Potency Management

Potency is designed to be used for items used in production. Most of the functionality is connected to the bill of materials.

Potency is also used when you report some kind of reception in the production and procurement flow.

An active item includes an active substance in a certain concentration. A normal potency must be specified for it. The normal potency indicates, for each item, the concentration of the on-hand balance and other planning quantities.

When active items are received, a potency value deviating from the normal potency can be specified for each lot. When active items are used in the bill of materials, the quantity included should always be specified according to the normal potency.

Potency in bill of materials

When an active item is used in the bill of materials, the quantity should always be specified according to the normal potency. To handle deviations in potency for different lots, potency compensation is used. Potency compensation means that one or more items (compensators) are used to make up the difference for the deviations. When the bill of materials is defined in 'Product. Connect Materials/Operations' (PDS002), the potency for the mixture is defined at the same time.

The volume of the mixture of the active item and the compensators is always constant. Depending on the potency of the active item, we will add more or less of the compensators.

The potency compensators for the active item in the Bill of materials are accessed using option 15 in 'Material. Enter Potency Compensating Item' (PDS004). Here, you can define one or more items that are used as compensators.

Potency in production

The manufacturing order for an active item is created normally. For an active item, the potency is supposed to be the normal potency (from 'Item. Open' (MMS001)). Places where potency information may be specified or changed are listed below.

• To change potency for an active item on a manufacturing order, select 'Manufact Order. Open Lines' (PMS101). Select option 11 in front of the active item to access 'Manufact Order. Compensate Potency' (PMS102). Then, use option 2 in front of your compensation components to change the compensation percentage for them on the specific manufacturing order (MO).
• To change potency for an active item when reporting receipt, select 'Manufact Order. Report Receipt' (PMS050). The normal potency, retrieved from 'Item. Open' (MMS001), is proposed and may be changed in the panel E of 'Manufact Order. Report Receipt' (PMS050).
• To change potency in orderless production, select 'Manufact Order. Report Orderless' (PMS260).
• To change the potency for active items when reporting by-products, select 'Manufact Order. Report By-product' (PMS080).
• To change the potency for active items when reporting co-products, select 'Manufact Order. Report Co-product' (PMS090).
• To change potency for active items when reporting the put-away, select 'Quality Inspected Item. Put-away' (PMS130).

Potency in purchase order processing

When creating a purchase order, the ordered quantity is based on the normal potency. When the goods arrive and are reported using 'Purchase Order. Receive Goods' (PPS300), they are reported in basic unit of measure and potency. The normal potency is proposed but can be changed. If the potency is different from the normal potency, the system will transform the quantity and potency to the normal potency. See example below.

Example: Ordered quantity in ‘Purchase Order. Open’ (PPS200): 6L with normal potency 90% Received quantity in 'Purchase Order. Receive Goods' (PPS300): 6L with potency 80% (overruled) Result: Received quantity: 5.3L with normal potency (6/0.8/0.9 = 5.3) Remaining quantity: 0.7L with normal potency

No more reporting or viewing of the potency is done in the procurement management flow.

Potency in distribution order processing

When creating a distribution order, the ordered quantity is based on the actual potency of the lot if the order line includes a specific balance ID, else ordered quantity is based on normal potency. The allocated quantity in 'Allocation. Perform Detailed' (MMS121) is always based on normal potency. The quantity in 'Picking List. Reported Lines' (MWS422) and 'Goods Receipt DO/RO. Report Details' (MWS445) is converted based on the actual potency of the lot where the order line was allocated.

See the following examples:

• Example 1: The normal potency of the active item is 50%. The lot that will be used for allocation has actual potency of 25%. A distribution order line with transaction quantity of 10 L is created without lot number specified. 'Allocation. Perform Detailed' (MMS121) will show allocated quantity 10 L. Quantity displayed in 'Picking List. Reported Lines' (MWS422) and 'Goods Receipt DO/RO. Report Details' (MWS445) is 20 L (10*0.50/0.25 = 20).
• Example 2: The normal potency of the active item is 50%. The lot that will be used for allocation has actual potency of 25%. A distribution order line with transaction quantity of 10 L is created with lot number specified. 'Allocation. Perform Detailed' (MMS121) will show allocated quantity 5 L (10*0.25/0.5 = 5). Quantity displayed in 'Picking List. Reported Lines' (MWS422) and 'Goods Receipt DO/RO. Report Details' (MWS445) is 10 L (5*0.50/0.25 = 10).

Potency in warehouse activity control

Potency may be accessed from a number of places using these programs:

• Physical inventory 'Purchase Order. Receive Goods' (MMS300). The on-hand balance on the request is printed two ways: based on the normal potency and on the actual potency (physical on-hand). The result of the physical inventory is reported in physical quantity.
• 'Physical Inventory. Quick Entry' (MMS310). The potency may be displayed but not changed, in 'Balance Identity. Display' (MMS060) or 'Balance Identity. Open Toolbox' (MWS068). On (MMS060/E), two potency values are displayed when using inquiry 9 (on-hand and potency). The first one is the normal potency (from 'Item. Open' (MMS001)) and the second one is the actual potency for the specific lot (which may differ from the normal potency). In panel E, a number of different types of balances are shown: on-hand balance, allocated quantity and allocatable net. The first column shows quantity in the normal quantity. In the second column, the quantity is shown in the specific potency for the lot (the physical on-hand balance).
• 'Lot/Serial Number. Open/Connect to Item' (MMS235). Records are always displayed in normal potency, meaning that the on-hand balance may deviate from the physical on-hand balance.
• 'Balance Identity. Reclassify' (MMS130). This is the only place where potency can be changed for a specific lot.
• 'Stock Transaction. Display History' (MWS070). The potency is displayed on panel E.