Serial Numbers functionality and configuration in PP

The first feature that comes to mind while writing about the serial number is the serial key we
usually use when installing software. Within the same software used by thousands of users, the
only way to distinguish a particular user is by his unique identification number. This unique
identification number is the serial number, in brief.

In one of my SAP implementation projects, the client required a unique identification number
for an electronic device that it produces to implement proper tracking for the device's
warranty. Depending on the business requirements, these numbers can be implemented at any
stage of material flow.

Setting up Serial number profile (T Code OIS2)

IMG path:

Plant Maintenance and Customer Service–> Master Data in Plant Maintenance and Customer
Service–> Technical Objects–> Serial Number Management –> Define Serial Number Profiles

In SAP, serialization can be used at different stages of material flow (inbound, outbound,
internal movements, etc.). The serial number has significant use in equipment numbers in SAP
Plant Maintenance as well. A Serial Profile is a key that holds this information, and the system
acts according to the set up that we configure in the serial profile.

I have created a new serial number profile Z001 by copying from 0001.

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Fig 1: Define Serial Number Profile

Here, I have defined the setting such that system will create the serial numbers automatically
after the creation of the production order.

Fig 2: Serializing Procedure

In the serializing procedure (Fig 2), we can see the options whether the serial procedure is
relevant to Production Planning (PP), Quality Management (QM), Material
Management (MM), Sales and Distribution (SD), or Plant Maintenance (PM) equipment master
records. Depending on the business requirement, the required procedures are set in a profile.

This is the main configuration for setting up serialization in SAP. Below we'll see how this serial
profile is maintained and used in the transaction.

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Serial Profile Maintenance at Material Master
As described, serialization can be used for different stages of a material movement. It is also
used in various other SAP modules, so a serial profile needs to be set at the right material
number. Once the serial profile configuration is completed, we need to set it in relevant raw
material, finish goods or spare parts, etc.

When we set the configured serial profile at a specific material, the system considers this
material master record linked with the serialization procedure. Hence, the system will create
serial numbers for the materials in relevant SAP transactions.

Fig 3: Serial Profile in Material Master

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For example, the above serialization procedure in Fig. 3 is for Production Planning (PP), and the
finish goods material master is maintained accordingly. We'll see the generated numbers for
the production order in the next steps.

Serial Number generation in Production Order

Based on the configuration in the serial profile, the number can be generated during Production
Order creation or release. In the example below, we can see the number is assigned for the
material that we maintained with a serial number profile.

As the PO quantity was 10, the system generated serial numbers 1 to 10, that means one
number for a piece of finished goods. If I create the next Production Order for this material, the
system will start from number 11; thus, a unique number will be assigned for a material.

Creation of the production order for 5 quantities

Checking the serial numbers

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No automatic serial number assignment

Saving the order

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Checking the serial numbers again and releasing the order

This time serial number assigned automatically by the system after the creation of the
production order.

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Fig 4: Serial number generation in Production Order

Once the number is generated, we need to perform the subsequent transactions with these
numbers accordingly. For example, when we'll perform a goods receipt for this PO, we need to
complete it with the number. In the ideal case, the GR should be in the warehouse area with an
RF gun. So, physically whatever serial number has arrived at the warehouse for a PO, the
barcode should be scanned, and the relevant transactions should be completed.

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Fig 5: Production Order GR with Serial Number

Serial Number History

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A serial number can be checked at any point in time for checking the relevant information. We
use SAP transaction code IQ09 to display a number. For example, let's review the numbers that
we generated in previous steps:

Fig 6: Serial Number display in IQ09 transaction

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Fig 7: Number History

Note- We can see the above details using MMBE also.

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Serial Number Logic
Some organizations might have a requirement to implement some specific logic or naming
conventions to determine serial numbers. In SAP, the particular logic can be implemented using
BAdI.

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To summarize, a serial number helps a business to track certain details for specific material.
However, keep in mind that it is essential to align the physical process accordingly, as
transactions need to be performed with those serial numbers.

Some Detailed Information-

EqR: This field specifies that whether an equipment master record is created at the time of
serial number generation or at a later stage.

When the setting is 01 the equipment is not generated at the time of serial number generation
and can later be generated from the IQ02 transaction by clicking on the Equipment view icon
there.

Normally when we have a finished assembly alone which requires serialization, we do not need
any equipment creation at all. Tracking is sufficient at this serial number of the assembly
material itself.

ExistReq check box: If the business practice is to create serial numbers manually and then
assign them during production order creation for instance, then this needs to be checked ON.
Else if we create a serial number on the fly/automatically then this needs to be left blank.

Cat: Category of the equipment that is associated at the time of serial number generation. Has
its Own number range and gets created in the background. If no value is specified here the
same is picked from the Define Default Equipment Categories for Serial Numbers config and

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this also specifies whether the combination of material number and serial number should be
unique or not.

StkChk: Ensures Stock check during goods movement based on the serial number status (like
the production order statuses) that is set automatically by the system. 3 Options are provided
(No Stock validation, Inconsistencies in Stock data–>Warning and Inconsistencies in Stock data–
>Error).

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