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