Upload
szeraoui1595
View
50
Download
7
Tags:
Embed Size (px)
Citation preview
Supply Chain Analytics
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 2
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 3
Supply Chain Analytics/Stock ledger Analytics
General motivationInventory valuation methods
ERMA Stock LedgerBasicsBusiness Content
Business Content InfocubesBusiness Content Reporting
Working with ERMA Stock ledger
Overview Stock Ledger Analytics
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 4
Supply Chain Analytics/Stock ledger Analytics
BasicsBusiness Content
Analysis ScenariosBusiness Content InfocubesBusiness Content ReportingProcess Chains
Working with RMACustomizingImportant Notes
Retail Method of Accounting
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 5
Supply Chain Analytics/Stock ledger Analytics
General motivationInventory valuation methods
ERMA Stock LedgerBasicsBusiness Content
Business Content InfocubesBusiness Content Reporting
Working with ERMA Stock ledger
Overview Stock Ledger Analytics
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 6
BI Trade Analytics
Foundation
Process View BI Trade Analytics
MAPMarkdownPlanning/ Slowseller AnalysisDemandManagementCategory Planning
AssortmentManagement
VendorManagement/ SRM
Global TradeWholesale
InventoryManagementF&RERMARMAAgency BusinessWholesale
POS DMStore ManagerProduct AffinityMetricsLoyaltyStaff Works/ WFMPCABusiness ViewsWholesale
Planning BuyingStorage/
DistributionSupply Chain Analytics
SalesStore Analytics
Master Data
Procurement SalesInventory
Article Hierarchy
Structured ArticleProduct/Location
Article List
Fashion master data
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 7
Inventory and Distribution Cost
Major Cost Factors for a typical RetailCompany
Labor Cost
Real Estate Cost
Other
40- 50%
20- 30%
2-10%
2-5%
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 8
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 methoddefined for use, and then calculates the results. The results and reports will be slightly differentdepending on the valuation method defined and the inventory activity that is tracked, but theoverall purpose of the stock ledger remains the same.
The stock ledger is the foundation for merchandising activities, a tool for decision-making, and is the nervous system of a retailer. It is an essential part of monitoring andreporting business performance.
One of the most visible aspects of the stock ledger is the stock ledger reporting, which is criticalto a retailer in terms of monitoring performance and managing inventory effectively. Thesereports provide a unified view across organizational and merchandise hierarchies of allinventory activity types and visibility to key performance indicators.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 9
Key Concepts for SAP Inventory Management
Document PrincipleAccounting principle of “no posting without a document”A document must be generated and stored in the system for every transaction/event thatcauses a change to inventoryInventory transactions create 2 postings:– Stock ledger– General ledgerOnce the document is posted it can’t be changed or altered; it can be reversed orreversed and replaced with a new document
Goods Movement / Movement TypeEach 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)
RevaluationPrice changes and manual adjustments create changes to the inventory value at costand/or retail (e.g., markups, markdowns)Creates revaluation documents
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 10
Stock Ledger
Inputs:Opening inventoryPurchasesVendor returnsTransfersMarkupsSalesCustomer returnsMarkdownsPhysical inventoryAdjustmentsShrinkage…
Key Outputs:General ledger
Cost of sales (income statement)Closing inventory (balance sheet)
Stock ledger reportsSupport planning, OTB, etc.
Stock Ledger
events and transactionsthat impacts inventoryvalues and quantities
results of the inventorycalculation feed severalareas
Apply a method:
• Cost method (CMA)
• Traditional retail method (RMA)
• Hybrid or extended retail method (ERMA)
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 11
Supply Chain Analytics/Stock ledger Analytics
General motivationInventory valuation methods
ERMA Stock LedgerBasicsBusiness Content
Business Content InfocubesBusiness Content Reporting
Working with ERMA Stock ledger
Overview Stock Ledger Analytics
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 12
Inventory Valuation Methods
1. Cost Method
2. Traditional Retail Method
3. Hybrid (or Extended) Retail Method
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 13
1. Cost Method (CMA)
Perpetual valuation – every goods movement and relevant inventory events automaticallyupdate 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 valuesare 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 donot affect cost value of inventory
Cost of goods sold and ending inventory are calculated using the cost per unit multiplied byunits
current value of inventory is known; it does not need to be calculated at the end of the period.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 14
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 lowunit cost with a large number of transactions.
Inventory is primarily managed in retail values at aggregate levels, e.g., category ordepartment
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 arederived by applying a cost % to the retailvalues of inventory
The current value of inventory is unknown untilit is calculated at the end of the period(e.g., month).
A simple illustration of the RMA calculation isprovided here
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 15
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 automaticallyupdate inventory units and values at both cost and retail, the current value ofinventory is always available
Inventory is managed at both cost and retail using a base unit of measureThe 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 onlyretail, 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 16
Comparison of ERMA to RMA -1-
Similarities 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
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 17
Comparison of ERMA to RMA -2-
Differences with the traditional retail methodLevel 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
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 18
Differences Between ERMA and RMA
2 options: (1) apply most recent costcomplement to the retail value, or (2) use themoving average cost, which the systemcalculates anyway
Moving average cost of sending location isused
Transfers at cost
If the retail price differs between locations,then the sending location or the receivinglocation can take the adjustment; originalretail price can be taken into account or not
If the retail price differs between locations,then the inventory is revalued to thereceiving location price and the receivingstore takes the adjustment, which goes to“receipts”
Transfers at retail
OptionalNoMarkup and markdowncancellations
New purchases impact blended categorymargin
New purchases impact item margin onlyInitial margin or markup(IMU) based on purchases
Derived from a cost complementNot derived from a cost complementEnding inventory
Apply cost complement (%) to the total retailreductions
Moving average cost of goods movements(e.g., sales, actual shrink) + markdown costadjustments
COGS
Blended at category or department levelItem levelGross margin %
Available for sale (cost / retail)Current margin or markup %Cost complement
Location / Category, department, etc.Location / ItemLevel of inventorymanagement
RMAERMA
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 19
Supply Chain Analytics/Stock ledger Analytics
General motivationInventory valuation methods
ERMA Stock LedgerBasicsBusiness Content
Business Content InfocubesBusiness Content Reporting
Working with ERMA Stock ledger
Overview Stock Ledger Analytics
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 20
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 methodTakes advantage of the benefits of using the cost method while allowing themerchants to remain in the familiar territory of the retail methodAn alternative to RMA
Inventory values are updated after every inventory transaction, i.e., perpetualinventoryInventory is managed at the location/item level, not a category or department levelInventory is tracked in both cost and retail values using a base unit of measure
The cost flow is moving average costMarkdowns may cause adjustments to the cost value of inventory
Creates a markdown cost adjustment that is taken in the current periodCost 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 21
ERMA and integration of POS sales
Stock Ledger analytics in the sense of the extended retail method goes beyondcommon business content based on SAP inventory management, since it includes theanalysis of POS sales as the main sort of inventory-reducing action at most retailersto a degree ERP material documents in general cannot provide.
This takes actual sales as well as POS markdowns and promotional markdowns intoaccount.
Therefore, the only way to treat actual sales and POS markdowns as separate keyfigures in the stock ledger is to include sales documents into the analysis.
POS transactions transferred directly to BI via PIPEstrategic tool for uploading POS data to SAP backend systems with all thepotential of enhancing its functionalityallows for a more detailed differentiation of actual sales and discounts by variousgrouping criteria if desired by the customer
SD billing item data source is still needed for including customer billing documentsin the stock ledger, as is required by retailers using, for instance, the SAP retail store.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 22
CMA and ERMA Stock Ledger Flow
InventoryTransactions
(receipts, transfers,markdowns, etc.)
Cost $
Accounting Document
Article Document
CMA/ERMA Stock Ledger
General Ledger
Stock Ledger Analytics
ERP BI POS
POS Transactions(sales, returns, employee
discounts, etc.)
Cost $Retail $Units
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 23
Supply Chain Analytics/Stock ledger Analytics
General motivationInventory valuation methods
ERMA Stock LedgerBasicsBusiness Content
Business Content InfocubesBusiness Content Reporting
Working with ERMA Stock ledger
Overview Stock Ledger Analytics
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 24
Supply Chain Analytics/Stock ledger Analytics
General motivationInventory valuation methods
ERMA Stock LedgerBasicsBusiness Content
Business Content InfocubesBusiness Content Reporting
Working with ERMA Stock ledger
Overview Stock Ledger Analytics
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 25
Objects of the Stock Ledger Analytics
ERP DataSources:
2LIS_03_BF, 2LIS_03_UM, 2LIS_03_BX, 2LIS_40_REVAL, 2LIS_13_VDITMBW DataSources
0RT_PA_TRAN_CONTROL
DataSources
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,InfoSources
Foundation: 0RSL_DS51, 0RT_DS52, 0RT_DS53, 0RT_DS54, 0RT_DS55Stock Ledger: 0RSL_C01, 0RSL_C02, 0RSL_MP01DataTargets
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 26
Supply Chain Analytics/Stock ledger Analytics
General motivationInventory valuation methods
ERMA Stock LedgerBasicsBusiness Content
Business Content InfocubesBusiness Content Reporting
Working with ERMA Stock ledger
Overview Stock Ledger Analytics
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 27
Standard ERMA and CMA Reports
Period ReportSelect a specific periodMerchandise hierarchy and buyer versions
Periods-to-Date ReportWeek-to-DateMonth-to-DateQuarter-to-DateYear-to-DateMerchandise hierarchy and buyer versions
Historical Comparison ReportA current year periodSame period last yearVarianceMerchandise hierarchy and buyer versions
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 28
ERMA (and CMA) Financial and OperationalBenefits
Improve visibilityItem level profitabilityVendor profitabilityMerchandise and financial books match
Improve accuracy, tracking and control of inventoryRMA is an averaging method developed prior to advent of perpetual inventory systemsAvoid abusive practicesReduce working capital tied up in unnecessary inventory
Improve category margins and net profitIncrease revenueImprove negotiating power with suppliersReduce shrinkage
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 29
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 %
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 30
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 31
Supply Chain Analytics/Stock ledger Analytics
General motivationInventory valuation methods
ERMA Stock LedgerBasicsBusiness Content
Business Content InfocubesBusiness Content Reporting
Working with ERMA Stock ledger
Overview Stock Ledger Analytics
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 32
Do's and Don'ts: Useful hints -1-
Fiscal year variants and virtual time hierarchies should be defined consistentlyfirst
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 performanceyou can decide to use account model OR key figure model and deactivate themodel which is not needed.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 33
Do's and Don'ts: Useful hints -2-
Enrichment of article movement Data ( structured articles)
Implementation WRSL_MATMOV_BW of BADI WRSL_MATMOV_BW must be activatedexplicitly
see Customizing in ERP
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 34
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 regularlywithout a promotion assignment, the Quantity for local markdowns is not correct displayed in ERMA and CostStock Ledger.
1147052 - Overall manual stock adjustment wrong
Stock ledger adjustments as a result of synchronizing the stock ledger ending inventory with ending inventorycalculated by ERP, using the transformations from info cube 0RSL_C01 to the cube itself, do not contribute tothe 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
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 35
ERP Enhancements for Stock Ledger Analytics
The ERP enhancements for Stock ledger Analytics are technical in nature and notreadily visible to the user. They include:
Table USEG has been enhanced by two new flags which indicate whetherrevaluation has taken place because of a promotional markdown or manualadjustment (local markdown) or because of both reasons holding at the same time
Enhancements to revaluation and inventory management function modules (and astructure that feeds back a revaluation function module)
Enhancements to the extraction process from ERP to BW, includingNew fields in several table (e.g., USEG, MSEG, TMCA, WRF6, T001K, TWZLA,T134, MARV)New extraction structuresEnhancements of the data sources
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 36
DataSources
•0RT_DS03extracts the valid information concerning valuation and inventorymanagement for every valuation area and material group combination.
The system requires the valid retail revaluation profile for comparison withdata from POS DM in SAP NetWeaver BI.
0RT_VALAREA_ATTR
•0RT_DS02determines whether the structured article is to be split into its components forinventory management. This is carried out for every article type (sales set,prepack, or display) and site category (store or distribution centre) dependingon the additional optional parameters (purchasing organization, distributionchannel, site, and structured article). The system provides informationseparately for the goods receipt and purchase order processes and requiresthis information for comparison with data from POS DM in SAP NetWeaver BI
0RT_SPSTRUC_ATTR
extracts attributes of the retail revaluation profile
This determines in particular whether markdowns in promotions or at POSlead to stock revaluations centrally, or whether these markdowns are handledlocally at the POS. The system requires this information for comparison withdata from POS DM in SAP NetWeaver BI.
0RT_REVPROF_ATTR
•0RT_DS04extracts the value-only article to which you post the stock using the customernumber of the site and the merchandise category for value-based inventorymanagement. The system requires this information to balance POS DataManagement data in SAP NetWeaver BI.
0RT_MGR_VALART_ATTR
•0RT_DS05extracts article type attributes developed specifically for the retail sector,whereby the article type ID indicates whether you are trading an article ormerely using it as an empties article or packing material.
0RT_MATTYPE_ATTR
Data TargetDescriptionData Source Name
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 37
DataSources
Article Number for Stock Ledger
extracts additional merchandise-category hierarchy attributes for the articledata.
The system requires this information for stock ledger analytics evaluationsat the merchandise-category hierarchy level. When the DataSources aretransferred from BI Content, the system adds the fields of this appendDataSource to the 0ARTICLE_ATTR DataSource fields.
0RT_RSL_ARTICLE_AP
Article Movements from Inventory Management for Stock Ledger
extracts additional attributes for article movements and movement types ifstructured articles are split into their components for inventorymanagement. The system requires this information for comparison withdata from POS DM in SAP NetWeaver BI. When the DataSources aretransferred from BI Content, the system adds the fields of this appendDataSource to the 2LIS_03_BF DataSource fields.
0RT_RSL_03_BF_AP
Data TargetDescriptionAppend
•0RT_DS05extracts attributes of the article management record and displays the openposting period for article movements.
The system requires this information to balance the closing stock of reportStock Ledger Variance from ERP Inventory (0RSL_MP01_Q0020) with thestock posted in the ERP system.
0COMP_CODE_MAT_ATTR
Data TargetDescriptionData Source Name
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 38
Supply Chain Analytics/Stock ledger Analytics
BasicsBusiness Content
Analysis ScenariosBusiness Content InfocubesBusiness Content ReportingProcess Chains
Working with RMACustomizingImportant Notes
Retail Method of Accounting
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 39
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 lowunit cost with a large number of transactions.
Focus is to manage the category or department margin, not item margin ( manage onaggregate 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 arederived by applying a cost % to the retailvalues of inventory
The current value of inventory is unknown untilit is calculated at the end of the period(e.g., month).
A simple illustration of the RMA calculation isprovided here
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 40
Background
Most commonly used in fashion and general merchandise, but not uncommon in grocery andhard linesMost common in
AmericasAsia PacificJapanAustralia and New ZealandIndia
Generally not found in Europe (although some European retailers with global operations use itregionally)More common with older retailers, less so with newer ones
RMA is a philosophy or mindsetIt 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 systemsRMA is used today because of perceived advantages, tradition, merchant familiarity andswitching costs
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 41
Why retailers use RMA
MANAGEMENT REASONSSmoothes out margins over a season or period
e.g., high margins at begin of season/low margins at the end are evened outConsidered more “conservative”
e.g., markdowns reduce carrying value of inventory when booked and do not wait until the selling pricedrops below the carrying cost
Automatically carries out the lower of cost or market calculationEasier to allocate certain aggregate costs and vendor allowancesCost method can create negative margins
Happens if selling price drops below inventory carrying costsFor RMA, a blended category margin for an overall period usually hides this
Tends to be more tolerant of data input errorse.g., unit data errors may not have a material impact
BARRIERS TO CHANGELegacy systems limit the ability to changeTradition and ingrained behavior
RMA is a mindsetMerchants know the levers to pull to get the desired results
Switching costsPossible adverse profit or tax impact from switchInvolvement of auditorDisruptive process, re-training requirements
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 42
Overview: RMA Stock Ledger
The general requirement for a standard RMA solution can be broken down into four high levelrequirements:
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 ResultsThe RMA calculation formula shall be configurable so that a customer can define the RMA formula and itscalculation 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) andbe able to address custom requirements by adding a new goods movement or inventory transaction type to beincluded as part of the RMA calculation formula. The customer could then map the relevant goods move-ments or inventory transactions to that type or bucket. support of detailed and unique requirements
Standard RMA Stock Ledger ReportsA unified view to all relevant inventory activityCalculate key ratios
Post RMA Calculation ResultsEnd of period calculation of results and closing processPost 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 areperformed in BI.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 43
RMA Stock Ledger Flow
InventoryTransactions
(receipts, transfers,markdowns, etc.)
Cost $Retail $
Cost $
Accounting Document
Article Document
RMA Stock Ledger Stock Ledger Analytics
Compare RMA to CMA inventoryvalues and post adjustments tospecial inventory and COGS G/Laccounts.
ERP BI
POS Transactions(sales, returns, employee
discounts, etc.)
POS
General Ledger
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 44
RMA Components Overview
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 45
Supply Chain Analytics/Stock ledger Analytics
BasicsBusiness Content
Analysis ScenariosBusiness Content InfocubesBusiness Content ReportingProcess Chains
Working with RMACustomizingImportant Notes
Retail Method of Accounting
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 46
Supply Chain Analytics/Stock ledger Analytics
BasicsBusiness Content
Analysis ScenariosBusiness Content InfocubesBusiness Content ReportingProcess Chains
Working with RMACustomizingImportant Notes
Retail Method of Accounting
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 47
Analysis Scenario: RMA Stock ledger
The following DataStore objects form the basis for theRMA run/calculation:
0RSL_DS51
0RT_DS52
0RT_DS53
0RT_DS54
During the transfer the raw data is merged in RMAbuckets in the InfoSource 0RT_RMA_01.
The clustered data is stored by direct assignment inDataStore object 0RMA_DS01 and forms the basis forthe RMA calculation.
In addition the initial stock can be included using theInfoSource 2LIS_03_BX_TR and the DataStore0RMA_DS01.
The RMA engine calculates the RMA result (RMA Valueand RMA Inventory Value) from the RMA buckets basedon a calculation schema (RMA formula).
This data is stored via direct assignment in separateRMA result buckets in the DataStore object0RMA_DS01. This resulting data is used for postingback to FI. The data is made available in InfoProvider0RMA_C01 for reporting.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 48
Analysis Scenario: RMA Recasting
RMA Recasting reprocesses the RMA raw data based onthe current object hierarchy in order to correctly take intoaccount reclassifications during the course of a postingperiod and to enable analysis of the performance of RMAobjects in a historical comparison.
This data flow can be seen as a supplement to thedata flow of the analysis scenario RMA Stock Ledgerin cases where Recasting is in use.
The DataStore object 0RMA_DS10 forms the basis for theongoing correction of the initial inventory for each postingperiod in the DataStore object 0RMA_DS01 due toreclassifications.
The recasting of all remaining RMA buckets takes place atthe end of the posting period with the transformation fromthe DataSource 0RT_RMA_03.
The RMA results data of this posting period, that issubsequently recalculated through the transformation fromthe DataSource 0RT_RMA_02, is flagged with a specialversion relevant for Accounting that cannot be overwritten.
Past posting periods can also be covered by recasting. Inthis way, RMA results data under one reporting versioncan be overwritten several times by further recasting runsin subsequent posting periods.
The latest data in each case is updated in theInfoProviders 0RMA_C01 and 0RMA_C02.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 49
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 RMAfigures 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 someexceptions.
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 reportingpurposes, even after the data of those periods have been back-posted for FI, while those FI-relevant RMAfigures are still available for auditing purposes.These various requirements led to a concept of versioning of both RMA raw data and RMA result data, whichallows 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 thepast 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 thebeginning period and the ending period of a recasting period in comparison with the current period areconfigured.
All these settings together form the recasting periods.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 50
Supply Chain Analytics/Stock ledger Analytics
BasicsBusiness Content
Analysis ScenariosBusiness Content InfocubesBusiness Content ReportingProcess Chains
Working with RMACustomizingImportant Notes
Retail Method of Accounting
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 51
Objects of the RMA Stock Ledger
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
DataSources
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
InfoSources
RMA: 0RMA_DS01, 0RMA_DS02, 0RMA_C01, 0RMA_C02, 0RMA_MP01, 0RMA_DS10, 0RMA_DS11,0RMA_DS12, 0RMA_DS13, 0RMA_DS14, 0RMA_DS15DataTargets
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 52
Supply Chain Analytics/Stock ledger Analytics
BasicsBusiness Content
Analysis ScenariosBusiness Content InfocubesBusiness Content ReportingProcess Chains
Working with RMACustomizingImportant Notes
Retail Method of Accounting
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 53
Queries
Period ReportPeriods-to-Date ReportHistorical Comparison Report
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 54
RMA Stock Ledger–Period Report MerchandiseHierarchy (incl. VAT) (0RMA_MP01_Q0002)
This query provides theRMA results using themerchandise categoryhierarchy with VAT for aparticular period.
The report displays keyfigures, subtotals, andtotals for all relevantinventory relatedtransactions.
All the key figures, subtotals and totals can beseen in the chart. Thereport also displayscalculated key ratiosusing the key figuresand specified formulas.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 55
RMA Stock Ledger–Historical ComparisonReport AH (incl. VAT) 0RMA_MP01_Q0012
Historical comparison reports comparesthe RMA results for a particular FiscalYear/Period (which is called as CurrentYear Period or CYP as in the reports) withpervious Fiscal Year/Period (which iscalled as Last Year Same Period or LYSPas in the reports).
This report calculates RMA results usingArticle Hierarchy with VAT for FiscalYear/Period and compares the result withlast year same Fiscal period.
Report displays report displays key figures,subtotals, and totals for all relevantinventory related transactions. There isratio called Variance that s calculated fromCYP and LYSP.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 56
RMA Stock Ledger - Period-to-Date ArticleHierarchy (incl. VAT) 0RMA_MP01_Q0008
This report provides RMA results usingArticle hierarchy with VAT for Period toDate.The report displays key figures, subtotals,and totals for all relevant inventory relatedtransactions 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 totalscan be seen in the chart. The report alsodisplays calculated key ratios using the keyfigures and specified formulas.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 57
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 58
Supply Chain Analytics/Stock ledger Analytics
BasicsBusiness Content
Analysis ScenariosBusiness Content InfocubesBusiness Content ReportingProcess Chains
Working with RMACustomizingImportant Notes
Retail Method of Accounting
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 59
Process Chain 0RT_RETAIL_FOUNDATION
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 60
Process Chain RMA "Complete RMA ProcessChain"
Complete RMA Process Chain0RMA_DSO_DATA_LOAD_P01
handles the Trade Foundation Layer, composed ofthe 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 theRMA relevant data from DataStore object0RMA_DS01 and transfers it with the help of theDataSource 0RT_RMA_02 to the relevant PSA table.
Afterwards the following data transfer process takesplace: 0RT_RMA_02 / BI system -> 0RMA_DS01. Thedata is taken from the PSA and processed with thehelp of an expert routine in the relevanttransformation.
Behind the expert routine the RMA run is hidden.
The result of the RMA run is written back into theDataStore object 0RMA_DS01 .
A second process adopts the additional release of thenew RMA data in the RMA DateStore object0RMA_DS01.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 61
Process Chain RMA " RMA Recasting of InitialInventory "
RMA Recasting of Initial Inventory0RMA_DSO_RECAST_P01
RMA reclassification covers two blocks.
You can reclassify the initial inventory or theindividual goods movements yourself.
This process chain serves to automaticallyload all the master data relevant for theRMA reclassification and the subsequentreclassification of the initial inventory.
The relevant master data is stored inInfoObject 0MATERIAL, 0CM_SKU and theDSO 0RMA_DS10.
The reclassified initial inventory is stored in0RMA_DS10.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 62
Process Chain RMA " RMA Recasting of GoodsMovements "
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 DataSourceobject 0RMA_DS01.
An activation process ensures the release of the new RMA data in the RMA DataSource object0RMA_DS01.
RMA Recasting of GoodsMovements
0RMA_DSO_RECAST_P02
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 63
Supply Chain Analytics/Stock ledger Analytics
BasicsBusiness Content
Analysis ScenariosBusiness Content InfocubesBusiness Content ReportingProcess Chains
Working with RMACustomizingImportant Notes
Retail Method of Accounting
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 64
Supply Chain Analytics/Stock ledger Analytics
BasicsBusiness Content
Analysis ScenariosBusiness Content InfocubesBusiness Content ReportingProcess Chains
Working with RMACustomizingImportant Notes
Retail Method of Accounting
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 65
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 becorrespondingly initialized. The valuation according to RMA is carried out as follows:at the end of each posting period the inventory values according to RMA arerecalculated 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 alsorequire 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-relevanttransactions at the level required for RMA, that is, the RMA valuation object, you cancarry out the calculation according to RMA, and you can transfer the results toAccounting.
In the SAP BI reporting you can analyze the RMA inventories flexibly according todifferent criteria.
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 66
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 locationValuation 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 reportingEnd of period closing process / postings to the general ledger– Post, reverse, re-post end-of-period postings to the general ledgerMass maintenance toolsUse reference stores to simplify maintenance
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 67
RMA Administrator Workbench
Some of the functions that are mentioned on previousslide are performed within the RMA workbench. Thefunctions are as follows:
Maintain the RMA parameters for the stores
Mass maintenance RMA parameters for stores
Import the merchandise or article hierarchy into theRMA 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
Change Parameters
TA: WRMA_ADMIN
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 68
Supply Chain Analytics/Stock ledger Analytics
BasicsBusiness Content
Analysis ScenariosBusiness Content InfocubesBusiness Content ReportingProcess Chains
Working with RMACustomizingImportant Notes
Retail Method of Accounting
© SAP 2009 BW Retail Content Supply Chain Analytics / Page 69
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 pproductively are missing.
1139771 RMA: Reclassification and sales sets