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Key Active Ingredient- Batch Specific costing

Dear All,

Customer has the following scenario.

They buy Hydrochloric acid at 30% concentration.

They make PO for 100 Kg of 30% concentration.

When they do GRN they found that the 100 Kg is with 28% conc.

Actually the Key active ingredient should be 30 Kg in 100 Kg, but it is only 28 kg in 100 Kg.

As per the price maintained, 1 kg of 30% Hydrochloric acid is 10 Rs. Since it is only 28% it should calculate 9.30 Rs /kg & for the GRN of 100 kg , it should be 93.33 Rs.

I have maintained the Key active ingredient conversion & stock is coming as 28 kg in KAI, but i dont know to do the batch specific proportionate costing & accounting data.

Pls help me.



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  • Best Answer
    Posted on Sep 24, 2011 at 05:32 AM


    This is a very common feature used in PP-PI.. You would do the GR for 100 KG and the batch chars would store the information of 28% (Instead of 30%)

    When you do the Goods Issue, system would issue more qty.. i.e. if you want to issue 50 KG, system would issue 50 * 30 / 28

    I dont know what else you are looking for... If you are planning to make batch wise prices, it would only complicate the affair

    As far as the accounting doc is concerned, it would post @ 93.33 or as per the price strategy agreed with vendor

    br, Ajay M

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    • Hi

      Sorry, my mistake..

      Your accounting doc would be @ 100 rs only... Because yoiu are paying 100 to the vendor... In the batch chars in MSC3N, you can see the KAI details

      Now when you issue for consumption, you would issue more if its a lower KAI than desired... Hence, it would result in excess qty and amount being issued to consumption

      If you are paying 93.33 to the vendor, then ask your MM guy to inventorize only 93.33 to the stock by changing the price

      br, Ajay M

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