Tuesday, 2 February 2010

SAP Catch Weight Management

It has an acronym of CWM. I found it is difficult to have a mapping tag in Chinese. It made Chinese people decentralized as new terms was introduced in any specific domain.  So did people of other languages. Although this topic is out of scope of this article, I would like to learn your opinions. Drop me an email if you are interested in it too.

Materials packaged in standard form are generally merchandised in whole-some unit, e.g., piece, each, bottle. Their stocks can be recorded and processed in standard functionalities of counting, valuating, packaging, storaging, splitting in most modern ERP systems. Even bulk-materials, like gas, coal, are managed well in business systems too.

Many produce materials, like meats, vegetables, cheese cakes have to be managed in different business scenarios. They could be counted in logistical pieces but valuated in accounting. That's why CWM is introduced. You might find some other industries with materials to managed by CWM too. Generally you can continue reading if you are interested to find more details of such a business solution for such scenarios.

Key points to have in mind for a successful implementation CWM,

*: Define base unit of measure by packaged unit. Define parallel UoM as weight Unit of measure. It is totally different from many traditional UoM setup approaches in SAP implementation. Whole project team could be confused sometimes and heavy communication within team have to be conducted.
*: Valuation of accounting can be base on either base UoM or parallel. But there will be different posting in accounting book. Make sure your accounting department have clear understanding on differences of 2 alternatives.
*: Inventory must be carried from IM instead of WM if it is performed in parallel UoM because parallel UoM quantities are not recored in WM at all.
*: Carefully review QM, batch management, HU management.
*: Sometimes project stock, customer stock, or stock cross different companies have to be managed and allocated in several processes. They have to be reviewed as well. A careless decision could cause dramatic amount of RICEF objects.

Dong Jin is a senior consultant and is willing to service customer regarding vision, process definition, software development, implementation, quality assurance, testing, and supporting. He is living in south California with his wife and kids.

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