Batch Management - Cost Benefit Analysis

Hello experts
My client is evaluating batch magmt in their mfg operations.The key requirement/driver is material traceability.
They would like to know what is the impact of using batch mgmt in terms of adiotional resources,transaction and maintenance as such.
Does anybody has insights/material on this.
Many thanks
Gaurav

Hi,
please mention the manufacturing products then we can decide to go for BATCH or not
some of the benefits of using Batch Management is
1. Traceablity of the material up to the end product.
2. First IN first OUT principle can be adopted.
3. Additional resources is not required.
4. storage space needed in more
5. if the company is having EXCISABLE the somewhat complicated only
Regards
Ganesh

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Kind regards
Colin.

Good day Colin.
You question is like trying to guess the next day stock qouats...
There are many parameters that combined together and not all of them are constants infact...most of them are variables.
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2.The number of system you want to integrate in your organization buisness scenarios..
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Sample of cost/benefit analysis of data warehouse

Greeting!
I am currently doing a research on data warehouse kindly give me a smple of a cost/benefit analysis.
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Good day Colin.
You question is like trying to guess the next day stock qouats...
There are many parameters that combined together and not all of them are constants infact...most of them are variables.
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If it helps you I've recently asked an ABAP programmer
how long it will take him to develope a simple File to IDoc scenario....he said that including design documents and testing Aprox. 8 days.
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Good day Colin.
You question is like trying to guess the next day stock qouats...
There are many parameters that combined together and not all of them are constants infact...most of them are variables.
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How can I do a cost / benefit analysis with new "share anything"?

I am trying to figure out the best action for my 82 year old mother. She is currently and has been on a special contract, something like 65+ plan (don't know the exact plan name). She pays $29.95/ month with 200 anytime minutes. Her current contract ends in March 2013.
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When you say her only phone will be wireless, I assume that you mean "cellular".
Is cellular her best option? What about a landline only option with a wireless phone? That way she can still carry the phone with her wherever she is within her home. If she is going to start using "much more than 200 minutes per month" only because she is giving up her current landline, I would assume that the vast majority of her calling minutes take place within her home.
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In an assisted living facility, the building "could" interfere with her ability to actually receive a cellular signal within her home. Is this going to be a problem, since it seems her current calling habits have her sending/receiving the majority of her calls within her home.
I ask these questions from experience as my 92 y/o grandmother is also living in an assisted living facility and only has a landline phone with no cellular phone. She chose to give up her cellular phone 7 yrs ago when she moved in.
These are just a few questions to consider before switching over to strictly cellular.

Cost(vprs) of free goods with batch managment

Dear Gurus,
I have a problem ahout free goods with batch management.
Cost(VPRS) is not accumulated in billing(free goods is not relevant for billing).
My configurations are shown as below:
Ordered goods (and batch) item category :zta1(copied from tan)
Free goods (and batch) item category :zann (copied from tann) pricing:B ;not relevant for billing;dermination cost:X
copy control(from delivery to billing):
ztan: accumulation cost :X
If I use the material without batch management,Cost of free goods(without batch) is accumulated to main item(ordered goods).
So, what can I do?
Thanks and Best Regards,
Lykin Kan

Hi,
These notes are useful:
SAP Note 1365939 - VPRS logic and Customizing settings in SD
SAP Note 547570 - FAQ: VPRS in pricing
If you have the problem in the transfer from SD conditions to CO-PA, check if you transfer only invoices to COPA, if you don't invoice the deliveries of free goods, then you don't transfer this 'sales' or costs of 'gifts' to COPA. You can check the customizing of COPA in tcode ORKE (IMG for COPA). SAP Note 74486 - INFO: Overview of consulting notes for CO-PA is a good summary about this issue.
I hope this helps you
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Eduardo
PD: I forgot SAP Note Number 33968 SD/CO-PA: Characteristics from sales doc tables
Edited by: E_Hinojosa on Sep 10, 2010 9:44 AM

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Specific Identification Cost for batch managed items (Follow-Up from P2P)

Specific Identification Cost method is used for serial and batch managed item. Using this method, the outbound cost of such items would be the original cost of specific goods, which can be determined according to the serial or batch number of that item.
Business One allows the user to receive batch managed items with a batch number that already exists in the DB. Its possible that the received quantity is added to on-hand quantity in the warehouse. In such case, the quantity on-hand of that batch and the received quantity may have different costs.
What should be the system behavior in such case:
1. Block receipts to the same batch with different costs.
2. Write the difference to a price difference account, as done in Standard Cost method.
3. Manage the batch cost with Moving Average method.
This thread is continuation from 'Specific Identification Cost for batch managed Items' <a href="http://p2p.sap.com/businessoneforum?type=join&login=1&uid=41FB661A76CED536C825C4E2B6FF4397&cid=91&go=z37225">discussion</a> in P2P SAP Business One Forum (Product Development Collaboration).
Previous discussion on P2P is summarized in the attached file.

Hi Peter,
This is a very important functionality that you are describing here. For example, in the Steel industry, it could be extremely useful to cost by batch or serial number.
If you receive a batch that already exists in the system and if the costing method for the product is moving average, then teh cost of the batch should be calculated based on the moving average as well.
If the costing method is standard, then the cost should go in a variance account.
If the costing method is FIFO, then it is a getting trickier...
Regards,
Vincent

VPRS cost and batch management

Hi Gurus,
Is there any link between the cost and batch management? Currently users has posted a billing document and the cost is 0. The VPRS value in the SO is correctly but it is not brought to the billing document.
We have tested and it seems that this is because the batch management checkbox is not checked in material master, so the VPRS is not generated in billing.
Please advise. Thanks.
Regards,
FY

Hi Javier,
what do you do with the VPRS in your calculation- system ?
If you need i, you delete the requirement 004 in your calculation -system.
on the other hand, you can change TANN to komp-evrwr (price determination on the item category) is 'X'. Then you have to add an 100% rabate for TANN and the resukt will be free good.
Hans

Set batch management for reasons of cost management item cannot be deleted

Discovery was made that a material should have had batch management MARC-XCHPF selected. Within that time sales orders were created as well as sales order stock. 411E movements were done to get rid of the sales order stock, and it can not be seen in MMBE. MD04 is also clear. New attempt to add batch management in the plant displayed errors - SD Documents exist (orders or deliveries) that have not yet been
processed or that have been processed only in part.
   Document   Item
   206365     000020
Attempt to remove item 20 from sales order and receive error
Message no. V1128
For reasons of cost management, item 000020 cannot be deleted.
Diagnosis
You tried to delete a sales document item for which cost management is carried out. Cost management can exist at item level for
   - make-to-order production
   - make-to-order stock
   - service contract item
Procedure
Enter a reason for rejection at item level.
I found a similar problem on the forum but not really a solution other than throwing in the towel and making new materials.

Hi
What I understand from your thread is:
You have chekced batchmanagement in
material master & after working some time you want to remove that tick mark.
First of all one should understand that for what ever reason batch management is ON, you can not reverse it .
Either activation or deactivation of batchmanagement is irreversible.
Oflat SAP had come with a note telling that how to proceed with reversal batch management.
I have gone through that note .Finally SAP wants to take consultancy with some fees to make reversal.
It is all pain ful job.
If you can do it abandom thta material & create new material.
This is the solution I can give.
Hope it is celar to you.
Regards
YMREDDY

VPRS with Free Goods and Batch Management

Dear Experts,
I have a problem on the products billing with Free Goods.
I will explain this, before the implementation of Batch Management (with batch split) the billing document show the condition VPRS on the main item (TAN) and the free goods item (TANN).
Now, when the Batch Management was up, the condition VPRS disappeared on the TANN item, I checked the order and it does shows the VPRS conditions. When i check the conditions on the billing document it shows me the following message when i check the VPRS condition
Condition ignored (requirement 004 not fulfilled)
Then I tried to debug the price determination and i realized that only on the TANN position the field komp-evrwr (price determination on the item category) is not 'X'.
Aditionally i can mention thar the batch split item category is defined as YG05.
Actually i only managed to show the cumulated VPRS cost on the main item.
Please someone say to me if this correct or there is a way to put the VPRS on the free goods item.
Javier Sandoval Vera
Ecuador

Hi Javier,
what do you do with the VPRS in your calculation- system ?
If you need i, you delete the requirement 004 in your calculation -system.
on the other hand, you can change TANN to komp-evrwr (price determination on the item category) is 'X'. Then you have to add an 100% rabate for TANN and the resukt will be free good.
Hans

Inventory Audit Report - Not followed FIFO and Batch management

I have created an Item say XYZ, with Batch management and valuation methode FIFO.
Then I have created a batch say 1 with posting of opening balance transaction with posting date as 1st April 2009.
Now when I post an A/R Invoice with posting date as 19th May 2009 in which I have selected above batch.
I have also posted some more purchase transaction for same item before 19th May 2009 that is the date of sales invoice.
Now when I see Inventory Audit Report, system has not picked up the cost column as per Batch selection in A/R Invoice, and also not as per FIFO, but it has followed the system date of transaction for deriving cost as per FIFO.
Can anybody throw light on this ?
BR
Samir Gandhi

Dear Samir Gandhi,
Irrespective of posting date you use for document posting, with FIFO Method system will arrange all the inventory posting in layers with First inventory posting will form the base for first inventory movement out and so on
Example:
1st Entry:(Opening Balances)
posting date : 01/04/09    Item : XYZ    quantity : 5   Unit cost price : 100
2nd Entry: Purchase
posting date : 01/05/09    Item : XYZ    quantity : 5   Unit cost price : 105
3rd Entry: Purchase
posting date :25/04/09    Item : XYZ    quantity : 5   Unit cost price : 90
Layers created :
1.    Item : XYZ    quantity : 5   Unit cost price : 100
2.     Item : XYZ    quantity : 5   Unit cost price : 105
3.     Item : XYZ    quantity : 5   Unit cost price : 90
4th Entry : Sales
Item : XYZ    quantity : 8
So here cost of goods sold will be : ( 5x100)+ ( 3x105) = 815
and it wont be ( 5x100)+ ( 3x90) =770 if that's what you are expecting
Regards,
Mukesh

Inventory Count for Batch Managed materials - Plant, S.Loc and Batch Wise

Hi.,
In the company's current scenario, the printing of batch managed materials are scheduled under 3 Job names.
1. First job determines the materials/batches that need to be created today using Program RM07ICN1
2. Second Job Processes the BDC Session created by Program RM07ICN1 using Program: RSBDCSUB
3. Third Job prints the Inventory tickts at the appropriate Storage location using Program: RM07IDRU
Each Job has its own variant.
The Variant for SL.No 1 is defined w.r.t
i. Material Type : Two Material types have been defined
ii. Under selection variable, GIDAT ( Planned count date and GBDAT are flagged.
Current Analysis:
A. The inventory documents get printed with Materials as per the cycle counting indicators defined which govern which material has to be currently counted.
B. Inventory documents are generated for all materials in all the plants and in all the storage locations
C. Batches for a material number may print on different cycle count documents throughout the year.
Customer requirement:
The inventory documents to print on basis of
1. Material, Plant and S.Loc.
This would help in identifying the batches which are currently being counted as well.
2. Customers requirement is to ensure that all batches are accounted for and will identify any overage of batches since in the current process, they are never reviewed as a whole.
QUESTION:
1. How to configure the Customer requriement.
2. How to configure the Variant/s, if thats the place the configuration has to be done to satisfy the customer.
3. How to activate the Variant in SE37 after definition in the Step Indicator. Does it activate on execution?
When i run the Program using SE38 , maintaining options in the Screen ( giving Material, Plant and S.loc), i get the desired list (Batches w.r.t Material,plant.S.Loc). But there is a list of over 150 Batch managed materials and it would not be physically possible to maintain the variant for each each Material,plant,S.loc wise.
Is there a way to configure the customer requirement/s.
Any and all help is much appreciated.
Thanks

Hello Mahesh,
<b>Customer requrirement is specific, they want a list of Inventory Documents to be generated on basis of Material in each Plant-S.Loc batch wise.</b>
Then you need to define multiple varinat for the program.
<b>(a) If i am giving two variants in the same Program name RM07ICN1, how to execute one after after in sequence.
In testing, I have defined in the " Step", Progran RM07ICN1 with one variant and Program RM07ICN1 with another Variant. But on execution of Program RM07ICN1 thru SE38, the screen defined latter ( second variant screen data ) is displayed.</b>
You need to define several steps in SM36 transaction for the program using each variant. SE38 you can use only to save your variant data so later you can use this variant in SM36.
Once you schedule the job with SM36 and release it then it will automatically execute this job as per your criteria (timeline)
Hope this helps.
Regards
Arif Mansuri

Batch Management (ROH) - Problem

Hi,
We have activated Batch Management for Raw Materials.
I have done the following Configurations for PP Module.
1. Maintained Batch Mngt settings in ROH in MRP2, entry "3"
2. Strategy Type in SPRO
2. Search Procedure in OPLG
3. Maintained Search procedure in OPL8
4. Maintained Condition for that ROH in COB1
Now the problem is :
We have created 4 batches with some qty.
1st Production order: The batch determination is taking place properly, and Batch 1 gets consumed.
2nd Production order: The batch determination taking place properly, but the 1st Batch which has no qty. is being seen with EMPTY Field for QTY, and the Batch No. field is GREYED (non-editable).
Question:
Why the BLANK Batch is appearing, as because of which i am getting a error in costing "Consumption account cannot be determined", Area of responsibility as FINANCIAL ACCOUNTING.
But why should the BLANK FIELD APPEAR ?
please provide valuable inputs
Thanks in advance,
Harris

Hello Brahmankar Sir,
I checked up, but since the Costing error is coming in the production order itself, hence it is not allowing for the confirmation, and is getting terminated in the confirmation stage itself.
One thing i came to know is that the BLANK field which is seen, when checked its Item Details, is showing as movement No. 531.
What can be the reason for the same ?
Requesting your kind input.
Also the batch No. for the BLANK field Line item is seen as 1.
Item Component       Qty.                                                     Batch No.                Batch
0010     R18                               EA     L     0010     0     100     1051                              1
0010     R18                  10      EA     L     0010     0     100     1051        0000000004               2
Requesting your kind inputs.
Thanks and regards,
Harris

Batch Management Level

Hi all,
Batch management drives us difficulty, all finished goods have a batch number in our system. But cause of this our system grows fastly and process management is so difficult. We think about cancelling batch management and use serial number management for product trace. But one of my friends offers me for managing batches as production order level. This means each production order (material differs) will have batch number and at trace the materials with serial number.
I want to know the effects of batch level to the system. For example it's useful to cancel batch management for system growth. Or have we use batch management at one level like production order level? For CO side, it's useful for using batches as production level or completely cancel batch management ?
Thanks,

>
techmaster wrote:
> Hi all,
> Batch management drives us difficulty, all finished goods have a batch number in our system. But cause of this our system grows fastly and process management is so difficult. We think about cancelling batch management and use serial number management for product trace. But one of my friends offers me for managing batches as production order level. This means each production order (material differs) will have batch number and at trace the materials with serial number.
>
> I want to know the effects of batch level to the system. For example it's useful to cancel batch management for system growth. Or have we use batch management at one level like production order level? For CO side, it's useful for using batches as production level or completely cancel batch management ?
>
> Thanks,
It appears that you are referirng to an organization which follows discrete manufacturing techniques, where the individual finished item needs to be uniquely identifiable, which is probably satisfied by batches. Your concern of batch numbers getting exhausted is pertitent, given the limitation of 10 character for the batch number.
If I try to compare the pros and cons of serial numbers vis a vis batch numbers, here are the points
- Batch numbers have the obvious limitation of 10 characters, serial numbers allow 18
- Batches are normally used in process industry (pharma, food etc), serial numbers are linked to equipments, and have the functionality to check the status at the client level (within which plant/sloc, with customer etc)
- Tracing the history of a serial number becomes easier (particularly useful in case of customer returns / repairs)
- Serial numbers are unique, you can have multiple units of a particular batch.
About the question of getting rid of batches altogether, I feel that when serial numbers are present, batches will only lead to additional entry in all movements. Moreover, they will only be redundant, unless you plan to group a few items (serial numbers) into a single batch.
From the CO side, I feel that the production order is the CO object, and hence all costs are accumulated against the order. I do not think having a batch will help from the CO perspective.
Regards,
Aroop

Batch Management - Cost Benefit Analysis

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