SAP Automatic batch determination

Automatic Batch Determination
Based on Shelf Life

Applies to:
SAP ECC 6.0. For more information, visit the Enterprise Resource Planning homepage.

Summary
This article illustrates how a batch is automatically determined while creating a delivery based on the shelf
life of the material in the batch. This concept of batch determination is primarily useful in Pharmaceutical,
Chemical and Food industries, where you want a batch closer to its expiration date to be delivered first.
Besides you may also want to deliver only those products which have a remaining shelf life of a certain
number of days after it is being delivered.

Author: Sweta Jain
Company: Deloitte Consulting India Ltd.
Created on: 05 February 2010

Author Bio
The author is an analyst in the area of SAP ECC implementation having expertise in Sales and
Distribution processes.

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© 2010 SAP AG 1

Automatic Batch Determination Based on Shelf Life

Table of Contents
Introduction ......................................................................................................................................................... 3
Configuration in SAP .......................................................................................................................................... 4
1. Import Standard SAP Characteristics .................................................................................................... 4
2. Creation of a Class ................................................................................................................................ 4
3. Material Master Settings ........................................................................................................................ 5
4. Goods Receipt ....................................................................................................................................... 7
5. Creation of multiple Batches .................................................................................................................. 8
6. Creation of a Search Class .................................................................................................................... 9
7. Creation of a Sort Rule ........................................................................................................................ 10
8. Creation of a Batch Search Strategy ................................................................................................... 11
Testing 14
1. Sales Order .......................................................................................................................................... 14
2. Delivery ................................................................................................................................................ 15
3. Billing ................................................................................................................................................... 18
Disclaimer and Liability Notice .......................................................................................................................... 19

© 2010 SAP AG 2


Introduction
There are various materials that may no longer be used or sold after a certain time period. These products
are normally assigned a shelf life expiration date (SLED). Now, if the product is to be delivered in batches,
the system should automatically determine the batches appropriately during the delivery. This concept of
batch determination is primarily used in industries involved in the manufacture of Pharmaceutical, Chemical
and Food products. The following example clearly illustrates the business scenario where we can apply this
concept of automatic batch determination.
Consider a Pharmaceutical Company which manufactures a product named as “Medicare”. The business
requirement is that the batches should be determined based on the following conditions.

(a) The batch delivered must have a shelf life of at least 50 days from the date of delivery.

(b) The batch which has an expiration date that is nearer should be delivered first and the batch which
has already crossed its expiration date should not be picked up.

(c) If the quantity required by the customer exceeds the quantity of a batch, then the next batch should
also be picked up in the similar manner, that is, it should have its expiration date nearer than the
remaining batches.

© 2010 SAP AG 3


Configuration in SAP
1. Import Standard SAP Characteristics
First and foremost you need to import all the important standard SAP characteristics, that is you
need to copy them from the client 000. These characteristics are hard coded in the ABAP functions.
Transaction – BMSM

2. Creation of a Class
Then, create a class named as “CLASS_EXPIRYDATE” of Class type “Batch (023)” and assign a
standard SAP Characteristics “LOBM_VFDAT – Expiration date, shelf life” to this class.

This characteristic enables SAP to ask for the production date whenever a goods receipt for a
material is done. Then the system automatically calculates the expiration date of the batch based on
the shelf life of the product entered in the material master.
Transaction – CL01

© 2010 SAP AG 4


3. Material Master Settings
The next step is to maintain the class created under the „Classification‟ tab in the material master.
Transaction – MM01

Besides to enable the material to be maintained in batches, you also need to check “Batch
Management” under the “Sales/General Plant‟ tab in the material master.
Transaction – MM01

You also need to maintain two most important fields under the tab „Plant data/storage. 1‟.

© 2010 SAP AG 5


a. Total Shelf Life - Period for which the material will keep in total, that is, from the date of
production to the shelf life expiration date.

b. Min. Rem. Shelf Life - Minimum amount of time for which the material must be kept upon goods
receipt for the goods receipt to be accepted by the system.

© 2010 SAP AG 6


4. Goods Receipt
The next step is to do Good Receipt for the material in different batches each with a different
production date. An example for Batch „0000000015‟ is shown below.
Transaction – MB1C

SLED (Populated
automatically by SAP)

Manufacturing Date

As soon as the date of manufacture is entered, the system automatically calculates the Shelf Life
Exp. Date.

SLED = Production Date + Total Shelf Life (= 100 from Material Master)

© 2010 SAP AG 7


The value of the characteristics “LOBM_VFDAT – Expiration date, shelf life” under the „Classification‟
tab of the batch also gets updated automatically with the SLED.
Transaction – MSC3N

5. Creation of multiple Batches

Similarly, create five other batches for the same material with different production dates as per the
requirement. All the batches that were created in SAP with their production date and SLED are
tabulated below.

Self Life Exp. Date (calculated
Batch Number Date of Manufacture
automatically by SAP)
0000000014 15.09.2009 24.12.2009
0000000015 15.11.2009 23.02.2010
0000000016 15.12.2009 25.03.2010
0000000017 20.12.2009 30.03.2010
0000000018 01.01.2010 11.04.2010
0000000019 05.01.2010 15.04.2010

© 2010 SAP AG 8


6. Creation of a Search Class

Now a second class („CLASS_SEARCH‟) needs to be created which will be used to search and find
applicable batches during batch determination. This class is not assigned directly to the product but
to the batch search strategy of the product. You primarily need to assign three characteristics to this
class.

(a) LOBM-VFDAT: The expiration date of the batch which is automatically updated by SAP
as stated above.

(b) LOBM-LFDAT: The delivery date which is automatically updated by SAP from delivery
during batch determination.

(c) LOBM_RLZ: Remaining Shelf Life for Batch. You use this characteristic to enter the
required remaining shelf life in days that a batch must be usable after delivery to your
customer.

For example, if you want that your product‟s expiration date should be at least 50 days away from
the delivery date, then the value of the characteristics LOBM_RLZ should be greater than or equal to
50.

Transaction – CL01

© 2010 SAP AG 9


7. Creation of a Sort Rule
The next step is to create a sort rule which tells the system to sort the batches based on the based
on the expiration date in ascending order (the batches with the date closest to the present should be
the first to go).

Transaction – CU70

Click on the characteristics button and assign the characteristic LOBM-VFDAT to it. Also select the
Ascending Check box to sort in ascending order

© 2010 SAP AG 10


8. Creation of a Batch Search Strategy

Next you have to create a batch search strategy which will be called during delivery processing. A
strategy type based on Customer/Material is used here.

Transaction – VCH1

© 2010 SAP AG 11


Then, click on the “Selection Criteria” button to assign the search class previously created. In our
case “CLASS_SEARCH” was assigned.

All the three characteristics assigned to the class also get copied although the characteristic
LOBM_LFDAT is hidden. These characteristics can be seen by clicking on the icon of hidden
characteristics.

Here you also assign the value of the characteristic LOBM_RLZ ( “Remaining Shelf Life for Batch” ).
Since we want the system to select only those batches for which the expiration date is at least 50
days away from the delivery date, the value of this characteristics is assigned as >=50.

© 2010 SAP AG 12


Now you assign the sort rule we created in the previous step by clicking the SORT button on the
previous screen.

The batch strategy is then saved. All the settings required for batch determination are now complete.

© 2010 SAP AG 13


Testing
1. Sales Order
Now we create a Sales Order in order to see how it works.
Total Quantity of Material entered in the Sales Order – 250.
Required Delivery Date – 21.01.2010.
Transaction – VA01

© 2010 SAP AG 14


2. Delivery

Before creating the delivery let us predict which batches should be picked up according to the
configuration done.

Remaining Shelf
Batch Available Shelf Life Exp.
Delivery Date Life ( SLED –
Number Quantity Date (SLED)
Delivery Date)

0000000014 100 24.12.2009 21.01.2010 - 27 (expired)

0000000015 100 23.02.2010 21.01.2010 + 32 days

0000000016 100 25.03.2010 21.01.2010 +62 days

0000000017 100 30.03.2010 21.01.2010 + 67 days

0000000018 100 11.04.2010 21.01.2010 +79 days

0000000019 100 15.04.2010 21.01.2010 + 83 days

a. According to our requirement which says that only those batches which have a Remaining Shelf
Life greater than 50 days should be picked up, only batch numbers 16, 17, 18 and 19 are
relevant.

b. Besides, the quantity we need to deliver is only 250. Therefore we want that the batches with
closer expiration date but satisfying the above criteria should be the first to go.

Hence, following should be the ideal selection.

Batch Number Delivered Quantity Shelf Life Exp. Date (SLED)

0000000016 100 25.03.2010
0000000017 100 30.03.2010
0000000018 50 11.04.2010

© 2010 SAP AG 15


Now let us how is the batch determination done by SAP during delivery.

Transaction – VL01

Hence, we find that the batch determination is carried out exactly as per our requirement.

Only batches 16, 17 and 18 are picked up with quantities 100, 100 and 50 respectively.

Click on the batch determination button at the bottom to see the selection criteria used by SAP to
determine the batches.

© 2010 SAP AG 16


Click on the button „Selection Criteria‟ to see the selection criteria used by SAP.

Click on the button „Strategy Info... .‟

© 2010 SAP AG 17


3. Billing

Batch Split from the delivery is carried forward to billing.

The pricing is carried out at the batch level as shown below.

© 2010 SAP AG 18


Disclaimer and Liability Notice
This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not
supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade.
SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document,
and anyone using these methods does so at his/her own risk.
SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or
code sample, including any liability resulting from incompatibility between the content within this document and the materials and
services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this
document.

© 2010 SAP AG 19

SAP Automatic batch determination

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