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Calculations between key figures which are in different planning level

Hi,

We would like to calculate sales price to customer. The sales price is calculated based on the transportation cost + cost of goods transferred from the transfer location + margin.

This would be easy if the values would be maintained/calculated in same planning level in IBP. Transportation cost are maintained in PERPRODLOCLOCFR level and cost of goods in the location from transferred are maintained/calculated in level

PERPRODLOC.

Would like to hear ideas that is there a way to tackle this kind of calculation or should we maintain and calculate only values in IBP and then based on the values do a separate calculation for the sales price for example?

Accepted Solutions (1)

Accepted Solutions (1)

former_member242371
Contributor

Hello Jaakko,

The calculation will still work if even though key figures are at different planning level.

The output planning level of such calculation will be union of all input planning levels.

So, in this case Sales price will get calculated @PERPRODLOCLOCFR bu summing up transportation cost@PERPRODLOCLOCFR and cost of goods@PERPRODLOC

Thanks,

Rohit

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Hi Rohit and thanks for the answer. I think your answer is correct but my question was not well written.

I will write and example about the case.

We have a product lets say = TV

We want to know the sales price of the TV in DC1. That is calculated for example by the transportation cost from Manufacturing plant = Mill 1 to DC1. So here we can use the transportation cost@ERPRODLOCLOCFR. Then we would like to add the production cost for example from the Mill. If we would now use in the calculation cost of goods@PERPRODLOC it would use the value in the Hana database for the location DC1 and not for the Mill 1 location as it should. I tried to have in the calculation cost of goods@PERPRODLOCFR but this is not giving any value.

Hopefully this clarifies the probelm. Do you have guidance can this be solved somehow?

Thanks,

Jaakko

former_member242371
Contributor

Hello Jaakko,

Do you want to calculate total cost at Mill 1 or DC1?

In either case, You can define a calculation to aggregate the transportation cost at PERPRODLOC

For example- Transportation cost@PERPRODLOC= SUM(Transportation cost@PERPRODLOCLOCFR)

Then add production cost @PERPRODLOC to this calculation.

Thanks,

Rohit


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Hi Rohit,

I would like to calculate the total cost in DC1.

Total cost = Transportation cost @PERPRODLOCLOCFR (LocFr is here Mill1) + production cost @PERPRODLOC (by default the location here is defaulting to DC1 as I am requesting the details in DC1 but there is no production cost in DC1 but in Mill1. Here I would like to have the costs from the mill and this is the question).

Example:

Transportation from Mill 1 to DC 1 = 5 pcs

Cost of transportation = 10€

COst of production in Mill 1 = 7 €

Now if I want to see the total cost in DC 1 = transporation 5 pcs * 10 € + 5pcs * 7€ = 85€. Now as it is looking the production cost in the requested location which is 0€ then the result is 50€.

Thanks,
Jaakko

former_member242371
Contributor
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Hello Jaakko,

You can use attribute transformation to transform LOCFR into LOCID and make key figure production cost available at DC1 from Mill 1.

see details in 2562316

Thanks,

Rohit

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Hi Rohit,

Transportation cost is calculated at planning level PERPRODLOCLOCFR and manufacturing cost is calculated PERPRODLOC level. As we now would do a calculation at the Distribution center system would by default calculate transportation cost as it should but the manufacturing cost would give the cost of manufacturing at the distribution center and not from the source location which is the requirement. So in the PERPRODLOC planning level there should happen attribute transformation from LOC = LOCFR.

I have checked the examples of attribute transformation where we add some time periods to transform for example last year sales to current year. Or that we transfer product data from product A to B but I do not understand can this above scenario be done by IBP and if yes how? I have tried to configure it but I do not understand if it is possible.

It would be great to have step by step instructions how to do this. What is the attribute type id which should be selected when creating the attribute transformation and on which planning level?

Thanks

former_member242371
Contributor
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Hi Jakko,

Here are the steps you can try-

1) Bring ProductionCost@PERPRODLOC to PERPRODLOCLOCTO

ProductionCost@PERPRODLOCLOCTO = PRODUCTIONCOST@PERPRODLOC------> select any key figure at PERPRODLOCLOCTO in the input where LOCTO should have the DC

2) Define attribute transformation to replace LOCID with LOCTO

LOCID@PERPRODLOCLOCTO1= LOCTO---> Input ProductionCost@PERPRODLOCLOCTO

This makes product cost available at PERPRODLOCLOCTO1 where LOCID is the DC

3) Put this value in some other KF to represent cost at DC

ProductCostDC@perprodloclocto = ProductionCost@PERPRODLOCLOCTO1

ProductionCostDC@PERPRODLOC = Sum(ProductCostDC@perprodloclocto)

Thanks,

Rohit

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Hi Rohit and thanks for the answer,

Based on the instruction unfortunately I was not able to resolve the issue. First of all I think there is no

PERPRODLOCLOCTO planning level but only PERPRODLOCTOLOC. I first tried to do this with this planning level but with no result. I am still puzzled that the instructions are correct as in my opinion we would need to change the LOC = LOCFR. As when we are at the DC doing the calculation we would need to change the LOC to LOCFR to get the cost from manufacturing site. I did also some trials on that end but did not get the results working. This is somehow really complicated to understand how and if this is possible. If you would have still more in depth tips would appreciate.

Thanks,

Jaakko

former_member242371
Contributor
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Hi Jaakko,

Yes, the planning level i meant was PERPRODLOCTOLOC. This level gives the downstream view from manufacturing plant to DC where (LOCTO represent the DC). When you bring production cost at this planning level(using step 1 above), you can transform LOCTO to LOCID which will bring DC in LOCID field and production cost will be available at DC.

P.S- I suggested this different approach since you already configured LOC to LOCFR transformation which did not work. So we need to test multiple iterations to reach at a solution.

Thanks,

Rohit

Answers (1)

Answers (1)

Former Member
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Sales price will be sum of cost of goods @ PERPRODLOC and average/max/min (according to business requirement) of transportation cost @ PERPRODLOCLOCFR level. Summing up the transportation cost might result in wrong value of sales price.