Carrying out the Procurement of Batch Material

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.

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.

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.

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.

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.

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 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 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.