Product Revisions in SAP Business One: Track Every Recipe Change
Is something changing about your product? If so, it’s rarely big news. A supplier delivers a raw material with a slightly different concentration. An emulsifier is removed. The ratio between two ingredients shifts by a few percent because the flavor wouldn’t remain consistent otherwise.
In many companies, someone will then go into the recipe. Remove the old value, enter the new value, and save. Until a customer calls about a shipment from four months ago. What exactly was in that shipment again? In practice, that can sometimes be a huge task to figure out…
That is why product revisions exist in SAP Business One. A revision is a new version of a product in addition to the old one, not in place of it. Each version has its own formula, its own production route, and its own cost price. Everything that was already produced using the previous version remains linked to it.
The item number does not change. That may sound like a minor detail, but it’s precisely the point where most alternatives fall short: creating a new item for every recipe change leads to fragmented inventory, duplicate master data, and a sales history that no longer adds up.
A version has a status and a validity period
A revision follows the product’s lifecycle. As long as a new formulation is still under development, that version is classified as “engineering”: it can be tested and used in production internally, but it cannot yet be included in a sales order.
Once the version is approved, it becomes active. The previous version does not have to be removed immediately. It can be set to “phase-out,” meaning no new orders will be created for it, while the remaining inventory will continue to be shipped as usual. Only when no further activity occurs with it does a version become obsolete and disappear from all selection lists.
In addition, each version is assigned a "Valid From" and "Valid To" date. A formula change that takes effect on November 1 should be set up in October. And for each version, you specify which one is the default for planning and which one is for cost calculation, so that material planning does not base its calculations on a formula that production is not yet using.
The revision is tracked throughout the entire process: production order, batch, quality control, complaint handling, and costing.
That last point is what really matters in practice. Each produced batch is labeled with the version used to create it. The test protocol associated with that version is the one used to verify that batch during quality control. Any complaint that comes in can be traced back to that exact recipe and those measurements.
Curious to see how this would work in your process?
Logres’ ERP consultants work daily with manufacturers in the process industry and with wholesalers who must meet strict requirements. Feel free to discuss your situation with us.
Real-World Example
The supplier is discontinuing a raw material
A sauce manufacturer produces under its own brand and under private label for two retailers. The supplier of a vegetable oil is discontinuing the type that has been a staple in the recipe for years. An alternative is available, but it behaves slightly differently, so the ratio with the thickening agent must be adjusted accordingly.
Technically, it’s a minor adjustment. Commercially, it’s not. One retailer has had the composition specified in the delivery specification, so the change can’t be implemented there until the new contract period begins in January. The rest of production must be transitioned in November.
Without version control, you’re left with two half-measures: creating a second item number, with all the hassle that entails, or overwriting the recipe and tracking the discrepancy somewhere in an Excel spreadsheet.
Revisions work differently. The new formulation is entered as Version B and is initially assigned to the engineering department. Two test batches are run, the shelf-life test is conducted, and the results are recorded for that version. On November 1, version B goes live and version A is phased out, remaining valid through the end of December for orders from that particular retailer.
The planner doesn’t have to remember anything: the order automatically pulls the correct version, and material planning orders the correct quantity of both oils.
In March, a notification arrives regarding a batch from October. A quick glance at the batch shows that it was produced using version A, including the analysis results from that time. Within a minute, the conversation with the customer is focused on the contents, not on who still remembers the details.
More Than Just Proper Bookkeeping
During a BRC, IFS, or GMP+ audit, the question is rarely whether you have a recipe. The question is whether you can demonstrate how the recipe has evolved over time and who approved what and when.
In the event of a recall, the accuracy of your records determines how far back you need to trace. A version linked to batches can mean the difference between three batches and an entire quarter.
And there’s one reason that’s mentioned less often: knowledge stored in a system remains there. Recipe versions stored in the production manager’s head leave with him on his last day of work.
This approach in SAP Business One is based on the process industry functionality developed in collaboration with technology partner CompuTec. The same version is applied to quality control, shelf life, and cost calculation, resulting in a single set of records instead of four.
