Your company manufactures materials whose specifications differ for each manufacturing process.

 You have to use batch management in SAP S/4HANA to be able to track and use the information about materials whose specifications differ for each manufacturing process in all areas of logistics. Batch management is a function that allows you to manage materials that are produced or procured in batches, where each batch has a unique identifier and can have different characteristics or specifications. With batch management, you can:

Define the batch characteristics and specifications for each material, such as color, potency, or shelf life.

Assign a batch number to each batch of material and record the batch characteristics and specifications in the batch master record.

Use the batch number as a key for tracking and tracing the batch throughout the logistics processes, such as goods receipt, production, quality inspection, goods issue, or delivery.

Use the batch characteristics and specifications as criteria for batch determination, which is a function that automatically selects the suitable batches for a requirement based on predefined rules and conditions.

Use the batch characteristics and specifications as input for batch valuation, which is a function that allows you to valuate batches of the same material differently based on their quality or market value.

References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 92; [SAP Help Portal: Batch Management].