Introduction

• See how retail companies are succeeding with SAP SAP Road Map for Retail Explore how our current, upcoming, and planned innovations help retailers become immersed in consumer lives through trusted experiences, delivered profitably and at scale.
• Read Book Sap Retail User Manual Configuration as SAP Retail - SAP Help Portal SAP IS Retail: End Users Guide to Pull & Push Based Replenishment Process. The replenishment process in SAP Retail module is used to replenish merchandise from the vendor to the store. In this end user manual, the following processes are explained step-Page 7/24.

Sap Configuration Tool

Feb 17, 2017 SAP SD Training Tutorials for Beginners SAP SD T-codes SAP SD User Exit for Billing Document SAP SD User Exits for Sales Order SAP Customer Down Payment Configuration SAP PGI (Post Goods Issue) SAP IS-Retail Module SAP Incoterms SAP SD Variant Configuration Steps SAP SD Configuration Step by Step Guide SAP SD Credit Management Interview.

Recently I have seen few interesting articles about strategies how companies set prices of sales. I have to admit that after the lecture I was a bit surprise how complex it is. In case when the company manufacture their own products usually distribution is done to the wholesales or direct distribution to end client but majority of distribution goes to wholesalers and focus goes more to logistics processes the sales price calculation. Additionally with this business model manufacturing company knows or can predict in advance costs of production and final sales prices. With this approach standard ECC functionality seems to be sufficient as it’s still full of options.

• Grouping Customers via price lists or price groups (set in Customer master data).
• Grouping material is as well possible via material groups (set in material master data).
• Sales area via pricing reference distribution channel or division seems to be enough (set in customizing).
• Pricing reference material (set in material master data).

Regarding maintenance here is my humbled opinion that Sap does not provide robust solution. We have VK31, a bit “raw”, VK11 manual work and maintaining using index.

Totally different situation is in retail business where trader’s main area of operation is to buy cheap and sell with profit. This margin is crucial for retail companies while they are not able to decrease costs of production as a kind of income so the single income (of course we can talk here about services etc) comes from margin calculated for a huge number of articles that company trade with.

Sap Retail sales price calculation

As described in the introduction to this article, retail pricing works a bit differently than “standard” ECC pricing. The most important are margins which are main income for trading companies.

Scenarios for purchase of goods:

• Vendor deliver goods directly to store.
• Vendor deliver goods to distribution center and then merchandise distribution to stores.

Sales scenarios:

• Sales from distribution center to Customer.
• Sales from store to Customer.
• Sales between two distribution centers – calculation of transfer price*.
• Sales from distribution center to store – calculation of transfer price*.

‘* This could be simple Stock transfer order where no pricing procedure is executed or scenario with purchase price calculation with billing document

Purpose of sales price in Retail

I assume this could be the most important to understand, that purpose of Sales pricing calculation execution in Retail is generation of condition types records used later on in different pricing procedures like sales to wholesales Customer, retail Customer or intercompany processes. Condition type records are created with pricing document that can be released, rejected etc.

Pricing procedures used throughout the process

• MM pricing procedure – used to calculate purchase price of goods from Vendor to DC/Store.
• SD pricing procedure – used to sell goods to from DC/Store to end Customer.
• Retail pricing procedure – used to calculate transfer price (in case of merchandise distribution) or final price. Outcome of those calculation are pricing condition records created via price document.

Example structure of enterprise

The scenario that I use for test purpose is quite simple, one distribution center and three shops. Two shops are supplied by distribution center and one store has direct deliveries from Vendor. Shops sell in two distribution channels and third distribution channel is assigned to distribution center for purpose of transfer logistics and internal processes.

Sales Organization/Distribution channel:

• ZSH1/P1: Direct
• ZSH1/P2: Commercial
• ZSH1/P9: Internal DC

Sites:

• ZPD2 – Distribution center -> ZSH1/P9
• ZSK1- Store 1, ZSK2 – Store 2, ZSK3 – Store3 (supplied by external Vendor)
  • ZSH1/P1
  • ZSH1/P2

In case if you calculate sales price on the level of distribution channel, assignment to reference site is mandatory. This is because same distribution channel can be used in number of sites and data relevant for price calculation are maintained on site level, like source of supply, assignment to purchase organization etc.

Sales price calculation steps:

• Purchase price determination. External vendor – standard MM pricing procedure. Internal vendor – transfer price, determined via SD pricing procedure. If no price conditions records already exist, calculation is done in background.
• Calculation of Sales price (gross and net).
• Rounding of Sales price with price point rounding gives Final price.
• For wholesales Customers calculation of Retail price.

Purchase/Sales price determination

To calculate purchase prices, purchase price determination type is used. Calculated here purchase price is later on used to get sales price with predefined margins. The calculation starts with selection of source of supply. In each article for every distribution center or store, source of supply can be selected. Usually either standard (external vendor) or internal (transfer from another DC/store). Determination of purchasing price if external vendor is selected, the purchase price is determined on the basis of a purchase price calculation schema (standard for MM). If the source of supply is an internal vendor, the purchase price is determined on the basis of a calculation schema defined for sales price determination (transfer price).

As similar to purchase price calculation there are numbers of sales price determination procedures. Entry A means that whole calculation is performed based on purchase price and predefined markups. On the other hand entry B means that sales price is determined on currently existing condition records and here we can simulate impact of purchase price change or markup adjustment on our current sales price.

Different methods of calculating prices (one step, two steps)

Single-step price calculation is when store/DC procures articles directly from a Vendor, means no internal goods movement from distribution center to store. Calculating sales prices for the stores is based on the purchase price for external vendors (standard MM pricing procedure determination). Here important is that not all MM condition types will be taken into account for sales price calculation despite they are present in MM price procedure and have valid condition type record.

Image 1 – MM condition type validity on/off

Two-step calculation is executed for stores that are supplied by a distribution centers (internal vendors). Calculating sales prices for the stores is based on the transfer price for distribution centers (SD pricing procedure). Two step procedure is valid as well between two distribution centers.

In two step calculation if you calculate price for store and it supplying distribution center in one execution of transaction, two rows are present, one for price calculation for store and second for distribution center. Any changes done to row with distribution center will have immediate impact on calculation of price for store. If you execute two-step calculation price and there is DC transfer price at distribution chain level, it’s read from condition records. Otherwise online calculation for transfer price is performed in background and results are not stored in database.

Price point rounding

This setting allow the company to round final and retail price to some round or more user friendly values like 6.99 instead of 7.03 or 6.84. How does price point rounding work, was described several time. What is important here is the connection between type of distribution channel and selected rounding (can be for final price or retail price). If the distribution channel for which we calculate price is wholesales then retail price can be as well rounded.

Hint: Manual changes to Final price doesn’t involve rounding procedure.

Calculation

• Purchase price is calculated with MM pricing procedure (in case of external procurement) or with transfer price (in case of internal supply – SD pricing procedure) and assigned to subtotal S –Effective value
• Later on system execute Sales price determination procedure based on pricing procedure assigned to price type and determined base on sales area for which were used on selection screen for calculation program. Entry for calculation is previously determined purchase price.
• Planned markups are read from condition type AUFS and applied for purchase price
• Sales price gross and net is calculated form purchase price and markups
• Price point is determined and applied (price point assigned in Customizing to either merchandise category or to article hierarchy node). Final price is calculated
• Retail price is calculated based on Final price and which is rounded by different price point rounding (assignment in customizing can as well indicate same price point rounding )

Configuration with example

Distribution chain control.

In settings tells how distribution channel is used from Retail perspective.

Image 2 – Distribution channel P2 settings

Image 3 – Distribution channel P9 settings

Dist. chain category is essential setting from price point rounding determination (if Retail price should be rounded as well). DChain pricing level is used to allow level on which price calculation can be run. Same configuration is for P1 and P2 distribution channel.

Maintain price type.

This step is crucial from sales price calculation. Here we set which Sales price schema is used to calculate retail price (not purchase price). Data held field set how calculation will behave if purchase price will change in calculation program (markup is help, final price is held and markup is adjusted). In general parameters for pricing for Retail document schema is set and used during sales price determination.

Image 4 – Own pricing type

Image 5 – Example of Sales price calculation schema

For distribution channels P1 and P2 I use different Price type – ZSH2,which include Retail markup and retail price calculation.

Image 6 – Example of Sales price calculation schema with Retail price calculation.

Assign pricing type to organization level

Image 7 – Assigning price type and reference site to sales area.

This step bound Distribution channel with price type (sales price procedure) used for calculate retail price. Additionally as described above reference site is needed in case that selection screen for sales price calculation program doesn’t contain site.

Maintain Purchase Price Determination Sequence

Here I use standard system settings means use of standard MM schema determination and as well source determination (external or internal based on parameter from Article regarding source of supply).

Image 8 –Purchase price determination sequence.

Maintain Sales Price Determination Sequence

Detail about this step described above and selected option is A – Calculate sales price from planned markup.

Define List Variant and Assign Items

This configuration allow user to choose which fields are available in the program to calculate Retail price. Standard list variant 01- Standard retail list variant is sufficient.

Price Point Group

Define price point group setting was number of times described on SCN. During assignment we have to choose in which situation price point group will be used.

• 01 – Final Price
• 02- Retail price (for wholesalers only) – applied only if distribution channel for which calculation is executed has type “for wholesale trade”

Image 9 – Assign price point group to sales area.

Condition updates

This is second the most important step in configuration that consists of two task. First task is to assign values from retail sales pricing procedure (either subtotals or condition records) to fields in the list displayed by the program. Some listed fields are ready to input so in this case by changing value within, system will change value in pricing procedure and makes the recalculations. By assigning condition type, system will create/update condition record mentioned in condition type for selected application.

Image 10 – Example of match list field with condition/subtotal in sales price schema and further update of condition type record.

In Sales pricing schema WWS003 field ENDPR (Final price) is calculated by system (no reference to condition or subtotal in sale price procedure) and value from this field updates condition PR00 for application V.

Because the price can be calculated on three different levels (this depends on parameters that we enter on selection screen for pricing program): 01 – Distribution chain 02 – Site 03 – Price list, conditions might be stored in different condition tables according to selected level

Image 11 –Assignment of condition type on different level of calculation to condition table.

In this example sales condition PR00 on level 01 –distribution chain is stored in table 304 but on price list level in table 306.

Calculation run

Article: 891

Sites: DC – ZPD2 (standard source of supply) ,Stores: ZSK1 – internal ZSK2 – internal ZSK3 –external

Vendors: 1126 – price 200PLN, 1121 – 190 PLN 1122 – 233PLN

Image 12 – Calculation run for distribution channel P9 used internally by Distribution center ZPD2.

First calculation of price for distribution center ZPD2 – ZSH1/P9. Due to standard source of supply external Vendor is determined (cheapest ). System determine MM pricing procedure and execute pricing.

Image 13 – Calculation run results for distribution channel P9.

Last position in pricing procedure has in configuration set subtotal – S effective price and it’s copied as purchase price.

Image 14 – MM pricing procedure used to determine purchase price for distribution channel P9.

Hint: Not all condition types are visible in analyses of pricing procedure due to on condition type level field Rel. to pricing is not set.

Sales price pricing procedure comes from Price type assigned to SalesOrg/Distribution channel (image 7).

Image 15 – Calculation results – Sales price perspective.

At the end of processing system wants to update following condition records. Due to prices were calculated on level of Sales organization and distribution channel, system select for each condition tables for this type of upload.

Image 16 – Condition type records update in calculation for distribution center P9.

Now calculation price for all 3 stores and distribution channel P2 (no price rounding)

Image 17 – Calculation run results for distribution channel P2 and stores ZSK1, ZSK2, ZSK3.

ZSK1 and ZSK2 are supplied internally (from ZPD2 – distribution center) and first line for sales price determination on distribution channel level use reference site ZSK2 so transfer price is applied from ZPD2. Last line (store ZSK3) use external procurement so standard MM pricing is executed. Sales price pricing procedure is the same for all channels/stores and comes from price type calculation assigned to sales organization/distribution channel. Retail price is different because for some stores because store ZSK2 has 5% extra markup and store ZSK1 has 15% . Similarly beside transfer price for ZSK1 and ZSK2 is the same in Base cost column Net cost is different because ZSK2 store has extra discount due to for example short distance from DC.

Image 18 – Calculation results for P2 – Sales price perspective.

Image 19 –Condition update.

Skip to end of metadataGo to start of metadata

SAP for Retail Community Page - Setting Up SAP ECC as SAP Retail

Use

The requirements that retail companies place on software solutions, in particular in the areas of planning and distribution, are different from the requirements of industrial companies, with their production-oriented objectives. For this reason, SAP developed a special retail solution, which you can use by setting up the SAP ECC component as SAP Retail. You do this by activating the SAP Retail business function set.

Integration

Have you seen the SAP for Retail Business Process Expert wiki homepage on SCN? It is the central entry point to an elaborate knowledge repository for SAP for Retail. It contains not only a wealthy resource of information provided by business experts at SAP, but also contributions from community members, such as this page, as well!

Activating the SAP Retail business function set enables you to use functions developed specifically for the retail sector. These functions are described in this documentation. A significant difference between the retail system and a manufacturing system is the use of the article master as opposed to the material master. The majority of the retail-specific functions can only be used with articles and not with materials. In all other functions that are also relevant for retail, it is possible to use articles. However, it is often not possible to use articles in production-oriented functions. Note that most of these functions have not yet been tested with articles. There are no restrictions for using materials in an ECC system set up as SAP Retail, however, apart from in the Material Ledger and MRP Area functions.

• If you want to use articles in functions with a production focus, make sure that this has been thoroughly tested in your project.
• If you activate the SAP Retail business function set, you cannot use any other industry solutions. Once you have configured your system as an SAP Retail system, it cannot be reversed.

In the case of the terms 'material' and 'article', we differentiate between the master data and their designation on the system user interface. Whereas either 'material' or 'article' is used consistently for both master data records in the system , this part of the documentation uses 'material' for master data records that were created using the maintenance transactions in the standard system (manufacturing system), and 'article' for master data records created using the maintenance transactions in SAP Retail_._

Sap Is Retail Configuration Guide Pdf Windows 7

Prerequisites

You should only configure SAP ECC as SAP Retail if you are in possession of a valid license for SAP Retail.

Activities

If you activate the business function set SAP Retail, the core functions Material Ledger and MRP Area are no longer available. If you already use these functions and want to configure your system as an SAP Retail system, you must first deactivate these functions. The applications contain functions for reorganizing the data associated with this.

Vendor master processing represents another anomaly. If you make the relevant setting in Customizing in SAP Retail, changes made to master data can be automatically passed on to associated material master data and purchasing info records. While the standard system ignores these settings in Customizing in the account groups for vendors, any settings that have been made will become active when the SAP Retail business function set is activated, therefore potentially changing the system behavior. Before you switch on the business function set, you should therefore check the settings for transferring changes to master data in Customizing for Logistics - General under Business Partner ® Vendors ® Control ® Define Account Groups and Field Selection (Vendor) and, if necessary, adjust these settings.

Finally, activate the SAP Retail business function set. For more information, see the Implementation Guide under Activating SAP ECC Extensions.

Organizational Structure: Company Code

A company code is an independent accounting unit that represents an independent company in the legal sense. It is the central organizational element in Financial Accounting.

Use

In the retail sector, company codes can be used at distribution chain level or even at the level of individual stores. For this reason, goods movements (such as stock transfers) between different company codes are common in SAP Retail.

Integration

Various assignments between a company code and other organizational units are possible:

• A purchasing organization can be assigned to a company code. In this case, the purchasing organization can only order for sites within this company code.
• A valuation area is the organizational unit subject to inventory management on a value basis in the SAP system. In SAP Retail, the valuation area must always correspond to a site.

You assign a company code as an attribute to the valuation area that is already allocated to a site either in the site maintenance or in Customizing. Each sales organization must be assigned to a company code in Customizing. This assignment forms the link between Sales and Distribution and Accounts Receivable Accounting.

Organizational Structure: Site

A site is a store, a distribution center or a production location. In SAP Retail, the site is the organizational level at which merchandise replenishment is planned and stocks are managed.

Integration

A store is assigned one purchasing organization and one sales area (sales organization, distribution channel and division) and thereby also a distribution chain, to which the store belongs and which is used primarily for intercompany billing purposes. The store must be authorized to receive goods from the sales area to which the supplying distribution center belongs. If it is to be possible for merchandise to be transferred from one store to another, then the recipient store must also be authorized to receive goods from the sales area to which the supplying store belongs.

Each distribution center is assigned a purchasing organization (and, if required, a sales area) for determining warehouse transfer prices and units of measure.
A distribution center can also be assigned to a site (normally to itself) and a distribution chain (for determining sales prices). These assignments enable merchandise in the distribution center to be valuated at retail prices. This sort of valuation is most common in the apparel industry.
Each site belongs to exactly one company code.

Sites

This section describes the relationship between merchandise categories, departments, receiving points and goods recipients.

Departments

A store can be divided into departments and receiving points. Stores are divided into departments for the purposes of retail management.
Departments play an important role in store-internal logistics. A department can be assigned to one receiving point.

Merchandise Categories

Information can be stored at site/merchandise category level. This is important for the listing of articles and Inventory Management on a merchandise category level. A merchandise category can be assigned to a department at site level. Depending on the profile for value-based inventory management, you can define how inventory management is to be carried out per merchandise category.
The merchandise category to which an article belongs allows the following information to be determined for the supply of a store with merchandise:

• Departments to which articles are normally assigned. For example, article 4711 is assigned to merchandise category XY.
• Receiving points to which departments are assigned. For example, department E is assigned to receiving point 3.OG.
• Unloading points to which receiving points are assigned. For example, unloading point DOOR1 and goods recipient 1023 are assigned to receiving point 3.OG.

Receiving points

A store can have more than one unloading point. The carrier delivers goods to these unloading points.
A store has several departments. Departments can be determined for every store and merchandise category. When goods are received in a store, the system can automatically determine the department for every item in the delivery.

A store also has several receiving points. Every receiving point can be assigned one of the unloading points. Every department can be assigned a receiving point (for example, in the case of department stores).
The receiving point is located close to the goods recipient. The receiving point can be determined automatically via the merchandise category and the store concerned. This can be changed by the user, however.
The receiving point can be printed on delivery documents. Only items destined for the same receiving point can be contained in the one package.

Supplying Sites

Supplying (delivering) sites can be entered at merchandise category level to facilitate supply source determination. You can define a supplying site at site level as a default value. They can be maintained for different periods of validity.´

Sap Is Retail Configuration Guide Pdf Online

Merchant ID

The merchant ID is used for the settlement of payments made with payment cards (for example, credit cards, procurement cards) with the clearing house. The merchant ID is issued to retailers by the clearing house. If a site communicates with different clearing houses, different merchant IDs are possible.

Site Master Data

Purpose

A site is an organizational unit used to document goods stored in distribution centers and stores for the purposes of inventory management, and to model the associated business processes, such as goods receipt, physical inventory and goods issue.

The site master contains information on all the sites, that is all distribution centers and stores, in your company. This information is stored in master records for each individual site. The data contained in a site's master record then appears as suggested values for a wide variety of business processes.

Implementation considerations

These functions are part of the business function Retail Enhancements (ISR_RETAILSYSTEM) that you usually activate with the Retail business function set.
Storing the master records centrally and sharing them between applications means that you only have to enter data once. If a site has a change of address, for example, the new address only ever has to be entered once.

Integration

A site is an independent unit that has its own Inventory Management and orders its own stock. A site can, however, be considered as a customer, since sales functions, such as delivering and billing, are carried out by head office for the site. This is why a site is always maintained in SAP Retail in its capacity as a customer.

A distribution center is also a vendor (creditor), as it supplies merchandise to other sites.

Sites: Distribution Chains and Site Categories

Sites are grouped together in distribution chains for marketing purposes. For example:

• Chain of supermarkets with the same logo
• Home improvement centers in a company
• Wholesale chains of a company

In SAP Retail, a distribution chain consists of a sales organization and a distribution channel. You can maintain data relevant to sales (for example, conditions or assortments) for each distribution chain. For organizational reasons (for example, compilation of statistics), a site is assigned to only one distribution chain. However, deliveries can still be made to a distribution chain from a number of distribution centers. In the same way, one distribution center can supply goods to a number of distribution chains.
Each site is part of a company code. It is an independent unit that has its own Inventory Management and orders its own stock. Goods are procured referencing one or more purchasing organizations and are sold referencing one or more distribution chains. In retailing, one distribution chain is defined as the default for store trading.
There are two types of site in SAP Retail:

• Distribution centers / Wholesale warehouses
• Enables other sites and/or customers to be supplied quickly with goods
  A distribution center is assigned to a purchasing organization, and may also be assigned to a distribution chain for the purposes of sales price valuation, stock transfers and statistics. A distribution center can also supply a number of distribution chains. In the same way, a site can also be supplied with goods from different distribution chains.

Store

A store is a location in which goods are put on sale to the consumer. A store is assigned to one purchasing organization and one distribution chain.

Sites: Site Profiles

Use

When you create a site master record, you have to specify a site profile. Site profiles are used to differentiate site categories (distribution center or store) and control maintenance functions.

Features

The following site profiles are available:

• Distribution Center
• Store without internal settlement

All the transactions in the supply chain in this case take place within the same company code. From the point of view of the distribution center, no sales transaction takes place. The system therefore switches off the sales and billing screens in this case.

Store With Internal settlement

From the point of view of the distribution center, sales transactions involve different company codes. The sales and billing screens are available.

Store With External Settlement

Stores that do not belong to the company are supplied by the distribution center.

Wholesale Customer

This is a normal customer that is created as a site so that you can use site functions (for example, allocation tables, promotions, receiving points).

Franchisee

A franchisee is a merchant who operates as an independent company funded by equity capital and offers goods or services using a standardized marketing strategy in stores owned by a franchiser.

Integration

Sap Is Retail Configuration Guide Pdf 2017

Site profiles are assigned accounts groups (customer/vendor) and site categories (distribution center or store). The account groups mainly control number assignment and screen modification. You define the available site profiles in Customizing.

Sap Sd Configuration Guide

Once you have created a site you cannot change the site profile or the site category. Changes to the screen modification group in the site profile apply for all sites. However, changes to the site category only apply to sites created after you made the changes.