Calculating the Inventory Correction Factor 

Use

Requirements planning and ATP inspection make calculations using physical quantities (base quantities). When taking proportion units into account, the system uses the planned proportions of the materials.

The actual proportions in the batches are usually different from the planned proportions.

Requirements planning or ATP inspection can use the inventory correction factor to consider the actual proportion stocks available at plant and storage location level.

The system takes into account the following stock types belonging to material stock and vendor consignment stock when it calculates the inventory correction factor:

·        Unrestricted stock

·        Stock in quality inspection (only in the case of materials without QM data)

For materials with QM inspection data, the ATP inspection and requirements calculation count the stock in quality inspection as a planned receipt and not as stock. For this reason, the quality inspection stock for materials that are subject to quality inspection is not included in the calculation of the inventory correction factor.

·        Blocked stock

·        Restricted stock

Prerequisites

·        The material is handled in batches.

·        You must have specified a leading proportion for the material (LUn indicator (leading proportion) in the material master record).

Features

Selection

On the selection screen, you can choose from the following:

·        You can exclude certain batches from the calculation, for example, batches with stocks of zero or batches with the restricted status.

If you have exempted batches that have the status Restricted, the system does not include the stocks; stock in quality inspection and blocked stock for restricted batches and restricted stock.

·        Listing of all batches of a material

·        Displaying batches whose actual proportion varies from the planned proportion by a certain percentage (outlying batches)

For example, you want to see all batches whose actual proportion varies from the planned proportion by 5% or more. In this case, enter 5 in the Range for outlying batches field.

·        Displaying batches whose actual proportion has not yet been defined (non-valuated characteristic for the leading proportion)

·        Updating the inventory correction factor on the database or resetting it to 1,
with or without a list

·        Excluding certain inventory correction factors from the updating function:

¡        For storage locations with outlying batches.

You must enter a value in the Range for outlying batches field.

Example: the planned proportion of the material is 100g active ingredient/kg. If the storage location contains batches with an actual proportion of more than 105 g active ingredient/kg, you want to check these batches before updating the inventory correction factor. Choose this function, and enter 5 in the Range for outlying batches field.

¡        For storage location stocks whose variance from the planned proportion is greater than a certain limit value.

You enter the limit value as a percentage rate in the Planned/actual variance field.

Example: you allow a variance of 20% for the storage location stock. The new inventory correction factor is 1.245, the variance therefore 24.5%. The inventory correction factor for this stock is not updated.

The inventory correction factors calculated for these storage locations are not updated.

List

The list contains, for example:

·        Materials, listed according to plant, storage location and batch

·        Inventory correction factors, old and new

·        Stocks in base units of measure and proportion units

Batches with the restricted status are flagged.

Editing Functions

You can use the menu bar to choose different editing functions, for example:

·        to display additional details for each line you select: Edit ® Details

·        Error log: Goto ® Error log

Activities

The system calculates the inventory correction factor using the report RVBWSCOR. To start the report, choose Logistics ® Central Functions® Batch Management ® Batch-specific Units of Measure ® Determine Inventory Correction Factor.

 

You should calculate and update the inventory correction factor before running requirements planning.

If you want to calculate and update the inventory correction factor for a larger number of materials, you should schedule the report RVBWSCOR for background processing. See also Scheduling and Managing Background Jobs in the SAP library, under BC - Computing Center Management System.