Reduce Your Company’s Spending with SAP Active Ingredient Batch Management

  • by Gaetano Altavilla, Senior SAP Practice Manager
  • October 16, 2013
Active ingredient batch management enables you to directly process transactions using quantities of active ingredients. Learn about the process and understand the main master data and customizing details that are required to run it.
Key Concept

Base units of measure are the primary units of measure (stock keeping units), but alternative units of measure also can be used to manage specific production, purchase, and sales processes.          

Alternative units of measure are directly or indirectly proportional to base units of measure through a maintained conversion in the material master (theoretical conversion factor). Alternative units of measure are useful when alternative units of measure are always convertible through the base units of measure. If the alternative units of measure are not convertible through the base of units of measure and the conversion factor is ever changing, SAP offers a tool called Batch Specific Units of Measure, or Dynamic Alternative Units of Measure. Dynamic Alternative Units of Measurewhich are based on real or dynamic conversion factors and not theoretical conversion factors, can manage production, purchase, or sales processes when alternative units of measure could vary or change for every lot that is produced or purchased. Dynamic Alternative Units of Measure can be used as part of the active ingredient batch management process in the materials management (MM), quality management (QM), and Financials (FI) modules.

Active ingredient batch management affects all business processes that involve materials containing one or more concentrates or active ingredients. I explain the main steps to be done in the system by the logistics, quality, and financial departments to perform active ingredient batch management processes in SAP ERP Central Component (SAP ECC) 6.0 with the materials management (MM), quality management (QM), and Financials (FI) modules implemented. I show the main master data and customizing details required for this process. Although I use SAP ECC 6.0 to illustrate this process, it also applies to previous versions.

Gaetano Altavilla

Dr. Gaetano Altavilla is a senior SAP practice manager. His focus is on pre-sales, delivery of SAP application solutions for large international corporations, and SAP knowledge management in Europe, the Middle East, and Africa (EMEA).

In his 18 years of SAP application experience working for many multinational companies, such as Procter & Gamble and Hewlett-Packard, he has covered a wide range of ERP logistic areas, focusing on the MM, WM, SD, LES, PP, PP-PI, PLM (QM, PM, PS) modules, as welll as CRM (TFM), SRM (EBP), SCM (SAP APO), and MES (ME) components.

Dr. Altavilla holds a degree with first-class honors in mathematics from the University of Naples and is certified in many SAP modules: SAP Logistics Bootcamp, SAP MM, SD, LE (SHP/WM/LE), PP, PLM (PM, QM, PS), SRM, CRM, SCM (APO), SCM (TM), FI, CO, and Solution Manager. He also has experience in ABAP/4 and application link enabling (ALE) and IDocs. He has participated in numerous industry conferences, such as the SAP Skills Conference in Walldorf at SAP SE.

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Comments

10/20/2013 11:13:30 AM
Jawad

A highly informative piece! Excellent and logical flow of all the important steps.

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