Batch Split Warning

Article Type: Tips & Tricks

Product AREA: Beas Manufacturing

TOPIC / SYSTEM AREA : Material Management

System Functionality: Inventory management

1.1. Tags

Item, Batch, Valuation method, Serial/Batch

1.2. Notes

The Beas batch split calculates the new batch price as below.

Master data:

Item valuation method = Serial/Batch, Standard Cost and FIFO.  

Example of SAP Goods Receipts transactions for Item1 with Batch/Serial valuation method:
Receipt of 10 pcs Item1 Batch1 at price 10 --> Current stock 10 and Current Value = 100

(Batch1 Valuation)
Receipt of 10 pcs Item1 Batch2 at price 5 --> Current stock 20 and Current Value= 150

(100 Batch1 valuation) + (50 Batch2 valuation)
 
When you work with the Beas batch split, Beas is asking SAP to post a Goods Issue document and by default SAP will use the Batch/Serial valuation criteria you have on the item. So assuming you're now splitting Item1 batch1 to Item1 batch3 for 5 pieces, you will have the following:

issue of 5 pieces for Item1 Batch1 with a price of 10 (SAP default price for Serial/Batch valuation of the item that you cannot change). 
 
In this moment, you have the current stock situation:
5 units Item1 Batch1 at a price of 10 = 50
10 units Item1 Batch2 at a price of 5 = 50
 
This gives you a total stock of 15 pieces and a total value of 100. This is the information Beas will use for calculating the moving average price and place on the Goods Receipt document (100 / 15 = 6,67). So the Goods receipt for Item1 batch3 of the batch split transaction will be performed by Beas with a unit price of 6,67.