Active Ingredient Management and

Batch Balancing

Applies to:
SAP SCN Consultants, SAP ECC 6.0.For more information, visit the Supply Chain Management homepage.

Summary
Materials may contain one or more active ingredients. In addition to active ingredients, the material is made up
of carrier materials, such as water and other components such as impurities. These materials are handled in
logistics in batch management, using active ingredient management. During Invoice Verification, the system
reduces the price proportionately as per the lab result which determines the percentage of Active Ingredient
content in the mixture. Depending upon the Process Order quantity, the system selects and adjusts with multiple
batches. This phenomenon is called Batch Balancing.

Author: Raguthama Sharma

Company: Intelligroup Asia Private Limited

Created on: 30th August 2009

Author Bio
Raguthama Sharma has thirty one years of work experience in Engineering Industries.
He is working as a senior consultant for PP and QM Module, in SAP SCM department of
Intelligroup Asia Private Limited since December 2003.
He has over 8 years of Experience in handling various SAP PP/QM Projects including
Implementation & support projects.

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Table of Contents
Introduction ......................................................................................................................................................... 3
1. Process Flow. ................................................................................................................................................. 4
2 Customization steps are given below............................................................................................................ 10
3 Master Data ................................................................................................................................................... 13
Related Content ............................................................................................................................................ 23
Disclaimer and Liability Notice ......................................................................................................................... 24

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Introduction
The combination of carrier materials and active ingredients is called the physical quantity or mixture.
The amount of "active" chemical proportion in the mixture is called the Active Ingredient Quantity.
The active ingredient proportion of the total quantity can vary between batches. However, the ratio in a batch
between the active ingredient quantity and the physical quantity remains constant within each batch. This
means that when posting, just one of the two quantities must be entered, as the system can calculate the other
quantity.
The batch qty is always in a std. UOM.
Active Ingredient UOM is maintained in additional data.
System does the Valuation Split automatically.
Each Batch is the Valuation Split component.
Each Batch has a accounting view.
Each Batch has a unique price Batch and its unique price has a one is to one relation.

Batch Balancing

While determining the batch and its qty. BATCH BALANCING, in Process Order the following steps are
carried out.
System calculates the active ingredient qty from batch qty, depending upon the percentage of Active Ingredient.
This percentage is the actual test result which is entered in Result Recording Screen.
System proposes different multiple batches of Active Ingredient qty to match the Process Order requirement
quantity
This process is called BATCH BALANCING.

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1. Process Flow.
1.1. Create Purchase order and do Goods Receipt.
1.2. System generates Inspection lot.

Active Ingredient Qty. 15 KI1 entered in Purchase Order.

Inspection Lot Qty.--> Mixture Qty. 17.647
Mixture Qty. Active Ingredient Qty. in Purchase Order / Percentage defined in
Material Master.
15 KI1 / 0.85 = 17.647.

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1.3. Enter the inspection result 62%

1.4. Do the usage decision and inventory posting to unrestricted stock is carried out.
1.5. Do the adjustment posting for the GR Inspection lot.

Enter an adjustment posting for the goods receipt that records the difference between the planned value of the
active ingredient and the actual value posted. Then display the purchase order history.
Menu Path

Logistics Central Functions Batch Management Batch-Specific Units of Measure Subsequent

Adjustment f. Goods Receipt Enter With Ref. to Insp.Lot
Transaction Code - MWBQ;

1.6. Check Batch value

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1.7. Material Master Price for the batch

System does the Valuation Split automatically.
Each Batch is a Valuation Split component.
Each Batch has a accounting view.
Each Batch has a unique price Batch and its unique price has a one is to one relation.

Each Batch is a Valuation Type component.

17 Batches are found 17 Accounting View.
Each Batch has a specific Accounting View and a specific Price.

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1.8. Invoice Verification

Purchase Order Detail P.O. Price is 10 EURO per KI1.

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Inspection Lot Qty. Purchase order Qty. / Potency without batch (First time defined)
15 KI1 / 0.85 17.647 KG.

System proposes new value in Invoice Verification The price is not changed.
But the quantity is changed according to the test results.
(a) GR Qty. 15 KI1
(b) Inspection Lot Qty 17.647 ( 15 KI1 / 0.85 17.647 KG) 85 % Potency without
(c) Invoice Verif. Qty. [(15 KI1 X 62) / 85 ] 10.941 KI1 (Recorded Result 62%)
Test result of the batch is 62 %.
Hence the quantity applicable for payment
(P.O. Qty X Test Result) / Material Mater defined percentage
(15 X 62) / 85 10.941 KG.

(d) Invoice Verification Value 10.941 KI1 X 10 EURO 109.410 EURO.

The price is reduced to 109.410 from 150.000 Euro.

Depending upon the test results the system proposes the new price, according to the actual test result entered
in the result recording screen.
1.9 BATCH BALENCING
1.9.1 Create Process Order.
Change Process Order - Material List View. (Processing Components View)

.Select the line item and click Execute Batch Determination.

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As qty. is small, only one batch is proposed.

As the qty. is more, system proposes 4 batches.

Sorting of Batches and batch split can be defined as per the requirement of the user.
System calculates all Batches Qty. in KI1 UOM, according to the Potency
And required qty. is balanced in 4 Batches. Any number of Batch Split can be defined.
Here we have defined 4 Batch Splits. It checks the availability and selects the Batches.
This process is known as BATCH BALANCING.
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2 Customization steps are given below.

2.1: Global Setting for UOM KI1
Define KI1 Unit of Proportion of Active Ingredient in CUNI.
Global Settings Check units of measurement
Spro Transaction Code CUNI

Commercial and technical name is KI1.

KI1 and its details are defined in the transaction Code CUNI.
---------------------------------------------------------------------------------------------
2.2: Flag the check box Batch-Specific Material Unit of Measure active
Spro Logistics General Batch Management Batch-Specific Material Units of Measure Activate
Batch-Specific Material Unit of Measure
We get Activate Batch-Specific Material Unit of measure Screen.
Flag the check box Batch-Specific Material Unit of Measure active

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-
-------------------------------------------------------------------------------------------
2.3: Edit Batch-Specific Material Unit of Measure
Spro Logistics General Batch Management Batch-Specific Material Units of Measure Edit
Batch-Specific Material Unit of Measure
We get Batch-Specific Units of Measure(Prop. Units/Product Unit)

KI1 K Mass KG This is must.

---------------------------------------------------------------------------------------------
2.4: Define Percentage Calculation
Spro Logistics General Batch Management Batch-Specific Material Units of Measure Calculate
Proportional Factors Define Percentage Calculation

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System Defined Check.

2.5: Batch Determination and Batch Check

Assign Search Procedure to Process Order and Activate Check

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3 Master Data
3.1: Create Characteristic
This view is delivered with the standard system.
Create the characteristics in the classification system, for example, Active ingredient potency.
The characteristics must have the following attributes:
1.Numeric
2.Single value
3.Negative values are not allowed
4.Must be allocated to a class type of the category Batch
Choose a unit of measurement for an active ingredient characteristic, for example kai / kg (kilogram of active
ingredient/kilogram).

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3.2: Create Class.

Very Important Organization areas

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Assign Char. Potency to Class Potency.

3.3: Create Organization area for the charac. Potency.

Parameters to be filled.
CLA Class POTENCY
CAR Class Type 023
VIEW Organizational Area S

---------------------------------------------------------------------------------------------
3.4: Flag the Batch Management check box for the material 1691
in Plant Data / Storage View.

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3.5: Assign the class to the material in the Classification View.

3.6: Assign Alternate UOM in Basic Data.

MM02 Basic Data Additional Data UOM.
1KI1 = 1 Kg

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3.7: Assign Char. In Proportion / Product Unit in the Additional Data View.

- Valuation based on the batch-specific unit of measure

Flags a batch-specific unit as relevant for valuation.
Use
When the indicator is set, you can store a valuation price for this unit of measure that acts as a basis for
valuating batches based on this proportion quantity or product quantity.
Plan Value for the Char. Potency is 85%.

Save and check the Alternate UOM in Basic Data Addition Data

Now Alternate UOM in Basic Data Addition Data, gets updated accordingly.

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3.8: Accounting View setting

THIS IS VERY IMP. STEP SINGLE BATCH VALUATION VAL. TYPE X.

Step 9: Create Standard Price.
Logistics Central Functions Batch Management Batch-specific Units of Measure
Standard Price MWB1 - Create

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Related Content
http://help.sap.com/saphelp_45b/helpdata/en/fe/4f41537aa311d184ae0000e82013e8/frameset.htm
http://help.sap.com/saphelp_45b/helpdata/en/d4/6fbd35746dbd2de10000009b38f889/frameset.htm
http://help.sap.com/saphelp_45b/helpdata/en/38/a8b43446a1c564e10000009b38f83b/frameset.htm
For more information, visit the Supply Chain Management homepage.

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 Active Ingredient Management and Batch Balancing

Disclaimer and Liability Notice

This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not supported
by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade.
SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document, and
anyone using these methods does so at his/her own risk.
SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or code
sample, including any liability resulting from incompatibility between the content within this document and the materials and services offered
by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this document.

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