SAP S4HANA with Batch Specific
UoM in Steel, Metal, and Process
Industries
Problem Statement:
In several industries, such as steel, metal, cables, and paper mills, products
are frequently ordered from vendors using alternative units of measure.
Establishing precise conversion factors for these units presents a challenging
and vital task. For example, when ordering steel tubes, they might be
quantified in pieces (e.g., 100 pieces), but their actual weight in kilograms
can vary significantly. In one instance, the 100 pieces may weigh 1200
kilograms, while in the next shipment, the same quantity of pieces could
result in a weight of 1170 kilograms. These weight fluctuations often stem
from the inherent variability in the materials. Effectively capturing and
managing the weight of these products is of utmost importance to these
industries, as it has a direct impact on inventory control and cost
management.
Proposed Solution -
Batch Specific Units of Measure is a concept where the conversion ratio can
be maintained for the Base UoM and Alternate UoM for each batch specific.
Approach -
The batch-specific material unit of measure is an alternative unit of measure
of a material. It allows you to define the base unit of measure on a batch-
specific basis. For batch-specific material units of measure, you can define
both planned and actual conversion ratios to the base unit of measure.
These units are particularly useful when the conversion ratio for the unit of
measure to the base unit can vary for different batches of a material.
There are two types of batch-specific material units:
Proportion Unit: This unit allows you to enter proportions of the material's
base unit of measure. The total quantity can consist of various proportions.
For example, in each batch of fruit juice, in addition to the fruit juice content,
100 milliliters may contain 30 milligrams of vitamin C and 10.5 grams of
sugar.
Product Unit: This unit describes the total quantity of a material as an
alternative to the base unit of measure. For instance, one piece of a given
batch might weigh 10 kilograms, or it could be a pipe that is 1250
millimeters long.
This document will showcase an example of Produce Unit Scenario
where the Base UoM is maintained as KG and Alternate UoM is
maintained as PC.
Configuration Set Up
1. Activate Batch Specific Unit of Measurement –
SPRO --> Logistic General --> Batch Management --> Batch Specific Material
Units of Measure --> Activate Batch Specific Material Units of Measure
Activate Batch Specific Material Units of Measure
2. SPRO --> Logistic General --> Batch Management --> Batch Specific
Material Units of Measure --> Edit Batch Specific Material Units of Measure
Maintain Product Unit
3. SPRO --> Logistic General --> Batch Management --> Batch Specific
Material Units of Measure --> Product Quantity Conversion --> Define
Calculation of Base Qty from Product Qty
Maintain Base vs Batch Specific UoM
4. Create Characteristics – T-code – CT04
Create Characteristics
5. Maintain Class – T-code - CL01
Maintain class and insert the characteristics defined above.
Material Master Set Up
a. Maintain Proportion/Prod. Unit in Additional data as below –
Maintaintain the characteristics Defined above along with Plan Conversion
Ratio
b. Please ensure to maintain Unit Measure. Us as B – Product Unit.
c. Enter the Variable Purchase Order Unit – Active to have different Order
Unit in the Purchase Order.
This is required to Allow Alternate UoM as Purchase Order Unit
System Test Case –
a. Create a Purchase Order – 1000 PC where Order Unit – PC and
Order Price Unit – KG
Purchase Order
b. Performing GRN using MIGO – 100 PCs
As per the given Planned conversion factor 1 PC of Steel PIPE Weighing 100
KG
However, during the GRN of 100 PC at the time of weighment the total net
weight comes as – 9950 KG. Per PC weight comes as – 99.5 KG.
Maintaining the Actual Weight Per PC at the Time of GRN
7. Displaying the stock status –
BATCH28 - 100 PC of stock where 1 PC = 99.50 KG, total weight = 9950 KG
Stock Overview in KG as per Actual.
Conclusion: The batch-specific Unit of Measure (UoM) concept provides an
efficient solution for managing alternate UoMs when the conversion ratio is
variable and subject to change with each Goods Receipt Note (GRN). It allows
for more adaptable and accurate inventory management and can enhance
efficiency in a wide range of manufacturing and production settings.
