Batches are used to enhance product characteristics; to define quality attributes of a product; and to trace products by production date, expiration date, status, specific characteristics, and so on.
Batch management is a regulation and compliance process in certain industries. Quality control is an essential process, and it is made easier with batch management. Defect management is another area where batch management plays a vital role. A defective product is easily tracked in inventory management and warehouse management if the product is batch managed. Batches are created through inbound processing and changes to batch master data can be made in embedded EWM. Changes are updated in the batch master record in SAP S/4HANA through qRFC. Material management, sales and distribution, and warehouse management functions track materials with unique batch master records. Materials management creates, tracks, and stores batch stock of materials. Meanwhile, the warehouse management function is used to search for specific stock of materials in the warehouse.
Let’s dive deep into the batch management process in embedded EWM and its integration with SAP S/4HANA materials management.
Batch management offers precision in tracing a particular lot of products. A lot can be produced in house or procured externally; batch management makes it easier to manage stocks in warehouse management and inventory management. A batch is always linked to a specific lot of a specific product.
As a prerequisite, the material master record in SAP S/4HANA must have batch management active to manage materials in batches. If any batch characteristics change, the system creates a new batch number for that lot. A batch is defined by the following main attributes:
You can define additional attributes for batches in terms of characteristics. SAP provides a class for batch management, and you can configure batch characteristics using the batch class based on the business requirements.
In embedded EWM, the batch management process starts with the creation of batches. Batches are created during the inbound processing automatically based on settings in embedded EWM. Batches can be changed in embedded EWM. Batches are created either during inbound delivery processing or using Transaction MSC1N (Create Batch). Batch data attributes such as production date, expiration date, country of origin, batch status (restricted/non restricted), supplier’s batch number or inhouse production batch number, and other characteristics are captured and adopted from the inbound delivery. SAP S/4HANA transfers these attributes to embedded EWM via inbound delivery. Once the inbound delivery is replicated to EWM, batch master record creation can be initiated manually from the inbound delivery using Transaction /SCWM/PRDI, and you can add additional batch details while creating the batch. The system can automatically create the batch using inbound delivery item characteristics. All the attributes available in the inbound delivery item are copied over to the batch record.
On the outbound delivery processing side, the system will initiate picking of the right batch of the right products as per the delivery request. The outbound delivery is created in SAP S/4HANA with reference to a stock transfer order, sales order, and so on. The outbound delivery will have the attributes for picking, packing, and goods issue of products from the warehouse. Batch determination criteria are part of the outbound deliveries. Once the outbound deliveries are replicated from SAP S/4HANA to embedded EWM, an outbound delivery order (warehouse request) is created, and the batch determination criteria are replicated along with the outbound delivery. Based on the batch determination criteria, a relevant batch of the product is determined for picking/stock removal. You can directly enter batches in the outbound delivery, and the system will search for the batch in the warehouse. The warehouse task is created with the storage type, storage section, and storage bin information to pick the batches. The warehouse personnel pick the batches and confirm the warehouse task for picking.
The following are the prerequisites and basic configuration settings in SAP S/4HANA and embedded EWM systems for batch management.
In SAP S/4HANA, batches can be activated at the client level, plant level, and material level as a prerequisite. Best practice is to create and maintain the batch at the material level. For embedded EWM, the batch level must be activated at either the material level or client level. Activating batching at the plant level is not supported in embedded EWM. During the goods receipt of the materials for the first time into inventory, a batch number will be created with the production date, expiration date, and other attributes. You can change the batches in embedded EWM.
To arrive at this SAP S/4HANA configuration step to activate the batch level, execute Transaction SPRO and navigate to Logistics—General > Batch Management > Specify Batch Level and Activate Status Management.
This figure shows that the batch level has been activated at the material level.
This is another prerequisite step and an SAP S/4HANA configuration step. In this configuration, you can activate the internal number range for batches.
To arrive at this SAP S/4HANA configuration step, execute Transaction SPRO and navigate to Logistics—General > Batch Management > Batch Number > Activate Internal Batch Number Assignment.
The figure below shows that the internal batch number assignment is activated for batch master creation.
This is an integration configuration in SAP S/4HANA. In this configuration step, enable the batch determination feature in embedded EWM for the SAP S/4HANA-defined warehouse number that is linked to the embedded EWM warehouse number. When you enable this feature, the batch determination criteria will be passed over to embedded EWM through outbound delivery replication. Embedded EWM uses the search criteria to determine the relevant batch of the requested material to fulfill outbound delivery.
To arrive at this SAP S/4HANA configuration step to activate batch determination in embedded EWM, execute Transaction SPRO and navigate to Integration with Other SAP Components > Extended Warehouse Management > Basic Settings for EWM Linkage > Configure SAP EWM-Specific Parameters.
All embedded EWM warehouse numbers are listed in this configuration by default. Directly make the batch management settings here. The next figure shows that SAP S/4HANA warehouse number MJ0 has been enabled for embedded EWM, and the BatchDetEW (batch determination in EWM) indicator was set.
With this setup, there will be no batch determination happening in SAP S/4HANA. Instead, it happens in embedded EWM.
Inbound batch management involves the creation of batch master data using a supplier’s (external) batch number or an internal batch number if the supplier is not sending batch details. The inbound process in embedded EWM starts after the inbound delivery is replicated and a warehouse request for inbound processing is created. Batches for the products received from an external supplier or from an in-house production process are created using the attributes of the inbound delivery. A batch number can be created manually, can be initiated from the inbound delivery in embedded EWM, or the system can use the attributes of the inbound delivery item and create a batch. The batch numbers are centrally managed and inventory management and warehouse management will be in sync.
The next figure shows the inbound delivery process for external procurement with batch movements in warehouse management and inventory management. It involves process steps in SAP S/4HANA and embedded EWM. Inbound delivery processing steps have been explained previously.
The creation of a batch happens in embedded EWM during the inbound delivery processing, and it automatically updates the batch details in the inbound delivery if no external batch number exists in the inbound delivery. If a supplier sends an external batch number, you can create the same batch number during inbound delivery processing. The batch number will have all the attributes that are part of the inbound delivery, and you can enrich the batch by adding additional characteristics.
Let’s walk through the settings in embedded EWM that are necessary for batch management in inbound deliveries.
In this configuration step, define the batch management and shelf-life expiration data check for inbound delivery and outbound delivery processing. This configuration settings for batch management are made with reference to a combination of document category, embedded EWM warehouse number, document type, and item type in embedded EWM for the warehouse request.
To define settings for delivery, execute Transaction SPRO and navigate to SCM Extended Warehouse Management > Extended Warehouse Management > Cross-Process Settings > Batch Management > Define Setting for Delivery—Warehouse Request.
The next figure shows the SLED check and batch management settings for the inbound delivery warehouse request for embedded EWM warehouse number MJ00, document category PDI (inbound delivery), item type IDLV (standard inbound delivery item), and document type INB (standard inbound delivery). The following are the key fields of this configuration:
Outbound batch management involves picking batch stock from the warehouse based on the outbound delivery item details and the search criteria defined in the outbound delivery. The outbound delivery is created in SAP S/4HANA with reference to a sales order or stock transfer order to ship the goods to a customer or a receiving plant. The outbound delivery is replicated to embedded EWM and creates an outbound delivery order (warehouse request). The outbound delivery order has the attributes for picking, packing, and goods issue of products from the warehouse. Batch determination criteria are part of the outbound deliveries and are replicated along with the outbound delivery into embedded EWM. Based on the batch determination criteria, a relevant batch of the product is determined for picking/stock removal.
The outbound delivery process is applicable for customer sales orders and stock transfer orders. The next figure shows the outbound delivery process for a sales order with batch movements in warehouse management in embedded EWM and inventory management in SAP S/4HANA. The outbound delivery processing steps in both embedded EWM and SAP S/4HANA have been explained previously.
Unlike inbound delivery processing, there is no batch creation in the outbound delivery processing. The warehouse task created for picking/stock removal contains the source storage area details, and the source storage type, storage section, and storage bins are determined based on the batch determination criteria. Once the batch stock is picked and the warehouse task is confirmed, there will be an automated update to the outbound delivery in SAP S/4HANA through qRFC. The outbound delivery in SAP S/4HANA is updated with the batch number details based on warehouse task confirmation.
Let’s walk through the settings in embedded EWM that are necessary for batch management in outbound deliveries.
In this configuration step, define the batch management and SLED check for outbound delivery processing. This configuration settings for batch management are made with reference to a combination of document category, embedded EWM warehouse number, document type, and item type in embedded EWM for the warehouse request.
To define settings for delivery, execute Transaction SPRO and navigate to SCM Extended Warehouse Management > Extended Warehouse Management > Cross-Process Settings > Batch Management > Define Setting for Delivery—Warehouse Request.
The next figure shows the SLED check and batch management settings for an outbound delivery warehouse request for embedded EWM warehouse number MJ00, document category PDO (outbound delivery), item type ODLV (standard outbound delivery item), and document type OUTB (standard outbound delivery).
For outbound deliveries, you only need to configure the Sel. Criteria field. If you set this field to Check, it checks the selection characteristics of the outbound delivery item against the batch characteristics.
Editor’s note: This post has been adapted from a section of the book Integrating Materials Management in SAP S/4HANA by Murthy KP. Murthy is a senior manager at Deloitte with a focus on supply chain and intelligent spend management. He has more than 16 years of SAP experience delivering complex supply chain transformation projects enabled by SAP S/4HANA and SAP Ariba.
This post was originally published 9/2025.