RE:[sap-log-mm] Handling of two units of measure with dynamic conversion depending on stock quantity
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 | Posted by ha_tran (Senior SAP Supply Chain Business Analyst) on Mar 23 at 8:00 PM |  Mark as helpful |
Hi,
1) The purchasing unit of measure problem can be easily dealt with through either -
a) Requesting the vendor to quote in PACK; or
b) Use the Purchasing order price unit in the purchase order to correctly valuate your GR receipted quantity
2) If the purchasing unit of measure is solved, then I don't think the batch management is required any longer as all deliveries are receipted on the PACK basis and therefore, no conversion is required.
Cheers,
HT
---------------Original Message---------------
From: USER_1946179
Sent: Thursday, March 18, 2010 2:58 PM
Subject: Handling of two units of measure with dynamic conversion depending on stock quantity
> Our client (Paper Mill) has the following business scenario, which we need to model in SAP:
>
> They purchase raw material (recycled paper) for their production process in KG. When the supplier arrives, the recycled paper comes in packs (the KG per PC varies from pack to pack). The truck is weighed in order to register the total amount in KG. Their actual system allows them to register the number of packs as well. The system calculates the average KG/PC of the batch depending on the number of packs and total weight.
>
> The problem is that not every goods receipt from every supplier creates a new batch. Instead, it is assigned to an existing batch (of several suppliers) based on quality and due to storage and material handling limitations. Every time a goods receipt is assigned to an existing batch, the system recalculates the average KG/PC of the batch depending on the resulting number of packs and total weight.
>
> In production consumption, they register the amount of packs consumed instead of the actual weight, because the process is so fast that they don't go through the hassle of weighing every pack before throwing it to the pulper. The system internally calculates the amount in KG (based on the the unit conversion for that moment) and reduces the stock.
>
> As you can see, the conversion of PC to KG is dynamic, because it always depends on the amount of packs in stock, and the total batch weight in KG at a particular time.
>
> I have tried using batch-specific units of measure, defining material base unit in KG and batch unit in PC. It would work fine if every goods receipt were a different batch, but the problem arises when we try to assign an existing batch (i.e. with an existing unit conversion) to the new goods receipt. When I enter the amount of packs received, SAP uses the existing batch's unit conversion and calculates the weight, which obviously doesn't match the real weight read by the scale, and the system doesn't let me introduce both units (PC and KG). In order to post the goods receipt, I have to previously modify the batch's unit conversion (MSC2N) so it matches my real weight. But after posting, that unit conversion is out-of-date. I would have to modify again the batch and enter the new unit conversion based on the resulting batch stock in packs and weight.
>
> Please advise if anyone has handled this business scenario before with standard SAP functionality.
>
> Thanks,
>
> Felipe
__.____._ 1) The purchasing unit of measure problem can be easily dealt with through either -
a) Requesting the vendor to quote in PACK; or
b) Use the Purchasing order price unit in the purchase order to correctly valuate your GR receipted quantity
2) If the purchasing unit of measure is solved, then I don't think the batch management is required any longer as all deliveries are receipted on the PACK basis and therefore, no conversion is required.
Cheers,
HT
---------------Original Message---------------
From: USER_1946179
Sent: Thursday, March 18, 2010 2:58 PM
Subject: Handling of two units of measure with dynamic conversion depending on stock quantity
> Our client (Paper Mill) has the following business scenario, which we need to model in SAP:
>
> They purchase raw material (recycled paper) for their production process in KG. When the supplier arrives, the recycled paper comes in packs (the KG per PC varies from pack to pack). The truck is weighed in order to register the total amount in KG. Their actual system allows them to register the number of packs as well. The system calculates the average KG/PC of the batch depending on the number of packs and total weight.
>
> The problem is that not every goods receipt from every supplier creates a new batch. Instead, it is assigned to an existing batch (of several suppliers) based on quality and due to storage and material handling limitations. Every time a goods receipt is assigned to an existing batch, the system recalculates the average KG/PC of the batch depending on the resulting number of packs and total weight.
>
> In production consumption, they register the amount of packs consumed instead of the actual weight, because the process is so fast that they don't go through the hassle of weighing every pack before throwing it to the pulper. The system internally calculates the amount in KG (based on the the unit conversion for that moment) and reduces the stock.
>
> As you can see, the conversion of PC to KG is dynamic, because it always depends on the amount of packs in stock, and the total batch weight in KG at a particular time.
>
> I have tried using batch-specific units of measure, defining material base unit in KG and batch unit in PC. It would work fine if every goods receipt were a different batch, but the problem arises when we try to assign an existing batch (i.e. with an existing unit conversion) to the new goods receipt. When I enter the amount of packs received, SAP uses the existing batch's unit conversion and calculates the weight, which obviously doesn't match the real weight read by the scale, and the system doesn't let me introduce both units (PC and KG). In order to post the goods receipt, I have to previously modify the batch's unit conversion (MSC2N) so it matches my real weight. But after posting, that unit conversion is out-of-date. I would have to modify again the batch and enter the new unit conversion based on the resulting batch stock in packs and weight.
>
> Please advise if anyone has handled this business scenario before with standard SAP functionality.
>
> Thanks,
>
> Felipe
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ha_tranSAP Logistics Material Management Helper
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