What is the importance of SAP Batch Management? Why do businesses do that?

And
where it is required?
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.
All the materials (in house or external) are identifies through batch during goods receipt and
goods issue.
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.
Batch Management
Batch Management can be used in all industries. It is mainly used in the following:
- Chemicals
- Pharmaceuticals
- Cosmetics
- Health Care
- Foodstuffs
- Retail
- Aerospace
- Mill Products
- Mining
Batch Management incorporates the entire logistics process, from procurement to sales. The new
functionality works with all existing batch records. It is closely linked with classification, but
can also be used without classification. You can only search for batches via the batch
determination function if the batches are classified. In a process manufacturing environment,
production is usually executed in batches. In addition, many materials entering the process are
managed separately in batch stocks with different specifications.
Batch - 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 subset of the total
quantity of a material held in stock. The subset is managed from all other subsets of the same
material.

Depending on the plant, material and operational levels we can choose the level at which you
want the batch number to be unique. The material number is unique at the client level. However,
the uniqueness of the batch number can be defined at the following levels:
- In combination with the material and plant
- In combination with a material number
- At the client level
If the Batch level is set to Plant/Material in your system, the following applies:
- The batch number can be reassigned for a material with a different specification in each plant.
However, you can transfer a stock from one plant to another between batches with the same
number, even though the batches do not necessarily have the same specification. In such cases,
the batch quantity transferred assumes the specification of the destination batch.
If you want the batch specification to be unique across all plants, you can only achieve this
through organizational measures. The system does not support this. In this case, you are
recommended to switch to a higher batch level.
If the Batch level is set to Material in your system, the following applies:
- A batch has the same specification for all plants at which a material is stored.
- The same batch number can be reassigned with a different specification for each material.
If the Batch level is set to Client in the system:
- The same batch number can only be assigned once within the entire client.
- It is uniquely assigned to one material number.

Config Setting In Batch Management

This will help you for config setting:
Logistics general - Batch Management
1.1. Specify Batch Level
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Specify batch
level and activate batch status management Transaction OMCT
1.2. Batch Number - Activate Internal Number Assignment
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Number
Assignment --> Activate internal batch number assignment Transaction OMCZ
1.3. Batch Creation - for Goods Movements
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Creation of new
batches --> Define batch creation for goods movements Transaction
1.4. Characteristic Value Assignment -- Update Standard Characteristics
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Characteristic
Value Assignment --> Update Standard Characteristics Transaction
1.5. Activate Batch Classification for Goods Movements in Inventory Management
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Characteristic
Value Assignment --> Valuation for goods movements --> Activate Batch Classification for
goods movements in Inventory Management Transaction OMCV
1.6. Batch Determination Condition Table(Cross Client)
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Condition Tables --> Define production order condition tables
Transaction OPLB
1.7. Batch Determination Condition Table(Cross Client)
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Condition Tables --> Define SD condition Tables Transaction
V/C7
1.8. Batch Determination Access Sequence(Cross Client)
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Access Sequences --> Define Production Order Access
Sequences Transaction OPLF
1.9. Batch Determination Access Sequence(Cross Client)
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch

Determination & Batch Check --> Access Sequences --> Define SD Access Sequences
Transaction V/C2
1.10. Batch Determination Strategy Types
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Define Production Order Strategy Types Transaction OPLE
1.11. Batch Determination Strategy Types
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Define SD Strategy Types Transaction V/C1
1.12. Batch Determination Batch Search Procedure
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Define IM Search Procedure Transaction OMCY
1.13. Batch Determination Batch Search Procedure
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Define Production order Search Procedure Transaction OPLG
1.14. Batch Determination Batch Search Procedure
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Define SD Search Procedure Transaction V/C3
1.15. Batch Determination Batch Search Procedure Allocation
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Allocate IM search procedure/activate check Transaction
OMCG
1.16. Batch Determination Batch Search Procedure Allocation
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Assign Search procedure to production order Transaction
OPL8
1.17. Batch Determination Batch Search Procedure Allocation(SD)
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Allocate SD Search procedure Transaction V/C5
1.18. Batch Determination Activate Automatic Batch Determination(SD)
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Activate Automatic Batch Determination in SD -->For
delivery item categories Transaction V/CL
1.19. Batch Determination Batch Selection Class
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Define Selection Classes Transaction CL01

1.20. Batch Determination Sort Rule

Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch
Determination & Batch Check --> Define Sort Rules Transaction CU70
1.21. Batch Determination Make Settings for Batch Where-used list
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Make Settings
for Batch Where-used list Transaction OMBB
*-- Vijay Mundke