Scope:

PMA/VIPP
This backend calculations will cover only Sales & FCP KPIs
Scenarios:
rest of ICoS & MCoS - On the fly calculations % of Sales (i.e., as-​is logic)
ActCY_vs_ActLY
ActCY_vs_FC
FCCQ_vs_FC_LQ
Data: ActCY_vs_AOP
PVM PH Staging Actuals CY & LY FCCQ_vs_ActLY
AOP AOP vs LY  
FC CQ & LQ AOP vs FC CQ
LV

Data Cleansing and Wrangling Logic of Common code

1. Harmonize Sales Organization, Sales office and ORU values to make the data comparable between P1 and P2
2. Derive 9NC, Successor/Predecessor and Common Code
Step 1: Derive 9NC from 12 NC
3. UoM for Quantity are harmonized to "ST" therefore, it shouldn't be affecting the calculations at CommonCode level or Quantity aggregation If the 12NC contains only integers (e.g. 88xx, 45xxx), then
9NC = first 9 chars + 000
else
9NC = 12NC
e.g., FINANCIALRR or ECC-​xxxx or ACCR-​xxx will be copied as-​is

Step 2: Derive Common code

Lookup Common code mapping table using 9NC
If lookup is successful,
Determine Mix Specification
Common code= from mapping table
Bucket 1: Special postings and CPM postings ( e.g., based on Material type and document types) Else
Bucket 2: Rest ALL (Comparable and non-​Comparable) (Alternative: Based on Material Master data) Common code = 9NC

PVM Calculation : Mix Specification = Special postings or CPM posting

PVM Calculation : Determine Outlier - Part I (Quantity & Sales Outlier)
*DQ indicator of the outlier is an extra field next to Outlier "Y" or "N"
1. For the Bucket 1 (Special postings or CPM postings), we don't have to check if P1 or P2 entry exist.
1. For the Bucket 2 (Comparable and non-​Comparable) records, determine the Outlier at 12NC level:
Quantity outlier - Quantity less than 0 check It will give visibility to the below sub-​process along with which condition is met:
2. By default the total P1 or P2 value will be considered as variance (P2 - P1) and it should be reported as "Price" Effect in P2
Logic:  ​ ​1. Quantity outlier
 ​- Note: Net price will be same as Price Effect & Current effect won't be calculated
 ​ - Outlier flag will be set as "Y" when the P1 quantity (or) P2 quantity are less than zero.  ​ ​2. Sales outlier
 ​ - Irrespective of Comparable or non-​Comparable, if the outlier is "Y" then the total variance should be reported as "Volume" Effect in P2.  ​ ​2. Price outlier
3. Results are stored at the lowest level i.e., 12NC
- FCP will follow same as Sales
- Update DQ indicator* accordingly to indicate the outlier sub-​process. Note: It is possible a line can satisfy more than one outlier condition but, only the first matching 
criteria will be counted and subsequent criteria will be ignored.
 ​ Sales Outlier - Sales less than 0 with Quantity = 0
 ​ Logic:
Order of Outlier Logic execution:
 ​ - Outlier flag will be set as "Y" when the P1 Sales less than 0 and P1 quantity is 0 OR
1. Quantity outlier
Exception logic for YF+ and YF- document types (Special postings):  ​ - Outlier flag will be set as "Y" when the P2 Sales less than 0 and P2 quantity is 0
2. Sales outlier
- Irrespective of Comparable or non-​Comparable, if the outlier is "Y" then the total variance should be reported as "Price" Effect in P2.
3. Price outlier (Unit price growth of P2 greater than threshold upper limit)
- If ORU BMC = NAM  ​ - Note: Net price will be same as Price effect & Current effect won't be calculated
4. Price outlier (Unit price growth of P2 less than threshold lower limit)
 ​ ​If Material Description contains keyword "MANUAL"  ​ - FCP will follow same as Sales
 - Update DQ indicator* accordingly to indicate the outlier sub-​process.
5. Price outlier (Abs. value of Price effect is greater than Abs. value of P2 Sales price)
 ​ ​ ​Mix Spec = 69 i.e., Sales goes to Price Effect
 ​ ​Else
 ​ ​ ​Mix Spec = 60 i.e., Sales goes to Mix Effect 2. Results are stored at the lowest level i.e., 12NC
 ​Else
 ​ ​ ​Mix Spec = 69 i.e., Sales goes to Price Effect

- For ALL markets, FCP goes to Mix bucket. Mix Spec = 60

PVM Calculation : Determine Comparable & non-​Comparable 

1. If the Mix Specification is Comparable or non-​Comparable and Outlier flag is "N",

 ​ Aggregate the data of 12NC from previous step to CommonCode level (i.e., without 9NC) where CommonCode = 9NC or Succ/Pred code
2. Determine Mix Specification Category - Comparable & non-​Comparable by matching the key fields of P1 and P2 at Common Code
 ​Condition for determining comparable or non-​comparable : ( Quantity P1 and Quantity P2 ) <> 0.
3. If the Mix Specification is non-​Comparable, then report the total variance under "Mix" Effect
 ​ ​non-​comparable P1 => 0 - total Sales (Total sales = 100, then Mix = -100)
 ​ ​non-​comparable P2 => total sales - 0 (Total sales = 100, then Mix = 100)
4. Results are stored at the common code level

PVM Calculation : Comparable products

I. Determine Outlier - Part II (Price outlier: Price Effect vs P2 Sales or P2 Unit price Growth outside threshold)
II. Determine PVM Effects for Comparable Products (Price Effect, Net price Effect & Currency Effect)

1. If the Mix Specification is Comparable, then use the Price Outlier logic to determine the outlier flag "Y" or "N"
2. In order to derive outlier Flag, we need Price Outlier Logic:
 ​ ​ ​a. Unit Price P1 and Unit Price P2
 ​ ​ ​b. Price Effect Outlier flag will be set as "Y" when any one of the following conditions are met:
3. Once the Unit Price P1 and Unit Price P2 are calculated, check Outlier logic and flag "Y" or "N" Condition 1: If the Unit price growth of P2 is greater than 40% (keep the threshold upper limit flexible)
4. For the records with Outlier flag "N" (i.e., remaining records), do the Price Effect calculation and check outlier logic to flag "Y" Condition 2: If the Unit price growth of P2 is less than -25% (keep the threshold lower limit flexible)
5. If the Outlier flag is "Y", then report the total variance under "Volume" Effect & update DQ indicator* accordingly to indicate outlier sub-​process. Condition 3: If the absolute value of Price effect is greater than the absolute value of P2 Sales price
6. If the Outlier flag is "N", then continue the calculation further to determine the Net price & currency Effect.
7. With key fields at Common Code level, store the Outlier details in a separate table to use it later for flagging records at 12NC
8. Results are stored at the common code level.

Note: Price outlier will be considered only for the Sales price and FCP will be ignored as it doesn't influence the Sales price.

PVM Calculation: Comparable products

III. Determine PVM Effects for Comparable Products (Volume Effect & Mix Effect)

For the records with Mix Specification as Comparable and Outlier as "N", perform the following:
 ​1. First keep Aggregation of Quantity P1 and P2 at MAG level
 ​2. Determine the P1 mix % (= P1 Quantity / Total Quantity P1 at MAG level)
 ​3. Determine the P1 quantity at P1 mix ( = Total Quantity P2 at MAG level x P1 mix %)
 ​4. Determine the Change in quantity ( = P2 quantity at P1 mix - P1 quantity)
 ​5. Use it to determine Volume Effect (= Change in Quantity x P1 Unit Price)

Now Calculate Mix Effect (= Total Variance - (Price Effect + Volume Effect))

PVM Calculation : 
IV. Bring all data together

1. Derive outlier flag to all the records from Common code back to 12NC level
2. Derive Comparable & non-​Comparable Mix Specification for all the records
2. Combine all the data filtered out at different levels (e.g., Special or CPM postings, non-​Comparable, or Outlier "Y" at 12NC level)

PVM Reporting (AfO)

PVM Offline report out