SCM220+ +Demand+Planning

SCM220Demand PlanningmySAP Supply Chain Management

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Participant HandbookCourse Version: 2005/Q2Course Duration: 3 DaysMaterial Number: 50074609

An SAP course - use it to learn, reference it for work

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2005/Q2 © 2005 SAP AG. All rights reserved. iii

About This Handbook SCM220

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iv © 2005 SAP AG. All rights reserved. 2005/Q2

ContentsCourse Overview ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Course Goals .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiCourse Objectives ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii

Unit 1: Supply Chain Management: An Overview..... . . . . . . . . . . . . . 1Supply Chain Management with SAP SCM .... . . . . . . . . . . . . . . . . . . . . .2

Unit 2: Interactive Planning..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Navigation in the Interactive Planning Table ... . . . . . . . . . . . . . . . . . . . 27Analyzing Data in the Interactive Planning Table .. . . . . . . . . . . . . . . . 45Additional Features of the Interactive Planning Table.. . . . . . . . . . . 64Collaborative Planning (Optional). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Unit 3: Forecasting ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97Executing a Univariate Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99Determining the Best Forecast Method .. .. . . . . . . . . . . . . . . . . . . . . . . .121Causal Analysis - Multiple Linear Regression.. . . . . . . . . . . . . . . . . . .130Composite Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139Consensus Based Forecasting (Optional) . . . . . . . . . . . . . . . . . . . . . . . .147Forecast Alert Profile (Optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150

Unit 4: Lifecycle Planning... .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169Realignment .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .170Lifecycle Planning.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182

Unit 5: Promotion Planning..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197Promotional Planning... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198

Unit 6: Mass Processing ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223Mass Processing... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .224

Unit 7: The Internal Business Warehouse..... . . . . . . . . . . . . . . . . . . . . 261The Internal SAP SCM Business Warehouse.. . . . . . . . . . . . . . . . . . .262

Unit 8: Demand Planning Configuration..... . . . . . . . . . . . . . . . . . . . . . . 289Planning Object Structure.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .291Characteristic Value Combinations ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .301Planning Areas .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .310

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Contents SCM220

Product Interchangeability .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .333Proportional Factors .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .344Version Management and Release to SNP .... . . . . . . . . . . . . . . . . . .350

Unit 9: Planning Books and Data Views ...... . . . . . . . . . . . . . . . . . . . . . 357Creating Planning Books and Data views ... . . . . . . . . . . . . . . . . . . . . .358Macros... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .382

Unit 10: Demand Planning Summary..... . . . . . . . . . . . . . . . . . . . . . . . . . . 405Planning Summary... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .406

Appendix: Integrated campaign/promotion planning with SAPSCM & CRM ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429

Index ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433

vi © 2005 SAP AG. All rights reserved. 2005/Q2

Course OverviewThis course will help you configure Demand Planning in SAP SCM. You willalso learn to create planning books, macros, and demand plans using univariateforecasting, causal analysis, and composite forecasting. You will also usemarketing and sales tools, such as promotion planning, lifecycle planning, and�like� modeling. Finally, you will learn how to release demand plans to the SAPSCM liveCache for Supply Network Planning and Production Planning/DetailedScheduling.

Target AudienceThis course is intended for the following audiences:

� Project team members responsible for configuring Demand Planning andcreating demand plans

Course PrerequisitesRequired Knowledge

� Course: SCM200 Supply Chain Planning Overview

Recommended Knowledge

� BW310 Business Information Warehouse � Data Warehousing

Course GoalsThis course will prepare you to:

� Configure Demand Planning in SCM� Understand the concept of Demand Planning with SCM� Use the forecast tools� Execute Demand Planning� Use marketing and distribution tools� Release plans to the Production Planning

Course ObjectivesAfter completing this course, you will be able to:

� Configure Demand Planning in SCM� Create planning books and macros

2005/Q2 © 2005 SAP AG. All rights reserved. vii

Course Overview SCM220

� Create demand plans using univariate forecasting, causal analysis, andcomposite forecasting

� Use marketing and sales tools, such as promotion planning, lifecycleplanning, and "like" modeling

� Release demand plans to Supply Network Planning and Production Planning/ Fine Planning

SAP Software Component InformationThe information in this course pertains to the following SAP Software Componentsand releases:

viii © 2005 SAP AG. All rights reserved. 2005/Q2

Unit 1Supply Chain Management: An

Overview

Unit OverviewThe unit provides an overview of Demand Planning in SAP SCM. The focus ofthe unit is planning books, macros, and demand plans using univariate forecasting,causal analysis, and composite forecasting. The unit also describes how to usemarketing and sales tools, such as promotion planning, lifecycle planning, and�like� modeling. To conclude, the lesson describes how demand plans are releasedto Supply Network Planning and Production Planning / Fine Planning.

Unit ObjectivesAfter completing this unit, you will be able to:

� Get an overview of Supply Chain Planning with SAP SCM� Describe the process of SCM Demand Planning (DP)� Explain the concept of Demand Planning� Explain the functions of Demand Planning� Describe the techniques used for forecasting� Explain the result of Demand Planning

Unit ContentsLesson: Supply Chain Management with SAP SCM... . . . . . . . . . . . . . . . . . . . . . . .2

2005/Q2 © 2005 SAP AG. All rights reserved. 1

Unit 1: Supply Chain Management: An Overview SCM220

Lesson: Supply Chain Management with SAP SCM

Lesson OverviewThis lesson will help you understand the concept of Supply Chain Planning withSAP SCM. Next, you will learn about the process of SCM Demand Planning. Youwill also be able to understand the concept of Demand Planning, its functionsand further uses for demand plans. Finally, you will learn about the differenttechniques used for forecasting.

Lesson ObjectivesAfter completing this lesson, you will be able to:

� Get an overview of Supply Chain Planning with SAP SCM� Describe the process of SCM Demand Planning (DP)� Explain the concept of Demand Planning� Explain the functions of Demand Planning� Describe the techniques used for forecasting� Explain the result of Demand Planning

Business ExampleThe Precision Pump company consists of a number of independent business unitslocated in different parts of the world. Each unit is headed by a business unit headand operates as an independent entity under the common parent company. Thecompany wants to implement the Demand Planning component of SAP SCM toforecast the market demand for their finished products. As the planning manager,you need to ensure all the planning data from different data sources to SAP SCMis available to implement the demand plan. You also need to analyze the planningresult for various scenarios for planning optimization.

2 © 2005 SAP AG. All rights reserved. 2005/Q2

SCM220 Lesson: Supply Chain Management with SAP SCM

Overview of Supply Chain Planning

Figure 1: Supply Chain Planning at a Glance

The process of Supply Chain Planning can be divided into many steps, which areexecuted by various components in SAP ERP Central Component (SAP ECC)(previously SAP R/3) and/or SAP SCM. It is a good idea and it is practical tointegrate these two systems and use both of them together when planning. TheSCM Core Interface (CIF) is used for this system integration.

Demand Planning, where past sales figures can be used to derive a future programof production, can be executed both within Flexible Planning in SAP ECC usingStandard Sales and Operations Planning, or within Demand Planning in SAP SCM.

Planned independent requirements can be created from SAP ECC DemandManagement or SAP APO Demand Planning. You can also use Demand Planningmass processing to set the sales quantities from SCM Demand Planning as plannedindependent requirements in ECC Demand Management.

Sales orders are entered in the SAP ECC system. A global available-to-promisecheck (Global ATP) for a sales order can be made in SCM (integration withProduction Planning/Demand Scheduling is also possible).

Supply Network Planning in SAP SCM is used for cross-plant planning.

Material Requirements Planning can be executed in either ECC or SCM. Noticethat in ECC, Capacity Requirements Planning must be executed in a secondseparate step, as opposed to Production Planning and Detailed Scheduling ofSCM, where quantities and capacities can be planned simultaneously.



Production execution, which is the processing of manufacturing orders, such asproduction or process orders, takes place in ECC.

SCM Demand Planning

� Global server with a BW infrastructure� Exception handling is integrated and you can define your own alerts� Planning is based on a main memory� Flexible navigation in the planning table, variable drill-down� Wide range of forecasting techniques� Promotion planning and evaluation, like modeling� Enables collaborative planning over the Internet� Demand Planning BOMs

Benefits of Demand Planning in SAP SCM as opposed to Flexible Planning inSAP ECC:

� The BW infrastructure has user-friendly features to extract data fromexecution systems and run reports for this data in the SAP BW BusinessExplorer.

� Macros can be used to perform complex calculations and to defineconditions and exception messages called alerts. E-mail messages can besent automatically and the status can be queried.

� In the SOP scenario, the feasible production plan from Supply NetworkPlanning or Production Planning/Detailed Scheduling is compared with theoriginal demand plan. Deviations are identified automatically and reportedto the planner.

� Demand Planning provides the following statistical forecasting models:constant model, trend model, seasonal model, trend and seasonal model,Croston method with exponential smoothing, linear regression, and causalmodels with multiple linear regression (MLR). External forecastingprocedures can also be used here.

� Like modeling signifies the forecasting of new products using the historicalsales data for old products. You can also define product lifecycles as a partof like modeling.

� You can make each planning book accessible to customers or suppliers overthe Internet to exchange data quickly and easily.

� In Demand Planning, it is possible to determine the demand for thecomponents of a BOM. You can, for example, deduce the future demandfor active ingredients in the pharmaceutical industry, or product demandfor displays in retail.



Figure 2: Overview of SAP SCM Demand Planning

Historical data can be extracted from ECC systems and imported from BW, Excel,and legacy systems.

Demand Planning takes the past sales data, such as invoiced sales quantities orsales revenue, and uses forecasts to update it for the future. To do this, it can usestatistical forecasting techniques, such as the constant, trend, and seasonal modelswith exponential smoothing or linear regression.

The demand plan is created as a result of the forecast. The demand plan can bereleased to generate product requirements (planned independent requirements) atspecific locations for specific time periods in ECC or SCM. The requirementsthat are determined can then be fulfilled by externally procuring or producingthe product.



Figure 3: The Demand Planning Lever Effect

Small changes made during Demand Planning cause large changes to be madeduring Production Planning. As a result, the goal of Demand Planning is to createsales quantity forecasts that are as accurate as possible.

Figure 4: Factors that Influence Demand Planning



The complexity and competitive nature of today's business environment requiresorganizations to consider many variables when developing a sales and operationsplan:

� Multiple sources of demand plan data. For example, the manufacturer'sforecast is based on a distributor's past sales and point of sales directly fromthe retailer.

� Factors influencing demand. For example, the size of the sales force, R&Dexpenditures, advertising expenditures, price, promotions, and seasonality.

� Demand plan data can be exchanged with sales organizations, customers,and suppliers over the Internet (Collaborative Demand Planning).

� Collaborative planning involves comparing your own forecast results withthe ones of your customers. Composite forecasting involves combiningseveral forecasting techniques to provide the forecast results.

The other factors that are important for Demand Planning are: Managing all themain factors that influence demand, managing product lifecycles, CollaborativePlanning, competitors, and buying habits.

Concept of Demand Planning

Figure 5: Demand Planning Concept

In SCM Demand Planning, you can choose to plan on any planning level anddefine any hierarchies you require. You can plan at both an aggregated level and adetailed level. The automatic aggregation and disaggregation function means thatyour data is always consistent at all levels of detail.

Usually, the operational ECC system provides the past sales data on which youbase your forecasts. A special extraction structure is used to transfer the historicaldata, such as invoiced sales quantity, incoming order quantity, and sales revenue,



from ECC to BW. In BW, the data is stored in InfoCubes from where it is readby the SCM planning area. The actual planning then takes place in SCM. Theplanning results are stored in liveCache in key figures that are specifically createdin the planning area.

The forecasts can be enhanced through causal analyses, Collaborative Planning,and forecasts from other sources. You use causal analysis to model connectionsbetween several variables and historical data, and then update this for the future.

Marketing intelligence and management adjustments can be added using forecastoverrides and promotions.

Figure 6: SCM Application Architecture

Aggregated actual data can be transferred to SCM from OLTP, BW, Excel, andlegacy systems, and stored in InfoCubes. This data is the basis for forecasting.The demand plan is created as a result of the forecast.

You release the demand plan to Production Planning, which creates plannedindependent requirements for Supply Network Planning and ProductionPlanning/Detailed Scheduling. You can also transfer the demand plan to theoperating system (OLTP) as planned independent requirements.

The seamless integration with Supply Network Planning and ProductionPlanning/Detailed Scheduling supports efficient Sales and Operations Planning.



Figure 7: Data in SCM

As it relates to Master Data there will potentially be three types of master data:

� Master data for supply planning in SNP or PP/DS such as BOMs, routing,material masters and resources necessary for creating supply plans. This datais transferred to SAP SCM by the CIF interface.

� BW master data: required data related to characteristics such as sold-toparty, sales organization, divisions and so on, for example texts, attributesand hierarchies. This data is extracted by programs in BW and appears intables within the BW system in SAP SCM.

� Demand Planning master data: Master data specifically for DemandPlanning, called characteristic value combinations. This data is created inSAP SCM Demand Planning and stored in the Planning Object Structure.



There are four different types of movement data:

� OLTP orders: current planning data from your ECC system such as salesorders, stock, production/purchase orders. This data uses the CIF interface topopulate SAP SCM.

� BW: historical aggregated transactional data on sales orders,production/purchasing orders for forecasting or analysis. This data isextracted by programs in BW and appears in InfoCubes within the BWsystem in SAP SCM.

� SCM orders: planning results from SNP, PP/DS, DEPL and TP/VS. Thisdata can be transferred to the performing OLTP systems by the CIF interface.

� SCM time series: planning results from SAP SCM Demand Planning.These are saved in liveCache planning areas and can be released to SAPSCM or OLTP systems as planned independent requirements. Orders andtime series can also be periodically stored in InfoCubes in SAP SCM.

Figure 8: Integration Between SCM and the Business Information Warehouse

SAP's SAP BW is contained within and completely integrated with the standardSAP SCM delivered system.

Notice that if you intend to execute extensive reporting, it is a good idea toimplement an independent BW server, and only transfer planning-relevant datato SCM.

Since the data structures in BW and SCM are identical, you can also use the BWfront end to run reports for SCM data.



Planning Components

Figure 9: Data Structure: InfoCubes

An InfoCube consists of a number of relational tables that are arranged accordingto the star schemata, which is a large fact table in the center, surrounded by severaldimension tables. Notice that the dimension tables are independent of one another.The fact table connects the dimensions with the key figures.

InfoCubes are used as central storage media for movement data in BW, inDemand Planning and in SNP. They consist of key figures, attributes, and timecharacteristics.

A key figure saves movement data in the InfoCube's fact table as a quantity orvalue. For example, a key figure can be a projected sales value in dollars or aprojected sales quantity in pallets.

Characteristics are the objects by which you aggregate, disaggregate, and evaluatebusiness data.

Time characteristics define the periods over which you display, plan, and storedata.

The multidimensional nature of InfoCubes allows for powerful data analysiscapabilities using the selection, drill-up, and drill-down functions.



Figure 10: What is a Planning Area?

A planning area is the central data structure for saving planning data for demandplanning and supply network planning. Characteristics and key figures andtheir functions for planning are determined here. It groups together the centralparameters that define the scope of the planning activities. It also determineswhether planning results are to be saved as orders or time series.

PP/DS and SNP plan primarily with orders saved in the SCM model version.Demand Planning plans only with time series saved in the version of the planningarea. As a result, orders with various planning areas can be displayed and planned,whereas time series are always available in the planning area version. Theplanning area has to be initialized for planning and for the plan version.

In Demand Planning, key figure data can be read from InfoCubes or time seriesobjects.

Key figure planning data is stored in the time series objects in liveCache.



Figure 11: The Planning Table

The SCM Demand Planning and Supply Network Planning modules have auniform user interface, the planning table. This table has two main components,the selection area and the work area.

The selection area consists of four windows. Objects that can be planned aredisplayed in the top window, and can be selected by the Shuffler and saved asselections. To open the shuffler, you click the Selection Window icon.

The second window (selection profile) stores each planner's most frequently usedselections: double-clicking opens them.

The third window provides access to the work area's various layouts. You candefine filters for the available planning books and planning views.

Macros can be interactively executed from the fourth window and providecalculations in the work area.



Figure 12: Planning and Reporting

Consistent planning is used to keep planning data consistent at all planning levels.Data is aggregated and disaggregated automatically. This allows you to analyzeand change demand plans using any criteria. Consistent planning throughout theentire enterprise allows detailed plans to be automatically consolidated.

Top-down planning: An aggregated plan is automatically distributed to variousdetail levels (for example, product, customers or sales areas) according to flexiblerules.

Middle-out planning: Planning data is distributed to middle levels (for exampleproduct group levels) and to detail levels and can be aggregated to the overall plan.

Bottom-up planning: Detailed data from individual employees is automaticallyaggregated to the overall plan.

Consistent planning can be used to simulate several different planning scenarios invarious versions.

The system automatically generates alerts from forecast errors. Macros canmonitor forecast accuracy, which can be used in SNP to plan safety stocks.



Forecasting Techniques

� Moving average� Constant models, trend models, seasonal models� Exponential smoothing� Seasonal linear regression� The Holt-Winter's method� Croston's method (for sporadic demand)� Causal analysis - MLR� Composite forecasting - Weighted average of multiple models

The product spectrum of a company includes a variety of products in differentstages of their lifecycle with different demand types.

SCM Demand Planning offers a toolbox of proven forecasting methods fromwhich you can choose the most suitable method for a specific demand type.

Composite forecasting goes beyond the idea of pick-the-best and combines twoor more methods.

The Croston method allows you to forecast sporadic demand.

The statistical forecasting toolbox provides all the features you require to createaccurate forecasts, including everything from data analysis using the time seriesmodels through MLR.

Figure 13: Lifecycle Management and Like Modeling

You use lifecycle planning and like modeling to forecast the launch (phase-in) anddiscontinuation (phase-out) of a product.



A product's lifecycle consists of different phases: Launch (phase-in), growth,maturity, and discontinuation (phase-out). You use this process to model thelaunch, growth, and discontinuation phases.

For all characteristic value combinations, you can use a like profile, or a phase-inprofile, or a phase-out profile, or any combination of these.

If the time period of the phase-out profile falls within the history horizon of themaster forecast profile, the system adjusts the history input values, displays theadjusted values in the original history and corrected history key figures, and writesthe adjusted values to the corrected history.

If the time period of the phase-in profile falls within the future horizon specified inthe master forecast profile, the system adjusts the baseline (original) forecasts, andwrites the adjusted values to the corrected forecast key figure.

Figure 14: Promotion Planning

Promotions can have a major impact on consumer behavior.

In SCM Demand Planning, you can plan promotions or other special eventsindependent of your actual forecast.

You can use Promotion Planning to model either one-time events, such asthe millennium, or repeated events, such as quarterly advertising campaigns.Additional examples of promotions include trade fairs, coupons, free-standinginserts, competitors' activities, and market intelligence. Events that impactconsumer behavior include upward or downward economic trends and acts ofnature.



Promotional uplifts can be modeled using common promotion patterns basedon absolute or percentage values. The effect of a past promotion can either bedetermined automatically from the demand history or be estimated by the planner.A promotion pattern can be archived in a promotion catalog, which means it canbe reused if a promotion of the same type is repeated. A Copy function in thepromotion catalog also supports like modeling of like products, and like regions.Several techniques are available to estimate the impact of a past promotion such asMLR with or without trend or seasonality.

Result of Demand Planning

Figure 15: Releasing the Demand Plan as Planned IndependentRequirements

Once the various stakeholders in the forecast have reached an agreement, yourelease the demand plan as planned independent requirements.

This release causes planned independent requirements to be created in the orderliveCache. The demands that are not order-based form the basis of SupplyNetwork Planning or Production Planning/ Detailed Scheduling during whichBOMs are exploded, capacities are planned, and sourcing is carried out for theentire supply network.

After the planned sales quantities are checked for feasibility in Supply NetworkPlanning or Production Planning/ Detailed Scheduling, the results can betransferred back to Demand Planning. Macros are then used to analyze thedifferences between the demand plan and feasible quantities. Alerts are generatedif these differences are too large.



Figure 16: Reporting in SCM

You can also use the BW front end to run reports for SCM data.

In addition to running reports for the aggregated actual data from InfoCubes,reports are run for all the order and time series objects fromliveCache.

You need the following elements to be able to run live reports for orders and timeseries: a planning area in SCM, an extraction structure for the planning area, anInfoSource, and an SAP RemoteCube that provides an interface with the internalBW reporting functions.

You can use the BW Business Explorer to run reports for:

� Order data from liveCache� Aggregated data in InfoCubes� Aggregated data in liveCache time series



Figure 17: How the Alert Monitor Is Integrated

Exception messages in SCM are normally called alerts.

In Demand Planning and in SNP, you can use macros to define your own alerts.

The detected exceptions are collected automatically in the alert repository andreported in the alert monitor.

The alert monitor profile is a form of filter to view specific sets of alerts fordifferent planners.



Lesson Summary

You should now be able to:� Get an overview of Supply Chain Planning with SAP SCM� Describe the process of SCM Demand Planning (DP)� Explain the concept of Demand Planning� Explain the functions of Demand Planning� Describe the techniques used for forecasting� Explain the result of Demand Planning


SCM220 Unit Summary

Unit SummaryYou should now be able to:� Get an overview of Supply Chain Planning with SAP SCM� Describe the process of SCM Demand Planning (DP)� Explain the concept of Demand Planning� Explain the functions of Demand Planning� Describe the techniques used for forecasting� Explain the result of Demand Planning


Unit Summary SCM220


SCM220 Test Your Knowledge

Test Your Knowledge

1. SCM can be divided into many steps, all of which can be executed in SAPSCM.Determine whether this statement is true or false.□ True□ False

2. Demand Planning enables collaborative planning over the internet.Determine whether this statement is true or false.□ True□ False

3. What is Collaborative Planning?

4. The SCM Demand Planning and SNP modules have a uniform user interface,the .Fill in the blanks to complete the sentence.

5. What are the elements that are necessary to run live reports for order andtime series?

6. The Croston method allows you to model .Fill in the blanks to complete the sentence.


Test Your Knowledge SCM220

Answers

1. SCM can be divided into many steps, all of which can be executed in SAPSCM.

Answer: False

Some steps can be executed by components in SAP ECC.

2. Demand Planning enables collaborative planning over the internet.

Answer: True

You can make each planning book accessible to customers or suppliers overthe Internet to exchange data quickly and easily.

3. What is Collaborative Planning?

Answer: Collaborative planning involves comparing your own forecastresults with those of your customers.

4. The SCM Demand Planning and SNP modules have a uniform user interface,the Planning Table.

Answer: Planning Table

5. What are the elements that are necessary to run live reports for order andtime series?

Answer: A planning area in SCM, an extraction structure for the planningarea, an InfoSource, and the SAP Remote Cube

6. The Croston method allows you to model sporadic demand.

Answer: sporadic demand


Unit 2Interactive Planning

Unit OverviewIn this unit you will create selection ID�s that can be assigned to users and learn tonavigate within the planning table. You will learn to maintain planning data atdifferent levels and list the different disaggregation options. You will be able todescribe how proportional factors are used and how they affect the final forecast.


� Use the shuffler and the selection area to display data of selected objects� Create, save, and assign Selection ID's to User Logon ID's.� Use the work area for planning� Analyze data using aggregation and disaggregation methods� Navigate in the work area� Change proportional factors interactively� Use the basic planning table functions� Enter notes to document your planning data� Fix values of key figures in interactive planning� Copy between the interactive planning table and Microsoft Excel� Export your planning book data to Microsoft Excel at the detail, aggregate,

and pivotal table levels.� Explain and use different options for reporting on your planning data.� Use collaborative planning to enter forecast quantities using the internet.

Unit ContentsLesson: Navigation in the Interactive Planning Table .. . . . . . . . . . . . . . . . . . . . . . 27

Exercise 1: Working with the Interactive Planning Table .. . . . . . . . . . . . . . 39Lesson: Analyzing Data in the Interactive Planning Table.. . . . . . . . . . . . . . . . . 45

Exercise 2: Analyzing Data in the Interactive Planning Table .. . . . . . . . 55Lesson: Additional Features of the Interactive Planning Table .. . . . . . . . . . . 64

Exercise 3: Working with Key Figure Values .. . . . . . . . . . . . . . . . . . . . . . . . . . . 73


Unit 2: Interactive Planning SCM220

Exercise 4: Integration with Microsoft Excel (Optional) .. . . . . . . . . . . . . . . 77Exercise 5: Reporting in Demand Planning... . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Lesson: Collaborative Planning (Optional) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84Exercise 6: Collaborative Planning.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89


SCM220 Lesson: Navigation in the Interactive Planning Table

Lesson: Navigation in the Interactive Planning Table

Lesson OverviewIn this lesson, you will learn to navigate in the interactive planning table, enterand analyze data. You will learn about the basic functions of the interactiveplanning tablet.


� Use the shuffler and the selection area to display data of selected objects� Create, save, and assign Selection ID's to User Logon ID's.� Use the work area for planning

Business ExampleThe Precision Pump company will use Demand Planning in SAP SCM to forecastits finished products. While a majority of the demand planning process willbe performed by background jobs, planners will be responsible for performinginteractive planning on a periodical basis. It is important that all planners are ableto navigate in the interactive planning table and enter and analyze data.

Navigation in the Interactive Planning TableIndividuals who take part in the demand planning process will need a tool toanalyze, create, and change the demand plan as directed by the informationsurrounding the process. Through the use of planning books and data views,users will be able interact with SAP SCM to provide feedback and direction forthe final demand that will be sent to the operations group for supply analysis.

A planning book can only be attached to one planning area. A planning area iswhere the data is stored in liveCache (database) in a user defined structure ortable. A planning area can have one or more planning books. Consider that eachbook might represent a particular role in your demand planning process. If youhave a demand planner, sales representative, marketing, regional sales manager,vice president of sales and major customers, all involved in the demand planningprocess, you might consider having six different planning books. Each role mightrequire different information, or the information displayed in a particular format.In addition certain roles may not be allowed access to certain functionality. Forexample, if promotions are designed and created by marketing, you don't wanta demand planner to have access to the promotions. The would need to see theresults, but not to have access to change the actual numbers. Likewise, you wouldnot want some one in a sales role to execute and mange the statistical forecastingprocess, unless it was their responsibility.



Each planning book, can have and unlimited number of data views. Consider eachthat data view represents a task that person (role) must complete. For example, ademand planner will need to see all the historical data relevant for the statisticalmodel, however they are also responsible for making a final check or adjustmentto the demand plan before it is sent to operations. Therefore they would needto see two sets of data.

A planning book is made up of the following Elements:

� User defined data view(s) (Custom)� Univariant forecast view (SAP Standard)� MLR forecast view (SAP Standard)� Composite Forecast view (SAP Standard)� Promotional Planning view (SAP Standard)� Macros� Selection Id's

Note: Through configuration, a company will decided which view arerelevant for each book (role).

The user or company defined views will decide what data is relevant for particulartasks.

When defining the custom data view, you have the choice of creating one or twotables. Tables are made up of key figures (transactional data) that is necessary toperform a specific task.

To access planning books and data views follow the menu path: AdvancedPlanning and Optimization→ Demand Planning→ Planning→ InteractiveDemand planning . Upon entering this transaction will you be placed in apredetermined planning book. There is a table in configuration which houses adefault or last used planning book/data view information.

Note: Data views are often referred to as interactive planning tables.



Figure 18: Navigation In The Shuffler

The interactive planning table is divided into 2 sections separated into the left sideof the screen and the right side. The left side of the screen is called the selectorand the right side is the work space/area. The selector is divided into four areas:

� Selection Window� Selection Profile� Planning books� Macros

The selection window is where you select the Info Objects you want to plan.Examples of info objects in Demand Planning might be specific products, brands,sales organizations, customers. You choose objects that meet certain conditionsfrom the drop-down boxes in the Shuffler (Object Selection dialog box) � (show...that meet the following conditions...). The shuffler is the window in which youselect the info objects you want to plan. For example, you might want to showall products in version 000 that belong to product hierarchy 0110 (pumps). Thefirst row in the dialog box labeled show indicate what you would like to see a listof. The rest of the rows act as a filter to only show those objects that meet theconditions you defined.

The selection profile section, shows the selection Ids that have been assignedto the current planner. Selection Ids are preset field selections (variants), thata person uses all the time. The demand planner can use this selection profileto quickly access their frequently used selections. To add selection Ids to theselection profile, select Selection profile.

The Planning book section is where you select your planning books and dataviews in the area. If the planner can view all the available planning books, itis easy to access the planning books used for both Supply Network Planning



and Demand Planning. Planners have the opportunity to filter which view are

accessible. In addition to choosing Period Structure Settings, users can load adifferent time profile into their data view.

Note: When loading a different time profile into your data view, it allonly apply to Future time periods.

TheMacro area shows macros that are active in this planning book and for thisdata view. Directly executable macros can be executed from this window bysimply double selecting on them. A list of macros that are automatically beingexecuted in the background is also shown.

Selection ID'sWhen using the interactive planning table, the most important functionality tounderstand is how the data is selected by the users. If data is not selected properly,this can result in record locking and the data will only be available in display mode.

Figure 19: Selection ID's

The selector is your primary tool for locating, sorting and organizing information.The shuffler is the window in which you select the Info Objects you want toplan. You find the selector on the left of the screen. To show/hide the selector,click the Switch Selector On/Off icon in the application tool bar. You selectthe characteristics that meet certain conditions from the drop-down boxes inthe Object Selection dialog box (show... that meet the following conditions...).Examples might be specific products, brands, sales organizations, customers.



You can use the standard multiple object selection function to select several valuesof a characteristic. The lowest line is the most detailed level. This means thatonly those characteristic values can be selected for which the previous selectioncriteria are valid. In the shuffler, you can save selections that you intend to use

frequently and load existing selections. To open the shuffler, click in theinfo objects tool bar.

Note: In interactive planning, the Business Add In'/SAPAPO/SDP_SELECTOR' can be used to enhance standardShuffler functions. This note describes the possibility of settingdefault values for characteristics in the Shuffler selection screen. Note432806 contains a sample implementation. You may refer to the BAdIdocumentation and Note 399508 for more details.

Navigation in the Work Area of the Interactive PlanningTableOnce a user has select the appropriate data view, they must understand howto navigate the data view. With the exception of the key figures that are to bedisplayed, that navigation is the same for each user/company defined data view.

Figure 20: The Planning Table Work Area

The work space/area is the main display and interactive planning area. It issituated on the right side of the screen and consists of a table and a graphic. Whenyour company configures the planning book, they have the choice displaying thetable, the graph, or both. In addition if you specify both the table and the graphyou can decide if you want them side by side or above and below.



To display the data of the selected objects in the work area, double-select theobject. If you have selected more than one object, select Load data. As of release3.0 planning books/data views for DP planning areas are started by default inthe change mode while planning books/data views for SNP planning areas arestarted by default in the display mode. Using the status icons (display/change) orthe corresponding menu, you can choose between the display and change mode.Bear in mind the following:

� No locks are set in the display mode� You can only switch to the change mode if objects were previously selected

and the related data already loaded� When switching to change mode, the data must be read again since they

were not locked previously and could therefore have been changed in themeantime by another user

� When switching to display mode, the data must be checked (and thereforeread again) since the user could have previously carried out data changesin change mode. If data were already changed, a query appears, askingwhether you want to save the data

� When switching between display and change mode (and vice versa),drill-down and show-related operations previously executed may be ignored.The data are always aggregated (that is, without drill-down) when loaded

� When switching between display and change mode (and vice versa),drill-down and show-related operations previously executed may be ignored.The data are always aggregated (that is, without drill-down) when loaded

� The display/change mode of a planning book can be influenced with the BAdI'/SAPAPO/SDP_INTERACT' (Method 'DVIEW_DISPLAY_MODE_SET').This allows you to override the default logic and to either start planningbooks in change or display mode or convert them to simple display books.For details, refer to the sample implementation.

� The display/change mode can be altered for specific users with the userparameter '/SAPAPO/SDP94_D_MODE'

� '''I''' (Initial) - Transaction code /SAPAPO/SDP94 started in displaymode, switch to change mode possible

� 'A' (Always) - Transaction code /SAPAPO/SDP94 started in displaymode, switch to change mode not possible

� '''C''' (Change)- Transaction code /SAPAPO/SDP94 started in changemode (if the planning book/data view permits the change mode)

You use the Key Figure Selection icon to choose which planning view keyfigures are to be displayed in the work area.

Note: As of Release 4.0, the option is now available to select more thanone key figure at time by choosing Multiple Key Figures under the KeyFigure Selection



If the system is connected to a mail server, you have the option of sending plansinternally or externally by E-mail messages. The system automatically creates aMicrosoft Excel attachment that contains the plan.

Basic Functions of the Interactive Planning Table

Figure 21: Basic Functions of the Planning Table



If you right-click the cell at the top left of the planning table , youcan perform the following functions:

� Navigation bar � Use enhanced scroll functions that scroll by severallines/once at once, thus improving performance.

� Switch columns with rows � move from time being horizontal to vertical.� Synchronize table/graphic � Display the same periods in the table and the

graphic. When you scroll in the table the graphic moves correspondingly.You must have enabled the navigation bar to use this function.

� Change units of measurement � display a key figure in a unit other thanthe unit set for the planning area in Customizing, or hide/display the unitcolumn in the table.

� Pivot sorting � This function is available after you have drilled down at leastonce using the header. You can change the order in which the characteristicvalues and key figures are displayed in the grid. When you drill down, thekey figures remain on the left and the characteristic values are displayed tothe right in the order of the drill-down. With the pivot sort you can changethis order without changing the drill-down order. When you call up pivotsorting from the context menu a dialog box appears in which the order of theobjects is displayed. If the grid has not been sorted, the top object is the keyfigures, followed by the first drilldown characteristic, etc.. Change the orderusing Drag&Drop. When you have finished, choose to transfer these settingsto the grid. The sort is only valid for the current drill-down.

In interactive planning, promotion planning, and forecasting you can usedistribution functions in order to enter data in multiple cells quickly and easily.The function distributes values over a selected period. In the function you enter avalue which is the basis for the distribution. How this value is entered in thecells depends on the operator you assign to the value in the Operator field. Ingeneral these operators are self-explanatory. For details of which operators areavailable use the F4 help

You define distribution patterns in Customizing or under Demand Planning→Environment Current Setting→Maintain Distribution Patterns. Alternatively youcan edit distribution patterns from the function in the application. In this case youalso see the periods in the planning table to which the value are to be saved.

When load data into the planning tables, the records immediately become locksince you are automatically in �change � mode. Therefore, the selected datais locked. The other planners can use only the other characteristic values and



versions from the same InfoCube at this time. A lock is possible if nothing hasbeen locked yet or the selection made is different from the existing locks for atleast one characteristic.

Note: The lock is maintained until the update (in update task =asynchronous) has finished. For performance reasons, the characteristiccombinations that can be scheduled are not looked up for a lock attempt.If the locking procedure was not successful, the 'SAVE' � button isdeactivated. Behind the 'lock' � icon you can find a list of current locksfor the InfoCube currently being planned (extract from SM12)

You can insert a column for the row totals in Interactive Planning or in theplanning Book. You can display the sum of a row's values in the table. Users havethe following options:

� For a selected section of the planning horizon� For all future and historical periods� For all future and historical periods� For all future and historical periods� To hide row totals

Use the menu path Settings→ Row totals→ ..... from within the planning bookto access the row totals functionality

Note: With BADi /SAPAPO/SDP_INTERACT - Interactive Planning,you can perform the following functions:

� You use method FCODES_EXCLUDE to gray out standardfunctions that you no longer want your user to be able to choose.

� You use method USER_FCODES_CALCULATIONS to implementyour own functions that neither macros nor user exits are able tocover. Under FCODES, you must first release a function code (byentering a description). This released function code (for example,+CUS01) is then displayed automatically in the menu, which then,when selected executes the method.

� You use method PIVOT_ORDER_SET to automatically set thecolumn sequence after a drill down or 'display dependent objects'.

� You use method TEXT_CHOOSE to choose between using a shorttext, a medium text, or a long text.

LockingBefore a user can change data in the system, this data is locked so that other userscannot change it at the same time. Without locking, changes could lead to datainconsistencies. As a result it is only possible to change data that is not alreadylocked. If the system cannot set a lock for a selection, it automatically opens



the selection in display mode. In Demand Planning locking is used in planningtransactions such as interactive planning and background planning. Editing masterdata and the administration of planning areas are not affected.

If the entries in a selection imply unique values for other characteristics, thesecharacteristic values are included in the selection. This means that another usercan create a new characteristic value combination for the characteristic value ofthe original selection and enter data. For example, product A is only available inlocation 0001. If you enter product A in a selection, location 0001 is automaticallyadded to the selection. A second user could then create a characteristic valuecombination for product A in location 0002 and enter data.

Locking can ocurr at two levels, aggregate and detialed. In aggregate locking,data is locked at selection level. Due to reasons of performance, the systemdoes not consider each ambiguous characteristic value to be a wildcard. Thus,if you select two products, all products will be locked. This logic enhancesperformance especially in background processing, requires detailed selections forinteractive planning, for example, by navigation attributes. The following itemsare considered wildcards for locking purposes:

� Value ranges, for example, products 1 to 1010. (Ranges also include entriesthat use <, >)

� Multiple values, for example locations DERBY, PHILADELPHIA, andSINGAPORE

� Exclusive selections, for example, not customer SMITH

A second selection can be locked, if for at least one characteristic in the twoselections there are single values that are not identical.

Alternatively you can use a less restrictive logic with detailed locking. The systemcreates an entry (line) in the lock table for each unambiguous characteristic value.Wildcards are not used. In the case of large selections (more than 100 entries) thiscan cause problems (the lock table can overflow.). If you uses ranges or exclusiveselection conditions in the shuffler the system behaves as follows:

� If the characteristic involved is the one whose values are to be planned,the system overrides the selection condition by making individual entriesin the lock table

� If the characteristic has been only implicitly planned, the lock table doesnot override selection for ambiguous characteristics. This means that thesecharacteristics are not locked, thus, under certain conditions too little islocked.



This means that in comparison to the above examples individual entries arecreated for multiple values, for example locations DERBY, PHILADELPHIA,and SINGAPORE

Note: If you want to use the alternative logic, set the detailed lockindicator for the corresponding planning area. SAP recommends that youuse as detailed a selection as possible. This reduces the amount of datathat is locked. You should try to avoid ranges and multiple selections.One method of doing this is to use navigational attributes for selectionpurposes. See also Notes 379292 and 574716

Up to SCM 4.0, locks were put on planning object levels, thus locking all keyfigures in a selection. Since SCM 4.1, it has been possible in detailed lock to seta key figure-specific lock in the planning area. This enables two planners withthe same selection but different key figures to plan. In SCM 5.0, the lockinglogic will be shifted to the liveCache.





Exercise 1: Working with the InteractivePlanning Table

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create, save, and assign Selection ID's to your logon ID� Select and display data of selected objects� Navigate within the planning table� Use the basic planning functions

Business ExampleAfter configuring the planning table layout in the planning book, the demandplanner of the Precision Petrol Pump company needs to implement InteractivePlanning to enter and analyze data.

Task 1: Selection ID's in Demand PlanningAs part of your demand planning process, you will be required to review thesame data on an ongoing basis. In order to speed up your navigation, data entry,and forecasting, you need to establish pre-defined data selections. Create twoselection Ids and assign them to the necessary data view to support your demandplanning process.

1. Selections enable easy access to characteristic combinations that are requiredon a daily basis. For this reason, in your DPBOOK## planning book in theDEMAND PLAN data view in Interactive Planning, create a selection calledPRODUCT## for the version 000, and enter the products, P-102 to P-104.Assign the selection, PRODUCT##, to your selection profile. Load the datafor the product, P-102. Is actual data displayed in the past?

2. In your DPCOLL## planning book and in the DPCOLL## data view, createa selection called COLL## for the version 000 product P-102, and Customer0000001032 and assign this to your logon ID.

Continued on next page



Task 2: Interactive Demand PlanningAs part of your company's demand planning process, you will normally berequired to analyze the forecast data created by mass processing jobs and make thenecessary adjustments to arrive at a more exact demand plan. In this task, however,you will first create interactive sales quantities and then analyze the results.

1. Select the DEMAND PLAN data view and load the data for product P-102.In the planning table's FORECAST key figure, use the distribution operatorto plan 1000 pieces for the next 5 months and save.



Solution 1: Working with the InteractivePlanning TableTask 1: Selection ID's in Demand PlanningAs part of your demand planning process, you will be required to review thesame data on an ongoing basis. In order to speed up your navigation, data entry,and forecasting, you need to establish pre-defined data selections. Create twoselection Ids and assign them to the necessary data view to support your demandplanning process.

1. Selections enable easy access to characteristic combinations that are requiredon a daily basis. For this reason, in your DPBOOK## planning book in theDEMAND PLAN data view in Interactive Planning, create a selection called




PRODUCT## for the version 000, and enter the products, P-102 to P-104.Assign the selection, PRODUCT##, to your selection profile. Load the datafor the product, P-102. Is actual data displayed in the past?

a) Advanced Planning and Optimization→ Demand Planning→Planning→ Interactive Demand Planning.

b) In the selection area, select the triangle next to your DPBOOK##planning book to expand the view, then double-click on the DEMANDPLAN view.

c) Select the Selection window icon and in Show, select APO Product.

d) In the lower section, you can now store conditions for the products. Theversion 000 will default since it is the only active version that exists.

e) In the next row, select APO Product, and on the right side click theMultiple Selection icon . Select on the Range tab to enter the product

range P-102 to P-104 and when finished select the copy icon .

f) Select Save and enter PRODUCT## as the Selection description.

Select Save and then Adopt.

g) To enable easy access to this selection, assign the selection to your User

ID by selecting Selection profile header bar. Adialog window will open up. Drag your selection from the right side of

the window to the book on the left side. Select Save and Adopt.

h) To load the data, first double-select the selection PRODUCT##,and then the product P-102. The Previous Year's Sales data shouldimmediately be visible in the table. Scroll to past dates in the tableto check if the historical data from the InfoCube is displayed in theACTUAL SALES qty key figure. The actual data should now bedisplayed. It was loaded from the InfoCube version 000 when youloaded the data.




2. In your DPCOLL## planning book and in the DPCOLL## data view, createa selection called COLL## for the version 000 product P-102, and Customer0000001032 and assign this to your logon ID.

a) Advanced Planning and Optimization→ Demand Planning→Planning→ Interactive Demand Planning

b) In the selection area, select the triangle next to your DPCOLL##planning book to expand the views, then double select on theDPCOLL## data view.

c) Select the Selection Window icon. Choose APO Product at Showand define only product P-102 and Customer 0000001032.

To save the selection as COLL##, click the Save Selection icon.Enter COLL## for the selection description. Select Save and

then Adopt.

d) To enable easy access to this selection, assign the selection to the

selection profile by selecting Selection profileheader bar. A dialog window will open up. Drag your selection from

the right side of the window to the book on the left side. Select

Save and Adopt.

Task 2: Interactive Demand PlanningAs part of your company's demand planning process, you will normally berequired to analyze the forecast data created by mass processing jobs and make thenecessary adjustments to arrive at a more exact demand plan. In this task, however,you will first create interactive sales quantities and then analyze the results.

1. Select the DEMAND PLAN data view and load the data for product P-102.In the planning table's FORECAST key figure, use the distribution operatorto plan 1000 pieces for the next 5 months and save.

a) In the Shuffler, select the triangle next to your DPBOOK## planningbook to expand the view, then double-click on the DEMAND PLANview.

b) Load the data for product, P-102 by double selecting the PRODUCT##selection ID and then the info Object P-102.

c) To select the next five periods, hold the left mouse button and dragit over the column headers. Select Distribute icon, check thehorizon, enter 1000 pieces for the FORECAST key figure, and enter =

for the Operator. Select Distribute.

d) Click Save .



Lesson Summary

You should now be able to:� Use the shuffler and the selection area to display data of selected objects� Create, save, and assign Selection ID's to User Logon ID's.� Use the work area for planning


SCM220 Lesson: Analyzing Data in the Interactive Planning Table

Lesson: Analyzing Data in the Interactive Planning Table

Lesson OverviewIn this lesson, you will learn to navigate in the interactive planning table, enter andanalyze data. You will learn about the basic functions of the interactive planningtable including proportional factors and their effect on the final forecast.


� Analyze data using aggregation and disaggregation methods� Navigate in the work area� Change proportional factors interactively� Use the basic planning table functions

Business ExampleThe Precision Pump company will use Demand Planning in SAP SCM to forecastits finished products. While a majority of the demand planning process willbe performed by background jobs, planners will be responsible for performinginteractive planning on a periodical basis. It is important that all planners are ableto navigate in the interactive planning table, and to enter and analyze data. Theyshould also understand how proportional factors affect demand planning.

Drill Down in Interactive PlanningOne of the most important activities in a demand planning process is to be able tostart at an aggregate/summary level of information, and navigate to more detailinformation as it suites the use. This activity is often referred to as Drill-up andDrill-down capability.



Figure 22: Drill-down in Interactive Planning

The Drill-Up and Drill-Down options in the selection tree enable you to navigatethrough the characteristic combinations and display the associated key figurevalues. You can use the Drill-Down or Drill-Up options through one or multiplelevels and in any sequence. The process is not hierarchical.

Demand Planning uses Characteristic Combinationsto establish relationshipsbetween fields. For example, You select Pump P-102 and want to know whichcustomer has bought it. Through the use of drill down functions you caninvestigate by accessing it from any point of reference.

Data Evaluation with the Drill Down FunctionOften during the planning process, users will need to look at �groups� of data.This may take the form of several materials, yet planners want to look at alltransactional data related to these products. Further more, they might wish tosee, a break down of what customers bought those products, and what locationsshipped to those customers.

Through the user of a header, users can drill-down on aggregate data to get tothe finer details to make more informed decisions.

Note: Headers are user and data view specific. Once set, they will appearany time the view is accessed. If the view is accessed via collaborativeplanning or the internet, the headers will allow users to explode theaggregate data down.



Figure 23: Navigation Within the Work Area

To set up header information in the planning table, choose Settings→ Header

Information or select Header On/Off and Header Information Settings.Here each user can specify in order, the characteristics (master data) they wouldlike to drill down on. Users will also have the opportunity to display either thefield value (product number) or the description.

You can display your characteristic values in a sequence using the arrows in theheader information. The total shows you the aggregated total of your selected datain the work area. If you select Details (all), you are given an overview of all themembers in your work area.

Note: The sequence and the contents of the fixed header information canbe changed with BAdI '/SAPAPO/SDP_HEADER' (Note 380352).

Aggregation and DisaggregationAs stated earlier, towards the end of the demand planning process, users aretypically looking at summary or aggregate data. Users will need to understandhow the data is being presented to them as well as how any changes at an aggregatelevel will be handled.



Figure 24: Aggregation and Disaggregation

Aggregation is the function that automatically adds the key figure values on thelowest detail level in real time, and displays or plans with them on a higher level.If, for example, you display the forecast demand for a region on the interactiveplanning table, you will see the forecast demand that the system calculated forthe different distribution channels, product families, brands, and customers inthe regions in question.

Disaggregation is the function that automatically distributes the key figurevalues on a higher level onto the members on the lowest level. For example,when you forecast the demand for a certain region, the system instantly splits upthis number according to the region's different sales channels, product families,brands, products, customers and so on.

Aggregation and disaggregation ensure a consistent planning approach throughoutyour organization. The sum of the details on the low level always equals the totalon the high level. Key figure values are always saved at the lowest detail levelonly. If aggregates exist, the data is also saved on the aggregate level.

Use the following steps to perform aggregation and disaggregation:

1. Select your characteristic values and planning version.

2. Load the data for one or more characteristic values. The key figures areaggregated and displayed for the characteristic values contained in your selection.

3. Create or change your plan. The key figures are disaggregated automaticallyaccording to the characteristic combinations.

To choose the data you want to plan, select the characteristic values and theversion. When you have loaded the data, an aggregated view of the selected datais displayed in the Interactive Planning screen. When you save the data, it isautomatically disaggregated and stored at the detailed level.

To store selections, such as characteristic values and versions that are used on aregular basis, you define the selection variants. The variants can be placed infolders. A delete function is also available to delete selection variants.



Rounding During DisaggregationRounding is essential to the understanding of calculations that are made inDemand Planning. In conjunction with time-based disaggregation/aggregation itcan lead to unexpected results. When dealing with rounding or dis-/aggregationissues, remember that disaggregation is carried out first on a time basis and thenon a structural basis.

Internally, for instance in macros and forecasting, Demand Planning uses floatingpoint arithmetic. In interactive planning you can display numbers with up to 6decimal places. As a default the system takes the number of decimal places fromthe unit of measurement. However liveCache uses a fixed number format of 12,3,that is 12 places before the decimal point, and three after. This means that allnumbers are stored with a maximum of three decimal places.

In Release 4.0 and later support packages of Release 3.0 and 3.1 a new algorithmis used. The number of decimal places is defined for each key figure. Whenconverting from the internal format used in interactive planning to the liveCacheformat, the system first converts to the format specified in the key figure and thento liveCache format. In both steps normal rounding is used (that is a number lessthan 0.5 is rounded down, 0.5 and greater is rounded up)



Rounding effects are most noticeable when working with integer values, forexample pieces (PC), bottles or palets. If you distribute 100 pieces to threecharacteristic values, each receives 33 and 1 piece remains. This remaining piecemust receive one of the three characteristic values so that the sum on the detaillevel is correct. But which? The system distinguishes between two situations:

� All characteristic values are initial. If there is no value on the detaillevel, as in the case above, the system determines the exact value (in theexample below, 33.333). This is rounded to the next whole number for thefirst characteristic value, in this case, to 33. The difference between theexact value and the rounded-off value (0.333) is carried over to the nextcharacteristic value. Here it is added to the distributed value. The sum isthen rounded, so that the value 34 is the the result in the example. Thedifference between the modified exact value and the rounded value (-0.334)is carried over to the next characteristic value. This procedure is valid for allcharacteristic values.

� The exact proportions are determined. These values are rounded in the usualmathematical way � if the decimal is greater or equal to 0.5, the value isrounded up to the next whole number, if it is less than 0.5, it is roundeddown. For each characteristic value the difference is formed between theexact value and the rounded value. This difference can also be negative.Next, the sum of these differences is formed for all characteristic values.This sum is then distributed among the characteristic values as described insteps 1 - 3. If a small quantity remains, for instance because all the decimalsare under 0.5, this value is assigned to the first characteristic value. If thedifference to be assigned is negative and assigning it would create a negativequantity, the system reacts in the following manner: for each characteristic,the product is formed from the proportional factor and the current value. Thedifference is then assigned to the characteristic with the largest product. Theorder of the characteristic values in liveCache is not necessarily the same asthe order in interactive planning. This may produce unexpected results.

Effect of Time-Based Disaggregation as mentioned above, the system alwaysdisaggregates on a time basis before it disaggregates on a structural basis. Thismeans that rounding effects can be amplified. To avoid such effects, you shouldwork large values, that is small units. As a result the relative error is smaller. Youshould also avoid working with several different time periods or periods whereone is much larger than the other, the extreme example being years and days.

Proportional FactorsIn order to fully understand the aggregatation and disaggregation process, usersmust be aware of some of the customizing choices that may have been made.Aggregation and Disaggregation are controlled by proportional factors. There areseveral techniques that users can use to determine the way proportional factors arecalculated. These techniques are assigned in the setup of the planning area prior toany data loads. Each key figure can be assigned its own disaggregation process.



Figure 25: Changing Proportional Factors Interactively

Aggregation and disaggregation of each key figure are defined by its calculationtype and its time-based disaggregation type. It is a combination these of twosettings which are set in the planning area configuration. First, we will focus onthe calculations type. You choose from the following calculation types:

S - Pro rata

Proportional disaggregation occurs differently when you create or change yoursales plan: if you are create data on an aggregate level, the data is equallydistributed on the lowest detail level. If you change data on an aggregate level, thevalues at the detailed level change so that each one represents the same proportionof the aggregate values as before.

Note: This technique is often used when changes at the lower levels arevery relevant at a high level. For example you wish the input of yourfield sales reps to be used in influencing changes that the vice presidentof sales might make.

P - Based on another key figure

The data is distributed to the lowest level of detail in the same proportions as thosethat can be derived from the values of another key figure. For example, you canapply the proportional distribution of the key figure "Baseline/statistical forecast"to the key figure "Manual adjustment". Note, however, that if no values exist forthe key figure "Baseline/statistical forecast", pro rata disaggregation is used. If youenter 'P', you must also specify the key figure on which disaggregation is based.

Note: This technique will be used if changes at the lower level are NOTrelevant at a high level. In this example the vice president of sales doesnot want the changes that the field sales reps. to impact any of his/herchanges at the regional level.



A - Average of Average of key figures figures

The average of the key figure values at the next lower aggregation level isdisplayed as the result at runtime. Use this option for key figures that representpercentages (for example, the percentage difference between this year's and lastyear's forecast) or sales prices (for example, sales price per unit). If you enter avalue on an aggregate level, the system disaggregates it by copying the value tothe details on the lower level unless data already exists then it will be distributedin proportion to the detail values. Generally, this type of calculation is used forkey figures that are output only in order to display the average but not to make anychanges at an aggregate level.

D - Aggregation with Calculation Type D

The average of the key figure values at the detail level is displayed as the result atruntime.

If values already exist at the detail level and you then change a value at anaggregate level, the system disaggregates the changed value according to theexisting proportions and not in the manner described above. This is valid for bothtype A and D. Generally, this type of calculation is used for key figures that arefor output only, in order to display the average of the detail values but not tomake changes on the aggregate level.

Proportional factors are usually generated from historical data but may also begenerated from planning data. You can also maintain the proportional factorsin the planning table.

N - No disaggregation

Disaggregation costs performance, so set this option for text rows, auxiliary rows,and other rows that do not need disaggregating.

I - Pro rata, except for the initial disaggregation, which is based on anotherkey figure

This calculation type is a combination of S - Pro Rata and P - Based on anotherkey figure. This disaggregation works in two ways, depending on whether youare creating or changing the demand plan: If you create data on an aggregatelevel, the data is distributed to the lowest level of detail in the same proportionsas those that can be derived from the values of another key figure. For example,you can apply the proportional distribution of the key figure "Baseline/statisticalforecast" to the key figure "Manual adjustment". If there is no value for the basiskey figure, the values are disaggregated evenly. If you enter 'I', you must alsospecify on this screen the key figure on which disaggregation is based. If youchange data on an aggregate level, the values at the detailed level change so thateach one represents the same proportion of the aggregate values as before. Thistype of disaggregation gives you a good starting point when creating data, ratherthan the even distribution that pro rata would give you. You could base the initialdisaggregation on historical sales to disaggregate in the same proportions as last



year's sales. Then, as you change data on the detail level, it gives you the benefit ofpro rata disaggregation and disaggregates in the same proportion as the planningdata thus adapting to your new plan. It tries to give you the best of both worlds.

Caution: Drill down can influence disaggregation. If you have set Rule S,for example, and do not drill down, distribution will occur according to theratio of the members on the lowest level. If you do drill down, accordingto sold-to party for instance, the system will distribute according to thesold-to party ratio.

Time Based DisaggregationThe defines how planning data is disaggregated in time. The time buckets inwhich data is saved are given by the storage buckets profile. The pre-requisite forusing time -based disaggregation is you must be using a storage buckets profilewhich contains more than one time characteristic, i.e., weeks and months.

P - Proportional distribution

Data is distributed in time so that each key figure value in the smallest storagebucket represents the same proportion of the value in the aggregate bucket asbefore. If the key figure values prior to distribution were zero, and if a time streamID forms part of the storage buckets profile definition, the system checks to see iftime-based weighting factors exist for this time stream. If so, the data is distributedaccording to the time-based weighting factors of the time stream. If no factorsexist, the data is distributed equally to each storage bucket.

E - Equal distribution

Data is distributed equally to each storage bucket. This option is available only forkey figures that were not defined as fixable in the Admin Workbench.

N - No disaggregation in time

The value in the planning bucket is copied to the storage buckets; for example,a planning value of $100 for the month of June is copied to each of the storagebuckets June 1-2, June 5-9, June 12-16, June 19-23, June 26-30. If you display theplanning value for June at run time, the system shows the average value of thestorage buckets. This option is available only for key figures that were not definedas fixable in the Admin Workbench.

K- Based on another key figure

This option is basically the same as calculation type P. The data is distributed tothe lowest level of detail in the same proportions as those that can be derived fromthe values of another key figure. For example, you can apply the proportionaldistribution of the key figure "Baseline/statistical forecast" to the key figure"Manual adjustment". Note, however, that if no values exist for the key figure"Baseline/statistical forecast", no disaggregation takes place. If you enter 'K, you



must also specify on this screen the key figure on which disaggregation is based.Do this in the adjacent field "Disaggregation key figure". We recommend that ifyou use option 'K' for time-based aggregation, you also use calculation type 'P'.

L- Read: Value from last period; Write: No allocation

This aggregation type is intended for time series SNP. When you aggregate fromshorter time buckets to larger, for instance weeks to months, the system take thevalue from the last period and copies it to the larger time bucket. In the reversecase, the value is written to all the smaller time buckets.

Manual Maintenance of Proportional FactorsSome reasons for maintaining proportional factors manually: you would like torevise the constant proportional factors you generated automatically, or you wishto enter the proportional factors manually because you have no historical data onwhich to base the automatic generation process.

Prerequisites:

� If you wish to use this function to change the automatically generatedconstant proportional factors, you have already generated the factors.

� When creating the planning book, you selected Manual proportionsmaintenance. This indicator is to be found on the Planning book tab stripunder Include standard functions.

� In the planning book, create a data view containing only the key figureAPODPDANT. (This is not absolutely necessary, but does enable you tolimit the number of people authorized to change proportional factors.) Ifnecessary, assign planning books and data views to the demand planners whoare authorized to change proportional factors.



Exercise 2: Analyzing Data in theInteractive Planning Table

Exercise ObjectivesAfter completing this exercise, you will be able to:� Analyze data using aggregation and disaggregation� Navigate within the work area� Change proportional factors interactively� Use basic functions of the planning table

Business ExampleThe Precision Pump company will use Demand Planning in SAP SCM to forecastits finished products. While a majority of the demand planning process willbe performed by background jobs, planners will be responsible for performinginteractive planning on a periodical basis. It is important that all planners are ableto navigate in the interactive planning table, and to enter and analyze data. Theyshould also understand how proportional factors affect demand planning.

Task 1: Interactive Demand PlanningAs part of your company's demand planning process, you will be requiredto analyze the data created by mass processing jobs and make the necessaryadjustments to arrive at an accurate forecast. In this task you will load existingdata and use drill down functionality to analyze it.

1. Select your DEMAND PLAN data view and load the data for product P-102.Select only the FORECAST key figure in the planning table. Use theheader information to drill-down to all the location details. Why doesn't thedistribution exactly reflect the proportional factors? Do not save.

2. Change the quantity for location 2400 to 300 in the third month.

3. Does the total change?

4. Change the total in the third month to 1000.




5. Which ratio is used for disaggregation?

6. What do you have to do to disaggregate by the original proportional factors?

7. Drill-up.

8. Add the key figure PREVIOUS YEAR'S SALES to your view and drilldown to all customer details.

9. Which customers buy the product, P-102?

10. Drill-down by location.

11. Which locations supply the customer?

12. Use pivot sorting to display first the locations and then the customer, andshow the row sums for the future. Drill up twice to return to the product level.

13. Show the row totals for the future columns.

14. Save your results

15. Use the distribution operator to plan 10,000 pieces of product P-103 in theFORECAST key figure, distributed equally over the next five months,then save the data..




16. Use the distribution operator to plan 15,000 pieces in the FORECAST keyfigure for the product P-104, over the next five months and save.

17. Load all the three products, (P-102 to P-104), and drill-down by product.Change the total in the third month to 4000. The individual productquantities are reduced accordingly.

Task 2: Proportional Factors and DisaggregationOften times throughout the process, users will be required to make adjustments ataggregate levels. In order to ensure your understanding of disaggregation, youwill use the interactive planning table to see how some of the functions work.

1. To maintain the proportional factors, select your PROPORTION data viewand load the data for product P-102.

Enter the LOCATION characteristic in the header and drill-down to all thelocation details. Change to the percentages display.

In the third month, change the calculated percentage proportion for thelocation, 2400 to 50%. Save your entry.

Location Month 2 Month 3Proportionalfactor

Total 100 100

1000 2 22400 45 502500 53 48

Now go back to the DEMAND PLAN data view, load the data for P-102,drill down to details for all locations for the CORRECTION key figure, enter1000 pc. for the second and third months, and compare the disaggregation tounderstand the effects of the change in proportional factors.



Solution 2: Analyzing Data in theInteractive Planning TableTask 1: Interactive Demand PlanningAs part of your company's demand planning process, you will be requiredto analyze the data created by mass processing jobs and make the necessaryadjustments to arrive at an accurate forecast. In this task you will load existingdata and use drill down functionality to analyze it.

1. Select your DEMAND PLAN data view and load the data for product P-102.Select only the FORECAST key figure in the planning table. Use theheader information to drill-down to all the location details. Why doesn't thedistribution exactly reflect the proportional factors? Do not save.

a) Select the triangle next to your DPBOOK## planning book to expandthe view, then double-click on the DEMAND PLAN view.

b) Load the data for product, P-102 by double selecting the PRODUCT##selection ID and then the info Object P-102.

c) Select the Key Figure Selection icon that is above the planningtable and select the FORECAST key figure.

d) Select the Header On/Off icon to switch the header above theplanning table on or off. Choose Header Info Settings to set up theheader information. Select the APO-LOCATION characteristic.Select Adopt. A navigation bar appears for you to choose theindividual characteristic values, the total characteristic values, oran overview (Details (all)) of the characteristic values. Drill-downby APO-LOCATION by going to the APO-LOCATION headerinformation and selecting Details (all).

Hint: Rounding in Demand Planning: In the planningarea, if you use a base unit of measure that has no decimalplaces defined, quantities are stored only in integer values.If you enter quantities at the aggregated level, the quantitiesare first disaggregated by time, which is from months downto weeks, and then by characteristic combinations. This canlead to deviations from the calculated proportional factorsduring disaggregation, especially for small quantities due tothe rounding errors. You will have less rounding errors if youonly work with one time buckets profile or one base unit ofmeasure with decimal places.




2. Change the quantity for location 2400 to 300 in the third month.

a) Reduce the quantity for the location, 2400, in the third month to 300 byover-typing the value in that row.

3. Does the total change?

Answer: The total will also be changed.

4. Change the total in the third month to 1000.

a) Change the Total in the third month to 1000. Click on the Total in the3rd row and overwrite it with 1000.

5. Which ratio is used for disaggregation?

Answer: The members are disaggregated by the member ratio.

6. What do you have to do to disaggregate by the original proportional factors?

Answer: You have to delete the value on the Total level, press ENTER,and enter the value again.

7. Drill-up.

a) To drill-up, set the LOCATION characteristic in the navigation bar toTotal.

8. Add the key figure PREVIOUS YEAR'S SALES to your view and drilldown to all customer details.

a) Now add the PREVIOUS YEAR SALES key figure by clickingKey Figure Selection above the planning table and choosing

Multiple Key Figures. This will open a dialog box in which you canselect both key figures. First select Deselect All then select only theFORECAST and PREVIOUS YEAR'S SALES key figures.

b) To find the CUSTOMER for product P-102, add CUSTOMER to the

header by selecting Header Information Settings and selecting thecustomer characteristic in the second row. Adopt and drill down byCustomer by selecting Details (all) on the Customer icon.

9. Which customers buy the product, P-102?

Answer: P-102 is primarily sold to 2401, 2402, 2502, and 2503.

10. Drill-down by location.

a) Next, drill-down by location by selecting Details (all) on the Locationicon.

11. Which locations supply the customer?

Answer: Locations 2400 and 2500.




12. Use pivot sorting to display first the locations and then the customer, andshow the row sums for the future. Drill up twice to return to the product level.

a) Right-click the title field on the upper left side of the planning table

with the SAP icon and select Pivot sorting.

b) In the dialog box, drag Location so that it is above Key Figure andthen select and drag Customer so that it is above Key Figure. Select

Copy . You should see that location 2400 supplies customers 2401and 2402.

13. Show the row totals for the future columns.

a) To find the row totals, go to Settings→ Row totals→ Future.

b) Hide the row totals, go to Settings→ Row totals→ Hide Column.

c) Drill up by choosing Total on the Location characteristic and then Totalon the Customer characteristic.

d) Now choose all key figures by clicking Key Figure Selectionabove the planning table.

e) Stay in the Interactive Planning Table for the next exercise.

14. Save your results

a) Select Save.

15. Use the distribution operator to plan 10,000 pieces of product P-103 in theFORECAST key figure, distributed equally over the next five months,then save the data..

a) Load the data for product P-103.

b) To select the next five periods, hold the left mouse button and dragyour cursor over the column headers. Select the Distribute icon,check the horizon, enter the quantity for the FORECAST key figure,

and select the == operator. Click Distribute.

c) Select Save.




16. Use the distribution operator to plan 15,000 pieces in the FORECAST keyfigure for the product P-104, over the next five months and save.

a) Load the data for product P-104.

b) To select the next five periods, hold the left mouse button and drag yourcursor over the column headers. Select the Distribute icon, checkthe horizon, enter the quantity for the FORECAST key figure, andselect the == operator. Click Distribute (the green check mark icon).

c) Select Save.

17. Load all the three products, (P-102 to P-104), and drill-down by product.Change the total in the third month to 4000. The individual productquantities are reduced accordingly.

a) Select all three products and press the Load Data button. You now seethe aggregate quantities of all three products that were selected.

b) Now choose only the FORECAST key figure by clicking KeyFigure Selection above the planning table.

c) Add APO Product to the header by clicking Header InformationSettings and selecting the APO Product characteristic in the third row.Adopt the setting and drill down by Product by selecting the Details(All) option next to product.

d) Change the Total value in the third month by over-typing the quantity.

e) Exit the Interactive Planning Table without saving.

Task 2: Proportional Factors and DisaggregationOften times throughout the process, users will be required to make adjustments ataggregate levels. In order to ensure your understanding of disaggregation, youwill use the interactive planning table to see how some of the functions work.

1. To maintain the proportional factors, select your PROPORTION data viewand load the data for product P-102.

Enter the LOCATION characteristic in the header and drill-down to all thelocation details. Change to the percentages display.

In the third month, change the calculated percentage proportion for thelocation, 2400 to 50%. Save your entry.




Location Month 2 Month 3Proportionalfactor

Total 100 100

1000 2 22400 45 502500 53 48

Now go back to the DEMAND PLAN data view, load the data for P-102,drill down to details for all locations for the CORRECTION key figure, enter1000 pc. for the second and third months, and compare the disaggregation tounderstand the effects of the change in proportional factors.

a) Double-select the PROPORTION data view for your DPBOOK##planning book.

b) Load the data for product, P-102 by first double-selecting your selectionID PRODUCT## and then double selecting the P-102 row.

c) Click Header On/Off to switch the header above the planning table

on or off. Choose Header Info Settings to set up your header

information. Select the APO LOCATION characteristic. SelectAdopt. Drill-down by LOCATION by going to the LOCATION headerinformation and selecting Details (all).

d) Change the data display from absolute to percentage by clickingAbsolute <=> Percentages above the planning table. Change theproportion for the location, 2400, in the third month to 50%.

e) Select Save. If the Save symbol is inactive, change to theDEMAND PLAN data view with a double-click. The system willask if you want to save.

f) Stay in Interactive Planning. Double-select on the DEMANDPLAN view, double-select on the PRODUCT## selection ID, anddouble-select on the row P-102.

g) Now choose only the FORECAST key figure by clicking KeyFigure Selection above the planning table.

h) In the header select on the APO-Location characteristic and chooseDetails (all).

i) Now you can view the data for each location. Enter 1000 in the secondand third months and hit enter. Compare the disaggregation for the 2ndand 3rd month. Refer to the Hint above on rounding.



Lesson Summary

You should now be able to:� Analyze data using aggregation and disaggregation methods� Navigate in the work area� Change proportional factors interactively� Use the basic planning table functions



Lesson: Additional Features of the Interactive PlanningTable

Lesson OverviewIn this lesson we will look at additional features of the interactive planning table.First, we look at how to add documentation to your planning data by using notes.Next, we'll investigate how you can fix a key figure value in the planning table.The integration with Microsoft Excel will be explored and finally we'll look atreporting options for your planning data.


� Enter notes to document your planning data� Fix values of key figures in interactive planning� Copy between the interactive planning table and Microsoft Excel� Export your planning book data to Microsoft Excel at the detail, aggregate,

and pivotal table levels.� Explain and use different options for reporting on your planning data.

Business ExampleAs a demand planner for Precision Pump Company, you will need to documentany manual changes you make to the forecast. In addition, you may need to freezethe forecast for a particular customer while increasing total demand. Since someof your customers send data to you via Excel, you want to copy this data into theinteractive planning table without manually entering it to ensure data accuracy.You also need to copy data from the interactive planning table to include inpresentations and publications. To properly manage the demand planning processyou will need to report on the planning data.


SCM220 Lesson: Additional Features of the Interactive Planning Table

Documenting Changes in the Interactive PlanningTable

Figure 26: Notes in Sales Planning

You use notes to explain the reasons for an occurrence, either for your own benefitor for other demand planners. For example, the reasons why a demand forecastis particularly high or low in a certain time period at a certain level or why acertain correction was entered.

You use Notes navigation to drill-down from a high level to a note at a low level.You use this option when you are working at a high level as a demand planner,such as at the regional level and want to display the explanations for a forecastcreated by another planner at a low level, such as the product level.

Notes are planning area specific. This means that if you create a note for a keyfigure and time bucket in one planning area, you can see this note in all planningbooks in this planning area provided the same key figures and time buckets existin the planning books.



Notes can not be created in the Interactive Planning table under the followingcircumstances:

1. The access selection contains navigation attributes, area specifications(intervals), entries with wildcards (PROD*) or exclusion conditions.Exception: In rare cases, these selections can be converted into selectionsthat only contain unique entries for the basic characteristics. A note is thencreated for this transformed selection.

2. A drill-down was carried out to a navigation attribute.3. The initial selection contains multiple restrictions for more than one

characteristic. In this case, it is not possible to create any notes, even aftera drill-down to the single values of all limited characteristics. This is onlypossible if only one characteristic is restricted several times in the initialselection.

4. The initial selection contains multiple restrictions for a characteristic and youdo not execute a drill-down. Exception: You select all existing productsindividually, and they are then implicitly on another level and the system cancreate a note by not saving a restriction for the characteristic.

5. The initial selection contains multiple restrictions for a characteristic. Youdrill down to another characteristic. Exception: When you restrict the firstcharacteristic, you are already on the aggregate level for this characteristic(e.g., initial selection product EQ A, product EQ B. After drilling down to alocation, a note cannot be created if products A and B are not there.).

6. A note cannot be saved if no characteristics are specified for the planningarea.

The /SAPAPO/COPY_NOTES program is available as of APO Release 3.1. Youcan use it to transfer notes from one planning version to another. A note overview(reporting) is not provided in the standard APO Release 3.0/3.1. A note overviewis available as of Release SCM 4.0. In planning area administration you canaccess this function using the menu path Display Planning Area -> Goto→ NoteOverview. You can also display the texts of the notes here and delete the notes.There is no transport connection for notes, and notes are not transported duringthe transport of planning folders, for example. When you delete characteristicscombinations, the corresponding notes are also immediately deleted.

You can download notes using the note overview in the standard system as ofSCM 4.0. Prior to Release SCM 4.0, a download can only be performed in acustomer-specific program. If you are using the PRODU conversion exit foryour product characteristic, you must not change the settings for the externaldisplay in transaction /sapapo/omsl. However, if you do change the settings, the



notes already created can no longer be used. This restriction no longer applies asof SCM Release 4.0 (as of this release, the internal display of the characteristicvalues is stored in the note anchor table).

Note: Refer to note 588986 when you are upgrading to SCM4.0. The note anchor tables must be converted with the/SAPAPO/TS_NOTES_CONVERT_40 report.

In the following cases, it is not possible to create a 'Note' in Collaborative Planning(See also OSS-Note 571629 for further details of 'Note' Management):

� The selection includes Navigation Attribute� The selection includes the entry with Interval or Wildcard (*)� The selection includes more than one characteristics which have several

value-restrictions.� The selection includes one characteristic which has several value-restrictions

and you execute Drill-down with another characteristic. (Exception: Thecharacteristic in the selection has value-restriction, but even with thisrestriction you are already on Aggregated Level.)

Fixing Key Figure ValuesDuring the demand planning process, change values at an aggregate level is verycommon. However, there are certain instances in which you might want to blockthe disaggregation for a specific characteristic combination. This functionalityis know as Fixing in SAP SCM Demand Planning

Figure 27: Value Fixing

You can fix the value of a key figure in interactive demand planning such that thisvalue will not change when you change other values of this key figure at otherplanning levels. In cases where a change to the sum of the detail values conflictswith the individual detail values, the individual detail values take precedence.



Prerequisites for fixing:

1. To fix a key figure you need to assign this key figure a second key figurein which the fixing information is stored. You do this in the AdministratorWorkbench RSD1 (Process→ Info Objects) in key figure maintenance byentering another Fixed Key Figure. You find this field on the Type/unit tab.The key figure MUST be an APO key figure, not a BW key figure.

2. You have included the key figure you want to fix in the planning area. In theplanning area, you do not need to include the key figure in which the fixedvalues are stored. If you create a planning area and include in it the keyfigure you want to fix, the key figure in which the fixed values are stored isautomatically added to the planning area.

3. The key figures that you want to fix must have calculation types that allowdisaggregation , for instance Pro Rata or Based on Another Key Figure.Average calculation types or No Calculation are not allowed. The systemprevents you from creating such planning areas with key figures for fixing.

4. If you want to save fixed values at aggregated levels, you must define anaggregate for this level in your planning object structure.

Note: (Only relevant up to Release 3.1) Changes to this processwere instituted in Release 4.0.

To fix a key figure value, right-click the cell of the relevant key figure value. Thecolor changes to red and a padlock icon appears, indicating that this value is fixed.As of SCM Release 4.1, you can fix all the values of selected cells in one step andhave the sum or the average calculated.

To undo the fixing of a key figure value, right-click the cell again.

Propagation of Fixing Information

As of Release 4.0 it is possible to enter data at an aggregate level and fix it withouthaving defined an aggregate for this level. If they are not visible in the grid, allsubordinate levels are then also fixed. When you unfix at the detail level, theaggregate is automatically unfixed. Similarly if you fix all non-zero entries at thedetail level, the aggregate level is also fixed. However if you can see the nextsubordinate level in the grid and then fix the total, the subordinate lines are notfixed. When working with several fixed lines, you should always ensure thatat least two lines, including the total, are unfixed. You cannot change just oneunfixed line as this would lead to inconsistencies since the total cannot be changedand the difference cannot be subtracted from another line.

Saving of Fixing Information

In general fixing information is only saved at detail level. If an aggregate existsfor a particular level, the fixing information for this level is also saved. Note thatif all the non-zero detail levels are fixed the aggregate level appears to be fixed,even after saving. This is for consistency reasons; you cannot change one entry, ifall the others are fixed.



Integration with Microsoft Excel (Optional)

Figure 28: Copy and Paste To/From Microsoft Excel

As of Release 4.0 you can use the cut, copy, and paste functions as in standardWindows programs. You can copy cells or continuous groups of cells (for instancerows, columns, neighboring rows and columns). Only the cell contents are copied.Attributes such as color and icons are not copied. You select the cells to be copiedand choose Ctrl-C to copy, Ctrl-X to cut, and Ctrl-V to paste. If one of the targetcells is either fixed or read only, the copy operation is cancelled. Similarly theoperation is cancelled if the area to be copied does not fit into the target area. Thisfunctionality also applies to the Interactive SNP Planning Table.

Caution: Be aware that the system does not check for data integrity. Usethis function with caution since there are no plausibility checks and noundo function.



Figure 29: Exporting Data from Interactive Demand Planning

As of Release 4.0, when you export the interactive planning table using Save as alocal file, the system saves the data as it appears in the Interactive Planning Tableand not only the raw data. This give you the ability to save the pivotal table toExcel as in the above example. In previous versions, only the raw data was dumpedto Excel regardless of the format that appeared in the Interactive Planning Table.

User SettingsAs of Release SCM 4.1, you can modify your personal settings for interactiveplanning with this function. You can set a selection to automatically load whenyour planning book opens, or to navigate directly to a certain level by drillingdown. An administrator can also fix settings for several users or selections.

You can assign user settings to different levels. The most detailed level is planningbook and data view, user and selection. When there are no settings available onthis level, the system tries to find settings saved on a higher level, e.g., planningbook / data view and user. In this case, a yellow lights appears on the appropriatetab page instead of a green one.



Figure 30: User Settings

Users can create or change their settings in the current planning book and dataview in the interactive planning function. Administrators can fix settings centrallyusing the /SAPAPO/SDPUSET transaction. You can set a filter for the selectionscreen on the next screen. For example, your can limit the display to a certainplanning book or a certain user. A list of existing user settings appears. At thispoint you can copy the user settings of a particular user for someone else. Youselect a line and choose Create/Change, so that you can make or modify thesettings. If you do not choose existing settings, you can create a new entry.

Reporting from Planning BooksOne of the important tasks of planners is to report on the forecast and planningdata. As you have seen from the functionality of the Interactive Planning Table,all of the functionality you need for reporting and analysis exists in the table.The Interactive Planning Table can be used to meet all your reporting needs. Inaddition, this ensure that you always have the latest data because the reporting ison line. Any changes to the data are automatically picked up in your report andyou never have to worry about which snapshot of data you are using.

SAP realizes that not all reporting can be done on line. There are times whenreports for publication or presentations must be compiled from snapshots of data.While the best opportunity for reporting is done on line, we provide for off linereporting as well.

Your best choice for reporting is and should always be the external SAP BusinessInformation Warehouse (SAP BW). The advantage is that reports are executedon another server which won't affect the performance of your planning server. Inaddition, you are using a tool specifically designed to report off large amounts of



data. Since SAP BW technology also provides the foundation of SAP SCM, dataintegration between the two system is simple. For more information regarding thesetup and extraction of data into a SAP BW system please refer to the SAP BWdocumentation or attend the BW classes.

Now we are at the third choice of reporting. You can take advantage of the SAPBW foundation in SCM for reporting purposes. Because all SAP BW technologyis contained in SCM, you can also use our Business Explorer Analyzer (BEX) torun reports. But keep in mind that your SAP SCM server is a planning tool andnot a reporting tool. It is always best to reserve the server resources for planningrather than consume them for reporting.

Figure 31: Reporting in SAP SCM

You can use the BEX to report on actual historical data or old forecast data storedin InfoCubes in the database. You can also use the BEX to report on planning datadirectly from liveCache. Some technical setup is required and enlisting the helpof some BW expertise is most helpful.



Exercise 3: Working with Key FigureValues

Exercise ObjectivesAfter completing this exercise, you will be able to:� Fix key figure values in the planning table� Enter notes for a key figure value in the interactive planning table

Business ExamplePrecision Petrol Pump Company's demand planner wants to prevent a changed keyfigure value for a certain characteristic values combination from being overwrittenwhen changes are made on other planning levels. To do this, he has to fix thevalue. The planner also needs to document why this key figure value was fixed.

Task:1. You can fix only APO key figures. In our example, only the CORRECTION

key figure is an APO key figure. Load product P-102 into the DEMANDPLAN data view, show the CORRECTION key figure, and drill down bylocation.

Enter 1000 pieces as the total in the third month and fix the detail value forthe location, 2400. Change the 1000 pieces at the total level to 1200 piecesand check that the fixed value has not been changed.

Enter a comment for the corrected value and return to the totals display(drill-up).

Save and exit the interactive planning table.



Solution 3: Working with Key FigureValuesTask:1. You can fix only APO key figures. In our example, only the CORRECTION

key figure is an APO key figure. Load product P-102 into the DEMANDPLAN data view, show the CORRECTION key figure, and drill down bylocation.

Enter 1000 pieces as the total in the third month and fix the detail value forthe location, 2400. Change the 1000 pieces at the total level to 1200 piecesand check that the fixed value has not been changed.

Enter a comment for the corrected value and return to the totals display(drill-up).




Save and exit the interactive planning table.


b) In the DEMAND PLAN data view double-click your selection IDPRODUCT## and load the data for P-102 by double-clicking the row.

c) Choose the CORRECTION key figure by clicking key figure selectionand choosing CORRECTION.

d) In the header choose Details (all) for the location characteristic.

e) Enter 1000 in the total of the third month.

f) To fix the value for location 2400 right-click the appropriate field andchoose Fix cell.

g) To enter a note for that cell right-click on the cell and choose DisplayNote from the menu. Enter the note �Fixed per VP of Sales�. Saveand exit the planning table.

h) Enter the planning table again and load the data for P-102. Notice theNote icon in the CORRECTION key figure in the third month. Boththe note and fixing have been saved.

i) Right-click on that cell and choose Display note . The note sectionappears at the bottom of the screen with a message �Note(s) found in

subordinate selection�. Click the Display note hierarchy iconto display the note.

j) Drill down to location using the Details (all) for the locationcharacteristic. Delete the note by right-clicking on the cell and chooseDisplay note. Click the Delete note icon to delete the note. You

can close the note window by clicking the Close note editor icon.

k) Now unfix the cell by right-clicking in the cell and choosing Undofixing.

l) Save and exit interactive planning.





Exercise 4: Integration with MicrosoftExcel (Optional)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Copy data from the Interactive Planning Table to an Excel document� Copy data from an Excel document to the ineractive planning table� Export your planning table data to Microsoft Excel at the detail, aggregate,

and pivotal table levels

Business ExampleData from customers comes if a variety of formats. Some of your smallercustomers send their data via an Excel spreadsheet. You want to incorporate thisdata into your forecast in interactive planning. In order to avoid data entry errorsyou want to copy and paste it into the interactive planning table.

From time to time you need to prepare presentations for management as wellas publish reports. You need to use the data from interactive planning to createExcel spreadsheets that can be used in reports and presentations. You will need todownload your inteactive planning data to Excel to accomplish this.

Task:We've already manually created a forecast for P-103 for the first 5 periods. Forcustomers 2401, 2402, 2502, and 2503 we want to extend this data in the samepattern for 12 months. We will copy the data from the Interactive Planning Tableto Microsfoft Excel and extend the series. We will then copy the data back to theInteractive Planning Table and paste it in.

1. Open the interactive planning table and load the data for P-103. Choose theFORECAST key figure and use the header display to show details for allcustomers. Select the data for customers 2401, 2402, 2502, and 2503 for thefirst 5 months. Copy this data and paste it into Microsoft Excel. Extend thesame sequence to a full 12 months. Now copy this data and paste it back intothe Interactive Planning Table for the same customers.

2. Export your data from the Interactive Planning Table into Microsoft Excel atthe aggregate level.

3. Export your data from the Interactive Planning Table into Microsoft Excel atthe detail level.



Solution 4: Integration with MicrosoftExcel (Optional)Task:We've already manually created a forecast for P-103 for the first 5 periods. Forcustomers 2401, 2402, 2502, and 2503 we want to extend this data in the samepattern for 12 months. We will copy the data from the Interactive Planning Tableto Microsfoft Excel and extend the series. We will then copy the data back to theInteractive Planning Table and paste it in.

1. Open the interactive planning table and load the data for P-103. Choose theFORECAST key figure and use the header display to show details for allcustomers. Select the data for customers 2401, 2402, 2502, and 2503 for the




first 5 months. Copy this data and paste it into Microsoft Excel. Extend thesame sequence to a full 12 months. Now copy this data and paste it back intothe Interactive Planning Table for the same customers.


b) Open the DPBOOK## planning book and the DEMAND PLAN dataview. To load the data for P-103, double-click on your selection IDPRODUCT## and then double-click on the row for P-103.

c) Select the FORECAST key figure by clicking the Key figureselection icon and choosing Forecast.

d) In the header, click Customer characteristic and drill down to Details(all).

e) Beginning with customer 2401 in the current month, left-click anddrag across the first five months and down to customer 2503. Youshould now have a block of data highlighted. This is the exact samemethod as selecting data in Excel. Pressing Ctrl-C will copy the data tothe clipboard.

f) Start→ Programs→ Microsoft Office→ Microsoft Excel

g) Select a cell and use Ctrl-V to paste the data into the spreadsheet.

h) To extend the series click and drag the little black box in the lowerright of the selected data. Drag it to the right until you have a total of12 months of data.

i) Now copy the data using Ctrl-C.

j) Return to the interactive planning table and click on the first month forcustomer 2401. Press Ctrl-V to insert the data for all 12 months intothe planning table, then save your file. Scroll to the right to verifythe data copy.

Hint: If you click on the first month cell for customer 1032and press Ctrl-V it will paste the same data again. There is nocheck for data consistency when using this copy and pastemethod. The only check that is performed is to ensure thereare sufficient cells to receive the data.




2. Export your data from the Interactive Planning Table into Microsoft Excel atthe aggregate level.


b) Be sure you are in the DEMAND PLAN data view. To load the datafor P-103, double-click on your selection ID PRODUCT## and thendouble-click on the row for P-103.

c) On the Tool bar click the Save locally icon. Name your file andcomplete the save. If you are using a Citrix connection, you must saveyour file to the N drive in the My Documents folder.

d) Start→ Programs→ Microsoft Office→ Microsoft Excel

e) Open the file you just saved. Be sure to look in the directory in whichyou saved it, N drive for Citrix. You may need to look for a .csv filesince this is the format the system uses.

3. Export your data from the Interactive Planning Table into Microsoft Excel atthe detail level.


b) Be sure you are in the DEMAND PLAN data view. To load the datafor P-103, double-click on your selection ID PRODUCT## and thendouble-click on the row for P-103.

c) Select the FORECAST key figure by clicking the Key figureselection icon and choosing Forecast.

d) In the header, click Customer characteristic and drill down to Details(all).

e) On the Tool bar click the Save locally icon. Name your file andcomplete the save. If you are using a Citrix connection, you must saveyour file to the N drive in the My Documents folder.

f) Start→ Programs→ Microsoft Office→ Microsoft Excel

g) Open the file you just saved. Be sure to look in the directory in whichyou saved it, N drive for Citrix. You may need to look for a .csv filesince this is the format the system uses.



Exercise 5: Reporting in Demand Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Execute a BEX report on actual historical data in an InfoCube� Execute a BEX report on planning data directly from liveCache.

Business Example[Enter a business example that helps the learner understand the practical businessuse of this exercise.]

Task: Demand Planning Reporting with the SAP BWOne of the responsibilities that a demand planner will have to analyze the resultsof their forecast on and ongoing basis. This may be required in order to correct ahistorical event that would lead to an incorrect forecast result, or to analyze howwell your forecast is being run. In this example, you will use SAP BW to createsales reports for the previous year. You begin on a higher level and drill down todisplay more exact details if needed.

1. Access the BW Business Explorer Analyzer to evaluate the data that is savedin the SALES InfoCube. Log on to the SAP SCM system and open theSALESDATA query for the SALES InfoCube.



Solution 5: Reporting in Demand PlanningTask: Demand Planning Reporting with the SAP BWOne of the responsibilities that a demand planner will have to analyze the resultsof their forecast on and ongoing basis. This may be required in order to correct ahistorical event that would lead to an incorrect forecast result, or to analyze howwell your forecast is being run. In this example, you will use SAP BW to createsales reports for the previous year. You begin on a higher level and drill down todisplay more exact details if needed.

1. Access the BW Business Explorer Analyzer to evaluate the data that is savedin the SALES InfoCube. Log on to the SAP SCM system and open theSALESDATA query for the SALES InfoCube.

a) You access the BW Business Explorer Analyzer with: Start→Programs→ Business Explorer→ Analyzer or use transaction codeRRMX. Log on to your SAP SCM system with your SAP SCM userprofile if necessary.

Hint: The menu path will change from one system to anotherso it is convenient to remember the transaction code. Also,using the menu path requires you to log in to the SAPSCMsystem to access the data. Using the transaction codefrom an existing session of SAP SCM does not and is fasterand easier to use.

Enable the macros and choose the Open icon in the BusinessExplorer task bar, then choose Queries.

If no entries appear in the dialog box then click the InfoArea buttonon the left.

Expand the SALES InfoArea and the SALES InfoCube. Select theSALESDATA query by double clicking on it. Choose OK.

You are given an aggregated view of the invoiced sales quantity andinvoiced sales value of the three sales organizations. By clicking theright mouse button over key figures or characteristics you can displaydata in terms of products, sold-to parties, or months.

Exit the query without saving and log out of the SAP Business ExplorerAnalyzer.



Lesson Summary

You should now be able to:� Enter notes to document your planning data� Fix values of key figures in interactive planning� Copy between the interactive planning table and Microsoft Excel� Export your planning book data to Microsoft Excel at the detail, aggregate,

and pivotal table levels.� Explain and use different options for reporting on your planning data.

Related Information

� Note 571629 - How does notes management work?� Note 564186 - CLPSDP: Restrictions in APO Collaborative Planning



Lesson: Collaborative Planning (Optional)

Lesson OverviewIn this lesson you will learn how the internet can be used to access the planningdata.


� Use collaborative planning to enter forecast quantities using the internet.

Business ExamplePrecision Pump Company has a few key customers that provide forecasts fordemand planning. Since these forecasts have been reliable in the past, thecompany would like to provide customers with a tool to enter the data directlyinto demand planning.

Collaborative Planning

Figure 32: Collaborative Planning


SCM220 Lesson: Collaborative Planning (Optional)

In collaborative sales planning, the buyer and seller develop a shared forecast usingthe Internet and input their information dynamically. It is a business-to-businessworkflow, with dynamic data exchange, designed to increase in-stock customerstock while cutting inventory. The basic process consists of six steps. The partiesinvolved need to:

1. Agree on a process: defining each partner's role, determining the degree ofconfidentiality of shared information, committing resources. Agree on aprocedure for dealing with exceptions and performance measurement.

2. Create a shared plan and determining which products should be jointlymanaged. This includes roles, strategy, and tactics.

3. Develop a single forecast of consumer demand based on combined promotioncalendars and analysis of POS data and causal data.

4. Identify and resolve forecast exceptions. This is achieved by comparingcurrent measured values such as stock levels in each store adjusted forchanges such as promotions against the agreed-upon exception criteria(in-stock level, forecast accuracy targets).

5. Develop a single order forecast that time-phases the sales forecastwhile meeting the business plan's inventory and service objectives andaccommodating capacity constraints for manufacturing, shipping, etc.

6. Identify and resolve exceptions to the forecast, particularly those involvingthe manufacturer's constraints in delivering specified volumes. An interactiveloop for reviewing orders is thus created.

Using the internet and any web browser, the external partner in the collaborativeplanning process views and enters forecast data, materials requirements or otherkey figures in the manufacturer's SAP SCM system. Using only a web browser,the external partner can:

� view planning data� enter, edit, or delete data, for example, the weekly forecast� choose and execute a macro for data evaluation� create and display notes� drill down with standard functionality on one characteristic at a time� sort column of characteristic values� access SAP alerts that can also be displayed in Alert Monitor

In order to allow Drill-down / Drill-up via the web browser, you must maintainthe header information of the corresponding planning book in the SAM modulefor interactive supply and sales planning (Settings -> Header Information). Selectthe characteristics which you want to enable Drill down and set the "Changeable"indicator. Here you also have the option to select whether the actual characteristicvalue or the description should be displayed in Drill down mode.



The following user parameters could be set to access the following transactionsvia the internet:

� Displaying graphics in Internet planning books:/SAPAPO/CLP_WEB-GRAPH =X

� Setting for creating Notes in Internet planning books: /SAPAPO/CLP_WEB-NOTE = X

� Setting for exporting data: /SAPAPO/CLP_WEBDOWN = 'XLS' (for MSExcel) or 'CSV' (for other software)

� Setting for inserting the header line as a footer: /SAPAPO/CLP_WEBBHEAD= X

� Setting for displaying repeated headers in Drill downmode:/SAPAPO/CLP_REPHEAD = X

� Setting for the width of fixed column: /SAPAPO/CLP_ROW_WI = S, M,L, XL or '' (blank)

� Link to the Collaborative Alert Monitor: URLAMON = CLPAMON� Starting the Internet Planning Book in Change or Display mode: = D -

Dispaly, C - Change, Blank - start is display

As as of release 4.0 the following features are available for collaborative planing:

� Setting for the width of the description text in the Selection criteria (inPixels):/SAPAPO/CLP_SHLOP_WI = value between 50 and 500 (Defaultvalue:150)

� Setting for the width of the selection box in the Selection criteria (inPixels): /SAPAPO/CLP_SHLTX_WI = value between 50 and 500 (Defaultvalue:300, changed from 320 in SCM Release 4.0).

� Setting for sorting data on Drill down mode: /SAPAPO/CLP_WEBPIVOT =X - Interactiveor D- Direct

� Setting for Paging functionality: /SAPAPO/CLP_DRILLROW = valuebetween 5 and 100 as a number of rows



In the Collaborative Planning, you cannot execute the following:

� Use of large data set on the disaggregated level (data set = number of keyfigures * number of disaggregated characteristics * time periods)

� Execute DP/SNP function (transaction /sapapo/sdp94) via a SAP GUI forHTML

� Execute double drill-down� Use drill-down and drill-up macro� Display more than 3 macro buttons� individual characteristics selection (like with Shuffler in DP/SNP)� Display colors for planning book cells� Assign/Use the selection which is not assigned to the user� Create a 'Note' in certain cases (See below for further details)� Execute Macro in Display mode� Use the RICON macro to display an icon on the right side of the cell� display Detail view for SNP planning book� use VISIBLE macros (ROW_VISIBLE, COL_VISIBLE) to control the

visibility of a grid element� use macros which consider a grid element which is marked / selected by

a cursor� fix a key figure value (fix a cell)� expand and collapse the grouped rows which are behind a master row.� Use the repeat header function (user parameter '/SAPAPO/CLP_REPHEAD')

when the paging function is active. (Only relevant for SCM Release 4.0)

Note: See note 564186 for more details

To implement collaborative planning :

Set up an ITS server for your system and publish the CLP* Services. As of SCM4.1, the ITS plug-in is integrated into the kernel.

Maintain the WEB_SERVER and the WEB_PROTCL for the logicalsystem in table TWPURLSVR in the SCM system (for example,"IGOTO-800.WDF.SAP-AG.DE:1080" and "HTTP").

Inform the user that the following menu path connects you to the Internet andthe relevant Internet address: Demand Planning→ Planning→ CollaborativeDemand Planning.



Planning prerequisites:

� You have assigned a planning book and authorizations to the user� You have assigned selection variants to the user� You have configured the planning table header information for the user,

if drill-downs are required

To enter data over the Internet, click Change at the bottom right of the planningtable.



Exercise 6: Collaborative Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Use collaborative planning to enter planning data via the internet

Business ExampleAfter configuring the planning table layout in the planning book, customers mustbe told their URL and log-on data. Then customers can enter their data via theInternet.

Task:1. Access Collaborative Demand Planning and log on to the system. Select your

planning book, DPCOLL##, with the data view COLL##, and the selectionCOLL##. Go to the Change mode. In the CUSTOMER CORRECTION keyfigure, enter 10 pieces each month for the next three months for productP-102. ClickEnter and save your entries.

2. Call up interactive planning and check your entries for your DPBOOK##planning book with the DEMAND PLAN data view. Double-click theselection, PRODUCT##. Load the data for the product, P-102. Drill-downby Customer. Why do you find planning quantities of 10 pieces each monthfor the next three months for Customer, 0000001032?



Solution 6: Collaborative PlanningTask:1. Access Collaborative Demand Planning and log on to the system. Select your

planning book, DPCOLL##, with the data view COLL##, and the selectionCOLL##. Go to the Change mode. In the CUSTOMER CORRECTION keyfigure, enter 10 pieces each month for the next three months for productP-102. ClickEnter and save your entries.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Collaborative Demand Planning.

Log on to the system with your SCM user profile.

Select the planning book DPCOLL##, with data view, COLL##, andselection COLL##. Next, click the Choose icon on the right-hand side.

Go to the Change mode by clicking the pencil icon on the far right ofthe screen. Enter your data, press Enter, and save.

Exit Collaborative Planning.

2. Call up interactive planning and check your entries for your DPBOOK##planning book with the DEMAND PLAN data view. Double-click theselection, PRODUCT##. Load the data for the product, P-102. Drill-downby Customer. Why do you find planning quantities of 10 pieces each monthfor the next three months for Customer, 0000001032?

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Interactive Demand Planning.

Double-select the DEMAND PLAN data view in your DPBOOK##planning book. Using your PRODUCT## selection ID, load the datafor product P-102.

Click theHeader Information Settings icon located above theplanning table. Select the CUSTOMER characteristic. Adopt. Anavigation bar appears for you to select the individual characteristicvalues, the total characteristic values, or an overview (Details all) of thecharacteristic values. Execute a drill-down according to Customer byselecting the Details All option. You will find planning quantities of 10pieces each month for the next three months for Customer 0000001032in key figure CUSTOMER CORRECTION, because you only includedthis customer in your selection for collaborative planning.



Lesson Summary

You should now be able to:� Use collaborative planning to enter forecast quantities using the internet.

Related Information

� Note 597532: CLPSDP40/41: Settings in Collaborative Supply and Demandplg

� Note 564186: CLPSDP: Restrictions in APO Collaborative Planning� Note 716998: CLP41: Collaborative Planning on SCM Release 4.1 - part 1� Note 720121: CLP41: Collaborative Planning on SCM Release 4.1 - part 2� Note 708192: CLP: Restriction with 'URLAMON' parameter� Note 577845: CLP 40: Install ITS services for APO Collaborative Planning


Unit Summary SCM220

Unit SummaryYou should now be able to:� Use the shuffler and the selection area to display data of selected objects� Create, save, and assign Selection ID's to User Logon ID's.� Use the work area for planning� Analyze data using aggregation and disaggregation methods� Navigate in the work area� Change proportional factors interactively� Use the basic planning table functions� Enter notes to document your planning data� Fix values of key figures in interactive planning� Copy between the interactive planning table and Microsoft Excel� Export your planning book data to Microsoft Excel at the detail, aggregate,

and pivotal table levels.� Explain and use different options for reporting on your planning data.� Use collaborative planning to enter forecast quantities using the internet.



Test Your Knowledge

1. The demand planner uses the selection ID to quickly display selected objectsthat are accessed frequently.Determine whether this statement is true or false.□ True□ False

2. To display the data of multiple objects in the work area, select all the objectsand select the load data icon.Determine whether this statement is true or false.□ True□ False

3. You can use Switch columns/rows to display an overview of all the membersin your work area.Determine whether this statement is true or false.□ True□ False

4. When you start to plan, the selected data is unlocked by default .Determine whether this statement is true or false.□ True□ False

5. You can fix the value of a key figure in Interactive Planning only after yourun the forecast.Determine whether this statement is true or false.□ True□ False

6. You select your planning books and data views in thearea.

Fill in the blanks to complete the sentence.

7. You use the icon to choose whichplanning view key figures are to be displayed in the work area.Fill in the blanks to complete the sentence.



8. allows the sequence of key figures andcharacteristic values to be set in the all details view.Fill in the blanks to complete the sentence.

9. What are the various tasks that you can perform by right-selecting on cell onthe top left of the planning table?

10. What are the main purposes for which you use notes?

11. What are the two prerequisites for fixing?

12. What are the planning prerequisites for Collaborative Planning?



Answers

1. The demand planner uses the selection ID to quickly display selected objectsthat are accessed frequently.

Answer: True

The demand planner uses the selection ID to quickly access frequentlyused selections.

2. To display the data of multiple objects in the work area, select all the objectsand select the load data icon.

Answer: True

To display the data of selected objects in the work area, double-select theselected object. If you have selected more than one object, select Load data.

3. You can use Switch columns/rows to display an overview of all the membersin your work area.

Answer: False

You can use Switch columns/rows to arrange the periods vertically.

4. When you start to plan, the selected data is unlocked by default .

Answer: False

When you start to plan, the selected data is locked. The other planners canuse only the other characteristic values and versions from the same InfoCubeat this time.

5. You can fix the value of a key figure in Interactive Planning only after yourun the forecast.

Answer: False

You can fix the value of a key figure in Interactive Planning before runningthe forecast. After the value is fixed, it will not change when you change theother values of this key figure at the other planning levels.

6. You select your planning books and data views in the Planning book/dataview area.

Answer: Planning book/data view



7. You use the key figure selection icon to choose which planning view keyfigures are to be displayed in the work area.

Answer: key figure selection

8. Pivot sorting allows the sequence of key figures and characteristic values tobe set in the all details view.

Answer: Pivot sorting

9. What are the various tasks that you can perform by right-selecting on cell onthe top left of the planning table?

Answer: When you right-select the cell on the top left of the planning table,you can switch columns with rows, synchronize the table and graphic,change units of measurement, and perform pivot sorting.

10. What are the main purposes for which you use notes?

Answer: You can use notes to explain the reasons for an occurrence andnavigate between levels.

11. What are the two prerequisites for fixing?

Answer: The two prerequisites for fixing are: You have created an APO keyfigure in the Administrator Workbench and assigned it a fixed key figure.In releases prior to 4.0, if you want to fix the values at aggregated levels, youmust define an aggregate for this level in your planning object structure.

12. What are the planning prerequisites for Collaborative Planning?

Answer: The planning prerequisites for collaborative planning are: Youhave assigned a planning book and authorizations to the user.You have assigned selection variants to the user.You have configured the planning table header information for the user,if drill-downs are required.


Unit 3Forecasting

Unit OverviewThis unit will help you understand the concept of forecast profiles with controlparameters and forecast errors. Next, you will learn to describe the differencesbetween the various forecasting methods and models for univariate forecasting,causal analysis, and composite forecasting. Finally, you will be able to create yourown forecast profiles and execute forecasts in the SCM system.


� Explain the forecasting process flow� Create a master forecast profile� Create a univariate forecast profile� Use forecast profiles for forecasting� Use univariate forecasting models� Use exponential smoothing for forecasting� Use automatic model selection� Use outlier correction for performing automatic correction in historical data� Use the Workday adjustment function� Choose the forecast errors to be calculated� Explain automatic aggregation of historical data� Assign forecast profiles to products� Use forecast comparison to determine the best forecast model� Explain Multiple Linear Regression to create forecasts� Use composite forecasting to execute a forecast� Use Composite forecasting to pick the best forecast model based on an error

measure.� Explain how Demand Planning in SAP SCM might support a consensus

based forecast process.� Create a forecast alert profile� Create an overall alert profile


Unit 3: Forecasting SCM220

� Create a diagnosis group� Assign the diagnosis group to your forecast profile� Use the Alert Monitor to identify potential problems in the forecast

Unit ContentsLesson: Executing a Univariate Forecast.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Exercise 7: Interactive Forecasting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115Lesson: Determining the Best Forecast Method.. .. . . . . . . . . . . . . . . . . . . . . . . . .121

Exercise 8: Determining the Best Forecast Method .. .. . . . . . . . . . . . . . . .127Lesson: Causal Analysis - Multiple Linear Regression .. . . . . . . . . . . . . . . . . . .130

Procedure: Demonstration MLR Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137Lesson: Composite Forecast.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139

Exercise 9: Composite Forecasting.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143Lesson: Consensus Based Forecasting (Optional) . . . . . . . . . . . . . . . . . . . . . . . .147Lesson: Forecast Alert Profile (Optional) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150

Exercise 10: Forecast Alert Profile (Optional) .. . . . . . . . . . . . . . . . . . . . . . . . .153


SCM220 Lesson: Executing a Univariate Forecast

Lesson: Executing a Univariate Forecast

Lesson OverviewIn this lesson, you will learn to create forecast profiles for demand forecasting.You will also learn about different forecasting tools and analyzing the forecast.


� Explain the forecasting process flow� Create a master forecast profile� Create a univariate forecast profile� Use forecast profiles for forecasting� Use univariate forecasting models� Use exponential smoothing for forecasting� Use automatic model selection� Use outlier correction for performing automatic correction in historical data� Use the Workday adjustment function� Choose the forecast errors to be calculated

Business ExampleThe Precision Pump company uses SAP SCM's Demand Planning to execute theirstatistical forecasts. SAP SCM Demand Planning offers a "toolbox" of practicaland proven forecasting methods. The planner can then choose the best method fora specific demand type.

The Forecasting ProcessForecasting is a tool for predicting future sales quantities or values. The systemreads the historical data and calculates the corresponding values that it proposes asthe future data. SAP SCM uses the internal SAP BW to import the historical datarequired in demand planning for the forecast into the SCM system.

SAP SCM is built on top of the SAP BW, and they two are fully integrated. Youdo not have the option to install the internal SAP BW on a separate server. YourSAP SCM integration with SAP BW is release dependent:



Figure 33: The Forecasting Process Flow

During the statistical caluclation phase of your process, you can create statisticalforecasts for any key figure, such as sales revenue, in any version. The forecastcan be calculated using actual data or corrected historical data.

The corrected forecast key figure if you use the workday adjustment function. Thecorrected forecast can only be used for univariate forecast models. Normally, youmake manual corrections to the statistical forecast in your own key figure.

If you do not have any historical data for a product, such as a new product, you canbase your forecast on the actual data of a similar product. To do this, you define alike profile. If you want to correct your past and future data, you must define thekey figures that you want to contain the corrected history and corrected forecast.You must also include rows for the key figures in your planning book.

The Master Forecast ProfileDuring the intial phase of you Demand Planning implementation, your companywill have to create profiles that will specify the necessary parameters to controlthe forecast in Demand Planning. The number of profiles will depend upon thelevel of aggregation in which you will forecast, as well as how many differentmodels will be utilized to accurately predict demand.



Figure 34: Master Forecast Profile

Master profiles are assigned to planning areas. The planner defines a number ofdifferent master forecast profiles interactively based on historical data showingconstant, trend or seasonal patterns. If you also want to forecast different keyfigures, you need several master profiles for each of the key figures. The masterprofile will contain:

� The period indicator defines the time buckets profile for the forecast. Thisperiod indicator must be a time characteristic that has actual data.

� Life cycle planning indicators: This is relevant for lifecycle planning andlike modeling.

� Forecast horizon: This includes the start and end dates of the time periodfor which you want to create the forecast. Enter a start date with either anend date or the number of periods. If you do not enter a start date, you mustenter the number of periods. The system then uses the current date as thestart of the planning horizon.

� History Horizon: This includes the start and end dates of the past period,the actual data of which is to be used to create the forecast.

� Statistical forecast profiles: You assign an univariate forecast profile, amultiple linear regression (MLR) profile, and a composite profile to themaster forecast profile.



The Univariate Forecast Profile

Figure 35: Statistical Forecasting Tools

The product spectrum of a company includes a variety of products in differentstages of their lifecycle, each with different types of demands. There is no suchthing as a universal forecasting model that creates 100 percent accurate statisticalforecasts for both mature slow-moving products and new products. Approachesthat attempt to cover the majority of such demand types are very complex andtend to be a "black box" for the planner. SAP SCM Demand Planning offersa "toolbox" of practical and proven forecasting methods. The planner can thenchoose the best method for a specific demand type.

Univariate forecasting models are models that investigate historical data accordingto constant, trend, and seasonal patterns, and issue forecast errors accordingly.

Causal analysis is based on causal factors, such as prices, budgets, and campaigns.The system uses MLR to calculate the influence of causal factors on past sales.This enables you to analyze the success of specific actions. The calculatedconnection between causal factors and past sales is then used as a basis formodeling future actions.

Composite Forecasting is used to combine multiple forecasts into one finalforecast.



Figure 36: Univariate Forecasting Models

Univariate models are often called time series models.

The time series models develop forecasts by assessing the patterns and trendsof past sales. As a result, the key determinant in the selection of a time seriesmodel is the pattern of previous sales data. The general assumption is that futuresales will mimic past sales. Past sales patterns are identified and reproduced inthe forecast. After the pattern is identified, the forecaster can select the timeseries model that is best suited to that particular pattern. For example, if pastsales have had seasonal influences, the Winters' classical decomposition method,which compensates for seasonality should be used. For example, if the sales areconsistently high in October and April, the classical decomposition method isappropriate for the purpose. If past sales have small fluctuations and no majorpattern or trend, then a smoothing model may be appropriate, such as the movingaverage model or the exponential constant model.

The feature that is common to all the time series methods is that they areendogenous. This means that a time series model only considers the pattern ofprevious actual sales or a series of sales over a certain period of time. If thepatterns can be identified and projected into the future, they can be used to create aforecast. Time series models are the most commonly used forecasting methods.



Figure 37: Automatic Model Selection

You can manually assign a model to the profile by entering the model number inthe univariate profile. You can also use different methods of automatic modelassignment. For some of these methods, mathematical tests are used to determinethe nest model or to minimize the error.

Automatic model selection: You can allow the system to select the most suitableforecast model. To select the most appropriate model, the system analyzeshistorical data. If the system cannot detect any clear time series patterns in thehistorical data, it automatically selects the constant model.

Procedure 1: If you want the system to select the forecast model, you can choosebetween various statistical tests and test combinations to determine the model. Ifyou choose procedure 1, you have to set a forecast strategy between 50 and 55in the univariate forecast profile. The historical data governs the strategy youchoose and the test made by the system.

In the trend test, the system performs a regression analysis of the historical valuesand checks if there is a significant trend pattern.

In the seasonal test, the system clears the historical values of any possible trendsand then performs an autocorrelation test.

Procedure 2: The system calculates the models to be tested using variouscombinations of alpha, beta, and gamma. As of SCM 4.1, you can set up theincrements and the variation area of the smoothing factors. Following that, thesystem selects the model that has the least error measure of your choice. In thebackground planning run it can generate clear forecast profiles with an assignmentto the selection. Procedure 2 is more precise than procedure 1, but it takes moretime. If you want to use procedure 2, set forecast strategy, 56, in the time series



forecast profile (univariate profile). With this procedure, you can, for example,have the assignments and forecast settings calculated anew every six months. Inthe meantime, you can use these generated profiles in a high-performance way.

Note: In release 4.0, the follow changes have been made to forecaststrategy 56:

� the Error Measure field has been added to the model parametersof the univariate forecast profile if automatic model selection 2is selected. This allows a (customer-specific) error measure to beselected for choosing the best model.

� In release 4.0, The Variation Length field has been added to themodel parameters of the univariate forecast profile if automaticmodel selection 2 is selected. This test considers the specified lengthand the variation.

� A sporadic history test has been added. This test assigns the Crostonmethod if the ratio of historical periods with a 0 demand > 66%.

� A test for white noise has been added. This test assigns a constantmethod

You can also integrate own procedures in SCM-DP with user exist APOPR001using function module EXIT_/SAPAPO/SAPLMCPR_001. For this, you can setup strategy 99 in the forecast profile.

Exponential Smoothing

Figure 38: Forecasting Using Exponential Smoothing



The system uses the alpha factor to smooth the basic value, the beta value tosmooth the trend value, and the gamma value to smooth the seasonal value. Thesmoothing factors give a higher weighting to the more recent historical valuesthan to the less recent ones, which means that the more recent values have a largerinfluence on the forecast.

Constant models determine the basic value of future sales data, trend modelsdetermine the basic and trend values, seasonal models determine the basic andseasonal values, and trend and seasonal models determine the basic, trend, andseasonal values.

The formula in the above graphic is used for exponential smoothing of the basicvalue using the alpha factor. The formula includes:

B(t): The basic value for the current period, t.

B(t-1) is the basic value from the previous period, t-1.

V(t) is the actual requirement, (version 000), from period, t.

The ex-post forecast uses the smoothing factors from historical data to determinethe basic, trend, and seasonal values. If the ex-post forecast is accurate inpredicting the historical data, the forecast error will be small.

Figure 39: Exponential Smoothing

The smoothing factor governs a forecast's reaction time to a change in the pattern.If you choose 0 for the alpha value, the new average equals the old one. In thiscase, the basic value calculated previously does not change. This means that theforecast does not react to the current data. If you choose 1 for the alpha value, thenew average equals the last value in the time series.

The most common values for alpha are between 0.1 and 0.5.

Example: An Alpha value of 0.5 weights historical values, as follows:



First historical value: 50%, second historical value: 25%

Third historical value: 12.5%, and fourth historical value: 6.25%

The default alpha factor is 0.3, beta is 0.3, and gamma is 0.3.

Several profiles are available in order to manipulate the weighting put on history.In the univariant profile, users can use a weighting profile. This profile containsweighting factors, in the form of percentages, for some or all of the historicalvalues on which the forecast is based. Otherwise, the field will remain blank.

The trend dampening profile allows you to account for a decrease in trend as themarket reaches maturiy. The system cannot predict such a decrease on the basis ofhistorical data. This profile specifies, per period, the percentage by which you wantthe trend to be dampened. If you are using a trend or a seasonal trend model andwish the forecasted trend pattern to be dampened, enter a trend dampening profile

The selected time series profile provides a set of selected historical values that areapplied to the historical input key figure. The markers refer to historical valuesthat should be taken into account in outlier correction. They are stored in thedatabase as a time series. If the marked values lie outside the tolerance lane, thesystem corrects them before carrying out the forecast.

Correcting the Forecast

Figure 40: Adjusting Actual Data

To generate more exact forecasts, you must remove the impact of one-timepromotions or delivery problems from the actual data. The adjustments arenormally made in the corrected history key figure instead of the original key figure.



During each forecast run, a corrected history can be created by modifying theoriginal historical values read from the InfoCube/liveCache. These changes maybe brought about, for example, by outlier correction, workday corrections, phasein/out profiles and the like. This corrected history can then be used for the actualforecast. The data from the corrected history may be saved if you have definedwhich key figure for the forecast key figure in the planning area is the correctedhistory and if this key figure exists in the planning book. You can access thisdata for the following forecasts.

The normal process of a forecast is as such: read historical data create correctedhistory execute forecast with the corrected history. You can set the indicator 'Readcorrected data history from plng version'. This means that the system reads thehistorical values from the key figure which is defined as the corrected history ofthe forecast key figure. These historical values can be seen in interactive planningin the additional row Original corrected history. You can continue to change andlater store these when creating the new corrected history.

In the forecast profile, you can define whether you want the forecast to be basedon original actual data or corrected actual data.

Automatic adjustment of corrected history has the following uses:

� If no forecasts have been made for a long time, you can use automaticadjustment of corrected history key figure.

� For periods where there is no corrected history in the database, the systemuses the original history. It is July 1 and you have not created any forecastsover the past two months. The corrected history from the previous twomonths contains manual corrections that you do not want to lose. For thisreason, your corrected history does not contain values for May or June. Ifthe system were to base the forecast on the historical values, the forecastresults would be inaccurate because of the zero values from May and June.To prevent such inaccuracies, you set the automatic adjustment of correctedhistory key figure. The system then uses the original historical values forMay and June.



Figure 41: Automatic Outlier Correction

You can select outlier correction in the univariate forecast profile to automaticallycorrect outliers in the historical data on which the forecast is based. If you have setthe outlier correction '' indicator, then the system first calculates an expost forecastwith the selected forecasting technique. In the next step, the system calculates atolerance threshold T where T is calculated as T = sigma * MAD. Here, the finalMAD is always used for all historical values V. This MAD is the MAD from thelast historical period. All historical values V, which violate the condition (expost -T) < V < (expost +T) are set to the value of the expost forecast. Then the systemcarries out the final expost forecast + forecast with the corrected historical values.The values which were determined in the process for the expost forecast couldof course deviate from the original values. This explains a deviation betweenthe values corrected by the outlier correction and those displayed by the expostforecast.

The sigma factor defines the width of the tolerance range for automatic outliercorrection. It defines the permissible number of standard deviations. A smallsigma factor means a low tolerance, and a large number of outliers that aredetected and corrected. The default sigma factor is 1.25. If you set the sigmafactor yourself, SAP recommends that you set it to between 0.6 and 2.



Figure 42: Workday Adjustment

You can use this function to account for a varying number of workdays in a month.

The system bases the forecast on an average number of workdays during a forecastperiod. You specify these in the Average number of days field in the univariateforecast profile.

In the example in the above graphic, the forecast period is Month and the assumednumber of workdays in each month is 20. The forecast is run, as follows:

1. The system corrects the historical data using the following formula:

Corrected history = (original history/actual workdays) * the average numberof workdays.

2. The system calculates the forecast using the corrected historical data.3. The system adjusts the initial uncorrected forecast results based on the

following formula:

Corrected forecast = (uncorrected forecast/average workdays) * actualworkdays.

The number of workdays in the period is determined by the factory calendar in theplanning area, via the storage bucket profile.

The results of the planning data correction appear in the corrected forecast keyfigure.

You can only use the corrected forecast key figure for univariate forecasting.




You can use various automatic methods to adjust the actual data. The methods canbe activated from the forecast profile.

The methods are executed in the sequence shown in the above graphic.

The phase-in and phase-out profiles for lifecycle planning control the introductionof new products and the discontinuation of old products, respectively.

Workday adjustment ensures that higher values are forecast for periods that havemany workdays. Historical data must be standardized for this.

With past promotions, you can extract past actions, such as special offers, from theactual data so they are not included in the forecast. You can use outlier correctionto automatically correct the actual data that is outside the scope of the tolerancerange.

You can use outlier correction to automatically correct actual data that is outsideof the tolerance range.

You can also adjust the actual data manually.

You can also assign the following elements to a key figure that is to be forecast:

� A key figure to store the corrected history� A key figure to store the corrected forecast� A key figure to store ex-post forecasts� A key figure to store ex-post forecasts for the MLR



Standard Forecast Errors

� MAD (mean absolute deviation)� ET (error total (total forecast error))� MAPE (mean absolute percentage error)� MSE (mean square error)� RMSE (root of the mean square error)� MPE (mean percentage error)

As of release 4.0, a BadI (/SAPAPO/SDP_FCSTERR) is now available withwhich you can calculate your own measure of error.

If you run the forecast in Interactive Planning, the univariate measures of fit aredisplayed on the Forecast errors tab page. For example, if you run the forecastin the user-defined or forecast view, the univariate measures of fit appear in theuser-defined or forecast view.

Absolute errors prevent positive errors greater than zero from being canceled bynegative errors less than zero.

Note: For more information about univariate forecast error formulas, seethe application documentation for SAP SCM Demand Planning.

Figure 44: Summary of the Univariate Forecast Profile

You can make changes to the univariate profile configuration in the interactiveplanning forecast view. For example, you can modify the settings for forecastmodel, planning horizons, forecast parameters, and forecast. To save the newforecast settings in a profile with a unique name, select Settings→ Forecast



profile. Set the Create unique forecast profiles when saving plan indicator. A newforecast profile is created for the current selection variant when you save theDemand Planning data. The next time you run the forecast for the same selectionvariant, the system uses this profile by default. The advantage of working withuniquely named profiles is that if you change the forecast configuration in someway, the system retains the new settings without overwriting the original forecastprofile. For example, if you switch from a seasonal to a trend model, the systemretains the new settings without overwriting the original forecast profile. If you donot set the Create unique forecast profiles when saving plan indicator, the originalforecast profile is overwritten with the new settings when you save the interactiveplanning data. To see which forecast profiles were previously used for whichselection variants, select Goto→ Assignment in the master forecast profile. Thisname, GUID, is generated automatically and cannot be altered.

You use the promotion key figure to create historical value markings to correct theoutlier and use past promotions to adjust the actual data.

You can define upper limits for forecast errors in the diagnosis group. If thecalculated forecast errors exceed the threshold values, alerts are generated and theplanner can review this characteristic combination one more time.

User Parameters in ForecastingThe following user parameters can be set to influence the forecast:

� Parameter /SAPAPO/FCST_GUIDS: If you set this parameter to X, theforecast always uses generated forecast profiles to a selection when savingthe assignment of forecast profiles and does not change the used originalforecast profile.

� Parameter /SAPAPO/PRPFL_NOTSAV: If you set this parameter to X, theforecast does not store any assignments of forecast profiles to selections. Ifparameter /sapapo/fcst_guids is also set to X nothing is stored, parameter/sapapo/prpfl_notsav has precedence.

� Parameter /SAPAPO/FCST_ALDE: If this parameter is set to X, theinteractive forecast deletes all old forecast alerts for the combinationplanning folder/data view before every new forecast run. If the parameter isset to S, the alerts for the current selection are deleted (see note #560514)).

� Parameter /SAPAPO/FCST_LIKE: If you set this parameter to X, onlyreference products are allowed or proposed for the definition of LIKEprofiles that exist as characteristic values in the current planning area. Thissetting is mandatory if you do not use the standard InfoObject '9AMATNR'for products in a planning area. The parameter is available as of ServicePackage 6. It is superfluous as of SCM 4.0.



� Parameter /SAPAPO/FCST_NK1: A number of decimal places can beassigned to the individual lines of the univariate forecast view by enteringnumbers as 1234. In the above example, the first line has a decimal place,the second line has two decimal places and so on. The parameter is obsoleteas of SCM 4.1.

� Parameter /SAPAPO/FCST_NK2: A number of decimal places can beassigned to the individual lines of the view for Multiple Linear Regressionby entering numbers as 1234. In the above example, the first line has adecimal place, the second line has two decimal places and so on. In theabove example, one decimal point is assigned to the first line, two decimalpoints to the second line and so on. The parameter becomes superfluouswith SCM 4.1.

� Parameter /SAPAPO/FCST_NK3: A number of decimal places can beassigned to the individual lines of the combined forecast view by enteringnumbers as 1234. In the above example, the first line has a decimal place,the second line has two decimal places and so on. The parameter is obsoleteas of SCM 4.1

� Parameter /SAPAPO/FCST2: If this parameter is set to 'X', the customizingsettings of the time axis are taken into account when the trend curve isdisplayed in the graphic forecast. This also allows you to display historicaldata. If the parameter is not set, then the standard setting is used fordisplaying the graphic forecast, that is, the time axis of the graphic is scaledaccording to the trend curve. This is implemented in note 521721 andcontained in Support Package 21 for APO 3.0 and Support Package 7 forAPO 3.1. The parameter is obsolete as of Release SCM 4.0.

� Parameter /SAPAPO/FCST3: If this parameter is set to 'X', the forecastprofile is not saved in the interactive planning when you assign the forecastprofile for a selection, that is, any interactively changed parameters are notsaved. Refer to note 623045. New parameters for SCM 4.0:

� Parameter /SAPAPO/FCST_GREEN: You can use this parameterto determine the behavior of the system when you return from theforecast view with the �green arrow�: X ==> no save during return,P ==> confirmation prompt on whether you want to save. Parameter/SAPAPO/PRPFL_NOTSA2: If this parameter is set to 'X', forecast profilesare not saved for the user. You can use this parameter, for example, to notsave any parameter changes when assigning forecast profiles for selection.Note that the system no longer saves generated profiles (GUID) if theparameter is activated. Avoid setting parameter /SAPAPO/FCST_GUIDStogether with this parameter.



Exercise 7: Interactive Forecasting

Exercise ObjectivesAfter completing this exercise, you will be able to:� Implement interactive forecasting for setting and checking parameters in the

forecast profile

Business ExampleIn order to be able to set up interactive forecasting, the demand planner forPrecision Pump has to know the parameters in the forecast profile.

Task:Interactive forecasting is used mostly for setting and checking parameters in theforecast profile. For example, you can use it to create different forecast profilesfor A, B, and C products. Usually, mass processing is used for assigning profilesto characteristic value combinations and for periodic forecasting.

1. In order to prepare for the forecast we will need to define the specialfunctions for the forecast key figures. Assign the FORECAST key figure tothe forecast and the CORRHIST key figure to the corrected history.

2. Create a forecast profile for your planning area. Enter the followingparameters:

Planning area DPPA##Master prfl. MASTERDescription Profile for product P-102Forecast key figure FORECASTPeriod indicator MForecast horizon periods 12History horizon periods 24

3. Create a Univariate profile using the parameters below and assign it to yourMASTER forecast profile.

Profile UNI##Description Statistical forecast for P-102Key figure INVQTYVersion 000




Forecast strategy 11Alpha, Beta, Gamma 0.3Sigma 1Periods 12Outlier correction NoneForecast errors Select allPromotion key figure 9APROM1

4. Go to Interactive Planning, load the data for the product, P-102, into theplanning table, and run a univariate forecast. Switch on the graphic andanalyze the historical data. Execute multiple forecasts using differentmodels and smoothing parameters. Each time, check the forecast errors,especially the mean percentage deviation (MAD), and the forecast messages.In addition, analyze the forecast results in graphical form. Switch on theoutlier correction via the ex-post method and check whether deviations haveoccurred between the original history and the corrected history. The outliercorrection depends on the forecast model.

Choose different forecast models and execute them to see which one givesyou the lowest forecast errors. Enter 20 in the average number of days tosee if this improves the forecast. Exit back to the Interactive Planning Tablewhen finished.



Solution 7: Interactive ForecastingTask:Interactive forecasting is used mostly for setting and checking parameters in theforecast profile. For example, you can use it to create different forecast profilesfor A, B, and C products. Usually, mass processing is used for assigning profilesto characteristic value combinations and for periodic forecasting.


a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Environment→ Administration of Demand Planningand Supply Network Planning.

b) Select the planning area view (default), right-click on your Planningarea DPPA## and choose Display.

c) Use the menu path: Extras→ Forecast Settings

d) Assign FORECAST/ Forecast as the Forecast Key Figure and assignCORRHIST/ Corrected History as the Corrected History Key Figure.

e) Click on Adopt.

f) Now to complete the assignment click the Adopt icon in the lower

left of the dialog box and Save.


Planning area DPPA##Master prfl. MASTERDescription Profile for product P-102Forecast key figure FORECAST




Period indicator MForecast horizon periods 12History horizon periods 24

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Environment→ Maintain Forecast Profiles.

b) Create a master forecast profile by entering the above parameters.

c) Stay in theMaintain Forecast Profile transaction for the next exercise.


Profile UNI##Description Statistical forecast for P-102Key figure INVQTYVersion 000Forecast strategy 11Alpha, Beta, Gamma 0.3Sigma 1Periods 12Outlier correction NoneForecast errors Select allPromotion key figure 9APROM1

a) Click on the Univariate profile tab page and enter the above parametersname, description, key figure and version.

b) Click the Show Proposal icon on the tool bar. Make sure the proposedentries match the parameters in the above table.

c) Save the single profile and assign it to your master profile .

d) Change back to the Master profile and there check your entry for yourunivariate forecast profile UNI## and save your master profile.

4. Go to Interactive Planning, load the data for the product, P-102, into theplanning table, and run a univariate forecast. Switch on the graphic andanalyze the historical data. Execute multiple forecasts using differentmodels and smoothing parameters. Each time, check the forecast errors,especially the mean percentage deviation (MAD), and the forecast messages.In addition, analyze the forecast results in graphical form. Switch on the




outlier correction via the ex-post method and check whether deviations haveoccurred between the original history and the corrected history. The outliercorrection depends on the forecast model.

Choose different forecast models and execute them to see which one givesyou the lowest forecast errors. Enter 20 in the average number of days tosee if this improves the forecast. Exit back to the Interactive Planning Tablewhen finished.

a) Follow the path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Interactive Demand Planning.

b) Double-click the DEMAND PLANNING data view for yourDPBOOK## planning book.

c) Load the data for P-102 by double-clicking your selection IDPRODUCT## and double-clicking the row P-102.

d) Start the forecast by clicking the Univariate Forecast icon on thetool bar. Answer No to saving the data since we have not made anychanges yet. The forecast is then executed automatically.

e) Notice that on the upper part of the screen, you can see the STAT iconfor executing the forecast, the Forecast comparison icon, and theShow/hide table icon that switches the graphic on or off.

f) At the lower section of the screen, you can change the forecastparameters.

g) To automatically assign the selection to the profile, go to Settings→Forecast profile and select Save assignment of selection for forecastprofile. By saving in the forecast view, the planning data, the profile,and the assignment are all saved.

h) Execute the forecast several different times by choosing differentmodels and checking the forecast errors. Click on the Settings tab andswitch the outlier correction to the ex-post method.

i) Click on the Settings tab and enter 20 for the average number of daysin the forecast period. Execute the forecast to see if that improvesthe forecast.

j) Clicking the green back arrow automatically saves the current forecastand you return to the Interactive Planning Table. To close the forecastwithout saving, you have to use the red cross (cancel).

Caution: If you return to the planning table using the greenarrow, the forecast results are saved automatically. Youcan switch of this surprising response with user parameter/SAPAPO/FCST_GREEN, see note 350065.



Lesson Summary

You should now be able to:� Explain the forecasting process flow� Create a master forecast profile� Create a univariate forecast profile� Use forecast profiles for forecasting� Use univariate forecasting models� Use exponential smoothing for forecasting� Use automatic model selection� Use outlier correction for performing automatic correction in historical data� Use the Workday adjustment function� Choose the forecast errors to be calculated

Related Information

� 441385: Consulting: Manual changes in the forecast� 389760: Consulting: Decimal places� 388260: APO Consulting forecast: Automatic model selection� 375965: APO Consulting: Alerts in Forecasting� 350065: Consulting: User Parameters in the Forecasting Environment


SCM220 Lesson: Determining the Best Forecast Method

Lesson: Determining the Best Forecast Method

Lesson OverviewIn this lesson, you will learn how to use the tools to evaluate forecast methods tohelp determine the best method for each group of products.


� Explain automatic aggregation of historical data� Assign forecast profiles to products� Use forecast comparison to determine the best forecast model

Business ExampleEach demand planner needs to be able to understand the forecasting process inSAP SCM and know the tools which help determine the best method for creatingan accurate forecast.

Aggregation and Disaggregation of data in theForecast Process

Figure 45: Automatic Aggregation of Historical Data

If you execute the forecast at a high level, the historical data is automaticallyaggregated up to this level. Because of this, if you run your forecast at a higherlevel and then disaggregate the results at the detailed level, you get different



results from those produced by a forecast at the detailed level. When you forecastat the product group level, for example, the different seasonal fluctuations of theproducts involved become apparent. If you forecast at the most detailed level,your forecast may seem more exact because you do not have to disaggregate.However it could be that strongly fluctuating historical data do not allow a stableforecast. If you run the forecast in the background, you define the aggregationlevel in the mass processing job.

When designing your planning process, you have to consider which aggregationlevel is most useful for the forecast. You must decide, for example, whether theforecast should be created for individual products or for product families.

Figure 46: Example of a Univariate Forecasting Model

Part of the master data setup for Demand Planning, is identifying which forecastingmodels you are going to use for each of your products or product families. Theabove example shows the different models that a hardware wholesaler woulduse to forecast two types of light bulbs.



Figure 47: Assigning Products to Forecast Profiles

Before setting up the forecast profiles, it is imperative that selection Id's are setup for the appropriate grouping of characteristics that will match certain forecastparameters. After you have determined the aggregation level for the differentcharacteristic groups, create the sales planner forecast profile for the selection IDs.As soon as you have created the selection IDs and defined the profile, assignthe profile, then the selection IDs to the user. This �assignment process� can beapplied in mass processing as well as in interactive planning.

There are various ways to assign characteristic combinations:

1. You configure your master forecast profile interactively and assign selectionIds to it in mass processing.

2. You assign the characteristic combinations interactively, store them in thesystem, and use them in mass processing.

3. You set the system so that the system creates a forecast profile with a uniquename when you save the Demand Planning data for a selection ID. Thisapproach has the following advantages:

� The next time you work with this selection ID, the system automaticallyuses the uniquely named forecast profile to create the forecast bydefault.

� If you make changes to the forecast configuration, such as switch froma seasonal model to a seasonal trend model, the system retains the newsettings without overwriting the original forecast profile. If you do notset this indicator, the original forecast profile is overwritten by the newsettings when you save the interactive planning data.



Figure 48: Forecast Comparison

Every time you run a forecast interactively, it is saved in an internal table as theactive forecast version. Older forecast versions within this planning version canalso be stored in the table. Up to 10 forecast versions can be saved using thedefault setting. You can change this default. The maximum possible number offorecast versions is 999. However, SAP recommends that you keep the number offorecast versions to a minimum. Only in exceptional circumstances should youhave more than 100 forecast versions.

The forecast comparison screen consists of three tab pages:

� Forecast Error - Here you can see the various error estimates that thesystem calculates during forecasting. You can sort the different versionsaccording to any one of the measures of error. When you have found forecastsettings that produce the optimum results, you can generate a forecast profilefrom these settings (only available for univariate forecasting).

� Parameters - Here you can see the parameters that each version uses forunivariate forecasting (does not apply to MLR) and any lifecycle profilesused for the selection (does not apply if aggregated lifecycle planning wasused).

� Changes - Here you see more general information, such as the version(planning version or forecast version � see below), the planner who createdthe version, the date and time of the forecast, the profile used and its type(univariate, MLR, or composite)

To access the Forecast comparison , in interactive demand planning, chooseGoto→ Forecast comparison. In general the forecast comparison function isintended for use in interactive planning. However, if you wish to store the errorvalues from background planning, then mplement the Business Add-In (BadI)/SAPAPO/SDP_FCST4.



It is also possible to let the system run an automatic forecast comparison. To dothis, you have the following alternatives:

� Define alternative forecast profiles and use Composite Forecast to let thesystem find out which profile has the smallest user-defined forecast error inthe background.

� Use Forecasting Strategy 56 to limit the allowed value ranges for alpha,beta, and gamma and set the forecasting error. In the background, the systemcan determine the best parameter, create a profile for it, and assign the profileto the selection. Run this procedure periodically, and meanwhile you canforecast using the optimized profiles.

� Define your own automatic forecast comparison using macros





Exercise 8: Determining the Best ForecastMethod

Exercise ObjectivesAfter completing this exercise, you will be able to:� Use the forecast comparison tool� Sort forecast versions by a specific error measure to determine the best

forecast method� Create a new forecast profile based on the best method found

Business ExamplePrecision Pump Company wants to make sure the forecast method they are usingis the best one for that group of products and results in the lowest MAPE. Theywill use the forecast comparison tool in interactive planning to determine the bestforecast method and then execute that forecast in mass processing.

Task: Statistical Model ComparisonIn the last lesson you executed the forecast several times with different modelsand parameters. Use the forecast comparison tool to find the forecast run whichyielded the lowest forecast error and save it as a new profile.

1. In the last lesson you executed the forecast several times using differentmodels and parameters. Use forecast comparison to sort the forecast runsby MAPE. Select the run which yielded the lowest MAPE and save it as anew forecast profile called BEST##.



Solution 8: Determining the Best ForecastMethodTask: Statistical Model ComparisonIn the last lesson you executed the forecast several times with different modelsand parameters. Use the forecast comparison tool to find the forecast run whichyielded the lowest forecast error and save it as a new profile.

1. In the last lesson you executed the forecast several times using differentmodels and parameters. Use forecast comparison to sort the forecast runsby MAPE. Select the run which yielded the lowest MAPE and save it as anew forecast profile called BEST##.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Interactive Demand Planning. If required,double-select the DEMAND PLANNING data view for theDPBOOK## planning book with a double-click.

b) Load the data for P-102 by double-selecting your selection IDPRODUCT## and double-selecting the row P-102.

c) Start the forecast by selecting Univariate Forecast on the tool bar.Answer NO to saving the data since we have not made any changesyet. The forecast is then executed automatically.

d) Select Forecast Comparison on the tool bar or use the menu pathGoto→ Forecast Profile.

e) On the tool bar above the table to the left, select Forecast Error: Activeversn. This should produce a list of the last several forecast versions(10 is the default) with the error measures for each.

f) Choose MAPE (mean absolute percentage error). This willsort the list by the MAPE error measure and the version with the lowestMAPE should now be at the top. You can also look at the other errormeasures for that forecast version.

g) Select the first row in the table by selecting the button to the left of the

row. Now select Create Profile on the tool bar. Enter BEST## as

the profile name and select Adopt. You should get a message in thestatus bar indicating the profile was saved successfully.

Note: Additionaly, you can select the Parameters tab and seethe forecast method and parameter settings for each forecastversion. The Changes tab will show administration data of thelast changes that took place.



Lesson Summary

You should now be able to:� Explain automatic aggregation of historical data� Assign forecast profiles to products� Use forecast comparison to determine the best forecast model



Lesson: Causal Analysis - Multiple Linear Regression

Lesson OverviewIn this lesson, you will learn to use Multiple Linear Regression to execute aforecast.


� Explain Multiple Linear Regression to create forecasts

Business ExampleAs the demand planner, you need to consider other methods of forecasting thatmight be more effective in certain situations. Causal analysis can be used insituations where you have independent variables, such as price, that have someinfluence on a dependent variable, such as sales quantity. You want to use thisfunctional context so that you can set the system to make sales react in a certainway when you change the price for the future.

Causal AnalysisMultiple Linear Regression

� You use MLR to determine how a dependent variable, such as sales, isconnected with independent variables called casual variables, such as prices,advertising, and seasonal factors.

� MLR uses historical data as a basis for calculating the regression coefficients(beta) for causal analysis.

� The demand planner has the task to identify and quantify the most importantindependent variables and to model the causal connection.


SCM220 Lesson: Causal Analysis - Multiple Linear Regression

MLR Model Analysis

� Linear and non-linear trends� Seasonal patterns� Dummy variables

� R2� Adjusted R2� Durbin-Watson� Durbin-h� t-test� Mean elasticity

Causal analysis is based on causal factors, such as prices, budgets, and campaigns.The system uses MLR to calculate the influence of causal factors on past sales. Inthis way, the system allows you to analyze the success of specific actions. Thecalculated connection between causal factors and past sales is then used as a basisfor modeling future actions.

MLR is a form of causal analysis, which enables you to analyze the relationshipbetween a single dependent variable and several independent variables. You usethe independent variables, the values of which are known to you, to predict thesingle dependent value, which is the value you want to forecast. Each predictorvariable, (Xi), is weighted. The weights, (bn), denote their relative contribution tothe overall weighting.

When you create the forecast in Demand Planning using an MLR model, thesystem calculates several statistics to measure the forecast accuracy (see above). Ifrequired, you can then adjust the model accordingly.

Note: For more information about statistics, see the SAP SCM glossary.



Figure 49: Causal Analysis: Advertising Budget

In the above example, the Unit sales key figure is the dependent variable. Theadvertising budget is one of the independent variables. The MLR model calculatesthe influence of the advertising budget on the unit sales in the past. The model usesthe calculated coefficient to incorporate the effect of the planned advertisement inthe unit sales forecast.

In MLR, coefficients or weightings of the independent or explanatory variablesdescribe the relative importance of the variables. The coefficients in a causalmodel indicate how value changes in each of the independent variables, (Xs),influence the value of the dependent variables, (Y). For example, you candetermine the effect on the sales quantity when the advertising budget is decreasedby $1000, if all the other variables remain constant.

Elasticity measures how a dependent variable is affected if the explanatoryvariable is changed by one percent. This is calculated as the percentage change inY that is the dependent variable, divided by the percentage change in X that is theexplanatory or independent variable. Elasticities tend to differ when measured atdifferent points on the regression line. The mean elasticity is the mean average ofthe elasticities at the different points.



Figure 50: Causal Analysis

In the above formula:

Y = Dependent variable

b0 = Y intercept or constant

bn = Coefficients or weights

Xi = Independent variables

A practical example of MLR:

Consumer demand for product Y = constant + price + advertising + merchandising+ distribution + free market price

SAP SCM Demand Planning uses the ordinary method of the least squaresfor MLR.

Autocorrelation occurs when the error variables of a regression model are notindependent, which is when the values of past periods in the forecast modelinfluence the values of current periods. Time series with a strong seasonal orcyclical pattern are often highly correlated. Durbin-h and Durbin-Watson areautocorrelation measures.

Correlation is an indication that independent variables behave similarly and theMLR cannot estimate the influence of individual variables. If you detect a level ofcorrelation that is unacceptable, it could mean that you need to adjust the classicMLR model, for example. The t-test is the measure of correlation.

Note: For more information, see the SAP SCM glossary



Example for point 1: If you have modeled product price and advertising budget ascausal factors, you can use causal analysis to determine the most cost-effectiveway of achieving target sales. Some of the frequently asked questions for causalanalysis are as follows:

� Is it more cost-effective to reduce the price or increase the advertisingbudget?

� How can we sell X units? What is the most cost-effective way?� How will the market react if we or our competitors increase or reduce the

price by X%?� How successful were previous promotional events?� To what extent are the sales of products such as ice creams and drinks

affected by the weather?� How will our sales be affected by changes in the economic climate?� What are the factors that determine long term sales improvement?

Causal analysis has the following data requirements:

� Actual data for all variables� Necessary actual data from the competitors� Forecasts for independent variables

Causal analysis has the following logical challenges:

� Which variables influence sales?� How do variables influence sales?� Outlier, trend, and seasonal modeling

The following statistical problems occur during causal analysis:

� Correlation� Autocorrelation

The MLR profile contains the following:

� Historical data, such as demand history - Key figure, version� Diagnosis group - Threshold values for forecast errors� Causal factors - Key figure from version such as price, time series variables,

such as marketing budget, temperature, and Easter weeks



You enter the following:

� A name and description for the MLR profile.� A key for the diagnosis group containing the upper and lower limits for MLR

errors. If the MLR errors exceed the threshold values, alerts are generatedand the planner can then review this characteristic combination once more.

� The key figure on which the forecast is to be based. This is a key figurefrom the planning area that you specified in the master forecast profile. Itdoes not have to be the key figure to which the forecast results are written.The system uses the historical values from this key figure to calculate thecoefficients in the MLR model. In the MLR equation, the key figures are thehistorical values of Y.

� The version of the historical data on which you want the forecast to be based.� You can use key figures as casual factors either from a planning area or a

time series.� Transformation: You can set a lag here. For example, if you enter -1, the

forecast value is moved one period into the future. This means it takes oneperiod for the variable to impact demand.

An independent variable has the following influences:

Coefficient

Elasticity

The following are the MLR measures of fit:

R2 A value above 0.90 means that the model is good.

Adjusted R2. If it is significantly lower than R2, you are probably missing anexplanatory variable.

The following correlation exists between the dependent variable and anindependent variable:

t-statistic (no correlation if t-test is greater than +/- 1.4)

You use the following autocorrelation methods when the past periods influencethe current periods:

Durbin-Watson

Without lagged variables: The acceptable range is between 1.5 and 2.5

Durbin-h

With lagged variables: Below 1.96 is acceptable

For a full definition of the above measures of fit, see the SCM glossary.

If you run MLR in interactive planning, you can view the MLR measures of fitby using the Switch parameters on or off button in the application toolbar in theCausal view.



If you run MLR with mass processing, you can view the MLR measures of fit bydefining alerts to show when the measures exceed certain limits. The alerts canthen be viewed in the Alert Monitor.



Demonstration MLR Profile

1. Menu Path:Advanced Planning and Optimization→ Demand Planning→Environment→Maintain Forecast Profile

2. Enter your planning area DPPA## and your master forecast profileMASTER.

3. To create an MLR profile, click the tab, enter the name MLR-##, and give adescription.

4. Select diagnostic group ICE and click Change Group to show the parameters.

5. Enter the key figure, INVQTY, and version, 000, for the source of thehistorical data.

6. Click Key Figure at the bottom and show that if you have saved key figurevalues, such as temp or price. You can use the key figures as independentvariables. We have not done that in this case so we will not choose onefrom the list.

7. Save the single profile and assign it to your master profile.

8. Demonstrate the running of MLR in interactive planning.

9. Review the results.

10. Click Switch Parameters on the toolbar to display the measures of fit anddiscuss them along with the next topic. This is not a very realistic examplebut it gives the participants an idea of how to use the tools.



Lesson Summary

You should now be able to:� Explain Multiple Linear Regression to create forecasts


SCM220 Lesson: Composite Forecast

Lesson: Composite Forecast

Lesson OverviewThis function combines forecasts from alternative forecasting methods (such astimes series, casual, and/or judgmental) for a particular brand, product family orproduct. Each forecast is typically based on the same historical data but uses adifferent technique. The underlying objective is to take advantage of the strengthsof each method to create a single "one number" forecast. Either you can averagethe forecasts giving each one equal weight, or you can weight each one differently,or you can vary the weightings of each forecast over time. By combining theforecasts, the business analyst's objective is to develop the best forecast possible.The composite forecasts of several mathematical and/or judgmental methodshave been proven to out-perform the individual forecasts of any of those methodsused to generate the composite.


� Use composite forecasting to execute a forecast� Use Composite forecasting to pick the best forecast model based on an error

measure.

Business ExampleThe Precision Pump Company wants to test several forecast models. The systemshould choose the model with the smallest MAPE. In order to do this you mustcreate a composite forecast profile.

Figure 51: Composite Forecasting



Composite forecasting combines the forecasts created independently using thedifferent forecasting methods for the same data basis or the demand history ofspecific brands, individual products, or product families. The objective is to usethe strengths of each method and create a single forecast. To do this, you eitheraverage the forecasts and give each equal weight or weight each forecast and sumthe forecasts based on the residual errors of each method.

The goal of business analyst in combining the forecasts is to develop the bestforecast possible. The composite forecasts of several mathematical and judgmentalmethods have been proven to outperform the individual forecasts of any of themethods.

Figure 52: Composite Forecast Profile



You enter:

� A name for the composite forecast profile.� A description of the composite forecast profile.� The name of a univariate profile that you want to include in the composite

forecast. You can use the Univ.Profile icon at the bottom of the dialog box tochoose the profile you want.

� The name of the MLR profile you want to include in the composite forecast.You can use the MLR profile icon at the bottom of the dialog box to choosethe profile you want.

� A percentage to specify the weighting of this profile in the compositeforecast. For example, if you have three profiles, you might enter 30, 30, and40 in this column. This weighting is not time-based.

� The name of a weighting profile. A weighting profile assigns differentweightings to different periods. You can use the Weighting Profile icon atthe bottom of the dialog box to choose or create a weighting profile. Thisentry is optional.

Note: As of release 4.0, you can choose different modes for yourcomposite forecast. You have the following choices:

� Standard Mode: forecasts are executed with specific profiles andthen the results are added, taking the weighting factors and profilesinto account.

� Method with Smallest Error composite forecast: a compositeforecast profile contains several profiles which could yield a forecastfor the given characteristic value combinations. You can set thesystem to automatically select the best profile based on one measureof error. This is particularly useful when you are choosing andoptimizing a profile for a particular forecasting task. You can alsouse a customer-defined measure of error.

An extra function is an indicator which can exclude certain forecastingmodels. If the indicator is set for a specific profile and errors occurwhen calculating the forecast results for this profile, it is not used for thecomposite forecast. This means that the proportion that was intended forthis profile is distributed amongst the other individual profiles. If errorsoccur in all profiles even though this indicator has been set for them all,the forecast terminates and an error message is issued.





Exercise 9: Composite Forecasting

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a composite forecast profile.� Use a composite forecast profile to pick the best forecast method

Business ExamplePrecision Pump Company wants the system to pick the best forecast method basedon the lowest MAPE.

Task:In order to pick the best method, we will use a composite forecast profile to selectthe best method based on the lowest MAPE.

1. Create a composite forecast profile for your planning area with the univariateprofiles UNI## and BEST##. Set the method with the smallest MAPE.Assign it to the same Master Profile as you did before called MASTER.

2. Go to Interactive Planning, load the data for the product, P-103, into theplanning table, and run a composite forecast. Display the error measureanalysis to compare the forecasts. Return to the Interactive Planning Tableand save.



Solution 9: Composite ForecastingTask:In order to pick the best method, we will use a composite forecast profile to selectthe best method based on the lowest MAPE.

1. Create a composite forecast profile for your planning area with the univariateprofiles UNI## and BEST##. Set the method with the smallest MAPE.Assign it to the same Master Profile as you did before called MASTER.


b) First choose your planning area DPPA## and master forecast profileMASTER.

c) Select on the Composite Forecast tab and enter the data from the tablebelow.

Profile COMP##Description Choose the best profile.Mode Method with smallest MAPE

d) Select Univariate Profile. Select several profilesoff the list including your UNI## and BEST## as well as several others.If you need more profiles, then create several univariate profiles fortesting and add them to the list.

e) Use Mode to set the method with the smallest MAPE.

f) Save the individual profile and assign it to your master profile .

g) Go back to the Master Profile tab page and review the entry for yourcomposite forecasting profile COMP##. Save the master profileMASTER.




2. Go to Interactive Planning, load the data for the product, P-103, into theplanning table, and run a composite forecast. Display the error measureanalysis to compare the forecasts. Return to the Interactive Planning Tableand save.


b) Double-click the DEMAND PLAN data view for the DPBOOK##planning book.

c) Load the data for P-103 by double-selecting your selection IDPRODUCT## and double-selecting the row P-103.

d) Start the forecast by selecting Composite Forecast on the tool bar.Answer No to saving the data since we have not made any changesyet. Make sure you select your master forecast profile, MASTER, towhich you assigned the composite forecast profile. The forecast is thenexecuted automatically.

e) The table now lists all of the forecast profiles you selected and showstheir resulting forecast. The one whose values match the values in theFORECAST row is the one with the lowest MAPE.

Select Error Measure Analysis on the tool bar to have theresulting error analysis of each individual forecast displayed.

f) Return to the Interactive Planning Table and save.



Lesson Summary

You should now be able to:� Use composite forecasting to execute a forecast� Use Composite forecasting to pick the best forecast model based on an error

measure.


SCM220 Lesson: Consensus Based Forecasting (Optional)

Lesson: Consensus Based Forecasting (Optional)

Lesson OverviewIn this lesson you will discuss how a consensus forecast may benefit yourorganization and how SAP SCM would support this kind of process


� Explain how Demand Planning in SAP SCM might support a consensusbased forecast process.

Business ExampleYour companies line of business in considering bring several more groups intothe process of demand planning. In order to support this requirement you need tobetter understand how it works and what SAP SCM would need to support it.

Consensus based Forecasting

Figure 53: Consensus-Based Forecasting

A consensus-based sales and operations planning process is one in which youview forecasts from various departments with different business goals, such assales, marketing, logistics, and finance, and integrate them into a single consensusforecast. This drives the business planning process.



SAP SCM Demand Planning supports participants in consensus meetings, suchas Sales and Operations Planning, by providing information that enables them tocompare forecasts and identify, discuss, and solve problem areas that affect theirbusiness decisions. The goal is to make changes that are agreed by all parties. Theresult is a consensus-based forecast.

Planning books are based on the data and planning tools required by users fortheir roles in the organization.

A planning book to create consensus-based forecasts is a good example of afrequently used planning book. It contains forecasts from several departments,such as sales and marketing and accounts. This kind of information is requiredahead of time so that appropriate key figures and tables can be created to managethe process.

In the above example, a predefined average is calculated using a macro anddisplayed in a row named consensus-based forecast. In this case, it is a goodidea to define the sales and marketing and accounts rows of the book as readonly, where data entry is not possible, and the consensus-based forecast row asa planning row in which adjustments can be made.


SCM220 Lesson: Consensus Based Forecasting (Optional)

Lesson Summary

You should now be able to:� Explain how Demand Planning in SAP SCM might support a consensus

based forecast process.



Lesson: Forecast Alert Profile (Optional)

Lesson OverviewIn this lesson you will learn to use the alert monitor to monitor forecast errorwhich may be too large. You will create a forecast alert profile, an overall alertprofile, and a diagnosis group, and then use them to monitor forecasts.


� Create a forecast alert profile� Create an overall alert profile� Create a diagnosis group� Assign the diagnosis group to your forecast profile� Use the Alert Monitor to identify potential problems in the forecast

Business ExampleThe forecast will be executed in mass processing at Precision Pump Company.Planners will need to quickly and efficiently identify potential problems in theforecast. They want to use the alert monitor to find any product forecast thathas forecast errors that are too large.

You can improve the accuracy of your univariate forecasts by monitoringpredefined tolerance thresholds for the standard errors, and by adjusting theforecast model where any of these thresholds are exceeded.

The aim of Demand Planning is to develop forecasts and demand plans that areas accurate as possible. You can use the Alert Monitor in the SAP SCM systemto monitor your planning for its precision and ability to be realized. You can usea Forecast Alert Profile and an SDP Alert Profile for macro-dependent alerts todefine the user-specific selection of alert types that are relevant for your planningarea. In Demand Planning, the Alert Monitor differentiates between the followingalert groups: Forecast Alerts and Macro-Dependent Alerts.

The system generates forecast alerts if the historical data upon which the forecastis based, cannot be correctly described by the selected forecast model. You haveassumed that the demand increases steadily, however over a period of time yourealize there is a season-dependent demand. When setting up univariate andMLR forecast profiles, users have the opportunity to add a diagnosis group foreach profile. The diagnosis group summarizes the upper limit for the univariateforecast error. This is helpful in estimating the quality of the univariate forecast orthe MLR model. When these thresholds are violated during interactive or massprocessing, alerts are deposited in the Alert monitor to trigger further processing.If you have not set a value limit for a certain forecast error in the diagnosis group,


SCM220 Lesson: Forecast Alert Profile (Optional)

the forecast error is ignored. Consequently, alerts will not be generated. Thedefinition of an alert profile in Transaction /SAPAPO/AMON1(APO→ SupplyChain Monitoring→ Alert Monitor does not influence the generation of alerts inany way for a forecast.

refer to customer-specific problems where, for example, a demand forecast fallsshort of, or exceeds, a customer-specific key figure. You can also assign yourown defined status messages to individual macro steps. These are displayed asalerts in the Alert Monitor.

In Supply and Demand Planning, the system differentiates between dynamic alertsand database alerts. You can create your own dynamic alerts or database alerts foruse with macros.

Dynamic AlertsReflect on the current planning situation that is stored in your SAP liveCache.For performance reasons, you should not use dynamic alerts for largenumbers of alerts. If you want to see dynamic alerts on standalone AlertMonitor (AMON) or Supply Chain Cockpit (SCC), you have to define thecorresponding dynamic alert macros as 'default' macros in the macrobuilder(see note 380300 for more details). Dynamic alerts will be executed throughinteractive planning.

Database (DB) alertsShow the planning situation as it was during the planning run, or lastexecuted macro. When dealing with large data volumes, use the databasemacro to perform a planning run. When dealing with large volumes of data, itis best to perform a batch planning run using the appropriate database macro.

Prerequisites:

� You have defined a forecast alert profile or an SDP alert profile formacro-dependent alerts.

� You have assigned the alert profile to your Overall Alert Profile, your SCCUser Profile, or for Interactive Demand Planning your user in the area menufor Demand Planning underEnvironment→ Current Settings→ AssignPlanner to Alert Profiles.

In DP/SNP, alerts are always generated for characteristic combinations (planningobjects). If a selection is specified in the alert profile, the planning objectsincluded in the selection are taken into account in the determination of alerts. Aselection defined in the alert profile can contain several planning objects. Thedetermination of the planning objects from the selection depends to a large extenton the aggregation level (grouping condition) of the selection.

If the Cross-Aggregationslevel Selection Evaluation indicator has not been setin the SDP alert profile, only planning objects that exactly correspond to theaggregation level defined in the selection are taken into account. This means thatthe planning objects contain exactly the characteristics of the aggregation level.



Planning objects that have additional characteristics are not taken into account. Ifhowever, the Cross-Aggregation-Level Selection Evaluation indicator is not setin the SDP alert profile, the system takes into account not only planning objectsthat exactly correspond to the aggregation level of the selection but also thosecontaining additional characteristics.

With an indication in batch processing you can ensure that existing alerts forthe current combination of planning book, data view, forecast key figure andplanning version are deleted before the respective forecast is made in active salesplanning. With user parameter /SAPAPO/FCST_ALDE, you can make sure thatonly the alerts for the current selection are deleted. If this parameter is set to X,the interactive forecast deletes all old forecast alerts for the combination planningfolder/data view before every new forecast run. If the parameter is set to S, thealerts for the current selection are deleted As of release 4.0, in mass processingyou can directly determine that only the alerts for the selection are deleted beforerunning the forecast. For this, set the Delete Old Alerts before Forecast indicatorin the activity.



Exercise 10: Forecast Alert Profile(Optional)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a Forecast alert profile� Create a Diagnosis Group� Use the alert monitor to monitor forecast errors

Business ExampleSince most of the forecast execution will take place in mass processing insteadof interactively, Precision Pump Company needs to create the objects necessaryto efficiently monitor forecast alerts.

Task:Create a forecast alert profile.

1. Create a forecast alert profile to display alerts for Univariate forecast errors.Be sure to display the alerts for your planning book, your planning version000, and only for your selection ID PRODUCT##. You will want to see thealerts for the whole 12 month forecast horizon.

2. Create a Diagnosis Group for your UNI## Univariate profile with thefollowing parameters.

Parameter SettingMAD Upper Limit 20

MPE Upper Limit 10

MAPE Upper Limit 10

3. Test your alert profile in the interactive planning table. To create alerts,execute the forecast again. Check the alert monitor for alerts.



Solution 10: Forecast Alert Profile(Optional)Task:Create a forecast alert profile.

1. Create a forecast alert profile to display alerts for Univariate forecast errors.Be sure to display the alerts for your planning book, your planning version000, and only for your selection ID PRODUCT##. You will want to see thealerts for the whole 12 month forecast horizon.

a) Use the menu path Advanced Planning and Optimization→ SupplyChain Monitoring→ Current Settings→ Set Alert Monitor.

b) Click on the Forecast Tab in the lower section and enter the nameFCST## with description Forecast Alerts GR##.

c) Enter your planning version 000 and select the first 7 alerts to bedisplayed.

d) Enter your planning book DPBOOK##, selection ID PRODUCT##,and check the Cross-Aggregation-Level Selection Evaluation indicator.

e) Select Save Forecast Alert Profile.

f) Complete the overall profile by entering PROF## as the name andforecast alert GR## as the description.

g) Make sure you enter a Relative Time Interval of 12 months.

h) Choose Save to save your complete profile. When you exit withthe green back arrow, answer yes to making it the default profile whenyou enter the Alert Monitor.

2. Create a Diagnosis Group for your UNI## Univariate profile with thefollowing parameters.




Parameter SettingMAD Upper Limit 20

MPE Upper Limit 10

MAPE Upper Limit 10

a) Follow the menu path Advanced Planning and Optimization→Demand Planning→ Environment→ Maintain Forecast Profiles

b) Enter the planning area DPPA## and select your master profileMASTER.

c) Select on the Univariate Profile tab and ensure that your UNI## profileis displayed. Enter DG## in the model parameter section and select the

Maintain Diagnos.Group icon.

d) Enter the limits from the table. Select Save Group and then Adopt.

e) Be sure to save your individual profile and your complete profile.

3. Test your alert profile in the interactive planning table. To create alerts,execute the forecast again. Check the alert monitor for alerts.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Interactive Demand Planning. If required,double-click the DEMAND PLAN data view for the DPBOOK##planning book.

b) Load the data for P-102 by double-clicking your selection IDPRODUCT## and double-clicking the row P-102.

c) Start the forecast by selecting Univariate Forecast on the tool bar.Answer NO to saving the data since we have not made any changesyet. The forecast is then executed automatically.

d) Click on the Forecast Errors tab page and check whether anyalerts have been generated. If no alerts appear pick a different modeland execute the forecast again until alerts appear. Exit the InteractivePlanning Table and save.

e) Follow the menu path Advanced Planning and Optimization→ SupplyChain Monitoring→ Alert Monitor and be sure your Overall ProfilePROF## defaults in the Favorites field.

f) Select Redetermine Alerts. You can now filter for specific alerts byclicking the selection boxes in the upper part of the screen. To displayspecific alerts, select the check box on the lower left part of the screen.



Lesson Summary

You should now be able to:� Create a forecast alert profile� Create an overall alert profile� Create a diagnosis group� Assign the diagnosis group to your forecast profile� Use the Alert Monitor to identify potential problems in the forecast

Related InformationConsulting Notes:

� 495166: Tips and Tricks for Handling the Alert Monitor� 375965: APO Consulting: Alerts in Forecasting� 350065: Consulting: User Parameters in the Forecasting Environment


SCM220 Unit Summary

Unit SummaryYou should now be able to:� Explain the forecasting process flow� Create a master forecast profile� Create a univariate forecast profile� Use forecast profiles for forecasting� Use univariate forecasting models� Use exponential smoothing for forecasting� Use automatic model selection� Use outlier correction for performing automatic correction in historical data� Use the Workday adjustment function� Choose the forecast errors to be calculated� Explain automatic aggregation of historical data� Assign forecast profiles to products� Use forecast comparison to determine the best forecast model� Explain Multiple Linear Regression to create forecasts� Use composite forecasting to execute a forecast� Use Composite forecasting to pick the best forecast model based on an error

measure.� Explain how Demand Planning in SAP SCM might support a consensus

based forecast process.� Create a forecast alert profile� Create an overall alert profile� Create a diagnosis group� Assign the diagnosis group to your forecast profile� Use the Alert Monitor to identify potential problems in the forecast


Unit Summary SCM220



Test Your Knowledge

1. If you execute the forecast at a high level, the historical data is automaticallyaggregated up to this level.Determine whether this statement is true or false.□ True□ False

2. You can use the same master profile if you want to forecast different keyfigures.Determine whether this statement is true or false.□ True□ False

3. A forecasting model creates a completely accurate statistical forecast forboth mature slow-moving products and new products.Determine whether this statement is true or false.□ True□ False

4. You can create statistical forecasts for any key figure in any version.Determine whether this statement is true or false.□ True□ False

5. The forecast can be calculated using the original historical data or thedata.


6. Where do you define the aggregation level if you need to run the forecast inthe background?



7. What are the advantages of creating a forecast profile with a unique namewhen you save the Demand Planning data for a selection ID?

8. What are the various uses of automatic adjustment of corrected history?

9. Time series models develop forecasts by assessing the patterns and trendsof past sales.Determine whether this statement is true or false.□ True□ False

10. In automatic model selection, if the system cannot detect any clear time seriespatterns in the historical data, it automatically selects the constant model.Determine whether this statement is true or false.□ True□ False

11. Seasonal models determine the basic value of future sales data.Determine whether this statement is true or false.□ True□ False

12. You can use the outlier correction in the univariate forecast profile toautomatically correct outliers in the historical data on which the forecastis based.Determine whether this statement is true or false.□ True□ False



13. The number of workdays in the period is determined by the value entered inthe Average number of days field in the planning area.Determine whether this statement is true or false.□ True□ False

14. If you run the forecast in Interactive Planning, the univariate measures offit are displayed on the Forecast errors tab page.Determine whether this statement is true or false.□ True□ False

15. Which forecasting models are used to determine the basic, trend, andseasonal values?Choose the correct answer(s).□ A Constant model□ B Trend model□ C Seasonal model□ D Seasonal trend model

16. Univariate models are called .Fill in the blanks to complete the sentence.

17. In the trend test, the system performs a analysis of thehistorical values and checks if there is a significant trend pattern.Fill in the blanks to complete the sentence.

18. The defines the width of the tolerance range forautomatic outlier correction.Fill in the blanks to complete the sentence.

19. You can only use the key figure forunivariate forecasting.Fill in the blanks to complete the sentence.

20. prevent positive errors from being canceledby negative errors.Fill in the blanks to complete the sentence.



21. The promotion key figure is used to create historical value markings tocorrect the outlier and use past promotions to adjust the actual data.Determine whether this statement is true or false.□ True□ False

22. Multiple Linear Regression enables you to analyze the relationship betweena single dependent variable and several independent variables.Determine whether this statement is true or false.□ True□ False

23. The business analyst's goal in combining the forecasts is to develop thebest forecast possible.Determine whether this statement is true or false.□ True□ False

24. Planning books are typically based on the data and not on the planning toolsrequired by users for their roles in the organization.Determine whether this statement is true or false.□ True□ False

25. The field is used to smooth seasonal regression.Fill in the blanks to complete the sentence.

26. uses the ordinary method ofthe least squares for MLR.Fill in the blanks to complete the sentence.

27. combines forecasts createdindependently using different forecasting methods for the same data on thebasis of specific brands, individual products, or product families.Fill in the blanks to complete the sentence.

28. supports participants inconsensus-oriented meetings.Fill in the blanks to complete the sentence.



Answers

1. If you execute the forecast at a high level, the historical data is automaticallyaggregated up to this level.

Answer: True

If you make the forecast at a high level, the historical data is automaticallyaggregated up to this level.

2. You can use the same master profile if you want to forecast different keyfigures.

Answer: False

If you want to forecast different key figures, you need master profiles foreach of the key figures.

3. A forecasting model creates a completely accurate statistical forecast forboth mature slow-moving products and new products.

Answer: False

A forecasting model should be matched to the group of products for whichit is most appropriate. One forecast model is typically not appropriate forall products.

4. You can create statistical forecasts for any key figure in any version.

Answer: True

Statistical forecasts can be created for any key figure in any version.

5. The forecast can be calculated using the original historical data or thecorrected historical data.

Answer: corrected historical

6. Where do you define the aggregation level if you need to run the forecast inthe background?

Answer: If you run the forecast in the background, you define theaggregation level in the mass processing job.



7. What are the advantages of creating a forecast profile with a unique namewhen you save the Demand Planning data for a selection ID?

Answer: The advantages are: The next time you work with this selection ID,the system automatically uses the uniquely named forecast profile to createthe forecast. If you modify the forecast configuration, the system retains thenew settings without overwriting the original forecast profile.

8. What are the various uses of automatic adjustment of corrected history?

Answer: Automatic adjustment of corrected history has the following uses:You can use automatic adjustment of corrected history to base your forecaston the corrected history key figure. For periods where there is no correctedhistory in the database, the system uses the original history. If you have notcreated any forecasts over a certain time period, the corrected history fromthe time period contains manual corrections that you do not want to lose. Toprevent inaccuracies, you can set the automatic adjustment of the correctedhistory key figure. The system then uses the original historical values for thetime period for which you did not create forecasts.

9. Time series models develop forecasts by assessing the patterns and trendsof past sales.

Answer: True

Time series models can develop forecasts by assessing the patterns andtrends of past sales.

10. In automatic model selection, if the system cannot detect any clear time seriespatterns in the historical data, it automatically selects the constant model.

Answer: True

In automatic model selection, if the system cannot detect any clear time seriespatterns in the historical data, it automatically selects the constant model.

11. Seasonal models determine the basic value of future sales data.

Answer: False

Constant models determine the basic value of future sales data.



12. You can use the outlier correction in the univariate forecast profile toautomatically correct outliers in the historical data on which the forecastis based.

Answer: True

Outlier correction can be used in the univariate forecast profile toautomatically correct outliers in the historical data on which the forecastis based.

13. The number of workdays in the period is determined by the value entered inthe Average number of days field in the planning area.

Answer: False

The number of workdays in the period is determined by the factory calendarin the planning area.

14. If you run the forecast in Interactive Planning, the univariate measures offit are displayed on the Forecast errors tab page.

Answer: True

If you run the forecast in Interactive Planning, the Forecast errors tab pagedisplays the univariate measures of fit.

15. Which forecasting models are used to determine the basic, trend, andseasonal values?

Answer: D

Constant models determine the basic value of future sales data, trend modelsdetermine the basic and trend values, seasonal models determine the basicand seasonal values, and trend and seasonal models determine the basic,trend, and seasonal values.

16. Univariate models are called time series models.

Answer: time series models

17. In the trend test, the system performs a regression analysis of the historicalvalues and checks if there is a significant trend pattern.

Answer: regression



18. The sigma factor defines the width of the tolerance range for automaticoutlier correction.

Answer: sigma factor

19. You can only use the corrected forecast key figure for univariate forecasting.

Answer: corrected forecast

20. Absolute errors prevent positive errors from being canceled by negativeerrors.

Answer: Absolute errors

21. The promotion key figure is used to create historical value markings tocorrect the outlier and use past promotions to adjust the actual data.

Answer: True

The promotion key figure is used to create historical value markings forcorrecting the outlier and using past promotions to adjust the actual data.

22. Multiple Linear Regression enables you to analyze the relationship betweena single dependent variable and several independent variables.

Answer: True

Multiple Linear Regression enables you to analyze the relationship betweena single dependent variable and several independent variables.

23. The business analyst's goal in combining the forecasts is to develop thebest forecast possible.

Answer: True

The business analyst's goal in combining the forecasts is to develop thebest forecast possible.

24. Planning books are typically based on the data and not on the planning toolsrequired by users for their roles in the organization.

Answer: False

Planning books are typically based on the data and not on the planning toolsrequired by users for their roles in the organization.



25. The Persmo field is used to smooth seasonal regression.

Answer: Persmo

26. APO Demand Planning uses the ordinary method of the least squares forMLR.

Answer: APO Demand Planning

27. Composite forecasting combines forecasts created independently usingdifferent forecasting methods for the same data on the basis of specificbrands, individual products, or product families.

Answer: Composite forecasting

28. SCM sales planning supports participants in consensus-oriented meetings.

Answer: SCM sales planning




Unit 4Lifecycle Planning

Unit OverviewIn this unit you will learn how product lifecycles can be modeled in SCM DemandPlanning.


� Explain the concept of characteristic value combinations� Create characteristic value combinations manually� Create characteristic value combinations in mass using realignment� Create a Like profile� Create a phase in profile� Create a phase out profile

Unit ContentsLesson: Realignment... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .170

Exercise 11: Creating Characteristic Value Combinations ... . . . . . . . . .175Lesson: Lifecycle Planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182

Exercise 12: Implementing Lifecycle Planning .. . . . . . . . . . . . . . . . . . . . . . . .187


Unit 4: Lifecycle Planning SCM220

Lesson: Realignment

Lesson OverviewIn this lesson you will learn how the realignment functionality can help you toquickly create the characteristic value combinations that are needed for planning.This becomes important for new product introductions.


� Explain the concept of characteristic value combinations� Create characteristic value combinations manually� Create characteristic value combinations in mass using realignment

Business ExamplePrecision Pump Company introduces new products from time to time. Theseproducts need to be forecast in demand planning.

Demand Planning Master Data

Figure 54: Demand Planning Master Data

Demand Planning characteristics determine the levels at which demand plans arecreated, changed, aggregated, and disaggregated. For example, your master datacan include all the products, product families, regions, and customers that yourcompany is going to plan using SAP SCM Demand Planning. In addition, the


SCM220 Lesson: Realignment

master data can include all the corresponding combinations of information, suchas the information pertaining to the particular categories of customers that buyspecific products in specific regions. You model the levels in a non-hierarchicalselection tree. From a technical point of view, you indicate the characteristicvalues that can be planned for the characteristics in your planning area. DemandPlanning or Supply Network Planning master data includes all the permissiblevalues of a characteristic called characteristic values, which are specific names.For example, the characteristic, Location, can have the values, London, NewDelhi, or New York.

Characteristic Value Combinations (CVC's) are the master data of DemandPlanning. They are created from existing InfoCube historical data, for example.These CVCs are stored in the database tables of an APO InfoCube called aPlanning Object Structure (POS). This data is independent of the SCM master datatransferred by CIF interface, but can be checked against the CIF master data whencreating CVCs. For this reason, in demand planning you can only plan products,sold-to parties, and locations for which you have saved valid characteristicvalue combinations in your planning object structure. Characteristic values andcharacteristic value combinations are planning objects in Demand Planning.

Figure 55: Creating Characteristic Value Combinations

Characteristic value combinations define the valid relationships betweencharacteristic values and form the basis for aggregation and disaggregation of keyfigure values. There are two ways to create characteristic value combinations,individually and automatically.

To create an individual characteristic value combination, maintain a characteristicvalue for each characteristic and generate an individual data record in the planningobject structure. This is, however, very time-consuming.



Alternatively, to create characteristic value combinations automatically, yougenerate characteristic value combinations based on existing data from anSAP BW InfoCube, within SAP SCM. In this case, the system generates allthe combinations that it detects for a particular time period. To maintain thecharacteristic value combinations up to date, you periodically schedule abackground job that generates the new characteristic value combinations based onthe most recent sales history. When you update data into a SAP BW InfoCube,such as update the sales order data with a new customer, the background jobgenerates new characteristic combinations for it. This does not erase oldcharacteristic value combinations. New ones are simply added.

If you want to create more than one characteristic value combination, you canmaintain the CVCs in Excel, then load them into an InfoCube and generate CVCsfrom this. Or you can use the data realignment function. This process also resultsin a network of new planning objects.

Figure 56: New Characteristic Combinations - Realignment

As stated earlier CVC's are the master data of Demand Planning. Through theprocess known as realignment you can copy characteristic value combinationsof a predecessor product (P-102) for planning a new product (NEW). Withrealignment, you can copy existing characteristic values into new characteristicvalues. You can then decide if the predecessor data should be deleted (Move) orcopied (Copy) and if the target data should be overwritten or added to existingdata. You can also determine the percentage rate of planning data transfer. Youcan realign planning areas and InfoCubes.



In modern business processes master data is constantly changing, for example newproducts are introduced, organizational structures change, or existing products aremanufactured in new locations. These changes need to be accounted for in yourdemand planning process. There are two distinct operations:

1. Generating new CVCs and deleting old ones, where necessary.2. Copying planning data from one CVC to another.

Since doing this manually requires a lot of work, SAP provides functions tocreate new characteristic value combinations and to copy the data. This processconsists of two steps:

1. Realignment - Characteristic value combinations are maintained for masterplanning object structures. Realignment itself works at this level. Thesystem creates new characteristic value combinations based on selectedvalues from existing combinations. The system can then copy planning datafrom old combinations to the new CVCs. A percentage of the data fromselected key figures in the planning area can be copied on the basis ofthe basic planning object structure. If required, the old combinations arethen deleted with the data.

2. Copy Function - Data itself is stored at planning area level. If thecharacteristic value combinations already exist and you want to copy datafrom one combination to another, you use this function. Since the extentof the function is limited to the planning area, more selection options areavailable than for the master planning object structure. It is possible:

� To copy data from source to target version� To select the key figures to be copied� To restrict the periods in which data is copied� To copy a percentage of planning data

There is also an extensive log function. Proportional factors are not copied.

The copy function is similar to some of the functions available in CopyManagement. However copy management does not allow you to copy data fromindividual characteristic value combination to other combinations.





Exercise 11: Creating Characteristic ValueCombinations

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create characteristic value combinations manually� Create characteristic value combinations using realignment

Business ExamplePrecision Pump Company is introducing a product called NEW. The master datato support the planning of this new product will need to be created.

Task 1: Manual Creation of CVC's.You are going to introduce a new product to a specific customer, throughspecific channels. In doing this you only need to create one characteristic valuecombination. We'll create a characteristic value combination manually to gain anunderstanding of CVC's.

1. Check the characteristic value combinations in your planning object structureto see if any exist for your NEW product.

2. In order to plan for your new product, NEW, master data or characteristicvalue combinations and time series will need to be created. Manually createthe following characteristic value combination.

Location 2400

Product NEW

Customer 1000

Division 01

Product Hierarchy 0110

Sales Organization 2400

3. Check the characteristic value combinations in your planning object structureto see if any now exist for your NEW product.




Task 2: Mass Creation of CVC'sYou are introducing a new product called NEW. Due to the large number of CVC'sneeded to support the demand planning process it is impractical to do it manually.You will create a large amount of CVC's using the process of realignment.

1. The manual method of creating characteristic value combinations works wellfor small numbers of combinations. For large numbers of combinations,we will need to find an alternative method of maintaining them. We knowthat our NEW product will be sold everywhere P-104 will be sold. We willnow use realignment to use the characteristic value combinations whichalready exist for P-104 and create the same ones for NEW. Do not copyany planning data.

2. Check the CVCs for P-104 and for NEW again.



Solution 11: Creating Characteristic ValueCombinationsTask 1: Manual Creation of CVC's.You are going to introduce a new product to a specific customer, throughspecific channels. In doing this you only need to create one characteristic valuecombination. We'll create a characteristic value combination manually to gain anunderstanding of CVC's.

1. Check the characteristic value combinations in your planning object structureto see if any exist for your NEW product.

a) Follow the menu path Advanced Planning and Optimization→ MasterData→ Demand Planning Master Data→ Maintain characteristicvalues

b) Enter your planning object structure DPPOS##.

c) Select Display Characteristic Combinations atthe bottom.

d) Select Selection Condition and enter NEW in the

product field. Select Execute.

e) Select Execute.

The report should be blank since there are no CVC's for your NEWproduct, yet.

2. In order to plan for your new product, NEW, master data or characteristicvalue combinations and time series will need to be created. Manually createthe following characteristic value combination.

Location 2400

Product NEW

Customer 1000




Division 01

Product Hierarchy 0110

Sales Organization 2400


b) Enter your planning object structure DPPOS##.

c) Select the Create Single Characteristic Combination icon and enter thedata from the table.

d) Select the Adjust Time Series Objects Immediately indicator and then

Execute.

3. Check the characteristic value combinations in your planning object structureto see if any now exist for your NEW product.


b) Enter your planning area DPPOS##.


d) Select Selection Condition and enter NEW in the

product field. Select Execute.

e) Select Execute.

Task 2: Mass Creation of CVC'sYou are introducing a new product called NEW. Due to the large number of CVC'sneeded to support the demand planning process it is impractical to do it manually.You will create a large amount of CVC's using the process of realignment.

1. The manual method of creating characteristic value combinations works wellfor small numbers of combinations. For large numbers of combinations,we will need to find an alternative method of maintaining them. We knowthat our NEW product will be sold everywhere P-104 will be sold. We will




now use realignment to use the characteristic value combinations whichalready exist for P-104 and create the same ones for NEW. Do not copyany planning data.

a) Follow the menu path Advanced Planning and Optimization→DemandPlanning→ Environment→ Data Administration→ Data Realignment

b) Select the Realignment radio button in the upper left.

c) Select your planning object structure DPPOS##.

d) In the realignment table section, select Create and answer YES torestrict the characteristic selection.

e) Deselect all, select only the APO Product characteristic. SelectContinue.

f) You'll find yourself back at the realignment main screen. Now selectMaintain Entries. An empty table will appear.

g) Now select Create.

h) Change Copy Logic to Add and accept the defaults for the remainingfields and enter P-104 in the From field and NEW in the To field.Select Save.

i) Select Back to return to the realignment main screen. Select theindividual key figures and set all Key figures to be initialized, in ordernot to copy the planning data from P-104.

j) Select Execute and the CVC's for NEW will be created. Watch thestatus bar for messages. After successfully completing the realignmentselect Back to return to the main menu.




2. Check the CVCs for P-104 and for NEW again.


b) Enter your planning area DPPOS##.


d) Select Selection Condition.

e) Select Multiple selection. Enter P-104 on one line and NEW onthe next line in the table.

f) Select Copy.

g) Select Execute the selection criteria.

h) Now select to Execute the report.

The report should be show the same CVC's for both P-104 and NEW aswell as the one you created manually for NEW.



Lesson Summary

You should now be able to:� Explain the concept of characteristic value combinations� Create characteristic value combinations manually� Create characteristic value combinations in mass using realignment



Lesson: Lifecycle Planning

Lesson OverviewIn this lesson, you will use the life cycle planning tools to forecast for a newproduct with no historical data. You will learn how to introduce this product and,at the same time, phase out an old product that is being replaced.


� Create a Like profile� Create a phase in profile� Create a phase out profile

Business ExampleAs the demand planner you need to plan the launch of a new product which doesn'tyet have any sales history. You want to phase in this product over the next 4months and phase out the product it is replacing over the same period of time.

Lifecycle Management

Figure 57: Lifecycle Management and Like Modeling

The lifecycle of a product consists of different phases: Launch, growth, maturity,decline, and death. In SAP SCM Demand Planning, you can use phase-in andphase-out profiles to represent the launch, growth, decline and death phases.


SCM220 Lesson: Lifecycle Planning

You use lifecycle Planning and Like Modeling to forecast the phase-in of newproducts and phase-out of old products.

In the phase-in profile, you enter the ever-increasing percentages during aspecified period or periods to forecast the new product. This mimics the upwardsales curve that you expect the product to display during its launch and growthphases. If the corrections happened in the past, the Corrected History key figurecan be adjusted automatically.

A phase-out profile reduces the sales forecast for a product by the ever-decreasingpercentages during a specified period. This mimics the downward sales curvethat you expect the product to display during its discontinuation phase. If thecorrections in the past fall, the Corrected history key figure can be adjustedautomatically.

You can use a phase-in profile, a phase-out profile, a like profile, or anycombination of the profiles for all the characteristic value combinations.

Figure 58: Like Modeling

Some products do not have sufficient historical data to provide the basis for aforecast. With a like profile, you can create a forecast using the historical data ofa product or products with similar sales behavior. It is a good idea to use likeprofiles for new products and products with short lifecycles.



Figure 59: Lifecycle Management

If the phase-out profile period is within the history horizon specified in the masterforecast profile, the system adjusts the corrected history. If no key figure hasbeen assigned to the corrected history in the planning area, the corrected valuesare displayed in the statistical forecast view. However, the corresponding rowwill not be saved.

If the phase-in profile period is within the future horizon specified in the masterforecast profile, the system directly adjusts theForecast key figure.

You must set the LIfecycle Planning Activeindicator in the Master forecast profile.

Life cycle planning can be set for specific characteristics. First, the characteristicsto be used must be maintained in basic settings. Here you specify thecharacteristics of the planning area you would like to work with. The followingrestrictions apply to this process:

1. You can work with a maximum of 6 characteristics2. You cannot use compound characteristics.3. You cannot use CBF characteristics.

If you do not use characteristic 9AMATNR for the products, you have to enter theproduct characteristic you used in the planning object structure.

LIKE profiles can be defined for each characteristic of the basic settings. It istherefore also possible to define a LIKE profile for locations, for example. Onlyone LIKE profile can be assigned to a characteristic value combination, that is,characteristic values for several characteristics of the selection cannot be replacedsimultaneously. For example: A product P1 is imported into a location L1.Historical values from another product in location L1 can be used. To this end, aLIKE profile is created for the product characteristic and then assigned. Historical



values for product 1 can be used in another location. To this end, a LIKE profileis created for the location characteristic and then assigned. No historical valuesof another product can be used at another location. With the selection of thecharacteristics in the basic settings, you always set the highest level at whichyou can execute the forecast with lifecycle planning. If you want to plan in anaggregated manner, you can use grouping characteristics (for example, productgroup) or activate aggregated life cycle planning for like profiles or phase in/outprofiles in the basic settings.

To take a like profile or a phase in/out profile for a detailed CVC into considerationin a forecast on the aggregated level, you have to set aggregated life cycleplanning (as of SCM 4.0).

The following restrictions apply for aggregated lifecycle planning for LIKEprofiles:

� LIKE profiles with shifts (lag definitions) are not taken into account.� Outlier control may not be used in the forecast. The use of workday

corrections is not possible.� The functions are only available for historical key figures in time series with

aggregation types S = pro rata, P = based on another key figure and I =pro rata, if initial: based on another key figure.

� The function is only executed by default for a maximum of 52 forecast periodsand 1000 combinations at the level of the basic setting. The default valuescan be changed using the report /SAPAPO/RMDP_FCST_AGGLC_CUST.

� Phase-in/out profiles are only used in the forecast horizon, not in the pasthorizon.

Lifecycle planning is used for univariate forecasting, multiple linear regressionand composite forecasting.

When you use LIKE profiles, you should have try to have the same characteristiccombinations for all reference objects, as for the characteristic to which you assignthe LIKE profile. If you do not do this, it may work in individual, but not in allcases. Let's assume that you have character combinations Product 1 - Region 1and Product 2 - Region 2. You have assigned the like profile HASE to product 2.HASE only contains product 2. Now run the forecast with the HASE like profilein interactive planning. If you have only specified product 1 in the selection, youcan execute lifecycle planning. The system replaces product 1 by product 2 in theselection and then the data for region 2. However, if you specify product 1 andregion 1 in your selection, lifecycle planning cannot be executed. The systemreplaces product 1 by product 2 in the selection again, however, a characteristicscombination for product 2 and region 1 does not exist.





Exercise 12: Implementing LifecyclePlanning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a lifecycle plan for a product� Create a Like profile� Create Phase-in and Phase-out profiles� Assign lifecycle profiles to products

Business ExampleThe marketing manager at the Precision Pump Company needs to introducelifecycle planning to create forecasts for launching new products and discontinuingold ones.

Task 1: Like ModelingYou will create a like-profile for a new product called NEW. This product doesnot have any historical data for use in forecasting. You will use P-104's saleshistory with NEW to make a forecast for product NEW. Make the necessaryadjustments to allow a forecast to be made.

1. Assign the characteristic, 9AMATNR, to the basic lifecycle for your planningarea, DPPA##.

2. Define the product, whose historical data is to be read. Create a like profilecalled LIKE## on the characteristic 9AMATNR level and store 100% of thedata from product P-104 and NEW.

Task 2: Life Cycle ModelingYou New product is not yet ready for manufacturing and distribution. Due to sometechnical improvements, you have to limit manufacturing and stocking up. Due tothe fact that New will be replacing P-104 you have several life cycle phases tomodel. Create the phase in of Product NEW and the phase out of product P-104.

1. Create a phase-in profile called PHASEIN##. The product launch (phase-in)should start in the following month and last for four months. There should bea 20% increase each month. Nothing should be forecast before the productlaunch.




2. Create a phase-out profile called PHASOUT##. The phase-out of the productshould start six months from now and end nine months from now. Thereshould be a reduction of 25% each month. After the product discontinuation,nothing should be forecast.

3. Assign your LIKE## and PHASEIN## profiles to the NEW product andassign your PHASEOUT## profile to the P-104 product.

Task 3: Forecasting with Lifecycle ModelingNow that your lifecycle modeling is in place you need to create a forecast profilethat will

1. Create a new master forecast profile called LIKE with the indicator LifecyclePlanning Active by copying your MASTER profile that you created earlier.

2. Create a selection called NEW## for the new product, NEW. Execute aforecast in Interactive Planning and check the results.



Solution 12: Implementing LifecyclePlanningTask 1: Like ModelingYou will create a like-profile for a new product called NEW. This product doesnot have any historical data for use in forecasting. You will use P-104's saleshistory with NEW to make a forecast for product NEW. Make the necessaryadjustments to allow a forecast to be made.

1. Assign the characteristic, 9AMATNR, to the basic lifecycle for your planningarea, DPPA##.

a) Follow this path:Demand Planning→ Environment→ LifecyclePlanning.

b) Enter your planning area, DPPA##, select the Basic Settings radiobutton.

c) Select the Execute button.

d) 9AMATNR is the default characteristic. Select Adopt.

2. Define the product, whose historical data is to be read. Create a like profilecalled LIKE## on the characteristic 9AMATNR level and store 100% of thedata from product P-104 and NEW.

a) Follow this path: Demand Planning→ Environment→ Life CyclePlanning.

b) Enter your planning area DPPA##.

c) Select the LIKE Profiles button and choose characteristic9AMATNR.

d) Enter the following data:

�Like� profile LIKE##Description Like P-104Ref. values P-104 and NEWAction S respectivelyWeighting factor (%) 100 respectively

e) Select the Adopt values button.




Task 2: Life Cycle ModelingYou New product is not yet ready for manufacturing and distribution. Due to sometechnical improvements, you have to limit manufacturing and stocking up. Due tothe fact that New will be replacing P-104 you have several life cycle phases tomodel. Create the phase in of Product NEW and the phase out of product P-104.

1. Create a phase-in profile called PHASEIN##. The product launch (phase-in)should start in the following month and last for four months. There should bea 20% increase each month. Nothing should be forecast before the productlaunch.

a) Follow this path: Demand Planning→ Environment→ Life CyclePlanning.

b) Enter your planning area DPPA##.

c) Select Phase In/Out and enter the following data:

Time series ID PHASEIN##Description LaunchStart date One month from nowEnd date Five months from nowPeriod MBefore start date, apply constantfactor

Select, Factor 0.

In the lower section enter the phase with the following percentages:

20 40 60 80

Select the Save Time Series button, then select Adopt.




2. Create a phase-out profile called PHASOUT##. The phase-out of the productshould start six months from now and end nine months from now. Thereshould be a reduction of 25% each month. After the product discontinuation,nothing should be forecast.

a) Follow this path: Demand Planning→ Environment→ LifecyclePlanning.

b) Enter your planning area, DPPA##.

c) Select Phase In/Out and enter the following data:

Time series ID PHASEOUT##Description Product phase outStart date One month from todayEnd date Five months from todayPeriod MAfter end date, apply the constantfactor

Select, Factor 0.

d) In the lower section enter the following percentages for phase-out:

80 60 40 20

e) Select the Save Time Series button, then select Adopt.






b) Enter planning area DPPA##, select the Assignments radio button,

and then the Execute button.

c) Enter the product NEW, Like profile LIKE## and Phase-in profilePHASEIN##.

d) On the next line enter product P-104 and Phase out profilePHASEOUT##.

Hint: You can leave the date field blank and default to thedates you entered in the profiles. If you enter dates here theywill override the dates you entered in the profiles.

e) Select Adopt and then the green Back arrow to return to themain menu.

Task 3: Forecasting with Lifecycle ModelingNow that your lifecycle modeling is in place you need to create a forecast profilethat will

1. Create a new master forecast profile called LIKE with the indicator LifecyclePlanning Active by copying your MASTER profile that you created earlier.

a) Follow this path: Demand Planning→ Environment→ MaintainForecast Profiles.

b) Enter your planning area, DPPA## and your Master prfl. MASTER.

c) Overwrite MASTER with LIKE and the entire profile will be copied tothe new name.

d) Change the description to Like P-104.

e) Be sure to check the Lifecycle Planning Active indicator.

f) Select Save and exit forecast profile maintenance by selectingBack .




2. Create a selection called NEW## for the new product, NEW. Execute aforecast in Interactive Planning and check the results.

a) Follow the menu path Advanced Planning and Optimization→Demand Planning→ Planning→ Interactive Demand Planning.

b) In the Shuffler, Select the triangle next to your DPBOOK## planningbook to expand the views, then double click on the DEMAND PLANview, if necessary.

c) Select Selection Window. Choose Show APO Product. OnlyVersion 000 is displayed by default. Choose APO Product in thesecond row. Define product NEW only by entering it in the cell atthe right.

To save the selection as NEW##, select Save Selection and enterNEW## as the selection description. Select Save and thenAdopt .

d) To enable easy access to this selection, assign the selection to the

selection profile by clicking Selection Profile.A dialog window will open up. Drag your selection from the right

side of the window to the book on the left side. Select Save andthen Copy.

e) Double-Select the NEW product to load the data.

f) Start the forecast by selecting Univariate Forecast.

g) Select your LIKE master profile and Generate Curve.

The forecast is then run automatically. Switch on the graphic and checkthe product phase-in and phase-out stages.



Lesson Summary

You should now be able to:� Create a Like profile� Create a phase in profile� Create a phase out profile


SCM220 Unit Summary

Unit SummaryYou should now be able to:� Explain the concept of characteristic value combinations� Create characteristic value combinations manually� Create characteristic value combinations in mass using realignment� Create a Like profile� Create a phase in profile� Create a phase out profile


Unit Summary SCM220


Unit 5Promotion Planning

Unit OverviewThis unit will help you create and assign promotions. Next, you will learn howpromotions are extracted from historical data.


� Explain the purpose of promotions and why they are separate from theforecast.

� Explain the settings and levels needed to use Promotional Planning� Define promotions and assign characteristic values to it� Explain how promotions are extracted from historical data

Unit ContentsLesson: Promotional Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198

Exercise 13: Creating a Promotion.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .213


Unit 5: Promotion Planning SCM220

Lesson: Promotional Planning

Lesson OverviewThis lesson will help you to understand the concept of promotions. You will alsolearn how you can extract promotions from historical data.


� Explain the purpose of promotions and why they are separate from theforecast.

� Explain the settings and levels needed to use Promotional Planning� Define promotions and assign characteristic values to it� Explain how promotions are extracted from historical data

Business ExampleAs planning manager, you need to consider how one-off, non-repeating events,such as advertising campaigns, can be planned and linked into sales forecasts.

Concept of Promotional PlanningDepending upon the industry you are in, the products/service you make or sell,and the customers you sell to, promotions may be a large part of doing business. Inorder to obtain a better demand plan, it is better to break historical data down intovarious key figures. One piece would be unsolicited demand the other piece wouldbe the demand that was attributed to some activity in which your organizationparticipated. By separating your normal demand history and your promotionalactivities you may find that your statistical models are more accurate. This may betrue due to the fact that your activities are not exactly the same for every period oftime or during certain seasons.


SCM220 Lesson: Promotional Planning


In SCM Demand Planning, you can plan promotions or other special eventsindependently of the rest of your forecast. You can use Promotion Planning tomodel one-time events, such as an earthquake or repeated events, such as quarterlyadvertising campaigns. Additional examples of promotions include trade fairs,coupons, free-standing inserts, competitor activities, and market intelligence.Events that impact consumer behavior include upward or downward economictrends and acts of nature.

Planning promotions separately has the following advantages:

� You can compare forecasts that have promotions with the forecasts that donot have promotions.

� You can correct the sales history by subtracting past promotions from it toobtain non-promoted historical data for the baseline forecast.

� The processes of baseline forecasting and promotion planning can be keptcompletely separate. For example, the sales department can forecast futuresales orders, whereas planning one-off events in promotion planning is atask for the marketing department.

The above example shows how a promotion that has been defined as a percentageaffects the forecast.

Promotional Planning SetupPrior to using Promotional Planning, you must make some design adjustments, inAdministration of Demand Planning. Your planning area must contain a separatekey figure for your baseline statistical forecast, and a separate key figure in whichyou will store you promotional planning figures.



Depending upon your company specific process, it would be recommended tohave a separate planning book and data view for promotions. SAP has alreadycreated a special transaction under APO→ Demand Planning→ Planning→Promotion→ Promotion Planning which gives you direct access to the promotionview. In addition, you can access the promotion planning data views through anicon in interactive planning via configuration, it you are authorized to do so.

Prior to creating a promotion, there are parameters that you have to setup:

� Maintain Promotional Key figure� Maintain Promotion Base� Maintain Cannibalization Group� Maintain Promotion Attribute Types

Maintaining A Promotional Key FigureWhen creating a promotion in Demand Planning users will specify whatCharacteristic Value Combinations (CVC's) are affected by each promotion. Youcan assign one or more characteristics and values to each promotion. However, foreach Planning Area, users must specify what is the lowest level of characteristicsthat is valid for a particular key figure. Follow the menu path APO→ DemandPlanning→ Planning→ Promotion→ Settings→ Maintain Promotion KeyFigures. For each planning are you must specify the promotional key figure aswell as the lowest level of detail for this promotions. This means that whenassigning CVCs to a promotion, the characteristic assigned to the object mustmatch the last drill down.

Maintaining A Promotion BaseAs of release 4.0, you can also define a promotion base. A promotion base formsthe basis for similar promotions. It specifies the characteristics that are to be usedfor planning promotions. Each promotion base is assigned a key figure.

Using a promotion base for planning promotions makes it easier to identify theeffects of individual promotions. Furthermore it facilitates planning promotionsat detail level. A promotion base is defined for a limited period. Two promotionbases can have the same or overlapping dates and the same characteristiccombinations in the same planning area. They must however have differentpromotion key figures.

Each promotion base contains at least one characteristic, the promotion level. Youmust have defined a promotion level for a planning area, before you can definea promotion base for this planning area. You create and edit promotion basesin a separate transaction. This enables you to restrict the number of users whoare authorized to use the transaction. When you create a new promotion in therelevant planning area, you can then assign it to a promotion base. The systemautomatically loads the relevant settings from the promotion base. In particularit determines the characteristics in the promotion base and the promotion key



figure. It is configured so that in promotion planning you cannot assign valuesto characteristics that have not been included in the promotion base. In thetransaction for reporting on promotions (Demand Planning→ Planning→Promotions→ Promotion Reports) you can use promotion bases to report onindividual promotions.

Cannibalization Groups

Figure 61: Cannibalization

A single promotion has both a positive and negative influence on the sales ofproducts from one cannibalization group.

You create a cannibalization group in the promotion planning settings (MaintainCannibalization Groups), and specify the cannibalization group when creating apromotion for a product (Check Cannibal Group). Promotions for other productsin the cannibalization group are automatically calculated.

For example, you plan a 5% price reduction on liter bottles of Peach blossomshampoo, which will cause a 30% increase in sales. Conversely, the sales of 250ml bottles will go down by 3%, and the sales of 500 ml bottles by 5%.

You define the cannibalization group, as follows :

Liter bottle +30

250 ml bottle -3

500 ml bottle -5

You create a promotion for the liter bottle. Negative promotions are createdautomatically for the 250 ml and 500 ml bottle in the percentage ratio that ispredefined by the cannibalization group factors.



You can only execute cannibalization for absolute promotions.

Defining Promotional AttributesDuring the promotion planning process, whether it is in the planning stage, or thepost-evaluation stage, planners may be required to group together promotions.When creating promotions you will have the opportunity to put specificinformation in that will allow, marketing or the customer to better evaluationthe plan.

An example of a Promotion Attribute Type is Discount. This type has thefollowing attributes:

� 20% off� Buy 1, get 1 free

In the shuffler you select all promotions with the attribute Buy 1, get 1 free

Example of a Promotion Attribute Type for Media Support. The promotionattribute type "media support" has the following attributes:

� TV� Radio� Internet

In the shuffler you select all promotions with the attribute Internet.

Following the menu path APO→ Demand Planning→ Planning→ Promotion→ Settings→ Maintain Promotion Attribute Types planners can add differentattributes to categories of each promotion. There is no restriction on the numberof promotion attributes you can have for a promotion attribute type. To supportthe examples above you would created two promotional attribute types; StoreDiscount and Media Support. When defining the details of a promotion, you willenter the details of the attribute types:

� 20 % off� Buy 1, get one Free� TV� Radio� Internet

After entering these attribute values, a user can choose from these values at alater date.

In the Shuffler, you can select promotions by their attributes. Enter Promotion asthe generic selection criterion and promotion attribute types as conditions.



Defining Characteristic Values for PromotionalPlanning

Figure 62: Promotions

Promotional uplifts can be modeled in absolute or percentage values by promotionpatterns. A promotion pattern that occurred in the past can be automaticallydetected and recreated for future periods. A promotion pattern can be archivedin a promotion catalog, which means it can be reused if a promotion of the sametype is repeated.

Figure 63: Defining a Promotion



When you define a promotion, you need to enter the following parameters:

� Promotion Name: Defines the purpose of promotion� Type of Promotion: will the promotion be an Absolute quantity in UOM or

will it be a Percentage of the forecast./Percentage)� Periods: The number of periods in the promotion and the start or finish

date. Alternatively you can enter the start and finish date. The system thencalculates the number of periods. These two entries are required entries.

� Attributes: Categorize the type of promotion for filtering at later date orreporting.

� Version: Planning version� Promotion key figure: Enter the key figure where the promotion data is to

be stored. You must use a separate key figure from that used for normalforecasting.

� Planning key figure: Enter the key figure where the promotion data is tobe stored. The key figure should already be in the planning book. Thepromotion can then be added to (or subtracted from) this baseline. Will beused only with a percentage type promotion.

You must activate a promotion in Interactive Planning for it to be displayed there.

You can see which promotions are included in the Promotion key figure inInteractive Planning. To do this, right-Select the relevant key figure and selectPromotion list. A window showing this information is then displayed. Note thatthe promotions you see here depend on the products in the selection variant.

You can start an evaluation of the promotion with the Promotion Reports OSS384550 transaction.



Figure 64: Assigning Characteristic Values to the Promotion

After you have created a promotion and entered the planned absolute or percentagechanges, you choose the characteristic combinations for which the promotionis to be planned. You select the characteristic combinations in the selector andassign them to the promotion.

You have to decide the characteristic level at which you want the assignment tobe made. If you choose the Product characteristic, then the product level mustbe the last drill-down level for the assignment. For example, you can first assignsales organizations to the promotion, then sold-to parties, and finally the relevantproducts.

If you want to assign several characteristics to a promotion, you do not createa selection that indicates all the characteristics. For example, display all theproducts for market segment, A and B, plus the products, 1, 2, 3, and 4. Instead,you create a separate selection for each characteristic that is to be assigned toa promotion and assign them in turn.

Example: A promotion is to be used for an entire market. The lowest promotionlevel is 9AMATNR. When defining the selection, you must first select the marketand assign a promotion. The corresponding materials are then chosen in a secondselection.

As of Release SCM 4.1, you also have the option of multiple assignments ofcharacteristic values to a promotion: this option enables you to assign morethan one object to a promotion at the same time. To do this, click on Multipleassignments in the promotion and assign the required characteristics. Note: thepromotion level is always included. When you work with a promotion base, thecharacteristics of the promotion base are automatically copied into the promotion.You can remove characteristics, but you can only add those that are in the



promotion base. Now you can assign characteristics, using either an existingselection or by manually defining a selection. To complete the assignment, selectthe multiple mapping assignment again.

Figure 65: Promotion Statuses and Types

In Promotion Planning without customer participation, after you have processedthe promotion you set the status to Planned, for future to activate the promotion.

In Internet-based Collaborative Promotion Planning, you first set the status asOffered to Customer. The customer can accept the promotion on the Internet(status: Confirmed by Customer) or reject it (status: Rejected by Customer). Thenext step is to activate the promotions confirmed by the customer. Creating apartner at the customer location is a prerequisite of Collaborative PromotionPlanning. To create a collaboration partner, follow this menu path: Supply ChainCollaboration→ Environment→ Current Settings→ Cooperation Partners.

The Status field of the Promotion tab page in the Promotion Planning screendisplays the status of a promotion. If you want to change a status, choose theappropriate icon on the Promotion Planning application toolbar situated at thetop right of the screen.

Your company can have a maximum of 10 promotion attribute types. For example,you might have the promotion attribute types, Store reduction and Media support.

There can be many user-defined attributes for each promotion attribute type. Forexample, the promotion attribute type, Media support, could have the attributes,TV, Radio, and Web.



Updating PromotionsOver time promotions in the future may change. This is especially the case if youare using percentage type promotions. The created promotions are first stored onthe database. After a promotion is activated, it is written to liveCache. As a result,the data is still available after initializing liveCache.

The forecast is typically revised on a periodic basis (weekly/month). Once theforecast data has changed, the percentage promotion is not automatically updated.If you need to update percentage promotions on the basis of new forecast values,you can restore the consistency of the promotion afterwards. To do this, in theSAP Easy Access menu, go to Demand Planning→ Planning→ Promotions→Promotions Management. This presents you with the following options:

� Activate and deactivate promotions: Deactivating deletes the data for thepromotion key figure and resets all activated promotions to the 'in process'status. The date fields are taken into account if they are greater than the timeperiod of all activated promotions; activating resets the selected promotionsto the Planned, for future.

� Update Promotions: Only used if the data for the promotion key figure doesnot correspond to the activated promotions. For all activated promotionsare selected, the data for the promotion key figure is first deleted. For thetime period is defined using the date fields and the time periods for theselected promotions, the selected promotions are also rewritten properlyto the planning area.

Promotional Forecast Data Analysis

Figure 66: Impact of Promotions on the History and Forecast

When you work with promotions, you can show and plan the impact of promotionsseparately.



Future promotions are displayed in the Promotion key figure in interactiveplanning. You can use a macro to ensure that promotions are included in theDemand plan key figure.

There are several methods to measure the impact of a promotion in the past andto estimate the impact of a similar promotion in the future. The methods includemultiple linear regression with or without trend or seasonality.

To generate more exact forecasts, the impact of one-time promotions or deliveryproblems needs to be removed from the actual data. The adjustments are normallymade in the Corrected history key figure, rather than the original key figure.

You can use various automatic methods to adjust actual data. The methods canbe activated from the forecast profile.


The methods are executed in the sequence shown in the above graphic.

The phase-in and phase-out profiles for Lifecycle Planning control the phasing inor launch of new products and the phasing out or discontinuation of old products.

Workday adjustment ensures that higher values are forecast for periods that havemany workdays. Historical data must be standardized for such periods.

With Promotion Planning, you can extract past actions, such as special offers fromthe actual data so that they are not included in the forecast.

You can use outlier correction to automatically correct actual data that is outsidethe tolerance range.

You can also adjust the actual data manually.



You can assign the following elements to a key figure that is to be forecasted:

� A key figure to store the corrected history� A key figure to store the corrected forecast� A key figure to store the ex-post forecasts� A key figure to store the ex-post forecasts for the MLR

You can forecast future demand using the corrected history minus promotions. Ina univariate forecast profile, a promotion value and a processing method can bechosen. There are three options.

1. The field Select is checked. During the execution of the forecast, the historicperiods are selected in which the promotion value contains values in theread version. The outlier correction will change the values of these periods.In the forecast profile, a time series must be maintained for the selection.Existing selections are not affected. If the promotion is changed, deactivatedor deleted, the previous selections remain intact.

2. The field Change is selected. When the forecast is executed, the promotionvalues are deducted from the historical values. However, if the value issmaller than zero, the value is set to zero. These functions are not executed ifthe Reading data of corr. past from planning version indicator is set in theunivariate forecast profile.

3. The fields Select and Change are selected. When you execute the forecast,the values of the promotion key figure are firstly deducted from the historicalvalues. Negative values are not allowed here. If the result value is smallerthan zero, it is set to zero. The corresponding values are then selected andcorrected again by the outlier control.

Note: You can use a Business Add-In (BAdI) to define the promotiondata version when forecasting. This definition may be necessary if thepromotion value data is saved in a version that is older than the readforecast version. This may be necessary if the promotion key figure datais saved in a version other than the read version of the forecast. See note381119.

You can also define a post promotion key figure, and instruct the system tocalculate the actual effect the promotions had on sales, which means how the saleschanged. If you want to correct the history using the planned promotion, you donot need a post promotion key figure.

Post Promotion EvaluationOnce a promotion is over, its performance can be evaluated. The results of theevaluation may cause the promotion to be reused, adjusted, or deleted never tobe used again.



Figure 68: Forecasting Promotions

In the graphic above you can see the planned and actual course of a promotion.The planned curve (in yellow/Top) comprises the baseline data and the plannedpromotion. Similarly the actual data consists of two components � the underlyingtrend and short-term promotion. In this case the actual promotion did not have thedesired effect on sales. You want to store the data from the actual promotion on itsown so that you can separate it from the underlying trend. To do this when definingthe promotion you can define a post-promotion key figure for this purpose.

Depending on the settings you make in the univariate profile for forecasting, thesystem corrects the key figures for producing the forecast in one of two ways:

� If you set the Change values indicator, the post-promotion values aresubtracted from the actual key figure in the promotion period.

� If you set the Select indicator, the system selects all of the periods withinthe horizon of the promotion in the past and performs outlier correction forthese periods. Any historical values that lie outside the tolerance lane arecorrected. In this case you must also set the Outlier correction indicator andmake an entry in the Historical value markings field. For more information,see Univariate Forecasting and subordinate topics.

Post Promotion ReportingPlanners responsible for promotions have the opportunity to run reports on theirpromotions. This function allows you to report on promotions and other keyfigures in a planning area. The information is presented in table form and caninclude data from detail and aggregate levels. Several options are available thatenable you to produce reports that contain the amount of the detail that you require.

A report consists of one or more detailed reports. You can use this transaction inconjunction with both promotions based on promotion bases and those to whichno promotion base has been assigned. If you use promotion bases, you can displayinformation on individual promotions. This is referred to as promotion analysis .



In promotion reporting you can also display promotion attributes. Furthermoreyou can use standard macros to change the display of reports, for instance tochange the color of a key figure.

You create the settings for the report. To do so, choose APO→ Demand Planning→ Planning→ Promotion→ Promotion Reporting. Promotion reports are basedon the data views in a planning area. The data view controls which key figuresappear in a report and which time periods are displayed.

Note: Consider creating a special data view for reporting purposes. Youcan thus choose the key figures that you want to include in your report.

If the report is based on a promotion base, you can only choose from thecharacteristics that are in the promotion base. The order in which you choose thecharacteristics, determines the hierarchy of the characteristics in the report. Ifyou choose the button Standard Settings, the system copies all the characteristicsfrom the promotion base in the order in which they were defined, starting at theleast detailed.

Using Promotion Patterns Derived from Historical DataIn SAP SCM Demand Planning, it is possible to derive promotional uplifts fromhistorical data, create promotion patterns based on these uplifts, and apply thesepatterns to future promotions. In order to do this you must use, Linear regressionfor analysis of the historical data. You can also choose seasonal linear regression(like forecast strategy 35).

In interactive demand planning, select a promotion. Promotion Planning appearson the desktop. Select the Analyze History object view on the application toolbarin the work area. In the dialog box enter the past horizon whose data you wish toanalyze for promotional uplifts. The system executes a linear regression of thehistorical data and creates an ex-post forecast. The results are displayed in theEx-post forecast value line. The difference between the historical data and theex-post estimate is displayed in the Promotion pattern row. Periods where thepromotion pattern amounts to more than 20% of the history are highlighted in red.

Select the highlighted periods. Have the system calculate a promotion pattern bySelecting on Pattern in the work space toolbar and choosing Calculate promotionpattern. Save the pattern by Selecting on Pattern in the work space toolbar andchoosing Save as pattern. Create a promotion and apply to it the promotion pattern





Exercise 13: Creating a Promotion

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a promotion� Create a promotion base and use it in the creation of a promotion� Create a cannibalization group and use it in the creation of a promotion� Apply a promotion in interactive planning

Business ExampleThe marketing manager at the Precision Pump Company is to plan a promotionfor P-102 - to run for the next three months - with the aim of increasing sales forthe 2400 sales organization. This promotion will boost sales for P-102 whilst atthe same time decreasing sales for P-103 and P-104.

Task: Creating a PromotionPromotions are an every day part of the demand planning process. The marketingmanager has asked you to plan a promotion for P-102 - to run for the next threemonths - with the aim of increasing sales for the 2400 sales organization. Thepromotion should raise sales by 100 units in the first month, by 200 in the secondand by 100 in the third. One problem with this promotion is that it will have anegative impact on sales of P-103 and P-104. Take the necessary steps to ensurethat the promotion is included in the demand plan.

1. Define the key figure assignment and the product planning level for yourpromotions.

In this example, the last assignment for the planning area, DPPA##, and thekey figure, 9APROM1, should be made at the product level.

2. Create a promotion base, CUSTOMER##, for the Product and Sold-to partycharacteristic levels valid for the next 3 years.

3. Now create a cannibalization group, PUMP##, so that the sales of 5 units ofP-102 will decrease the sales of P-103 by 1 unit and P-104 by 2 units.

4. In Interactive Planning, create and save an absolute promotion with thefollowing parameters:

Short text Promo##Description Promotion, group ##Promotion Base CUSTOMER##




Type AbsoluteCannibalization Group PUMP##Number of periods 3Start of promotion The beginning of the next monthPlanning Version 000Promotion Key figure 9APROM1Planning Key figure FORECAST

5. Use Multiple assignment to assign the sold-to party from Germany (DE) andproduct P-102 with the CUST (sold-to party) characteristic to the promotion.The promotion should increase sales of product P-102 by 100 in the firstmonth, 200 in the second and then 100 again in the third. Activate thepromotion and save it.

6. Return to interactive planning to see if the promotion data is displayed and ifyour default macro sums this data for the demand plan.



Solution 13: Creating a PromotionTask: Creating a PromotionPromotions are an every day part of the demand planning process. The marketingmanager has asked you to plan a promotion for P-102 - to run for the next threemonths - with the aim of increasing sales for the 2400 sales organization. Thepromotion should raise sales by 100 units in the first month, by 200 in the secondand by 100 in the third. One problem with this promotion is that it will have anegative impact on sales of P-103 and P-104. Take the necessary steps to ensurethat the promotion is included in the demand plan.


In this example, the last assignment for the planning area, DPPA##, and thekey figure, 9APROM1, should be made at the product level.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Promotion→ Settings→Maintain PromotionKey Figures.

Make sure an entry exists for the DPPA## planning area, the key figure,9APROM1, and 9AMATNR as the characteristic for the promotionlevel.

b) Select Save.

2. Create a promotion base, CUSTOMER##, for the Product and Sold-to partycharacteristic levels valid for the next 3 years.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Promotion→ Settings→Maintain PromotionBase.

b) Enter DPPA## for the planning area and select Create newpromotion base on the tool bar.

c) In the table in the lower part of the screen, enter CUSTOMER## as

the Promotion Base and then select Continue just to the right ofthe field.

d) Enter a start date of the beginning of next month and an end date of 3years in the future.

e) Select 9APROM1 as the promotion key figure and be sure the product(9AMATNR) and sold-to party (CUST) characteristics are listed.

Then select Save.

f) Select Back to return to the session manager.Continued on next page



3. Now create a cannibalization group, PUMP##, so that the sales of 5 units ofP-102 will decrease the sales of P-103 by 1 unit and P-104 by 2 units.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning → Planning → Promotion → Settings → MaintainCannibalization Group.

b) Enter PUMP## as the ID with description P-102, P-103, and P-104.

c) Enter the following in the table.

Material FactorP-102 5P-103 1-P-104 2-

d) Select Save.

4. In Interactive Planning, create and save an absolute promotion with thefollowing parameters:

Short text Promo##Description Promotion, group ##Promotion Base CUSTOMER##Type AbsoluteCannibalization Group PUMP##Number of periods 3Start of promotion The beginning of the next monthPlanning Version 000Promotion Key figure 9APROM1Planning Key figure FORECAST


Select Promotion planning.

Select Create promotion.

Enter the parameters and save..




5. Use Multiple assignment to assign the sold-to party from Germany (DE) andproduct P-102 with the CUST (sold-to party) characteristic to the promotion.The promotion should increase sales of product P-102 by 100 in the firstmonth, 200 in the second and then 100 again in the third. Activate thepromotion and save it.

a) A table will appear in the upper portion of the screen.

b) Click the Assign Multiple Objects button .

c) Select Manuel Selection and click the Define button.

d) In the dialog box enter the APO product P-102, country DE, and click

Execute (F8)

e) Click the Assign Multiple Objects button on the toolbar.This takes you back to the promotion data maintenance screen.

f) Enter promotion values in the total row. Click enter and the systemcalculates the values for the cannibalization group products.

100 200 100

g) To make the promotion effective for future requirements, changethe promotion status to Planned, for future. To do this, use the tool

bar above the promotion table. Click Changestatus and choose Planned, in the future. Select YES in the dialog boxdisplayed.

h) Save the promotion.

6. Return to interactive planning to see if the promotion data is displayed and ifyour default macro sums this data for the demand plan.

a) Select Interactive Planning to return to theInteractive Planning table.

The promotion values are displayed in the promotion key figure. Besure to check the values of the cannibalization group products as well.

A macro is being used to calculate the Final forecast.

b) Add the characteristics Sales Organization and Country to the headerand check each sales org. to be sure this promotion only applies tocustomers in Germany.



Lesson Summary

You should now be able to:� Explain the purpose of promotions and why they are separate from the

forecast.� Explain the settings and levels needed to use Promotional Planning� Define promotions and assign characteristic values to it� Explain how promotions are extracted from historical data

Related InformationFor more information see the following consulting notes:

� 0000454644 Consulting: Lock logic in promotion planning� 0000438307 Integrated campaign/promotion planning with SAP SCM &

CRM� 0000434621 Consulting: Distribution of the promotion total on details� 0000384550 APO 3.0 Promotion: Consulting: Reporting� 0000367031 Consulting for Promotion Update: /SAPAPO/PROMO-

TION_UPDATE_30� 0000361640 APO 3.0 Promotion: User-Exit (BADIs) with SP8� 0000356589 APO 3.0 Promotion: User-Exit (BADIs) with SP7� 0000337249 Promotion planning: Promotion with various characteristics� 0000327725 Advice: Example of how to import external promotions


SCM220 Unit Summary

Unit SummaryYou should now be able to:� Explain the purpose of promotions and why they are separate from the

forecast.� Explain the settings and levels needed to use Promotional Planning� Define promotions and assign characteristic values to it� Explain how promotions are extracted from historical data


Unit Summary SCM220



Test Your Knowledge

1. You can use Promotion Planning to model only one-time events, such asan earthquake.Determine whether this statement is true or false.□ True□ False

2. A single promotion has a positive influence on the sales of products fromone cannibalization group.Determine whether this statement is true or false.□ True□ False

3. It is advisable to use like profiles for new products and products with longlifecycles.Determine whether this statement is true or false.□ True□ False

4. Which parameters do you need to enter for defining a promotion?Choose the correct answer(s).□ A End date□ B Time series variable□ C Number of periods□ D Threshold values□ E Forecast values

5. The profile for Lifecycle Planning controls the launchof new products.Fill in the blanks to complete the sentence.

6. In SAP SCM Demand Planning, you can use the phase-in and phase-outprofiles to represent the launch, growth, andphases.Fill in the blanks to complete the sentence.



Answers

1. You can use Promotion Planning to model only one-time events, such asan earthquake.

Answer: False

You can use Promotion Planning to model one-time events or repeatedevents.

2. A single promotion has a positive influence on the sales of products fromone cannibalization group.

Answer: False

A single promotion has both a positive and negative influence on the sales ofproducts from one cannibalization group.

3. It is advisable to use like profiles for new products and products with longlifecycles.

Answer: False

Like profiles should be used for new products and products with shortlifecycles.

4. Which parameters do you need to enter for defining a promotion?

Answer: C

When you define a promotion, you need to enter the following parameters:start date, number of periods, version, and key figure to which the promotionsignifies.

5. The phase-in profile for Lifecycle Planning controls the launch of newproducts.

Answer: phase-in

6. In SAP SCM Demand Planning, you can use the phase-in and phase-outprofiles to represent the launch, growth, and discontinuation phases.

Answer: discontinuation


Unit 6Mass Processing

Unit OverviewThis unit will help you configure and execute mass processing for macros,forecasts, and demand plan releases. You will also understand how sales quantitiesare released to Production Planning and explain how data is distributed betweenlocations.


� Explain how Mass Processing fits into the demand Planning process� Describe how sales quantities are released to Production Planning� Explain how data is distributed between locations� Configure and execute mass processing for macros, forecasts, and demand

plan releases

Unit ContentsLesson: Mass Processing ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .224

Exercise 14: Mass Processing.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .239Exercise 15: Descriptive Characteristics (Optional) . . . . . . . . . . . . . . . . . . .247Exercise 16: Descriptive Characteristics (Optional) . . . . . . . . . . . . . . . . . . .251


Unit 6: Mass Processing SCM220

Lesson: Mass Processing

Lesson OverviewThis lesson will help you get an overview of mass processing. You will learn toexecute mass processing functions for macros, forecasts and to apply demand planreleases to SCM and R/3. You will also become acquainted with the tasks ofactivities, profiles, and jobs.


� Explain how Mass Processing fits into the demand Planning process� Describe how sales quantities are released to Production Planning� Explain how data is distributed between locations� Configure and execute mass processing for macros, forecasts, and demand

plan releases

Business ExampleNow that you�ve become familiar with the functions of interactive demandplanning, you will execute them in examples like producing systems in massprocessing. Alerts should be generated for forecasts that exceed the error limits setin the diagnosis group. You should be able to check the alert monitor and work theexceptions interactively. After correcting the forecast, the macro for calculatingthe sales plan and releasing the forecast should be executed in the background.

Mass Processing FunctionDuring the demand planning process, planners will typically be working with largeamounts of production/location combinations. This may be further complicated byuse of customers, divisions, product Hierarchies, or several other organizationalattributes. An interactive execution of the complete demand planning process isthus not possible.

To simplify and speed up this process, many of the steps will be performed ina batch or background job that processes many different characteristic valuecombinations one after another. SAP refers to this process as Mass Processing.

The demand planning process is normally organized in cycles. At the beginning ofa cycle, new historical data is loaded and characteristic value combinations aregenerated through batch processing. Then the forecasts are calculated. Afterwards,demand planners have time to check their forecasts and make corrections. At theend of the cycle, the demand plan is calculated and released.


SCM220 Lesson: Mass Processing

Figure 69: Mass Processing Functions

The above figure lists the mass processing actions that can be performed in SAPSCM Demand Planning. These tasks can be run individually, or strung togetherin order to make the process more efficient. Depending upon the type of activityrequired, an organization may have dozens of background jobs set to run at aspecific time or triggered by a specific event.

Note: The graphic points out two options for creating planned independentrequirements. Planned independent requirements are only created in R/3when further supply planning is done in R/3. When supply is planned inSNP or PP/DS in SMC, it should also be released in SCM.



Figure 70: Steps in Mass Processing (1)

The above figure depicts the procedure for mass processing. �Action� signifiesany one of the following activities:

� Macro execution� Forecasting� Release of data to an order-based liveCache (SNP/PPDS) or to SAP EEC

(demand management)�

You can perform several actions within one job if the actions have the sameactivity. For example, you may start a batch job that runs several macros at thesame time and then releases the results to production planning.

The sequence in which actions within one activity are processed depends on thesequential numbers you define for them in the activity.

Note: The system performs all the actions for the first characteristicvalue before processing the second characteristic value. If you wantthe system to perform a specific action for all the characteristic valuesbefore it starts the next action, you must define separate planningactivities.

Note: SAP Development recommends that you run the Forecast activitiesseparate from Macros. This is related to performance.

For each job, you can define the selection of data that should be taken into accountwhen processing the job and the level to which it should be aggregated before theactions are executed. Planning jobs are reusable.



Figure 71: Steps in Mass Processing (2)

Before creating a background job you will have to define various profiles andactivities. The graphic above identifies what steps are necessary to execute aparticular functionality. To create activities, use this menu path: AdvancedPlanning and Optimization→ Demand Planning→ Environment→ CurrentSettings→ Define Activities for Mass Processing.

Before you can create a planning activity, you need to have either an existingmacro, forecast profile, release profile, or transfer profile.

Use the following menu path to create jobs: Advanced Planning and Optimization→ Demand Planning→ Planning→ Demand Planning in the Background→ Create Demand Planning in the Background This process correspondsapproximately to SAP�s default background job. Some of the parameters arespecific to the SCM demand planning function of SAP.

Releasing Forecast Data to Demand PlanThe demand planning data is saved in time series. Once the forecast has beencompleted in SCM demand planning, and after the various stakeholders havereached an agreement, the forecast quantities are released to liveCache as plannedindependent requirements.



Figure 72: Releasing the Demand Plan

Two options exist for releasing the demand plan to order based liveCache.

� Manually: for a small number of product/location combinations� Background (mass processing): for a large number of product/location

combinations

Using the following menu path, you can trigger a manual release: AdvancedPlanning and Optimization→ Demand Planning→ Planning→ Release→Release to Supply Network Planning

When releasing the demand you must specify:

� Planning Area, Version, and Key Figure� Target Versions of Order Based liveCache� Time Horizon� Periodicity: Type of time buck and number of buckets� Selection of characteristic values (product/location)

The Create New Orders indicator means that the released amounts will be addedto the planned independent requirements that already exist. It is a good idea touse this setting only if you want to release from multiple planning areas. If youchoose to release interactively, the indicator is called Add Dataon that screenbut has the exact same functionality.

Release SCM 4.1 contains the extra option of releasing planned independentrequirements from InfoProviders. This option is used when neither demandplanning in SCM nor demand management in EEC is used, thus when plannedindependent requirements must be imported from other systems. In this case,



preliminary planning from non-SAP systems is extracted into an InfoProvider(InfoCube or ODS object) and can then be released from the InofProvider intoSCM or ECC. This scenario does not require a DP time series.

Figure 73: Location Split

If the Location characteristic is contained in the Demand Planning planning area,the sales quantities are disaggregated to the locations automatically. If you want touse the allocation in the location split table for products, you do should not specifythe location characteristic, (i.e., 9ALOCNO).

For example, you can use the product split function to distribute a product groupto the members. If a product split has been maintained for a product, it will alwaysbe taken into account.

If you do not use a characteristic in demand planning that supports your �stockmaterial number�, you can use the product split table to break this down. Forexample, some companies forecast by UPC/EAN code. This code my representseveral products in your inventory. In order to get the demand down to the productlevel you must define the proportional split from the UPC/EAN code to youractual product master code.



Releasing with Descriptive Characteristics

Figure 74: Releasing with Descriptive Characteristics

Normally, planned independent requirements are released for product and locationcombinations. For example, if you created your demand plan at the product level,quantities are disaggregated down to the location level and created for all validlocations by releasing the planned independent requirements.

Notice that you can also use descriptive characteristics to create the plannedindependent requirements for sold-to parties. For example, if you release ademand plan with descriptive characteristics, the system creates an independentrequirement for every value of the descriptive characteristic. For example, ifyou plan requirements at the customer level and want to plan production for 20customers, the system creates 20 planned independent requirements for eachperiod and not just one as it would, if there were no descriptive characteristics.

Descriptive characteristics are used to prioritize requirements. To do this, thesupply planning of receipt elements are linked to the original requirement(pegging). Descriptive characteristics thus only make sense in the context of CTMor PP/DS. If the incoming order quantities for a customer exceed the plannedindependent requirements, more quantity is produced for this customer. Theplanned independent requirements for the remaining customers do not change.This means that in times of limited resources, goods would be produced for higherpriority customers first.

To set descriptive characteristics, you use consumption groups in which you assignfields from the ATP field catalog to the characteristics from Demand Planning.You maintain these consumption groups in the product master and use them whenyou release the demand plan.



Release ProfileIn order to process the release to the liveCache in the background, you mustmaintain a release profile with the following transaction: APO→DemandPlanning→ Environment→ Maintain Release Profile

Figure 75: Release Profile

The key figure you release must be a quantity key figure. The key figure you willrelease will be release to Order Based liveCache in the form of an order. Everyorder in Order Based liveCache is given an ATP Category. This corresponds tothe dispo-elements concept in SAP ECC. You can define different categories incustomizing, for example FA, FB, and FC for planned independent requirements.You can use these categories to set up a requirements prioritization.

The system creates or updates the orders in liveCache according to their category.The category is determined during the release to Supply Network Planning basedon the following factors:

1. Whether a category has been entered in the release profile. If so, this categoryis used.

2. If a category has not been entered in the release profile, was a category setduring the definition of the requirements strategy in Customizing? You define thestrategy for the product in the Proposed strategy field of the Demand tab pagein the product master record. If a category was set during the definition of therequirements strategy in Customizing, this category is used.

3. If not, the category, FA, which means forecasts, is used.



Transfer to SAP ECC Demand Management

Figure 76: Transfer Profile

Instead of releasing demand to liveCache you can also transfer demand to ECCdemand management. This is done if you are only implementing demand planningand using SAP ECC for MRP planning. If you want PIRs to be visible in bothSAP ECC and SAP SCM, you can transfer demand to SAP ECC and transfer thePIRs to SAP SCM via CIF. The key figure you transfer must be a quantity keyfigure. The remaining entries correspond either to the release profile or to thetransfer on demand management in SAP ECC.



Prerequisites for transferring the demand plan from SAP SCM to SAP ECC:

� You have set up your products in SAP SCM (preferably through the CIF)� You have set up your Locations in SAP SCM (preferably through the CIF)� You have created a data view for this task in SCM. The use of a separate data

view to transfer a requirements plan to ECC has performance benefits.

� A planning horizon for the future only (no historical horizon unless youwant to transfer the historical PIRs too)

� A planning buckets profile with one periodicity only (if it containsmore than one periodicity, the job is aborted with an error)

Note: In the result, in SAP ECC Demand Management plannedindependent requirements are created in the same bucketsas those of the data view on which the mass processing jobis based.

� Only the key figure(s) that you want to transfer to SAP ECC.� No rows of actual data (unless you want to transfer them to SAP ECC)

� You have set the planning strategy of each material in ECC.

If you do not enter an SAP ECC requirements type, the requirements type of themain strategy will be derived from the ECC material master.

You set the PIR version and whether the PIRs are active in the transfer profile.The REQUIREMENTS_CREATE function only exists in the ECC System and iscalled up by the SAP SCM System via RFC. All PIRs in the transfer time seriesare erased. Changes in planned independent requirements are carried out in SAPSCM and not in the SAP ECC system.

Controlling the Release to liveCacheFor many organizations, the demand planning process is done on an aggregatelevel. Thus, for example the forecast is created on product group levels and inmonths. The most common form is executing your demand planning in weeklyor monthly buckets. This of course depends on your industry and the nature ofyour products.

For the supply planning process it is often necessary to look at requirements inmore detail, for example, on the basis of days or weeks. When transferring thefinal results of the demand planning process, either manually or in the background,users can control the disaggregation of larger time periods to smaller time periods.

The periodicity of the release (for example week or month) can be defined usingthe planning buckets profile. You can only use planning buckets profiles that arecompatible with the storage buckets profile of the planning area. If the storagebuckets profile consists, for example, of weeks and months, you can use allplanning buckets profiles that consist of weeks and months for releasing. You



cannot use planning buckets profiles containing periodicity days or fiscal yearvariants. If no planning buckets profile is specified, the system uses the shortestperiodicity possible for interactive release, so-called technical periods.

If, for example, a planning buckets profile contains weeks and months, the data forweeks which falls in two different months is divided into two technical periods.The system aggregates the data on a time basis according to the planning bucketsprofile or it reads the data in the technical periods. If a daily buckets profile (aplanning buckets profile having only periodicity Day) is used, the system canbreak down the data into days.

Note: The effect of the daily buckets profile starts at the beginning of therelease period (see above), even if this is in the past. If this function is notsufficient, you can use BAdI /SAPAPO/SDP_RELDATA. You can use thisBadI, for example, to break down the data from months to weeks if thedata in the DP exists only in months, but if you need it in weeks in the SNP.

When releasing in the background the period of the release (Periodicity),corresponds to the period defined by the planning folder/data view used. Therelease in the technical periods is not possible within the mass processing (unlessthe storage buckets profile of the planning area uses days or it consists of onlyone periodicity). Optionally you can specify a daily buckets profile in the releaseprofile (refer to transaction /SAPAPO/MC8S). The effect of the daily bucketsprofile starts at the beginning of the release period (see above), even if this is inthe past.

Note: Note that (�offsets�) from the data view definition are not takeninto account during transfer.

If you defined weekly and monthly buckets in the Storage Buckets profile of yourDemand Planning planning area, the weekly demands are created interactively. Inmass processing, you can use the data view to control whether weekly or monthlyrequirements are to be created.

If the Storage Buckets profile from the Demand Planning planning area doesnot contain days, you can still split the sales quantities over days using the dailybuckets profile.



If the Storage Buckets profile from the DP planning area does not contain days,you can still split the sales quantities over days using the daily buckets profile.How this split is made depends on the settings in the SNP demand profile screenarea in the SNP 2 tab page of the product master. To define the period split, youchoose one of the following options:

� Blank - The data is disaggregated and released to all of the workdays inthe specified horizon.

� 1 - The data is disaggregated to all of the workdays in the specified horizon,but released only for those days that lie in the present and future

� 2 - The data is disaggregated to the workdays in the present and future,and then released for the same days.

When the release creates an order, it is always scheduled for 0:00 hours. If thistime is not contained in the time stream, the day is not recognized as a workday.Maintain your time stream so that 0:00 hours of the time zone UTC, or thelocal time zone of the location, is equal to the start time of the time stream.If you use days as the smallest time bucket in demand planning, and no timestream (calendar) is maintained for the storage buckets profile, the values forthe month, for example, will be distributed evenly across all days in the month.During transfer to the SNP, this can mean that even though the non-workdaysare recognized, the requirements for these days are shifted to the Monday, thusincreasing the value accordingly.

Note: With BADi SAPAPO/SDP_RELDATA - Release of DP to SNP,you use method CHANGE_RELDATA to edit the requirements releasedfrom DP to SNP (quantities / dates).

Note: With BADi /SAPAPO/SDP_RELSTRAT - Set RequirementStrategy on Release, you have the option of dynamically setting therequirement strategy.

After the planned sales quantities have been checked for feasibility in SNP orPP/DS, the results can be transferred back to demand planning. Macros arethen used to analyze the differences between the demand plan and the feasiblequantities. Alerts are generated if these differences are too large.

Creating ActivitiesIn order for mass processing to take place, you must define and activity. Activitiesdefine which tasks are going to be executed:

� Execute Macro� Execute Forecast� Release to liveCache� Transfer to SAP ECC Demand Management



From the SAP Easy Access menu, choose APO→ Demand Planning→ Planning→Demand Planning in the Background→ Define Activities for Mass Processing.Each activity will be created for a planning book and a data view. These specialplanning books/data views for batch processing contain only the key figures,macros, and time buckets profiles needed for the background job.

Each activity can consist of one or more steps. When you set up the activity forforecasting you may define the following:

� Master Forecast Profile� Profile for univariant, composite, or MLR forecast.� Always use job profile? Here, you can set whether the activity profile or the

forecast profile assigned to the selection should be used.� Generate Alerts� Delete old alerts� Generate and assign profile. In Release SCM 4.1, you can automatically

generate and assign profiles with Forecasting Strategy 56. If an error isexceeded in the diagnosis group, you can set the system to automaticallygenerate a new profile. You can either have new profiles created for allselections periodically, or only once and after that have them replaced onlyin the case of large mistakes.

You must define the macros or the release/transfer profiles for the remaining tasks.

Setting Up Demand Planning Background Jobs

Figure 77: Running a Job



Use the following menu path to create jobs: Advanced Planning and Optimization→ Demand Planning→ Planning→ Demand Planning in the Background→Create Demand Planning in the Background

To monitor whether jobs have been successfully executed, use the job overview(transaction SM37) and the following menu path: Advanced Planning andOptimization→ Demand Planning→ Planning→ Demand Planning in theBackground→ Job Overview of Demand Planning in the Background.

The job overview lists your jobs and their system status. For a detailed results list,see the spool list. Errors are indicated by a red traffic light.

During revision, to receive a list of the characteristic combinations with the status,select: Demand Planning→ Planning→ Demand Planning in the Background→Check Demand Planning in the Background.

Process ChainsAs of Release SCM 4.1, you can use the Business Information Warehouse (BW)function in connection with SCM transactions. They enable you to set up chainsof background jobs. You can program a chain in demand planning, for example, toload data from a data source into an InfoCube, generate new characteristic valuecombinations that load the data from the InfoCube into a planning area, create aforecast, and release the data to SNP. Each step should only be executed if theprevious one was completed without mistakes.

Figure 78: Process Chains



You can complete the following process types in demand planning using processchains:

� Generate characteristic value combinations� Add BOM information� Initialize planning area (create time series objects)� DP background processing for forecasts, macros, and releasing� Calculate proportional factors� Load data from InfoCubes� Copy planning versions� Realign data� Consistency checks for time series� Update, copy, and change promotions� Establish alerts in the background.



Exercise 14: Mass Processing

Exercise ObjectivesAfter completing this exercise, you will be able to:� Set up mass processing for forecast creation� Execute macros and release planned independent requirements in the

background

Business ExamplePrecision Pump's demand planning processes have been interactively tested andadjsted until now. Now they will be automated so that they can be periodicallyplanned in the background.

Task:1. Create planning activity FOR## for your DPBOOK## planning book and

your DEMAND PLAN data view. Enter your MASTER master forecastprofile and the composite prognosis profile.

2. Create job FOR## for mass processing using your DPBOOK## planningbook, your DEMAND PLAN data view, and version 000. Enter activityFOR## and selection PRODUCT##.

Set the aggregation level to product. Check the number of planning objects.

3. Schedule the job and review the results. Make sure that the forecast has beenmade for all three products, P-102, P-103, and P-104.

4. Create transfer profileTRAN## for the transfer to ECC demand management.Create a transfer profile for the transfer to inactive version ##, using thefollowing data:

Planning area DPPA##Key figure FINFORVersion 000Product characteristic 9AMATNRLocation characteristic 9ALOCNOR/3 requirements type <Leave blank>R/3 version ##Active Do not select




5. Create planning activity ACT## for your DPBOOK## planning book andyour DEMAND PLAN data view. Create an action for the DEMAND PLANCALCULATION macro and one for your transfer profile TRAN##.

6. Create job JOB## with the description Group ## Macro and Transfer formass processing using your DPBOOK## planning book, your DEMANDPLAN data view, and planning version 000.

Enter your activity, ACT##, and the PRODUCT## selection. Set theaggregation level to product/location.

7. Schedule the job and review the results. Make sure that planned independentrequirements were generated in ECC Enterprise, in inactive version ##. Forexample, for product P-102 and plant 2400.

8. In the SAP ECC system check whether the PIRs were generated in demandmanagement.



Solution 14: Mass ProcessingTask:1. Create planning activity FOR## for your DPBOOK## planning book and

your DEMAND PLAN data view. Enter your MASTER master forecastprofile and the composite prognosis profile.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Demand Planning in the background→Define Activities for Mass Processing.

b) Enter planning activity FOR## with the description Forecast andchoose Create.

c) Select your planning book DPBOOK## and your data view DEMANDPLAN.

d) Enter your MASTER master forecast profile, select the Composite

Forecast Profile radio button, and select Adopt Action.

e) Select Save.

2. Create job FOR## for mass processing using your DPBOOK## planningbook, your DEMAND PLAN data view, and version 000. Enter activityFOR## and selection PRODUCT##.

Set the aggregation level to product. Check the number of planning objects.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Demand Planning in the Background→Create Demand Planning in the Background.

b) Specify FOR## as the Job number and Forecast Group## as the job

name. Then select Execute.

c) Enter your planning bookDPBOOK##, your data view DEMAND

PLAN, and Version 000. Then select Execute.

d) Enter activity FOR##,.

e) In the Chars section at the bottom select the radio button next to ONEand choose your selection ID PRODUCT##.

f) Click the Aggregation Level button.In the aggregation level deselect all and only select APO Product(9AMATNR). To check that the 3 planning objects have been planned,use the Number of Planning Objects button.

g) Select Save.Continued on next page



3. Schedule the job and review the results. Make sure that the forecast has beenmade for all three products, P-102, P-103, and P-104.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Demand Planning in the Background→Schedule Demand Planning in the Background.

b) Enter job number FOR##, then select Execute.

c) Select Immediate and then Save.

d) Use the following menu path to check if the job is finished: AdvancedPlanning and Optimization→ Demand Planning→ Planning→Demand Planning in the Background→ Job Overview of DemandPlanning in the Background.

e) Accept the defaults and select execute.

f) Check the status of your job. For further information select the joband select the spool icon.

g) To check the results in interactive planning use the following menupath:Advanced Planning and Optimization→ Demand Planning→Planning→ Interactive Demand Planning.

h) Double select on your selection ID PRODUCT##.

i) Double-select the products in the Selection window in turn.

j) Planning data can now be seen in the forecast key figure.

4. Create transfer profileTRAN## for the transfer to ECC demand management.Create a transfer profile for the transfer to inactive version ##, using thefollowing data:

Planning area DPPA##Key figure FINFORVersion 000Product characteristic 9AMATNRLocation characteristic 9ALOCNO




R/3 requirements type <Leave blank>R/3 version ##Active Do not select

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Environment→ Maintain Transfer Profiles.

b) Enter transfer profile TRAN## and then select Create.

c) Enter the data from the table above and select Save.

5. Create planning activity ACT## for your DPBOOK## planning book andyour DEMAND PLAN data view. Create an action for the DEMAND PLANCALCULATION macro and one for your transfer profile TRAN##.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Demand Planning in the Background→Define Activities for Mass Processing..

b) Enter planning activity ACT## with the description Macro andTransfer and then select Create.

c) Select your planning book DPBOOK## and your data view DEMANDPLAN from the list.

d) Select on the Macro tab page.

e) Select the Copy past data, calculate final sales macro and clickCopy Action.

f) Increase the action counter by selecting Go to Next Action. Nowselect the R/3 Transfer prfl. tab page.

g) Enter your transfer profile TRAN##, and select Adopt Action.

h) Select Save.

6. Create job JOB## with the description Group ## Macro and Transfer formass processing using your DPBOOK## planning book, your DEMANDPLAN data view, and planning version 000.




Enter your activity, ACT##, and the PRODUCT## selection. Set theaggregation level to product/location.

a) Follow this path:Advanced Planning and Optimization→ DemandPlanning→ Planning→ Demand Planning in the Background→Create Demand Planning in the Background.

b) Enter Job number JOB## and the description Group ## Macro and

Transfer and then select Execute.

c) Enter your planning book DPBOOK##, your data view DEMAND

PLAN, and Version 000. Then select Execute.

d) Enter activity ACT##. In the Chars section at the bottom select theradio button next to ONLY and choose your selection ID PRODUCT##.

e) Select the Aggregation Level button. Inthe aggregation level deselect all and only select Location and Product.

f) Select Save.

7. Schedule the job and review the results. Make sure that planned independentrequirements were generated in ECC Enterprise, in inactive version ##. Forexample, for product P-102 and plant 2400.


b) Enter Job number JOB## and select Execute.

c) Select Immediate, then select Save.

d) To check on the status of your job follow the menu path: AdvancedPlanning and Optimization→ Demand Planning→ Planning→Demand Planning in the Background→ Job Overview of DemandPlanning in the Background.

e) Accept the defaults and execute. For more information check thespool file.




8. In the SAP ECC system check whether the PIRs were generated in demandmanagement.

a) Logistics → Production → Production Planning → DemandManagement→ Planned Independent Requirements→ Display.

b) Enter material P-102, plant 2400.

c) Select the Selected version radio button and enter version ##.

d) Display the planned independent requirements for product (Material),P-102, and location (Plant), 2400 by selecting the enter button.





Exercise 15: Descriptive Characteristics(Optional)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a consumption group to use descriptive characteristics� Assign the consumption group to a product.

Business ExampleYour company wants to use descriptive characteristics to further define yourplanning agianst planned independent requirements. Since you collaborate withcertain customers, you would like to release a specific customer forecast forthese customers.

Task:In order to release the forecast with descriptive characteristics, create acomsumption group and assign the consumption group ot the product T-F2##.

1. Create consumption group T-F2## with a description Group ## ConsumptionGroup for your planning area DPPA##. The consumption group shouldcontain the characteristics Product/Location, Customer, and Sales Org. as inthe table below.

DP Chars Fld Catalog9ALOCNO WERKS

9AMATNR MATNR

CUST KUNNR

SALESORG VKORG

2. Add your new consumption group (T-F2##) to the product master forT-F2## at 2400.



Solution 15: Descriptive Characteristics(Optional)Task:In order to release the forecast with descriptive characteristics, create acomsumption group and assign the consumption group ot the product T-F2##.

1. Create consumption group T-F2## with a description Group ## ConsumptionGroup for your planning area DPPA##. The consumption group shouldcontain the characteristics Product/Location, Customer, and Sales Org. as inthe table below.




DP Chars Fld Catalog9ALOCNO WERKS

9AMATNR MATNR

CUST KUNNR

SALESORG VKORG

a) Use the IMG menu path SPRO→ Reference IMG→ AdvancedPlanning and Optimization→ Supply Chain Planning→ DemandPlanning (DP)→ Basic Settings→ Consumption Group→ MaintainConsumption Group

b) Click Insert Row.

c) Enter Consumption Group T-F2##, with the description Group ##Consumption Group, and DPPA## as the planning area, and pressenter.

d) Select your new entry and click Choose.

e) Click on the DP Charac. Assignment tab.

f) Select CUST, then click Column Left; Previous....

g) Select SALESORG, then click Column Left; previous ....

h) Select the Field Catalog Assignment tab.

i) Select KUNNR.

j) In the Consumption Group tab page select CUST, and click ColumnLeft; previous ....

k) Enter through any warnings

l) Click on the Field Catalog Assigmt tab and select VKORG

m) In the Consumption Group tab page select SALESORG, then clickColumn Left; previous ....

n) Click Save .




2. Add your new consumption group (T-F2##) to the product master forT-F2## at 2400.

a) Use the SCM menu path Advanced Planning and Optimization→Master Data→ Product→ Product.

b) Enter your product number T-F2## and location 2400 and clickChange.

c) Click on the Demand tab.

d) Enter your consumption group T-F2## in the consumption mode field.

e) Click Save .



Exercise 16: Descriptive Characteristics(Optional)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Release the forecast with desciptive characteristics� View descriptive characteristics in order-based LiveCache� Explain the consumption of customer specific forecast quantities

Business ExampleNow that you have created a consumption group to assign descriptive charateristicsto your forecast, you will need to use that consumption group in the releaseof the forecast to complete the process. To test this procedure, you will releasethe foecast interactively.

Task:Release the forecast interactively for select products and customers withdescriptive characteristics Customer and Sales Org. Check the results of therelease and test the consumption by customer specific orders.

1. Release the forecast with using consumption group T-F2##. Release theDemand Plan key figure from your planning area PLAN## to version 000 ofthe LiveCache for T-F2## for the next 90 days.

2. After the release is complete, check order-based LiveCache using theProduct View for T-F2## at location 2400 for the descriptive characteristics.

3. Execute a product heuristic planning run for T-F2## at 2400 to create asupply plan.

4. Now test the consumption for a specifc customer 2401 by entering a salesorder for 10 units of T-F2##.

5. Review the Product View again to check if consumption took place.

6. Does your sales order have any characteristics?

7. Did consumption take place properly? If so what dates and quantities?

8. Go to the Overview tab and restrict the planned independent requirementsby sold-to party 2402.



Solution 16: Descriptive Characteristics(Optional)Task:Release the forecast interactively for select products and customers withdescriptive characteristics Customer and Sales Org. Check the results of therelease and test the consumption by customer specific orders.

1. Release the forecast with using consumption group T-F2##. Release theDemand Plan key figure from your planning area PLAN## to version 000 ofthe LiveCache for T-F2## for the next 90 days.

a) The menu path is: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Release→ Release Demand Planning toSupply Network Planning.

b) Enter the following data and click Execute.

Field Name ValuePlanning Area DPPA##

Planning version 000

Key Figure FINFOR

TargetPlanning Version 000

Category Leave blank

HorizonFrom date Current date

To date Three months fromtoday

PeriodicityDaily Buckets ProfileObject select.Product T-F2##

ExtendedConsumption Group T-F2##

All orders Select




2. After the release is complete, check order-based LiveCache using theProduct View for T-F2## at location 2400 for the descriptive characteristics.

a) Use the menu path Advance Planning and Optimization→ ProductionPlanning→ Interactive Production Planning→ Product View

b) Enter version 000, product T-F2##, location 2400 and clickExecute.

c) Select one of the FC req line items and click the characteristicsicon.

3. Execute a product heuristic planning run for T-F2## at 2400 to create asupply plan.

a) Click to switch to the change mode.

b) If the Propagation Range popup window appears, click .

c) Click to execute heuristics from the productmaster

d) Accept the defaults in the ensuing dialog box by clicking , then

click to save the planning results.




4. Now test the consumption for a specifc customer 2401 by entering a salesorder for 10 units of T-F2##.

a) In the SAP ERP system use the menu path Logistics→ Sales andDistribution→ Sales→ Order→ Create

b) Enter the following data in the initial entry screen and click .

Field Name ValueOrder Type TA

Sales Org 2400

Distribution channel 10

Division 00

c) Enter the following data into the Sales Order Entry screen and click

.

Field Name ValueSold-to party 2401

Ship-to party 2401

PO number ##

SalesReq. Del. Date Two weeks from today

Material T-F2##

Order quantity 10

5. Review the Product View again to check if consumption took place.

a) In SAP SCM use the menu path Advance Planning and Optimization→ Production Planning→ Interactive Production Planning→ ProductView

b) Enter version 000, product T-F2##, location 2400 and clickExecute.

c) Select one of the FC req line items and click the characteristicsicon.

6. Does your sales order have any characteristics?

a) Click the Characteristics icon for the Sales Order line item todisplay the characteristics Sold-to party 2401 and Sales org 2400.




7. Did consumption take place properly? If so what dates and quantities?

a) Click on the Forecast tab.

b) Click Char/Values and review each customer segment by clickingthem one after another.

8. Go to the Overview tab and restrict the planned independent requirementsby sold-to party 2402.

a) Click the Selection icon, restrict the display to Sold-To Party

2402, and click Adopt.



Lesson Summary

You should now be able to:� Explain how Mass Processing fits into the demand Planning process� Describe how sales quantities are released to Production Planning� Explain how data is distributed between locations� Configure and execute mass processing for macros, forecasts, and demand

plan releases

Related InformationSee the following consulting notes for more details:

� 546079: FAQ: Background jobs in Demand Planning� 403050: SAP Note: Release from demand planning to SNP� 414965: Release DP/SNP: Requirements also on non-workdays� 380352: DP 3.0: User exits / Business Add Ins


SCM220 Unit Summary

Unit SummaryYou should now be able to:� Explain how Mass Processing fits into the demand Planning process� Describe how sales quantities are released to Production Planning� Explain how data is distributed between locations� Configure and execute mass processing for macros, forecasts, and demand

plan releases


Unit Summary SCM220



Test Your Knowledge

1. If the Demand Planning planning area contains the Location characteristic,the sales quantities are disaggregated to the locations automatically.Determine whether this statement is true or false.□ True□ False

2. If the SAP ECC requirements are not entered in the transfer profile, they willbe derived from the main strategy in the ECC material master.Determine whether this statement is true or false.□ True□ False

3. Before you can create a planning activity, you need to have at least one ofthe following factors: an existing macro, forecast profile, transfer profile, or

profile.Fill in the blanks to complete the sentence.

4. Which of the indicators in the release specifies that the released amount canbe added to the existing planned requirements?Choose the correct answer(s).□ A Add□ B Data□ C Location□ D Add location□ E Add data

5. In the Transfer profile, the key figure you release must be akey figure.Fill in the blanks to complete the sentence.

6. What are the steps performed for mass processing?



Answers

1. If the Demand Planning planning area contains the Location characteristic,the sales quantities are disaggregated to the locations automatically.

Answer: True

If the Location characteristic is contained in the Demand Planning planningarea, the sales quantities are disaggregated to the locations automatically.

2. If the SAP ECC requirements are not entered in the transfer profile, they willbe derived from the main strategy in the ECC material master.

Answer: True

If you do not enter an SAP ECC requirements type, the requirements type ofthe main strategy will be derived from the ECC material master.

3. Before you can create a planning activity, you need to have at least one ofthe following factors: an existing macro, forecast profile, transfer profile, orrelease profile.

Answer: release

4. Which of the indicators in the release specifies that the released amount canbe added to the existing planned requirements?

Answer: E

The Add data indicator means that the released amounts can be added to theplanned independent requirements that may already exist.

5. In the Transfer profile, the key figure you release must be a quantity keyfigure.

Answer: quantity

6. What are the steps performed for mass processing?

Answer: The steps performed for mass processing are:

� Creating a profile� Defining an activity� Creating a job� Scheduling a job


Unit 7The Internal Business Warehouse

Unit OverviewThis unit will help you learn the role and functions of the AdministratorWorkbench. You will also learn how InfoCubes, characteristics, and key figuresare structured. Finally, you will learn the methods used to populate InfoCubeswith data from ECC, Excel, and BW.


� Explain the concepts of Demand Planning and extracting transaction data� Describe the role and function of Administrator Workbench� Describe how characteristics and key figures are structured� Get an overview of data source and data extraction� Explain the process of configuring LIS for data extraction� Describe Infosource and Infopackage in detail

Unit ContentsLesson: The Internal SAP SCM Business Warehouse .. . . . . . . . . . . . . . . . . . .262

Exercise 17: Administrator Workbench... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .277


Unit 7: The Internal Business Warehouse SCM220

Lesson: The Internal SAP SCM Business Warehouse

Lesson OverviewIn this lesson, you will an understanding of the concepts of Demand Planning. Wewill review the procedure for extracting transaction data and loading the InfoCubewith actual historical data. Then we will learn to navigate in the AdministratorWorkbench and understand its functionality. You will also get an overview ofDataSource and Data Extraction which will enable you to explain the process ofconfiguring the system for data extraction. Finally, it will help you understandInfoSource and Infopackage.


� Explain the concepts of Demand Planning and extracting transaction data� Describe the role and function of Administrator Workbench� Describe how characteristics and key figures are structured� Get an overview of data source and data extraction� Explain the process of configuring LIS for data extraction� Describe Infosource and Infopackage in detail

Business ExampleAs the demand planner, you need to organize the data source in SAP SCMin the same manner as SAP BW to store and extract actual historical data forimplementing demand plan. You also need to organize the data source in SAPSCM same as SAP Logical Info Structure (LIS) to implement the demand plan.

Business Warehouse OverviewIn order for any forecasting to take place it is necessary to have some form ofhistorical data on which to base our future predictions. Questions such as: Whichhistorical data should I use? and What level does it get saved on? or Where do Ifind this data? all need to be answered before setting up SAP SCM Sales Planning.


SCM220 Lesson: The Internal SAP SCM Business Warehouse

Figure 79: The system landscape with an internal and external BusinessWarehouse

The standard mechanism for getting historical data into Demand Planning is byusing the SAP BW. SAP SCM itself is built upon an SAP BW. These systemsare fully integrated and cannot be separated. The version of SAP BW inside ofSAP SCM is release dependent:

� SAP APO 3.0→ SAP BW 2.0b� SAP APO 3.1→ SAP BW 2.1c� SAP SCM 4.0→ SAP BW 3.0b� SAP SCM 4.1→ SAP BW 3.5

SAP BW is a data warehouse where you can aggregate, consolidate, filter, orprocess data from various different source systems to create evaluations andforecasts.

The SAP BW is delivered with pre-configured Scenarios for evaluating businessprocesses. For each of the respective company roles, these scenarios (BusinessContent) contain the objects needed to load necessary information from sourcesystems and to show it to other employees. As well as roles, Business Contentcontains all of the other objects such as InfoCubes, queries, key figures, andcharacteristics, that make BW implementation easier.



The SAP BW inside of SAP SCM will serve two purposes in the demand planningprocess.

1. Master and historical data can be extracted from source systems to generatecharacteristic value combinations, for the text and attributes of thecharacteristics and for statistical forecasting.

2. Saving the Characteristic Value Combination.3. Reporting Planning Data.4. Extract data from the LiveCache in the database, as a back up of the planning

results at the end of every planning cycle.

You use InfoCubes to store actual data and archive planning data. If you have anexternal data warehouse such as the SAP BW, you can also transfer the SalesPlanning data relevant for actual/plan comparisons to the external BW. Aggregatedactual data can be extracted from the SAP ECC, as well as from SAP BW, Excel,and legacy systems. POS data is sales data that is compiled directly from theconsumer. This can be procured from firms, such as Nielsen or IRI.

Administrator Workbench (AWB) and Its ComponentsThe Administrator Workbench is the central tool to maintain:

� Source systems of aggregated order data (SAP ECC, Excel, SAP BW,non-SAP systems)

� InfoAreas� InfoObjects (characteristics and key figures)� InfoSources� InfoCubes

The AWB is a graphical tool which allows users to interface with the DataDictionary in which the technical definitions of individuals fields and tables aresaved. InfoCubes, InfoObjects, and the extraction tool as well as the extraction ofphysical data are planned and set here. Using Data Mart scenarios, you can saveand evaluate SCM planning data in internal BW.



Figure 80: InfoArea

InfoAreas are used to group objects to a business process in SAP BW. Like Datafolders, they only help to structurally organize data. Each InfoCube/InfoProvideris assigned to an InfoArea. You can also use InfoObject catalogs to assignInfoObjects to different InfoAreas.

Key figures and characteristics are called InfoObjects in the BW. Characteristicsare used to save master data; key figures are used to save transaction data inInfoCube fact tables. SAP BW is delivered with standard InfoObjects with theprefix �0�and SAP SCM InfoObjects with the prefix �9A�.

Note: In relation to Business content, InfoObjects with 0 prefix are forreporting, those with a 9A are for planning with SAP SCM.

Caution: Changing standard SAP SCM Content (9A), can cause systemproblems. Avoid all changes whenever possible, especially on the9AMATNR and 9ALOCNO characteristics.

InfoObject Catalogs are a way to organize or group characteristics and key figuresso they are easy to locate and to facilitate ease of use.



For selection and navigation, characteristics can be described as master data(material number, plant, customer number) or as organizational data fields (salesorganization, division, sales office). However, in the SAP BW environmentcharacteristics contain much more:

� Values (p-102 = product number)� Texts (descriptions) and attributes (other master data)� Hierarchies� Navigation attributes� Specific characteristic types:

� Time characteristics, such as fiscal year� Unit characteristics, such as currencies, or units of measure, such as

local currency

Each characteristic will have values depending upon its purpose. For example thecharacteristic product might have 30000 values depending upon the number ofrelevant part numbers. Attributes are descriptive master data. They themselvesare characteristics with values. In addition to the product number, the product'scolor can also be entered, for example. Color is a characteristic but we call it anattribute because we use it to further describe the part number. Attributes are onlyfor information purposes on a report and can not be used for navigation (selectionand drill down).

Navigational attributes are special because they, can act like characteristics, butare not actually part of the data table themselves. They can be used for sorting,filtering, or drilling down. Because they must be read from other tables, theirperformance aspects must be considered.

Key figures are numerical fields where sums and amounts like turnover or salesquantity can be planned and saved.

� Values/quantities� Currency/units of measure

When defining a key figure the most important decisions is the aggregationtype. This determines what will happen if two records exist with the same key.Normally, data set amounts are added in their InfoCube. In addition when creating



key figures you will have the option to create BW or APO Key figures. Youshould create APO key figures if you intend to fix values or quantities of this keyfigure at a later stage.

Note: When creating key figures in SAP SCM BW, you will be askedwhether you want to create an APO or BW key figure. Only APO keyfigures can be fixed in sales planning. Thus, it is recommended that allkey figures be created as APO key figures.

Note: Characteristics make up the key of the record, key figures are thedata fields, and time characteristics control the periodicity of the data.InfoCatalogs are used to organize characteristics and key figures.

Info Provider: An OverviewInfo Provider is a generic name for the objects for which the queries/reports inSAP BW can be created or executed. There are two types of InfoProviders. Onetype includes objects that contain physical data . These are known as data target:

� InfoCubes� ODS objects� InfoObjects and (characteristics with attributes, texts, or hierarchies)

The second type includes objects that do not save physical data, but do providedata for reporting, e.g.:

� InfoSets� RemoteCubes� MultiProvider



Figure 81: Data Structure: InfoCubes

InfoCubes are the standard data repository for historical data for SAP SCM salesplanning. The architecture of an InfoCube is based on a star schema, whichconsists of fact tables and dimension tables. The structure of an InfoCube allowsthe user to quickly evaluate data according to flexible criteria (Slice&Dice). TheInfoCube Contains the following objects:

� Key figures� Characteristics (grouped into dimensions)

Each InfoCube has two fact tables with multiple dimension tables. Dimensiontables lead to quick access to fact tables (key reduction). The maximum numberof dimensions per InfoCube is sixteen. Each dimension contains a maximumof 248 characteristics.

� Time� Unit� Data package



Key figures include currency, quantity, or number fields, such as sales revenue orsales quantity. Characteristics can be regions, products, or customers, or they canbe characteristics of time such as months, weeks, or days. When deciding whichcharacteristics to include in your InfoCube, take into account that:

� Characteristics define the levels at which you can aggregate data� The total number of characteristics define the lowest level in which your

data is stored.

Note: 9AVERSION should be included in every SAP BW InfoCube thatwill interface with SAP SCM sales Planning.

In addition to the three dimensions that are generated automatically (time, unit,data package), your InfoCube can contain up to 13 user-defined dimensions.

Figure 82: Fact Table

The fact table contains the key figure data for each unique combination ofcharacteristic values. An artificial dimension key, the DIM ID, is used forreferencing within the fact table. Since artificial keys are formed to connect thedimension table with the fact table, changes can be made to the master datatable without much difficulty. This means the natural key does not have to beregenerated every time.



Figure 83: Dimensions

Dimensions are a way to structure the characteristics of an InfoCube.

From a technical point of view, the characteristics of the dimension table form theedges of the data cube that is stored as an InfoCube. The dimensions are connectedto the fact table using DIMs. The data in the fact table is accessed by selecting thecharacteristics and their characteristic values from the dimension tables and bygenerating a corresponding SQL statement that is used to access the fact table.

Figure 84: Star Schema

InfoCubes generate a multidimensional data model on the SAP SCM BW databaseserver. Transaction data is saved in fact tables and dimensions make quick accessto fact tables possible. Both table types are connected with one another in arelational way. The SID (surrogate) key allows access to master data tables. Next,



the master data tables, classification tables, and hierarchy data tables are groupedin a star-like formation around one central fact table. In reporting, data fromsurrounding smaller tables is first read to reduce the access time to large fact table.

This star form of database schema guarantees high reporting efficiency andprovides flexible solutions that can be easily adjusted to fluctuating businessrequirements.

When creating an InfoCube, you concentrate on the key figures and characteristicsyou need for planning. Your characteristics must then be grouped logicallyinto dimensions. You must ensure that each dimension table contains as fewcharacteristic value combinations as possible, in order to increase the speed ofselection. Based on your entries, the system automatically generates a star schemain the database.

Note: When creating an InfoCube you will be prompted with thequestion�Create and APO or BW InfoCube�. When you need to createan InfoCube to save transaction data, the answer is always BW. APOCubes (planning object structures) are created within SAP SCM's salesplanning configuration. BW InfoCubes are read efficient, APO InfoCubesare write efficient.

Overview of Data ExtractionA source system is any system that provides data for the data mart. Someexamples of source systems are:

� SAP BW Systems� SAP R/3 and ECC Systems (as of 3.0D)� other databases� Non-SAP systems (flatfiles or ETL tools)

Each source system represents a logical system. Each source system can thuscontain an infinite number of data sources.



Figure 85: Extracting Transaction Data

A Data Source is the part of the infrastructure that enables the transportation ofinformation between OLTP systems and the SAP SCM BW. This infrastructureconsists of various DDIC structures and the transformation rules that applybetween them. Thus DataSources regulate the flow of data from the transferstructure in the source system to the communication structure in SAP BW.

DataSources describe the amount of all available fields which can be extractedfrom the source system to a business transaction.

When a data source is replicated and the InfoSource activated, the transferstructure is generated in the SAP SCM BW system. Transfer structures alwaysoccur in pairs in both their source system and the associated SAP BW system.With the help of the transfer structure, the data from a source system is transmittedto SAP SCM BW, temporarily saved in the PSA, and from there transformed usingtransfer rules and passed on to the communication structure.

The communication structure is independent of the source system and containsall the fields that should be populated in SAP BW.



Figure 86: Data Extractors

The transaction data that is transferred to InfoCubes using extractors can originatefrom a number of different applications. To do this, create DataSources fortransaction data and DataSources for master data (attributes, text, and hierarchies)in the source system, or simply use the ones in the business content of the sourcesystem.

Figure 87: InfoSource



An InfoSource contains fields that logically belong together from a businesspoint of view. You assign the InfoSource to an application component in theAdministrator Workbench. The InfoSource allows the SAP BW system to:

Place data from the transfer structure in OLTP into the transfer structure in SAPSCM

Convert the data using the SAP SCM transfer rules

Transfer the data to the SAP SCM communication structure

The InfoSource relays data to be saved in the InfoCube.

Figure 88: Update Rules

Update rules control the transformation of data from the InfoSource to theInfoCube. Values can be directly relayed from the communication structure toan InfoCube, or can be transformed using constants, formulas, or routines. TheABAP editor is directly embedded in the update rule maintenance - a user exitdoes not need to be defined. Routines can be used to access customer-specifictables and those generated by SAP SCM (master data tables, hierarchy tables...),for example, for key figure currency and amount conversion.



Figure 89: InfoPackage

An InfoPackage is created for the InfoSource. The InfoPackage contains all thecontrol parameters for the load. In the InfoPackage, you control the InfoCubesthat are populated with data during each load. In the InfoPackage, you scheduleand monitor the loading process.





Exercise 17: Administrator Workbench

Exercise ObjectivesAfter completing this exercise, you will be able to:� Describe the role and function of Administrator Workbench

Business ExampleTo successfully implement sales planning, you must decide which historical datafrom which source systems needs to be used for forecasting. Characteristics,key figures, extractors, and data goals must be defined in order to extract andsave historical data.

Task:Because the set up of a complete data flow would be too much effort for thisexercise, you should only bother about the definition of characteristics, keyfigures, and the SALES InfoCube for our scenario.

1. Familiarize yourself with the SALES InfoCube data model in theAdministrator Workbench.

2. Which dimensions have been defined in the SALES InfoCube and whichcharacteristics are assigned to each individual dimension? Look moreclosely at the CUST (Sold-to party) characteristic. You see a text table and anavigation attribute. When are these settings used?

3. Which key figures are defined for the SALES InfoCube? What data type dothey have?

4. Display the contents of the SALES InfoCube and analyze the characteristiccombinations and entries for the key figures.

5. In this exercise, you will create an additional key figure in the AdministratorWorkbench. You will use this new key figure later to save transaction datain the planning area. Add your new key figure to the SALES PLANNINGInfoArea in the InfoObject catalog for sales key figures. Create a new APOkey figure for quantities called EXTRA## with the description CUSTOMERCORRECTION.



Solution 17: Administrator WorkbenchTask:Because the set up of a complete data flow would be too much effort for thisexercise, you should only bother about the definition of characteristics, keyfigures, and the SALES InfoCube for our scenario.

1. Familiarize yourself with the SALES InfoCube data model in theAdministrator Workbench.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Environment→ Administrator Workbench.

This will take you to the Modeling screen for InfoProvider.

b) Expand the SALES InfoArea by selecting the triangle in front of theInfoArea

c) Right-click on the SALES InfoCube and choose Display data model...




2. Which dimensions have been defined in the SALES InfoCube and whichcharacteristics are assigned to each individual dimension? Look moreclosely at the CUST (Sold-to party) characteristic. You see a text table and anavigation attribute. When are these settings used?

a) Dimensions are represented by the three triangle icon.

b) When you expand a dimension by selecting the triangle, you see thecharacteristics assigned to it.

c) In the following table, note down the dimensions and characteristicsfrom the SALES InfoCube:

Dimension CharacteristicsVersion APO � Planning versionSales Sales organization, division, sold-to partyProduct Product hierarchy, APO Product, APO �

LocationTime Calendar year/monthData Packet Change run ID, record type, request IDUnit Unit of measure, currency key

d) Double-click the CUST (Sold-to party) characteristic. In the Masterdata/Text tab page, find text table /BIC/TCUST. Double-click here,press the Content button, and click execute. The texts will be displayedin sales planning to describe sold-to party numbers. Back up to thecharacteristic screen and find the navigation attribute 0COUNTRY(country key) in the Attributes tab page. This navigation attribute canbe used for selection in sales planning.




3. Which key figures are defined for the SALES InfoCube? What data type dothey have?

a) Right-Click on the SALES InfoCube and choose Change.

b) Select on the Key figures tab page.

c) Select Detail view and complete the table below.

Key figure Longdescription

Key figure type Data type

IN-ORDQTY

Incomingorder qty

Quantity QUAN

INORDVAL Incomingorder value

Amount CURR

INVQTY Invoiced salesqty

Quantity QUAN

INVVAL Sales revenue Amount CURR

4. Display the contents of the SALES InfoCube and analyze the characteristiccombinations and entries for the key figures.

a) Right-click on the SALES InfoCube and choose Manage.

b) Choose the SALES InfoCube at the top of the screen and select DisplayContents.

c) Select the characteristics that you want to analyze by first selecting FldSelectn for Output.

d) You can use the Select all button at the top of the screen or selectindividual characteristics. Do not select the SID key because here onlythe internal surrogate help key is displayed, not the correspondingcharacteristic value.

e) Click Execute.

f) You can filter to display only the data that meets your criteria. All data

are displayed if no filter criteria are used. Click Execute.

g) Review the data in your InfoCube.

h) Stay in the Administrator Workbench but select the green back arrow 3times to get back to the Administrator Workbench main screen.

5. In this exercise, you will create an additional key figure in the AdministratorWorkbench. You will use this new key figure later to save transaction datain the planning area. Add your new key figure to the SALES PLANNING




InfoArea in the InfoObject catalog for sales key figures. Create a new APOkey figure for quantities called EXTRA## with the description CUSTOMERCORRECTION.

a) Use this path: Advanced Planning and Optimization→ DemandPlanning→ Environment→ Administrator Workbench.

b) Click the left column on the InfoObjects icon to goto the InfoObjects page.

c) Expand the SALES InfoArea and the InfoObject catalog for the saleskey figures by clicking the corresponding triangles.

d) Right-select on the InfoObject catalog for Sales key figures and chooseCreate InfoObject...

e) Enter the name EXTRA## and the description INTERNETCORRECTION for the new key figure and select Continue.

A dialog box is then displayed that asks to which BW application theobject should belong. Choose APO to create a new APO key figure.Continue

f) On the Type/unit tab page, choose Quantity.

In the Currency/Unit of measure section choose 0UNIT for theunit/currency.

Hint: If you enter an additional key figure in the fixed keyfigure field, you will be able to fix values in your key figure ata later point in time.

g) Select Activate. Select Continue on any dialog boxes that appear.

h) Review the InfoObject catalog (you may need to refresh the screen)and exit the Administrator Workbench.



Lesson Summary

You should now be able to:� Explain the concepts of Demand Planning and extracting transaction data� Describe the role and function of Administrator Workbench� Describe how characteristics and key figures are structured� Get an overview of data source and data extraction� Explain the process of configuring LIS for data extraction� Describe Infosource and Infopackage in detail


SCM220 Unit Summary

Unit SummaryYou should now be able to:� Explain the concepts of Demand Planning and extracting transaction data� Describe the role and function of Administrator Workbench� Describe how characteristics and key figures are structured� Get an overview of data source and data extraction� Explain the process of configuring LIS for data extraction� Describe Infosource and Infopackage in detail


Unit Summary SCM220



Test Your Knowledge

1. are used to store the actual data and archive theplanning data.Fill in the blanks to complete the sentence.

2. Administrator Workbench is the tool used to maintain InfoCubes,InfoObjects, and all the system extraction tools to retrieve external data.Determine whether this statement is true or false.□ True□ False

3. InfoCubes are the data repository for .Fill in the blanks to complete the sentence.

4. What is a source system?

5. You need not make preliminary settings to use information structures assource tables.Determine whether this statement is true or false.□ True□ False

6. What is an extract structure?

7. Mit der Replizierung einer DataSource und der Aktivierung der InfoSourcewerden im die Transferstrukturund die Kommunikationsstruktur erzeugt.Fill in the blanks to complete the sentence.



8. Im internen BW-System wird dieselbe Extraktion wie inverwendet.Fill in the blanks to complete the sentence.

9. An InfoCube does not allow the user to slice and dice the data in differentways.Determine whether this statement is true or false.□ True□ False

10. In a test system, you have to create a new source system each time youupload.Determine whether this statement is true or false.□ True□ False

11. To configure the LIS environment, you can call up transactionin the R/3 Enterprise.Fill in the blanks to complete the sentence.

12. InfoObjects can be transferred from the communication structure into an




Answers

1. InfoCubes are used to store the actual data and archive the planning data.

Answer: InfoCubes

2. Administrator Workbench is the tool used to maintain InfoCubes,InfoObjects, and all the system extraction tools to retrieve external data.

Answer: True

Administrator Workbench is used to maintain InfoCubes, InfoObjects, andall the system extraction tools to retrieve external data.

3. InfoCubes are the data repository for Demand Planning.

Answer: Demand Planning

4. What is a source system?

Answer: A source system is one that provides data for the data mart.

5. You need not make preliminary settings to use information structures assource tables.

Answer: False

You need to make preliminary settings to use information structures assource tables.

6. What is an extract structure?

Answer: You use an extract structure to transfer the data from the sourcesystem to the InfoSource of an internal BW system.

7. Mit der Replizierung einer DataSource und der Aktivierung derInfoSource werden im internen BW-System die Transferstruktur und dieKommunikationsstruktur erzeugt.

Answer: internen BW-System

8. Im internen BW-System wird dieselbe Extraktion wie in SAP BW verwendet.

Answer: SAP BW



9. An InfoCube does not allow the user to slice and dice the data in differentways.

Answer: False

An InfoCube allows the user to slice and dice the data in different ways.

10. In a test system, you have to create a new source system each time youupload.

Answer: False

You can use the same source system several times to upload data.

11. To configure the LIS environment, you can call up transaction SBIW in theR/3 Enterprise.

Answer: SBIW

12. InfoObjects can be transferred from the communication structure into anInfocube

Answer: Infocube


Unit 8Demand Planning Configuration

Unit OverviewIn this unit you will learn how to create master data (characteristic valuecombinations) for Demand Planning. Next, you will learn to configure planningareas. You will be able to understand the concept of consistent planning andalternative disaggregation methods. You will also learn to maintain proportionalfactors. Finally, you will learn how to release demand plan data.


� Explain the tasks of planning object structures in demand planning.� Determine planning levels for demand planning in the planning object

structure.� Describe the tasks of planning objects, demand planning master data and

characteristic value combinations� Create characteristic value combinations� Create planning areas and explain their tasks for planning� Explain the concepts of base unit of measure and base currency and the

rounding procedure� Set aggregation and disaggregation of key figures� Create time series for key figures in the liveCache and list the factors that

influence processing performance� List the functions of product interchangeability in demand planning� Explain when to use each method of product interchangeability� Explain each method of product interchangeability and how it works� Explain the 2 step process of executing realignment.� Execute realignment on a Planning Object Structure, a Planning Area, and

an InfoCube� Describe the key figure settings in the planning area� Describe aggregation and disaggregation methods� Calculate proportional factors


Unit 8: Demand Planning Configuration SCM220

� Describe the effects of proportional factors on planning� Explain the function of versions in planning� Explain the release of Demand Planning to SNP as planned independent

requirements

Unit ContentsLesson: Planning Object Structure ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .291

Exercise 18: Creating a Planning Object Structure .. . . . . . . . . . . . . . . . . . .297Lesson: Characteristic Value Combinations.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .301

Exercise 19: Creating Characteristic Value Combinations.. . . . . . . . . . .307Lesson: Planning Areas.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .310

Exercise 20: Creating a Planning Area .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .327Lesson: Product Interchangeability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .333

Exercise 21: Realignment (Optional) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .341Lesson: Proportional Factors.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .344

Exercise 22: Calculating Proportional Factors.. . . . . . . . . . . . . . . . . . . . . . . . .347Lesson: Version Management and Release to SNP ... . . . . . . . . . . . . . . . . . . . .350


SCM220 Lesson: Planning Object Structure

Lesson: Planning Object Structure

Lesson OverviewSCM demand planning is very flexible and can be different from company tocompany. You can define your own levels when choosing planning levels. Thisdecision should be carefully discussed with all of the groups involved. Planninglevels are determined in the planning object structure using BW characteristics.Predictable characteristic values combinations are also generated and saved there.


� Explain the tasks of planning object structures in demand planning.� Determine planning levels for demand planning in the planning object

structure.

Business ExampleOne of the most fundamental decisions when introducing demand planning is thechoice of planning levels. This decision should be carefully discussed with all ofthe groups involved. You should limit yourselves to the most important levelsonly, because this choice has a direct effect on performance and memory. Planninglevels are determined in the planning object structure. Predictable characteristicvalues combinations are also saved there.

Demand Planning Master DataAll planning systems need master data to control planning. SAP SCM is noexception. There are three types of master data in the SCM system:

� SAP BW characteristics (texts, attributes, and hierarchies)� CIF master data (product and location master sets, BOMs, routings, etc.)� Demand planning master data (characteristic value combinations (CVC's)



Figure 90: Characteristic value combinations

Planning object structure characteristics determine the levels at which demandplans are created, changed, aggregated, and disaggregated. These levels canbe defined freely and can be called Product, Product Family, Material Group,Region, Brand, and Sold-To Party. BW hierarchies are used for evaluation, notfor planning. Demand planning master data is the valid characteristic valuescombinations for the characteristic values of the level. Characteristic valuescombinations thus ascertain which product belongs to which material group,which product is bought by which customer, in which region and from whichlocation. The texts and attributes for characteristic values can be read from defaultcharacteristics 9AMATNR and 9ALOCNO or from BW characteristics.

Depending on the planning level and number of characteristic values, the numberof CVCs can be in the millions. It is thus impossible to manually generate CVCs.They are created from historical data in InfoCubes or ODS objects, throughRemoteCubes, flatfiles, or using realignment. You can check the validity ofcharacteristic values on CIF or BW master data as of Release SCM 4.1. CVCs aresaved in an APO InfoCube called planning object structure (POS).



Figure 91: Planning object structures and aggregates

The CVCs for one or more planning areas are saved in a planning object structure(POS). Attention - the characteristics of an active planning object structurecannot be changed. The planning object structure is an APO InfoCube savedin the database of the internal BW system, and displayed in the administratorworkbench under unassigned nodes (InfoCube generated for internal use only).Planning object structures can contain default or user characteristics createdin the administrator workbench. SAP recommends that you create your owncharacteristics for planning. For characteristic pre-planning and DP BOMs,you can automatically include default characteristics in the planning objectstructure via check box. Because the planning object structure is an Infocube, forquick access you should group characteristics in dimensions according to thesame criteria, as in the BW. The dimensions here are only numbered because adescription is not necessary for reporting.

Note: If you do not want to work with default characteristics 9AMATNRand 9ALOCNO, define you own characteristics for product and locationin the internal BW and load the master data. This is especially necessarywhen you want to work with navigation attributes for product and location,because SNP does not support the use of navigation attributes. To storeyour own characteristics for product and location in the planning objectstructure, choose Edit→ Assign ProdLoc., and enter the characteristic inthe following window. When releasing, include your own characteristics.

You can use navigation attributes for selection and navigation in demand planning.To do this, set up the navigation attribute in characteristics-info object in theinternal BW. As soon as you store the characteristic in the planning objectstructure, the navigation attribute is available for demand planning; you don'thave to activate it like a BW InfoCube. You can select and drill down in demand



planning with this, but you cannot store the navigation attribute in an aggregate,thus you cannot save anything on the level of the navigation attribute. Forexample, find the navigation attribute 0COUNTRY for the CUST (sold-to party)characteristic in the training system.

When you use navigation attributes, please note:

� Navigation attributes select and navigate more slowly, because thecharacteristic value is not read from the planning object structure quickly.Instead, it is read from the attribute table. Many navigation attributes thushave a negative impact on performance.

� Navigation attributes cannot be used to define aggregates, as opposed to BW.� CVCs do not contain navigation attributes, thus planning data is not saved

with them.� You cannot assign navigation attributes to promotions.� When selecting navigation attributes, notes cannot be stored for the data.� Both navigation attributes and basic characteristics can be used during data

extraction.

Note: Realignment of navigation attributes is very easy because only newmaster data must be loaded into the BW characteristic.

Similar to BW InfoCubes, you define aggregates for the planning object structuresfor demand planning. APO aggregates contain a part of the planning objectstructure's characteristics. Without aggregates, data is only stored at the lowestlevel. With aggregates, the system saves data consistently at both the detail andthe aggregate levels. The aggregate's data is therefore always kept up-to-datebut access is substantially improved. So if you have a large volume of data andyour planners work, for example, primarily at the product/sold-to party level,you can create an aggregate at this level to improve planning performance. APOaggregates are therefore not identical to BW aggregates but fulfill the same task.

Note: Until Release SCM 4.0, you needed aggregates to be able to fixdata at the aggregated level. As of SCM 4.0, this restriction no longerapplies, thanks to a new fixing logic at the lowest level.

You can also create an aggregate on an aggregate, thereby creating an aggregatehierarchy. If the planning object structure contains, for example, the characteristicsproduct, location and sales organization, aggregate 1 could contain only productand sales organization and aggregate 2 only product. So if the selection onlycontains product, planning will occur automatically on aggregate 2.

An APO InfoCube with 'green' status is automatically created for each activeaggregate. Only active aggregates are used for planning. If a new aggregate isactivated, first the tables are created and then the aggregate is filled ('roll up'). You



can see active aggregates both in the transaction /SAPAPO/MSDP_ADMIN, andon the administrator workbench by right-clicking on Planning Object Structure ->Maintain Aggregates.





Exercise 18: Creating a Planning ObjectStructure

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a planning object structure

Business ExampleOne of the most fundamental decisions when introducing demand planning is thechoice of planning levels. This decision should be carefully discussed with all ofthe groups involved. You should limit yourselves to the most important levelsonly, because this choice has a direct effect on performance and memory. Planninglevels are determined in the planning object structure. Predictable characteristicvalues combinations are also saved there.

Task:1. Create a planning object structure called POS##. This planning object

structure should contain the following characteristics:

9ALOCNO APO - Location9AMATNR APO - ProductCUST Sold-to partyDIVISION DivisionPRODH Product hierarchySALESORG Sales organization

Create three dimensions and group product and product hierarchy, locationand division, and sold-to party and sales organization. Activate yourplanning object structure. A dialog box appears. A master plng objectstructure already exists for this character combination. Do you want to createan identical master planning object structure? → Yes.



Solution 18: Creating a Planning ObjectStructureTask:1. Create a planning object structure called POS##. This planning object

structure should contain the following characteristics:

9ALOCNO APO - Location9AMATNR APO - ProductCUST Sold-to partyDIVISION DivisionPRODH Product hierarchySALESORG Sales organization




Create three dimensions and group product and product hierarchy, locationand division, and sold-to party and sales organization. Activate yourplanning object structure. A dialog box appears. A master plng objectstructure already exists for this character combination. Do you want to createan identical master planning object structure? → Yes.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Environment→ Administration of Demand Planningand Supply Network Planning.

b) Click the Planning Area button and select Plngobject structures.

c) Right-click the Plng Object Structures foldericon and choose Create Master Plng Object Struct.

d) Enter the name POS## and click Continue.

e) For text, type �Planning object structure for group ##� and select theabove characteristics in the right column. Click the Add Char blackarrow to add these characteristics to your planning object structurein the left column.

f) Double-click on the Add Dimension button and group, for example,product and product hierarchy in dimension 1, location and division indimension 2, and Customer with Sales Organization in dimension 3.

g) Click the Activate icon to activate your planning object structure.A dialog box appears. A master plng object structure already exists forthis character combination. Do you want to create an identical masterplanning object structure? → Yes.

Return to S&DP Administration by clicking the green back arrow.



Lesson Summary

You should now be able to:� Explain the tasks of planning object structures in demand planning.� Determine planning levels for demand planning in the planning object

structure.

Related InformationRelevant consultation notes:

� 609454 APO-DP: Short dump ITAB_DUPLICATE_KEY� 573127 Creating several char. combinations: /SAPAPO/MC 62� 506393 Conversion exits when creating characteristics combinations� 503363 Use & management of fixed aggregates in Demand Planning� 492399 Realignment tool - Consulting� 413526: Consultation: Navigation attributes versus basic charact.� 402046 Error message 'No LiveCache anchor found'� 394610 DP 3.0: no new characteristics combinations� 394053 DP 3.0: Planning object structures in the production system� 371655 Demand Planning 3.0: Syntax error in GP$ERR$PSTRU_*


SCM220 Lesson: Characteristic Value Combinations

Lesson: Characteristic Value Combinations

Lesson OverviewThe decision on which planning levels in sales planning should be planned hasbeen made and the required characteristics have been defined in the planningobject structure. Now the predictable characteristic value combinations, alsocalled demand planning master data or plannning objects, must be created.


� Describe the tasks of planning objects, demand planning master data andcharacteristic value combinations

� Create characteristic value combinations

Business ExampleNow the predictable characteristic value combinations, also called demandplanning master data or plannning objects, must be created. In an ongoing process,background jobs that generate additional characteristic value combinations areplanned for this, for example when customer orderd with new products or sold-toparties are loaded into the InfoCube.

Characteristic Value Combinations

Figure 92: Demand Planning Master Data



Demand Planning characteristics determine the levels at which demand plansare created, changed, aggregated, and disaggregated. Demand Planning orSupply Network Planning master data includes all the permissible values of acharacteristic called characteristic values, which are specific names. For example,the characteristic, Location, can have the values, London, New Delhi, or NewYork. Now all combinations which must be planned (e.g., which customers buywhich products in which regions) using the characteristic values of your products,product families, regions and clients. These characteristic value combinationsform the non-hierarchical network of planning objects. From a technical pointof view, you indicate the characteristic values that can be planned for thecharacteristics in your planning area.

Characteristic value combinations are the master data of Demand Planning. Theycan be created from existing InfoCube sales data, for example. Until Release4.0 no check against the SCM master data (e.g., product or location) transmittedvia the CIF interface could be made. You can also plan for new products indemand planning which do not have a product master yet. Using the 9AMATNRcharacteristic for products or 9ALOCNO for locations, you can read the textdisplay on the characteristic value. Use your own characteristics, then load thetexts and attributes using BW extractors. At the latest when creating plannedindependent requirements, you will need the CIF master sets for product andlocation.

Figure 93: Creating Characteristic Value Combinations

Characteristic value combinations define the valid relationships betweencharacteristic values and form the basis for aggregation and disaggregation of keyfigure values. There are two ways to create characteristic value combinations,individually and automatically.



To create characteristic value combinations individually, you define a complete setof characteristic values, which creates a single data record.

Note: Because planning data is only saved at the lowest level, emptycharacteristic values will not be supported in demand planning. Thisis due to the fact that in demand planning, aggregated data is alwaysdisaggregated up to the lowest level, therefore you need to know thecharacteristic values of individual data sets.

Alternatively, to create characteristic value combinations automatically, you cangenerate characteristic value combinations based on existing data from a SAP BWInfoCube, for example. In this case, the system generates all the combinationsthat it detects for a particular time period. To maintain the characteristic valuecombinations up to date, you periodically schedule a background job thatgenerates the new characteristic value combinations. When you update data intoa BW InfoCube, for example updating the sales order data for a new customer,the background job generates new characteristic value combinations for it. Oldcharacteristic value combinations are never erased through this. New ones aresimply added.

If you want to create several characteristic value combinations, e.g., for newproducts which have no sales data in the InfoCube yet, use Realignment. As ofRelease SCM 4.1, you can also upload the Realignment steps from any data.

MWKs that are no longer valid must be erased in order to free up memoryrequirement, thus improving performance. When you erase MWKs, theircorresponding time series (planning data) and notes are also erased. As of Release4.0, you can choose several combinations to be erased from a list, and erase allof them at the same time. You can also erase old MWKs using Realignment.Another method would be to periodically save data from a planning area inInfoCubes, erase all MWKs, create new MWKs from historical data for a fixedtime period, and then re-load the planning data. In the case of master planningobject structures that contain interdependent entries, as for DP bills of material orcharacteristics-based forecasting, if you select one entry, all the interdependententries are also deleted automatically. This is to preserve data consistency.



New Functions in Release SCM 4.1Release SCM 4.1 offers four options for creating characteristic value combinations:

� Manual Creation You can create one or more characteristic valuecombinations manually. The new combinations are first stored in a 'to-do' listand can be used as the basis for more combinations.

� Load in To-Do List You can load data from other sources directly into ato-do list, revise it there, then generate characteristic value combinations.The To-Do List is based on the SAP List Viewer, see ALV Grid Control(BC-SRV-ALV). This means that you can use the usual functions fordhanging, filtering, and sorting the display.

� Direct Generation The system generates new characteristic valuecombinations directly from the data sources, that means without creatinga to-do list.

� Batch Generation The system generates new characteristic valuecombinations from the data sources in a background job, without creatinga to-do list.

Release SCM 4.1 offers four possible data sources for creating characteristic valuecombinations:

� Planning Object Structures These can be the same planning objectstructures that you are currently working with. In this case, the combinationsthat are loaded form the basis for new combinations; to create newcombinations, you must change the existing ones. As an alternative, you canupload combinations from other planning object structures. In this case, thestructure of both planning object structures should be similar. This meansthat at least one characteristic is the same. In order to work effectively,you should make sure that the differences are minimal. The values of thecharacteristics that are found in the target planning object structure but notin the source remain blank in the to-do list and must be added manually orthrough a BAdl. Characteristics that are contained in the source but not inthe target are ignored.

� InfoProvider You can upload combinations from Business InformationWarehouse InfoProviders. As an InfoProvider, you can use InfoCubes, ODSobjects or RemoteCubes for directly loading from non-SAP systems. Inaddition, you can provide conditions for selection.

� Data You can create a list with characteristic value combinations as data,then upload it You can find information on data formats when you select theinfo symbol that appears when you choose data as a data source. Please notethat you upload data from a PC in the online mode, but you can access itfrom the application server online as well as in the background.

� Business Add-In (BAdI) If you have implemented the COMBI_ENRICHmethod of the BAdI /SAPAPO/SDP_MASTER, import data into the To-DoList with that. You can find further information in IMG under BusinessAdd-Ins -> Extra Functions for Characteristic Value Combinations.



Release SCM 4.1 offers four possible composite consistency checks forcharacteristic value combinations:

� Characteristic Value Check The system checks whether conversionbetween the internal and external display is executed correctly. Leadingzeroes and templates for product numbers can cause problems. The systemchecks values that contain special characters. These characters are approvedfor the BW as a rule, but cause mistakes in demand planning.

� Check SCM Master DataWhen you set this indicator, the system checkswhether CIF master data exist for the product and location values. If youdo not use 9AMATNR and 9ALOCNO characteristics for the respectiveproduct or location, the system checks the characteristc you assigedwhile maintaining the planning object structure. If you did not assign acharacteristic, the check is not carried out.

� Check SCM Master DataWhen you set this indicator, the system checkswhether the values for the characteristic entered in its BW master dataalready exist.





Exercise 19: Creating Characteristic ValueCombinations

Exercise ObjectivesAfter completing this exercise, you will be able to:� Generate an InfoCube using characteristic value combinations from historical

data

Business ExamplePredictable characteristic value combinations, also called master data for salesplanning or planning objects, must be created. To do this, background jobsare periodically planned as an ongoing process which generates additionalcharacteristic value combinations when, for example, customer orders with newproducts or sold-to parties are loaded into an InfoCube.

Task:1. Generate characteristic value combinations for your planning object

structure, POS##. Use historical data from last year from the SALESInfoCube and version 000.

Hint: You must not select �Create time series objects�. If planningareas already existed for your planning object structure, thesystem would create time series for these planning areas and newcharacteristic combinations.

2. Review the characteristic value combinations that have been generated.



Solution 19: Creating Characteristic ValueCombinationsTask:1. Generate characteristic value combinations for your planning object

structure, POS##. Use historical data from last year from the SALESInfoCube and version 000.

Hint: You must not select �Create time series objects�. If planningareas already existed for your planning object structure, thesystem would create time series for these planning areas and newcharacteristic combinations.


b) Enter your planning object structure POS## and choose CreateCharacteristic Combination.

c) Choose Generate Immediately and choose in the Data Source sectionLoad data from: InfoProvider.

d) For the InfoCube, enter SALES and version number, 000.

e) As your Start date, enter a year ago from today, give the present date asyour End date, and choose Execute.

f) Return to the Maintain characteristic values relevant to planningscreen by clicking the green arrow twice.

2. Review the characteristic value combinations that have been generated.

a) Click the Display the characteristics combinations button and then

Execute .

b) Return to the S&DP Administration screen by clicking the green arrow(2 times).



Lesson Summary

You should now be able to:� Describe the tasks of planning objects, demand planning master data and

characteristic value combinations� Create characteristic value combinations



Lesson: Planning Areas

Lesson OverviewA planning area is the central data structure for saving planning data for demandplanning and supply network planning. Characteristics, key figures and theirfunctions for planning are determined here. It groups together the centralparameters that define the scope of the planning activities. It also determineswhether planning results are to be saved as orders or time series.


� Create planning areas and explain their tasks for planning� Explain the concepts of base unit of measure and base currency and the


influence processing performance

Business ExampleThe planning area is the central object where planning data is saved. The projectteam has the task of finding out whether all planning data worldwide can besaved in a planning area, or whether, for example, several planning areas mustbe used due to different currencies. Key figures and time buckets for planningare determined in the planning area. The planning area has a great influence onprocessing performance in the liveCache.

InfoCubes and Time SeriesAfter you have created the POS, which will house your master data in an APOInfoCube in the database, create a planning area to store the results of the ongoingdemand planning process in your liveCache. The planning area is the technicaldefinition of your liveCache tables and the time series is where transactional datais stored.


SCM220 Lesson: Planning Areas

Figure 94: Configuration at a Glance

A planning area is the central data structure of Demand Planning and SupplyNetwork Planning. It determines where and how the planning results are to bestored in the liveCache.

Figure 95: What is a Planning Area?



The planning area contains the following items:

� POS (planning characteristics and characteristic value combinations)� The planning buckets profile (time characteristics) that determines at which

periods data can be stored in this palnning area� The unit of measure which the data is planned in� The currency which the data is planned in (optional)� The currency conversion type to display planning data in other currencies

(optional)� The key figures used in this planning area� The settings which determine how individual key figures are disaggregated,

aggregated, and saved� Forecast Settings� The aggregate levels for saving data (in addition to the lowest detail level),

toward performance improvement. Assigning key figures to aggregates

Figure 96: Basic Parameters for the Planning Area

When performing consistent planning, you need to ensure that quantities andvalues can be aggregated reasonable, because the data is saved on the lowest level.In order to guarantee consistency, you have to define a base unit of measure forthe planning area. For this reason, if you want to plan products in meters, liters,or pieces and have not defined a unit conversion in the product master, the baseunit of measure of the product will be subjected to a 1:1 conversion into the baseunit of measure of the planning area. You can also define alternative conversion



factors for the unit of measure definition in the product master. You need the unitof measure conversion from the product master and planning area to generatethe planned independent requirements.

Note: If you want to plan different base UoM or currencies, you can alsoconsider working with several planning areas.

Caution: If you have not converted the historical records of the planningarea to the base UoM while loading into the InfoCube, the products willbe subjected to a 1:1 conversion into the base unit of measure of theplanning area. No UoM conversions are done by the system. This is onlypossible during interactive planning.

The Storage Buckets profile defines the periods or buckets (time characteristics)in which data is saved in the Planning area. You need to have a Storage Bucketsprofile before you can create a planning area.

To define Storage Bucket profiles, go to Current Settings in the Demand Planningor Supply Network Planning menu path and choose Periodicities for the planningarea. You select the periodicities in which you want to save data from the StorageBuckets profile and specify a default horizon for which you want to create a timeseries. You set the actual horizon when you create the time series of the planningarea for the version.

If you are using several time characteristics, you can provide a factory calendar fordisaggregation by time. This factory calendar (time stream) can be used to dividemonthly data into weekly data, for example. The time stream must be as long asor longer than the horizon. For example, you can store your actual data in theInfoCube on a monthly basis and enter the planning data in the planning area in amore detailed Time Buckets profile, such as on a weekly basis.



Figure 97: Assigning Key Figures to a Planning Area

You use the planning area to define whether key figure data is to be read fromInfoCubes or time series objects. The key figures display sales history forstatistical forecasting, and save forecasts and corrections made in the demandplanning process. If you are using a collaborative planning process, it would beideal to have one or more key figures available for each role in the process toenter corrections.

Note: Key figures are defined as APO key figures or BW key figures ininternal BW. Only APO key figures can be fixed. It is thus recommendedthat you create all key figures as APO key figures. You can basically useas many key figures as you want. But remember that the more key figuresyou use, the more memory is required and performance will be hindered.



Actual and Planning Data

Figure 98: Actual Data and Planning Data

When setting up Key figure data users can define if the data can be read fromInfoCubes or the time series objects (liveCache). You can specify a differentInfoCube as the source for each SAP SCM version. If you read a key figure froman InfoCube, the data is read from the InfoCube after selection but cannot bechanged. You cannot write to an InfoCube directly from Interactive Planning. Thisprocedure is advantageous if you always want to have access to the recent past.But remember that substantial data selections will affect performance negatively.

Another alternative would be to copy the data from the InfoCube into theliveCache. This enhances preformance, however the uploading process becomesmore complex.

Figure 99: Defining Key Figures in the Planning Area



The above-given graphic shows a detailed view of the key figures tab page in theplanning area. The tab page contains the following key figures:

� InfoCube: Reads from an InfoCube after selection and cannot be altered� Key figure semantics Defines how key figure data is saved: 000 as orders,

001 time series and 002 read from InfoCubes.� Category group: Groups order quantities in Supply Network Planning into

categories from the category group and displays them in the key figure (notrelevant for DP)

� Category: Defines the category with which orders are to be created insupply Network Planning, if the quantities are entered in the key figure(Not relevant for DP)

� UOM: If this indicator is set, products in the interactive planning tableare displayed in their base unit of measure as opposed to the base unit ofmeasure of the planning area. Key figures are still saved in the base unit ofmeasure of the planning area.

Aggregation and Disaggregation Methods

Figure 100: Disaggegation Methods

You can set separate structural and time-based disaggregation calculation types foreach key figure.



S - Pro rata

� S - Pro rata: Data is disaggregated according to the planning data ratiofor members. If there is no member data, the data is distributed equallybetween the members.

� P - Based on another key figure: If you change the data at the aggregatedlevel, it is distributed between the members according to the proportionscalculated in the disaggregation key figure, such as APODPDANT.

� I - Pro Rata; if initial, then Based on another key figure: This is a mixtureof S and P calculation types. It uses member data for S, not P.

� A - Average of key figures: An average aggregation of data is performedand, during disaggregation, the aggregated value is written to every member.For example, for prices or times.

� N - No disaggregation: You can choose not to have aggregation ordisaggregation if the key figure data is only required at one planning level.

� D - Average on the lowest detail level: As opposed to calculation type A,the system uses the values on the most detailed level to make the averagevalue. This is the level where each characteristic is assigned an individualvalue. This can result in different numerical values in comparison to type A.

Time-based aggregation and disaggregation defines how data is disaggregated bytime. The buckets to store data originate from the Storage Buckets profile. Forexample, if you select months and weeks in the Storage Buckets profile, the data isstored proportionately in weeks.

� P - Proportional distribution: Data is distributed by time so that each keyfigure value in the smallest storage bucket corresponds to the time-basedproportion of the value in the aggregated period.

� E - Equal distribution: Data is distributed equally over the individualstorage buckets.

� N - No time-based distribution: The value in the planning bucket is copiedinto the storage bucket, such as for prices.



Figure 101: Pro-Rata Disaggregation

The above-given graphic depicts how disaggregation is performed if you set thePro-rata disaggregation type for the Sales key figure.

The data is disaggregated according to the distribution ratio that the system derivesdynamically from the existing planned data. Proportional factors are not usedwith this disaggregation type.

The key figure above shows the pro rata disaggregation type. The process isdivided into the following steps:

� Two characteristics in this cube: Region and Customer.� One key figure� Three detail records in the liveCache� The key figure is initial.� Step 1: Enter 300 on selection Region.� The 300 is divided into the three detail records that make up the 100 for each

customer (Each representing 33%).� Step 2: Change Customer, B, to 200. This change now causes the proportions

to be recalculated� The system reads the sets from the liveCache and displays the total 400 as

the selection for the region.� Step 3: Change Region to 500.� This 500 is divided into the three detail records based on the planning data

stored in the table.� The proportional factors stored in APODPDANT play NO ROLE in this

example.



Figure 102: Disaggregation by Proportional Factors

The above-given graphic depicts how disaggregation is performed if you set thedisaggregation type, P, (based on another key figure) for the Sales key figure andenter the key figure, APODPDANT.

The data is disaggregated according to the proportional factors. Proportionalfactors are percentage-based and stored in the key figure, APODPDANT.

� Two characteristics in this cube: Region and Customer.� One key figure� Three detail records in the liveCache� Step 1: Enter 300 as the selection for the region.� This 300 is divided into three detail records based on the proportional factors

stored in the key figure APODPDANT.� Step 2: Change Customer B to 250.� The system reads the records and displays the total 400 as the selection for

the region.� Step 3: Change Region to 500.� The 500 is divided into the three detail records based on the proportional

factors stored in the key figure, APODPDANT. The detailed records wereignored.

Rounding in Demand Planning: In the planning area, if you use a base unitof measure that has no decimal places defined, quantities are only stored ininteger values. If you enter quantities at the aggregated level, the quantities arefirst disaggregated by time. First the quantities are disaggregated from monthsto weeks and then by characteristic combinations. This can lead to deviationsfrom the calculated proportional factors during disaggregation, especially for



small quantities due to the rounding errors. You will have few rounding errors ifyou only work with one Time Buckets profile or one base unit of measure withdecimal places.

Figure 103: Disaggregation by P and S

The above-given graphic depicts how disaggregation is performed for a key figureif disaggregation type I, pro-rata disaggregation; if initial on the basis of anotherkey figure, has been set.

If the key figure is initial, the data is disaggregated by proportional factorsaccording to the key figure, APODPANT. For example, if the planning dataalready exists, it is disaggregated according to the distribution ratio. The systemderives this ratio dynamically from the existing planning data.

� Two characteristics in this cube: Region and Customer.� One key figure� Three detail records in the liveCache� Step 1: Enter 300 as the selection for the region.� This 300 is divided into three detail records based on the proportional factors

stored in the key figure APODPDANT.� Step 2: Change Customer B to 250.� The system reads the records and displays the total 400 as the selection for

the region.� Step 3: Change the region to 500.� This 500 is divided into the three detail records based on the planning data

stored in the table. After the first disaggreation process, the system switchesto the pro rata disaggregation type.



Locking Logic in the Planning AreaBefore a user can change data in the system, this data is locked so that other userscannot change it at the same time. Without the locking function, changes couldlead to data inconsistencies. As a result it is only possible to change data thathas not been locked already. If the system cannot set a lock for a selection, itautomatically opens the selection in display mode. In demand planning, lockingis used in planning transactions such as interactive planning and backgroundplanning. Editing master data and the administration of planning areas are notaffected.

If the entries in a selection imply umambiguous values for other characteristics,these characteristic values are included in the selection. This means that anotheruser can create a new characteristic value combination for the characteristic valueof the original selection and enter data. For example: Product A is only available atlocation 0001. If you enter product A in a selection, location 0001 is automaticallyadded to the selection. A second user could then create a characteristic valuecombination for product A in location 0002 and enter data.

Locking can ocurr on two levels, aggregate and detailed. In aggregate locking,data is locked on the selection level. Due to reasons of performance, the systemdoes not consider each ambiguous characteristic value to be a wildcard. Thus,if you select two products, all products will be locked. This logic enhancesperformance especially in background processing, but requires detailed selectionsfor interactive planning, for example, by navigation attributes. The followingitems are considered wildcards for locking purposes:

� Value ranges, for example, products 1 to 1010. (Ranges also include entriesthat use <, >)

� Multiple values, for example locations DERBY, PHILADELPHIA, andSINGAPORE

� Exclusive selections, for example, not customer SMITH

A second selection can be locked, if for at least one characteristic in the twoselections there are single values that are not identical.

Alternatively, you can use a less restrictive logic. The system creates an entry(line) in the lock table for each unambiguous characteristic value. Wildcardsare not used. In the case of large selections (more than 100 entries) this cancause problems (The lock table can overflow.). If you uses intervals or exclusiveselection conditions in the shuffler, the system behaves as follows:

� If the characteristic involved is the one whose values are to be planned,the system overrides the selection condition by making individual entriesin the lock table

� If the characteristic has been only implicitly planned, the selection forambiguous characteristics are not overrided for the lock table. This meansthat these characteristics are not locked, thus, under certain conditions toolittle is locked.



This means that in comparison to the above examples, individual entries arecreated for multiple values, for example locations DERBY, PHILADELPHIA,and SINGAPORE

Note: If you want to use the alternative logic, set the detailed lockindicator for the corresponding planning area. SAP recommends thatyou use as detailed a selection as possible. This reduces the amount ofdata that is locked. You should try to avoid value ranges and multipleselections. One method of doing this is to use navigational attributes forselection purposes. See also Notes 379292 and 574716

Until SCM 4.0, locks were put on planning object levels, thus locking all keyfigures in a selection. Since SCM 4.1, it has been possible in detailed lock to seta key figure-specific lock in the planning area. This enables two planners withthe same selection but different key figures to plan. In SCM 5.0, the lockinglogic will be shifted to the liveCache.

Planning Area VersionsIn Demand Planning, data is divided into planning areas and subdivided intoversions. As a result, for the data that you save in planning version 1, planningarea 1 does not overwrite the data in planning version 1, planning area 2.

Figure 104: Initializing the Planning Area for the Version



To maintain versions, you follow this SAP standard menu path: Master Data→Planning Version Management→ Model and Version Management. A versionis always uniquely assigned to one model. In order planning, transaction dataintegration with the execution system can only be carried out from the activeversion, 000.

Note: Models are not relevant for demand planning.

In Demand Planning, versions enable you to plan and compare alternative demandplan simulation scenarios in parallel. You can transfer the planned independentrequirements between all versions. This means that version, 000, does not playa special role in Demand Planning. There is not such thing as an active versionin Demand Planning.

Each planning version or Demand Planning version is a separate set of data. Youcan display only one version at a time in Interactive Planning. You can use theBW Business Explorer to compare versions and run reports for SAP SCM data.

The planning area has to be initialized for each version, both for order key figuresand time series key figures. Initialization means that you will be creating thetables in the liveCache. When the Demand Planning key figures are initialized,time series are created for characteristic combinations.

Figure 105: Parameters for Initializing the Version

To initialize the planning area, right-click the planning area and select Create timeseries objects or run report /SAPAPO/TS_PAREA_INITIALIZE.



New time series have to be created for new master data. To delete �obsolete�periods (historical month 25), create the time series again and extend the planninghorizon. For this reason, you move only the start and end date for the planningversion. You can re-create the planning area time serices on a rolling basis. Thisdeletes �obsolete� periods and adds new ones for the future.

You can use report, /SAPAPO/TS_PAREA_INITIALIZE, and a dynamic variantto periodically move the initialization horizon of your planning areas in thebackground. Initializing larger horizons uses up more memory space.

You can create a dynamic selection variant for this. First of all, you must maintainthe initialization horizons of the key figures accordingly, relative to the entireinitialization horizon. Since the entire initialization horizon is maintained on theinitial screen (unlike the initialization horizons of the individual key figures),you can fill this using a selection variant or you can also dynamically accessand move this. If you modify the entire initialization period in this way, then theinitialization periods of the individual key figures will be automatically modifiedaccordingly, relative to the entire period, so that the start of the initializationperiod of the individual key figures is adjusted relative to the start of the entireinitialization period and the end of the initialization periods of the individualkey figures adjusted relative to the end of the entire initialization period. Here,it may also be noted that the periods after the actual shift are also modified inline with the periodicity of the planning area, that is, the start of an initializationperiod always falls at the start of a period and the end of an initialization periodalways falls at the end of a period.

Note: For more information, use the alias Quicksizer in SAPNet. Youthen specify the number of your characteristic value combinations, keyfigures, versions, and planning periodicities. If your Storage Bucketsprofile contains only months, the memory space required is five times lessthan if it is contained in both weeks and months.

Time series objects are created for a specific planning area and a specificplanning version. This planning area is assigned to exactly one master planningobject structure, which in turn, may use one aggregate, several aggregates or no



aggregates at all. A corresponding time series network is created in the liveCache(this is based on both the characteristic values combinations of the master planningobject structure and the aggregates):

� A corresponding time series is created in the liveCache for each characteristicvalues combination of the master planning object structure.

� A corresponding time series is created in the liveCache for each characteristicvalues combination of an aggregate.

Relations are created between the aggregate times series and the time seriesof the master planning object structure. They define which aggregate timeseries summarizes which time series of the master planning object structure.If several aggregates are used and a hierarchy is defined as a result, the timeseries are also created accordingly in the liveCache

Figure 106: Reducing memory requirement in LiveCache

Since SCM 4.0, the horizons for assigning memory in SAP liveCache can bedefined on a key figure-specific basis. The planning area is assigned validitydates to which each key figure will default. Each key figure can be adjusted todates that lie within the validity date range of the planning area. The purpose isto minimize the liveCache space that is consumed. There can be anywhere from30% to 50% savings in memory requirement. A quick count of the cells can give arough estimate of the savings.

Most key figure values are not needed for the entire horizon, thus both past andfuture, of the planning area. Some such as historical data only need to be definedin the past horizon while others such as sales orders only need to be defined in



the future horizon. With this flexibility, each key figure can have its own horizonand thus save on memory the liveCache space. This can amount to a significantsavings and reduce TCO.



Exercise 20: Creating a Planning Area

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create and initialize a planning area

Business ExampleThe manager at Precision Pump needs to create a planning area to be used fordemand planning in SCM.

Task:1. Create a planning area called PLAN## for your planning object structure,

POS##. Assign the following parameters:

Storage Buckets profile MONTHStatistics curr. EURExchange rate type MUnit of measure PC

Hint: If you want to plan in weeks and months, you can alternativelyuse the PUMP Storage Buckets profile.

Assign the following key figures to your planning area:

9APROM1 Promotion 1CORR CorrectionCORRHIST Corrected historyEXTRA## Customer correctionFINFOR Final ForecastFORECAST ForecastINVQTY Invoiced sales qty




Make sure that the invoice quantity is read from the SALES InfoCube. Setthe �Forecast� and �Correction� key figures so that the proportional factorfrom key figure APODPDANT is taken into consideration for disaggregatingblank columns.

Hint: Data from an InfoCube is generally read-only for planningareas. Writing data in the InfoCube is not usually possible. Forreasons of performance, SAP recommends that you copy historicaldata from the InfoCube into a time series instead of reading itdirectly from the InfoCube. Time series data can be read and written.If you want to save planning data in InfoCubes, you must create anextraction structure for the planning area and update the data in theInfoCube using the Administrator Workbench.

2. Create the time series for your planning area, (PLAN##), for version, 000.Do this for 24 months in the past, and 12 months in the future. To save spacein the liveCache, create time series for the Corrected History key figure forhistorical months only, and the remaining key figures for the current andfuture periods only.



Solution 20: Creating a Planning AreaTask:1. Create a planning area called PLAN## for your planning object structure,

POS##. Assign the following parameters:

Storage Buckets profile MONTHStatistics curr. EURExchange rate type MUnit of measure PC

Hint: If you want to plan in weeks and months, you can alternativelyuse the PUMP Storage Buckets profile.

Assign the following key figures to your planning area:

9APROM1 Promotion 1CORR CorrectionCORRHIST Corrected historyEXTRA## Customer correctionFINFOR Final ForecastFORECAST ForecastINVQTY Invoiced sales qty

Make sure that the invoice quantity is read from the SALES InfoCube. Setthe �Forecast� and �Correction� key figures so that the proportional factorfrom key figure APODPDANT is taken into consideration for disaggregatingblank columns.

Hint: Data from an InfoCube is generally read-only for planningareas. Writing data in the InfoCube is not usually possible. Forreasons of performance, SAP recommends that you copy historicaldata from the InfoCube into a time series instead of reading itdirectly from the InfoCube. Time series data can be read and written.If you want to save planning data in InfoCubes, you must create anextraction structure for the planning area and update the data in theInfoCube using the Administrator Workbench.




a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Environment→ Administration of Demand Planningand Supply Network Planning .

b) Right-click on the planning areas folder icon and select Create planningarea.

c) Enter PLAN## as the planning area, your planning object structurePOS## as the master planning object structure, the storage buckets

profile, and the units. Select OK to continue.

d) Choose the �Key figs� tab page.

Select the above-mentioned indices from the right-hand side and movethem to the left-hand column by selecting Column Left; Previous.

e) Select Detail View for the keyfigure, change the key figure role for the INVQTY key figure to 002,press ENTER, and enter the InfoCube SALES.

f) Select the Key fig. aggregatn tab page.

Set Calculat. Type �I� for the key figures FORECAST and CORRas in the graphic, press ENTER, then enter APODPANT as the

disaggregation key figure for each one. Click Save to save theplanning area, then select Back to return to S&DP Administration.

Figure 107: Key Figure Aggregation




2. Create the time series for your planning area, (PLAN##), for version, 000.Do this for 24 months in the past, and 12 months in the future. To save spacein the liveCache, create time series for the Corrected History key figure forhistorical months only, and the remaining key figures for the current andfuture periods only.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Environment→ Administration of Demand Planningand Supply Network Planning .

b) Right-click your planning area. Create time series objects. Enter Plngversion, 000, a start date of two years ago, and for the end date, enterthe date one year from now.

c) Press Enter. Next, click Key Figure View.

d) For the Corrected History key figure enter today's date as the end date.

e) In the Multiple Maintenance section at the bottom of the dialog boxenter today's date as the start date and one year from now as the enddate and hit enter. Choose all key figures except the Corrected Historykey figure, and click Execute Mass Changes. Now all of theselected key figures should be changed.

f) Select Execute (twice) .

Exit S&DPAdministration by selecting Back.



Lesson Summary

You should now be able to:� Create planning areas and explain their tasks for planning� Explain the concepts of base unit of measure and base currency and the


influence processing performance

Related InformationThe following Consulting note may be useful:

� 733645: Selection variant for /SAPAPO/TS_PAREA_INITIALIZE� 503363: Use & management of fixed aggregates in Demand Planning� 428102: Performance: Loading planning area version� 402046: Error message 'No LiveCache anchor found'


SCM220 Lesson: Product Interchangeability

Lesson: Product Interchangeability

Lesson OverviewIn this lesson you will learn the methods of product interchangeability that SAPSCM Demand Planning provides. We will overview each of the functionalitiesand then explore in more detail the realignment functionality and how it relatesto the configuration of Demand Planning including Planning Object Structures,Planning Areas, and InfoCubes.


� List the functions of product interchangeability in demand planning� Explain when to use each method of product interchangeability� Explain each method of product interchangeability and how it works� Explain the 2 step process of executing realignment.� Execute realignment on a Planning Object Structure, a Planning Area, and

an InfoCube

Business ExampleThe Precision Pump Company is introducing a new product which currently hasno historical data. Since it is not possible to generate the CVCs from historicaldata and creating them manually is too labor intensive, you will need to userealignment to create the CVCs necessary for planning. Then you will use thehistorical data from old products to make forecasts for the new product.

Product InterchangeabilityDemand planning contains functions for discontinuing and replacing products.These functions are integrated in the SCM Product Interchangeability components.

Demand Planning integrates with supersession groups. FFF classes are notof interest for DP, since demand is planned more general. The question ofwhich supplier a particular product is bought from is less important. Thereare four functions in demand planning that can be used for modeling productinterchangeability with initial and final phases.

Like ModelingPhase-In/Out ModelingProduct SplitRealignment



You can switch directly to the maintenance transactions for these functions via themaster data maintenance of product interchangeability. Alternatively you can alsoautomatically generate profiles using existing data. Demand planning does notnormally take actual stock into consideration, since warehouse usage strategiesare more relevant to SNP and PP/DS.

DP plans in time buckets. A change such as a discontinuation step is valid for acomplete bucket. This means that DP may not model discontinuation to the day.Depending on the grid spacing of the time series in the planning area, DP reducesthe need for a successor product as of the first of the month. In the case of productsplit the split is then valid from the start of the next month.

Contrary to general Demand Planning (DP), each product that you want to usetogether with the Interchangeability functions must have a product master record.These products must have been assigned to the model with which you want towork and you must have created an interchangeability group in Master Data→Product Interchangeability Master Data→ Maintain Interchangeability Group.

Which method of Product Interchangeability shouldbe used?This topic endeavors to present you with guidelines to help you decide how toimplement Interchangeability in Demand Planning. Which method you choose isbased on your planning requirements.

Product SplitProduct splits can be used to include short-term changes. This function usesdata saved in DP to generate planned independent requirements for product andlocation for one or more products in the same location. In the product split tableyou can specify that a product split is valid only for a limited period of time.You can thus plan short offensives without having to create characteristic valuecombinations in Demand Planning. Since the product split is only executedduring release to SNP, you cannot see the changed distribution of data in DemandPlanning. If you also want to see the changes in DP, you have to release SNP to DP.



Product splitting allows you to replace a product with one or more products whenit is released. This means that you can plan one product or product group inDemand Planning and use another product or products for further processing inSNP and PP/DS. There are several possible uses for this function:

� The use of a product split allows you to separate out different kinds ofdemand; for example, unpromoted demand and promoted demand.

� You can create a demand plan on an aggregate level, for instance for aproduct group, and then break it down using fixed a proportion when yourelease the plan.

� You can use it in a supersession scenario. You plan an old product, but whenyou release it, the system replaces the old product with the new one.

You can use a product split in the following situations: · ·

� Release of the demand plan from Demand Planning to Supply NetworkPlanning

� Transfer of the demand plan from Demand Planning to ECC DemandManagement

Like ModelingThe classic DP lifecycle planning functions give you the largest degree offlexibility when making a demand forecast. Historical data is only needed forcharacteristic values combination. More complex mapping processes are alsopossible: for example, summing the historical data from several existing productsto generate the historical data for the new product or using factors from a timeseries. Using such weighting factors it is possible to introduce seasonal effectsinto such a model. For more information on Like Modeling see the lesson onLifecycle Planning.

Phase-In/Out ModelingPhase-In/Out models are, apart from macros, the only method of depictinga gradual controlled replacement of one product with another. A phase-outprofile can prevent you from creating future demand for a discontinued productbut it does not transfer the demand to the successor product as in other SAPSCM applications. This transfer is a part of SNP or PP/DS planning. For moreinformation on Phase-in/out modeling see the lesson on Lifecycle Planning.

RealignmentWhenever you want to plan a new product in Demand Planning, you must havepreviously created the necessary characteristic value combinations before youstart planning. Realignment is one method to do this. However realignment alsocopies the data from the source characteristic value combinations to the target



combinations. Notes are also copied. Since subsequent copying of data is muchmore time-consuming than creating new CVCs, you should always make copies atthe same time as you create new combinations, where necessary.

You can also copy data when realigning. You may have to revise the data beforeyou can actually start working with the new product. Since realignment isgenerally run as a background job periodically after all entries have been made inthe realignment table, it is not a method that should be used for quick changes. Itis not suitable for periodic product changes. Realignment is suitable for scenarioswhere a product is replaced for technical reasons and you can expect the demandto be very similar to the predecessor product.

The Realignment FunctionIn modern business processes, master data is constantly changing, for examplenew products are introduced, organizational structures change or existing productsare manufactured in new locations. These changes need to be accounted for inyour demand planning process. Two processes are involved:

1. The system generates new characteristic value combinations. If required, itdeletes the old combinations later.

2. The system copies the planning data to the new combinations.

Figure 108: The �Realignment� Screen



Since doing this manually requires a lot of work, SAP provides functions to createnew characteristic value combinations and to copy the data. As of release 4.0the process is split into two:

1. Realignment - Characteristic value combinations are maintained for masterplanning object structures. Realignment itself works at this level. The systemcreates new characteristic value combinations based on selected values fromexisting combinations. It then copies the data from the old combinations tothe new ones. The data of all key figures in all planning areas based on themaster planning object structure is copied. If required, the old combinationsare then deleted together with the data.

2. Copy Function - Data itself is stored at planning area level. If thecharacteristic value combinations already exist and you want to copy datafrom one combination to another, you use this function. Since the extentof the function is limited to the planning area, more selection options areavailable than for the master planning object structure. It is possible:

� To copy data between individual versions� To select the key figures to be copied� To restrict the period in which data is copied

The system also:

� Copies notes to the target characteristic value combination, providing that indoing so it does not overwrite an existing note.

� Modifies generated selections (with selection IDs that were not createdmanually) according to the new CVCs. These selections are used: toassign forecast profiles; to assign alert profiles; with consumption groups(descriptive characteristics).

� Copies promotions to target characteristic values, providing you deletethe source characteristic value combination. Promotions with the newcharacteristics combination are given In Process status.

There is also an extensive log function.

The copy function is similar to some of the functions available in CopyManagement. However, copy management does not allow you to copy data fromindividual characteristic value combination to other combinations.

You cannot carry out realignment for CBF characteristics including the product.The characteristics for the CBF profile table and line are not visible in realignment.You can use the product as a selection criteria. It is possible to use realignment forthe non-CBF characteristics in a CBF planning area.

Similarly, you cannot carry out realignment for the DP-BOM characteristics9ABOMID, and 9ABOMIO. You can only use the product (for example9AMATNR) and 9APPNAME as selection criteria.



During the realignment process, navigation attributes can be ignored, since theseattributes are not part of the characteristic values combination. They only �point�to another characteristic's value. Navigation attributes can be directly altered byloading the BW master data.

InfoCubes can also be reorganized in realignment. The InfoCube must containall the characteristics that are in the realignment table for the master planningobject structure. You choose the InfoCubes that are to be realigned (you can selectseveral InfoCubes). If you only want to realign the InfoCubes and not the masterplanning object structure, select the Only Realign InfoCube indicator.

In general you run realignment itself periodically as a background job, forinstance at night or during the weekend. This is not only important for reasonsof performance. This also prevents characteristic values in the realignment tablefrom being locked by selections made in interactive or background planning.

Realignment is executed on the Planning Object Structure since that is where thecharacteristic value combinations reside. Copy is executed on the Planning Areaor the InfoCube, whichever is designated, since that is where the data is stored.

The process consists of two major steps � Maintenance of the realignment tableand execution of the realignment run.

Figure 109: New Characteristic Combinations - Realignment

Characteristic value combinations are the master data of Demand Planning. Inthe diagram, the predecessor product's (P-102) characteristic values combinationswere used for planning the new product (NEW). With realignment, you can copyexisting characteristic values into new characteristic values. You then decide if the



predecessor data should be deleted (Move) or copied (Copy) and if the target datashould be overwritten or added to existing data. Planning data can be copied bypercentage. You can realign planning areas and InfoCubes.





Exercise 21: Realignment (Optional)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create CVC's in mass using realignment

Business ExamplePrecision Pump frequently needs to restructure: the mapping of materials tomaterial groups changes, sales organizations win new customers and old productsare replaced with new ones. Old characteristic values combinations need to beconverted and new CVCs generated. Planning data from existing planning objectsmust also be given new CVCs. Precision Pump is introducing the NEW product toreplace the P-104 product. The new product is to be sold in all the places whereP-104 has been available, so you need to create appropriate CVCs in demandplanning.

Task: Creating CVC's with RealignmentUse the realignment functionality to create the CVC's for the NEW product.

1. The NEW product will replace the P-104 pump. Generate the appropriatecharacteristic value combinations for the NEW product by making an entryin the realignment table using the CVCs for P-104.

2. Review the new characteristic value combinations in the planning objectstructure.



Solution 21: Realignment (Optional)Task: Creating CVC's with RealignmentUse the realignment functionality to create the CVC's for the NEW product.

1. The NEW product will replace the P-104 pump. Generate the appropriatecharacteristic value combinations for the NEW product by making an entryin the realignment table using the CVCs for P-104.

a) Follow the menu path Advanced Planning and Optimization→DemandPlanning→ Environment→ Data Administration→ Data Realignment

b) The Realignment application is already selected.

c) Enter your planning object structure POS##.

d) In the Realignment Table section, select Create/Change Table andanswer Yes to both questions to create and restrict the characteristicselection.

e) Deselect all, select only the APO Product characteristic. SelectContinue.

f) You'll find yourself back at the realignment main screen. Now selectMaintain Entries. An empty table will appear.

g) Now select Create.

h) Accept the defaults and enter P-104 in the From field and NEW in the

To field. Select Save.

i) Select Back to return to the realignment main screen.

j) Select Execute and the CVC's for NEW will be created. Watch thestatus bar for messages. After successfully completing the realignmentselect Back to return to the main menu.

2. Review the new characteristic value combinations in the planning objectstructure.

a) Follow this path: Master Data→ Demand Planning Master Data→Maintain Characteristic Values

Select your planning object structure, POS##.

Select Display characteristic value combinations. Click SelectionConditions and for APO Product, enter product NEW.



Lesson Summary

You should now be able to:� List the functions of product interchangeability in demand planning� Explain when to use each method of product interchangeability� Explain each method of product interchangeability and how it works� Explain the 2 step process of executing realignment.� Execute realignment on a Planning Object Structure, a Planning Area, and

an InfoCube



Lesson: Proportional Factors

Lesson OverviewThis lesson addresses the proportional factors in the planning area. If you haveset disaggregation by proportional factors (APODPDANT) for key figures in theplanning area, you need to ensure that the proportional factors are re-calculatedperiodically by a background job. In this lesson you will learn how to createproportional factors.


� Describe the key figure settings in the planning area� Describe aggregation and disaggregation methods� Calculate proportional factors� Describe the effects of proportional factors on planning

Business ExampleIt is essential to agree early on in the project which key figure should bedisaggregated and how, because these rules are set in the planning area and cannotbe altered later, for as long as the planning area contains data. For example, if youforecast at the detail level, you do not need any proportional factors for this keyfigure, since the proportion of the forecast data can control the disaggregation.If, however, corrections are entered on the aggregated level, it is important to useproportional factors for this key figure.

Creating Proportional FactorsSAP SCM Demand Planning is based on the concept of consistent planning. Thatmeans when an individual looks at an aggregate set of characteristic values, thedetailed records are summarized real time. If a value is created or changed at asummary level, the value is automatically disaggregated and stored at a detailedlevel.


SCM220 Lesson: Proportional Factors

Figure 110: Creating Proportional Factors

Proportional factors can be used to control the disaggregation process, dependingon the rules set. Disaggregation can be executed in different ways for different keyfigures. The proportional factors determine the percentages used to disaggregateaggregated data down to the members. When using SAP SCM Demand Planningproportional factors can be maintained the following ways:

� Automatically calculated based on a key figure from an InfoCube� Automatically calculated based on a key figure from an planning area� Manually maintained in interactive planning

SAP provides a program for automatically calculating proportional factors.To execute the program, select APO→ Demand Planning→ Environment→Calculate Proportional Factors. In this program you can set whether historicaldata should be called from an InfoCube or from a planning area. Once the sourceis established, you enter the version, the key figure, and the horizon for analyzingthe historical data. Additionally, you will choose how far into the future theproportions will be calculated. As of SCM 4.1, you can also execute proportionalcalculation for selections.



When calculating the proportions you have two choices for the results:

1. Calculate fixed proportions in entire horizon: If you have, for example,selected the billing quantity, the system calculates the total billing quantity forall characteristic value combinations and all periods in the specified horizon.The system then sums the key figure values for all of the characteristicvalue combinations in the entire horizon. Next, the system determines theproportion of each individual characteristic value combination in the totalbilling quantity. The results of this division are the proportional factors.

The result is, the same proportional factors are derived for all of the periodsin the horizon specified under Create proportions in horizon.

Note: Must enter a From and To date in the Basis for ProportionalCalculation section

2. Detailed proportions for all periods: The system calculates the total billingquantities for each individual specified period and determines the proportionof each CVC per period. This establishes a seasonal proportional factorfor the time bucket profile. Now use Create proportions in horizon toestablish, for example, that the proportions from January 2005 should becarried over to January 2006, and so on. The system stores the proportionalfactors internally. To see them, view the job log and the detailed periodoverview. The special feature of this option is that it allows you to calculateperiod-dependent proportions within one time horizon.

Note: You only need to enter a Period from date in the Basis forProportional Calculation section.

The proportional factor of the Period from will be saved in the firstperiod of the Create proportions in period from. The operationwill be repeated for the next period and continue until the To dateis reached.

Regardless of which method you choose, the system stores the proportional factorsinternally in the key figure APODPDANT.

You can also maintain the proportional factors interactively in the planning table.



Exercise 22: Calculating ProportionalFactors

Exercise ObjectivesAfter completing this exercise, you will be able to:� Generate proportional factors from historical data.

Business ExampleProportional factors are used when planning at a higher level and the DemandPlanning needs to disaggregate the values to the detail level. Precision PumpCompany has decided that the best starting point for them is to base thedisaggregation on last year's historical sales. As the demand planner, you willneed to calculate the proportional factors based on historical data.

Task: Calculating Proportional FactorsProportional factors should be calculated based on the actual historical data storedin the SALES InfoCube.

1. Generate the proportional factors for your planning area, PLAN## based onthe SALES InfoCube. Calculate the fixed proportional factors for planningversion, 000, for the next six months. Base the calculation on the meanproportional factor in the �Invoiced sales qty� key figure from version 000for the past six months. Display the proportional calculation log.

Hint: For the proportion calculation in this example, the systemsums the invoiced sales quantity data of the past 6 months. Thesystem then calculates the mean proportional factor of eachcharacteristic value combination in this horizon and saves it in theAPODPDANT key figure.



Solution 22: Calculating ProportionalFactorsTask: Calculating Proportional FactorsProportional factors should be calculated based on the actual historical data storedin the SALES InfoCube.

1. Generate the proportional factors for your planning area, PLAN## based onthe SALES InfoCube. Calculate the fixed proportional factors for planningversion, 000, for the next six months. Base the calculation on the meanproportional factor in the �Invoiced sales qty� key figure from version 000for the past six months. Display the proportional calculation log.

Hint: For the proportion calculation in this example, the systemsums the invoiced sales quantity data of the past 6 months. Thesystem then calculates the mean proportional factor of eachcharacteristic value combination in this horizon and saves it in theAPODPDANT key figure.

a) Follow the path: Advanced Planning and Optimization→ DemandPlanning→ Environment→ Calculate Proportional Factors.

b) Enter PLAN## as your planning area and SALES as your InfoCube in

Basis for Proportion Calculation, then select Execute .

c) Select planning version 000 for which to calculate the proportionalfactors.

d) Choose Planning version 000 in the section Basis for proportion calc.and assign the �Invoiced sales qty� key figure as the basis.

e) In the From Date enter six months in the past and in the To Dateenter today's date.

f) In Create Proportions in horizon, enter today's date as the From Dateand six months from now as the To Date.

g) In Proportion calc. type, select Calculate fixed proportions in entirehorizon.

h) On the Other Settings tabstrip, select Log for proportional calculation

and choose Execute.

i) Scan the log report to be sure you have generated some non-zeroproportional factors and exit back to the main menu by clicking thegreen back arrow 3 times.



Lesson Summary

You should now be able to:� Describe the key figure settings in the planning area� Describe aggregation and disaggregation methods� Calculate proportional factors� Describe the effects of proportional factors on planning


� 363221: Consulting: Proportional factors / version copy



Lesson: Version Management and Release to SNP

Lesson OverviewThis lesson covers saving movement data in versions and explains releasingDemand Planning to SNP as planned independent requirements.


� Explain the function of versions in planning� Explain the release of Demand Planning to SNP as planned independent

requirements

Business ExampleAs the planning manager, you are responsible for ensuring that planning data isperiodically stored in the database and alternative planning scenarios are managedin alternative versions. At the end of a planning period, you need to decide whichplanning data should be released as the planned independent requirements forlogistical supply planning in SNP or PP/DS.

Version Parameters in Planning

Figure 111: Version Management


SCM220 Lesson: Version Management and Release to SNP

You can also use version management to copy Demand Planning versions. Aversion number has to be created. Demand Planning versions have 10 charactersor more and can contain alphanumeric characters. Next, you can use the Copyfunction to copy the data. Both the version data and the version number aredeleted when you delete a version using Version Management.

If you work with various different planning areas in Demand Planning, you willneed to compile the planning data if you want to generate an overall plan forthe enterprise. To do this, you can use Copy/Version Management in DemandPlanning. Advanced Planning and Optimization→ Demand Planning→Environment→ Data Administration

For general copying of version, you can also use the transaction that SNP andPP/DS use. Advanced Planning and Optimization→ Master Data→ PlanningVersion Management→ Copy Planning Version

You can use the BW Business Explorer in SCM to compare versions and runreports for SCM data.

Releasing the Demand Plan

Figure 112: Releasing the Demand Plan to SNP

If the forecast has been completed in Demand Planning and after the variousstakeholders in the forecast have reached an agreement, you release the forecastquantities to LiveCache as planned independent requirements. The data, whichmay be customer or region-specific, is consolidated at product or location level.For this to happen, there must be location product master records for the versionmodel to be released. The quantity conversion for the planning area's base quantityunit must also be defined for the product's base quantity unit.



The demands that are not order-based (planned independent requirements) formthe basis of Supply Network Planning or Production Planning/Detailed Schedulingduring which bills of material are exploded, capacities are planned, and sourcingis carried out for the entire supply network.

Demand Planning is generally not as detailed as supply planning. If you definedweekly and monthly buckets in the Storage Buckets profile of your DemandPlanning planning area, the planned independent requirements are createdinteractively with the smallest grid (weeks). In mass processing, you can use thedata view to control whether weekly or monthly requirements are to be created.

If the storage buckets profile from the DP planning area does not contain days,you can still split the sales quantities over days using the daily buckets profile.

The allocation of planned independent requirements is also controlled over theperiod split on the SNP2 tab page in the SNP demand profile screen area. Theperiod split determines how planning data is disaggregated over time if thedemand plan from Demand Planning is released to Supply Network Planning. Todefine the period split, you choose one of the following options:

� Blank - The data is disaggregated and released to all of the workdays inthe specified horizon.

� 1 - The data is disaggregated to all of the workdays in the specified horizon,but released only for those days that lie in the present and future

� 2 - The data is disaggregated to the workdays in the present and future,and then released for the same days.

After the planned sales quantities are checked for feasibility in Supply NetworkPlanning or Production Planning/Detailed Scheduling, the results can betransferred back to Demand Planning. Macros are then used to analyze thedeviations between the demand plan and the quantities that can feasibly beproduced, and alerts are generated if the deviations are too large.

The Create New Orders indicator means that the released amounts will be addedto the planned independent requirements that already exist. It is a good idea touse this setting only if you want to release from multiple planning areas. If youchoose to release interactively, the indicator is called Add Dataon that screenbut has the exact same functionality.

Use the following menu path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Release→ Release Demand Planning to SupplyNetwork Planning


SCM220 Lesson: Version Management and Release to SNP

Lesson Summary

You should now be able to:� Explain the function of versions in planning� Explain the release of Demand Planning to SNP as planned independent

requirements


Unit Summary SCM220

Unit SummaryYou should now be able to:� Explain the tasks of planning object structures in demand planning.� Determine planning levels for demand planning in the planning object

structure.� Describe the tasks of planning objects, demand planning master data and

characteristic value combinations� Create characteristic value combinations� Create planning areas and explain their tasks for planning� Explain the concepts of base unit of measure and base currency and the


influence processing performance� List the functions of product interchangeability in demand planning� Explain when to use each method of product interchangeability� Explain each method of product interchangeability and how it works� Explain the 2 step process of executing realignment.� Execute realignment on a Planning Object Structure, a Planning Area, and

an InfoCube� Describe the key figure settings in the planning area� Describe aggregation and disaggregation methods� Calculate proportional factors� Describe the effects of proportional factors on planning� Explain the function of versions in planning� Explain the release of Demand Planning to SNP as planned independent

requirements



Test Your Knowledge

1. A version is always uniquely assigned to one model.Determine whether this statement is true or false.□ True□ False

2. How do you initialize the planning area?

3. A version is always uniquely assigned to one model.Determine whether this statement is true or false.□ True□ False


5. What is the path to release the demand plan online as planned independentrequirements?

6. What is the Add Data indicator?



Answers

1. A version is always uniquely assigned to one model.

Answer: True

A version is uniquely assigned to one model.


Answer: To initialize the planning area, right-click the planning area andselect Create time series objects.

3. A version is always uniquely assigned to one model.

Answer: True

A version is uniquely assigned to one model.


Answer: To initialize the planning area, right-click the planning area andselect Create time series objects.

5. What is the path to release the demand plan online as planned independentrequirements?

Answer: The path is: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Release→ Release Demand Planning to SupplyNetwork Planning.

6. What is the Add Data indicator?

Answer: The Add Data indicator means that the released amounts can beadded to the planned independent requirements that might already exist.


Unit 9Planning Books and Data Views

Unit OverviewIn this unit you will learn how to create your own planning books with user-defineddata views. You will also learn how to create macros.


� Use planning books for demand planning� Create your own planning books and data views� Use S&DP time bucket profiles for planning� Use macros within planning tables� List the various functions of macros� Use macros to generate alerts

Unit ContentsLesson: Creating Planning Books and Data views .. . . . . . . . . . . . . . . . . . . . . . . .358

Exercise 23: Creating Planning Books and Data Views... . . . . . . . . . . . .369Exercise 24: Creating Planning Books for Collaborative Planning.. .377

Lesson: Macros .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .382Exercise 25: Creating Macros .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .393


Unit 9: Planning Books and Data Views SCM220

Lesson: Creating Planning Books and Data views

Lesson OverviewIn this lesson, you will learn to use planning books for demand planning. Next,you will learn how to create a user-defined planning book and data view. Finally,you will learn to use time bucket profiles for planning.


� Use planning books for demand planning� Create your own planning books and data views� Use S&DP time bucket profiles for planning

Business ExampleAs one of the people responsible for implementing SAP SCM demand planning,your organization has asked you to create planning books and data views fora planning group. To do this, choose the planning area characteristics and keyfigures for the user and set the planning horizon and periodicity. Next, createplanning books and data views for background jobs.

Planning Books and ViewsWhile the majority of the demand planning process will be executed as backgroundjobs, participants in the process will need to have a tool for interactive correctionof statistical forecasts, allowing data to be exchanged with possible other users.


SCM220 Lesson: Creating Planning Books and Data views

Figure 113: Planning Books and Data Views

The planning book is the most important tool for the demand planner. A planningbook is based on the characteristics and key figures of the planning area. Thedemand planner does not maintain the planning area, rather, the data within theplanning area.

Planning books will consist of the following items:

� Characteristics� Key Figures� Data Views� Macros� Forecasting functionality� Promotional Planning functionality� Interactive graphics

The planning book describes a role in the demand planning process and thedata views of the tasks assigned to this role. In addition, the data view can beuser-specifically personalized. Companies are creating more and more differentplanning books since only certain roles are important for the statistical forecast,while others are used for promotions.



Figure 114: Default and user-defined data views

When designing the planning book, you select the characteristics and key figuresthat are required by the role to complete the tasks. Each planning book cancontain multiple views, where you can group key figures for detailed analysesand planning tasks:

� Custom Data view(s) (configurable) - Unlimited� Univariate view (SAP Delivered)� MLR view (SAP Delivered)� Composite view (SAP Delivered)� Promotional Planning view (SAP Delivered)

To create a planning book, choose Design Planning Books from the CurrentSettings in Demand Planning or Customizing for Demand Planning. A Wizarddirects you with the steps required to create the planning book. When you havemade all your entries on one tab page, select Continue to go to the next tab page.When you have completed all the tab pages, you can save the planning book. Todo this, select Complete and confirm all the messages that appear. The systemsaves the planning book and adds the standard key figures required to executethe chosen functions.

The first time you create a planning book, you can get to the next view only if youselect Continue in the wizard. You can choose the tab pages only in the Changemode.



Figure 115: Creating a User-Defined Planning View

Planning books and data views represent a section of the data of a planning area.When defining a planning book and a data view, you determine the extent ofthis section. You determine which part of the planning area data should beincluded when the planning book/data view is used. As you do not generallyneed all the data of the planning area, and as different data is generally neededfor different planning processes, it makes sense to consider the followingpoints for performance reasons (these apply to interactive planning (transaction/SAPAPO/SDP94) as well as to mass processing):

� The data to be read should be kept as small as possible. You can minimizethe size of the data if:

� the data view only contains the key figure(s) that are needed for theplanning process. The system will only read the key figures of the dataview when there are macros for the data view but NO macros for theplanning book itself. We therefore recommend that you only createmacros for data views, not for the planning book itself, and that youoptimize the data views with regard to the key figure selection.

� the data view covers the exact period required for the relevant planningprocess.

� When processing the data, the same aggregation level needed for theplanning process should be predefined. This applies both to interactiveplanning and to mass processing. If the storage buckets profile of a planningarea consists of weeks and months, for example, it is preferable from aperformance point of view if the data is edited in a monthly period splitinstead of in a weekly period split. Time-based aggregation is defined usingthe storage buckets profile ID (future and/or past) of the data view.



When creating a book the for the first time, it will define what characteristics andkey figures will be relevant for that role. By limiting the number characteristicsyou may be forcing aggregate planing from the start of the process.

When including the key figures in the planning book, you must ensure that anykey figure that is relevant for the process is included. Upon configuring the dataview, key figures can be hidden, or set to write protected.

For each planning book, you create a Data View for the planning book. You needat least one view for planning.

You enter a view description. The data view description appears at the left of theinteractive planning table in the planning book shuffler.

You can enter Private, Protected or Changeable for the Status. Private means thatthe view can only be used by the current user. Protected view denotes that otherusers will not be able to change the view, but they can display it, personalize it, oruse it as a template for their own views. Changeable views can be changed by allusers who have customizing authorization.

You enter planning bucket profiles to define the planning horizon. The planningbucket profiles can contain either all the periods or a subset of periods from thetime buckets profile on which the planning area is based. If you plan past andfuture dates, you must enter past and future planning bucket profiles. You canspecify which part of the past and future planning bucket profiles. You can alsoenter which periods in the past buckets profile are changeable. You enter eithera date or an offset to specify the start of the future planning horizon. The offsetindicates the number of periods between the current date and the start of the futureplanning horizon. The future planning buckets profile indicates the period to beused, such as days, weeks, or months. You can set the graphic display of theperiods in the planning table using the period indicator.

To use two planning tables in one data view, select the indicator next to thesecond table title, e.g., the capacity view in planning book 9ASNP9. You can alsoenter a text for this table. An additional tab page will appear in the planning bookmaintenance assistant; you can define the key figures for the second table here.The indicator cannot be retroactively deleted.

In the key figure tab, you will add which key figures are relevant for that dataview task. Additionally, this is were the order of the key figures is maintain. Bydragging and dropping key figures in a particular order, you can arrange the keyfigures based on your companies specifications.

Caution: Remember to include key figures for macro calculations. Keyfigures can be write protected or hidden, if the user is not allowed tochange them. Careful: macros orient themselves on the order of the keyfigures and not on the technical key! If you change the order of the keyfigures in the data view retroactively, you will be asked if the macrosshould be deactived.



Once the planning book has been created you can maintain the existing data viewor create additional data views for the same book. These additional views shouldsupport different tasks or views of the data for the same role.

You have access to the Key Figure Attributetab page only in the change modeof an existing planning book. Within, this tab, you can change the key figuredescription for that specific Planning book. In addition, you can create auxiliarykey figures by entering a technical term in the key figure's field and giving ita free text description.

Caution: Auxiliary key figure data is not save in the liveCache.

Defining Time Bucket Profile for Data Selection

Figure 116: Time Bucket Profiles in Supply and Demand Planning

The planning buckets profile defines the periods or buckets in which data in thedata view is displayed and planned. The planning buckets profile defines thefollowing factors:

� The periods that are used for planning� The number of periods used of each period type� The display sequence of the periods in the planning table

You can plan according to months, weeks, or user-defined periods in combinationwith fiscal year variants.

When creating a time buckets profile, use only those periodicities that are alsodefined in the planning buckets profile of your planning book. Otherwise youcannot use the planning buckets profile in the data view of your planning book.



The planning buckets profile is assigned to the data view within the planningbook. For example, you can create three Data views for three different users witheach view based on a different planning buckets profile: the marketing departmentin months, the sales department in months and weeks, and the logistics departmentin weeks and days.

In the above example, the planning horizon is three months. The first two monthsappear in weeks. The first week is displayed in days.

The first row defines the entire length of the time horizon, and the following rowsdefine the different time segments of the horizon. You make entries in the Numberand Display periodicity columns. The contents of the other columns appearautomatically when you press Enter key. To see which periods are displayed,select Period list.

In interactive demand planning, the forecast key figure and other key figures, suchas the adjusted past within the past and forecast horizon are saved independentlyof the planning horizon of the planning book or planning view. This means inparticular that the forecast can also save results outside of the planning horizonfor the planning book or planning view. For performance reasons, however, thehorizon of the planning book must be greater than the horizons in the forecastprofile in the background processing. It is sufficient therefore if the horizon of theplanning book in greater than or equal to the forecast horizon. In this case, theforecast results are saved but the adjusted past or the ex-post forecast cannot besaved. Therefore, a warning message indicating that the horizon of the planningbook does not contain the past period for the forecast is issued here.

Note: For performance reasons the period units of the planning book andforecast profile must be identical in the background processing. This isdirectly due to the fact that you are not allowed to you use planning bookswith mixed period units in the background processing. These restrictionsdo not exist in the interactive planning. Furthermore, note that data isnot saved in lines or areas that are not ready for input in the backgroundprocessing. Because of this, you have to prepare the past horizon for theplanning book for input, so that the corrected history can be saved .



Figure 117: Variable Time Buckets

Data is always stored in the smallest periodicity and is aggregated to the timebuckets profile being used.

You use the planning bucket profiles you created to define the future planninghorizon and past horizon of a planning book. You enter both of these horizons intothe planning book. When the system shows the horizons in interactive DemandPlanning and interactive Supply Network Planning, it starts with the smallestperiod and finishes with the largest period. The future horizon starts with thesmallest period on the start date of the planning horizon and continues processingfrom that point onwards, with the largest period at the end. The past horizonstarts with the smallest period on the day before the start of the future horizon andcontinues processing from that point backwards, with the largest period at the end.

Time-based aggregation and disaggregation defines how data is disaggregated bytime. The buckets to store data originate from the Storage Buckets profile. Forexample, if you select months and weeks in the Storage Buckets profile, the datais stored for June and July 2000 in the following buckets: June 1-4 (Thursday toSunday) = four days, June 5-11 (Monday to Sunday) = seven days, June 12-18(Monday to Sunday) = seven days, June 19-25 (Monday to Sunday) = seven days,June 26-30 (Monday to Friday) = five days.

Designing Data ViewsOnce you have created a planning book with a data view, you can make somedesign changes to the data view. The view can be changed in customizing. If youare authorized to change planning books, you can also change planning books anddata views from interactive planning with the switch.



Under APO→ Demand Planning→ Environment→ Current Settings→ DefinePlanning Book fist select the Data View radio button and then the data view youwould like to process.

The data view can be displayed in two forms:

1. Tabular (grid)2. Graphical

By selecting Layout Design, users can see the table, or a graph, or both. If youchoose both you can decide if you want them one on top of the other (vertical) orside by side (horizontal).

When reviewing the table, by selecting a key figure and performing a right mouseclick you can make the following enhancements:

� Adjust Row height and/or column width, with drag and drop� Delete Row� Hide Row� Set row to Change or Display� Set Background Cell color� Set Text (Foreground) Color� Set number of decimal places� Add/Remove Icon to draw attention to row� Rest the Row height, column width, or row attributes back to default� Show or hide row in graph� Group Rows - Group together the selected rows (at least two) behind a

master row. The planner can expand and collapse the grouping by clickingon the Expand and Collapse icons in the interactive planning table.

While in design mode the graph can be adjusted as well. Not all settings can besaved. See note 706092

Copying Planning BooksPlanning books must not always be created from the beginning. You can also copya planning book to the same or another planning area.



While in the transaction /SAPAPO/SDP8B (Define planning book), follow thesesteps

1. Select the Data view radio button.2. Select thewith Referenceindicator.3. Enter the name of your new planning book, in the planning book section4. Enter your new data view name5. Using the drop down functionality, you will select the planning book/data

view combination your wish to use as a template.

6. Now select Create.

Once you have accomplished this, back out of the transaction and re-enter it tomake any changes

If you wish to change the planning area, once in the initial screen for DefinePlanning Book, follow the menu path: Edit→ Assign Planning Area . Selectyou planning area and select Continue.

Caution: If assigning a planning book to a new planning area, you MUSTreview the macros. By changing the planning area you most likelychanged the key figures, thus changing the foundation of the macros.

Access to Planning BooksUsing transaction /sapapo/sdpplbk APO→ Demand Planning→ Environment→Current Settings→ Assign User to Planning Book , you can display entries thatprovide you with information about which planning book or data view was lastused in the transaction Interactive Demand Planning . You can use this transactionto define which planning book and data view the user works with when he callsup the transaction. Otherwise the first time a user accesses interactive demandplanning, planning book 9ADP01 will be displayed. Switching planning books isonly possible in transaction /SAPAPO/SDP94.

� Specific Book: This indicator limits the user to one planning book and allof the data views within that planning book only (simplified authorizationconcept).

� Specific Selection: With this option, the user always enters a planning bookwith the default data view; the last data view the transaction had is notre-opened.

Note: When accessing a planning book via the Internet, assigning a dataview to a user will prevent them from having access to any other books.





Exercise 23: Creating Planning Books andData Views

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create planning books and data views

Business ExampleAfter defining the planning area, the demand planner at the Precision Pumpcompany needs to create a planning book.

Task: Creating a Planning Book1. Create a planning book called SALES## for your planning area, PLAN##.

Enter SALES as the planning book text. Activate the manual maintenanceof proportional factors, navigation for promotion planning, and the threeforecasting views (univariate, MLR and composite forecast).

Ensure that all the characteristics and key figures from your planning areaare added to the planning book.

In the planning book, create data view DEMAND PLAN. Set its historyhorizon to 24 months and its future horizon to 12 months. The historical datafor the past 24 months should be visible in Interactive Planning. Adopt allthe key figures from the planning book into the data view. Complete theplanning book.

2. In the planning book, change the description of the �Invoiced sales quantity�,(INVQTY), key figure to ACTUAL SALES.

In addition, create an auxiliary key figure called PREVIOUS YEAR SALESand assign it to the data view.

Drag PREVIOUS YEAR SALES and drop it on the Invoiced sales quantitykey figure.

To change the sequence of the key figures in the data view, drag and dropthem in order from top to bottom Final Forecast, Correction, CustomerCorrection, Promotion 1, Forecast, PREVIOUS YEAR SALES, CorrectedHistory, and Invoiced sales qty.

Hint: Auxiliary key figures are only used for displaying in theplanning table. The data in this key figure is neither saved,aggregated, nor disaggregated.




3. Create a second data view called PROPORTION with the descriptive text,MANUAL MAINTENANCE OF PROPORTIONAL FACTORS, for yourSALES## planning book. This view should allow the proportional factors tobe maintained in the APODPDANT key figure for the next 12 months.

4. Call up interactive demand planning, and select your DEMAND PLAN dataview from the SALES## planning book.

5. In interactive planning, check your planning book, SALES##, with both dataviews in Interactive Planning. Are all the key figures and the data viewhorizon displayed correctly? Does the Proportional factor key figure onlyexist in the PROPORTION data view? Go to the design mode and definethe PREVIOUS YEAR SALES and PROMOTION key figures as outputkey figures.

6. Selections enable easy access to characteristic combinations that are requiredon a daily basis. Create selection PROD## for version 000 and createproducts P-102 to P-104 in interactive planning in the SALES## planningbook in the DEMAND PLAN data view. Assign selection PROD## toyour selection profile. Load the data for the product, P-102. Is actual datadisplayed in the past?



Solution 23: Creating Planning Books andData ViewsTask: Creating a Planning Book1. Create a planning book called SALES## for your planning area, PLAN##.

Enter SALES as the planning book text. Activate the manual maintenanceof proportional factors, navigation for promotion planning, and the threeforecasting views (univariate, MLR and composite forecast).

Ensure that all the characteristics and key figures from your planning areaare added to the planning book.

In the planning book, create data view DEMAND PLAN. Set its historyhorizon to 24 months and its future horizon to 12 months. The historical datafor the past 24 months should be visible in Interactive Planning. Adopt allthe key figures from the planning book into the data view. Complete theplanning book.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Environment→ Current Settings→Define Planning Book.

b) Enter SALES## as your planning book and selectCreate.

c) Enter Demand planning as your Planning book text, and PLAN## asyour planning area.

d) Select the Maint. Props Manually indicatorand Navigate to four views.

e) Select the Continue button to go to the next tab page.

f) Select Add All Key Figures to copy all the key figures from theplanning area into the planning book.

g) Click Continue to go to the next tab page.

h) Click Add All Charact to copy all the characteristics from theplanning area into the planning book.

i) Click Continue to go to the next tab page.

j)

Note: Changes can only be made to the Key Figure Attributetab, after the planning book has been completed. Whencreating the book, this tab page will be skipped.




k) Enter DEMAND PLAN as the data view on the Data View tab page, aswell as in Data View Descr. and Title Table.

l) Enter 12MONTH for the TB profile ID (future), and for the TB ProfileID (history), choose 24MONTH.

m) Click ENTER, select the Visible Fr. indicator, and select the date from24 months ago using F4.

n) Click Continue to go to the next tab page.

o) Click the Add all key figures button, to copy all the key figuresfrom the planning book into the data view.

p) Click Complete and then Yes to save the planning bookand data view.

q) Stay in the SDP: Interactive Planning - Initial Screen.

2. In the planning book, change the description of the �Invoiced sales quantity�,(INVQTY), key figure to ACTUAL SALES.

In addition, create an auxiliary key figure called PREVIOUS YEAR SALESand assign it to the data view.

Drag PREVIOUS YEAR SALES and drop it on the Invoiced sales quantitykey figure.




To change the sequence of the key figures in the data view, drag and dropthem in order from top to bottom Final Forecast, Correction, CustomerCorrection, Promotion 1, Forecast, PREVIOUS YEAR SALES, CorrectedHistory, and Invoiced sales qty.

Hint: Auxiliary key figures are only used for displaying in theplanning table. The data in this key figure is neither saved,aggregated, nor disaggregated.

a) The SALES## planning book now appears in the field. Select

Edit.

b) On the Key Figure Attributes tab page, select Invoiced Sales QuantityINVQTY, then select Free Text and enter ACTUAL SALES. Selectthe Save Settings button.

c) Enter PREVIOUS YEAR SALES in the key figure by overwriting theexisting key figure and hit enter. Enter this character string in the Free

Text field. Select Save Settings.

d) Select on the last tab page (Key Figures) and drag the PREVIOUSYEAR SALES key figure from the right to the left side. UseDrag&Drop to set the sequence of your key figures.

e) Click Complete and then Yes to save the planning bookand data view.

f) Stay in the SDP: Interactive Planning - Initial Screen.




3. Create a second data view called PROPORTION with the descriptive text,MANUAL MAINTENANCE OF PROPORTIONAL FACTORS, for yourSALES## planning book. This view should allow the proportional factors tobe maintained in the APODPDANT key figure for the next 12 months.

a) The SALES## planning book now appears in the field. Select the Data

view radio button, enter PROPORTION, and selectCreate.

b) Select on the �Data view� tab page, and for the Data view description,enter MANUAL MAINTENANCE OF PROPORTIONAL FACTORS.

c) In the TB Profile ID (future) field choose 12MONTH.

d) Select on the last tab page (Key figures).

e) Drag the Proportional factor key figure from the right to the left side ofthe book.

f) Select Complete and then select YES to save theplanning book and data view.

g) Exit the SDP: Interactive Planning - Initial Screen by selecting thegreen back arrow.

4. Call up interactive demand planning, and select your DEMAND PLAN dataview from the SALES## planning book.


b) Above the Planning Book/Data View window in the shuffler, click

Own data views only.

c) Expand your SALES## planning book and double-click on yourDEMAND PLAN data view.

d) Stay in interactive planning.

5. In interactive planning, check your planning book, SALES##, with both dataviews in Interactive Planning. Are all the key figures and the data viewhorizon displayed correctly? Does the Proportional factor key figure only




exist in the PROPORTION data view? Go to the design mode and definethe PREVIOUS YEAR SALES and PROMOTION key figures as outputkey figures.

a) Double-select each of your data views in turn. Are all your key figuresdisplayed correctly?

b) You open the design mode by clicking Design.

c) Select the PREVIOUS YEAR�S ACTUAL key figure row. Hold theCtrl key down and select the PROMOTION key figure row. Rightselect on one of the selected rows and select Selected Rows→ Outputonly from the context menu. The rows are grayed out.

d) Adjust the width of the key figures column by selecting and dragging itto the right so all key figure names can be seen.

e) Click Live to return to interactive planning, and then click

Save. The rows are colored only after data selection.

6. Selections enable easy access to characteristic combinations that are requiredon a daily basis. Create selection PROD## for version 000 and createproducts P-102 to P-104 in interactive planning in the SALES## planning




book in the DEMAND PLAN data view. Assign selection PROD## toyour selection profile. Load the data for the product, P-102. Is actual datadisplayed in the past?


b) In the Shuffler, click the triangle next to your SALES## planning bookto expand the views, then double click on the DEMAND PLAN view.

c) Click the Selection Window icon and select APO Product in Show .

d) In the lower section, you can now store conditions for the products.Version 000 is the default since it is the only initialized version thatexists for the planning area..

e) In the next row, select APO Product, and on the right side click theMultiple Selection icon . Click the Rangetab page to enter the product

area P-102 to P-104, then click the copy icon.

f) Click the Save , icon and enter PROD## as the selection

description. Click Save and Adopt.

g) To enable easy access to this selection, assign the selection to your UserID by clicking the Selection profile header bar. Adialog window will open up. Drag your selection from the right side of

the window to the folder on the left side. Click Save and Copy.

h) To load the data, first double-click selection PROD##, then double-clickproduct P-102. The sales data of the previous year will be immediatelydisplayed in the table. Scroll to historical data in the table to check ifthe historical data from the InfoCube is displayed in the Actual SalesQty key figure. The actual data should be displayed now because it wasread from InfoCube version 000 when you loaded the data.



Exercise 24: Creating Planning Books forCollaborative Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create planning books and data views for collaborative planning via the

internet.

Business ExampleAs the demand planner you are responsible for getting input from customersto create the forecast. You will receive planning books and data views wherecustomers can input their data for the plan. You have to restrict the customer'saccess to read and change data only using selections.

Task:1. Create a second planning book called COLL## with the description,

Collaborative Demand Planning, for your planning area, PLAN##. Assignthe CUSTOMER CORRECTION (EXTRA##) key figure and characteristicsAPO PRODUCT and SOLD-TO PARTY to the planning book. Create a dataview called COLL## with the description, Collaborative Demand Planning.This data view should have a planning horizon of three months and containall the key figure of the planning book.

2. Go to Interactive Planning, select your COLL## planning book with the dataview COLL##, create selection, CUST 1032## for product P-102 and sold-toparty 0000001032, then assign the selection to your selection profile.



Solution 24: Creating Planning Books forCollaborative PlanningTask:1. Create a second planning book called COLL## with the description,

Collaborative Demand Planning, for your planning area, PLAN##. Assignthe CUSTOMER CORRECTION (EXTRA##) key figure and characteristicsAPO PRODUCT and SOLD-TO PARTY to the planning book. Create a data




view called COLL## with the description, Collaborative Demand Planning.This data view should have a planning horizon of three months and containall the key figure of the planning book.

a) Follow the path: Advanced Planning and Optimization→ DemandPlanning→ Environment→ Current Settings→ Define PlanningBooks.

b) Enter COLL## as your planning book and click Create.

c) Enter �Collaborative Demand Planning� as your planning book textand PLAN## as your Planning area.

d) Click Continue to go to the next tab page.

e) Drag and drop the CUSTOMER CORRECTION (EXTRA##) keyfigure from the planning area onto the planning book.

f) Click Continue to go to the next tab page.

g) Drag and drop the APO PRODUCT and CUSTOMER characteristicsfrom the planning area onto the planning book.

h) Click Continue to go to the next tab page.

i) Changes can only be made to the Key Figure Attribute tab, after theplanning book has been completed. When creating the book, this tabpage will be skipped.

j) In the Data view tab page, enter COLL## as the data view andCollaborative Demand Planning as the data view description.

k) For the TB profile ID (future) choose 03MONTH and leave thehistorical time bucket blank.

l) Click Continue to go to the next tab page.

m) Click Add All Key Figures , to copy all the key figures from theplanning book into the data view.

n) Click Complete and then Yes to save the planning bookand data view.




2. Go to Interactive Planning, select your COLL## planning book with the dataview COLL##, create selection, CUST 1032## for product P-102 and sold-toparty 0000001032, then assign the selection to your selection profile.


b) Choose COLL## in you planning book and double-click on viewCOLL##.

c) Select the Selection Window icon . Choose Show APO Productand limit to product P-102 and customer 0000001032.

To save the selection as COLL 1032 ##, click Save . Enter COLL1032 ## for the selection description. Click Save and Adopt.

d) To enable easy access to this selection, assign the selection to theselection profile by clicking the Selection Profileheader bar. A dialog window will open up. Drag your selection from

the right side of the window to the folder on the left side. Click

Save and Copy.



Lesson Summary

You should now be able to:� Use planning books for demand planning� Create your own planning books and data views� Use S&DP time bucket profiles for planning


� 737230: Consulting: Planning in technical periods� 707789: Planning book/data view performance� 706092: Saving Settings for the Graphic in Interactive Planning� 458127: Start interactive planning with authorization concept� 445837: Assignment of users to planning books/data views� 425126: Advice: Version-dependent key figures in the planning book� 400434: Authorizations in APO Demand Planning� 380352: DP 3.0: User exits / Business Add Ins� 357789: Consulting: Horizons forecast and planning folder



Lesson: Macros

Lesson OverviewIn this lesson, you will learn to use macros in a planning book. You will also learnabout advanced macro functions for executing complex calculations. Finally,you will learn about the alert monitor, which generates notes about user-definedconditions in a sales plan.


� Use macros within planning tables� List the various functions of macros� Use macros to generate alerts

Business ExampleThe work of the demand planner includes many calculations for determiningbudgets, evaluating deviations, and making corrections In addition, you needto ensure that any deviation between the planning data and the actual data isintimated to each demand planner in the form of alerts.

Creating MacrosIn order to make the demand planning process work, users will need to calculatemore than just a statistical forecast. By using macros users will be able to openup a whole new world of functionality

Figure 118: Example for macros


SCM220 Lesson: Macros

Advanced macros are formulas that a user can define and execute within theplanning table of a planning book. They are similar to spreadsheet formulae,but provide more flexibility and function better than the typical formulae inspreadsheets. The extreme flexibility of the advanced macros enables the plannerto model a user-specific planning environment based on an individual's businesstasks.

You can use the advanced macro functions to do the following:

� Control how macro steps are to be processed using control statements andconditions.

� Build a macro consisting of one or more steps (interim results can beprocessed further).

� Select from a wide range of functions and operators.� Define offsets that enable the results of one period to be determined by a

value from the previous period.� Restrict the horizon in which the macro is executed to a specific period

or periods.� Write macro results to either a row, a column, or a cell.� Write the results of a macro step to a row, column, cell, or variable, and use

the results only in subsequent iterations, macro steps, or macros.� Make ad hoc analyses of the forecast or transaction data using specific icons.� Create context-specific and user-specific planning views.� Trigger an alert in the Alert Monitor to inform the planner of specific

company situations.

Figure 119: Creating a Macro



You can maintain macros using the data view's Designmode or the separateMacroWorkbench transaction. Macros perform complex mathematical calculationsquickly and easily. Macros are executed either directly by the user or, throughbatch job processing, automatically at a set point of time.

You can define a macro either for an entire planning book or for a specific dataview. To do this, the system automatically creates a macro book for each dataview. SAP recommends for performance purposes you create macros at the viewlevel. You can also copy macros from the existing books into a new book.

Macro work area is where you build macros step by step. The Elements areacontains the rows, operations, and functions that you can drag and drop onto yourmacro. The elements from the upper left can be dragged and dropped onto themacro work area. You can also right-click to perform the same operation. TheDepot is where you can store macros that you have completed working on. Thisgives you more space in the macro work area so you do not have to scroll. Eventsis where you assign macros to run automatically. You will see this in a futuresection. The clipboard is where you see what you have copied or cut.

Figure 120: The macro levels

Macros are maintained on four levels:

� The first level contains the different macros.� On the second level, you can subdivide the calculation operations within a

macro into different steps. This corresponds to compounding in methematicalfomulas and the completion period or number of iterations.

� The third level contains the interim results and final results.� On the fourth level, you define the operands and calculation operations.



Figure 121: Macro Level One - Macro Descriptions



The first step, (level 1) is to determine the macros. You can control the followingfunctions on level 1:

� Macro Type - Is the macro a single execution macro or a collective macrothat can run several macros in a series

� No Direct Execution - By setting this indicator, you prevent the macro frombeing offered in the list of executable macros in interactive planning.

� No Confirmation Prompt - Dialog box query before macro execution� Assigned Push Button - Assign an icon to a macro, so that it can be

triggered interactively from the planning table� Do not Initialize Auxiliary TableIf the auxiliary table is not initialized when

you call up the macro, any values that are in the table from the execution ofprevious macros remain in the table and can be used in the current macro.All entries in the auxiliary table are lost when you leave the planning book

� Only Calculate at Detailed Level - If you set this indicator, the macro onlyhas effect at the detail level. In macros the level is defined by the currentdrill-down situation. This means in interactive planning that when you enterthe planning book by making a selection, this level is at first the detail level,although perhaps only one characteristic has had a value assigned. If youthen drill down to characteristic A, this is level 1, and this level becomes thedetail level. The entry level is now the aggregate level (AGG LEVEL).If you subsequently drill down to a further characteristic B, this is level 2and becomes the detail level. In the batch mode, the drill down situation iscontrolled by the macro functions DRILL_DOWN() and DRILL_UP().

� Calculate at All Planning Levels - If you set this indicator, the macro isexecuted at all planning levels.

� Calculate Objects at a Specific Level - If you set this indicator the macrois only effective on the level that you specify in the field to the right.In macros the level is defined by the current drill-down situation. Thismeans in interactive planning that when you enter the planning book bymaking a selection, this level is at first the detail level, although perhapsonly one characteristic has had a value assigned. If you then drill down tocharacteristic A, this becomes level 1, and is the detail level. The entry levelis now the aggregate level (AGG LEVEL). If you subsequently drill-downon a further characteristic B, this is level 2 and becomes the detail level.

� Do not Display Initial Values - If you set this indicator, the macro skipsany initial values during execution. Since this can drastically improveperformance, SAP recommend that you set this indicator.

� DB Alerts in Display Mode - Set this indicator, if you want new databasealerts to be displayed when a user is in display mode.



Figure 122: Level Two - Macro Step

The second step (level 2) of each macro is to define the step(s) that the macro willperform. You are required to determine at least one step. In certain cases whichrequire complex calculations, several steps might be required. The results ofcalculations that are not stored in the planning area, can be used immediately inanother calculation. Thus the calculations are dependent. If created separately, thesystem might not know in which order to execute the macro. This is often referredto a Circular Reference. We can control the following functions on level two:

� Processing area - What periods of times will be calculated by the macros.

� Future: This indicator determines that the macro step should only runin the future data view horizon, and not in the past.

� Past: This indicator determines that the macro step should only run inthe past data view horizon, and not in the future.

� Total - Set this indicator, if the macro should run over the whole period,past and future, in the planning book. This will be regulated by the timebucket profile of the data view.

� User Defined - Set this indicator, if you want to define yourself theperiod in which the macro step runs. Here you enter the period inthe form of buckets. Although in the fields to the right you enter theperiods as months or weeks for example, the system regards them inrelation to the start and end of the planning book. This means thatwhen the planning period 'rolls on', the period in which the step runsremains the same relative to the start and end of the planning book, forexample from the first to the third month. The dates that you see arerelative to the current system date.



� Date Dependent - Set this indicator, if you want to specify exact dateswithin which the macro step should run. Unlike the User-Defined entry,the dates do not change with relation to today's date or the validityperiod of the planning book. If you select this indicator, you must alsoenter from and to dates in the fields to the right.

� Complete Overlapping - Set this indicator, if you want to specify exactdates within which the macro step should run. Unlike the User-Definedentry, the dates do not change with relation to today's date or thevalidity period of the planning book. If you select this indicator, youmust also enter from and to dates in the fields to the right.

� Automatic Column Adjust for Start/End - You can use these twoindicators, if you are working with a data view that can contain a varyingnumber of time buckets (columns). The number of columns in the table thendepends on the date when you call up the planning function. One time (forinstance when you defined the macro) it may have 20 columns, on anotherdate 24 columns. This can produce unexpected results in macros, since thelast column, which was the 20th column when you defined the macro, couldhave had a different number when executed. If you set this indicator, thesystem automatically determines at runtime which is the first or last columnand uses this column in the relevant calculations.

� Handling of Missing Values - If values are missing use a zero or cancelthe processing.

� Processing Direction Forwards/Backwards - You specify in whichdirection a step calculation should run, from the past to the future (default) orbackwards from the future to the past.

Figure 123: Level Three - Results Row



The third step (level 3) of each macro is to define the results of the macro. Thiswill be in the form of a column, row, table, or condition result. We can control thefollowing functions on level 3 (planning row):

� Row - Specify the column or row/key figure that will hold the result.� Column Offset - In this field you can specify a time bucket to which the

macro element applies. This allows you to perform calculations using datafrom different time buckets. The time references are with respect to the startof the current step. For instance, if the current step is from month 01/2002 tomonth 12/2002 and you define a results row from 03/2002, this means thatthe result is written to the cell two buckets in the future.

� Change Scope - This field describes the change scope for the resultselement. If the function that is called changes the attributes of a cell (forinstance by changing the background color or setting an icon), the Changescope should be Attributes. otherwise the setting is Values or Fixed values.Depending upon the option chosen, it will affect what Operands you can use.

� Write Area - The two options in this box determine how the system writesdata to cells that lies outside the processing area defined in the step. Ifyou select Processing Area, the system does not write data to outside theprocessing area. If you select Whole Table, the system writes to cells outsidethe processing area.

� Outside of Write Area - Write in Boundary areas, You have set the readarea or the write area to processing area and select this indicator, the systemuses the first or last value within the processing area. Do Not Write - Youhave set the read area or the write area to processing area and select thisindicator, the system uses the first or last value within the processing area.

� Erase Protection: This option is used to determine the erasing procedure forthe macro. With Retain Existing Values, the system only writes the macroresult in empty cells. With Erase Existing Values, the system writes macroresults in all cells. If a value is already displayed in a cell, it will be replacedby the macro result.

� Calculation Error: This indicator determines how the system proceedswhen a calculation cannot be carried out for some reason. The No Valueindicator determines that the step will be terminated when such an erroroccurs, and no entry will be made. Processing continues with the next step.Replace with Zero: If this indicator is set, the system writes 0 as the valuefor an erroneous calculation. Processing can continue. This is particularlyimportant for batch processing.



Figure 124: Macro Example

SAP provides a number of macro examples. To access the macro examples, goto the MacroBuilder and select Macros for→ SAP supplied→ SAP exampleand template macros.

All macros can be imported into macro books.

Figure 125: Automatic Macro Execution



You can set that a macro is to be executed automatically for a particular planningbook. There are four ways to execute a macro automatically:

� The start macro is run when you access the planning table.� The default macro is run when you regenerate your plan, such as press

ENTER, and when you open or save the plan. This means that the macrois run several times.

� A level change macro is always run during a drill-up or a drill-down.� The exit macro is run immediately before data is saved.

To designate a macro for automatic execution, drag it over the Default, Start,Level Change or Exit node.

If a macro is not set for automatic execution, it can be executed directly inInteractive Planning or mass processing.

To exclude a start, default, or exit macro from the list of macros that can beexecuted from the Interactive Planning screen, select Cannot be executed directlyin the macro's attributes.

Using Macros for Alert Monitoring

Figure 126: Using Macros to Generate Alerts

In Demand Planning, you can use macros to define your own alerts. There arestandard alerts for forecasting.

The Alert Monitor informs you of exception situations that occur in your plan.Demand Planning alerts are generated using macros and the forecast.

Dynamic alerts reflect the current planning situation interactively and are deletedas soon as the transaction is completed. This alert type is only used in SNP and isnot suitable for large alert quantities because a large number impedes performance.



Database Alerts show the planning situation at the time the macro was executed.When dealing with large data volumes, execute the macro using a batch job.Moreover, you can create customer-specific alert types.

Maintain your SDP alert profile if you want to monitor alerts from Supply andDemand Planning in SAP SCM. You use this profile to maintain a user-specificselection of alerts for your area of responsibility.



Exercise 25: Creating Macros

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a macro to adopt actual data from the previous year� Create a macro for calculating the demand plan� Create macro for generating alerts

Business ExampleIt is important for the demand planner at Precision Pump that the sales from theprevious year are available for comparison when a demand plan should be createdon the basis of the company forecast. Moreover, he needs to be alerted whenexceptions in planning arise.

Task: Creating Macros in the data view1. In the DEMAND PLAN data view, of your SALES## planning book,

create a macro called LAST YEAR. This macro copies last years actualsales (INVQTY) into the current years auxiliary key figure, PREVIOUSYEAR SALES. When you configure the macro, make sure that it is runautomatically whenever changes are made in the planning table.

2. Write a macro called DEMAND PLAN CALCULATION for your SALES##planning book in the DEMAND PLAN data view. This macro will calculatethe final demand plan from the sum of forecast, promotion, correction, andInternet correction, using the formula DEMAND PLAN = FORECAST +PROMOTION + CORRECTION + CUSTOMER CORRECTION.

Configure the macro so that it is run automatically whenever a changeis made in the planning table. Check the automatic macro calculation inMacroBuilder.

3. Create a macro with the description ALERT in your SALES## planningbook. This macro should generate an alert when the correction in one columnis larger than the forecast.

When you configure the macro, make sure that it is run automaticallywhenever changes are made in the planning table.

4. Test your macros for your SALES## planning book with the DEMANDPLAN data view in Interactive Planning. Load the data for P-102. Assign thePUMP as the SDP alert profile in Interactive Planning, to display your alerts.

Do not save. In the MacroBuilder, remove the ALERT macro from thedefault macros of your SALES## planning book and the DEMAND PLANdata view.



Solution 25: Creating MacrosTask: Creating Macros in the data view1. In the DEMAND PLAN data view, of your SALES## planning book,

create a macro called LAST YEAR. This macro copies last years actualsales (INVQTY) into the current years auxiliary key figure, PREVIOUSYEAR SALES. When you configure the macro, make sure that it is runautomatically whenever changes are made in the planning table.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Environment→ Current Settings→ Macro Workbench.

b) Choose Filter Macro Book, select Processed Macro Book, and save.Double-click on your macro book SALES## view (DEMAND PLAN).

c) Drag the macro from the Elements window in the upper leftcorner and drop it into Macros in the center window. In the dialog box,

enter LAST YEAR as the name of the macro. Click Continue.

d) Drag the step from the Elements window and drop it on yournew macro in the main window. In the descriptive text section of thedialog box, enter STEP 1.

e) Select the Future indicator in Processing Area. Click Continue.

f) Drag a planning table row from the Elements window anddrop it on your Step 1 in the center window. In the Attributes ResultRow in the dialog window, choose PREVIOUS YEAR'S SALES. Click

Continue.

g) Drag a planning table row from the Elements window anddrop it on your results row in the center window. Select Create inNext Level.

h) In the Argument Row Attributes select ACTUAL SALES from thepossible entries as the row in the dialog box. The Column Calculation

Start should be this month one year ago. Click Continue.

i) Select your macro PREVIOUS YEAR and click Check. Next,

select Generate.

j) Drag the macro from the center window and drop it on DEFAULT inthe Events window in the upper right corner.

k) Click Save . Remain in MacroBuilder You can drag your macro tothe Depot to make more room to work on the next one if you would like.




2. Write a macro called DEMAND PLAN CALCULATION for your SALES##planning book in the DEMAND PLAN data view. This macro will calculatethe final demand plan from the sum of forecast, promotion, correction, andInternet correction, using the formula DEMAND PLAN = FORECAST +PROMOTION + CORRECTION + CUSTOMER CORRECTION.




Configure the macro so that it is run automatically whenever a changeis made in the planning table. Check the automatic macro calculation inMacroBuilder.

a) Drag the macro from the Elements window in the upper leftcorner and drop it into Macros in the center window. In the dialog box,enter DEMAND PLAN CALCULATION as the name of the macro.Click Continue.

b) Drag the step from the Elements window and drop it on yournew macro in the main window. In the descriptive text section of thedialog box, enter STEP 1 and limit the processing area to Future. Click

Continue.

c) Drag a planning table row from the Elements window anddrop it on your Step 1 in the center window. Select Final forecast from

possible entries as the row in the dialog box. Click Continue.

d) Drag the Operator/Function from the Elements windowand drop it on your DEMAND PLAN row in the center window.

Change the operator to SUM(. Click Continue.

e) Drag a planning table row from the Elements window anddrop it on the operator in the center window. Append In the dialog box,

select Forecast as the row. Click Continue. Repeat these steps forthe key figures: PROMOTION, CORRECTION, and INTERNETCORRECTION.

f) Drag the Operator/Function from the Elements windowand drop it on your last row CUSTOMER CORRECTION in the center

window. Append. Change the operator to ). Click Continue.

g) Select your macro DEMAND PLAN CALCULATION and select

Check. Next, click Generate.

h) Drag the macro from the center window and drop it on DEFAULT inthe Events window in the upper right corner.

i) Click Save. Remain in MacroBuilder You can drag your macro tothe Depot to make more room to work on the next one if you would like.

j) To check the calculation of the macros, use Utilities→ Test Macros.Enter a value and run the macro for calculating sales plans in the future.

3. Create a macro with the description ALERT in your SALES## planningbook. This macro should generate an alert when the correction in one columnis larger than the forecast.




When you configure the macro, make sure that it is run automaticallywhenever changes are made in the planning table.

a) Drag the macro from the Elements window in the upper leftcorner and drop it into Macros in the center window. In the Descriptivetext section of the dialog box, enter ALERT MACRO. Click Continue.

b) Drag the step from the Elements window and drop it on yournew macro in the main window. Enter STEP 1 in the descriptive textsection of the dialog box and limit the processing area to Future. ClickContinue.

c) Drag a control statement from the Elements. window anddrop it on your Step 1 in the center window. Select Create in next level.

The condition will default to IF. Click Continue.

d) Drag a condition from the Elements window and drop iton your control statement in the centerl window. Select Append. In the

dialog box, enter the text Correction→ Forecast. Click Continue.

e) Drag a planning table row from the Elements window anddrop it on your results row in the center window. Select Create in nextlevel. Select Correction from the possible entries as the row in the

dialog box. Click Continue.

f) Drag the Operator/Function from the Elements windowand drop it on your CORRECTION row in the center window. Select

Append. Select the Operator >, and click Continue.

g) Drag a planning table row from the Elements window anddrop it on your operator in the center window. Select Append. In the

dialog box, select Forecast as the row. Click Continue.

h) Drag the alert/status from the Elements window and dropit on your condition in the centerl window. Click Append. In the dialog

box, enter the text Correction→ Forecast. Click Continue. Thealert must be set on the third level!

i) Drag a control statement from the Elements window anddrop it on your alert in the center window. Click Append and choose

ENDIF. Click Continue.

j) Select your macro ALERT and click Check. Next, click

Generate.




k) Drag the macro from the Central window, and drop it over DEFAULTin the Events window, in the top right corner of the screen.

l) Click Save and leave the MacroBuilder by clicking the greenarrow.

4. Test your macros for your SALES## planning book with the DEMANDPLAN data view in Interactive Planning. Load the data for P-102. Assign thePUMP as the SDP alert profile in Interactive Planning, to display your alerts.

Do not save. In the MacroBuilder, remove the ALERT macro from thedefault macros of your SALES## planning book and the DEMAND PLANdata view.

a) Follow this path: Demand Planning→ Planning→ InteractiveDemand Planning.

b) Double-click on the DEMAND PLAN data view for your SALES##planning book.

c) To load the data, first double-click the selection, PROD##, and thenthe product, P-102.

d) In addition, assign the PUMP as the SDP alert profile in InteractivePlanning so that your alerts will be displayed. Use the menu path:Settings→ Assign alert profile.

e) Do not save. Exit interactive planning.

f) In the MacroBuilder menu path Advanced Planning and Optimization→ Demand Planning → Environment → Current Settings →Macro Workbench, double-click on your macro book SALE## view(DEMAND PLAN)

g) Remove the ALERT macro from the default macros of your SALES##planning book and the DEMAND PLAN data view by right clickingand choosing Delete from the context menu.



Lesson Summary

You should now be able to:� Use macros within planning tables� List the various functions of macros� Use macros to generate alerts


� 729746 MacroBuilder: Creating macros for two planning tables� 674239 MacroBuilder: Automatic column adjustment� 674238 MacroBuilder: Start, final, level change and default macros� 640240 MacroBuilder: Writing and reading key figures in one step� 631499 Using the user function macro� 576015 Collective Consulting Note for Demand Planning� 539797: Collective consulting note on macros� 496003 Mass processing: Alert macros message /SAPAPO/TSM 122� 433166 MacroBuilder: Use of DRILL_DOWN, DRILL_UP functions� 418801 Creating a user exit macro� 412429 Definition of jobs with macros� 403072 Macrobuilder: Documentation/use of new macrofunctions� 400044 Macros: Default settings in the view are ignored� 390055: Mass processing: Alerts are not generated� 356407: 356407: Poor performance of alert macros in batch� 333243: Analysis of faulty defintion and execution of macros� 323341: Keep fixed values during macro calculation


Unit Summary SCM220

Unit SummaryYou should now be able to:� Use planning books for demand planning� Create your own planning books and data views� Use S&DP time bucket profiles for planning� Use macros within planning tables� List the various functions of macros� Use macros to generate alerts



Test Your Knowledge

1. You need at least one view for planning.Determine whether this statement is true or false.□ True□ False

2. A planning book has both user-specific views andviews.


3. The planning buckets profile defines theof the periods in the planning table.Fill in the blanks to complete the sentence.

4. What are advanced macros and what advantages do they offer as comparedto spreadsheet formulae?

5. List the various functions of advanced macro functions.

6. List the four levels at which macros are maintained and explain what eachlevel contains.



Answers

1. You need at least one view for planning.

Answer: True

You need at least one view for planning.

2. A planning book has both user-specific views and SAP-defined standardviews.

Answer: SAP-defined standard

3. The planning buckets profile defines the display sequence of the periodsin the planning table.

Answer: display sequence

4. What are advanced macros and what advantages do they offer as comparedto spreadsheet formulae?

Answer: Advanced macros are formulae that the user can define and executewithin the planning table of a planning book. They are similar to spreadsheetformulae, but provide more flexibility and function than typical formulaein spreadsheets.

5. List the various functions of advanced macro functions.

Answer: You can use the advanced macro functions to control how macrosteps are to be processed, build a macro that consists of one or more steps,control how macro results are to be calculated using control statements andconditions, select from a wide range of functions and operators, defineoffsets that enable the results of one period to be determined by a value fromthe previous period, restrict the horizon in which the macro is executed to aspecific period or periods, write macro results to either a row, a column, or acell, write the results of a macro step to a row, column, cell, or variable, andonly use the results in subsequent iterations, macro steps, or macros, makead hoc analyses of forecast or transaction data using specific icons, createcontext-specific and user-specific planning views, and trigger an alert in theAlert Monitor to inform the planner of specific company situations.



6. List the four levels at which macros are maintained and explain what eachlevel contains.

Answer: Macros are maintained on four levels. The first level contains thedifferent macros. In the second level, you can subdivide the calculationoperations within a macro into different steps. This corresponds tocompounding in mathematical formulae. The third level contains the interimand final results. In the fourth level, you define the operands and calculationoperations.




Unit 10Demand Planning Summary

Unit OverviewAt the end of this unit, you will have an overview of the configuration of DemandPlanning in SAP SCM. In the summary, you will once again see how planningbooks, macros, and demand plans using univariate forecasting, causal analysis, andcomposite forecasting are created. Marketing and sales tools, such as promotionplanning, lifecycle planning, and �like� modeling, are also summarized. Finally,demand plans to the SAP SCM liveCache for Supply Network Planning andProduction Planning/Detailed Scheduling will be released.


� Configure Demand Planning in SAP SCM� Create demand plans using univariate forecasting, causal analysis, and

composite forecasting

Unit ContentsLesson: Planning Summary ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .406

Exercise 26: Final Review Exercise ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .411


Unit 10: Demand Planning Summary SCM220

Lesson: Planning Summary

Lesson OverviewThis lesson will help you understand the SAP SCM application architecture. Youwill also learn about promotion planning and reporting in SAP SCM.


� Configure Demand Planning in SAP SCM� Create demand plans using univariate forecasting, causal analysis, and


Business ExampleThe Precision Pump company consists of a number of independent business unitslocated in different parts of the world. Each unit is headed by a business unit headand operates as an independent entity under the common parent company. As theplanning manager, you need to create a market demand plan for the company forthe finished products. You also need to compare the planning results at differentlocations for different product combinations.

SCM Application Architecture

Figure 127: SCM Application Architecture


SCM220 Lesson: Planning Summary

Aggregated actual data can be transferred to SAP SCM from OLTP, SAP BW,Excel, and Legacy systems, and stored in InfoCubes. This data is the basis forforecasting. The demand plan is created as a result of the forecast.

Planned independent requirements for Supply Network Planning and ProductionPlanning/Detailed Scheduling can be released. You can also transfer the demandplan to the operating system (OLTP) as planned independent requirements.

The seamless integration of Demand Planning with Supply Network Planning andProduction Planning/Detailed Scheduling supports efficient Sales and OperationsPlanning (SOP).

Figure 128: What is a planning area?

A planning area is the central data structure of Demand Planning and SupplyNetwork Planning. It groups the parameters that define the scope of the planningactivities. It also determines where and how the planning results are to be saved.

Key figures in the time series are saved in Demand Planning and Supply NetworkPlanning in the planning area version. As a result, the data that you save inplanning version, 1, planning area, 1 does not overwrite the data in planningversion, 1, planning area, 2.

The planning area contains characteristics and key figures for planning and mustbe initialized for every planning version.

A key figure is a numerical value that can either be a quantity or other value. Forexample, key figures may be projected sales value in dollars or projected salesquantity in pallets.

Characteristics are the objects by which you aggregate, disaggregate, and evaluatebusiness data.



Key figure data can be read from InfoCubes or time series objects.

Reporting Planning Data

Figure 129: Planning and Reporting

You can use Demand Planning to simulate multiple planning scenarios online.You can also plan consistently throughout your enterprise, such as top-down,middle-out, or bottom-up, drill-up and drill-down, aggregate and disaggregate. Italso supports the slice-and-dice method.

Consistent planning is used to keep planning data consistent at all planning levels.Data is aggregated and disaggregated automatically.

� Moving average� Constant models, trend models, seasonal models� Exponential smoothing� Seasonal linear regression� The Holt-Winter�s method� The Croston method (for sporadic demand)� Causal analysis - Multiple linear regression� Composite forecasting - Weighted average of multiple models

The product spectrum of a company includes a variety of products at differentstages of their lifecycle with different demand types.

SCM Demand Planning offers a toolbox of proven forecasting methods fromwhich you can choose the most suitable method for a specific demand type.



Composite forecasting goes beyond the idea of pick-the-best and combines twoor more methods.

The Croston method allows you to model sporadic demand.

The statistical forecasting toolbox provides all the features you require to createaccurate forecasts, including everything from data analysis using time seriesmodels through multiple linear regression.


Promotions can have a major impact on consumer behavior.

In SCM Demand Planning, you can plan promotions or other special eventsindependent of your actual forecast.

You can use promotion planning to model either one-time events, such asthe millennium, or repeated events, such as quarterly advertising campaigns.Additional examples of promotions include trade fairs, coupons, free-standinginserts, competitors� activities, and market intelligence. Events that impactconsumer behavior include upward or downward economic trends and acts ofnature.

Promotional uplifts can be defined in units or percentages by promotion patterns.A promotion pattern can be saved and used again in cases where a similarpromotion is to be repeated. You can also use Like Modeling of like productsand like regions. Several techniques are available to estimate the impact of apast promotion, such as multiple linear regression (MLR) with or without trendor seasonality.



Figure 131: Reporting in SCM

You can also use the BW front end to run reports for SCM data.

In addition to running reports for the aggregated actual data from InfoCubes,reports are run for all the order and time series objects from liveCache.

You need the following elements to be able to run live reports for orders and timeseries: A planning area in SCM, an extraction structure for the planning area, anInfoSource, and an SAP RemoteCube that reflects the liveCache data.



Exercise 26: Final Review Exercise

Exercise ObjectivesAfter completing this exercise, you will be able to:� Configure and execute all previous exercises in the course

Business ExampleAs the demand planner for Precision Pump Company, you have already createdyour planning object structure, planning area, planning books and data views, aswell as macros. Now you will need to create the needed forecast profiles to executethe forecast, introduce a NEW product to replace P-104, and plan a promotion forP-102. You will want to execute this all in the background while monitoring alerts.

Task:Create a master forecast profile with Univariate and Composite profiles. Be sureyour alert profile is assigned to enable the generation of alerts.



Planning area PLAN##Master prfl. MASTERDescription Profile for product P-102Forecast key figure FORECASTPeriod indicator MForecast horizon periods 12History horizon periods 24


Profile UNI##Description Statistical forecast for P-102Key figure INVQTYVersion 000




Forecast strategy 11Alpha, Beta, Gamma 0.3Sigma 1Seas. periods 12Forecast errors Select allPromotion key figure 9APROM1

4. Change your forecast alert profile to display alerts for your planning book,your planning version 000, and only for your selection ID PROD##.

5. Assign characteristic 9AMATNR to the basic life cycle for your planningarea PLAN##.

6. Define the product, whose historical data is to be read. Change your likeprofile called LIKE## and store 100% of the data from the product, P-104.


8. Update your master forecast profile called MASTER with the indicatorLifecycle Planning Active.

9. Update your PROD## selection ID to include the new product, NEW.


In this example, the last assignment for the planning area, PLAN##, and thekey figure, 9APROM1, should be made at the product level. Follow this path:

11. In Interactive Planning, create and save an percentage promotion with thefollowing parameters:

Short text Pump##Description Pump Promotion GR##Promotion Base <leave blank>Type %Cannibalization Group <leave blank>Number of periods 3Start of promotion The beginning of the next monthPlanning Version 000Promotion Key figure 9APROM1Planning Key figure FORECAST




12. Enter the changes: The promotion should increase sales by 10% in the firstmonth, 20% in the second month, and 10% in the third month. Assign theproduct P-102 to the promotion. Activate the promotion and save it.

13. Create a planning activity called FCS## for your SALES## planning bookand your DEMAND PLAN data view. Enter Master as the master forecastprofile and save.

14. Create a job called FCST## for mass processing using your SALES##planning book, your DEMAND PLAN data view, and planning version 000.Enter activity FCS## and selection PRODUCT##.

Set the aggregation level to product.

15. Schedule the job and review the results. Make sure that the forecast has beenmade for all four products, P-102, P-103, P-104, and NEW. Make sure thatthe promotion is calculated for P-102 and the phase in of NEW and the phaseout of P-104 is calculating properly beginning in month 6.



Solution 26: Final Review ExerciseTask:Create a master forecast profile with Univariate and Composite profiles. Be sureyour alert profile is assigned to enable the generation of alerts.


a) Follow this path: Demand Planning→ Environment→ Administrationof Demand Planning and Supply Network Planning.

b) Right-click on your planning area PLAN## and select Display.

c) Use the menu path: Extras→ Forecast Settings

d) Assign the key figures to the appropriate categories and click

Adopt.

e) Now to complete the assignment click the Adopt icon in the lowerleft of the dialog box.


Planning area PLAN##Master prfl. MASTERDescription Profile for product P-102Forecast key figure FORECASTPeriod indicator MForecast horizon periods 12History horizon periods 24


b) Create a master forecast profile by entering the above parameters.





Profile UNI##Description Statistical forecast for P-102Key figure INVQTYVersion 000Forecast strategy 11Alpha, Beta, Gamma 0.3Sigma 1Seas. periods 12Forecast errors Select allPromotion key figure 9APROM1

a) Click on the Univariate profile tab page and enter the above parametersname, description, key figure, and version.

b) Click the Show Proposal icon on the tool bar. Make surethe proposed entries match the parameters in the above table.

c) Be sure to assign your Diagnosis group DG## to your profile.

d) Copy the single profile to the master profile by selecting

Save single profile and Copy (F8).

e) Return to the Master profile tab page and save your master profile.

4. Change your forecast alert profile to display alerts for your planning book,your planning version 000, and only for your selection ID PROD##.

a) Use the menu path Advanced Planning and Optimization→ SupplyChain Monitoring→ Current Settings→ Set Alert Monitor.

b) Click on the Forecast tab and enter the name FCST## and hit enterto load.

c) Scroll down and change the planning book to SALES##, selection IDPROD##, and check the Cross-Aggregation-Level Selection Evaluationindicator.

d) Click the Save Forecast Alert Profile icon.

e) Save your master profile. When you exit with the green backarrow, answer yes to making it the default profile when you enter theAlert Monitor.




5. Assign characteristic 9AMATNR to the basic life cycle for your planningarea PLAN##.


b) Enter your planning area, POS##, select the Basic Settings radio button,

and click execute.

c) Enter the characteristic, 9AMATNR and click Adopt.

6. Define the product, whose historical data is to be read. Change your likeprofile called LIKE## and store 100% of the data from the product, P-104.


b) Enter your planning area, PLAN##.

c) Click the Like profiles button and use the characteristic, 9AMATNR.

d) Change ther Ref. value from P-102 to P-104

e) Select the Adopt values button.



b) Enter your planning area, PLAN##, select the Assignments radio

button, and click execute.

c) Enter the product NEW, Like profile LIKE## and Phase-in profilePHASEIN##.

d) On the next line enter product P-104 and Phase out profilePHASEOUT##.

e) This time change the dates to begin the phase in and phase out sixmonths from today.

f) Click Adopt and click the green back arrow to get back to themain menu.




8. Update your master forecast profile called MASTER with the indicatorLifecycle Planning Active.

a) Follow this path: Demand Planning→ Environment→ MaintainForecast Profiles.

b) Enter your planning area, PLAN## and your Master prfl. MASTER.

c) Click the Lifecycle Planning Active indicator.

d) Save and exit the forecast profile maintenance by clicking thegreen back arrow.

9. Update your PROD## selection ID to include the new product, NEW.

a) Follow the menu path Advanced Planning and Optimization→Demand Planning→ Planning→ Interactive Demand Planning.

b) In the Shuffler, click the triangle next to your SALES## planning bookto expand the views, then double click on the DEMAND PLAN view.

c) Double click on your selection ID PROD##.

d) Select the Selection Window icon.

e) Click the Multiple Selection icon and add NEW to the list of

products and click the Copy icon .

f) Click the Save selection icon. The option to update the PROD##

selection ID should default. Save and Adopt.


In this example, the last assignment for the planning area, PLAN##, and thekey figure, 9APROM1, should be made at the product level. Follow this path:

a) Follow the path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Promotion→ Maintain Promotion KeyFigures.

Make sure an entry exists for the PLAN## planning area, the key figure,9APROM1, and 9AMATNR as the characteristic for the promotionlevel.

11. In Interactive Planning, create and save an percentage promotion with thefollowing parameters:




Short text Pump##Description Pump Promotion GR##Promotion Base <leave blank>Type %Cannibalization Group <leave blank>Number of periods 3Start of promotion The beginning of the next monthPlanning Version 000Promotion Key figure 9APROM1Planning Key figure FORECAST


Click the Promotion planning cion .

Click the Create promotion icon.

Enter the parameters and save.




12. Enter the changes: The promotion should increase sales by 10% in the firstmonth, 20% in the second month, and 10% in the third month. Assign theproduct P-102 to the promotion. Activate the promotion and save it.

a) A table will appear in the upper portion of the screen where you canenter the promotion values in the row Perc. Increase(%).

10 20 10

b) Double click on your Selection ID to show the product P-102 in theshuffler.

c) To assign a product to the promotion, click on P-102 and click the

Assign objects icon.

d) Enter the promotion�s percentage values for P-102. When you hit enter,the system calculates the promotion�s values based on the forecastvalues. If you have not yet executed a forecast the values will be zero.

e) To make the promotion effective for future requirements, change thepromotion status to Planned. To do this, go to the promotion table on

the toolbar, click Change status and select YES inthe dialog box displayed.

f) Save the promotion.

13. Create a planning activity called FCS## for your SALES## planning bookand your DEMAND PLAN data view. Enter Master as the master forecastprofile and save.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Demand Planning in the background→Define Activities for Mass Processing.

b) Enter planning activity FCS## with the description Forecast and clickthe Create icon.

c) Select your SALES## planning book and your DEMAND PLANdata view.

d) Enter your MASTER master forecast profile, click the Univariate

radio button, and click the Copy action icon.

e) Save the activity.

14. Create a job called FCST## for mass processing using your SALES##planning book, your DEMAND PLAN data view, and planning version 000.Enter activity FCS## and selection PRODUCT##.




Set the aggregation level to product.

a) Follow this path: Advanced Planning and Optimization→ DemandPlanning→ Planning→ Demand Planning in the Background→Create Demand Planning in the Background.

b) Specify FCST## as the Job number and Forecast Group## as the job

name. Then select Execute.

c) Enter your SALES## planning book, your data view DEMAND PLAN,

and Version 000. Then select Execute.

d) Enter activity FCS##,. In the charact. section at the bottom selectyour selection ID PROD##.

e) Select the Aggregation Level button. In the aggregationlevel deselect all and only select Product.

f) Save your job.




15. Schedule the job and review the results. Make sure that the forecast has beenmade for all four products, P-102, P-103, P-104, and NEW. Make sure thatthe promotion is calculated for P-102 and the phase in of NEW and the phaseout of P-104 is calculating properly beginning in month 6.


b) Enter FCST## and Execute.

c) Select Immediate and then Save.

d) Use the following menu path to check if the job is finished: AdvancedPlanning and Optimization→ Demand Planning→ Planning→Demand Planning in the Background→ Job Overview of DemandPlanning in the Background.

e) Accept the defaults and click execute.

f) Check the status of your job. For further information select the joband click the spool icon.

g) Be sure to check the alert monitor for any forecast alerts that mayhave occurred.

h) To check the results in interactive planning use the following menupath:Advanced Planning and Optimization→ Demand Planning→Planning→ Interactive Demand Planning.

i) Double click on your selection ID PROD##.

j) Double-click the products in the Selection window in turn.

k) Planning data can now be seen in the forecast key figure.

l) If the promotion for P-102 is not being calculated correctly, youmay need to change the status of the promotion back to draft to let itrecalculate. The set it back to Planned. The other option is to execute abackground job as referenced in the Promotion Planning unit.



Lesson Summary

You should now be able to:� Configure Demand Planning in SAP SCM� Create demand plans using univariate forecasting, causal analysis, and



SCM220 Unit Summary

Unit SummaryYou should now be able to:� Configure Demand Planning in SAP SCM� Create demand plans using univariate forecasting, causal analysis, and



Unit Summary SCM220



Test Your Knowledge

1. What is a planning area?

2. What are the requirements for running live reports for orders and time series?



Answers

1. What is a planning area?

Answer: A planning area is the central data structure of Demand Planningand Supply Network Planning. It groups the parameters that define the scopeof the planning activities. It also determines where and how the planningresults are to be saved.

2. What are the requirements for running live reports for orders and time series?

Answer: You need the following to be able to run live reports for ordersand time series:A planning area in SCMAn extraction structure for the planning areaAn InfoSourceAn SAP RemoteCube that reflects the liveCache data


SCM220 Course Summary

Course SummaryYou should now be able to:

� Configure Demand Planning in SCM� Create planning books and macros� Create demand plans using univariate forecasting, causal analysis, and

composite forecasting� Use marketing and sales tools, such as promotion planning, lifecycle

planning, and "like" modeling� Release demand plans to Supply Network Planning and Production Planning

/ Fine Planning


Course Summary SCM220


AppendixIntegrated campaign/promotion planning

with SAP SCM & CRM

SAP delivers the following scenario with release 4.0 for integrated campaign orpromotion planning (with SAP CRM and SAP SCM). Campaigns are createdin the SAP CRM. The targeted sales are converted in quantities to the lowestaggregation level (product x location). The delivery capability of the supply chainis checked in SAP SCM. For this purpose, historic data and planning data fromSAP CRM are written to an InfoCube. Based on this data, the SAP SCM demandplanning (DP) creates a sales plan and transfers the results to SAP SCM SupplyNetwork Planning (SNP). Here the restrictions of the supply chain are taken intoaccount and a restricted plan is returned to the demand planning. The effects onthe original planning data are calculated and the resulting Supply Plan is extractedto an InfoCube. SAP CRM can then read the data from this InfoCube. The mainparts of the required planning environment are provided to create this scenario.However, this should usually be considered as an example that has to be adaptedto actual requirements.

Note: Three key figures are considered in each case: Basis (the normallevel), Promo (additional promotion effect), Total (Basis + Promo).Obviously, two of these three key figures already contain all of theinformation. However, in each case, all three key figures are delivered toensure that data structure is fully flexible. For reasons of performance, animplementation with as few key figures as possible is recommended.


Appendix 1: Integrated campaign/promotion planning with SAP SCM & CRM SCM220

The following planning environment is set for this scenario (for planning inSAP SCM):

� Planning object structure 9AAPOCRM� Planning area 9AAPOCRM� Planning folder 9AAPOCRM with the following macros (which should

be considered as examples):

� The ADJUSTMENT macro proposes corrections of the history (Base)and displays an enhanced outlier control. This is used to check thevalidity of historic promotion data and identify other irregularities.

� The HISTORY macro (ADJUST) determines the adjusted history usedas a basis for the forecast calculation.

� The CHECK FCST VS PLAN macro checks whether the generatedstatistical forecast deviates from the planning data by more than 20 %from the SAP CRM. An alert is generated in this case.

� The DEMAND PLAN macro calculates the entire sales plan (basis +promotion) that is transferred to SAP SCM SNP.

� Based on the receipt planned by SNP, the SUPPLY PLAN macrocalculates the effects on the original sales plan and generates alertsif shortages exist.

� APOCRM forecast profile� We recommend you use the 9ASNP94 planning folder with planning area

9ASNP02 and planning object structure 9ASNPBAS for the Supply NetworkPlanning.


SCM220 Appendix 1: Integrated campaign/promotion planning with SAP SCM & CRM

The following settings are still necessary in the SAP SCM or SAP BW forcompleting the scenarios

� Define an information area and an infocube for saving data (history andplan) from the SAP CRM.

Note: The data can be read from the demand planning eitherdirectly from the InfoCube (for this, a reference must be includedin the detailed information for the key figures in the planning areaof the InfoCube) or the data is first loaded using the transaction/SAPAPO/TSCUBE to the liveCache (recommended for reasonsof performance).

� Initialize the planning object structure and generate the characteristicscombinations for the planning object structure on the basis of the InfoCubeswith the data from the SAP CRM.

� Create the time series objects for the 9AAPOCRM planning area.� Create and assign the alert profiles.� Transfer the data to SAP SCM SNP.� Create the master data (possibly load from SAP ECC). Define the Supply

Chain Model in the Supply Chain Engineer.� Transfer the results to SAP SCM DP.

To extract the data from the SAP SCM DP into the InfoCube, you needthe following settings, which depend on the relevant system landscape andimplementation and therefore their delivery does not appear practical:

� Define an InfoCube for saving the results from the demand planning.� Create the export source data for the planning area.� Define the source system.� Define the InfoSource and also assign the source system and adapt the

transfer and communication structure.� Create the update rules for the InfoCube� Define the InfoPackage.

Guidelines about carrying out the above points are available in the documentationfor SAP BW or SAP SCM. A corresponding planning environment or function hasbeen made available through SAP CRM to load the data from SAP CRM into theInfoCube, as well as transfer the data extracted from SAP SCM DP to SAP CRM.


Appendix 1: Integrated campaign/promotion planning with SAP SCM & CRM SCM220


IndexAAggregation, 48Aggregation with CalculationType D, 52

Alerts, 4Average of average of keyfigures figures, 52

BBased on another key figure,51

CCollaborative Planning, 7Composite Forecasting, 102DDatabase Alerts, 392Demand Planning, 3Disaggregation, 48Dynamic Alerts, 391FForecast Alerts, 150Forecast horizon, 101Forecasting, 99HHistory horizon, 101MMacro-Dependent Alerts, 151Macros, 17

master profiles, 101Material RequirementsPlanning, 3

Pperiod indicator, 101Planned independentrequirements, 3

Planning Area, 311Planning Book, 359Planning book/data view, 29Pro rata, 51Production Planning/DetailedScheduling, 4

SSCM Core Interface (CIF), 3Selection Window, 30Supply Chain Planning, 3Supply Network Planning, 3TTime Series Models, 103time-based disaggregationtype, 53

UUnivariate Forecasting, 102WWork Area, 31


Index SCM220


FeedbackSAP AG has made every effort in the preparation of this course to ensure theaccuracy and completeness of the materials. If you have any corrections orsuggestions for improvement, please record them in the appropriate place in thecourse evaluation.
