HIKMA PHARMACEUTICALS

PURP Demo

PURP Calculation & Assumptions

Thursday, 16-Apr-2015
Amman-Jordan

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 1

PURP Master Data view

Page 2

PURP Master Calculation logic

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

Page 3

Product Mapping Master

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.

Product
code
Mapping
Page 4

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

Intercompany
Sales Transaction

PURP
Master

Product
code
Mapping

Firstly calculate Price for the period;

Average of Period Opening, Inputs from IC Procurement and Production
Page 6

Calculating Average PURP

Intercompany
Sales Transaction

PURP
Master

Page 7

Product
code
Mapping

Moving (Transferring) PURP with Production

Production
Transaction

PURP
Master

Page 8

Weighted Average Price calculation from the inputs is

used for Outputs transaction;
Production Issues
IC Sales
3.rd Party Sales
As a result Closing will be calculated

PURP Master Example

PURP
Master

Page 9

PURP Prototype v.01

What we have done?

Application on an example scenario
Points to develop

PURP Prototype v0.1

Intercompany Sales Data (PA)

3rd Party Sales Data (PA)

RESULT
Issued to Production Data (MM)

PURP
Output from Production Data (MM)

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PURP Prototype v0.1

Scenario 1:
Company Code

Material

Jazeera
Pharmaceutical

7LEXT106J-ALG

Intercompany Sales (PA)

Hikma Free Zone Jordan

7LEXT106J-ALG

Production (MM)
3LEXF1G12-ALGREG

Intercompany Sales (PA)

Sarl Hikma Pharma
Algeria

3LEXF1G12-ALGREG

3rd Party Sales (PA)

3rd Party

Page 12

PURP Prototype v0.1

Scenario 1:
Company Code
Jazeera Pharmaceutical

Material
7LEXT106J-ALG

Intercompany Sales (PA)

Hikma Free Zone - Jordan

Page 13

7LEXT106J-ALG

PURP Prototype v0.1

Scenario 1:
Company Code

Material

Hikma Free Zone - Jordan

7LEXT106J-ALG
Production (MM)
3LEXF1G12-ALGREG

Page 14

PURP Prototype v0.1

Scenario 1:
Company Code
Hikma Free Zone Jordan

Material
3LEXF1G12-ALGREG

Intercompany Sales (PA)

Sarl Hikma Pharma
Algeria

3LEXF1G12-ALGREG

*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 Sales (PA)

3rd Party

PURP Prototype v0.1

Scenario 2:
Company Code

Material

Hikma Pharmaceuticals

3NOPFDSB1-ALG

Intercompany Sales (PA)

Sarl Hikma Pharma Algeria

3NOPFDSB1-ALG

Production (MM)
3LEXF1G12-ALGREG

Production (MM)
9NPFDSCR

Production (MM)
9NOPFDS

Production (MM)

3NOPF5510

3rd Party Sales (PA)

3rd Party

PURP Prototype v0.1

Scenario 2:

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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