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Lesson 1 of 5

QM in the supply chain

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Quality management (QM) in SAP S/4HANA is not a separate world. It sits inside procurement, production, sales and warehousing, and it switches on at specific moments: when goods arrive, when an order is released, when finished goods are received, when a delivery is created. At each of those moments it can create an inspection lot, the central object of QM, and hold the stock until someone decides it is fit for use.

At Contoso Motor Co., rotors (CMC-RTR-200) come from Lakeside Components. A bad batch of rotors means failed alternators at the end of the line, warranty claims from Great Lakes Fleet Services and scrap. So Contoso inspects rotors when they arrive in plant 1710 Detroit, and inspects finished alternators before they are shipped.

  1. ProcurementGoods receipt for a purchase order creates an inspection lot (inspection type 01) for rotors
  2. ProductionOrder release can create an in-process lot (03); goods receipt from the order can create a lot (04)
  3. WarehouseStock transfers and recurring batch inspections can create lots
  4. SalesCreating a delivery can create a lot to inspect goods before they ship
  5. AnywhereA quality technician can create a lot manually, for example to check blocked stock
Where inspection lots come from along Contoso's supply chain.
The Sign-Off Table · thesignofftable.com/academy/sap-pp-205

The inspection lot

An inspection lot is the request to inspect a quantity of a material. It records the material, batch (if any), quantity and the document that triggered it, for example the purchase order item and material document of the goods receipt. It carries the inspection specifications copied from master data, the sample size, the results, the defects and finally the usage decision that says whether the material is accepted or rejected.

The inspection lot is the hub of QM: it points back to the document that triggered it and forward to its results, defects and usage decision.
The Sign-Off Table · thesignofftable.com/academy/sap-pp-205
  1. TriggerLot createdGoods receipt of 500 rotors posts; lot created with reference to the PO and material document
  2. PlanSpecifications copiedInspection plan and characteristics copied into the lot
  3. SampleSample calculatedSampling procedure says how many rotors to test per characteristic
  4. InspectResults and defects recordedMeasured values and pass/fail results entered; deviations flagged
  5. DecideUsage decisionAccepted or rejected; stock posted out of quality inspection stock
  6. Follow upFollow-up actionsQuality score updated; notification or return delivery if needed
The inspection lot lifecycle.
The Sign-Off Table · thesignofftable.com/academy/sap-pp-205

Inspection lot origin and inspection type

Two terms are easy to confuse. The inspection lot origin says which business event created the lot, for example goods receipt for a purchase order. The inspection type says how the inspection is processed for that event; it is assigned to the material in its quality management view and must be active, or no lot is created. Standard examples:

Inspection typeBusiness eventStock-relevant?
01Goods receipt for a purchase orderYes: receipt goes to quality inspection stock
03In-process inspection for a production orderNo: inspects operations, not stock
04Goods receipt from productionYes: finished goods held in inspection stock
08Stock transferYes
89Other or manual inspectionDepends on the case

Common standard inspection types. Companies often copy them into their own variants; check the QM view of the material in your system.

A goods receipt only becomes an inspection when the material has an active inspection type for that event; otherwise the stock is free to use at once.
The Sign-Off Table · thesignofftable.com/academy/sap-pp-205

QM also controls who may buy from whom. If the material's QM control key requires it, a quality info record must release Lakeside for rotors before purchasing can order. That is covered in the 300-level course; here, remember that QM can block procurement as well as inspect what arrives.

What would you do?

Maria asks why a delivery of 500 rotors from Lakeside is "not available" in MMBE even though the goods receipt was posted an hour ago. What is the most likely explanation?

TaskSAP GUI (on-premise, Private Edition)Fiori app (all editions)
Find and monitor lotsQA32 worklistManage Inspection Lots
Record results and defectsQE51NRecord Inspection Results
Make the usage decisionQA11Manage Usage Decisions
Create a quality notificationQM01Quality notification apps (for example Manage Quality Notifications; check your release)

Where QM work happens. SAP S/4HANA Cloud Public Edition offers only the Fiori apps.

Key points
  • QM checkpoints sit in procurement, production, warehouse and sales processes.
  • The inspection lot is the central QM object: it holds specifications, sample, results and the usage decision.
  • Lot origin = which event; inspection type = how it is processed. The type must be active in the material's QM view.
  • Stock-relevant lots hold material in quality inspection stock until the usage decision.

Check your understanding · not graded

Lesson check

  1. 1. What is the central object of QM inspection processing?

  2. 2. Which condition must hold for a goods receipt to create an inspection lot?

  3. 3. Which standard inspection type is used for goods receipt from production?

  4. 4. Which inspection type normally holds finished goods from production in quality inspection stock?