Skip to Content
author's profile photo Former Member
Former Member

IS RETAIL

HI IS-RETAIL GURU'S

Any one please help me with IS-Retail for Sales & Distribution configuration document and Defining and Assigning Enterprise structure document

Thanks & Regards,

sreedhar.

Edited by: sreedhar kodali on Feb 18, 2008 10:20 AM

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

5 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Feb 26, 2008 at 11:49 AM

    hi

    you will get configuration related info o following link.

    http://help.sap.com/bp_bblibrary/500/BBlibrary_start.htm

    Sandip

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Feb 28, 2008 at 11:28 AM

    Hi Sreedhar

    You can go to following link there select type - Industry, Industry- Retail, country-India. There you see all org structure assignment and retail sales pricing.

    http://help.sap.com/bp_bblibrary/500/BBlibrary_start.htm

    Best Regards

    Swami

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Mar 07, 2008 at 11:23 AM

    Hi sreedhar kodali

    send your mail ID

    Thanks

    Amit Shivhare

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Mar 07, 2008 at 01:03 PM

    Hi shreedhar

    please see blue print

    Expectation

    The expectations are that the Organization Structure for Sales and Distribution module ensures that the system is easy to use and operate, is scalable to future changes in the Organization, and can timely and accurately generate relevant reports.

    Description

    Barista Coffee Company Ltd (BCCL) is in the business of Retailing. It has 102 outlets across the country.

    Some of the additional business scenarios are as follows:

    • Kitchen operations of Barista would be comparable to a factory producing food and beverage items.

    • Raw materials will form the basic ingredients to the finished food material. During processing (production) they will be considered as Work in Progress (WIP). Finally, a finished product would be produced.

    Typical articles which are being considered at present for sale through this kitchen operation would be:

    • Sandwiches

    • Bakery products

    • Desserts

    • Breads

    Stores are of three types:

    • Dry Store – Contains food stuff and consumables (non-food)

    • Walk-in – Contains food items that require light refrigeration

    • Deep Freezer – Contains food items that require deep freezing

    Kitchen consists of five areas:

    • Hot Kitchen - Cooking activities take place here. It required mostly for preparing filling items

    • Veg prep – Mostly used for chopping vegetables etc. No heating etc is done here

    • Bakery – Used for activities related to baking of dough etc

    • Confectionary – Used for finishing of food products (mostly for dessert items)

    • Assembly – Final assembly of finished products including packing

    The assembled products are then put into a holding area from there they would be sent to the dispatch section for distribution to retail stores.

    Special Considerations

    We will be creating a dummy company code assigned to a dummy sales organization to capture information relating to sales at franchisees.

    Changes to Existing Processes

    None

    Solution in SAP

    In the Sales and Distribution module of SAP, there are three different perspectives for an enterprise structure. These are:

    • Market Oriented Organization structure

    • Internal Organization Structure

    • Shipping Related Organization Structure

    Market Oriented Organization Structure

    Market oriented Organization structure in the Sales and Distribution module consists of sales organizations, distribution Channels and a reference division. A combination of sales organization and distribution channel forms a Distribution Chain.

    1.1.1 Sales Organization

    Sales Organization – as defined in SAP - is an Organizational unit in a company, which is responsible for the sale and distribution of goods and services. It represents the selling unit as a legal entity. Each sales transaction is assigned to exactly one Sales Organization.

    Sales Organization is assigned to exactly one company code for which all accounting details of the Sales Organization (SD-FI integration) are entered.

    1.1.1.1 Sales Organizations for BCCL

    Given the business requirements at BCCL, it is recommended to have one Sales Organizations for domestic customers.

    Table 1. Sales Organizations of BCCL

    Code Description

    BCSO Barista Sales Organization

    This Sales Organizations shall be assigned to the company code BCCL configured in the FI module.

    1.1.1.2 Distribution Channel

    “Distribution Channel” represents a channel through which the saleable materials or services reach customers. A distribution channel can be assigned to one or more sales organizations.

    1.1.1.2.1 Distribution Channels for BCCL

    BCCL sells beverages, food and merchandise items to the end consumers through six distribution channels. The current business requirement is for five distribution channels and the one for miscellaneous sales in the near future.

    Table 2. Distribution Channels for BCCL

    Code Description

    D1 Institutional sales

    D2 Mobile/Kiosk sales

    D3 Class A cities Stores

    D4 Class B cities Stores

    D5 Class C cities Stores

    D6 Franchisee sales/space selling sales

    1.1.1.3 Division

    ”Division” in IS retail would be taken as Reference division (R1).

    1.1.1.4 Sales Area

    A combination of “Sales Organization”, “Distribution Channel” and “Division” forms a sales area. A sales area determines which distribution channel can be used to sell the products from one division in a sales Organization. By creating a sales area, you can exclude certain combinations of the different Organizational areas.

    Distribution Chain

    This is a combination of sales organization and distribution channel.

    1.1.1.4.1 Sales Areas in BCSO

    Market oriented Organization structure of BCCL is described below in the table.

    Table 4. Valid Sales Areas for BCSO

    Sales Org Distribution channel Division

    BCSO D1 R1

    BCSO D2 R1

    BCSO D3 R1

    BCSO D4 R1

    BCSO D5 R1

    BCSO D6 R1

    1.1.1.5 Internal Organisation Structure

    Sales Office and Sales Group represent the internal Organization in SAP. The internal Organization structure is used for performance management of sales personnel. However, in BCCL, this is not applicable.

    Sales office

    A physical location (for example, a branch office) has the responsibility for the sale of specific products or services within a given geographical area. In case of BCCL, there are five sales offices for information purposes.

    Table 5. Valid Sales Offices for BCSO

    Code Description

    SORN Sales Office Region North

    SORE Sales Office Region East

    SORW Sales Office Region West

    SORS Sales Office Region South

    SOHN Sales Head office North

    Sales group

    A group of sales people who are responsible for processing sales of specific products or services.

    Table 6. Valid Sales Offices for BCSO

    Sales Group Description

    001 Sales Group North

    002 Sales Group East

    003 Sales Group West

    004 Sales Group South

    1.1.1.6 Shipping Related Structure (*For Stock Transport Orders)

    Independent Organizational entities, such as shipping points, are responsible for scheduling and processing deliveries to Stores from the Distribution Centre. A delivery is always carried out by one shipping point only. The shipping point depends on the following criteria:

    • Plant/Site (Distribution Centre)

    • Shipping Condition

    • Loading Group

    1.1.1.7 Distribution Centre

    “Distribution Centre” refers to the area from where the articles are procured, stored and distributed to all the stores within a specific “Sales Organization” and “Distribution Channel”.

    Four Distribution centre will be configured to carry out the sales activities.

    Table 5. Delivery Plants for BCCL

    Plant Code Description

    D001 Distribution Centre North

    D002 Distribution Centre East

    D003 Distribution Centre West

    D004 Distribution Centre South

    1.1.1.8 Shipping Condition

    Shipping Condition is a parameter, which defines priority of a specific delivery. For example, Immediate or As soon as possible.

    1.1.1.8.1 Shipping Condition for BCCL

    In BCCL, the supply of articles is continuous. Therefore, the standard shipping condition will be used for the merchandise items. However, for the rest of the sales, provisions for delivery priority can be given.

    1.1.1.9 Loading Group

    It defines how goods are loaded for delivery, such as through truck, crane or forklift.

    1.1.1.9.1 Loading Group in BCCL

    BCCL shall have one loading group, which will be responsible for movement of all merchandise items, and the standard loading group, which will be responsible for the rest of the sales.

    1.1.1.10 Shipping Point

    “Shipping Point”—as defined in SAP-- is a fixed location responsible for scheduling and transporting deliveries to the customers.

    1.1.1.10.1 Shipping Points for BCCL

    For BCCL, one shipping points will be configured.

    Table 6. Shipping Points for BCCL

    Code Description

    BH0N Shipping point for outbound delivery from warehouse to stores

    Gaps

    None

    Workaround Solutions

    None

    Integration Requirements

    Integration with MM and Financial (FI) is done as follows:

    1.1.1.11 SD-MM Integration (Site)

    The warehouse or the distribution centre, defined in the MM module, allowed for sales are determined for combinations of Sales Organizations and Distribution Channels.

    1.1.1.12 SD-FI Integration

    There are two points of integration between the Sales and Distribution (SD) and FI modules of SAP. These are:

    • Sales Organization is assigned to one company code

    • The site, which is the distribution centre through which the outward movement of stocks to their stores is also assigned to a company code.

    Reporting Requirements

    None

    Authorisation Requirements

    Additions / modifications to the SD Organization structure shall be done by Head – Commercial.

    Migration Requirements

    None

    Expectation

    All master data related to articles, conditions and promotions has to be initiated, captured and transported to POS through intermediate files and documents.

    Description

    BCCL is has 102 stores spread across India. These stores are being catered from Regional Distribution centers (Warehouse) and the pool of vendors, which are spread across the geographies.

    Barista is operating from Delhi as a Corporate Office and sells beverages, food items and merchandise items.

    They are selling through their own retail stores, institutional premises, franchisees and mobile sales or kiosks.

    BCCL Delhi as an HO would be responsible for selling their articles and would be a legal entity where all the final reconciliation of accounts is done.

    Special Considerations

    Though there are currently no customers but they have a point of sales at all their outlets where daily sales is happening and recorded at POS, synchronization to SAP IS retail will be done by day end.

    Solution in SAP

    • In Sales and Distribution, articles are sold at the POS level, where each & every stores will be maintained as customers.

    • The relevant Partner Profiles (Store-wise) & the respective Port settings will be configured so as to ensure that the Master data about the articles, conditions –i.e. prices, taxes, surchages,discounts, promotions, bonus buys free goods, merchandise category, Inventory data gets communicated to POS system through POS interface .

    • Subsequently, at the Day end when synchronization happens, POS (Store-wise) will be generating aggregated sales data, payment data & inventory data which in turn needs to be processed & posted back into SAP IS Retail.

    • In addition to Sales and Distribution, other departments of the company such as Accounting or Materials Management access the master data.

    Gaps

    None

    Workaround Solutions

    Provision for default volume share will be provided by customizing SAP.

    Integration Requirements

    The SD and FI modules are strongly integrated during pricing and also in account determination procedure which is being assigned to a invoice.

    Reporting Requirements

    • Total Aggregated sales per store on the basis of SKU.

    • Site wise promotion analysis.

    • Reporting on Merchandise category basis.

    Authorisation Requirements

    Authorization for promotions and assortments would be given at the HO level to the marketing head.

    Migration Requirements

    None

    2. Prices and Taxes

    Expectation

    To have suitable provisions for determining accurate prices and taxes during the complete synchronization happens at the day end.

    • This refers to the aggregated sales data that has been uploaded to POS system during the day end.

    Description

    Sales price calculation schemas

     The starting point is the purchase price (net/net) that was determined with the purchase price determination function and that has now been transported to the schema using condition type EKNN

     The actual markup in the pricing table is linked to condition types AUFS and AUFX. These markups relate to the purchase price in the calculation schema.

     The sales price (net) and the sales price (gross). The gross price is calculated by adding taxes (condition type MWST) to the net price.

     With settings for rounding to price points, the sales price from the specified schema is rounded and the price calculation is adjusted in line with the rounded final price.

    Calculation schemas for price determination:

     Many applications in the Retail area use a calculation schema for price determination to read saved sales prices or further sales conditions from the database. The calculation schema for price determination is defined using the sales area, the document schema and the customer schema.

     In the calculation schema for price determination, the sales price (or promotion price) must have the same condition type (or promotion condition type) as the sales prices calculated using sales price calculations (or the promotion prices activated in promotion processing).

     Following components will be defined in the calculation schema for price determination:

    • Sales Price

    • Promo Sales Price

    • Discount

    • Promo Discount (Value)

    • Promo Discount (Percentage)

    • Tax

    The above mentioned condition types will flow from SAP to POS. Sales Price would be picked from the database and will flow to POS.

    2.1.1 POS Inbound Sales Schema

    POS inbound Sales Schema will be assigned to the Aggregated Sales Control. POS inbound Sales schema passed onto SD Billing. The aggregated sales data is used in the Inventory Management, Billing, and Replenishment functions. In this step we define how the aggregated sales data is passed onto the various functions.

    In the Aggregated Sales Control we have the following Standard Settings for POS inbound Sales Schema:

    • The calculation schema which is to be used in Billing. In the calculation schema, we determine how values are to be calculated for Inventory Management, Billing, and Accounting. Transfer to subsequent functions is usually via condition values and in some cases via the subtotals in the calculation schema.

    The following components will be there in the POS Inbound Sales Schema:

     PN10: The condition type which represents the sales price in the calculation schema.

     PBEW: The condition type which is used in the calculation schema to pass on the value for sales price valuation of the goods movements to Billing.

     PBFI: The condition type which is used in the calculation schema to pass on the value for valuation of the goods movements in FI to Billing.

    2.1.2 POS Inbound Payment List

    • The payment list is used by the POS systems to send information about the means of payment used by the customers.

    • The payment list is only useful if the POS system sends aggregated sales information, since this usually does not contain any information on the means of payment.

    • The payment list also creates billing documents to pass on amounts to Accounting.

    • In this step you define how data is to be processed by Billing.

    The following components will be there in the POS inbound payment list:

    • PTCS: (Condition type)Payment type - Cash

    • PTCN (Condition type): Payment type – Check

    • PTVO (Condition type): Payment type-Gift Voucher

    • Customized components for ICICI, HSBC, Citibank Credit / Debit Cards etc.

    • Credit memo

    Special Considerations

    None

    Changes in Existing Processes

    BCCL will be having pricing information that has to be downloaded and uploaded from SAP to POS and vice versa.

    Solution in SAP

    Pricing for Barista will be maintained at the following 3 levels:

    • Sales Organization/Distribution Channel Level – This will be common across the Organization ( for all the Stores). Pricing Updates & Maintenance will be easier at this level.

    • Store Group Level – The Stores will be grouped based on Region/City and pricing will be done accordingly.

    • Site Level pricing – This will be applicable during Promotion if there is a need to run a specific promotion on a store to store basis.

    Pricing in SAP is handled through a Pricing Procedure which is a combination of

    • Sales Area (Sales Org., Distribution Channel, and Division)

    • Customer pricing procedure (From Customer master, i.e the Store )

    • Document pricing procedure (From Sales Document type)

    In case of Barista, the Following Pricing Procedures will be used :

    • Barista Sales Pricing Schema – ZBS001

    • Barista Sales Download Schema – ZOTBND

    • POS Inbound Schema – ZPTR01

    • POS Inbound Payment List – ZPLIST

    • Free Goods Schema – NA0001

    • Bonus Buy Schema – BB0001

    Condition Type Description Access Sequence

    Pricing procedure – Barista Sales Pricing Schema (ZBS001) Barista Sales Pricing Schema

    EKNN Net/Net PP IS-R (SAP Standard Condition)

    AUFS VKP Calculate Surcharge (SAP Standard Condition) VKWG

    AUFX VKP Calculate Surcharge (Standard SAP condition)

    ZIN1 IN A/R CST VAT Copy (Configured condition)

    ZIN2 IN A/R LST VAT Copy (Configured condition)

    ZIN5 IN AR SCLST VAT Copy (Configured condition)

    ZIN6 IN A/R T/O Tax (Configured condition)

    Pricing Procedure - Barista Sales Download Schema (ZOTBND) Barista Sales Download Schema

    VKA0 Promo SP IS-R (SAP Standard Condition) VKP1

    VKP0 Sales Price (SAP Standard Condition) VKP1

    DISC Role Based Discount (Configured condition) DISC

    KA03 Promo Discount % 2 (SAP Standard Condition) A001

    KA05 Promo Discount MD 2 (SAP Standard Condition) A001

    Pricing Procedure – POS Inbound Schema (ZPTR01) POS Inbound Schema

    PN10 Sales Price (SAP Standard Condition)

    VPRS Cost (SAP Standard Condition)

    PTBL Invoice amount (SAP Standard Condition)

    MWSI Output Tax (SAP Standard Condition) MWST

    PNET Net value (SAP Standard Condition)

    ZVEN Rackjobbing-Picking (Configured condition) ZVEN

    ZRVN Reverse of ZVEN (Configured condition) ZVEN

    Pricing procedure – POS Inbound Payment List (ZPLIST) POS Inbound Payment List

    PTCS Payment Type – Cash (SAP Standard Condition)

    PTCH Payment Type – Check (SAP Standard Condition)

    PTVO Gift Voucher (SAP Standard Condition)

    CBMV Citibank Visa/Master (Configured condition)

    HBMV HSBC Visa/Master (Configured condition)

    ICMV ICICI Visa/Master (Configured condition)

    PTDI Diners Card (Configured condition)

    PTAM American Express (Configured condition)

    ZDIN Diners Vouchers (Configured condition)

    ZSOD Sodexho Coupons (Configured condition)

    ZAMX Amex Vouchers (Configured condition)

    ZNWS Newspaper Vouchers (Configured condition)

    ZCRM Credit Memo (Configured condition)

    Pricing procedure – Free Goods Schema ( NA0001) Free Goods Schema

    NA00 Free Good Condition type NA00

    Pricing procedure – Bonus Buys Schema ( BB00001) Bonus Buys Schema

    BB01 Bonus Buy : Price BB00

    BB02 Bonus Buy : Abs. Discount BB00

    BB03 Bonus Buy : % Discount BB00

    BB04 Bonus Buy : Free Goods BB00

    2.1.3 Pricing and Taxation for Sale through Mobile Vans / Kiosks

    For each of the condition types (price elements), the value will be maintained in the condition records which can be updated as and when required. During the billing, the value fed in the condition records of each condition type will be picked up and downloaded to POS system.

    The price components – purchase price, discount, and markup will be maintained in INR currency.

    2.1.4 Pricing and taxation for Institutional Stores

    For determining the pricing of Institutional stores, we will use the standard Sales Calculation Schema. The condition records will be maintained separately while creating an article master data vis a vis Distribution Chain.

    2.1.5 Pricing and taxation for class A, B & C stores

    For determining the pricing of Class A, B and C, we will use the standard Sales Calculation Schema. The condition records will be maintained separately for Class A , B and C. while creating an article master data vis a vis Distribution Chain.

    2.1.6 Tax Components in case of BCCL:

    2.1.6.1 Sales Tax Classification:

    Currently Barista is doing the business in 13 states in India.

    States are classified into two types one is VAT (Value Added Tax) and another one is Non VAT. Out of 13, 7 states are charging VAT and rest of the 6 States are charging Sales Tax.

    2.1.6.2 Value Added Tax - Sales / Output related transactions

    Following are the type of classification in the TAX structure

    • 0 % Exempted Goods like Milk, vegetables (not related to Barista)

    • 1 % Gold and Silver (not related to Barista)

    • 4 % Industrial Inputs(not related to Barista)

    • 12.5% Product for consumption like Food, cloth etc (Related to Barista)

    • (Currently in Haryana the Rate is 10%)

    • 20% Petroleum Products(not related to Barista)

    Invoice is compulsory the details of Product Code, Product Name, Qty, Value,% Tax and value of Tax and the total amount of bill are part of the billing details.

    Separate Sales Register is to be maintained for the Sales of that Month.

    Example of the Tax Calculation:

    Product code Product Name Qty Rate Value

    0101 Hot Coffee 3 40 120

    0201 Hot Tea 4 20 80

    200

    VAT 12.5% 25

    Total Bill Amount 225

    Sales Tax (Non VAT) - Sales / Output related transactions

    Following are the type of classification in the TAX structure

    Second Sales are not taxable (like the goods tradable as it is)

    Criteria

    Non VAT State

     Vendor and Seller should be in the same State

     The Tax Should be paid at the time of Purchase

     No Value addition is done ie. substance remains the Same

    First Sales are taxable

    The Tax Rate is different based on the Product and the same product tax rate may vary between the states.

    Example of the Tax Calculation:

    Product code Product Name Qty Rate Value

    Tax * % Tax Value Total Value

    0101 Hot Coffee 3 40 120 10 12 132

    0201 Hot Tea 5 20 100 5 5 105

    0301 Cap 4 25 100 - - 100

    Total 320 17 337

    • Tax % is just for understanding not the correct % .

    2.1.6.3 Compounding Tax

    In few states the options are with the company either to apply the Usual Tax % (different tax rate for the different product) or to apply the Compounded Tax Rate which is common for the total value of the bill. ie. Certain x% will be calculated on the total sales value. Important point here is this tax will not be chargeable to the customer.

    To choose the compounded Tax option the Total Turnover of the year should be below Rupees One Crore. This is applicable in Tamil Nadu currently.

    Example of the Tax Calculation:

    For Bill 1

    Product code Product Name Qty Rate Value

    0101 Hot Coffee 3 40 120

    0201 Hot Tea 4 20 80

    0301 Cap 4 25 100

    Total 300

    For Bill 2

    Product code Product Name Qty Rate Value

    0101 Hot Coffee 6 40 240

    0201 Hot Tea 10 20 200

    0301 Cap 8 25 200

    Total 640

    • Tax % is just for understanding not the correct % .

    The Company Liability is Total Sale value 940(300+640) * 1% =94

    NOIDA

    Sales Tax Rates as per Statute (Provided by Regional Finance):-

    Hot Beverage - 5%

    Cold Beverage - 8%

    Food - 0%, If purchased within U.P

    8% if purchased from ourtside U.P

    Merchandise- : 8%

    U.P

    Sales Tax Rates as per Statute (Provided by Regional Finance):-

    Hot Beverage - 5%

    Cold Beverage - 8%

    Food - 0%, If purchased within U.P

    8% if purchased from outside U.P

    Merchandise-: 8%

    DEHRADUN

    Sales Tax Rates as per Statute (Provided by Regional Finance):-

    Hot Beverage - 5%

    Cold Beverage - 15%

    Food - 0%, if purchased within Utranchal

    Merchandise-: 15%

    JAIPUR

    Sales Tax Rates as per Statute (Provided by Regional Finance):-

    Coffee Beverage - 14%

    Other Beverage - 12%

    Food - 9%

    Merchandise-: 14%

    GUJRAT

    Sales Tax Rates as per Statute (Provided by Regional Finance):-

    Food & Beverage - 4%

    Merchandise-: 4%

    (We are in composite scheme of Sales Tax)

    CHENNAI

    Sales Tax Rates as per Statute (Provided by Regional Finance):-

    Beverage - 2.1%

    Food - 1%

    Merchandise: We do not have permission to sell merchandise in Chennai as of now)

    CHANDIGARH

    Sales Tax Rates as per Statute (Provided by Regional Finance):-

    Hot Beverage - 8.8%

    Cold Beverage - 8.8%

    Food - 0%, If purchased within Chandigarh

    - 8.8% if purchased outside Chandigarh

    Merchandise-: 8.8%

    VAT PARTICIPATING STATES

    States Our outlets VAT Rate

    Delhi Delhi 12.50%

    Haryana Gurgaon as confirmed

    10% on Merchandise

    12% on Food & Beverage

    Maharashtra Mumbai, Pune 12.50%

    Punjab - 12.50%

    Himachal Pradesh Shimla 4.00%

    Karnataka Bangalore 12.50%

    Andhra Pradesh Hyderabad 7.50%

    West Bengal Kolkatta 12.50%

    Gaps

    Handling of different sales tax rates

    Workaround Solutions

    None

    Integration Requirements

    • With MM module – Integration with MM is defined during sales calculation pricing when , we are considering purchase calculation schema.

    • With FI Module – For getting data for exchange rate determination, other price components and for proper postings of invoice subheads in G/L accounts

    Reporting Requirements

    • Display Conditions using index

    • Net price list

    • Pricing reports

    Authorisation Requirements

    Authorizations requirements are explained in the table below:

    Table 8: Authorisation for Prices and Taxes

    Activity Authorized Persons

    Display of Pricing Condition Records Assistant and all above in Finance and Commercial department

    Creation and maintenance of Pricing Condition records Accounts Officer and above in Finance and Commercial department

    Release of Pricing Condition Records Manager and above in Finance and Commercial department

    Migration Requirements

    Condition records to be entered in the system as per prevailing values.

    3. Assortment Management

    Expectation

    BCCL would be having one core national assortment that would ensure that all articles would be available at all stores across the country.

    Description

    BCCL assortment allows you to determine for every site and for every article which site will be able to procure which articles during which periods. This is referred to as the listing process.

    The assortment list contains all the articles that can be procured for a site and the most important data pertaining to them. Assortment lists allow sites to be kept up to date about new purchasing master data and about changes to existing data.

    Types of assortments

    Local Assortment:

     A local assortment is only valid for one retail plant. Every customer can be assigned one or more assortments per distribution chain. Each of these assignments can be flagged with a particular priority, which can be used as additional information for analyses in order processing or assortment list generation.

     There can only be one main/default assortment, however; this is used to determine a price list if price lists are required and there is no price list defined at customer level yet.

    General Assortment

     An assortment can be assigned assortment users (retail plants or customers). All the materials that are assigned to an assortment are therefore automatically listed in the assortment users assigned to that assortment

     Every retail plant is assigned one assortment.

    Special Considerations

    BCCL would be having one core national assortment across all country.

    For consignment articles special Rack-Jobber assortment modules will be maintained & assigned to the sites

    Changes to Existing Processes

    Yes, we would be defining the assortment strategy country wise for all the articles and merchandise category assigned to the assortment.

    Solution in SAP

    • Assortment strategy allows you to determine for every site and for every article which site will be able to procure which articles during which periods. This is referred to as the listing process.

     This would be a control to check which articles need to be listed and not listed for a particular site.

     Role authorization for determining the articles to be listed and not listed will be given to the category and marketing heads.

    Gaps

    None

    Workaround Solutions

    None

    Integration Requirements

    Integration is required with MM module for reorder and replenishment planning .There would be an availability check at warehouse and the stores before it is being issued finally to respective stores.

    Reporting Requirement

    The assortment level for articles and merchandise category will also be interfaced with SAP BW to get requisite reports at article level and merchandise category level.

    Migration Requirements

    None

    4. Merchandise Category

    Expectation

    In this we group together Articles with the same attributes or purpose.

    BCCL would be having five levels of merchandise hierarchy levels down to the level of articles.

    We can use Merchandise Category to limit the scope of analyses

    Description

    You may want to define a hierarchy article in, for example, the following instances:

    If you want to manage an article, say Apple, by value, but at a merchandise category level higher than fruit, say at the level fruit and vegetables

    BCCL Merchandise Category are mentioned below

    Special Considerations

    None

    Changes to Existing Processes

    None

    Solution in SAP

    • Articles in a merchandise category can be listed automatically in stores to which it is assigned, taking the chosen listing procedure into account.

    • Sales at the POS need not be on an article basis: they can be processed via the merchandise category (using a merchandise category article).

    • Articles belonging to different merchandise categories can be sold under the umbrella of a common value-only article (the "hierarchy article"). This can be useful if, for example, a store has cash registers with fewer merchandise category keys than there are merchandise categories.

    • Depending on the merchandise category, you can define specific characteristics which have a classifying function and/or which influence the creation of variants; these characteristics can be useful when you are creating articles and especially useful for defining variants of generic articles.

    • Below the merchandise category level, structures (characteristics profiles) are provided which allow a "technical" segmentation of merchandise categories to aid new article listings or help in creating generic articles and variants.

    Gaps

    None

    Workaround Solutions

    None

    Integration Requirements

    None

    Reporting Requirements

    BCCL will be having a consolidated report on the basis of merchandise category levels. This would enable them to have an objective analysis on the movement of articles at the store level .This data will be exchanged with SAP BW as well to get the final view on the reports.

    Promotion

    Expectation

    The key information relating to promotion should be exchanged and downloaded to POS with a shorter turnover time .This will not delay the promotion announcement and its data to reach at store level.

    Description

    • Promotion in SAP Retail is divided into header data and item data. It contains information about promotion merchandise and how it is replenished, the participating stores, the themes involved, and the advertising media used.

    • Articles of merchandise involved in a promotion are entered at item level. Promotion theme(s) are assigned at header level. Some examples of themes are January white sale, Italian foods, year-end clearance. Individual articles are assigned to the themes, allowing the merchandise to be structured as it appears in the advertising media.

    • Advertising material (such as newspaper ads, store flyers, TV commercials, and outdoor media) are also assigned to a promotion, enabling the success of a particular advertising medium to be analyzed for a particular promotion.

    • Promotional merchandise can be allocated to participating stores in different ways, depending on the type of announcement used.

    Types of Promotion in BCCL

    • Buy A get A free.

    • Buy A get 20% free.

    • Buy A get X% on B.

    • Buy A get B free and get X% on the bill value.

    • X% discount on bill value (straight)

    • Flat discounts on festive seasons.

    • Buy up to X value and get a free article (for e.g. CD)

    • Buy A square and get A free

    Special Considerations

    The types of promotion like coupons, bonus buys and free goods will be taken in consideration at BCCL.

    • Coupons have to be created with article type coupon for use in promotions

    • Promotion Notification will be generated as a print output from SAP

    • Authorization for creating & maintaining promotions will be at Marketing executive but promotion details will be provided by product manager .

    • Exchange pricing will be accomplished using Coupons.

    • One article cannot act as a pre requisite in more than one bonus buy.

    • Consumer/Customer free goods offered by the vendor but which are not traded by Barista will be created & maintained locally in POS

    • Promotional purchase orders will be raised using promotional allocation tables

    • If a single article has multiple promotional discounts or appears in multiple promotions during the same period then article promotional analysis is not possible – An Article cannot be under 2 Promotions during the same period

    • Any time based promotional discounts given by vendor will be settled using purchasing rebate arrangements

    • Free goods will be maintained as proper articles in the system unless they are Consumer/Customer free goods offered by the vendor but not traded by Barista.

    IN House Promotion

    Changes to Existing Processes

    The promotional data in BCCL will be maintained at the HO level in SAP IS retail .This information will be exchanged at POS level, when the promotions are to be announced at the site group level.

    Solution in SAP

    Promotional data and the conditions are defined at SAP IS Retail level. This data has to be updated and downloaded to POS to ensure that promotions are announced at the right time.

    Gaps

    None

    Workaround Solutions

    None

    Integration Requirements

    Promotional data in BCCL requires POS integration.

    Reporting Requirements

    Promotion evaluation report will be generated at the end of the promotion to ascertain the successful execution of the promotion.

    Promotion analyses can be done on the basis of articles and merchandise category levels.

    5. Rack Jobber Module

    Expectation

    Rack Jobber module will facilitate the consignment sales in BCCL. The goods are the property of the rack jobber, but they are sold via the retail site’s POS system.

    Description

    • Rack jobbers are treated as vendors in the R/3 System. The R/3 System supports the management of rack jobber goods in your stores by separating the stocks and sales revenue of these external goods from the goods that are your property.

    • Your retail sites replenish the merchandise

    • The rack jobber replenishes the merchandise.

    • Inventory Management is activated in Barista for rack jobber module You can display sales revenue for rack jobber merchandise separately.

    Special Considerations

    BCCL will be using rack jobber model for consignment sales that are done at retail sites.

    Changes to Existing Processes

    Rack jobber would let BCCL to track down the inventory for all the consignment articles at the store level now.

    Solution in SAP

    Rack jobber module as a functionality will be used to track down the inventory of all consignment items.

    Gaps

    None

    Workaround Solutions

    None

    Integration Requirements

    • This will have integration with MM, when vendors are supplying articles either directly at the store and the warehouse.

    • Integration with FI for final invoice settlement in terms of sales and the return.

    Reporting Requirements

    Reporting requirement for inventory tracking at store level.

    6. POS Interface

    Expectation

    SAP IS Retail has an open interface for connecting POS systems. Since a POS system interface may not be defined in the same way as the SAP IS Retail interface, SAP IS Retail communicates with the POS systems in the stores using one or more converters. There would be a constant flow of information from SAP to POS and vice versa to ensure that data is synchronized.

    Description

    The POS interface in the SAP system consists of the following areas:

    General Information: POS Interface.

    This contains basic information that is relevant to all areas of POS. Information about linking POS systems using POS converters and archiving transferred IDocs is included.

    POS Interface - Outbound

    Complex data (for example, price determination information) is formatted in the POS interface - outbound and then transferred from the central SAP system to the store systems.

    POS Interface - Inbound

    In the POS interface - inbound, master data and organizational data is added to the data collected at the store POS. The data is then transferred to the central SAP system where it is processed.

    POS Interface Monitor

    The POS interface monitor provides functions for monitoring POS interface - outbound and POS interface - inbound processing.

    The system can search for an administrator who is responsible for clarifying every error and item. Workflow technology is then used to trigger automatic subsequent processing so problems can be solved quickly.

    The condition type group will be maintained in the POS Outbound Profile (ZOTBND)

    Condition Types to be downloaded are;

    VKPO – Sales Price

    VKA0 – Promotion Price

    AUFG – Discount Condition with Scales

    NA00 – Free Goods Condition

    JTX1 – Tax Condition / Code

    Article Level Promotion Discounts – KA03 % Discount, KA05 – Value Discount

    Tax Code for each Article will be downloaded with the Article Master

    Role of Article is mapped to Product Hierarchy Field

    This field will be downloaded in the Assortment List

    Tax Master will contain all tax codes for the country in which the store is located

    Special Considerations

    BCCL will be having a separate port to ensure that data is flown two and fro from SAP to POS and vice versa.

    Changes to Existing Processes

    Changes will be required to integrate SAP with POS interface for data exchange.

    Solution in SAP

    SAP IS retail will be sending data to POS through IDocs via XI Layer

    Gaps

    None

    Workaround Solutions

    None

    7. Account Determination

    Expectation

    All the components of an invoice are suitably posted in proper G/L accounts.

    Description

    Each invoice is divided into several components as presented in the table below. Each of these components hit a separate account.

    Table: Components of an invoice and G/L accounts to be posted

    Component G/L Account

    Tax Components (CIN)

    • CST

    • LST

    • VAT

    Tax Deduction G/L Account

    Payment List (Mode of Payment acceptable in POS)

    Sales Revenue G/L Accounts

    • Payment Types: Check / Cash

    • Voucher

    • Credit / Debit Card

    Rack Jobber

    Special Revenue G/L Account

    Space Selling

    Miscellaneous Sales Revenue G/L Account

    Special Considerations

    • Provisional invoices would be created for space selling activities like catalogues, advertising medium to post respectively to recurring G/L account

    • Selling activities in the form of movie shoots and other event management activities would hit the miscellaneous G/L account in SAP.

    Changes to Existing Processes

    None

    Solution in SAP

    In SAP, proper G/L account postings are affected through Account Determination Procedure. Account determination procedure is determined based on five parameters of the invoice:

    • Chart of accounts

    • Sales Organization

    • Customer Account assignment key (From Customer Master)

    • Material Account assignment key (From Material Master)

    • Accounting key (From Condition type in the Pricing procedure)

    For BCCL, two a/c determination procedures will be configured-- one for retail sales and the other for miscellaneous sales.

    Account determination will primarily be controlled by the Accounting key attached to different condition types in the Pricing procedure.

    Further for sales Tax account, requirements will be used in the Pricing procedure.

    Gaps

    None

    Workaround Solutions

    None

    Integration Requirements

    Account determination is a major integration point with the FI module.

    Reporting Requirements

    Average gross margin and the profitability of the store will be captured store wise as we are considering store as a profit centre.

    This information will be fetched from SAP BW to get a consolidated report on the profitability analysis store wise Vis a Vis article wise.

    Authorisation Requirements

    Authorizations requirements are explained in the table below:

    Table 11: Authorization for Account Determination

    Activity Authorized Persons

    Configuration and Maintenance of Account Determination procedure Manager and above in Finance department

    Migration Requirements

    None

    Thanks

    Amit shivhare

    PS: Reward point

    Add a comment
    10|10000 characters needed characters exceeded

    • Former Member Former Member

      Hi all,

      I would like to add a request related to IS-Retail.

      Does anyone knows how to configure MM/SD such that after processing POS IDOC files, the vendor consignment stock is depleted instead of the nornal stock?

      I am encountering problem with the configuration in depleting the correct stock for vendor consignment.

      Appreciate if any guru can advise, thanks.

      Regards,

      Chong

  • author's profile photo Former Member
    Former Member
    Posted on Apr 14, 2008 at 10:05 AM

    Hi Chong,

    The system will automatically pick the normal stock if you dont maintain Rack jobber Module.

    Even if you enter Stock type K and vendor in WPUWBW the system will only fetch actual stock rather than Consignmment stock.

    These data has to be maintained in T.codes WSO1 & WSO5.

    Regards,

    Shakthi.

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.