# Batch specific units of measure- step by step configuration for Steel industry

Introduction:

In some industry sectors (for example, the pharmaceutical, chemical, steel, or paper industry sectors), the composition or attributes of products vary to some degree. Therefore, you cannot use a fixed conversion factor to convert quantities of these products into various units of measure. Instead, each batch has to be given an individual conversion factor.

This component allows you to handle materials like these throughout the entire logistics chain.

Batch specific unit of measure:

Alternative units of a material for which the conversion ratio to the base unit of measure can be defined on a batch-specific basis.

Batch-specific material units of measure are:

• Proportion units (Active ingredient management)

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.

For example, 100 milliliters of a particular batch of fruit juice contain 30.0 milligrams of vitamin C and 10.5 grams of sugar, as well as the fruit juice proportion.

• Product units (Product quantity management)

Unit 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.

Integration:

For conversion of total quantities to batch-specific quantities, such as proportion quantities or product quantities, generally:

• the planned conversion factor is stored as a characteristic in the material master record
• the actual conversion factor is stored in the batch master record.

Until the batch or actual conversion factor is known, the system uses the planned conversion factor from the material master record to calculate the batch-specific quantities.

Once the batch or actual conversion factor is known, the system uses the actual conversion factor from the batch master record to calculate the batch-specific quantities.

The planned interval for the conversion factor is stored in the material master record. At goods receipt or when a new batch is created, the system checks whether the conversion factor entered lies within the material’s planned interval.

There are 3 UOM has to be used in this scenario

Base UOM and Batch speciifc UOM should not be belonged to same dimension.characteristic unit also should be dimension less unit and it is decided base on the business scenario.

Eg: KG – dimension (mass)  and PC – (Dimension less)

1. Base unit of measure – which could be order unit or order price unit/valuation unit

2. Batch specific UOM(Product unit)    – which could be order unit or order price unit/valuation unit

Base UOM               or  Batch specific UOM

3. characteristic UOM =  ————–                     ———————

Batch specific UOM              Base UOM

Example:

In the following example we are going to see the practical scenario

A steel pipe of length between 2 m – 2.10 m . Weight per piece varies between 100 kg/pc to 110 kg/pc in each batch .Material order unit is PC and order price unit is KG .

I.PRODUCT QUANTITY MANAGEMENT

Test Data:

Material(A steel pipe)                                                    : 110051

Base unit of measure                                                    : KG

Batch specific unit of measure(Product unit)                      : PC

Unit of measure for characteristics                                   : KGP (KG per piece)

(Create UOM using T-code CUNI)

Configuration Data

1. Activate batch specific material unit of measurement

IMG –> Logistics -General –> Batch management –>Batch specific material unit of measurement –>activate batch specific material unit of measure

2. Edit batch specific material unit of measurement

IMG –> Logistics -General –>Batch management –>Batch specific material unit of measurement –>Edit batch specific material unit of measure

3. Product quantities conversion: Define calculation of base quantity from product quantity

IMG –> Logistics -General –> Batch management –> Batch specific material unit of measurement –>product quantity conversion –> Define calculation of base qty from product qty

In our scenario we know the number of pieces(product qty) ,from which we are determining the base quantites .If it is other way ,you have to use another option ” define calculation of product qty from base qty”

Use the weight per piece as the characteristic for this batch. Use
kilogram per piece as the unit of measure for this characteristic. (Base
unit is kilogram, product unit is piece).

Activities

1.  Enter the unit of measurement that should be used in the
characteristic, for example, kilogram per piece.

2.  Enter the base unit and the product unit that you want to use for
the calculation, for example kilogram and piece.

Master data setup

4. create material with batch management active and variable order unit active

As we are using different order unit and OPU ,we have to activate this setup

5. Create characteristics for weight per piece T-code :CT04.

Maintain the value range 100 – 110 KGP. During GR the system allows within this range.

6. Create class with organization area -S

In order to appear at material master level ,this class and the corresponding characteristics has to be assigned with organisation area – S

7. Assign class to material master – MM02

8. Maintain conversion factor at material master level

MM02 —> additional data –> Proportion/product unit

Unit of measure usage :

Alternative unit of measure

A   Proportion unit,  B   Product unit

Select product unit .Characteristics with org area- S appears here

Transactional data:

Conversion factor at material master level    1 PC  = 100 KG

Conversion factor at batch   level                 1 PC  = 103 KG

1. Create Purchase order with order unit as PC and order price unit as KG

System uses conversion factor material master as batch not yet created.

2.Goods receipt against PO

3. Material document with 2 unit of measurements

4. Stock overview

UOM:KG

UOM:PC

References:

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1 Comment
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Thanks for presenting the scenario in an erudite manner with appropriate use of screenshots enabling a better understanding of the concept.

I am sure your blog helps in meeting a customer specific requirement without actually going for an enhancement. Thanks for sharing your expertise.

-Krishnan