost every sector. It is primarily used in the following industries:

  • Chemicals
  • Pharmaceuticals
  • Cosmetics
  • Hygiene and Sanitation
  • Food
  • Retail

Batch functions give you the option of controlling as well as processing an unreproducible manufacturing unit across every area of logistics. The batch is tracked throughout the entire chain of logistics, starting from the entry point into the manufacturing process through Purchasing until the point of the exit through sales.

Integration of Batch Management

batch management in sap mm
Batch management

Batch is organised in the R/3 System under the “LO” area, which stands for “General Logistics.” It will, however, necessitate Customizing settings in the relevant Logistics area.  These are:

sap batch management process flow
sap batch management process flow

Batch management is used throughout the supply chain. For example, when a finished product comes off the production line, it is assigned a batch number. When raw materials are issued to a production order, which batch of each raw material would be best, is determined based on specifications in the production order, the finished product, or other criteria (can be automatically selected. 

Similar to sales times when it comes to selling time, which batch of material is the best one for a specific customer is determined by analyzing the requirements of the customer. 

Batch ManagementImplications to the Inventory

sap batch management ppt
sap batch management

The batch is a sub-set of the inventory quantity. A batch, by definition, is one-of-a-kind and cannot be duplicated with the same unique properties. It is linked to the classification system and can only be used if the classification system has been properly configured for batch management.

Batch Management Process in sap

Validity of a Batch Overview

The assignment of a batch number is crucial to tracking the batch of material. The unique number is assigned (valid) at three levels: plant/material level; client level or Changes in the validity of the batch level require a reorganization of the batch.

Validity of the Batch:  “Client Level”

The Batch is a unique number assigned to a material such as C1 ,C2 etc

Batch Management -Client Level
Batch Management -Client Level

Validity of the Batch:  “Material Level”

A batch Number is only a unique number in combination with a Material

image 28
Batch Management -Material Level

Validity of the Batch: Plant Level

The Batch in only a unique number in combination with a material and a plant

Batch Management -Plant level
Batch Management -Plant Level

What are the best practices for batch management?

It is recommended that the batch validity decision be made early in an SAP implementation in order to minimize the need for batch reorganization. You can select the validity of the batch in Customizing. Three batch levels are available. 

It is the default option to set the plant level. You are unable to change back from a higher to a plant level within the normal system. However, there is the possibility to switch from the client level to the material level. It is because of the structure of the batch information, that must be transformed every time you alter the level of the batch. Management of batch status is also changed by the change and needs to be maintained later within the system.

If the batch level is changed from plant level to material level, the material is then to be handled in batches in all plants, in which it is defined.

How to create a batch number

Batch Number Assignment

  • Batch numbers can be assigned manually or allow the system to generate one.
  • Internal (system generated) number assignment is enabled in Batch Management Customization..   It is activated at the Client level
  • It’s possible that you’ll need to generate a batch number for a variety of reasons.:
    • Manual creation of a batch master record.
    • Goods receipts.
    • Creation of a process or production order.
    • Usage decision in Quality Management.
    • Quality analysis.
    • Transfer postings (including batch splits)
how to create a batch number
how to create a batch number

Classification & Batch Mgmt

Classification Overview

  • The SAP Classification system is used to discover suitable things and related objects, and to determine whether no suitable objects exist.
  • The three primary activities of the Classification system are as follows:
    • Maintaining characteristics and classes
    • Assigning characteristic values to objects and linking them to classes
    • Finding objects
  • Characteristics are defined for a given format, which can be character, numeric, date, currency, or time.
  • The values for reference qualities are automatically retrieved from master record fields. No user maintenance is required.
  • Classes are defined for a specific class type.  The class type controls:
    • the functionality that the class is designed to provide
    • the types of objects that it can classify
  • Objects can be categorized using classification transactions or their master record directly. (I.e. the material master’s classification view)
  • A user must know the class to search within in order to conduct a search.  It can be found by:
    • placing in the class field
    • using search help
    • exploding the hierarchy graphically
    • via the characteristics to be used
  • The condition technique is used to determine batch size number
  • Customer’s acceptance of specifications is documented in strategy records. During batch determination, the system compares batch specifications to those in the strategy record.
  • To track batches, two lists can be used: The Pick-up list or the Batch where used list
  • Pricing can be done on a batch or material basis.
image 7

How to activate batch management in material master

Structure of the Master Records

All criteria which make a batch reproducible are criteria relating to the material and not the batch itself. A batch is produced and its characteristics are measured, a batch master record is created (either at goods receipt or prior) and it is assigned to the respective material number. The batch master record should only contain data that is unique for precisely this batch. The batch is defined as a non-reproducible unit by these specifications. Activating Batch Management is nearly ‘irreversible,’ because deactivating batch management for a material with a large number of transactions to reprocess is nearly impossible.

Menu paths:  Logistics->>MM->>Material Master->>Batch

Classification of a Batch

Classification of a Batch
Classification of a Batch

Create characteristics/classes for batch management:  Logistics->> Central functions->>Classification->> Master data

Batch Classification
Batch Classification

The condition technique is used to determine batch number .

  • The agreements regarding the specifications that customers agree to are recorded in the strategy record. In the process of batch determination, the system compares the specifications of the batch to the ones that are in the record of strategy.
  • To track batches, two lists can be used:
    • The Batch where used list
    • The Pick-up list
  • Pricing can be done at either the batch or material level.

In the sales area, a batch determination can be triggered at three points in the process.

batch management in sap sd
batch management in sap sd

You can search for the batch matching your specifications when you create the sales order.  If you locate the batch at this point, the batch number is passed on to delivery and the warehouse management system.  Otherwise, a batch determination will be performed at a later stage.

If the batch is not determined until delivery, a batch split is possible.  If you locate the batch at this point, the selected batch numbers are again passed on to the warehouse management system.

Transfer order creation is the last point in the process at which you can determine a batch with the specifications you require. Batch determination can be activated manually or automatically.

How to activate automated batch determination.

Menupaths:To turn on automatic batch determination:  IMG->>Logistics-General->> Batch Management->>Batch Determination and Batch Check->>Activate automatic batch determination in SD.

Availability Check during-Batch Determination

In the MRP view of the material master, the system requires a checking group in the field “Availability Check”. 

The Availability Check specified on the material master in combination with the checking rule defined for the business transaction drives how the system will carry out the availability check.One of the parameters one can specify is whether the system will perform the availability check using replenishment lead time

For material with batch management requirements, you must use an availability check that functions without replenishment lead time.  The standard SAP configuration comes with a new checking group “CH – Batches” which does not take replenishment lead time into account.

Menupaths: The availability check for batches can be configured under:  IMG->>SD->> Basic Functions->>Availability check and transfer of requirements->> Availability Check->>Availability Check with ATP or Against Planning

In sales and distribution, a batch determination is used.

In Sales & Distribution, the batch determination should be used at four points. These are some examples.

  • Contracts for quantity
  • Orders for sales (or scheduling agreement)
  • Delivery

Batch management in sap sd

Batch Determination in Sales Orders

 When customer requirements take precedence over all other factors, the batch determination should be used in sales orders (such as stock removal strategies, for example). If a customer, for example, requires a material with specific set specifications, use batch determination here.

To find batches for set specifications, use batch determination for the sales order. You can reserve batches as well because requirements are transmitted via the sales order in the same way that they are via the quotation.

SAP Delivery batch determination

Batch Determination in Delivery

If a batch determination is used in deliveries, it should be used.

  • Dealing with materials that are always on hand (mass production)
  • You want to keep your capital locked up as little as possible.
  • The specifications aren’t particularly specific (e.g. when you need batches that aren’t available by the USA but are sold in Asia or batches that are appropriate for entire customer groups)
  • The most important criteria are the expiration date and the remaining shelf life.
  • Batch splits are required.

SAP batch management configuration

Creation Of Characteristics

Characteristics for Batch Management must be defined. CT04 is a Tcode.

Creation Of Characteristics
Creation Of Characteristics

Creation Of Class

Now we needs to define Class as below using code CL01

image 10
Creation Of Class

Define Batch Short Rule

Define short Rule for the Batch determination

Batch Short Rule
Batch Short Rule

Material Master Mantaince

We need to create a Classification view for Material Master

image 13

We need to maintain the classification view for Material Master as per the below screen

In Material Master

image 14

Generating Batch for Materials:

At the time of Goods Receipts,Batch number will be automatically generated internally

batch classification
Batch classification
how to create a batch number
how to create a batch number

Batch Level and Status Management

Batch Management Status
Batch Management Status

In this IMG activity, you specify the following,Batch Level and Status Management

  • The degree to which batch numbers are distinct.
  • Whether or not batch status management is enabled in the client
  • The plants where batch status management is used
  • The preliminary status of new batches
Batch Definition
Batch Definition

Activated Batch Number assignment

By this customization we have activated internal batch number generation automatically, External number range can also be utilized to generate Batch

Actiavated Batch Number assignment
Activated Batch Number assignment

Batch Determination in SD

All the above red boxes are required to be configured to execute Batch Determination in SD and this Determination process is based on Condition Techniques like pricing

auto batch determination in sap sd
auto batch determination in sap sd

Strategy Type

Strategy Type for Batch Determination
Strategy Type

Item category in Batch Determination

Item category in Batch Determination
Item category in Batch Determination

Batch search strategy

image 23
Batch search strategy

Batch search strategy


Batch search strategy
Batch search strategy


image 25
Batch search strategy


Can you tell me what are the batch master table in sap ?

Cross-Plant Batches – Table MCH1
Plant Wise Batches -Table MCHA
MCHB is a batch stock.
View all batches’ MCHB CHARG.
MCHBH Batch Stock History by Time

Difference between batch and serial number in sap

Serial numbers are a unique number assigned to an individual product or item. The term “batch” is utilized to denote an entire set of items or components that are produced in the same production run. In simple terms the term “batch” refers to an assortment of materials while a serial number is referring to a specific part of material.

We hope you enjoyed our article on Batch Management in SAP. With this knowledge, we know that you can manage your batches more effectively and efficiently. So what are you waiting for? Please check eBook on SAP ERP Sales & Distribution :

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