It is maintained in MM record.

Batch can be activated in MM 3 views:

Standard SAP will come with Materail Level Batch setting
1) While creating Production Order Or during Order realease:
Batch no, when realsing the Order:
Save it and assign it to the header FERT in WS view.

Save it.

With this setting the System will create Batch during PO creation.
Cler the field Substitute Scheduler:

Save it and
Now Batch formation will happen at Order realse.
MSC3N -

Max no of digitsallowed in batch is 10 andvendor Batch no is max 15 digts.

1) Create Charatistic CT04
Creating one more characterstic color:
Save it.
Creating one more Characterstic:
In standard SAP Batch Class Type is 23.
Now we will assign this class to MM in classification view.
Save it.

Now we will go to MM in Classifiction view.

Enter and then give the Class system will fetch charcterstic automatically.
Now we will create Batch.
Enter.
For reference Characteristic no need to give values it will be automatically picked up from the table.
Now dont give any values andgo to Additional Data.
Now we will test this and assign this to the class.
Now we will create new batch.
Now we will see standard charcterstic:
System will claculate the Expiery date.
This is maintained in General Plant Data / Storage 1 view
Checking the Expire date characterstic:
The moment we enter the date of manufacturing system will automatically calculate Expire date
SLED/BBD.; Self life expiery date or best before date.
Make a FERT and Raw and packing maerial with Classification view.
Then make a Bom and routing.
Now we will make condition table
Select the criteria which you want:
Now we will create the Acess Sequence:
 Now check the fields:

Now we will create Strategy Type:

Now we will define Batch Search Procedure:
Now this search procedure is assigned to the Production Order:
Now we will do the las steps we will assigne the selection Procedure to the Plant and rder type
combination.
Save it.
Now we will create all the Master Data Selection Class and the Sort Rule:
We will create Selection Class:
CL01
Similary we will create for Packing material with FIFO characterstic:

Now we will create a Sort Rule:

CU70
Simlarly we will do it for packing materail:
Now to use this batch management we will assign this Selection Class to Material classification
View:

For both packing and FERT material:

Now the final steps is to create Startegy Record:

Save It.
Same we will have to do it for Packing material and Save it.
 Now its done we will test our setting for batch management for this we will be needing some
Stock:

We will get two Batches

Same we will do will FERT to get the stock and note down the batch no.
Now we will enter Expiery date to test the batch selection:

MSC2N

This is for FERT SLED/ BBD

Thus give the expiery dates for the 4 batches for the two materials.
This is for VERT : GR Date

Thus when we will do Batch Detwerminnation the system will choose the batch as per FEFO our
condition.
Now we will create a Production Order to test the Batch Determination:

CO01
For Header Material we will be creating a Batch
Save the PO.
GO to the change mode to check for the components selected:
Now we will do the Batch Determination for the respective material:
Batch Determination can be automated for during Realease with the data in MRP2 View.
Save it we will have to maintain this for FER , VERT and header materials.