fiex-purp-demo-v0 1
DESCRIPTION
FIEX-PURP-Demo-v0 1TRANSCRIPT
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HIKMA PHARMACEUTICALS
PURP Demo
PURP Calculation & Assumptions
Thursday, 16-Apr-2015
Amman-Jordan
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Page 1
Transactions to Capture PURP
In order to calculate PURP
CO-PA will be used as Intercompany Sales datasource since Net Revenue and
Actual COGS are required to capture PURP
CO-PA 3.rd party sales to calculate stock outputs
Goods Movements (Production transaction) will be used to move PURP from
issued material to Producted ones
Transfer Posting from Material to Material (309 movement type)
Manual Adjustment can be done in BW system to do any kind of adjustment
which can be in Units as well as Contribution
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Page 2
PURP Master Data view
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PURP Master Calculation logic
Page 3
In order to calculate PURP for a period
Openning + Inputs Contribution for the period
Unit Contribution * Outputs Output Values
Total Contribution of the period / Total Quantity of the period Unit PURP
Contribution of the period
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Product Mapping Master
Page 4
Product
code
Mapping
In order to capture which Material codes are related to PURP
intercompany sales as well as mapping for Non-SAP companies
Mapping table defined above will be created in BW system.
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Assumptions on Intercompany Sales
Goods in Transit
-If Invoice is issued stock will be assumed as received by
Intercompany
Pros
-Do not need to reconcile Sender and Receiver
-If Good Received and Invoice is not is not an issue
Cons
-How to solve stock value issue w/o knowing if it is received
Page 5
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Capturing PURP on IC Sales
Page 6
Intercompany
Sales Transaction
Product
code
MappingPURP
Master
Firstly calculate Price for the period;
Average of Period Opening, Inputs from IC Procurement and Production
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Calculating Average PURP
Page 7
Intercompany
Sales Transaction
Product
code
MappingPURP
Master
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Moving (Transferring) PURP with Production
Page 8
Production
Transaction
PURP
Master
Weighted Average Price calculation from the inputs is
used for Outputs transaction;
Production Issues IC Sales 3.rd Party SalesAs a result Closing will be calculated
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PURP Master Example
Page 9
PURP
Master
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PURP Prototype v.01
What we have done?
Application on an example scenario
Points to develop
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PURP Prototype v0.1
Page 11
Intercompany Sales Data (PA)
3rd Party Sales Data (PA)
Issued to Production Data (MM)
Output from Production Data (MM)
PURP
RESULT
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PURP Prototype v0.1
Page 12
Scenario 1:
Company Code Material
Jazeera
Pharmaceutical7LEXT106J-ALG
Hikma Free Zone -
Jordan 7LEXT106J-ALG
3LEXF1G12-ALGREG
Sarl Hikma Pharma
Algeria3LEXF1G12-ALGREG
3rd Party
Intercompany Sales (PA)
Intercompany Sales (PA)
Production (MM)
3rd Party Sales (PA)
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PURP Prototype v0.1
Page 13
Scenario 1:
Company Code Material
Jazeera Pharmaceutical 7LEXT106J-ALG
Hikma Free Zone - Jordan
Intercompany Sales (PA)
7LEXT106J-ALG
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PURP Prototype v0.1
Page 14
Scenario 1:
Company Code Material
Hikma Free Zone - Jordan
7LEXT106J-ALG
3LEXF1G12-ALGREG
Production (MM)
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Scenario 1:
Company Code Material
3LEXF1G12-ALGREG
Sarl Hikma Pharma
Algeria3LEXF1G12-ALGREG
Intercompany Sales (PA)
Hikma Free Zone -
Jordan
*Contribution on PA transaction: $644.339,80 ($2,626 per unit)
PURP Prototype v0.1
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Scenario 1:
Company Code Material
Sarl Hikma Pharma Algeria 3LEXF1G12-ALGREG
3rd Party
3rd Party Sales (PA)
PURP Prototype v0.1
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9NPFDSCR
Scenario 2:
Company Code Material
Hikma Pharmaceuticals3NOPFDSB1-ALG
Sarl Hikma Pharma Algeria
3NOPFDSB1-ALG
3LEXF1G12-ALGREG
3rd Party
Intercompany Sales (PA)
Production (MM)
3rd Party Sales (PA)
9NOPFDS
3NOPF5510
Production (MM)
Production (MM)
Production (MM)
PURP Prototype v0.1
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Scenario 2:
PURP Prototype v0.1
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Planned vs Developped
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To be covered in next prototypes..
Corrections in Prototype 1
Work in Process
Reporting
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WIP Solution
Release PURP with Production Quantity Issue
Pros
Similar to WIP in ECC
Cons
If Production quantity is not equal to Issued quantity when
Technically Completed is marked rest of PURP released to the
period
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Production WIP
For the Production order that is created in the first month
First month all the good issues will be done and only Partial Production
happens Therefore 400 PURP contribution goes to WIP
Second month only portion of the production goes from WIP to target product as
unit and PURP contribution
In the third month there is no production but TECO marked therefore the amount
in the WIP as PURP contribution goes to target product w/o quantity
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Thank You!
Page 23