HIKMA PHARMACEUTICALS

PURP Demo

PURP Calculation & Assumptions

Thursday, 16-Apr-2015

Amman-Jordan

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

Page 2

PURP Master Data view

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

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.

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

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

Calculating Average PURP

Page 7

Intercompany

Sales Transaction

Product

code

MappingPURP

Master

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

PURP Master Example

Page 9

PURP

Master

PURP Prototype v.01

What we have done?

Application on an example scenario

Points to develop

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

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)

PURP Prototype v0.1

Page 13

Scenario 1:

Company Code Material

Jazeera Pharmaceutical 7LEXT106J-ALG

Hikma Free Zone - Jordan

Intercompany Sales (PA)

7LEXT106J-ALG

PURP Prototype v0.1

Page 14

Scenario 1:

Company Code Material

Hikma Free Zone - Jordan

7LEXT106J-ALG

3LEXF1G12-ALGREG

Production (MM)

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

Scenario 1:

Company Code Material

Sarl Hikma Pharma Algeria 3LEXF1G12-ALGREG

3rd Party

3rd Party Sales (PA)

PURP Prototype v0.1

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

Scenario 2:

PURP Prototype v0.1

Planned vs Developped

To be covered in next prototypes..

Corrections in Prototype 1

Work in Process

Reporting

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

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

Thank You!

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