12/21/22, 11:28 AM S/4HANA 2021: Improvements for Segmentation in Process Orders | SAP Blogs

Community

Ask a Question Write a Blog Post Login

Product Information

Caetano Almeida
November 16, 2021 | 3 minute read

S/4HANA 2021: Improvements for

Segmentation in Process Orders
 13  8  5,168
Follow

SAP Demand and Supply Segmentation is a solution that was originally developed
 Like for the fashion industry, allowing companies to segregate demands, stock and supply
elements in individual segments. With segmentation, companies can fulfill unique
requirements of different markets, creating rules to segment the stock using
 RSS Feed different characteristics, without increasing the total number of materials, BOMs and
routings in the system.

Those business requirements, however, are not unique for fashion companies and
companies in the life-sciences industry share similar requirements to segregate the
stock into different segments. The main business requirement for life-science
industry is to fulfill compliance requirements across different markets and at the
same time avoid additional master data maintenance. Several pharma companies
started to explore the segmentation solution to fulfill those requirements, however,
segmentation was not yet fully integrated to process orders, until SAP S/4HANA
2020.

The latest release of SAP S/4HANA 2021 brought improvements for segmentation
focused in process orders and, as stated in SAP note 3083589, the following process
are now supported:

Creation, Change and Display of Process orders,

Creation, Change and Display of Master Recipes

https://blogs.sap.com/2021/11/16/s-4hana-2021-improvements-for-segmentation-in-process-orders/ 1/10
12/21/22, 11:28 AM S/4HANA 2021: Improvements for Segmentation in Process Orders | SAP Blogs

Conversion of Planned orders to Process orders via COR7

Goods movement via MIGO

This blog provides an overview of the new features available for segmentation in
process orders, as of SAP S/4HANA 2021:

1 – Segment selection during manual process order creation

As of S/4HANA 2021 users can manually select the segment when manually creating
a process order in transaction COR1. When creating a new process order for a
segmented material in transaction COR1, a popup screen will be shown, where the
user can choose the value for the different segmentation characteristics or the valid
segmentation combinations.

2 – Segment is now displayed in the process order

Besides the possibility to select the segment during the order creation, process
order transactions (such as COR1 and COR2) now bring a field where the segment is
displayed and where it can also be changed.

https://blogs.sap.com/2021/11/16/s-4hana-2021-improvements-for-segmentation-in-process-orders/ 2/10
12/21/22, 11:28 AM S/4HANA 2021: Improvements for Segmentation in Process Orders | SAP Blogs

3 – Process order segment copied to manually created batches

In previous releases, the segment was only copied to the batch if the batch was
automatically created during the process order release. As of S/4HANA 2021, if a
segment is determined for the process order, it is now automatically copied to the
batch, even when it is manually created in the process order transactions.

4 – Segment selection in the master recipe

In previous releases it was already possible to determine the segment for the bill of
material components, defining if a specific component should be used or not when
manufacturing a product for a specific segment.

As of S/4HANA 2021, the master recipe transactions introduced a new button where
we can determine the validity of a master recipe for specific segments. With this
option, besides the different components, we can also have different manufacturing
processes for each segment.

https://blogs.sap.com/2021/11/16/s-4hana-2021-improvements-for-segmentation-in-process-orders/ 3/10
12/21/22, 11:28 AM S/4HANA 2021: Improvements for Segmentation in Process Orders | SAP Blogs

As shown in the figure below, it is now possible to determine that the Master Recipe
will be valid for specific segment or to define that it will be excluded for specific
segments.

https://help.sap.com/viewer/9905622a5c1f49ba84e9076fc83a9c2c/2021.000/en-
US/5f49493f2686435e8278411c99a03352.html

https://blogs.sap.com/2021/11/16/s-4hana-2021-improvements-for-segmentation-in-process-orders/ 4/10
12/21/22, 11:28 AM S/4HANA 2021: Improvements for Segmentation in Process Orders | SAP Blogs

Helpful Links:

Additional details of this app can be found in the following links:

SAP Help – Process Orders with Segmentation

SAP Note 3083589 – SAP S/4HANA On Premise 2021 release: Fashion and Vertical
Business Restriction Note 

Brought to you by the SAP S/4HANA RIG and Customer Care team.

Alert Moderator

Assigned Tags

MAN Production Planning (PP)

Life Sciences

MAN (Manufacturing)

MAN Material Requirements Planning

MM (Materials Management)

SAP Demand Management

Similar Blog Posts 

MRP Lists are gone with MRP Live! What should I do now?
By Caetano Almeida Oct 27, 2022

Why should I use the MRP Fiori Apps?

By Caetano Almeida Mar 09, 2021

How to Prepare for SAP Certification

By Ruthvik Chowdary Nov 02, 2022

https://blogs.sap.com/2021/11/16/s-4hana-2021-improvements-for-segmentation-in-process-orders/ 5/10
12/21/22, 11:28 AM S/4HANA 2021: Improvements for Segmentation in Process Orders | SAP Blogs

Related Questions 
MRP Area - PIR and Planned Order Pegging Allocation
By Nilesh Sankpal Feb 02, 2022

Manage priduction operations app for Process orders Fiori S4HANA 1909
By nicolas delacauw Sep 23, 2020

The future of Engineering Workbench (CEWB)

By Jan Buchmann Aug 15, 2022

13 Comments

You must be Logged on to comment or reply to a post.

Sasibhushan Padmanabhan
November 16, 2021 at 3:12 pm

Hi Caetano,

This is definitely a good move forward. Do we have any best practice document or an overall configuration
document to support this process ?

Regards

Sasi

Like 1 | Share

Caetano Almeida | Blog Post Author

November 24, 2021 at 2:16 pm

Hi Sasi

I did not find any best practice for this specific scenario, but I'll suggest to our product team to create
it.

https://blogs.sap.com/2021/11/16/s-4hana-2021-improvements-for-segmentation-in-process-orders/ 6/10
12/21/22, 11:28 AM S/4HANA 2021: Improvements for Segmentation in Process Orders | SAP Blogs

Regards,
Caetano

Like 1 | Share

Sasibhushan Padmanabhan
November 24, 2021 at 4:37 pm

Hi Caetano,

Thanks a lot , appreciate your response...

Regards

Sasi

Like 1 | Share

Rafael Ramos Fernandez

November 17, 2021 at 1:27 pm

Hi Caetano

Thanks for sharing this information.

Do you know if the QM module supports this functionality?

Thanks in advance

Rafael R.

Like 0 | Share

Caetano Almeida | Blog Post Author

November 18, 2021 at 6:49 pm

Hello Rafael

Even though the QM transactions were not exactly enhanced to work with segmentation (that means,
there is no field to show or change the segment), it is possible to use QM with a material for which
segmentation is active.

Regards,

Caetano

https://blogs.sap.com/2021/11/16/s-4hana-2021-improvements-for-segmentation-in-process-orders/ 7/10
12/21/22, 11:28 AM S/4HANA 2021: Improvements for Segmentation in Process Orders | SAP Blogs
Like 0 | Share

AIG Functional Team

May 30, 2022 at 8:40 am

Dear Caetano ,

vey well explained ,

Can we have similar scenario mapped for Pharma  Industry to capture the Active Pharmaceutical ingredient
Material (API) in planning during our MRP execution.

Br

Tallha

Like 0 | Share

Caetano Almeida | Blog Post Author

September 21, 2022 at 2:49 am

Hello Tallha

I apologize for my delay, but I did not see your comment earlier.

Active Ingredient can be considered in MRP in standard, but I have never tested it together with
Segmentation. I did not find any restriction in the documentation, but it is a scenario that should be
worth to test in the system.

Regards,
Caetano

Like 0 | Share

umer siddiqui
August 25, 2022 at 10:10 am

Is Stock segmentation available in IBP?

Like 0 | Share

https://blogs.sap.com/2021/11/16/s-4hana-2021-improvements-for-segmentation-in-process-orders/ 8/10
12/21/22, 11:28 AM S/4HANA 2021: Improvements for Segmentation in Process Orders | SAP Blogs

Caetano Almeida | Blog Post Author

September 21, 2022 at 2:53 am

Yes, you can forecast by demand segment in IBP.

Like 0 | Share

Mejdi BRAHEM BOUCHNAK

September 20, 2022 at 3:06 pm

Hello Caetano Almeida

Do we need an extra license to activate Segmentation in S/4 HANA (not fashion solution) ?

Thanks and Regards

Mejdi BRAHEM

Like 0 | Share

Caetano Almeida | Blog Post Author

September 20, 2022 at 5:06 pm

Hello Mejdi

I'm not the right person to discuss licenses, but if I'm not wrong there is a separated license for
segmentation. Better to double check with your SAP accountant excutive.

Regards,
Caetano

Like 0 | Share

Dmitry Yakovlev
December 15, 2022 at 6:31 pm

Hello, Caetano!

Is it possible to build hierarchy in segmentation?

Like this:

Segment 1-Level1
https://blogs.sap.com/2021/11/16/s-4hana-2021-improvements-for-segmentation-in-process-orders/ 9/10
12/21/22, 11:28 AM S/4HANA 2021: Improvements for Segmentation in Process Orders | SAP Blogs

|
|_ Segment 2-Level 2

|_ Segment 3-Level 2

Thanks!

Best regards,

Dmitry Yakovlev.

Like 0 | Share

Caetano Almeida | Blog Post Author

December 15, 2022 at 7:52 pm

Hi Dmitry

The main focus of this blog was to show the new features for segmentation in process orders.

For general segmentation questions, please open a separate thread with your inquiry.

Regards,
Caetano

Like 0 | Share

Find us on

Privacy Terms of Use

Legal Disclosure Copyright

Trademark Cookie Preferences

Newsletter Support

https://blogs.sap.com/2021/11/16/s-4hana-2021-improvements-for-segmentation-in-process-orders/ 10/10