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Batch Management GI with FIFO FEFO Strategies 1672946325

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Academic year: 2017/2018

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BATCH MANAGEMENT (GOODS ISSUE BY FIFO & FEFO STRATEGY)

Q- What is batch management?

➢ Batch management can be defined as tagging an alphanumeric or numeric code to the material produced or procured by their unique characteristics. ➢ 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.

Q- What is batch?

➢ A ‘batch’ is the quantity of material produced in a run of production. It represents a homogenous unit with unique specifications and is a subset of the total quantity of material held in stock which managed separately from the other subset of the same material. ➢ all the materials (in house or external) are identifies through batch during goods receipt and goods issue.

Q- Why there is a necessity to handle Material in a batches?

➢ 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.

We can maintain batches at 3 levels.

  1. Plant Level: - At a plant level, batch number is unique for a material inside a plant only. The same batch number can be generated at another plant under the same company, though these batches are not the same. If we trying to do plant to plant stock transfer then plant level batch numbering is not suitable.
  2. Client Level: - At this level batch number is unique for the entire client, means same batch no will not be generated for different plant under the same company code.
  3. Material Level: - At this level batch number will be unique at the material level only so different materials have same batch number.

SAP HIGHLY RECOMMENDS TO MAINTAIN THE BATCH NUMBER AT MATERIAL LEVEL ONLY.

Here we will see how batches will create and how we can issue the material by using FIFO & FEFO strategies.

STEP 1 : CREATE CHARACTERISTICS ( CT04) :

For the strategies FIFO & FEFO we are going to use MCH1 Table which is for batch management.

Characteristics Table Name Field Name PBBATCH_MFGDATE MCH1 HSDAT PBBATCH_SLED MCH1 VFDAT PBBATCH_LASTGRDATE MCH1 LWEDT PBBATCH_STATUSKEY1 - -

As per the above I have created characteristics for the batch management.

I. Characteristics for Manufacturing date- PBBATCH_MFGDATE

II. Characteristics for Shelf Life Expiration date- PBBATCH_SLED

III. Characteristics for Last goods receipt date- PBBATCH_LASTGRDATE

Now maintain the plant at which batch management is active.

STEP-3 CREATE CONDITION TABLE (OMA3)

Path- Spro>Logistics General>Batch Management> Batch Determination and Batch Check> Condition Tables> Define Inventory Management Condition Tables

We can create by selecting various fields from the field catalog.

My condition table is 024

STEP-4 CREATE ACCESS SEQUENCE AND ASSIGN CONDITION TABLE TO ACCESS SEQUENCE.

Path- Spro>Logistics General>Batch Management> Batch Determination and Batch Check> Access Sequences> Define Inventory Management Access Sequences

STEP-5 DEFINE STRATEGY TYPE AND ASSIGN ACCESS SEQUENCE TO IT.

Path- Spro>Logistics General>Batch Management> Batch Determination and Batch Check> Strategy Types> Define Inventory Management Strategy Types

Here we are defining strategy type for batch management in inventory management.

STEP- 6 DEFINE BATCH SEARCH PROCEDURE AND ASSIGN STRATEGY TO TO BATCH SEARCH

PROCEDURE.

Path- Spro>Logistics General>Batch Management> Batch Determination and Batch Check> Batch Search Procedure Definition> Define Inventory Management Search Procedure

STEP-7 ALLOCATE IM SEARCH PROCEDURE/ACTIVATE CHECK (OMCG)

Path- Spro>Logistics General>Batch Management> Batch Determination and Batch Check> Batch Search Procedure Allocation and Check Activation> Allocate IM Search Procedure/Activate Check

Class will be assigning later once we define the class in next steps

Assign above class to strategy type that define earlier.

STEP- 9 DEFINE SORT RULE (CU72)

Path- Spro>Logistics General>Batch Management> Batch Determination and Batch Check>Define Sort Rule.

Here I have created Two sort rule one is for FIFO & another one is FEFO

A. FIFO- Assign PBBATCH_LASTGRDATE characteristic to it so that system will detect

Last GR date and accordingly batch will get issued.

B. FEFO- Assign PBBATCH_SLED characteristics to it so that system will detect expiration date and accordingly batch will get issued.

STEP-10 SET EXPIRATION DATE CHECK

Path- Spro>Logistics General>Batch Management> Shelf Life Expiration Date (SLED)> Set Expiration Date Check

Set expiration date check for Plant and movement type.

STEP 11- CREATE MATERIALS WHICH IS BATCH MANAGED.

I have created 2 Materials

  1. BATCH-PB1: For FIFO strategy

Also maintain minimum shelf life and total shelf life in plant data/storage date 1 view

Same for material BATCH-PB 2) BATCH-PB2: For FEFO strategy-

STEP-12 MAINTAIN CONDITION RECORD (MBC1)

Here we are maintaining condition records for the condition table i 024

Movement type (201)- Plant (PB01)- Material (BATCH-PB1)

Maintain class in classification view Tick batch management inplant data 1

STEP-13 SCENARIO 1- GOODS ISSUE TO COST CENTER BY FIFO STRATEGY.

1stly do the good receipt for the BATCH-PB1.

I did it using movement type 501 i. goods receipt without purchase order.

Received the material two times with two different posting dates so that those material which we received earlier will get first preference while issuing the same.

Posting date on 1st goods receipt

System will assign batch no as per the number range when we enter the manufacturing date (click on check to get batch no.

2 nd goods receipt for BATCH-PB

Posting date on 2nd goods receipt

System will assign batch no as per the number range when we enter the manufacturing date (click on check to get batch no.

When we enter the date of manufacture system will automatically detect the date of expiry that we maintain in the material master.

Click to get strategy analysis

Here we can see 3 batches that we received and system suggesting me Goods will issued from batch no 16 as in characteristics sorting this batch was received on 28.11.

STEP-13 SCENARIO 2- GOODS ISSUE TO COST CENTER BY FEFO STRATEGY.

1stly do the good receipt for the BATCH-PB2.

I did it using movement type 501 i. goods receipt without purchase order.

Received the material two times with different date of manufacture so that those batch with early expiration date will get issued first.

Now Let’s analyse system will suggest which batch while goods receipt and our strategy working or not.

1 st Goods receipt with date of manufacture and SLED

2 nd Goods receipt with date of manufacture and SLED

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Batch Management GI with FIFO FEFO Strategies 1672946325

Course: Mechanical Engineering Design (MENG 4380)

University: West Texas A&M University

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Prakash Bhangare (bhangareprakash11@gmail.com)
BATCH MANAGEMENT (GOODS ISSUE BY FIFO & FEFO STRATEGY)
Q- What is batch management?
➢ Batch management can be defined as tagging an alphanumeric or numeric code to the
material produced or procured by their unique characteristics.
➢
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.
Q- What is batch?
➢ A ‘batch’ is the quantity of material produced in a run of production. It represents a
homogenous unit with unique specifications and is a subset of the total quantity of material
held in stock which managed separately from the other subset of the same material.
➢ all the materials (in house or external) are identifies through batch during goods receipt and
goods issue.
Q- Why there is a necessity to handle Material in a batches?
➢ 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.
We can maintain batches at 3 levels.
1) Plant Level: - At a plant level, batch number is unique for a material inside a plant only. The
same batch number can be generated at another plant under the same company, though
these batches are not the same. If we trying to do plant to plant stock transfer then plant
level batch numbering is not suitable.
2) Client Level: - At this level batch number is unique for the entire client, means same batch
no will not be generated for different plant under the same company code.
3) Material Level: - At this level batch number will be unique at the material level only so
different materials have same batch number.
SAP HIGHLY RECOMMENDS TO MAINTAIN THE BATCH NUMBER AT MATERIAL LEVEL ONLY.
Here we will see how batches will create and how we can issue the material by using FIFO & FEFO
strategies.
STEP 1 : CREATE CHARACTERISTICS ( CT04) :
For the strategies FIFO & FEFO we are going to use MCH1 Table which is for batch management.

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