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RE:[sap-log-mm] Inventory Management of LPG in SAP MM

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Reply from ChrisO on Jul 27 at 10:06 AM
Two questions.

1. Are you just selling the LPG (in either form) to customers or also consuming it yourself?
2. Do your customers of LPG in cylinders return the empty cylinders to you (for you to return to the vendor) or to your vendor directly...?


---------------Original Message---------------
From: aftabkhan_dk
Sent: Tuesday, July 25, 2017 5:01 AM
Subject: Inventory Management of LPG in SAP MM


Following is a brief summary of our query regarding inventory management of LPG (Liquid Petroleum Gas) with SAP MM module.

1. Company 'A' has five storage plants with LPG storage tanks and warehouses.
2. Company 'A' procures LPG from local vendors and also thru import.
3. LPG is procured in Metric Tons (MTO) and stored in bulk tanks located at different Plants (also in MTO).
3. LPG is also stored in Cylinders of various sizes (11.8,45.4,30,2,6,18,9.786), the unit of measurement in this case is KG.
4. Cylinders are procured as Asset and is treated as a returnable item from customers. Furthermore, stock of filled and empty cylinders is maintained and monitored at various Plants.
5. There are two types of customers i.e Retail (dealers and individuals) and Bulk (commercial customers)
6. Retails sales is made thru cylinders in KGs
7. Bulk sales is made in MTO & Litres

Following are the formulas for conversion of LPG quantities in different UOMs

a. Tons to Liters -> (qty*1000)/0.564
b. Liters to Ton -> (qty*0.564)/1000
c. Cyls to Tons -> (qty*weight of cyls)/1000, for example: (qty*11.8)/1000

Would certainly appreciate if someone guide me how to configure LPG inventory management and its conversion to different UOMs and containers (empty and filled cylinders).



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