Change Batch-Specific Unit Valuation
Application component: Material Requirements Planning
App type: SAP GUI
Description:  In some industry sectors (for example, the pharmaceutical, chemical, steel, or paper industry sectors), the composition or attributes of products vary to some degree. Therefore, you cannot use a fixed conversion factor to convert quantities of these products into various units of measure. Instead, each batch has to be given an individual conversion factor. This component allows you to handle materials like these throughout the entire logistics chain.  Active Ingredient Management  In some industries, for example Chemicals/Foods, you need to manage the active ingredients of materials. These material consist of one or more active ingredients, concentrates, carrier materials, or impurities, and so on. The potency of the active ingredients varies from batch to batch. The total mass of the active ingredients and the carrier materials, and so on, is the physical quantity or weighted quantity. Goods movements and stock movements for these materials are carried out in physical quantities. Valuation, costing, availability checks, and planning, however, are carried out on the basis of the active ingredient quantity. The active ingredient proportion (ratio of active ingredient quantity to total or physical quantity) remains constant for each batch. The active ingredient quantity can therefore be calculated from the physical quantity and vice versa. This means that you only ever need to specify one unit, as the other can be calculated automatically. Example You buy a medicine in kilograms. The price of the quantity purchased is based on the quantity of the active ingredient it contains. The active ingredient potency fluctuates from batch to batch.   Steel/Paper/Wood/Textiles etc. These materials are handled in batches. Among other things, these batches convey the product’s grade. There is a fixed relationship between the number of pieces and the weight of each batch; the weight per piece. The quantity in the purchase order is listed in pieces, but billed in kilograms. The dimensions of the individual parts in each of the batches are different, but they still belong to the same material. Example V2A pipes with a length of between 2 meters and 2.10 meters are managed in a batch. Batch 1 contains pipes with an average weight per piece of 100kg; batch 2 contains pipes of the same quality with an average weight of 110kg per piece. Both batches belong to the same material: V2A pipes with an average weight per piece of between 100kg/pc and 120kg/pc.  
Key features:  The component allows you to use both batch-specific quantities and physical quantities for the following functions: Entering purchase orders Entering sales orders and deliveries Batch Determination Production Order Bills of material/material lists Reservations Goods movements and physical inventory, with dynamic conversion upon goods movementsAt goods receipt, you can enter the total quantity in kilograms or the active ingredient quantity only. Valuation of batch stock Billing and price determinationIn pricing, you include only one particular active ingredient proportion of the product, for example. This means that you can include different active ingredient proportions in pricing.  For Proportion Units: Inventory correction factor to take into account the actual available proportion stocks at plant level and storage location level for materials planning and the availability checkFor more information, see Calculating the Inventory Correction Factor.  For Product Units: Automatic calculation of the conversion factorBy entering two units of measure in documents, for example, for reservations or goods receipts Using object dependencies from batch specificationsFor more information, see Conversion Factor from Two Units of Measure.   Quantity conversion for all product units of a material, with rounding adjustment and check for errors after the decimal point. Among other things, this ensures that only quantities with whole numbers are moved.  
Business roles: Master Data Specialist - Batch Data| Cost Accountant - Inventory
Master Data Specialist - Batch Data : 
Maintains Batch master data.

Cost Accountant - Inventory : 
Calculates and monitors the net value of any inventories, thus helping a company to determine profitability, and ensuring accurate financial statements.