Retail Overview Final

Functional Overview
in SAP for Retail

For Internal Use Only
Topics to be Covered
 SAP IS Retail IT Architecture
 Organizational structures in SAP Retail
 Master Data
 Pricing / Promotions
 Point of Sale
 Supply Chain Execution
 SAP Retail Store
2
 SAP POS DM 2
SAP IS Retail IT
Architecture
mySAP Retail: IT architecture

HEADOFFICE • R/3 Retail
Workstations
• R/3 Retail
Central R/3 system
POS Up- & Download
STORES • R/3 Retail

Back office
• R/3 Retail
POS server
• R/3 Retail
POS systems
4
4
Overview Diagram
Vendor
Customer
Distribution
Center
Central
SAP
Retail System
Store
Basic Concepts
5 Consumer
5
Overview Diagram
Requirements Planning
for warehouse deliveries
Vendor
Customer
Sales & Delivery
To stores
Distribution
Center
Central
SAP
Retail System
Store
Basic Concepts
6 Consumer
6
Overview Diagram
Vendor
Customer
Sales & Delivery
To stores
Distribution
Center
Central
From Planning to
SAP
Execution
Retail System
Store
Basic Concepts Analysis and

Promotions
7 Consumer
7
Overview Diagram
Vendor
Customer
Sales & Delivery
Warehouse Returns
To stores
Distribution
Center
Central
From Planning to
SAP
Execution
Retail System
Store

Promotions
8 Consumer
8
Overview Diagram
Internet Selling to Customers
Vendor
Customer
Sales & Delivery
Warehouse Returns
To stores
Distribution
Center
Central
From Planning to
SAP
Execution
Retail System
Store

Promotions
9 Consumer
9
Basic Concepts
Organizational Structure
Merchandise Category
Site Master Data
Customers
Vendors
Assortment / Listing
10
10
Organizational
Structures
Organizational Structures
Organizational Elements
12
12
Organizational Elements : Sales
13
13
Organization Structure
The Sales structure comprises
 Sales organization
 Distribution Channel
 Division
 Sales Area
14
14
Sales Organization
Client 001
Sales Organization 0001 0002
Distribution chain
Distribution Channel 0001 0002 0003
Division 01 01 01
15
15
Sales Organization
 Is responsible for distributing goods and services
 Is responsible for negotiating sales conditions
 Carries out each business transaction
 Every sales organization stands for a selling unit in the legal sense, being
responsible, for example, for product liability and other recourse claims
made by customers.
 Regional subdividing of the market can also be carried out with the help of
sales organizations
 Is represented in the SAP by a four digit code
16
16
Distribution Channel
 A distribution channel is a means through which articles reach the
customer.
 Examples of distribution channels are:
– Wholesales trade
– Retail trade
Sales
– Direct sales organization
Distribution channels
Wholesale
Retail trade Direct sales
trade
Wholesale Retail
Distributor Dealer
17
17
Distribution Chain
 A distribution chain is the combination of:
– a Sales organization,
– a Distribution channel
 The distribution chain is used in Retail for reporting and pricing.
Sales Organization Sales Org 1 Sales Org 2
Distribution Distribution Distribution

Distribution Channel Channel 1 Channel 2 Channel 1
18
18
Organizational Elements: Purchasing
19
19
Organization Structure
The Purchasing structure comprises
 Purchase organization
 Purchasing Area
 Purchasing Group
20
20
Organizational Structures in
Purchasing
Client 300
Purchasing Organization R300 R400 C100

Reference
Purchasing Area R301 R301 0001
Purchasing Group 01 02 07 21 22 99
21
21
Purchasing Organization
Organizational unit which procures articles and

negotiates purchase price conditions with vendors
Highest level in purchasing for

• data retention
• data control
• reports
22
22
Purchasing Organization
Highest data retention level
 Purchasing data vendor master

 Purchasing conditions
 Vendor evaluation
Authorization level
 Maintaining master data

 Processing purchasing transactions
23
23
Purchasing Group
Group of buyers who takes the responsibility

for the procurement of a range of articles
and acts as contact person for vendors
 no data retention level

 selection criterion
 level for reports and analyses in RIS
24
24
Organizational Elements : Sales - Purchasing
25
25
Sales Org. - Purchasing Org
Client 001
Purchasing organization 0001 0002
Sales organization 0001 0002 0003
Distribution chain
Distribution channel 01 02 01 01 02
26
26
Sites: Structure and Assignments
27
27
Sites
 Organizational units which represent plant, distribution centers or
stores
 In retail switch DC and Store can be maintained as sites
 Enable merchandise to be stored and tracked (using inventory

management)
 Map different structures (for example franchisees) to the system
28
28
Sites: Profiles
 What are site profiles?

– Subdivision site categories
– Control site maintenance screens and number ranges
 What is standard available?

– Distribution center
– Store without internal settlement
– Store with internal settlement
29
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Sites - Integrated site maintenance

General data
• Organizational data
• Currency
• POS interface (only stores)
• Valuation and Inventory management
• Blocking (opening times)
• Lay out
All master data for each store
available in one single transaction
Logistic data Assortment data

• Supplying site • Assortment grade
• Unloading point • Requirement group
• Receiving points and Departments • Valuation
• Storage locations for (un)restricted use • for sale from… date
Customer data
• Accounting data
30
30
Company Code Sales Org. and Site

Company code 0001 Company code 0002
Sales organization Store
Sales Order POS Sales
Invoice Invoice
Invoice
CC 0002 CC 0002
CC 0001
Real Intercompany Anonymous

customer billing customer customer
31
31
Franchisees
A franchisee can be modeled as a site
 If Financial Accounting is not active for the franchisee, it can be assigned

to a company code .
This company code can be considered a "dummy" company code.
 If Financial Accounting is active for the franchisee, it must be assigned to
its own company code. All the stores of a franchisee are assigned to the
appropriate company code.
Franchisee
Store
32
32
Site: Master Data

Site (general)
Merchandise categories
Unloading points
Site Merchant ID
(both categories) Partner functions
Storage location (Customizing)
Distribution center
Store
Departments
Receiving points POS
Further storage locations Supplying sites Layout
33
33
Organizational Elements : Summary
35
35
Organizational Structures in Retailing

Company
Central purchasing
Client
Purchasing org.
Local purchasing
Company code
Company code
Retail Wholsale Wholsale Retail Sales organization
distribution chain distribution chain distribution chain distribution chain Distribution channel
Site + Customer
Distribution Distribution
Store Store Store Store (Sales office)
center center
(Company code)
Store department
Storage Storage Depart- Depart- Cost center
types types ment ment Storage location,
storage type
Consumer Consumer Customer Customer Customer
Natural Natural
Contact person
person person
= belongs to = is supplied by 36
36
Organizational Elements : Reference Sites
37
37
Reference Sites
To simplify the entry procedure when creating a new site, you can
identify a reference site from which the system copies settings for the
new site
The following data is copied from the reference site:
1) General Site Data
2) Calendar
3) Valuation / Inventory Management
4) Listing
5) Requirement Planning
6) Purchasing
7) Administrative Data
8) Layouts
9) POS Interface
38
38
Reference Site
Reference DC Reference Store
Provides default data for
DC South DC East Store Bonn Store Berlin
39
39
 SAP AG 2000 Application Specific Performance Workshop 39
Reference Site
Reference DC
Provides default data for
DC South DC East DC North
40
40
 SAP AG 2000 Application Specific Performance Workshop 40
Reference Site
Distribution Chain North Distribution Chain South
Reference Store- Reference Store Reference Store

General Distribution Chain Distribution Chain
North South
Provides default data for Provides default data for Provides default data for
Store Store Store

Bonn Store Hamburg Heidelberg
Cologne Optional 41
41
Master Data
Master Data in SAP Retail

Classification
Merchandise
Data Customers
Categories
Conditions Purchasing
Info
Records
Retail
Sites
Stock
Levels
Articles Listing
Vendors Conditions
43
43
Vendor
Vendor Master Data

General data
Address
Control data
Vendor
Bank details
Contacts
Company Code Data

Account Management
Payment transactions
Correspondence
Tax
Purchasing organization data

Purchasing data
Partner functions
45
45
Partner Functions
Example
Ordering address Vendor Invoicing party
DEUTSCHE
MARK
DEUTSCHE
MARK
DEUTSCHE
MARK
Goods supplier Payee
46
46
Vendor creation: Vendor types
Internal vendors External vendors
• Distribution center • Vendor

• Central warehouse • One-time vendor
• Regional warehouse
47
47
Vendor: Supply Regions
Regions:
Northeast
Northwest
Northeast region
Vendor Jones
M
PO
Northwest region
M
Store 2
M
M
Store 1
Vendor Smith
Regions:
South Southern region
PO
M
Store 3
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48
Customer
Customer Master Data
General data
Address
Control data
Bank details
Marketing, export data
Company Code Data

Account Management
Payment transactions
Correspondence
Insurance Customer
Sales area data
Orders, Shipping, Billing Docs
Partner functions
50
50
Customer Master Data

 It includes all data necessary for processing orders, deliveries, invoices, and
customer payments.
 Customer master information is shared between accounting and sales

department (e.g. customer number)
 The Customer master groups data into categories:general data, company

code data and sales & distribution data.
– General Data could be Customer number.
– Company code Data relevant for accounting(e.g. Reconciliation account)
– Sales Data relevant specific for sales (e.g. shipping information)
51
51
Partner Functions
Vendor Sold-to-Party
Employee Resp. Partner Function Ship-to-Party
Carrier Payer
 A company deals with different persons during business transactions.

 A customer orders goods from a company. A forwarding agent might
deliver goods to the customer. An employee within the company
processes the business transactions.
 All roles a natural or legal person can assume are represented by
business partners in the SAP R/3 System.
52
52
Business Partners
 You can maintain partners/customers (such as sold-to-parties, ship-to-
parties, payers, bill-to-parties) in the customer master and in sales &
distribution documents. Each partner is identified by a partner function.
 Data on Vendors maintained in the vendor master.
 E.g. of Partner functions are Sold-to-Party (AG), Bill-to-Party (RE), Payer

(RG), Ship-to-Party (WE), Contact Person, Employee Responsible,
Forwarding Agent.
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53
Article
Article: Definition
 An article is the smallest unit that can be ordered and that cannot be split
further into any smaller units. Articles are generally ordered for a site and
sold.
 Articles are, however, not always sold in the form in which they were
purchased.
 An article master record contains all the data that is required for the
system administration of an article. The data can be categorized as
follows:
– Descriptive data, for example size and date
– Control data, for example, article type
55
55
Article Categories
Single Structured Article
Article
Pears
MUNCH
Detol
BAR ONE
Generic Chocolate Gift set Shoe prepack

Article = = =
Display Sales set Prepack
Article and Group of Packs
its display articles with a containing
packing special sales article variants
price
56
56
Views in a Article Master
Basic Data Sales
Listing
Logistics DC
Inventory
Quality
Sales Information
Production Information Purchasing Store Logistics
Desc:---------------------
Product - Ad_bboot_fs
POS
57
57
Procedure for creating Article

Unit of Measure
EAN
Creation of
Basic Data Assortment
Listing
Assortment list
Discount
creration
Maintenence of
Purchasing
condition Vendor
Logistics view Sales price
maintenence Calculation
Planned
Requirement markup
planning procedure
Margin
58
58
Levels of Data for Article

General Data Site Data Storage
Location Data
• Description • MRP profile
• Units of measure • Manufacturing costs • Stocks
• Transportation group • Loading group • Storage bin
• Weight
• Volume
• Division
Sales Data
Dependent upon
• Delivering Site sales organization
• Minimum order quantity
and distribution channel
• Sales text
• Product hierarchy
59
59
Views in a Article Master Record

A
B Storage
Basic Data
Warehouse
Mgmt.
Classification
Quality
Article Management
Master
Sales Record Accounting
Costing
Purchasing
Site Stock
RP
Storage loc. Stock
Forecast
60
60
Data Maintenance: Units of Measure

For example:
Minimum order quantity 64 PC
Examples of alternative
units of measure
Piece Carton Pallet

(Base unit) (Sales unit) (Delivery unit)
1 piece 8 pieces 72 pieces
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61
Merchandise
Category
Merchandise Category Hierarchy
Merchandise category
hierarchy value-only
Hierarchy levels
Category Hierarchy
Merchandise
articles
Category
Merchandise
value-only articles
Reference articles
Merchandise Category Hierarchy: For Internal Use Only
Example
Merchandise All articles

category hierarchy
Non-Food Food
Household goods Apparel

Hierarchy levels
Ladies’ fashion
Lingerie
Article1 Article2
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Merchandise Category Hierarchy: For Internal Use Only
Characteristics
All articles
Characteristics
“Natural”
“Natural” Non-Food Food
Inheritance
“Natural” “Natural”, Color, Size

Color, Size Household goods Apparel
Inheritance
“Natural”, Color, Size
Ladies’ fashion
“Natural”, Color, Size, Style

Style Lingerie
65
65
Assortment
Retail Assortment Objects

Assortment Assortment DC Paris
module
DC
Paris
Articles Assortment
Assortment
module London store
London Store
Assortment 1
Customer
Assortment 2
Assortment
module
67
67
Assortment: Definitions
 An assortment determines if a store, distribution center or a
customer can receive certain articles at certain times
 Assortment is part of company’s merchandise offering to a
specified target group
 Assortment Management covers -
Assignment of articles to stores at different times thereby enabling
merchandise presentation and sale to customers
Assignment of articles to Distribution Centers at different times thereby
enabling Warehouse management and Merchandise Procurement for
stores and customers
Assignment of articles to particular assortment customer at different times
(*Ex - Customer Groups, Catalogs)
Assortment Grade Rules
:
Describes the depth of an assortment per Store and Merchandise Category
Assortment- New York Store

grade
Maximum Singapore Store

assortment
Sydney Store
Special
assortment
Tokyo Store
Extended
assortment
Core
assortment
69
69
Assortment Module
70
70
Assortment Module
 Assortment modules can be created either manually or automatically using the article
maintenance or promotion application. To keep maintenance efforts to a minimum,
modules should be created automatically rather than manually
 A profile module is created automatically in the article maintenance for each assortment
and merchandise category.
 Shelf modules are generated in the maintenance for layout modules that are assigned to
the assortments. They map the layout or rather the arrangement of the merchandise in a
shelf for space management.
 A promotion module contains the articles that need to be dealt with together in a
promotion or a promotion theme respectively.
 Rack jobber modules are modules for those vendors who deliver and present articles in
stores themselves. A rack jobber module can only be assigned to one vendor. An article
that is listed in a rack jobber module cannot be listed in any other module .
 The local module is only valid for one site and therefore forms the local assortment .
 Articles can be excluded from the existing assortment for a specifies period of time
using an exclusion mod
71
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Merchandise Category Check
Handbags
Merchandise categories
Tokyo Store Handbags Shoes
...
Sydney Store Travel Shoes
...
72
72
Listing
Listing : Definitions
Listing is the process of assigning articles to an assortment
 Assortment is defined for each site and each article by the process or listing
 Only listed articles can be ordered for/from site or customer or stored at site
Manual listing Automatic listing
Direct selection of assortment

(for exclusion or listing 1 Selection via site merchandise-
category master and assortment
in a specific site, for example) grade
2 Selection via matching
classification data
3 Layout comparison
Listing Procedure
store DC Customer
Article
Assortment
IDoc
Listing conditions Promotion
Listing
Allocation table
procedure
Manual Modules
Assortment
functions 75
75
Allocation Table
 The planning tool used by a purchasing organization to allocate stocks of a material
among Sites at specific periods
 An allocation table consists of items in which the total quantity of a material to be
allocated is defined.
 Allocation tables can be used to plan stock splits for both DC and Sites
76
76
Allocation Rule
 Ratios defined for the allocation of materials to Sites
 Allocation rules can be used to create allocation tables in which Sites involved in
allocation and the allocated quantities are specified.
 Allocation rules can be used to define ratios based on the Retail Information
system (for example previous month’s sale)
77
77
Allocation Strategy
 It’s a method of allocating materials to Stores and DC’s
 Allocation strategies are an alternative to allocation rules and are used to ensure
that quantities are allocated equally (when a plant group is specified), and to enter
plant quantities manually
78
78
Assortment List
79
79
Assortment List
 Assortment List provides an overview of the Listed Assortment.
 By using the assortment list the store or customer is kept informed of any changes
in the assortment ( new or discontinued articles, price changes, promotion articles)
 Assortment lists can be created according to usage and assortment.
80
80
Contents of Assortment List
81
81
Pricing
Pricing
83
83
Pricing
84
84
Sales Price Calculation : Basics
85
85
86
86
87
87
88
88
Two Stage Calculation
89
89
Two Stage Calculation
DC is vendor for the

delivery to the stores
Delivery to DC from Different markups per

vendor PCS-V142 distribution chain
90
90
Price List Calculation
91
91
Pricing – Checklist
92
92
Competitor Pricing: Method

 This method is used in competitive markets
Competitors Store Consumer
Competitor 1 EUR 10,- Suggested price SP (gross)

Competitor 2 EUR 12,- EUR 9,- EUR 10,49
Competitor 3 EUR 11,-
Pricing strategy: 10% below
lowest
VAT: 16%
Price Point Group: 001
93
93
Competitor Pricing: Settings
 Customizing
– Pricing strategies
– Condition types/List fields
 Competitors and Competitor groups
 Maintain strategy per store per merchandise category
 Price entries
94
 Sales price determination sequence 94
Markdown Planning
 Defining planned price reductions for merchandise within a specified

period (mostly seasonal products)
 The planned sales quantities and values can be taken into account in
the markdown plan
Procedure:
 Markdown Rule (% over time)
 Markdown Type (assign rule to org. Level)
 Markdown Plan (details for articles & stores)
95
95
Markdown Rule
Transaction WMR1
Percent of
source price
100% 70%
• •
50% 33,5%
• •
Time
01.March 01.May 10.May 10.June
96
96
Markdown Type
Customizing, Logistics General,
Season, Markdown type
Different default
settings possible per
distribution chain
Markdown type Markdown rule Sales org. Distribution chnl.
005 Special. NL V1
006 Special. UK V1
007 Discount NL V2
008 Discount UK V2
97
97
Markdown Planning: Procedure

Planning of markdowns
 Selection of articles and sites
 Article

 Price phase
 Sales prices
rel. Price
 Markdown in %
 Quantities (plnd sales qty, remaining
80% stocks)
100% • 50% 30%
•  Calculation of margins
• •
Price activation
Time
Markdown rule  Generation of conditions records
 Updating of price calculation
Sale of articles
 Reply via POS
Analysis of sales
Any adjustments necessary
to markdown planning  Comparison of planned/actual sales
 Remaining stocks
 Shifting of price phases  Range of coverage
Source: SAP
 Markdown increase in %
98
98
Promotions
Promotion Creation Procedure
Create
Promotion
Planned Currency
Free goods Create
Discount Promotion Promotion periods
Data
Article
Assign Store
Enter Planning
Groups
Data
Quantity & Price

Period-based Planning
100
100
Promotion Assignments
Product Catalog Themes
Conditions Promotion Additionals
Store Groups Promotion Modules
 Any number of product catalogs ( brochures, journals etc ) can be assigned to a

promotion
 Promotions can be broken down into themes created using assortment structures or
marketing strategies ex - homecare, photography, modern living
 Themed promotions can be used for grouping articles within the promotions
 Participating stores are assigned to promotion as stores. Each store group has its
own validity period for the promotions
101
101
Promotion : Scope of Functions

The following functions are available for promotions
 Controlling stores that participate in the promotions
 Assignment of particular purchase or sales agreement to promotions
 Complete integration of promotion in product catalogs
 Defining the validity periods for purchasing, sales & deliveries for both retail &
wholesale customers
 Promotion announcement to stores
 Automatic allocation of promotional stock & standard stock
 Automatic update of sold quantities & different promotion data during promotion
 Automatic reset of article prices to standard prices after the expiry of promotions
 Automatic promotion determination when orders & PO are created
 Availability of different reports & analyses for evaluating promotions
 Support of coupons & bonus buys
102
102
Promotion : Coupons & Bonus Buy

 Coupons ( in connection with Bonus Buy) entitle the customer to a bonus when
purchasing goods ex - buy 2 units of Product A & get the third free or get a discount
of x% on product A in conjunction with a coupon or gift of product B on purchase of
product A
 Coupons are handled as articles in the SAP Retail system
 Coupon data is downloaded to the POS system along with the promotion data
 The coupon amount appears as negative amount on the POS cash receipt when the
coupon is scanned
 Sales transaction data is uploaded to the SAP Retail system using POS inbound
processing.
 The coupon discount amounts are posted to the relevant vendor and/or store in line
with the distribution instructions in the coupon profile
103
103
Point of Sale
(POS)
Point Of Sales - Definition
The sales and financial transactions are executed with an

decentral electronic POS system or an distributed non-SAP
retailing system and are transfered with the help of a
converter.
105
105
POS - Overview
•Use POS Outbound to supply the POS systems in the store with
current data at regular intervals
•Transfer sales data of anonymous or named customer from POS to

the central SAP system.They can be transmitted as sales as per
receipt or aggregated sales
•Settlement of Payment Cards
•Transfer financial transactions
•Handling of vouchers
106
106
POS Interfacing
Set Exchange
Assignments Rates
Customer EAN
Assignments
Article
MC
HQ / DC Price
Hierarchy
Store
Delivery
Outbound
SAP ECC POS
Retail Inbound Back-office
Sales
Goods
Receipt
Inventory
Finance
Returns
Additionals Customer
107
107
POS Interfacing
SAP Outbound SAP Inbound

– Article – Sales
• Basic Data – Payment List
• Price – Financial Transactions
– Goods Movement
– EAN – Store Goods Receipt
– Sales Sets – Cashier Statistics
– Merchandise Categories – Store Orders
– Exchange rates – Store Physical Inventory
– Taxes – Master Data
– Customer Master • Article 108
108
POS : Interfaces
SAP Retail
POS Interface
Inbound processing Outbound processing

unit POS unit
Sales Article data
Stores orders Monitor Prices
Store goods receipts Delivery note
ALE/EDI
POS-Converter
Conversion
IDoc IDoc
Communication
Stores/Point-Of-Sale
109
109
POS : Outbound
Article Master Exchange Rates

Merchandise WPDCUR01
Data incl. Tax Rates
Categories
Conditions WPDTAX01
WPDWGR01
WP_PLU02
Set-
Customer Data
Assignments
WP_PER01
WPDSET01
POS
Outbound
EAN- Products
Assignments WPDNAC01
WP_EAN01
110
110
Handling in POS Outbound

R/3-System
Application POS AL EDI
E
Data Master- Transfer into Comm.-

IDoc IDoc
Preparation communication files
Data Status
Communication Comm.-
File
Store System Converter
111
111
POS : Inbound
Sales
as per receipts: WPUBON01 Store Orders
aggregated: WPUUMS01 WGSREQ02
Payment Cashier
Information Statistics
WPUTAB01 WPUKSR01
Financial
Store Inventory
Transactions
WPUFIB01
POS- WVINVE02
Inbound
Master Data
Goods Article, Customer,
Movements EAN Assignments
WPUWBW01 WP_PLU02
WP_PER01
WP_EAN01
112
112
Handling in POS Inbound

R/3-System
Application AL IDoc-File
E
Workflow
Comm.-
Application Application IDoc
Data Function
Data Status
Communication Comm.-
File
Store System Converter
113
113
POS : Handling of Payment Cards
Bank of the
Bank retailer
Debits amounts from

the cardholder and - Authorization via POS
transfers them to the
bank of the retailer - settles payments
Clearing-
House
- Grants authorization
- Provides services for
billing and settlement
Uses payment card to pay his

purchases
Customer with Delivers goods and accept payment cards

Payment Card Retailer
114
114
POS Functionalities
• Download master data to Point-Of-Sale
• Sales as per receipt to anonymous customer
• Payment type cash with different currencies
• Return
• Payment with credit card and customer card, granting of an item discount
• Sales as per receipt to known customer
• Payment with credit card, customer card and on invoice, granting of an header
discount
• Voucher: Buying and Payment
• Aggregated sales with payment list
• Financial transactions: Day-end-closing
• Settlement of payment cards and incoming payment

115
115
• Analysis of sales in Retail Information System (Sales as per receipt and
Scenario: Sales
Article
Maintenance
Listing
Sales-Audit Calculation
Sales
Analysis Transfer POS Outbound
data to POS
Settlement
of Payment Sales on
Transfer to Cards cash
clearing house register
Incoming Day-End- Transfer of
Payment Closing receipts
Financial Transaction POS Inbound
116
116
Supply Chain
Execution
Basic Concepts
Process Overview
Goods Receipt Process
Inventory Management
Goods Issue Process
Merchandise Distribution
118
118
Process Overview
Overview Diagram
Internet Selling to Customers
Vendor
Customer
Sales & Delivery
Warehouse Returns
To stores
Distribution
Center
Central
From Planning to
SAP
Execution
Retail System
Store

Promotions
120 Consumer
120
Requirements Planning & Warehouse Deliveries

Merchandise Flow
Information Flow
Vendor
Requests
&
Quotations
Central
SAP
Retail System
Distribution
Basic Concepts Center
121
121

Merchandise Flow
Information Flow
Vendor
1. Requirements
Planning
Requests
&
Quotations
Central
SAP
Retail System
Distribution
122
122

Merchandise Flow
Information Flow
2. Purchase
Vendor Order
1. Requirements
Planning
Requests
&
Quotations
Central
SAP
Retail System
Distribution
123
123

Merchandise Flow
Information Flow
2. Purchase
Vendor Order
1. Requirements
Planning
3.Sales & Delivery Requests

To stores &
Quotations
Central
SAP
Retail System
Distribution
124
124

Merchandise Flow
Information Flow
2. Purchase
Vendor Order
1. Requirements
Planning

To stores &
Quotations
4. Inbound Delivery
& GR
Central in DistributionCenter
SAP
Retail System
Distribution
125
125

Merchandise Flow
Information Flow
2. Purchase
Vendor Order
1. Requirements
Planning

To stores &
Quotations
4. Inbound Delivery
& GR
Central in DistributionCenter
SAP
Retail System
5.Invoice Verification Distribution

Basic Concepts & Check Center
126
126
Structure of Distribution Center
127
127
Goods Receipt
Process
Goods Receipt : Steps Involved
129
129
Goods Receipt : Steps Involved

Goods receipt in a site (distribution center or store) can be done in one or two steps.
􀁹 Single-step procedure: A (complete) goods receipt (GR) is executed directly.
􀁹 Two-step procedure: A rough goods receipt (rough GR) is run first, enabling
delivery quantities to be entered, and is followed by a GR.
130
130
Goods Movement Documents
131
131
Documents from PO to GR
132
132
Inventory
Management
Stock Overview
134
134
Goods Movements
135
135
Goods Movements
- Goods receipt (GR)
Goods movement in which a goods receipt from an external vendor (or from
production) is posted. A goods receipt leads to an increase in the warehouse stock.
- Goods issue (GI)
Goods movement in which a merchandise shipment to the customers, an article
withdrawal or issue, or consumption is posted. A goods issue leads to a decrease
in the warehouse stock.
- Stock transfer
A stock transfer consists of removing articles from one storage location and
putting them away in another storage location. Stock transfers can take place either
within the same site or between two sites (distribution centers or stores).
- Transfer posting
A transfer posting is a general term for stock transfers and changes to an article's
stock identification or category. It is irrelevant whether the posting relates to a
physical movement or not.
136
136
Transfer Posting
137
137
Stock Transfer from DC to Store
138
138
Store Physical Inventory

Periodic physical inventory
Create and post
physical inventory document
Send physical inventory

Block storage location
document to store
Print count list at store

or convert to MDE
Count, weigh, measure,

estimate
Send back
count results
Post physical inventory

differences
Unblock storage location Physical inventory analysis
Difference
140
140
Creating and Sending the Inventory For Internal Use Only
Documents
Document date Physical

Inventory Doc.
Planned count date
IDoc
Site or
Storage location paper
Article
Head Office Store
141
141
Sending the counting results back to For Internal Use Only
Head office
Counting
results
POS Inbound
142
142
Clearing of the differences
Counting
results
Inventory Management
Book Actual
Stock 100 Counted 99
Difference 1
I-Differenz 1
100 100
Initialize recount
or posting the difference
143
143
Scenario: Store Physical Inventory
Stock overview
If needed:
Check post goods receipt
stock overview
Analyse
physical Prepare
Create physical
Inventory overview inventory physical
inventory doc.
inventory
Inventory
controlling
Clear
differences Process physical
inventory Send document to store
(Idoc)
Clear differences in
inventory management POS Inbound of
counting results
144
144
Goods Issue
Business Process
146
146
Shipping : Procedure
147
147
Merchandise
Distribution
148
148
Replenishment Strategies
Push Pull
Distribution
Warehouse
planning Allocation Sales order
order
Warehouse
order
Purchase Collective
order Purchase order
Distribution
Goods
processing receipt
Processing
methods
Goods
issue
149
149
Processing Methods
Goods receipt
Merchandise
Stock Recipient-driven
Cross-docking driven
Placement flow-through
flow-through
Picking of
Generation of Generation of
distribution
deliveries deliveries
orders
Picking with
Generation of
picking
deliveries
requests
Goods issue
150
150
Stock placement / Putaway: General

 Two different processes:
1) Stock placement and goods receipt
2) Ordering from stores and goods issue to stores
 Standard supported method: no customizing needed
151
151
Stock placement / Putaway: Overview
High-rack
2 stor. 3
Picking
1 4
Vendor Goods Goods Stores

receipt issue
152
152
Cross Docking: General

 Direct delivery to stores
 No stock placement
 No repacking and picking at DC
 Fewer handling steps: no stock placement and no picking
 Assignment between procurement and delivery, causes smaller chance on

mistakes in process
153
153
Cross Docking: Overview
High-rack
stor.
Picking
1 3

receipt issue
2a 2b
Cross
docking
154
154
Flow Through: General

 No stock placement
 No picking at DC
 Goods are repacked for delivery to store
 Two methods: Recipient driven or Merchandise driven

– Merchandise driven will be shipped per complete handling unit (pallet) using
distribution orders
– Recipient driven will be shipped after repacking
155
155
Flow Through: Overview
High-rack
stor.
Picking
1 3

receipt issue
2a 2b
156
156
Site Distribution Profile
Setting in Site Master in view

Purchasing/Distribution
(only in DC sites possible)
158
158
Article Distribution Profile

Default values for controlling merchandise distribution in a Distribution
Center
159
159
Article Distribution Profile
Setting via article master

Logistics DC view
160
160
SAP Retail Store
161
161
mySAP Retail Store

Login
screen
Main menu:
162
162
Retail Store - Functionalities logistics

Inventory management
• Enter goods receipt
Master data
• Enter goods movement
• Display site data
• Display and edit
• Display assortment list
physical inventory
• Display product catalogs
• Stock edit
• Display and maintain
customer data
Sales
• Display Sales prices
• Maintenance sales orders
• Shelf layout
• Additionals
• Cash balancing
Information
• Allocation
• Promotions Purchasing
• Standard analyses (BW) • Store order and follow-on
• Open goods receipt documents
• Expense invoice
163
163
Retail Store - Functionalities HR
Human Resources
• Maintain employee data

• Assign contract types
• Record working times

• Reports
164
164
Retail Store – Architecture

mySAP Retail
HQ
SAP Business
ITS Connector
http
Standard Web SAP Business

browser Connector
XML
(opt.)
Store
165 Source: SAP
165
Retail Store - Overview Functionalities
6.
4. 5.
1.
3. 2.
166
166
Retail Store - Master Data
 Site
 Assortment List
 Product Catalog
 Customer
 Sales Prices
 Space Management
167
167
Master Data - Site
 Address
 Opening hours
 Lay-out / blocks
 Receiving points
 Departments
 Merchandise
Categories
168
168
Master Data – Assortment List
 Assortment
list selection
 Date selection
 Vendor selection
 Detailed article
information
169
169
Master Data – Assortment List

An assortment list contains
 All articles that can be ordered per store within a certain period
 Descriptions of new articles and those to be discontinued
 Information about sources of supply (DC or external vendor), like

purchase info, delivery unit, sales unit
 Information about movement data (promotions, allocation tables

previous orders)
 Information about presentations and article sales (labels, sales

prices, layout)
170
170
Master Data – Sales Prices
 Display or change
article price
 Selection by
article number or
EAN
 Optional display
of price history
171
171
Retail Store - Purchasing

Purchasing
 Manual creation of Store Order

 Creation of Store Order using PDC
 Creation from Replenishment
172
172
Purchasing – Store Order
173
173
Retail Store – Inventory Management

Inventory
management
 Goods Receipt
 Goods Movement
 Physical Inventory
 Stock Entry
174
174
Inventory Management - Goods Receipt

in Store
Receipt data
Head office
Vendor
Store
Delivery
DC Delivery
Picking
Goods issue
Billing
175 Source: SAP
175
Inventory Management - Goods Receipt
 Enter GR
 Reverse GR
 Return Delivery
176
176
Retail Store – Sales
 Create Sales Order

 Additionals
177
177
Sales – Process Overview

Purchase Order
Sales Order Head office

Vendor
DC Delivery
Store
178 Source: SAP

178
SAP POS DM
179
179
SAP POS DM
 SAP for Retail POS Data Management enables a retailer to collect all the
available POS data and use it conveniently in all back office systems,
including non-SAP applications.
 POS DM Solution helps retailers access the Cash Register information. This
information provides valuable insight into customer buying patterns and
inventory carrying costs, both details critical for competitive advantage in
today’s retail industry.
180
180
SAP POS DM
Purpose
– As the reporting and analysis part of SAP POS DM, the Business content for
POS Analytics allows to upload POS data efficiently to SAP BI using the PIPE
(POS Inbound Processing Engine) and to create reports for the following areas:
• Store/Article Analytics
• Event Analytics
• Cashier Analytics
181
181
POS Integration Diagram
CONVERTER DATA CLEANSING & DATA WAREHOUSE
PI POSDM / BI
POS
Files
PIPE
TLOG Delta
PIPE
Queue
OUTBOUND
DB INTERFACE
IDOC
POS INBOUND INTERFACE
Standard
POS Outbound Retail Extraction/
IDOC Processes Delta
Management
Standard Interface
POS OUTBOUND INTERFACE
ERP SYSTEM
New Interface
RETAIL
182
182
SAP POSDM Solution Diagram
Sales Analyses of POS Data

Store Loss Promo
BI-Reporting
Templates
Contr. Prevent Analysis
SAP BI
mySAP
Landscape
PIPE Outbound Interfaces
POS Inbound Processing Engine
3rd Party
Landscape
Upload of POS Data to SAP BI

via POS Inbound Processing Engine
183
183
Retail Transaction Codes
184
184

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Functional Overview

in SAP for Retail

 SAP IS Retail IT Architecture

 Organizational structures in SAP Retail

 Supply Chain Execution

 SAP Retail Store

mySAP Retail: IT architecture

POS Up- & Download

STORES • R/3 Retail

Basic Concepts Analysis and

Basic Concepts Analysis and

Basic Concepts Analysis and

Site Master Data

Organizational Elements : Sales

Sales Organization 0001 0002

Distribution Channel 0001 0002 0003

Sales Organization Sales Org 1 Sales Org 2

Distribution Distribution Distribution

Organizational Elements: Purchasing

Purchasing Organization R300 R400 C100

Purchasing Area R301 R301 0001

Organizational unit which procures articles and

Highest level in purchasing for

 Purchasing data vendor master

 Maintaining master data

Group of buyers who takes the responsibility

 no data retention level

Organizational Elements : Sales - Purchasing

Sales Org. - Purchasing Org

Purchasing organization 0001 0002

Sales organization 0001 0002 0003

Sites: Structure and Assignments

 In retail switch DC and Store can be maintained as sites

 Enable merchandise to be stored and tracked (using inventory

 Map different structures (for example franchisees) to the system

 What are site profiles?

 What is standard available?

Sites - Integrated site maintenance

Logistic data Assortment data

Company Code Sales Org. and Site

Sales organization Store

Sales Order POS Sales

Real Intercompany Anonymous

 If Financial Accounting is not active for the franchisee, it can be assigned

Site: Master Data

Organizational Elements : Summary

Organizational Structures in Retailing

Consumer Consumer Customer Customer Customer

Organizational Elements : Reference Sites

Reference DC Reference Store

Provides default data for

DC South DC East Store Bonn Store Berlin

Provides default data for

DC South DC East DC North

Reference Store- Reference Store Reference Store

Store Store Store

Master Data in SAP Retail

Vendor Master Data

Company Code Data

Purchasing organization data

Ordering address Vendor Invoicing party

Goods supplier Payee

Vendor creation: Vendor types