Outlining Procurement of Direct Materials
Exploring Direct Procurement with Inbound Delivery
Using Complementary Procurement Functions
Using Automated Invoice Settlement

Carrying out the Procurement of Batch Material

Objective

After completing this lesson, you will be able to carry out the procurement of Batch Material

Features of the Procurement of Batch Materials

Procurement of Batch-managed Materials

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 partial quantity of a material managed separately from other partial quantities of the same material in the stock.

Watch the following video to learn how to procure batch-managed materials in SAP S/4HANA Cloud.

Materials that require precise identification, such as pharmaceutical products, are identified and managed in stock according to the material and batch numbers.

In many industries, particularly process industries, it is necessary to work consistently with homogeneous partial quantities of a material or product throughout the logistic quantity and value chain.

Batch management covers the entire logistics process, from procurement to sales. Batch management is very closely linked to inventory management. Batch management enables you to manage stock at a level below the storage location. When you move a stock quantity of a batch-managed material, you must always enter the corresponding batch number.

In SAP S/4HANA Cloud, a batch with its number and properties is unique for a particular material across all plants where the material is managed. However, the same batch number can be reassigned to different materials with different specifications.

Material Master Record for Batch Managed Materials

If a material is to be managed in batches, you must set the corresponding indicator in the material master record in either the Purchasing, Work Scheduling, or General Plant Data / Storage view.

The following figure shows an example of a material with a batch management indicator.

You can set the batch indicator for material using the purchasing view on the material master record

The plant key field is only relevant if the batch level is defined on the plant level. The batch number is unique for the plant level in combination with a material and a plant.

Streamlined Procurement Process - Create Purchase Order

The simplified procurement process begins with manually creating a purchase order.

Using the Manage Purchase Orders (F0842A) app, you can create purchase orders manually for batch-managed materials.

The system automatically creates and assigns the batch number during purchase order creation using the Manage Purchase Orders app.

You can maintain the batch number for the purchase order on the item level for the material under the General Information. When creating the purchase order, you can choose Create for the system to create a new batch number for the ordered material. If you want to order the material with an existing batch for the material, you can also select an existing batch number (which belongs to the same material). Then, it will be added to the same set of materials under the same batch number. You can also maintain an external batch number from the supplier. If you don't assign the batch during purchase order creation, you can assign the batch number while posting the goods receipt. While posting the goods receipt, the system automatically takes over the internal batch number assigned with purchase order creation.

Streamlined Procurement Process - Post Goods Receipt

You can post the goods receipt with reference to a purchase order using the Post Goods Receipt for Purchasing Document (F0843) app.

If you have maintained the internal batch number during purchase order creation, the system will take over the batch number already assigned with purchase order creation. Otherwise, the system will create automatically (you see the Auto-Create on the batch field) once you post the goods receipt. If you want to use an existing batch and assign the newly purchased material to the existing batch, then you can select an existing batch for this material using ​input help​ in the batch field.

You can open the item and also maintain the external batch number from the supplier. Using the Maintain Batch, it is also possible to use an external app to maintain the batch.

The system assigns the batch number automatically while posting the goods receipt.

Note

If the delivered pieces were to be split into several batches such as in this example, 30 and 40, you could split the goods receipt item accordingly. To do this, choose the indicator ╇ in the Distribution column at the item level.

The quantity is posted to the warehouse as a result of the goods receipt posting.

You can display the stock per batch using the Display Stock Overview app. You can select the batch number to see the stock details. If you open Batch Classification, you can see details, including the external batch number maintained.

You can display the stock overview per batch and navigate to more information about the stock for the material

Streamlined Procurement Process - Create Supplier Invoice

You use the Create Supplier Invoice (F0859) app to enter manually and post a supplier invoice related to a purchase order.

The system proposes all items corresponding to the referenced purchase order in the item list. The system proposes the quantities and amounts of all items for which goods receipts were posted but not fully invoiced.

If necessary, change the proposed data according to the received supplier invoice. The system compares the supplier invoice data with the related purchase order data. If the deviation is outside defined tolerances, the invoice is posted but automatically blocked for payment.

Create supplier invoice referenced to the purchase order using the Create Supplier Invoice app

Create Purchase Order for Batch Management Material

Note

To execute this exercise, assign the business roles BR_PURCHASER, BR_AP_ACCOUNTANT, and BR_WAREHOUSE_CLERK to your user. You can maintain roles for your user using the Default Space→Maintain Business Users app.

You can add the tiles for the required apps for the exercises to your favorites on the launchpad using My Home→Apps→Add Apps. Alternatively, you can add them to theDefault Page using Default Space→Add Tile. When you open the app, for some apps, a link on the upper right corner of the screen is available so that you can add the corresponding tile to the desired page. For this, select the arrow icon to open the drop-down, choose ​Save as Tile​ , and select the ​Page​ to place the tile (E.g. ​, My Home to add to favorites).

Some steps of this exercise use the characters ### as a placeholder for the number in your user A010###. Whenever you see ### in the exercise step, replace it with your user number. You can check your user by displaying your user profile on the SAP Fiori launchpad. To do so, choose the Profile icon on the screen's upper right corner. The characters XXX is used as a place holder for Purchasing Group that you created in the first exercise. Whenever you see XXX in the exercise step, replace it with your purchasing group.

In this exercise, you create a purchase order for batch managed material manually. The purchase order is automatically approved. After that, you post goods receipt for material against purchase order. During post goods receipt you will assign the batch for the received items. In the last step, you will create the supplier invoice for the purchase order.

Steps

  1. In the role of a purchaser, create a purchase order for batch-managed material using the Manage Purchase Order app. For your entries, use the data in the table provided and note down your purchase order number ______________________________________________________.

    FieldValue
    Supplier10300001
    CurrencyEUR
    Purchasing GroupXXX
    Purchasing Organization1010
    Company Code1010
    MaterialTG21
    Order Quantity20 PC
    Net Price13
    Plant1010
    Tax CodeV1 Input Tax (Full Tax Rate)
    Storage Location101A
    Goods-Receipt-Based Invoice Verificationselected
    Invoice Receiptselected

    1. Log on to the system to open the SAP Fiori launchpad.

    2. Start the Manage Purchase Orders app.

    3. Choose Create.

    4. Under the General Information section for Basic Data, enter 10300001 as the Supplier and press Enter. The parameters Currency, Purchasing Organization, and Company Code are filled in automatically with the values in the table. If not, fill in the values using the data provided in the table.

    5. Enter your purchasing group XXX as Purchasing Group.

    6. In the Items section, choose Create.

    7. Enter TG21 as the Material and press Enter.

    8. Enter 1010 as the Plant, 20 PC as the Order Quantity, and 13 as Net Price.

    9. Choose the arrow on the item line to view the details.

    10. Under General Information, enter 101A as the Storage Location.

    11. In the item section, choose the Process Flow tab. Ensure Invoice Receipt and Goods-Receipt-Based Invoice Verification are selected.

    12. Under the Tax section, you see that the system has set V1 Input Tax (Full Tax Rate) as the Tax Code. If not, set the tax code.

    13. Choose Apply.

      Result

      The system takes you back to the Purchase Order page.

    14. Choose Order in the lower-right corner of the screen.

      Result

      The system displays the purchase order.

    15. Note down the purchase order number displayed in the upper-left corner of the screen.

    16. Choose General Information to verify the approval status.

      Result

      You should see Approved automatically as the Approval Status.

      Note

      You may need to wait some seconds and refresh the page to see that the purchase order status has been set to approved.

    17. Choose SAP to go back to the SAP Fiori launchpad.

  2. Now, in the role of a warehouse clerk, post the goods receipt for the material TG21 against purchase order you have created.

    1. Start the Post Goods Movement app.

    2. Keep Goods Receipt and Purchase Order selected.

    3. If not already set, select101 goods receipt for purchase order into warehouse/stores as the Goods Movement Type and choose OK.

      FieldValue
      Purchase OrderPurchase order number that you noted down
      BatchBCH00###
      Storage Location101A
      Date of ManufactureToday’s Date

      Result

      After selection, you see GR goods receipt as the label and 101 as value.

    4. If the system prompts the "Change to Default Values" tip, choose Continue.

    5. Enter the purchase order number that you have noted down as the Purchase Order and press Enter.

      Result

      The system displays the details of the purchase order.

    6. Choose the Quantity tab and verify the quantity.

    7. Choose the Where tab and verify the storage location as 101A.

    8. Choose the Batch tab and enter BCH00### replacing ### with your user number, as batch number.

    9. Select today's date as Date of Manufacture and choose Continue.

    10. Select the Item OK checkbox.

      If the checkbox is not visible scroll down to select it.

    11. Choose Check. The system displays the message Document is O.K. on the lower ribbon.

    12. Choose Post.

      Result

      The successful message is displayed in the lower-left ribbon.

    13. Choose Exit to go back to the SAP Fiori launchpad.

  3. Create the supplier invoice with reference to the purchase order. Use the data in the following table to maintain the Basic Data.

    FieldValue
    TransactionInvoice
    Company Code1010
    Invoicing Party10300001
    ReferenceINV-BMP-###
    Invoice DateToday’s Date
    Posting DateToday’s Date

    1. Start the Create Supplier Invoice app.

    2. Under Basic Data, keep Invoice as the Transaction.

    3. Enter 1010 as the Company Code and confirm the system warning about data loss.

    4. Choose today’s date as the Invoice Date and the Posting Date.

    5. Enter INV-BMP-### as the Reference.

    6. Choose the Purchasing Document References tab.

    7. Enter your purchase order number as the Purchase Order under Purchasing Document References and press Enter to confirm.

    8. Keep the checkbox for the item selected.

    9. Verify that 10300001 set as the Invoicing Party.

    10. Enter the value that is displayed as a negative balance as the Gross Invoice Amount in Basic Data.

      Note

      The Gross Invoice Amount in practice is the invoice amount from the supplier invoice. In the next step, the system would compare this amount and the amount that is in the referenced purchase order.

    11. Choose Check.

      Result

      There should be no differences in the amount value under balance. Close the system message dialog box if the system displays any info or warning other than a balance error.

    12. Choose Simulate.

    13. Choose Post.

    14. Choose No to the creation of a new invoice message. The system takes you back to the SAP Fiori launchpad.

Learning

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