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Supply Chain Analytics

Supply Chain Analytics/ Stock ledger Analytics

Overview Stock Ledger Analytics ERMA Stock Ledger Retail Method of Accounting

SAP 2009 BW Retail Content Supply Chain Analytics / Page 2

Supply Chain Analytics/ Stock ledger Analytics

Overview Stock Ledger Analytics General motivation Inventory valuation methods ERMA Stock Ledger Basics Business Content Business Content Infocubes Business Content Reporting Working with ERMA Stock ledger

SAP 2009 BW Retail Content Supply Chain Analytics / Page 3

Supply Chain Analytics/ Stock ledger Analytics

Retail Method of Accounting Basics Business Content Analysis Scenarios Business Content Infocubes Business Content Reporting Process Chains Working with RMA Customizing Important Notes

SAP 2009 BW Retail Content Supply Chain Analytics / Page 4

Supply Chain Analytics/ Stock ledger Analytics

Overview Stock Ledger Analytics General motivation Inventory valuation methods ERMA Stock Ledger Basics Business Content Business Content Infocubes Business Content Reporting Working with ERMA Stock ledger

SAP 2009 BW Retail Content Supply Chain Analytics / Page 5

Process View BI Trade Analytics


BI Trade Analytics Planning
MAP Markdown Planning/ Slow seller Analysis Demand Management Category Planning

Buying
Assortment Management Vendor Management/ SRM Global Trade
Wholesale

Storage/ Distribution
Supply Chain Analytics

Sales
Store Analytics

Inventory Management F&R ERMA RMA Agency Business


Wholesale

POS DM Store Manager Product Affinity Metrics Loyalty Staff Works/ WFM PCA Business Views
Wholesale

Foundation
Procurement Inventory Sales

Article Hierarchy

Fashion master data Product/Location Structured Article

Master Data
Article List

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Major Cost Factors for a typical Retail Company

40- 50% Inventory and Distribution Cost

Labor Cost

20- 30%

Real Estate Cost

2-10%

Other

2-5%

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Overview
In general, a stock ledger is a period-oriented repository of all inventory activity and it feeds financial reporting (i.e., ending inventory and Cost of Goods Sold) management reporting (e.g., sales, margins, ending inventory, etc.) any other business process that takes into account inventory information (e.g., open-to-buy, pricing, etc.). It provides an audit trail and allows for corrections and adjustments to inventory. The stock ledger receives the inventory information, applies the inventory valuation method defined for use, and then calculates the results. The results and reports will be slightly different depending on the valuation method defined and the inventory activity that is tracked, but the overall purpose of the stock ledger remains the same. The stock ledger is the foundation for merchandising activities, a tool for decisionmaking, and is the nervous system of a retailer. It is an essential part of monitoring and reporting business performance. One of the most visible aspects of the stock ledger is the stock ledger reporting, which is critical to a retailer in terms of monitoring performance and managing inventory effectively. These reports provide a unified view across organizational and merchandise hierarchies of all inventory activity types and visibility to key performance indicators.

SAP 2009 BW Retail Content Supply Chain Analytics / Page 8

Key Concepts for SAP Inventory Management


Document Principle Accounting principle of no posting without a document A document must be generated and stored in the system for every transaction/event that causes a change to inventory Inventory transactions create 2 postings: Stock ledger General ledger Once the document is posted it cant be changed or altered; it can be reversed or reversed and replaced with a new document Goods Movement / Movement Type

Each goods movement is classified by a type (e.g., receipt, transfer, sale, shrinkage, etc.) Movement types have important control functions (e.g., relevant accounts / buckets) Revaluation Price changes and manual adjustments create changes to the inventory value at cost and/or retail (e.g., markups, markdowns) Creates revaluation documents

SAP 2009 BW Retail Content Supply Chain Analytics / Page 9

Stock Ledger

Inputs:
Opening inventory Purchases Vendor returns Transfers Markups Sales Customer returns Markdowns Physical inventory Adjustments Shrinkage Stock Ledger

Key Outputs:
General ledger
Cost of sales (income statement) Closing inventory (balance sheet)

Stock ledger reports Support planning, OTB, etc.

Apply a method: Cost method (CMA) Traditional retail method (RMA) Hybrid or extended retail method (ERMA) results of the inventory calculation feed several areas

events and transactions that impacts inventory values and quantities

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Supply Chain Analytics/ Stock ledger Analytics

Overview Stock Ledger Analytics General motivation Inventory valuation methods ERMA Stock Ledger Basics Business Content Business Content Infocubes Business Content Reporting Working with ERMA Stock ledger

SAP 2009 BW Retail Content Supply Chain Analytics / Page 11

Inventory Valuation Methods


1. Cost Method 2. Traditional Retail Method 3. Hybrid (or Extended) Retail Method

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1. Cost Method (CMA)

Perpetual valuation every goods movement and relevant inventory events automatically update inventory units and values Inventory is managed at the location/item level using a base unit of measure Inventory managed solely on a cost basis (e.g., moving average, standard), Inventory values are based upon what you actually paid for the item

Cost value of inventory is independent of retail price changes, i.e., changes to retail prices do not affect cost value of inventory Cost of goods sold and ending inventory are calculated using the cost per unit multiplied by units current value of inventory is known; it does not need to be calculated at the end of the period.

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2. Traditional Retail Method (RMA)

Many retailers use the traditional retail method of accounting to value their inventory. It is more common in situations where there are many different types of merchandise at low unit cost with a large number of transactions. Inventory is primarily managed in retail values at aggregate levels, e.g., category or department Margin is managed at an aggregate level (e.g. merchandise category) Financial inventory transactions are captured into "buckets " throughout a defined period Cost of sales and ending inventory at cost are derived by applying a cost % to the retail values of inventory The current value of inventory is unknown until it is calculated at the end of the period (e.g., month). A simple illustration of the RMA calculation is provided here

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3. Hybrid (or Extended) Retail Method (ERMA)


The hybrid or extended retail method is a best of both worlds approach combining elements of the cost method and traditional retail method
Many retailers combine the cost method with a perpetual form of the retail method

Perpetual valuation every goods movement and relevant events automatically update inventory units and values at both cost and retail, the current value of inventory is always available Inventory is managed at both cost and retail using a base unit of measure
The cost basis is generally moving average cost

Inventory can be managed at either an item level or an aggregate level, e.g., category or department Changes in the retail price cause adjustments to the value of inventory at not only retail, but also at cost
Creates a markdown cost adjustment that is taken in the current period

Cost of goods sold is calculated by taking the cost of the exited inventory (e.g., sales, shrinkage) plus the markdown cost adjustment
SAP 2009 BW Retail Content Supply Chain Analytics / Page 15

Comparison of ERMA to RMA -1Similarities with the traditional retail method Plan, manage, and analyze inventory in retail dollars Markdowns Markdowns trigger an adjustment to the retail value of inventory Markdowns create in the current period a write-down of the cost value of inventory (using a cost %) COGS is increased for the current period by the markdown cost adjustment Revenue and expense recognition timing is the same Most transactions are valued the same ERMA and RMA can feed OTB with markdown values

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Comparison of ERMA to RMA -2Differences with the traditional retail method Level of inventory management ERMA: location/item level RMA: category or department level Cost complement ERMA: current margin RMA: (Available for Sale @ Cost) / (Available for Sale @ Retail) Gross margin % ERMA: item level RMA: blended at category or department level COGS ERMA: units * cost, plus markdown cost adjustment RMA: apply a cost % to the total retail reductions Ending inventory at cost is not derived from a cost % Initial margin based on purchases ERMA: new purchases impact item margin only RMA: new purchases impact blended category margin
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Differences Between ERMA and RMA

ERMA
Level of inventory management Cost complement Markup and markdown cancellations Transfers at retail Location / Item Current margin or markup % No If the retail price differs between locations, then the inventory is revalued to the receiving location price and the receiving store takes the adjustment, which goes to receipts Moving average cost of sending location is used

RMA
Location / Category, department, etc. Available for sale (cost / retail) Optional If the retail price differs between locations, then the sending location or the receiving location can take the adjustment; original retail price can be taken into account or not 2 options: (1) apply most recent cost complement to the retail value, or (2) use the moving average cost, which the system calculates anyway Blended at category or department level Apply cost complement (%) to the total retail reductions Derived from a cost complement New purchases impact blended category margin

Transfers at cost

Gross margin % COGS

Item level Moving average cost of goods movements (e.g., sales, actual shrink) + markdown cost adjustments Not derived from a cost complement New purchases impact item margin only

Ending inventory Initial margin or markup (IMU) based on purchases

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Supply Chain Analytics/ Stock ledger Analytics

Overview Stock Ledger Analytics General motivation Inventory valuation methods ERMA Stock Ledger Basics Business Content Business Content Infocubes Business Content Reporting Working with ERMA Stock ledger

SAP 2009 BW Retail Content Supply Chain Analytics / Page 19

Extended Retail Method (ERMA)

The hybrid or extended retail method is a best of both worlds approach combining elements of the cost method and traditional retail method Takes advantage of the benefits of using the cost method while allowing the merchants to remain in the familiar territory of the retail method An alternative to RMA Inventory values are updated after every inventory transaction, i.e., perpetual inventory Inventory is managed at the location/item level, not a category or department level Inventory is tracked in both cost and retail values using a base unit of measure The cost flow is moving average cost Markdowns may cause adjustments to the cost value of inventory Creates a markdown cost adjustment that is taken in the current period Cost of goods sold is calculated by taking the cost of the exited inventory (e.g., sales, shrinkage) plus the markdown cost adjustment

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ERMA and integration of POS sales

Stock Ledger analytics in the sense of the extended retail method goes beyond common business content based on SAP inventory management, since it includes the analysis of POS sales as the main sort of inventory-reducing action at most retailers to a degree ERP material documents in general cannot provide. This takes actual sales as well as POS markdowns and promotional markdowns into account. Therefore, the only way to treat actual sales and POS markdowns as separate key figures in the stock ledger is to include sales documents into the analysis. POS transactions transferred directly to BI via PIPE strategic tool for uploading POS data to SAP backend systems with all the potential of enhancing its functionality allows for a more detailed differentiation of actual sales and discounts by various grouping criteria if desired by the customer SD billing item data source is still needed for including customer billing documents in the stock ledger, as is required by retailers using, for instance, the SAP retail store.
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CMA and ERMA Stock Ledger Flow

General Ledger

Cost $

Accounting Document Inventory Transactions (receipts, transfers, markdowns, etc.)

CMA/ERMA Stock Ledger

Cost $ Retail $ Units Stock Ledger Analytics Article Document POS Transactions (sales, returns, employee discounts, etc.)

SAP 2009 BW Retail Content Supply Chain Analytics / Page 22

ERP

BI

POS

Supply Chain Analytics/ Stock ledger Analytics

Overview Stock Ledger Analytics General motivation Inventory valuation methods ERMA Stock Ledger Basics Business Content Business Content Infocubes Business Content Reporting Working with ERMA Stock ledger

SAP 2009 BW Retail Content Supply Chain Analytics / Page 23

Supply Chain Analytics/ Stock ledger Analytics

Overview Stock Ledger Analytics General motivation Inventory valuation methods ERMA Stock Ledger Basics Business Content Business Content Infocubes Business Content Reporting Working with ERMA Stock ledger

SAP 2009 BW Retail Content Supply Chain Analytics / Page 24

Objects of the Stock Ledger Analytics

ERP DataSources:

DataSources

2LIS_03_BF, 2LIS_03_UM, 2LIS_03_BX, 2LIS_40_REVAL, 2LIS_13_VDITM BW DataSources 0RT_PA_TRAN_CONTROL

InfoSources

2LIS_03_BF_TR, 2LIS_03_UM_TR, 2LIS_03_BX_TR, 2LIS_40_REVAL_TR, 2LIS_13_VDITM, 0RT_PA_TRAN_CONTROL_TR, 0RT_SL_01, 0RT_SL_02, 0RT_SL_03, 0RT_SL_04, 0RT_SALES,

DataTargets

Foundation: 0RSL_DS51, 0RT_DS52, 0RT_DS53, 0RT_DS54, 0RT_DS55 Stock Ledger: 0RSL_C01, 0RSL_C02, 0RSL_MP01

SAP 2009 BW Retail Content Supply Chain Analytics / Page 25

Supply Chain Analytics/ Stock ledger Analytics

Overview Stock Ledger Analytics General motivation Inventory valuation methods ERMA Stock Ledger Basics Business Content Business Content Infocubes Business Content Reporting Working with ERMA Stock ledger

SAP 2009 BW Retail Content Supply Chain Analytics / Page 26

Standard ERMA and CMA Reports


Period Report Select a specific period Merchandise hierarchy and buyer versions Periods-to-Date Report Week-to-Date Month-to-Date Quarter-to-Date Year-to-Date Merchandise hierarchy and buyer versions Historical Comparison Report A current year period Same period last year Variance Merchandise hierarchy and buyer versions

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ERMA (and CMA) Financial and Operational Benefits


Improve visibility Item level profitability Vendor profitability Merchandise and financial books match Improve accuracy, tracking and control of inventory RMA is an averaging method developed prior to advent of perpetual inventory systems Avoid abusive practices Reduce working capital tied up in unnecessary inventory Improve category margins and net profit Increase revenue Improve negotiating power with suppliers Reduce shrinkage

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Key Performance Indicators ERMA (KPIs)


Average Unit Value - Retail $ Average Unit Value - Cost $ Cost of Goods Sold (COGS) Gross Margin $ Gross Margin % Maintained Markup $ Maintained Markup % Beginning Margin $ Beginning Margin % Beginning Markup $ Beginning Markup % Initial Margin $ Initial Margin % Initial Markup $ Initial Markup % Cumulative Margin $ Cumulative Margin % Cumulative Markup $ Cumulative Markup % Current Margin $ Current Margin % Current Markup $ Current Markup % Inventory Turnover (Retail) Inventory Turnover (Cost) GMROI % Sell Through % Inventory to Sales % Permanent Markdown % POS Markdown % Promotional Markdown % RTV to Receipts % RTV to Sales % Customer Returns % Count Adjustments % Manual Adjustments % Shrinkage %

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Key Performance Indicators CMA (KPIs)

Cost of Goods Sold (COGS) Gross Margin $ Gross Margin % Inventory Turnover (Cost) GMROI % Sell Through % Inventory to Sales % RTV to Receipts % RTV to Sales % Customer Returns % Count Adjustments % Manual Adjustments % Shrinkage %

SAP 2009 BW Retail Content Supply Chain Analytics / Page 30

Supply Chain Analytics/ Stock ledger Analytics

Overview Stock Ledger Analytics General motivation Inventory valuation methods ERMA Stock Ledger Basics Business Content Business Content Infocubes Business Content Reporting Working with ERMA Stock ledger

SAP 2009 BW Retail Content Supply Chain Analytics / Page 31

Do's and Don'ts: Useful hints -1-

Fiscal year variants and virtual time hierarchies should be defined consistently first It is important to load relevant master data before upload of transaction data Copying of content queries with cell references could lead to inconsistencies In case of expected performance problems or in order to improve performance you can decide to use account model OR key figure model and deactivate the model which is not needed.

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Do's and Don'ts: Useful hints -2Enrichment of article movement Data ( structured articles)

Implementation WRSL_MATMOV_BW of BADI WRSL_MATMOV_BW must be activated explicitly see Customizing in ERP

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Useful notes
1146785 - Quantity for local markdowns incorrect in ERMA Stock Ledger In the situation that an article is sold at the same day once within a promotion and at the same day regularly without a promotion assignment, the Quantity for local markdowns is not correct displayed in ERMA and Cost Stock Ledger. 1147052 - Overall manual stock adjustment wrong Stock ledger adjustments as a result of synchronizing the stock ledger ending inventory with ending inventory calculated by ERP, using the transformations from info cube 0RSL_C01 to the cube itself, do not contribute to the overall manual stock adjustment key figures (0RSLINTCOBU etc.). 1139734 - Incorrect mapping in transformation into 0RMA_C02 1138737 - incorrect update of revaluations 1138826 - Goods issue and goods receipt from stock in transit 1102271 - Reading master data in the start routine 1099816 - Performance of transformations into InfoCubes 1150054 - Transformation 0RT_DS53 -> 0RT_SL_02 cannot be activated 1110726 - How to enhance the BI content for ERMA stock ledger

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ERP Enhancements for Stock Ledger Analytics

The ERP enhancements for Stock ledger Analytics are technical in nature and not readily visible to the user. They include: Table USEG has been enhanced by two new flags which indicate whether revaluation has taken place because of a promotional markdown or manual adjustment (local markdown) or because of both reasons holding at the same time Enhancements to revaluation and inventory management function modules (and a structure that feeds back a revaluation function module) Enhancements to the extraction process from ERP to BW, including New fields in several table (e.g., USEG, MSEG, TMCA, WRF6, T001K, TWZLA, T134, MARV) New extraction structures Enhancements of the data sources

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DataSources

Data Source Name


0RT_MATTYPE_ATTR

Description
extracts article type attributes developed specifically for the retail sector, whereby the article type ID indicates whether you are trading an article or merely using it as an empties article or packing material. extracts the value-only article to which you post the stock using the customer number of the site and the merchandise category for value-based inventory management. The system requires this information to balance POS Data Management data in SAP NetWeaver BI. extracts attributes of the retail revaluation profile This determines in particular whether markdowns in promotions or at POS lead to stock revaluations centrally, or whether these markdowns are handled locally at the POS. The system requires this information for comparison with data from POS DM in SAP NetWeaver BI.

Data Target
0RT_DS05

0RT_MGR_VALART_ATTR

0RT_DS04

0RT_REVPROF_ATTR

0RT_SPSTRUC_ATTR

determines whether the structured article is to be split into its components for inventory management. This is carried out for every article type (sales set, prepack, or display) and site category (store or distribution centre) depending on the additional optional parameters (purchasing organization, distribution channel, site, and structured article). The system provides information separately for the goods receipt and purchase order processes and requires this information for comparison with data from POS DM in SAP NetWeaver BI extracts the valid information concerning valuation and inventory management for every valuation area and material group combination. The system requires the valid retail revaluation profile for comparison with data from POS DM in SAP NetWeaver BI.

0RT_DS02

0RT_VALAREA_ATTR

0RT_DS03

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DataSources
Data Source Name
0COMP_CODE_MAT_ATTR

Description
extracts attributes of the article management record and displays the open posting period for article movements. The system requires this information to balance the closing stock of report Stock Ledger Variance from ERP Inventory (0RSL_MP01_Q0020) with the stock posted in the ERP system.

Data Target
0RT_DS05

Append
0RT_RSL_03_BF_AP

Description
Article Movements from Inventory Management for Stock Ledger extracts additional attributes for article movements and movement types if structured articles are split into their components for inventory management. The system requires this information for comparison with data from POS DM in SAP NetWeaver BI. When the DataSources are transferred from BI Content, the system adds the fields of this append DataSource to the 2LIS_03_BF DataSource fields.

Data Target

0RT_RSL_ARTICLE_AP

Article Number for Stock Ledger extracts additional merchandise-category hierarchy attributes for the article data. The system requires this information for stock ledger analytics evaluations at the merchandise-category hierarchy level. When the DataSources are transferred from BI Content, the system adds the fields of this append DataSource to the 0ARTICLE_ATTR DataSource fields.

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Supply Chain Analytics/ Stock ledger Analytics

Retail Method of Accounting Basics Business Content Analysis Scenarios Business Content Infocubes Business Content Reporting Process Chains Working with RMA Customizing Important Notes

SAP 2009 BW Retail Content Supply Chain Analytics / Page 38

Traditional Retail Method (RMA)

Many retailers use the traditional retail method of accounting to value their inventory. It is more common in situations where there are many different types of merchandise at low unit cost with a large number of transactions. Focus is to manage the category or department margin, not item margin ( manage on aggregate levels) Margin is managed at an aggregate level (e.g. merchandise category) Financial inventory transactions are captured into "buckets " throughout a defined period Cost of sales and ending inventory at cost are derived by applying a cost % to the retail values of inventory The current value of inventory is unknown until it is calculated at the end of the period (e.g., month). A simple illustration of the RMA calculation is provided here

SAP 2009 BW Retail Content Supply Chain Analytics / Page 39

Background
Most commonly used in fashion and general merchandise, but not uncommon in grocery and hard lines Most common in Americas Asia Pacific Japan Australia and New Zealand India Generally not found in Europe (although some European retailers with global operations use it regionally) More common with older retailers, less so with newer ones

RMA is a philosophy or mindset It involves tracking and calculating inventory information that drives margins, compensation, reporting, buying, pricing, and other merchandising decisions RMA was developed before the advent of perpetual inventory systems RMA is used today because of perceived advantages, tradition, merchant familiarity and switching costs
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Why retailers use RMA


MANAGEMENT REASONS
Smoothes out margins over a season or period e.g., high margins at begin of season/low margins at the end are evened out Considered more conservative e.g., markdowns reduce carrying value of inventory when booked and do not wait until the selling price drops below the carrying cost Automatically carries out the lower of cost or market calculation Easier to allocate certain aggregate costs and vendor allowances Cost method can create negative margins Happens if selling price drops below inventory carrying costs For RMA, a blended category margin for an overall period usually hides this Tends to be more tolerant of data input errors e.g., unit data errors may not have a material impact

BARRIERS TO CHANGE
Legacy systems limit the ability to change Tradition and ingrained behavior RMA is a mindset Merchants know the levers to pull to get the desired results Switching costs Possible adverse profit or tax impact from switch Involvement of auditor Disruptive process, re-training requirements
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Overview: RMA Stock Ledger


The general requirement for a standard RMA solution can be broken down into four high level requirements: Collect Inventory Transactions into RMA Stock Ledger Buckets Inventory transactions and goods movements are collected throughout the defined period by type. Provide a Flexible RMA Formula That Calculates the RMA Results The RMA calculation formula shall be configurable so that a customer can define the RMA formula and its calculation components, which items go above line, which items go below line, which items are accruals, subtotals, how one calculation component relates to another (e.g., planned shrinkage is a % of net sales) and be able to address custom requirements by adding a new goods movement or inventory transaction type to be included as part of the RMA calculation formula. The customer could then map the relevant goods movements or inventory transactions to that type or bucket. support of detailed and unique requirements Standard RMA Stock Ledger Reports A unified view to all relevant inventory activity Calculate key ratios Post RMA Calculation Results End of period calculation of results and closing process Post results into general ledger (and other relevant processes, such as, planning and open-to-buy) Ending inventory at cost COGS Planned shrinkage reserve (reconciled at physical inventory) Reverse and repost corrected results, if needed The collection of the buckets, the RMA valuation and the outbound to General Ledger are performed in BI.
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RMA Stock Ledger Flow

General Ledger

Cost $

Accounting Document Inventory Transactions (receipts, transfers, markdowns, etc.)

Compare RMA to CMA inventory values and post adjustments to special inventory and COGS G/L accounts.

RMA Stock Ledger

Stock Ledger Analytics

Cost $ Retail $

Article Document POS Transactions (sales, returns, employee discounts, etc.)

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ERP

BI

POS

RMA Components Overview

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Supply Chain Analytics/ Stock ledger Analytics

Retail Method of Accounting Basics Business Content Analysis Scenarios Business Content Infocubes Business Content Reporting Process Chains Working with RMA Customizing Important Notes

SAP 2009 BW Retail Content Supply Chain Analytics / Page 45

Supply Chain Analytics/ Stock ledger Analytics

Retail Method of Accounting Basics Business Content Analysis Scenarios Business Content Infocubes Business Content Reporting Process Chains Working with RMA Customizing Important Notes

SAP 2009 BW Retail Content Supply Chain Analytics / Page 46

Analysis Scenario: RMA Stock ledger


The following DataStore objects form the basis for the RMA run/calculation: 0RSL_DS51 0RT_DS52 0RT_DS53 0RT_DS54 During the transfer the raw data is merged in RMA buckets in the InfoSource 0RT_RMA_01. The clustered data is stored by direct assignment in DataStore object 0RMA_DS01 and forms the basis for the RMA calculation. In addition the initial stock can be included using the InfoSource 2LIS_03_BX_TR and the DataStore 0RMA_DS01. The RMA engine calculates the RMA result (RMA Value and RMA Inventory Value) from the RMA buckets based on a calculation schema (RMA formula). This data is stored via direct assignment in separate RMA result buckets in the DataStore object 0RMA_DS01. This resulting data is used for posting back to FI. The data is made available in InfoProvider 0RMA_C01 for reporting.

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Analysis Scenario: RMA Recasting


RMA Recasting reprocesses the RMA raw data based on the current object hierarchy in order to correctly take into account reclassifications during the course of a posting period and to enable analysis of the performance of RMA objects in a historical comparison. This data flow can be seen as a supplement to the data flow of the analysis scenario RMA Stock Ledger in cases where Recasting is in use.

The DataStore object 0RMA_DS10 forms the basis for the ongoing correction of the initial inventory for each posting period in the DataStore object 0RMA_DS01 due to reclassifications. The recasting of all remaining RMA buckets takes place at the end of the posting period with the transformation from the DataSource 0RT_RMA_03. The RMA results data of this posting period, that is subsequently recalculated through the transformation from the DataSource 0RT_RMA_02, is flagged with a special version relevant for Accounting that cannot be overwritten. Past posting periods can also be covered by recasting. In this way, RMA results data under one reporting version can be overwritten several times by further recasting runs in subsequent posting periods. The latest data in each case is updated in the InfoProviders 0RMA_C01 and 0RMA_C02.

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Reclassification and Recasting


The architecture has to cope with the following particular challenges: Not only the RMA raw data of the current posting period need to be reclassified, but the data of as many periods in the past as the customer desires. At any given point of time in the current period, the user shall be able to see a preliminary picture of the RMA figures for this period, even if the data have not been finally reclassified. The RMA object hierarchy may change not only at the end of a period, but, basically, at any time with some exceptions. The data which are back-posted to FI, shall be based on a well-defined object hierarchy, and not be a mixture of different object hierarchies valid at different times. The RMA raw data for alternative calendars need to be reclassified and recast as well for reporting purposes. For instance, recasting of periods in the past lead to a more up-to-date view on historical data for reporting purposes, even after the data of those periods have been back-posted for FI, while those FI-relevant RMA figures are still available for auditing purposes. These various requirements led to a concept of versioning of both RMA raw data and RMA result data, which allows to have different versions of an RMA bucket for the same site, object and period, but for different usages. Moreover, these RMA recasting versions control on a fiscal year variant level, how many posting periods in the past have to be covered by the recasting. In order to make the settings of a version independent of the actual posting period, only the offsets of the beginning period and the ending period of a recasting period in comparison with the current period are configured. All these settings together form the recasting periods.

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Supply Chain Analytics/ Stock ledger Analytics

Retail Method of Accounting Basics Business Content Analysis Scenarios Business Content Infocubes Business Content Reporting Process Chains Working with RMA Customizing Important Notes

SAP 2009 BW Retail Content Supply Chain Analytics / Page 50

Objects of the RMA Stock Ledger

DataSources

ERP DataSources: 2LIS_03_BF, 2LIS_03_UM, 2LIS_03_BX, 2LIS_40_REVAL, 2LIS_13_VDITM, 0RT_RMA_VAL_TRAN BW DataSources: 0RT_PA_TRAN_CONTROL, 0RT_RMA_02, 0RT_RMA_03

InfoSources

2LIS_03_BF_TR, 2LIS_03_UM_TR, 2LIS_03_BX_TR, 2LIS_40_REVAL_TR, 2LIS_13_VDITM, 0RT_PA_TRAN_CONTROL_TR, 0RT_SL_01,0RT_SALES, 0RT_RMA_01, 0RT_RMA_02, 0RT_RMA_03, 0RT_RMA_10, 0RT_RMA_11, 0RT_RMA_12

DataTargets

RMA: 0RMA_DS01, 0RMA_DS02, 0RMA_C01, 0RMA_C02, 0RMA_MP01, 0RMA_DS10, 0RMA_DS11, 0RMA_DS12, 0RMA_DS13, 0RMA_DS14, 0RMA_DS15

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Supply Chain Analytics/ Stock ledger Analytics

Retail Method of Accounting Basics Business Content Analysis Scenarios Business Content Infocubes Business Content Reporting Process Chains Working with RMA Customizing Important Notes

SAP 2009 BW Retail Content Supply Chain Analytics / Page 52

Queries

Period Report Periods-to-Date Report Historical Comparison Report


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RMA Stock LedgerPeriod Report Merchandise Hierarchy (incl. VAT) (0RMA_MP01_Q0002)


This query provides the RMA results using the merchandise category hierarchy with VAT for a particular period. The report displays key figures, subtotals, and totals for all relevant inventory related transactions. All the key figures, sub totals and totals can be seen in the chart. The report also displays calculated key ratios using the key figures and specified formulas.

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RMA Stock LedgerHistorical Comparison Report AH (incl. VAT) 0RMA_MP01_Q0012

Historical comparison reports compares the RMA results for a particular Fiscal Year/Period (which is called as Current Year Period or CYP as in the reports) with pervious Fiscal Year/Period (which is called as Last Year Same Period or LYSP as in the reports). This report calculates RMA results using Article Hierarchy with VAT for Fiscal Year/Period and compares the result with last year same Fiscal period. Report displays report displays key figures, subtotals, and totals for all relevant inventory related transactions. There is ratio called Variance that s calculated from CYP and LYSP.

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RMA Stock Ledger - Period-to-Date Article Hierarchy (incl. VAT) 0RMA_MP01_Q0008


This report provides RMA results using Article hierarchy with VAT for Period to Date. The report displays key figures, subtotals, and totals for all relevant inventory related transactions for Week to Date (WTD in report) Month to Date (MTD in report) Quarter to Date (QTD in report) Year to Date (YTD in report) All the key figures, sub totals and totals can be seen in the chart. The report also displays calculated key ratios using the key figures and specified formulas.

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Standard RMA Key Performance Indicators (KPIs)


Gross Margin $ Gross Margin % Maintained Markup $ Maintained Markup % Beginning Margin $ Beginning Margin % Beginning Markup $ Beginning Markup % Initial Margin $ Initial Margin % Initial Markup $ Initial Markup % Cumulative Margin $ Cumulative Margin % Cumulative Markup $ Cumulative Markup % Current Margin $ Current Margin % Current Markup $ Current Markup % Inventory Turnover (Retail) Inventory Turnover (Cost) GMROI % Sell Through % Inventory to Sales % Permanent Markdown % POS Markdown % Promotional Markdown % RTV to Receipts % RTV to Sales % Customer Returns % Count Adjustments % Actual Shrinkage %

SAP 2009 BW Retail Content Supply Chain Analytics / Page 57

Supply Chain Analytics/ Stock ledger Analytics

Retail Method of Accounting Basics Business Content Analysis Scenarios Business Content Infocubes Business Content Reporting Process Chains Working with RMA Customizing Important Notes

SAP 2009 BW Retail Content Supply Chain Analytics / Page 58

Process Chain 0RT_RETAIL_FOUNDATION

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Process Chain RMA "Complete RMA Process Chain"


Complete RMA Process Chain 0RMA_DSO_DATA_LOAD_P01 handles the Trade Foundation Layer, composed of the following DataStore objects: 0RSL_DS51 (Item Movements for Stock Ledger) 0RT_DS52 (Stock Revaluation) 0RT_DS53 (Retail Revaluation at Retail) 0RT_DS54 (Retail Sales) 0RT_DS55 (POS markdown) An automatically activated InfoPackage adjust the RMA relevant data from DataStore object 0RMA_DS01 and transfers it with the help of the DataSource 0RT_RMA_02 to the relevant PSA table. Afterwards the following data transfer process takes place: 0RT_RMA_02 / BI system -> 0RMA_DS01. The data is taken from the PSA and processed with the help of an expert routine in the relevant transformation. Behind the expert routine the RMA run is hidden. The result of the RMA run is written back into the DataStore object 0RMA_DS01 . A second process adopts the additional release of the new RMA data in the RMA DateStore object 0RMA_DS01.
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Process Chain RMA " RMA Recasting of Initial Inventory "


RMA Recasting of Initial Inventory 0RMA_DSO_RECAST_P01 RMA reclassification covers two blocks. You can reclassify the initial inventory or the individual goods movements yourself. This process chain serves to automatically load all the master data relevant for the RMA reclassification and the subsequent reclassification of the initial inventory. The relevant master data is stored in InfoObject 0MATERIAL, 0CM_SKU and the DSO 0RMA_DS10. The reclassified initial inventory is stored in 0RMA_DS10.

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Process Chain RMA " RMA Recasting of Goods Movements "


RMA Recasting of Goods Movements 0RMA_DSO_RECAST_P02

The start of the process chain is the InfoPackage 0RT_RMA_03. The next step is the DTP from the PSA of the DataSource 0RT_RMA_03 in the DataSource object 0RMA_DS01. An activation process ensures the release of the new RMA data in the RMA DataSource object 0RMA_DS01.
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Supply Chain Analytics/ Stock ledger Analytics

Retail Method of Accounting Basics Business Content Analysis Scenarios Business Content Infocubes Business Content Reporting Process Chains Working with RMA Customizing Important Notes

SAP 2009 BW Retail Content Supply Chain Analytics / Page 63

Supply Chain Analytics/ Stock ledger Analytics

Retail Method of Accounting Basics Business Content Analysis Scenarios Business Content Infocubes Business Content Reporting Process Chains Working with RMA Customizing Important Notes

SAP 2009 BW Retail Content Supply Chain Analytics / Page 64

Retail Method of Accounting Prerequisites

implementation of SAP ERP and SAP BI In ERP the valuation at cost price (CMA) must be active and the inventory must be correspondingly initialized. The valuation according to RMA is carried out as follows: at the end of each posting period the inventory values according to RMA are recalculated and the differences are posted to special correction accounts in FI. To ensure correct consideration of sales at the cash desk in the RMA, you also require SAP POS DM in order to transfer the sales directly from the POS to SAP BI. With this component you can aggregate all inventory-changing, RMA-relevant transactions at the level required for RMA, that is, the RMA valuation object, you can carry out the calculation according to RMA, and you can transfer the results to Accounting. In the SAP BI reporting you can analyze the RMA inventories flexibly according to different criteria.

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RMA Administrator Workbench

A single point of entry for key tasks: Location settings Turn on RMA valuation for a location Import the merchandise hierarchy valid for this location

Valuation level settings Turn on or off RMA valuation for that valuation level object RMA valuation is used for management reporting only or management reporting and financial reporting End of period closing process / postings to the general ledger

Post, reverse, re-post end-of-period postings to the general ledger

Mass maintenance tools Use reference stores to simplify maintenance

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RMA Administrator Workbench

TA: WRMA_ADMIN
Change Parameters

Some of the functions that are mentioned on previous slide are performed within the RMA workbench. The functions are as follows: Maintain the RMA parameters for the stores Mass maintenance RMA parameters for stores Import the merchandise or article hierarchy into the RMA object hierarchy Set the RMA object relevancy for RMA objects Post the RMA results into ERP General Ledger Repost results View the application logs of the posting runs to ERP Reversal
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Supply Chain Analytics/ Stock ledger Analytics

Retail Method of Accounting Basics Business Content Analysis Scenarios Business Content Infocubes Business Content Reporting Process Chains Working with RMA Customizing Important Notes

SAP 2009 BW Retail Content Supply Chain Analytics / Page 68

Useful notes

1139163

Missing RMA delivery Customizing In delivered Retail Method of Accounting (RMA) Customizing, some entries that are essential to using the RMA engine p productively are missing.

1139771

RMA: Reclassification and sales sets

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