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    1 Batch Specific UoM and Active Ingredient Management

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    pooja
    This document discusses batch specific unit of measure (UoM) and active ingredient management in SAP R/3. It describes how active ingredients are components of products that can vary by batch, with goods movements tracked in physical quantities but valuation, planning, and sales based on active ingredient amounts. Batch specific UoMs allow defining conversion ratios from the base unit for each batch to account for variable composition between batches. This enables activities like material tracking, valuation, planning, and sales to be based on the active ingredient quantity for each unique batch.

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    1 Batch Specific UoM and Active Ingredient Management

    Uploaded by

    pooja
    152 views2 pages
    This document discusses batch specific unit of measure (UoM) and active ingredient management in SAP R/3. It describes how active ingredients are components of products that can vary by batch, with goods movements tracked in physical quantities but valuation, planning, and sales based on active ingredient amounts. Batch specific UoMs allow defining conversion ratios from the base unit for each batch to account for variable composition between batches. This enables activities like material tracking, valuation, planning, and sales to be based on the active ingredient quantity for each unique batch.

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    This document discusses batch specific unit of measure (UoM) and active ingredient management in SAP R/3. It describes how active ingredients are components of products that can vary by batch, with goods movements tracked in physical quantities but valuation, planning, and sales based on active ingredient amounts. Batch specific UoMs allow defining conversion ratios from the base unit for each batch to account for variable composition between batches. This enables activities like material tracking, valuation, planning, and sales to be based on the active ingredient quantity for each unique batch.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    152 views2 pages

    1 Batch Specific UoM and Active Ingredient Management

    Uploaded by

    pooja
    This document discusses batch specific unit of measure (UoM) and active ingredient management in SAP R/3. It describes how active ingredients are components of products that can vary by batch, with goods movements tracked in physical quantities but valuation, planning, and sales based on active ingredient amounts. Batch specific UoMs allow defining conversion ratios from the base unit for each batch to account for variable composition between batches. This enables activities like material tracking, valuation, planning, and sales to be based on the active ingredient quantity for each unique batch.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Batch Specific UoM and Active Ingredient

    Management
    This document discusses the Batch Specific UoM and Active Ingredient Management
    functionalities of SAP R/3. It is a useful document to understand the role of Batch
    Specific UoM in the areas of Procurement / MRP / Manufacturing / Sales.

    What is Active Ingredient?

    In some industry sectors, the composition of products or


    components contains one or more “ACTIVE INGREDIENTS”. In addition to active
    ingredients, material is made up of carrier materials like water or other
    impurities. The proportion of the active ingredient in a batch is not always fixed.
    These materials are handled in logistics in batch management, using active
    ingredient management.

    Goods movements and stock movements for these materials are carried out in
    physical quantities Valuation, costing, availability checks, sales and planning,
    however, are carried out on the basis of the active ingredient quantity.

    Where this function commonly used?

     Pharmaceutical Industry,
     Chemical Industry,
     Food Industry,
     Textile Industry,
     Steel Industry and
     Paper Industry etc.

    The active ingredient management is handled through Batch Specific UoM.

    Batch Specific Unit of Measure

    The batch-specific material unit is an alternative unit of measure of a material, for


    which you can define the conversion ratio into the base unit of measure on a
    batch-specific basis.

    Materials in which the composition or attributes of the product vary to some


    degree. Therefore a fixed conversion factor cannot be used to convert quantities
    of these products from into various units of measure. Instead, each batch has to be
    given an individual conversion factor.
    Business Benefits of Batch specific UOM

     Material can be tracked though out the logistics chain in alternate UOM
    which has dynamic conversion ratio. This will reduce creation of different
    materials for every conversion ratio.
     Conversion ratio can be calculated automatically by inputting factors of
    batch dependencies if they are known. Material valuation of batch is
    possible on the basis of batch specific UOM. Material value is determined
    based on the amount of active ingredient or conversion ratio.
     Material requirement planning can be done according to variable conversion
    ratio. MRP uses inventory correction factors to consider the actual
    proportion of stock available at plant and storage location level.
     Sales price determination is possible using the product or proportion
    quantity the product may contain. Sales price is updated depending on the
    material batch data.

    Batch Specific UoMs consists of two components Proportion Unit and Product Unit:

    Proportion Unit

    Units of measure in which you can enter proportions of the base unit of a material.
    The total quantity or physical quantity may be made up of several proportions.

    Chemical consists of many ingredients. For e.g. 1 ltr of Orange Juice contains 30 g
    of Vitamin C, Also this proportion is variable based on the batch. Goods movement
    and stock movement is carried out in ltr of orange juice (physical quantity)
    whereas valuation, planning, and availability check is carried out for vitamin C
    (Active ingredient).

    PROPORTION UNIT

    Batch

    Number

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