Segmentation: When you run an availability check at the time of order entry, the system checks whether a

requirement (a specific material or product) can be fulfilled by the requested delivery date. Segmentation can be
used to order certain materials or products by logically categorizing them based on specific criteria or
characteristics (for example, color or size.) If the requirement is relevant for segmentation, you can use
segmentation to assign the supply to the requirement. The assignment of the requirements to the supply (or the
supply to the requirement) is determined according to the mappings defined for the requirement or stock
segments in Customizing. Multiple requirement segments can be assigned to a single stock segment.

See AlsoDemand and Supply Segmentation

Demand and Supply Segmentation

Use:Businesses compete today in an increasingly customer-oriented market. Therefore, it becomes necessary

to streamline internal processes and logistics around the needs of each market and its unique requirements
through appropriate sourcing, planning, and supply of goods to meet market demands.

Some materials are expected to support large volumes of data. Segmentation can be used to order such
materials by logically categorizing them based on certain criteria or characteristics.

For example, you can enter a specific item line for a material. Using segmentation, you can also order materials
of different quality levels, for different customer channels, and from different countries of origin.

In material master, you can segment a material using segmentation structure and segmentation strategy.

Implementation Considerations

Integration

Segmentation is integrated in the following applications:

 Material Master

 Sales and Distribution

 Materials Management

 Production Planning and Control

You can assign segments to a material using segmentation structure and segmentation strategy in the material
master. You can configure these settings for segmentation in Transaction Segmentation Structure
Maintenance and Segmentation Strategy Maintenance under SAP Menu    Logistics   Central
Functions   Segmentation .

Features

There are two types of segments:

 Requirement segments

 Stock segments

The segment you assign to the materials in the requirements (for example, Sales Order, Planned Independent
Requirement, Stock Transport Order) is called requirement segment. This allows you to subdivide your
requirements based on certain criteria.

Example

The incoming requirements such as sales orders are divided based on the requested quality - Quality 1, Quality
2, or Quality 3, and by customer channel - Store, Wholesale, or E-Commerce.

Stock segments are used for logical distribution of existing and planned stock. Therefore, stock segments are
assigned to both the physical stock and procurement proposals such as planned orders, production orders,
purchase requisitions, and purchase orders.

Example

You can divide your stock based on the same criteria as the requirement, that is, by quality - Quality 1, Quality 2,
or Quality 3 and by countries of origin - India, China, or Germany.

The segments influence the entire logistics chain. You can assign segments to a material using segmentation
structure and segmentation strategy in the material master.

More Information
 Segmentation Structure

 Segmentation Strategy

Segmentation Setup
Use single transaction SGT_SETUP to maintain segmentation structure and strategy.

Features

Using SGT_SETUP transaction you can leverage the following features:

Segmentation Structure

Segmentation Strategy

Segmentation Combinations

Maintenance of Rules

Default Segmentation

Display Rules

Generate Rules

Upload/Download

NoteMultiple users can use SGT_SETUP transaction for different segmentation structures and strategies at the
same time. However, you can lock or edit one segmentation structure and strategy at a time.

Define Segmentation Setup

Context

Use SGT_SETUP transaction to create and maintain segmentation structure and segmentation strategy in a

simplified way.

Procedure
1. Create segmentation structure

a. Execute transaction SGT_SETUP.

b. Select Change.

c. Select the segmentation structure and right-click on it. Select Add Segmentation Structure.

Alternatively, you can select Create Node to create your own segmentation structure.

d. Enter the values for Segmentation Structure and Short Description and select Save.

2. Add characteristics to segmentation structure

a. Select Change and double-click the segmentation structure you have created.

b. Select Add Line in ALV to add characteristics for the segmentation structure.

3. Create segmentation strategy

a. Select the segmentation structure and right-click on it. Select Add Segmentation Strategy.

b. Enter the values in Segmentation Strategy, Strategy Description, and Scope.

c. Select Save to create segmentation strategy along with nodes.

4. Generate segmentation combinations

You can either manually enter different segmentation value combinations that are possible for this strategy or
generate the required combinations.

a. Double-click the segmentation strategy.

b. Either select Add Lines to maintain the segmentation combinations or click Generate.

5. Maintain Rules

You can generate rules for segmentation strategy in one of the following two levels:

a. At segmentation strategy level: Select the segmentation strategy for which the rule should be
generated and click Generate Rule.

b. At each node level: Select the node for which the rule should be generated and click Generate
Rule.

Once the combinations are generated, you can generate or maintain rules for the following nodes:

c. ARun/MRP: Requirement/Stock Allocation

d. ATP: Define Pool Segment and Check Level

e. Dependent Requirements/Stock transfer

f. Requirement to Stock Conversion

g. Planned Independent Requirements Consumption

a. Expand the segmentation strategy and click the corresponding node.

b. In the ALV screen, click Add Line to maintain the necessary details for the nodes.

c. Select Save.

NoteTo display the already existing rules, select the segmentation strategy or node and click Display Rules.
b. Default Segmentation

a. Select the segmentation strategy and click Default Segmentation.

b. Double-click the corresponding segmentation strategy. Select Add New Lines to maintain values
in the different tabs such as Sales Order, Purchase Order: Stock Segment and so on.

Here you maintain the values for which Default Segmentation should be activated.

c. Assign segmentation strategy to a material

a. Select the segmentation strategy.

b. Select Assign Material next to the segmentation strategy.

c. Choose on Assign Material and search for the material for which segmentation should be
assigned.

d. Select Assign Material and Save.

NoteYou can view assigned material or article in the Display Material of the segmentation strategy.

Maintain Segmentation
Relevance for Functions
Use

This process allows you to maintain segmentation relevance for functions:

Prerequisites

You have defined a characteristics group (in Customizing) using the following steps:

1. In Customizing, navigate to Cross-Application Components   Classification

System   Characteristics   Define Characteristics Groups.

2. Click New Entries.

3. Enter SGT_SAP-C under the Group field.
4. Enter Characteristics for Segmentation under the Characteristics Group Description field.

5. Save the entries. If the system prompts for the changes to be saved under a transport request, save the
changes under a customizing transport request.

Process

You make you of the following steps to maintain segmentation relevance for functions:

1. Execute transaction CT04.

2. Enter the name of the Characteristics.

3. On the Basic Data tab page, enter the Description.

a. Enter Characteristics for Segmentation as the Chars Group.

b. Enter Character Format as the Data Type

c. Enter Number of Chars.

4. On the Values tab page, enter Char. Value and a corresponding Description.

5. On the Addnl data tab page, choose the Relevance pushbutton.

Define Relevance for Functions overview screen in displayed.

6. Select the applications relevant for segmentation.

7. Choose Save.

Note
You can define segmentation structure and segmentation strategy for an application only if the application is
made relevant for segmentation.

More Information

 Segmentation Structure

 Segmentation Strategy

Segmentation Structure
 Definition

A segmentation structure is a combination of two or more segments of any material. For example, a
segmentation structure can be a combination of quality, customer channel, and country of origin.

Use

Segmentation structures are defined in the Transaction Segmentation Structure Maintenance under SAP

Menu   Logistics   Central Functions   Segmentation    Segmentation Structure Maintenance

Note

You have defined segmentation relevant characteristics using Master Data Characteristics

Management (transaction CT04). For more information, see Maintain Segmentation Relevance for Functions.

Segmentation Strategy
Use

To efficiently plan your requirement, it is necessary to fulfill newly arising requirement (such as sales orders) with
existing or future stock (for example, purchase requisition). If you have defined segments for your material, you
can assign the stock to the requirement using these segments. Segmentation strategy determines how
requirement segments are assigned to stock segments. This kind of assignment takes place during available-to-
promise (ATP) check and material requirements planning (MRP).

Segmentation strategy is also important for the following requirement elements and stock elements:

 For externally procured materials during planning run. For example, during the creation of purchase
requisitions.

 For the components of materials, i.e., the dependent requirements and the fulfillment of those
requirements.

 For consumption of planned independent requirements using the actual customer requirements during
the planning run.

Segmentation strategies are defined in the Transaction Segmentation Strategy Maintenance under SAP

Menu    Logistics   Central Functions   Segmentation   Segmentation Strategy Maintenance

Note
You have defined segmentation relevant characteristics using Master Data Characteristics
Management (transaction CT04). For more information, see Maintain Segmentation Relevance for Functions.
 Features

Assignment of Stock or Requirement Segments

If you have assigned segments to a material, you can assign stock to the requirements using segmentation. The
assignment of stock to requirements takes place during the planning run. The system determines which
requirement segment is covered by which stock segment.

You determine the following sequence for your segmentation using your segmentation strategy:

1. You receive a requirement, such as a sales order. For example, the requirement belongs to customer
segment Wholesale and is of quality Quality 1.

2. Using segmentation strategy, you define that this customer will receive the requested segment first, if
you have the segment in stock.

3. If the requested segment is not in stock, you decide that the customer will receive available stock
segment in the next level.

It is not mandatory to attach a segmentation structure or a segmentation strategy to a material.

 A segmentation strategy can have multiple requirement segments but can be assigned to only one blank stock
segment. Such segmentation strategies are identified by Scope in Segmentation Strategy. Scope indicates if the
segmentation strategy only contains requirement segments or both requirement and stock segments.

Deletion of Segmentation Values

You can delete segmentation values for segmentation combinations. However, if you wish to delete multiple
segmentation values, you can use the transaction SE38 to execute the report program SGT_DELETE_CATS.

More Information

 Demand and Supply Segmentation

 Segmentation Structure

 Scope in Segmentation Strategy

Scope in Segmentation Strategy

Use

Scope is used to define the mapping rules or segment combinations in segmentation strategy. Scope can either
be 1 or 2.

If the scope is 1, then both requirement segment and stock segment are considered during planning run.
Mapping of requirement segment and stock segment can be 1:N or N:M.

Example
For 1:1 mapping, assume the requirement is for 100 pieces of segment X. As per this mapping, available stock
of 30 pieces of segment X is consumed. As the requirement is not fulfilled, the system proposes to procure 70
pieces of segment X.
 If the scope is 2, then only requirement segment is considered during planning run. Stock segment is not
considered. Customer requirements with specific requirement segments are covered by the common pool of
stock available.

More Information

 Demand and Supply Segmentation

 Segmentation Structure

 Segmentation Strategy

Define Default Segment Values

(SGT_DEFAULT)
Use

You can use the Default Segment Value Maintenance tool to create and modify condition records that will be
used by the applications, such as Sales Order, Purchase Order, and so on, to determine default segment
values.

The tool supports the maintenance of condition records for the following applications:

 Sales Order

 Purchase Order: Stock Segment

 Purchase Order: Requirement Segment

 Purchase Requisition: Stock Segment

 Purchase Requisition: Requirement Segment

 Planned Order

 Safety Stock

 Outline Agreement

 Planned Independent Requirements

Integration

The Default Segment Value Maintenance tool is fully integrated with the sales processes, purchasing processes,
and material requirement planning processes.

Features

You can use the tool to create, change, or delete the condition records. You can define values for relevant
application fields and provide validity periods to the condition records. You can assign the data from which the
default segment value can later be determined in the applications.

You can classify such data as Field-Based or Value-Based.

 Field-Based: Displays the characteristics assigned to the segmentation strategies of a record. You
can maintain either a constant (using an apostrophe, for example, ‘value’) or a dynamic value (a combination of
and application table and a field) valid for the characteristic.

 Value-Based: Displays all the segment values belogning to a record. You can select the valid segment
values.

The tool offers you the following views:

 Split Screen

 Grid Screen

By default, the split screen view is displayed. The split screen view contains the tree view on the left side of the
screen. It displays the strategy tree. The grid view on the right side of the screen displays the condition records.
You can then choose to toggle between the split screen view or the grid screen view using the appropriate icon.
 Activities

To access this report on the SAP Menu, choose Logistics   Central Functions   Segmentation   Define

Default Segment Values.

Authorizations for Define Default

Segment Values
Use

The system carries out an authorization check at the start of the transaction. You can authorize a user to
execute the following operations in the season workbench:

 Change Mode

 Display Mode

 Maintain Condition Records on the Sales Order tab

 Maintain Condition Records on the Purchase Order: Stock Segment tab

 Maintain Condition Records on the Purchase Order: Requirement Segment tab

 Maintain Condition Records on the Purchase Requisition: Stock Segment tab

 Maintain Condition Records on the Purchase Requisition: Requirement Segment tab

 Maintain Condition Records on the Planned Order tab

 Maintain Condition Records on the Safety Stock tab

 Maintain Condition Records on the Outline Agreement tab

 Maintain Condition Records on the Planned Independent Requirements tab

Authorization Objects for Define Default Segment Values

The authorization object C_SGT_DEFT is available for the Define Default Segment Values transaction. These
authorization objects reside in the component LO-RFM-SGT-MD and package LO_SGT. In the authorization
field ACTVT, the function codes 02 (Change) and03 (Display) apply .
 In the authorization field SGT_APPL, the following function codes apply:

 V1-Sales Order

 M-Purchase Order: Stock Segment

 ST-Purchase Order: Requirement Segment

 PR-Purchase Requisition: Stock Segment

 SR-Purchase Requisition: Requirement Segment

 PO-Planned Order

 SB-Safety Stock

 KO-Outline Agreement

 IR-Planned Independent Requirements

Segmentation: Enhancements to
Material Master
Use

Segmentation logically categorizes materials based on certain criteria or certain characteristics of the material.
These enhancements to material master can be broadly divided into changes made to the client data and
changes made to the plant data.

Features

Client Data

In client data, you must mark a material relevant for segmentation before assigning segmentation characteristics
and their features to the material.

If you make a material relevant for segmentation, then you have to maintain the segmentation structure and
strategy for that material. The Segmentation Structure and Segmentation Strategy fields appear only for
segmentation relevant materials.
 You can define if the Segmentation Structure and Segmentation Strategy fields should be mandatory or
optional fields based on the Customizing activity Define Attributes of System Messages under Logistics -
General  Material Master  Basic Settings.

After you set the segmentation structure and segmentation strategy, the Segmentation Strategy
Scope maintained for the segmentation strategy is displayed in material master.

If you create a new material as a copy of an existing material, then the segmentation relevance, segmentation
structure, and the segmentation strategy of the newly created material will be the same as that of the existing,
reference material.

Segmentation structure and segmentation strategy can be changed in the change mode as long as documents
are not existing in the system.

Plant Data

Segmentation Structure, Segmentation Strategy, and Segmentation Strategy Scope

You can change the segmentation strategy for plant data based on the following criteria:

 If the material is marked as segment relevant in client data

 Segmentation Structure and Segmentation Strategy fields are maintained in client data

If you create a new material as a copy of an existing material, then the segmentation strategy of the newly
created material will not be copied from the reference material. This gives you the flexibility to decide the
relevance of segmentation strategy at the plant level.

Batch Management is also mandatory when a segmentation strategy is maintained for a material and the Seg.
Strategy Scope is 1.

Batch management also results in generation of batch numbers in sales and purchase documents.

More Information

Demand and Supply Segmentation

 Mass Maintenance of Material
Master Data
Use

Maintaining master data can be time-consuming if you have to make each change individually. It is quicker to
make one change and have the system automatically update all the affected records automatically. The mass
maintenance tool enables you to change a large group of master data records at once.

You can select the mass maintenance tool within a number of master data transactions. All these mass
maintenance tools are based on the same basic framework and user interface.

Features

You can mass maintain data related to the following segmentation related enhancements made to material
master:

 segmentation structure

 segmentation strategy

More Information

Segmentation: Enhancements to Material Master

Segmentation: Enhancements to
Article Master
Use

Segmentation logically categorizes articles based on certain criteria or certain characteristics of the article. The
physically distinguishable characteristics, such as sizes and colors, are classified as variant creating
characteristics. When you assign these characteristics to a generic article, the system generates variants of the
generic article with a unique material code for each combination of the assigned variant characteristics.
In SAP S/4HANA, the article master is enhanced to support articles with segmentation characteristics in addition
to variant creating characteristics. You can assign segmentation characteristics and their properties to single,
generic and structured articles.

Prerequisites

You have maintained segmentation structure and segmentation strategy. For more information, see Demand
and Supply Segmentation.

Features

Client Data

In client data, you must assign a segmentation strategy to the article.

In the article master, you can specify if an article is relevant for segmentation or not by assigning the
Segmentation strategy to the article. If you make an article relevant for segmentation, then you have to maintain
the segmentation structure and strategy for that article. .

For more information about segmentation characteristics, structure and strategy, see Demand and Supply
Segmentation.

You can define if the Segmentation Structure and Segmentation Strategy fields should be mandatory or

optional fields based on the Customizing activity Define Attributes of System Messages under Logistics -
General   Material Master   Basic Settings.

In article master, when you set the segmentation structure and segmentation strategy, the segmentation strategy
scope maintained for the segmentation strategy is displayed.

Segmentation structure and segmentation strategy can be maintained (assigned, changed or deleted) as long as
there are no subsequent documents existing in the system..

Site Data

Segmentation Structure, Segmentation Strategy, and Segmentation Strategy Scope

You can change the segmentation strategy for plant data as long as subsequent documents are not existing in
the system.

For a particular DC or plant, you can either apply the segmentation strategy specified in the client data or leave
the field blank signifying that no segmentation strategy is maintained for that particular DC or plant.
 Note

 Segmentation cannot be maintained for articles of type Additional.

 Segmentation can be copied from a generic article to its variants for reference DCs. In case of generic
articles, segmentation cannot be changed at the variant level.

 Segmentation can be changed for material group reference articles and also for variants of a non-
reference DC.

Using article master, you can extend an article to multiple DCs or plants and also maintain segmentation
strategy for all plants. You can do this by choosing the validity area of the article and the reference DC.

Note
Only those DCs or plants that are marked for listing or the DCs or plants that were extended for the article
previously are available on this screen. If you are unable to see a particular DC or plant, then mark the DC or
plant for listing through one of listing procedures or after it is extended, using the article master dialog
transaction.

You can use the Propose button to copy the field value proposals from the reference DC. You can change or
assign (new) segmentation strategy to DC or plant individually.

Under the Quantity Based Data tab, the segmentation dependent master data for quantity based data is
displayed. enter the values for field at each segment level. You can also maintain data for each segment
manually or using the Fast Entry option.

Def. Segment

The Default Stock Segment value indicates the segment value, which is (from the material valuation point of
view) a representative for all segment value combinations.

The default values will be used in costings at material level. The system needs the default values as basis for
the following:

 BOM explosion

 Routing selection

 Component valuation

Note
The system creates also for split valuated materials costings at material level. Therefore each material should
have default values for valuation (finished goods and raw materials).
 Segmentation dependent Master Data

Weights and Volumes

You can maintain weights and volumes as one of the Additional data of the article. You can maintain additional
data such as Net Weight, Gross Weight, and Volume for a segment combination. The units of measure are
derived from the base units of measure, and the Net Weight is calculated based on the base unit of measure.
Weights and Volumes can be maintained only when the Scope of segmentation strategy is 1, that is, only if both
requirement segment and stock segment are maintained. You cannot maintain Weights and Volumes when
the Scope is 2, as in this case, only a stock segment is maintained at the variant level.

You can use Fast Entry to maintain weights and volumes data for multiple segmentation combinations.

Sales Status

You can maintain segmentation dependent sales data as one of the Additional data of the article. Sales status
can be maintained only when the Scope of segmentation strategy is 1, that is, only if both requirement segment
and stock segment are maintained. You cannot maintain the sales status when the Scope is 2, as in this case,
only a stock segment is maintained at the variant level.

You can use Fast Entry to maintain sales status for multiple segmentation combinations.

Note
Segmentation dependent master data stored at the generic article level will be copied as a reference to all its
variants by the system. However, the data copied to the variants will not be stored in the system database. Data
will be stored in the system database for those variants whose values are different from those stored at the
generic article level.

Change Documents

The change documents for the MARA and MARC fields are accessible using transaction MM44, or in article
maintenance (transaction MM42/MM43) via the menu functionEnvironment  Display Changes

The changes to segmentation dependent data have been stored in a separate change document
object SGT_MD (Change Documents for Segmentation dependent data). You can display the change
documents by using the standard program RSSCD200 with the following entries:

 Object class: SGT_MD

 Object ID: Article number (with leading zeros for purely numeric article numbers)
 Other selection parameters as required

Master Data in Warehouse Management

The material master has been enhanced to store data for capacity usage, storage strategies, and storage bin for
individual segment values. You can store these data in Logistics:DC > Segmentation in Warehouse
Management in material master.

General Data

You can enter the capacity consumption and the reference unit of measure for individual segment values in the
General Data tab. If you do not enter any values, the system will use the values that you entered for the material
in Logistics:DC > Warehouse Management.

Storage Strategies

You can also specify the stock placement and stock removal strategies in the Storage Strategies tab for
individual segment values. You can enter the following data:

 Storage Type Indicator for Stock Removal (SR)

 Storage Section Indicators (SecIn)

 Special Movement Indicator for Warehouse Management (SM)

 Material Relevance for 2-Step Picking (2stP)

 Storage Type Indicator for Stock Placement (SP)

 Bulk Storage Indicator (BSI)

 Indicator: Message to Inventory Management (M)

 Indicator: Allow Addition to Existing Stock (Add.to Stk)

If you do not enter these values for individual segment values, the system uses the stock strategies you entered
for a material in Logistics:DC > Warehouse Management. The system evaluates the following data to find a
suitable storage bin:

 Storage Type Indicator

 Storage Section Indicator

 Bulk Storage Indicator

 Indicator: Allow Addition to Existing Stock

 Special Movement Indicator for WM

The system evaluates the following data to monitor the stock removal:

 Storage Type Indicator

 Material Relevance for 2-Step Picking

 Special Movement Indicator for WM

Storage Bin Stock

If you define a storage type, you can enter storage bin data for individual segment values in the Storage Bin
Stock tab. You can enter the following data at the segment level for each storage type

 Storage Bin

 Picking Area

 Minimum Storage Bin Quantity

 Maximum Storage Bin Quantity

 Control Quantity

 Replenishment Quantity

 Rounding Quantity

The system considers only the data entered for the individual segments for processing the replenishment. If you
do not enter the data for the individual segments, the system uses the data you entered for the material.

More Information

Demand and Supply Segmentation

Weights and Volumes in Article

Master
Use

Weights and Volumes is one of the Additional data that you can maintain for an article. You can maintain their
values here based on segmentation. You can maintain Gross weight and Volume only if the Scope of
segmentation strategy is 1.

The values maintained for the generic article are copied to all its variants and Net weight is calculated based on
the value maintained as the Base Unit of measure.

Note

Weights and volumes are not maintained at the segmentation level when the Scope of segmentation strategy
is 2, since there will be only one stock segment at the variant level.

In the detail view for the schedule line, you can check the valid weight or volume units in the sales document and
change them manually, if necessary. Manual changes are not subsequently overwritten with the entries from the
article master. In the sales document, the system calculates the weight or volume per item automatically from
the weight and volume data of all the schedule lines.

Note

If requirement segment is maintained in article master for weights and volumes, then this weight and volume is
used for segmentation of sales document, else standard weights and volumes of the article master are used.

If different weights or volumes have been maintained in the article master for the sales unit for the individual
variant values, the sales unit in the order has priority over the base unit of measure when calculating the weights
or volumes.

You can use Fast Entry to maintain weights and volumes data for multiple segmentation combinations.

More Information

Reference Handling of Segmentation Dependent Weights and Volumes

Reference Handling of Segmentation Dependent Sales Status