Price and RevenueManagement MarkdownPlanning

SAP Best Practices for Retail (France) SAP Best Practices

OverviewScenario Price and Revenue Management- MarkdownThis scenario is made up of several building blocks containing the preconfiguration required for the Price and Revenue Management Markdown scenario (Slow Seller Management). Building blocks can help to implement the solution and put into production quickly.Component ViewThe component view shows the processes and technical components that are involved in the Price and Revenue Management - Markdown scenario.

Business ViewThe business view shows the business partners participating in the Price and Revenue Management Markdown scenario, the entire scope of the business processes.

Scenario Overview 1Purpose In rule-based markdown controlling, markdown proposals that have been created in slow seller management in SAP BI are processed and then transferred to SAP ECC in a special work list. The list can be checked and revised in the Price Planning Workbench (PPW), a uniform working environment for price planning. Benefits Automated Markdown Management The system can monitor the sales of an article according to a profile assigned and automatically recommend markdowns, if sales are not inline with expectations. Budget functionality for price changes Planned budget(s) can be considered to allow the user to monitor the financial impact of his activities in the Price Planning Workbench and align with planning. For budgets overrun, a subsequent approval procedure can be set up.Key process flows coveredSlow Seller Analysis Comparison of sales targets to recent sales history according to profiles assigned to articles and recommendation of markdowns.Creation of a price plan that allows the user to check and optionally revise the system recommended price changes.Release and activation of the new sales prices.

Purpose and Benefits:

Scenario Overview 2Required SAP EHP3 for SAP ERP 6.0Company roles involved in process flowsRetail Markdown Planner for BI systemRetail Markdown Planner Manager for ECC systemRetail Markdown Planner Power User for BI systemRetail Markdown Planner Power User for ECC system

SAP Applications Required:

Process Flow Diagram

Retail Markdown Planner

Markdown Profiles SAP BI

Assign Articles to markdown profiles SAP ECC

Perform slow seller analysis

Slow seller analysis price activation level price list

Slow seller analysis price activation level distribution chain

Display worklist

Slow seller analysis price activation level site

Release markdown proposalsRetail Markdown Planner - ManagerRetail Markdown Planner Power User

Enrichment of the markdown proposals

Assign price planner group in SAP EHP3 for SAP ERP 6.0

Activate the price plan

Create condition in SAP ERP 6.0

Release a price plan

Create a price plan

Component View - Price and Revenue Management - Markdown System 2System 1BIPOSECCCreation and Maintenance of a markdown profileSlow Seller Analysis Release of Markdown proposals Price updateAssignment of markdown profile Creation of conditions Activation of the price plan Creation of a markdown price plan Enhancements of Markdown Proposal Release of the price plan

Price and Revenue Management/ Slow Seller Management Concept

Business Process OverviewFollowing steps are involved in the process1. Step: Creation and maintenance of a markdown profile in BI 2. Step: Assignment of a markdown profile to articles in ECC3. Step: Slow Seller Analysis in BI and display of worklist in BI4. Step: Release of markdown proposals in BI5. Step: Enhancement of markdown proposals in ECC6. Step: Creation of a markdown price plan in the Price Planning Workbench in ECC7. Step: Release of the price plan in ECC8. Step: Creation of conditions in ECC9. Step: Activation of the price plan ECC

Price and Revenue Management - Analysis

Master Data: Use Pricing Reference Article

Markdown Profile

Markdown budget Process Overview

ECCBIOperational pricing processesRetail Planning/Plan revisionPermanent markdown, manual price changes, promotionBudget checkPlanning step 1......Budget planningPlanning step NPlanned markdown poolsActual PPW poolsTarget PPW poolsBudget planning data transfer

Budget-Check

Budget-Check:Price planning document>= 0?ECCTarget valuesCurrent used valuesPPD 100.000 80.00018.000 80.000PPD 100.00024.000 100.000 98.000Positive 100.000 80.000Negative

Status of a Price Plan

LegendHardcopy / DocumentFinancial ActualsBudget PlanningManual ProcessExisting Version / DataSystem Pass/Fail Decision

External to SAPBusiness Activity / EventUnit ProcessProcess ReferenceSub-Process ReferenceProcess Decision

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