What is Material Quantity Calculation?
Active Ingredients are also used in production as a part of BOM component. Now
since the actual proportion of the active ingredient varies from batch to batch, the
system selects and adjusts with several batches to get the required quantity of
active ingredient in the process order for the production process. During this
process there also can be a need to adjust with other BOM component quantities or
recalculate the Product quantity. These calculations are handled in SAP by
Material Quantity Calculation.
Material Quantity Calculation – Functions:
MQC is used to calculate the component quantities if different active
ingredient concentrations of batches must be taken into account.
MQC is used to calculate the product quantity, i.e. the base quantity of the
master recipe or the order quantity if it must be adjusted to modified
component quantities.
To calculate the expected phase scrap if its needed to be displayed in the
phase data in the order and make it available for the planned / actual
evaluations carried out in LIS.
To calculate the operation and phase quantities if they are not identical to
the product quantity. This might be done in order to take the quantity
difference caused by the scrap produced into account.
We will take the example of pharmaceutical product / industry to
understand the concept of MQC. As shown in the above figure and in the
below table, the system needs 250.5 AI units from Component A so that in
the final composition of the Product P, the proportion of Component A
would be 50.2 %. The BOM is for tablets having batch size 500 kg / 10,
00,000 tablets.
BOM FOR PRODUCT TABLETS (500 KG)
Active Pharmaceutical Ingredient 1. 250.5 AI
(API)
Filler 1 1. 150.5 Kg
Filler 2 1. 99.0 Kg
Now since the proportion of the active ingredients in the raw material
batches is not fixed, we need to calculate the amount of material that we
need to take from each batch in KG to get the desired amount of AI. Also in
order to keep the total lot size of the finished product constant we need to
adjust the quantities of other raw material components in the BOM
commonly known as fillers. Following is an example of how Material
quantities are calculated manually:
BATCHES FOR API:
Now in order to fulfill our active ingredient requirement of 250.5 AI, we
take 147 AI from batch B-990 and another 103.5 AI from batch B-991. This
works out to be 150 kg and 112.5 kg of material in physical
UoM respectively. Considering the total quantity of component now to be
262.5, we need to decrease the quantity of one of the filler material to
maintain a constant batch size for the finished product as 500 kg. So as per
the below calculation, the requirement quantity of Filler 2 is reduced from
99.00 kg to 87.00 kg.
Adjustment in Filler 2 Qty:-
Actual Filler 2 Qty = Total Batch Size – Filler 1 Qty – API Qty in kg
Actual Filler 2 Qty = 500-150.5-262.5 = 87.000 kg
Total Batch Size 500 kg = 262.5(API) +150.5(F1) +87.000(F2)
Kindly note that we have taken a simple example here for our understanding
of the concept. There can be other complex scenarios in pharmaceutical as
well as other industry sectors like chemicals, paper, textiles etc.
Master data set up for MQC
The master data maintenance for the BOM having an active ingredient
component has already been discussed in the previous sections. Now
appropriate formulae needs to be maintained in the master recipe to allow
system do the Material Quantity Calculations for Active Ingredients / Other
BOM components / Finished Product. This section describes the master data
maintenance in the master recipe.
The above screen shot shows the formula maintained for Filler 2 BOM
component. The function CQSM (Quotient Sum of added up Weighted batch
quantities or characteristic values) has been used in the formula of Filler 2
quantity calculation. This function is used to calculate the total of the
physical batch quantities from the active ingredient quantities of batches
based on the active ingredient concentrations. Similarly other functions of
the Material quantity calculation can be used to define formulae as and
when required.
Batch Determination & Material Quantity Calculation in Process Order
As shown above, we have two batches of Active Ingredient Material 3691 –
0000000990 & 0000000991 with physical quantities of 149.500 kg and
148.500 kg respectively. But since the potency of the batches is 98 % and 92
%, the active ingredient proportion (quantity) in them is 146.510 AI and
136.620 AI respectively.
Select the marked button above in Materials screen of the process order to
execute batch determination for the selected component (Active Ingredient
material). The system proposes the batches for the raw material based on
the Batch Search Strategy (Selection Criteria and Sort Rule) defined in
Customizing. Appropriate batches are selected and batch determination
results are copied to the process order.
Once the batch determination is completed, click on Material Quantity
Calculation icon to go for calculation of the component quantities and
product quantities. As per the formula entered in the master recipe, it
has recalculated the Filler 2 component quantity from 98.50 kg to 91.167
kg. These results are copied into the process order on clicking on the
Execute button. Similarly if a formula is entered for re-calculating the
process order’s header material quantity, the same can be done by clicking
on the “Calculate Product Quantity” button in the MQC screen. The process
order can then be saved.
The principal advantage of MQC is that it eliminates the need of manual
calculation that has to be done for every process order that contains active
ingredient as a raw material component. Thus it reduces the possibility of
human error.
Batch Specific UoM in Sales
The system stores the batch-specific quantity as the quantity sold in the
sales and distribution documents.
If the sales unit is a batch-specific unit, the billing document is also created
in batch-specific units. The billing quantity is derived from the cumulated
batch quantity using the actual conversion factors of the batches.
In the delivery, batch-specific quantities and batch-specific units are
transferred from the order, and displayed as quantity sold and sales unit.
For partial deliveries, the physical quantity is calculated using the actual
conversion factor (batch is known at this point).
In pricing, you can calculate prices, discounts, and surcharges based on
batch-specific quantities and batch-specific units. When you do this, you
may only use one quantity as a basis for calculation for each
condition record, even when several batch-specific units (for example,
active ingredients) are allocated to the material.
Configuration Settings
Define UoM in Global Data
SPRO –> SAP Net Weaver –> General Settings –> Check Units of Measurement
Activate Batch Specific UoM
SPRO –> Logistics – General –> Batch Management –> Batch-Specific Material Units
of Measure –> Activate Batch-Specific Material Unit of Measure
Edit Batch Specific UoM
SPRO –> Logistics – General –> Batch Management –> Batch-Specific Material Units
of Measure –> Edit Batch-Specific Material Unit of Measure
Calculate Proportional Factors
SPRO –> Logistics–General –> Batch Management –> Batch-Specific Material Units of
Measure –> Calculate Proportional Factors –> Define Calculation of Proportion
Quantity from Base Quantity
