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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.
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
1. Prop. Of AI in
DRUG SUBS
Base UoM
Alt UoM
batch
(kg)
(AI)
(%)
A101
100
95
95
B101
200
198
99
C101
50
45
90
Product Unit
Units of measure that describes the total quantity of a material as an alternative to the base unit of measure.
For example, a piece in a particular batch weighs 10 kilograms in total or a pipe is 1250 millimeters long.
Certain materials transactions are used not only in their base UOM but also in alternate UOM. There will be
certain situation where a conversion ratio (CR) between Base UOM and alternate UOM is not fixed. Even
in this scenario it is possible to use the conversion ratio between two UOM for all the stock monitoring and
transactions.
PRODUCT UNIT
Batch
Number
STEEL PIPES
Conversion
Ratio
Base UoM
Alt UoM
(nos)
(kg)
(kg/nos)
A101
10
1000
100
B101
20
1000
50
C101
15
1125
75
The indicator for Leading Batch Specific UoM needs to be checked to enable the
system to consider this in terms of Material Requirements Planning (MRP) and Availability
Check. This will be further discussed in the subsequent sections.
The indicator for Valuation based on Batch specific UoM needs to be checked to
maintain a valuation price for this UoM, that acts as a basis for valuating batches based on this
proportion quantity / product quantity.
Valuation for the single batch is used to keep the price and value of each individual batch in inventory
management on a value basis. Valuation for single batch is activated using the Valuation Category X.
If price is maintained for valuation relevant characteristic in the respective plant, the system sets the
Valuated UoM indicator in the Accounting 1 view of the material master record.
SAP Menu --> Quality Management --> Quality Planning --> Inspection Planning --> Inspection Characteristic -> QS21 Create
SAP Menu --> Production Process --> Master Data --> Master Recipes --> Recipe and Material List -->
C202 Change
Batch A001
Batch B001
Physical Quantity
100
200
KG
Actual Proportion of AI
90
80
Proportion Price / AI
1000
1000
USD
Proportion Quantity
90
160
KAI
Proportion Value
90000
160000
USD
Value of Batch
90000
160000
USD
Price of Batch
900
800
USD / KG
SAP Menu --> Logistics --> Central functions --> Batch Management --> Batch specific UOM --> Standard
Price --> Create (MWB1)
When the standard price per unit of AI in material is changed, the system automatically calculates
the standard price per kg of the material and updates it in the material master. For example if Price of
150 USD is maintained per AI, the system uses the planned conversion factor of 97.50% stored in the
material master Proportion/Prod. Unit to calculate the standard price of 146.25 (150 *97.50%) per kg
of the material as per the following screen shot:
As shown in the above PO, the Order Unit is KG, whereas the Order Price Unit is AI.
Post GR against the Purchase Order we go for the QM results recording where we will get the actual
conversion factor / actual proportion of active ingredient in the batch. As per the below screen shot
the actual conversion factor is found to be 90 % whereas the planned conversion factor maintained in
the material master is 97.50%.
The system proposes to correct the PO history based on the inspection lot results using transaction
MWBQ at the time of saving Usage Decision.
Alternatively the path for the MWBQ transaction is
SAP Menu --> Logistics --> Central functions --> Batch Management --> Batch specific UOM --> Subsequent
Adjustment f. Goods Receipt MWBQ --> Enter with Ref. to Insp. Lot.
On executing the transaction after entering the appropriate inspection lot number, the system posts a material
document for correcting the PO history, i.e. to debit the PO based on the actual conversion factor obtained
through QM results recording.
As shown above, now as the actual proportion of the active ingredient in the batch is 462.463 AI
(513.848 * 90%), vendor would be invoiced for the amount of 69369.450 (462.463 * 150) instead of
the amount earlier calculated on the basis of planned conversion factor of 97.50 %.
Now as the actual conversion factor is always different from the planned conversion factor, the
system takes into consideration the actual proportion of active ingredient in the batches that are
there in stock to calculate a conversion factor that is further used in the MRP planning instead of the
planned conversion factor.
Now consider the following example to see how the system calculates the inventory correction factor:
Batch
0000000731
Physical Quantity (KG)
234.959
229.085
211.463
17.622
7.692
92.308
The system calculates inventory correction factor using the report RVBWSCOR. To start the report,
choose
Logistics --> Central Functions --> Batch Management --> Batch-specific Units of Measure --> Determine
Inventory Correction Factor.
Appropriate radio button needs to be selected to Calculate & Display / Calculate & Update the
Inventory correction factor in the system. Also batches with zero stock / having restricted status /
having blocked stock can be included or excluded in the calculation of inventory correction factor.
Also whether the list output of batches along with the correction factor should be displayed can be
controlled through appropriate selection factors.
Kindly note that we have considered only one batch for the calculation of Inventory correction factor.
In actual scenario there can be many more batches with varying content of actual proportion of active
ingredient in each batch. In such cases, the system calculates the variance for each batch and then
cumulates all variances to calculate the Inventory Correction Factor.
A so that in the final composition of the Product P, the proportion of Component A would be 50.2 %.
The BOM is for tablets having batch size 500 kg / 10, 00,000 tablets.
1. 250.5
AI
Filler 1
1. 150.5
Kg
Filler 2
1. 99.0
Kg
Now since the proportion of the active ingredients in the raw material batches is not fixed, we need
to calculate the amount of material that we need to take from each batch in KG to get the desired
amount of AI. Also in order to keep the total lot size of the finished product constant we need to adjust
the quantities of other raw material components in the BOM commonly known as fillers. Following is
an example of how Material quantities are calculated manually:
Now in order to fulfill our active ingredient requirement of 250.5 AI, we take 147 AI from batch B-990
and another 103.5 AI from batch B-991. This works out to be 150 kg and 112.5 kg of material in
physical UoM respectively. Considering the total quantity of component now to be 262.5, we need
to decrease the quantity of one of the filler material to maintain a constant batch size for the finished
product as 500 kg. So as per the below calculation, the requirement quantity of Filler 2 is reduced
from 99.00 kg to 87.00 kg.
Adjustment in Filler 2 Qty:Actual Filler 2 Qty = Total Batch Size - Filler 1 Qty - API Qty in kg
Actual Filler 2 Qty = 500-150.5-262.5 = 87.000 kg
Total Batch Size 500 kg = 262.5(API) +150.5(F1) +87.000(F2)
Kindly note that we have taken a simple example here for our understanding of the concept. There
can be other complex scenarios in pharmaceutical as well as other industry sectors like chemicals,
paper, textiles etc.
The above screen shot shows the formula maintained for Filler 2 BOM component. The function
CQSM (Quotient Sum of added up Weighted batch quantities or characteristic values) has been
used in the formula of Filler 2 quantity calculation. This function is used to calculate the total of
the physical batch quantities from the active ingredient quantities of batches based on the active
ingredient concentrations. Similarly other functions of the Material quantity calculation can be used to
define formulae as and when required.
As shown above, we have two batches of Active Ingredient Material 3691 - 0000000990 &
0000000991 with physical quantities of 149.500 kg and 148.500 kg respectively. But since the
potency of the batches is 98 % and 92 %, the active ingredient proportion (quantity) in them is
146.510 AI and 136.620 AI respectively.
Select the marked button above in Materials screen of the process order to execute batch
determination for the selected component (Active Ingredient material). The system proposes the
batches for the raw material based on the Batch Search Strategy (Selection Criteria and Sort Rule)
defined in Customizing. Appropriate batches are selected and batch determination results are copied
to the process order.
Once the batch determination is completed, click on Material Quantity Calculation icon to go for
calculation of the component quantities and product quantities. As per the formula entered in the
master recipe, it has recalculated the Filler 2 component quantity from 98.50 kg to 91.167 kg. These
results are copied into the process order on clicking on the Execute button. Similarly if a
formula is entered for re-calculating the process orders header material quantity, the
The principal advantage of MQC is that it eliminates the need of manual calculation that has to be
done for every process order that contains active ingredient as a raw material component. Thus it
reduces the possibility of human error.
Configuration Settings
Define UoM in Global Data
SPRO --> SAP Net Weaver --> General Settings --> Check Units of Measurement
SPRO --> LogisticsGeneral --> Batch Management --> Batch-Specific Material Units of Measure -->
Calculate Proportional Factors --> Define Calculation of Proportion Quantity from Base Quantity