what is substitution in SAP with good examples / what is supersession in SAP with good examples

• SAP Substitution vs. Supersession: Key Differences and Examples
• Difference between Material Substitution and Supersession in SAP

Here I am providing with a beautifully structured and structured explanation of Substitution and Supersession in SAP, designed for easy understanding with practical examples and configuration steps.

 In the SAP ecosystem, these concepts ensure that your business remains agile—whether you are running a seasonal promotion or updating a technical component.

In SAP, these two terms are often used interchangeably, but they serve very different business purposes and are managed in different modules.

 

1. SAP SD: Material Substitution (Material Determination)

·       This is primarily used in Sales and Distribution (SD) for marketing or promotional reasons. The Concept: Material Substitution (technically called Material Determination) is an automated way to swap one product for another during the Sales Order process. It is primarily driven by marketing goals, seasonal events, or specific customer needs.

.Key Driver: Marketing, Promotions, or Customer-specific requests.

• Module: Sales & Distribution (SD).
• T-Code: VB11 (Create), VB12 (Change).

 📌 Simple Example

A company sells Classic Coffee. During December, they want to replace it with Christmas Edition Coffee (Special Packaging).

• When you enter "Classic Coffee" in the Sales Order, SAP automatically changes the line item to "Christmas Edition Coffee" because it's December.

⚙️ Configuration Steps (SD)

1. Define Strategy (SPRO): Go to Sales and Distribution > Basic Functions > Material Determination.
• Create a Condition Table (e.g., Sales Org/Material).
• Create an Access Sequence (the search order for the rule).
• Create a Condition Type (Standard is A001).
2. Assign Procedure: Link the procedure to your Sales Document Type (e.g., OR for Standard Order).
3. Define Substitution Reason: Create a reason code (e.g., 0001 - Promotion). You can choose if the system should show a Pop-up for the user to choose or just replace it automatically.
4. Create Master Data (VB11):
• Enter the Original Material and the Substitute Material.
• Set the Validity Dates (e.g., Dec 1 to Dec 31).

 2. SAP MM/PP: Material Discontinuation (Substitution in MRP)

This is used in Materials Management (MM) or Production Planning (PP) when a part becomes obsolete or is replaced by a newer version (Engineering Change).

The Concept: Supersession is used when a product evolves. It manages "interchangeability"—the relationship between an old part and its newer, improved successor. It ensures that you don't waste old stock while moving toward the latest technology.

• Key Driver: Obsolescence, Design Updates, Engineering Changes.
• Module: MM/PP (MRP).
• T-Code: MM02 (Material Master).

 📌 Simple Example

A car manufacturer changes a bolt design from Bolt V1 to Bolt V2.

• The system knows you have 10 units of Bolt V1 left.
• A production order needs 15 units.
• SAP will use the remaining 10 units of V1 first and then automatically trigger a requirement for 5 units of V2. This ensures no stock is wasted.

⚙️ Configuration Steps (MM)

1. Update Material Master (MM02): Go to the MRP 4 view of the Old Material.
• Discontinuation Indicator: Set to 1 (Simple discontinuation).
• Effective-Out Date: Enter the date the part becomes obsolete.
• Follow-up Material: Enter the code for the New Material.
2. Update BOM (CS02): If the part is used in production, ensure the follow-up material is also added to the Bill of Materials.

3. SAP MM: Supersession (Interchangeability)

Supersession is a more advanced version of substitution used primarily in Service Parts or Procurement. It allows for complex "chains" of replacement.

• Key Driver: Technical compatibility (A replaces B, B replaces C).
• Module: MM (Procurement/Service Parts).
• T-Code: PIC01 (Interchangeability).

📌 Simple Example

A printer manufacturer releases a "New & Improved" ink cartridge.

• One-way Supersession: The new cartridge works in the old printer, but the old cartridge does not work in the new printer.
• Two-way (Full Interchangeability): Both parts are identical in function and can be used interchangeably in any situation.

⚙️ Configuration Steps (Supersession/PIC01)

1. Global Settings: Enable "Manufacturer Part Number (MPN)" in SPRO > Logistics - General > Material Master.
2. Create FFF Class (MM01): Create a material with type FFFC (Form-Fit-Function Class). This acts as a "folder" that groups all interchangeable parts together.
3. Maintain Interchangeability (PIC01):
• Enter the FFF Class.
• Link the Old Material and New Material.
• Define the Direction (Forward replacement or Fully interchangeable).

🎯 Summary for the User

Feature	Substitution (SD)	Discontinuation (MM/PP)	Supersession (PIC01)
When to use?	Marketing/Promotions	Retiring old parts	Technical compatibility
Logic	Replaces it immediately	Uses up old stock first	Complex replacement chains
Main T-Code	VB11	MM02 (MRP 4)	PIC01

 

The material description is presented on the Purchase Requisition's language and not on the user language in the SAP transaction MIGO

Here I am explaining the reason behind the different language usage of the material description in case of purchase requisitions and its subsequent postings, like the goods receipt posting in MIGO.

According to the standard system design it can happen that the material description is not displayed on the user's language but on the language of the purchase requisition.      

Explanation                

When we create a Purchase Requisition (ME51N), the document is created in the logon logon language (field EBAN-SPRAS).                                       
The language is not displayed in the document. We can only see it on the database.                                                  
 

Example:                                                                         
In ME51N:                                                             
->if we are logged on 'FR' we will see the material short text in 'FR' 
->if we are logged on 'EN' we will see the material short text in 'EN' 
                                                                         
But once the Purchase Requisition has been created, in ME53N:                                   
-> if we are logged on 'FR' or 'EN' we will only see the material short text depending on what we have in EBAN-SPRAS field.

This means that if it was created in 'EN', even if now we are logged on 'FR' we will see in 'EN'.                     
                                                                         
The program will select the following fields:
EBAN-MANDT                                                               
EBAN-BANFN                                                               
EBAN-BNFPO                                                               
EBAN-TXTZ01                                                              
EBAN-SPRAS                                                               
                                                                         
So if we created in 'EN' we will only see the material short text in 'EN' in ME53N. If we created in 'FR' we will only see the material short text in 'FR' in ME53N.

As a consequence, the document creation language will be considered in subsequent postings like the Purchase Order (ME23N) and the Goods Receipt (MIGO), even that logon language is different.  

Foreign Trade Data view in SAP Material Master

 

Commodity Code/Import Code Number for Foreign Trade

The Commodity Code field relates to the harmonized system for the description and coding of merchandise. If selected, the commodity code is used for statistical purposes and must be declared to the regulatory authorities for foreign trade transactions.

 

Examples of this are Intrastat and Extrastat in the European Union and the Automated Export System (AES) in the United States.

 

Commodity codes are defined in table T604 and can be configured by following the

navigation path Sales and Distribution _ Foreign Trade/Customs _ Basic Data for Foreign Trade _ Define commodity Codes/Import Code Numbers by Country.

 

Export/Import Group

This four-character code is a grouping for similar materials based on import and export attributes.

 

Export/import group information can be found in table TVFM and can be configured by following the navigation path Sales and Distribution _ Foreign Trade/Customs _ Basic Data for Foreign Trade _ Define Material Groups for Import/ Export.

 

CAS Number for Pharmaceutical Products

This field is only required if the material has a CAS number that is a key to the descriptions given by the World Health Organization (WHO) for customs-free materials.

A CAS number can be defined by using Transaction VI36 or by following the navigation path Sales and Distribution _ Foreign Trade/Customs _ Specific Data for Customs Processing _ Define CAS Numbers.

 

PRODCOM Number for Foreign Trade

This field is used to enter a PRODCOM number in EU countries and allows for harmonized production statistics in the European Union. PRODCOM numbers can be configured by using Transaction VE47.

 

Control Code for Consumption Taxes in Foreign Trade

This field is used for consumption taxes in foreign trade.

Origin/EU Market Organization/Preferences

In this section, we’ll cover the Country of origin and Region of origin fields, which are particularly relevant when using a Certificate of Origin document.

Country of Origin

A country of origin must be specified for export documentation. The material will often require a Certificate of Origin to be printed and included in the shipping documents.

The Country of origin field uses country abbreviations.

Region of Origin

The region of origin—a state in the United States, a county in the United Kingdom, a  province in Australia, and so on—can provide more information about where the

material originated for documentation.

Influence of Material Type / Material Type: Control Factors Relevant to Purchasing

         When we create a material master record, we must assign a material type, such as raw material or semi finished product to the material.

•  In the standard system, the material type ROH (raw material) specifies that all materials of this type are procured externally.
• A material of the type NLAG (non-stock material), on the other hand, can either be procured externally or produced in-house.

 

                     The material type determines the selection of the accounts to which postings can be made when a material moves into or out of the warehouse or stores. In addition, the material type determines the number range of the material number and the type of number assignment – whether the number is assigned internally by the system or externally by the user.

 

Generally the material type determines or controls the following:

Ø  The business use of the material
Ø  The type of number assignment
Ø  The data screens that are displayed and the order in which they appear
Ø  The user department data that can or must be entered
Ø  The procurement type of the material; whether the material is produced in-house or procured                   externally or whether both are possible
Ø  The updating of quantities and values in the relevant valuation areas

 A material type can also be assigned to a special transaction for creating material master records.

 We can define attributes of material types in Customizing for Logistics - General under Material Master → Basic Settings → Material Types → Define Attributes of Material Types (OMS2).

 To change the material type, on the SAP Easy Access screen, choose Logistics → Materials Management → Material Master → Material → Change Material Type (MMAM).

 Note: If we notice that the wrong material type is being used for a material master record, we can still change the material type later. The prerequisite for this is that there are no stocks and no open documents for the corresponding material.

 

Manufacturer Part Number (MPN) in SAP

In SAP MM we define materials which are used inside a company. These can be raw materials, semi-finished materials, finished materials, packing materials and many other types of materials. The material definitions are company specific and the same material names and numbers will be different if they are used for any other company.

When raw materials are procured from vendors, the manufacturer usages its own definition of materials when they procure. the vendors are forced to use this definition of materials.

In many cases, it is not possible for vendors to use this definition of materials. They have their own material definitions. In many cases, the vendor is actually a trader who procures materials from some other manufacturer and supplies materials to other manufacturers. This scenario results in a situation where there are 2 names for the same material. In such cases, how the vendor definition of materials and manufacturers definition of the same materials can be paired so that vendors can supply materials to the manufacturer without the confusion of material names?

In SAP MM there is a facility to pair these 2 types of definitions of the same material. A manufacturer part number (MPN) is created for each material number used by the manufacturer. This manufacturer part number is paired to the material number used by the manufacturer. Once this pairing is done then on the PO, the manufacturer puts the MPN number. After good receipt, the same material is stored with the manufacturer internal number.

There are some limitations as to how the MPN number and internal material number can be used in the SAP system. For instance, it is possible to create Info Record for both MPN number as well as the internal material number for standard Info Record category. But it is not possible to create Info Record for MPN number in case of consignment.

Manufacturer Part Number (MPN)

A material master record containing the manufacturer part number (MPN) and the manufacturer number, which is assigned to one of our firm's own materials.

Stocks are managed under your firm's own material number. Materials for manufacturer parts have the material type HERS.

The firm's own material contains a profile with various parameters defining (among other things):

• Whether  the MPN material must be entered in the purchase order
• Whether purchasing info records are created for the firm's own material or for the MPN materials
• Whether  the purchase order text for the firm's own material or for the MPN     material is used

If we wish to influence the precise source or quality of materials, we can tell the vendor from whom we want to procure a material which manufacturer the material is to be supplied by and the part number used by that manufacturer.

We can also tell our vendor exactly which of a manufacturer’s plants is to supply the material we wish to procure.

The manufacturer’s part number (MPN) and description, as well as the specific manufacturing plant (if applicable), are included in the data sent to the vendor with the purchase order.

Example :

Our vendor gets the steel bolts he supplies to you from the manufacturers Zenith Co. and Miller Corp.

However, we are not satisfied with the quality of the Zenith product. we wish to have the steel bolts that are manufactured by Miller Corp. we can advise our vendor of this in the purchase order by specifying the manufacturer and the MPN.

For procurement purposes, we can use the material or part number used by the manufacturer (MPN) alongside your firm’s own material number.

If we wish to check whether a certain manufacturer part may be ordered and used within our enterprise, we should make use of the approved manufacturer parts list (AMPL). The latter indicates exactly which of a manufacturer’s plants the materials included on the list are to be procured from.

Organizational Levels In Material Master

• Some material data is valid for all organizational levels, while some is only valid for certain levels. The material master is designed to reflect the structure of your enterprise so that you can manage the material data in your enterprise centrally, without overloading your datasets with redundant information.
• Data at client level: General material data that is valid for the whole company is stored at client level.
• Data at plant level: All data that is valid within a plant, and for all storage locations in it, is stored at plant level.
• Data at storage location level: All data that is valid for a particular storage location is stored at storage location level.