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Shyam Gummidela
March 6, 2019 | 5 minute read

Use of Segmentation in S/4 HANA for

Product Revisions
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With S/4 HANA, SAP introduced a concept called Segmentation that was available in
 Like an Industry Solution prior to S/4 HANA. This blog provides an overview of how
Segmentation can be used to track product revision levels with segregation of
inventory for each of those revision levels.
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In a B2B world, usually a product is assigned a new identification (new
part#/material#) if there is a change to the form/fit/function. But if the change is
minor (no change in form/fit/function), the customer assigns a revision level and
may specify that product revisions are not interchangeable. One solution to solve
this business requirement is Segmentation within S4/HANA that works throughout
the supply chain. Segmentation can be used to assign revision levels and track these
revisions (Inventory, Demand, Supply at these revision levels) throughout the
logistics processes from Sales/ Procurement/ Manufacturing and Inventory.

ECN function provides the revision levels but cannot segregate inventory whereas
Segmentation function can fill that gap of inventory tracking.

The screenshots are from 1809 release of S/4 HANA. Now let’s go into details of the
set-up of Segmentation and its processing.

Easy Access Set-up

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Characteristics
CT04 – Create a characteristic in the Segmentation grouping. This is similar to any
other characteristic creation in S/4 HANA but it must be created in the special group
for Segmentation (1 in screenshot) so that it is available for the creation of
Segmentation structure.

The important part is the relevance for the characteristics on the Addnl. Data tab.

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This relevancy provides the ability to have BOM and Routing (or other areas) to
recognize the Segmentation. Make sure that the relevant ones are checked for your
business process. For our task, we need the BOM and ROU to be relevant. As you can
see there are other areas where this Segmentation can be made relevant. Ex –
Weights & Volumes, Sales Statuses etc.

Segmentation
SGTS – Create a new Segmentation Structure with the Characteristic(s) created
above. This allows the system to link the characteristic(s) to the Segmentation
function. Segmentation is flexible based on the characteristics that can be
created/customized depending on the unique business requirements. You can add
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multiple characteristics if necessary. For each of the characteristic, the blank value
can be made as an acceptable input.

Master Data
Material Master
Assign the Segmentation Structure in the Material Master. Once the Segmentation is
assigned, the batch functionality will be turned on automatically.

Important Note – Once the Segmentation is assigned to a Material Master, it can be

changed only if there are no postings against that material.

BOM
The BOM maintenance is the same except the identification of the revision level
(Segmentation characteristic). The option to “include” or “exclude” the component
by revision level (Segmentation characteristic) is provided.

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Routing
The Routing is like normal routing other than specifying that this routing is
applicable to the revision level (Segmentation characteristic). Depending on the
revision level the routing can be different to accommodate the change in the
manufacturing process of the revision level.

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Transaction Data
Stock Overview – The stock overview shows the stocks in different product revisions
(Segmentation Characteristic). This is one of the key requirements – to track the
inventory at the revision level without creating a new material#. As indicated, a batch
is created for each revision (Segmentation characteristic). The MMBE selection
screen is also enhanced to have the Segmentation as one of the filters.

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Sales Orders – In the sales orders, the product revision (Segmentation

characteristic) can be identified as the Requirement Segment. The Sales Pricing
conditions can be specific to the revision level (Segmentation characteristic) with
the creation of new condition table/access sequence that includes the
Segmentation. Pricing can be specific to Requirement Segment from the
Segmentation.

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Purchase Order – While creating the Purchase Order, the product revision level can
be specified to the vendor as stock segment so that the right revision level can be
shipped. Note – I have moved the field Stock Segment on the PO screen to be before
the Material for easier visibility. By default, in S/4 HANA you may have to scroll to the
right to view this stock segment. The Purchasing Pricing conditions can be specific
to the revision level (Segmentation characteristic) with the creation of new condition
table/access sequence that includes the Segmentation.

Production Order – When a production order is created, the Stock Segment can be
specified, and it is carried onto the Production Order Header/ Goods Receipt Tab.

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MRP Requirements – The standard MD04 of stock requirements screen is enhanced

to provide the visibility of the Stock segment as well as Requirement segments. The
MRP requirements are visible for each of the product revisions.

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Conclusion – This Segmentation can be used to identify different product revisions

without creating additional master data elements like Material, BOM, Routing etc.
This is one of the options that S/4 HANA provides to define the stock and
requirement segments with the use of Segmentation Characteristics. This can be a
powerful/flexible tool to meet the business requirements.

SAP documentation link

https://help.sap.com/viewer/25a41481f62e469ba0e61015a0d39d20/1809.000/en-
US/50d69e52c406215ce10000000a44538d.html

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Assigned Tags

SAP HANA

S/4 HANA Segmentation

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13 Comments

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

Alejandro Rodero Aristoy

April 18, 2019 at 3:27 pm

Hello Shyam,

Great post. Do you know if is possible to create a 1:N relation between Requirement Segment and Stock
Segment.

My intention is try to create forecast (MD61) in a unique Requirement Segment and after that create Sales
Order for a selected Stock Segment trying to create planned ind. requirements at each particular Stock
Segment.

Thanks in advance.

Regards,
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Alejandro

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Shyam Gummidela | Blog Post Author

April 18, 2019 at 4:43 pm

Alejandro

Thanks. Yes it can be done. Is the intention to do this type of relationship to consume the multiple
stock segments to the same requirement segment? If that is the case, then you have to configure the
PIR consumption in SGTC t-code accordingly.

Shyam

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Alejandro Rodero Aristoy

April 24, 2019 at 10:16 am

Hello Shyam,

Yes. I finally got it by configuring and testing accordingly at SGTC.

Thanks a lot.

Alejandro

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Oktay caglar
August 12, 2019 at 11:26 am

Hello Shyam,

how do you connect the revision levels from material master in to segmentation?

best regards

Oktay

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Shyam Gummidela | Blog Post Author

August 12, 2019 at 11:57 am

Hello Oktay

Create the segmentation with Characteristic as a revision level and then assign the segmentation in
the Material Master as described above (in the blog). That should give you the option to use the
revision levels across Supply chain. This is only one of the options not the "only" option.

Regards

Shyam Gummidela

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Oktay caglar
September 12, 2019 at 2:23 pm

Hi Shyam,

I am aware about this option, but it is not real link between material revision and segment value.

it is a kind of fictiv connection.

for example revision level on material master data has valid from date which is connected to engineering
change number, with the segment it is not the case.

Plus Revision level can be connected to BOM header material and components, with segment bom header is
drving always segment requirement.

Plus for the segment AATP licence is required to manage during the sales order and MRP live run, on the other
hand PP/DS is not supporting segmentation.

I think , provided solution by SAP does not have the maturity level to release for the market, at least for the
pharma industy.

I am happy to get your view as well.

best regards

Oktay

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Ondrej Galko
June 26, 2022 at 10:49 am

Hi Oktay,

never tried, but can it also work along with change number - date effectivity or BOM explosion
numbers?

Advantage of segmentation is that the stock is segregated automatically. Otherwise with classic ECM
you need to have batches with classification & batch determination strategy or MTO which is hard to
justify e.g. in food.

embedded PPDS should now support  also segmentation - July 2021 (see
linkhttps://www.hcltech.com/sites/default/files/documents/resources/brochure/files/segmentation
_for_lsh_brochure_2.pdf) however did not try it yet.

Ondrej

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Dmitriy Yakovlev
August 25, 2021 at 9:52 pm

Hello, colleagues!

Does segmentation work for configurable materials (VEHI for ex.) ?

In my case field MARA-SGT_CSGR is grey and vanishes in SGT_SETUP during assignment.

Best regards,

Dmitry.

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AIG Functional Team

September 19, 2021 at 2:01 pm

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Dear  Shyam Gummidela

Tried to map the process , as suggested by you ,

But seems lost , if feasible can we connect

Br

Tallha

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Nilesh Sankpal
February 3, 2022 at 3:34 pm

Hi Shyam,

Thank you for above blog.

Is there any specific business function need to be activated for segmentation characteristics in CT04. I am
working on S/4HANA 1909 edition, but could not find this option.

Regards,

Nilesh

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Shyam Gummidela | Blog Post Author

February 5, 2022 at 9:23 pm

Hello Nilesh

It is available in S4/HANA solution that combines retail and wholesale functions. Not aware of the
business functions though.

Regards

Shyam

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Ondrej Galko
June 26, 2022 at 1:07 pm

Hi Nilesh,

segmentation is available in "standard" S4HANA release.

Ondrej

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umer siddiqui
August 25, 2022 at 10:14 am

Is this functionality available in IBP?

Like 0 | Share

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