In SAP S/4HANA Cloud system, you can use batch determination in production and process orders and run schedule headers to find suitable material components for the product to be produced, and to pick these from stock.
In this Blog, we will learn the process of setting up batch determination in production orders. And the same concept could be applied to process orders as well.

Overview

Set up a sample of batch determination in Production Orders. Our example is as followings:

We are trying to produce finished material: FG_BATCH_SAM by using raw material: RM_BATCH_SAM. We need to consider raw material’s PH value and make sure it is higher than 5. Meanwhile, we also want to consume the raw materials based on “first-in first-out” approach, which means those raw material batches come to warehouse first should be used firstly.

Prerequisite

• Batch management materials need to be created, there should at least be finished and raw materials with MRP views and the work scheduling view. BOM and routing/master recipe need to be created for the finished material.

Figure 1 – BOM of the finished material

• Several Batches are created and classified for the raw materials. In our example, the batches are classified with two characteristics:
  Standard characteristic: Date of Last Goods Receipt (LOBM_LWEDT)
  Custom characteristic: PH

Figure 2 – Batch Classification

• Goods receipt has been done to the batches to make sure they have stock to do batch determination.

Figure 3 – Available batch stock for raw materials

In our scenario, there are 4 available batches in the example plant and storage location.

Configuration Steps

1. Create selection class in App: Manage Classes (ID: CL02). The selection class should be part of the batch class for raw materials in material master, but some of the standard characteristics may not need to be entered in the batch class but only need to be entered in the selection class. For example, LOBM_RLZ and LOBM_LFDAT.

   Figure 4 – Selection Class

2. Create Sorting rule in App: Create Sort Sequence (ID: CU70). The characteristics in the sorting rule should be part of the batch class for raw materials in the material master.
                                                                              Figure 5 – Sorting Rule
3. Define Condition table in configuration step: 103953 or 103954. A condition table defines the combination of fields that specifies the validity of an individual condition record. And it will be used in our next step to define access sequence.
   In our scenario, we could use the standard predefined condition table: 031. It is the combination of Order Type/Plant/Production Material/Component 

   

   Figure 6 – Condition table

4. Define Access Sequence in configure step: 102170. Access sequence defines an access sequence according to which the system uses to first find a search strategy using condition table. And it will be used in our next step to define strategy type.
   In our scenario, we could use the standard access sequence: CO02. It only contains one condition table: 031. 

   

   Figure 7 – Access Sequence

5. Define strategy type in configuration step: 102230. Strategy type defines one search strategy by linking selection class(Step 1) and sorting rule(Step 2) to access sequence(Step 4).
   In our scenario, we created a new strategy type: Z001 to set up such a link. 

   

   Figure 8 – Strategy Type

6. Define Search Procedure for Production in configuration step: 102280. A batch search procedure comprises all strategy types that can be used for a particular combination of plant and order type.
   In our scenario, we created a new search procedure Z00001 which contains strategy type Z001: 

   

   Figure 9 – Search Procedure for Production

7. Assign Search Procedures to Production and Activate Check to specific plant & order type in configuration step: 102431.
   In our scenario, we will assign the search procedure Z0001 to plant 1310 and order type YBM1. 

   

   Figure 10 – Assign Search Procedures to Production

8. Build Search strategy for production in App: Manage Search Strategies – Production(ID: COB2).
   
   To make sure all components’ PH value is larger than 5. We define characteristic PH> 5 in the Search strategy.

Test

1. Create a Production Order in app: CO01.
   
2. In component view, batch determination could be triggered manually.
   Batch 131B_3 is determined here. You may check the batch determination log by selecting the line item and clicking Menu-> Component-> Batch Management-> Display Determination
   You may click on “Log” to check the detailed log for the batch determination
   Here you could see that batch 131B_1 is excluded according to selection criteria because its PH value is 5 which cannot fit our selection criteria PH > 5. All other 3 batches meet the selection criteria and are sorted by the sorting rule: Ascending by Last Goods Receipt Date. So batch 131B_3 is determined in our scenario.

In closing

I hope this blog has helped you understand the basic steps to set up Batch Determination in Manufacturing in SAP S/4HANA Cloud. Please feel free to share your feedback and thoughts in a comment. And I will update more blogs of batch management in SAP S/4HANA Cloud.