Maintaining multiple units of measurement

[Former Member]

Dear All,

We are into steel pipe manufacturing industry, where multiple units of measurement are used at various processes. The whole process is described as below:

1. Raw material is always measured in KGs and GR is also done in KG.

2. A pipe can be measured in three units:

a) KG or MT (Metric Tonnes)

b) Numbers

c) Meters

But all these units may or may not available at all the stages. In other words,

- When pipe is produced, then at production shop-floor, only the number of pieces are counted. Length and Weight are variable factors. As length is decided by customer for the same material code. Weight is also not fixed as thickness of the Raw material keeps on varying. And it is impossible to weigh the pipes during production because of process & shop-floor challenges. So, during production stage, only number of piece is a known factor. E.g. 100 pipes are produced and appx. weight is 10 MT with total length as 600 Meters.

Note: Weight and Length are appx. figures.

- When pipe is being sold to customer, it can be sold in any unit i.e. either in Meters or in Numbers or in KG. And at the time of selling only, material is being weighed at weigh bridge.

Case 1: When sales unit is numbers:

Suppose sales qty is 100 Numbers which is perfect as per production. But at weight bridge, the weight of these 100 pipes comes out to be as 10.2 MT. Now the problem is as per system conversion, weight is only 10 MT. So showing only 10 MT in Invoice or delivery output will be inaccurate as it does not match with Weigh bridge measurement.

Case 2: When sales unit is MT:

As per system, stock produced is only 10 MT, how can we sell 10.2 MT? From where should we bring this extra .2 MT? Sales cycle will stop. And suppose if weigh bridge weight is 9.8 MT, then system will always show .2 MT stock in system which is not present physically.

Case 3: When sales unit is Meters:

As per system, already produced length is 600 meters, but at the time of selling, if actual total length comes out to be 603 meters, then again problem of bringing extra stock. And if actual total length comes out to be 597 meters, then a surplus stock will be seen in system.

Note: Batch management is required, and batch numbers are generated in a mass in a single day.

Solutions visited:

A) Physical Inventory (PI) does not seem to be a solution, as

- it also posts the accounting document which is questionable if done on regular basis

- doing PI for batches will be very much tedious job

B) Batch specific unit of measure is also creating problems at shop floor and also while processing the batches in PP & SD modules.

Aim: To be able to track inventory at least in Numbers and MT accurately.

Thanks & Regards,

Vishal

[biplob_chowdhury15 · Accepted solution]

Hi Vishal,

Already we have mapped almost similar scenario in cable industry.

You have to use Batch management- "Batch specific unit of measure" functionality and  variant configuration.

Create characteristic - production length, length tolerance%(+), length tolerance%(-).

                                       no. of pc, no %(+), no %(-)

Assign required characteristic in batch class and variant class.

Case 1: When sales unit is numbers:

In Batch specific unit of measure functionality you can receive only single unit batch for 100 numbers. But whenever you assign no%(+) and no%(-) in variant class with dependency you can receive single unit batch with tolerance.

Case 2: When sales unit is MT:

If you use positive, negetive tolerance characteristics you will be able to receive eg-10.2 MT in place of 10 MT. So billing can be done for as per positive, negetive received quantity.

Case 3: When sales unit is Meters:

This is a common scenario for this type of manufacturing unit. Take help from SD/FICO consultant consultant how they can bill for extra length.

Thanks,

Biplob

[Former Member · Accepted solution]

Hi Biplob,

Many many thanks, seems to be an excellent solution for the problems described above. But just would like to know, how stock and accounting entry will be effected. Let's take an example:

Suppose, production entry is being done with below data:

Material: M1

Base Unit: KG (we have proposed Base Unit as KG, as all in-house & legal reporting is in KG)

Batch: B1

Quantity: 10,000 KG

Batch Specific Unit of Measure (BSUM): Numbers (NO) and Meters (M)

Batch Conversion Factors:

     KG --> M: .06 (Tolerance + 10% and -10%)

     KG --> NO: 0.01 (Tolerance + 10% and -10%)

If my understanding is correct as per solution suggested by you, then system will initially show stock in below manner:

In KG: 10,000 (as per base unit, unchangeable)

In NO: 100 (With tolerance, 90 to 110)

In Meters: 600 (With tolerance, 540 to 660)

While selling, suppose length comes out to be 603 meters, and my selling unit is also meters, then system will allow me to deliver the batch B1 with quantity as 603 meters, and weight as 10,000 KG only.

Queries:

1. No extra stock is required in meters. As soon as, stock is dispatched, then batch stock will be zero in all three units.

2. Also, the accounting document will be generated for 10,000 KG only i.e. Stock Account will be credited with value of 10,000 KG only.

3. As there are two BSUM, from configuration point of view, four characteristics need to be created in all, for positive and negative tolerances for respective unit (i.e. M and NO)

4. This query is not in the scope of this question but somewhat related to this scenario only: As far as I know, once Negative stocks allowed, then it is unlimited. Is there any possibility to restrict the negative stocks up to a certain level. One possibility I could find is to use a Customer Exit (EXIT_SAPLMBMB_001) while posting the stock, but need to check whether this userexit is actually triggering before posting the stocks or not.

Thanks & Regards,

Vishal

[biplob_chowdhury15 · Accepted solution]

Hi Vishal,

Your queries,

Is there any possibility to restrict the negative stocks up to a certain level?

Yes it is possible. Tolerance characteristics (+ and -) will be assigned in variant class. You have to write dependency , if length= 1000M, positive tolerance = +1% you can receive 1010 M similarly for negitive.

If helpfull pl. rewards.

Thanks,

Biplob

[Former Member · Accepted solution]

Hi Biplob,

Can you please put some light on other queries also:

1. No extra stock is required in meters. As soon as, stock is dispatched, then batch stock will be zero in all three units.

2. Also, the accounting document will be generated for 10,000 KG only i.e. Stock Account will be credited with value of 10,000 KG only.

3. As there are two BSUM, from configuration point of view, four characteristics need to be created in all, for positive and negative tolerances for respective unit (i.e. M and NO)

Thanks & Regards,

Vishal

[biplob_chowdhury15 · Accepted solution]

Hi Vishal,

1. No extra stock is required in meters. As soon as, stock is dispatched, then batch stock will be zero in all three units. -  This is depends on business, how you make your inventory and how you dispatch, eg- If your inventory is 1010M, you want to dispatch 1000M to customer, 10M will be in the stock for that batch.

2. Also, the accounting document will be generated for 10,000 KG only i.e. Stock Account will be credited with value of 10,000 KG only. - Account document will be generated as per goods receipt document, eg- your single unit batch unit is 10000kg, you received with tolerance 10002kg, account document will be generated for 10002kg qty.

3. As there are two BSUM, from configuration point of view, four characteristics need to be created in all, for positive and negative tolerances for respective unit (i.e. M and NO) -  one BSUM will be used in one material and for each material you have to maintain 3 characteristics. eg - BSUM is M ( batch specific unit of measure you maintained 1PC=1000M) - Three characteristics- LENGHT, PRODUCTION PLUS TOLERANCE, PRODUCTION MINUS TOLERANCE.

  PRODUCTION PLUS TOLERANCE, PRODUCTION MINUS TOLERANCE characteristic values you have maintain in material variant.(MRP3 view of material master) Eg- PRODUCTION PLUS TOLERANCE=2, PRODUCTION MINUS TOLERANCE=2

Similarly you have to 3 charcteristics for BSUM "NO"

Thanks,

Biplob

[Former Member · Accepted solution]

Hi Biplob,

Thanks for the response, some doubt on first query still remains:

The stock posted is:

in KG: 10,000 kg

In Meters: 600 meters, tolerance is +10% & -10%

In Numbers: 100

Stock Val: Rs. 1,000

But while dispatch, measurement comes out to be:

in KG: 10,000

In Meters: 603 Meters

In Numbers: 100

Now, while doing delivery with Sales Unit as Meters, I want to deliver 603 meters (as per actual) to customer and billing also for 603 meters.

So now, query is: will system allow to deliver 603 meters without posting any other stock adjustment entry, and weight and number units must remain as it is (i.e. 10,000 KGand 100 NO respectively) ? In other words, it must not happen that while delivering 603 meters, system starts displaying 10,020 KG in delivery.

Thanks & Regards,

Vishal

[biplob_chowdhury15 · Accepted solution]

Hi Vishal,

The stock posted is:

in KG: 10,000 kg

In Meters: 600 meters, tolerance is +10% & -10%

In Numbers: 100

Stock Val: Rs. 1,000

But while dispatch, measurement comes out to be:

in KG: 10,000

In Meters: 603 Meters

In Numbers: 100

I think there are some mistakes from your business side. They are posting stock 600 Meters, how it is being 603 Meters during dispatch. The guy who has posted this stock may be has done the mistake.

If it is your regular process then I dont know how to dispatch, and where to dispatch this extra length. Please consult with SD/FICO consultant.

Thanks,

Biplob

[Former Member · Accepted solution]

Hi Biplob,

We can not call it as mistake from business side, as I explained above also, during production, it is not possible to measure the actual length of pipes. So appx. length is being given which comes out to be 600 meters (remember, its appx. only). It's impossible to measure the pipes during production, as it will impact the efficiency. That's the reason, no pipe industry measure the pipe length during production.

The accurate length of pipes can only be known at the time of dispatch, where each pipe is being measured, which comes out to be 603 meters.

The question is: can I deliver 603 meters where weight remains 10,000 Kg (base unit) only, provided tolerance characteristics (+ & - 10%) for length.

Thanks & Regards,

Vishal

[biplob_chowdhury15 · Accepted solution]

Hi Vishal,

If you use "Batch specific unit of measure" in material master, during goods receive you will received that material as "Single unit batch(SUB)" . Now tolerance is giving to allow to receive more or less length over single unit batch. I think you need to do some development and test it in your system.

Thanks,

Biplob