Cal Fin Met Use Price LST

Adobe Captivate Wednesday, July 19, 2023
Slide 3 - Oracle Supply Chain Planning Cloud
Slide notes
Hello, my name is Srikanta. Welcome to training for Supply Planning and Sales and Operations Planning in Oracle Supply Chain Planning Cloud.
In this session, we talk about Calculate Financial Metrics Using a Price List in Supply Chain Planning.
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Slide 4 - Agenda
Slide notes
For the capabilities covered in this training, we’ll give an overview, followed by more detail to explain how you can use them, and what business value they
bring.
Then, we’ll walk you through a demonstration. Next, we’ll explain what you need to consider before enabling these features in your business, and what you
need to know to set them up.
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Slide 5 - Calculate Financial Metrics Using a Price List
Slide notes
Derive item price in the plan using price list which will then be used to compute all financial metrics such as Revenue, Margin, and other measures.
Calculate Financial Metrics Using Price List allows you to:
Consider price list details of item as selling price in plans,
Derive average selling price for an item in a plan from multiple price lists associated to the plan,
Compute end demand value based on selling price of an item from price lists associated to the plan and
Compute financial metrics for a plan based using price list.
Calculate Financial Metrics Using Price List is applicable to supply plan, integrated demand and supply plan and sales and operations plan.
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Slide 6 - Calculate Financial Metrics Using a Price List
Slide notes
Calculate Financial Metrics Using Price List improves efficiency and productivity for businesses with enhanced financial metrics calculation and analysis in
plans using price lists.
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Slide 54 - Additional Information for Calculate Financial Metrics Using a Price List
Slide notes
Let’s now cover some additional information about Calculate Financial Metrics Using a Price List.
Perform the following steps to Calculate Financial Metrics Using a Price List in a supply plan:
Collect price list details for items and price lists from source system.
Create a supply plan by selecting the price lists in the plan option.
Enable the plan option “Include When Deriving Selling Price” for each price list from which price list details of items has to be considered while calculating
selling price of item in plan,
Run the plan, and
Review and analyze the financial metrics calculated in the supply plan using price list.
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Slide notes
The following validations are applied for plan option "Include When Deriving Selling Price":
"Include When Deriving Selling Price" is disabled for default price list "Item List Price “since the item price is already the current basis for all calculations.
"Include When Deriving Selling Price" is enabled for User defined price lists collected from SCM Cloud or external source systems.
Both "Include When Deriving Selling Price" and "Primary" can be enabled for a user defined price list, and
"Include When Deriving Selling Price" can be enabled for multiple price lists for deriving item selling price.
The selling price of the item will be same as item list price:
If there are no user-defined price lists assigned to plan, and
If “Include When Deriving Selling Price” is unchecked for all price lists assigned to the plan.
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Slide notes
Price measure will still be calculated using the price list, which is set as Primary,
A user-defined price list or “Item list Price” price list can set as primary. In a plan only one price list can be set as primary.
Price measure values calculated using a primary price list can be used to compute the value of demand measures in a user-defined measure with an
expression in a supply plan.
Price measure values calculated using a primary price list are used for computing shipments or booking forecasts value measures in Integrated Demand
and Supply Planning, Demand Planning and Sales and Operations planning.
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Slide notes
The Supply Planning and sales and operations planning process performs the following to derive the item selling price for items from price lists:
Selects price lists for selling price computation for which the "Include When Deriving Selling Price" check box is enabled.
Select all price list details for an item organization across enabled price lists where the price list detail End Date is greater than the plan horizon start date
as per the plan option.
If the selected price list details for an item are not in the functional currency of the organization, convert the item price to the organization's currency code by
referring to the latest inter currency conversion rates collected to Supply Chain Planning Cloud whose conversion date is before the plan horizon start date.
Derive the average selling price of each unique item-organization across all price lists for entire plan horizon, and
Apply the derived price as the item selling price in the organization for calculating financial metrics in the plan.
The following is the order of preference of input data selection by the planning process for applying as the selling price of an item in a plan:
Item selling price specified in a simulation set assigned to the plan,
Derived average selling price of the item based on price list details from price lists for which "Include When Deriving Selling Price" is checked, and
Collected item selling price or list price of the item as specified in Product Hub from SCM Cloud or collected using Items FBDI to SCP Cloud.
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Slide notes
Let’s consider a numerical example on how average selling price is derived for an item from price lists in a supply plan:
Item AS7311 in organization is collected with price list details from the source system. In Price List 1, the price is 10 US Dollars, effective from January 1st,
2022.
In Price List2, the price is 11 US Dollars effective from February 2nd, 2022.
In Price List3, the price is 9.5 Euros, effective from March 3rd, 2022.
In Price List 4, the price is 14U US Dollars, effective from January 1st, 2022, to June 30th, 2022.
Item AS7311 and CM1234 have a collected list price as selling price as 10 US Dollars.
The latest collected conversion rate from Euros to US Dollars is 1.2, with the conversion date effective from Jan 1st, 2022.
Organization M1 has its currency in US Dollars.
A supply plan is created with the plan horizon start date as July 29th, 2022.
Price List 1, Price List 2, Price List 3, and Price List 4 are as enabled for “Include When Deriving Selling Price.”
The default price list “Item List Price” is enabled as the primary price list.
The supply planning process derives the selling price for item AS7311 from price lists.
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The price 9.5 Euros from Price List 3 is converted to US Dollars using latest conversion rate. The price 14 US Dollars from Price List 4 is ignored, as the
price end date is before the plan horizon start date.
So, the average selling price for the item AS7311 is derived from Price List 1, Price List 2, and Price List 3 as 10.8 US Dollars.
Since item CM1234 does not have any price list detail, the list price of the item is applied as a selling price of 10 US Dollars in the plan.
Financial metrics in the plan for item AS7311 is calculated based on the selling price derived from price lists associated to the supply plan.
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Slide notes
In this example, we have item KB-SS-PUMP106 for which the price is defined in two price lists in Pricing in SCM Cloud. In price list SN PRICE:LIST1, the
price is 98 US Dollars, and in price list SN PRICE LIST2, the price is 99 US Dollars.
After defining the price list and price details for the item, run the Collect Planning Data scheduled process, selecting price lists to collect the price list and
price list details to SCP Cloud.
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Slide notes
Create a supply plan and add price lists SN PRICE LIST1 and SN PRICE LIST2 in Manage Price Lists in plan option and enable the “Include When
Deriving Selling Price” check box.
Once the supply plan run is completed, we now see in the plan output in the Items view, and the Selling Price and Net Selling Price of the item is 98.5 US
Dollars. This is calculated from the price lists associated to the plan.
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Slide notes
Here is some additional information about Calculate Financial Metrics using Price List in a supply plan:
End demand value for the demands like Forecast and Manual Demand are computed by using the selling price of the item which is derived from price lists
associated to the plan.
End demand values are displayed in Supplies and Demands view, Exceptions view, and the Demand Fulfillment view in the supply plan output.
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Slide notes
In a sales and operations plan, the revenue calculation considers time varying price when a single price list is marked as both ‘Primary’ and ‘Include When
Deriving Selling Price’ in plan options. For example, Revenue in March 2030 is consistent with the value of multiplying the Constrained Forecast (200) and
Price (160) that is equal to 32,000.
The Selling Price value in the Items table is computed as the average of the time varying prices for an item in plan output.
If more than one price list is marked as ‘Include When Deriving Selling Price’ in plan options, then the computed average Selling Price is used in revenue
calculations instead of time varying price.
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Slide notes
Financial metrics measures like revenue and margin are also computed by referring the item selling price in the plan which is derived from price lists
associated to the supply plan.
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Slide notes
The planning process computes price measure values in the supply plan and sales and operations plan from the price list, which is set as Primary in the
plan option.
The planning process will not compute the time varying price measure values for a price list which is not set as primary and for which “Include When
Deriving Selling Price” is enabled.
The collection process from SCM Cloud converts the price list details for items with a pricing unit of measure other than the base unit of measure of the item
by referring the inter class unit of measure conversions.
Refer to 21D release readiness for the feature Support Dual Unit-of-Measure in Supply Planning for additional details of collection process converting price
details for items in secondary unit of measure.
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Slide 65 - Implementation Advice
Slide notes
In this section, we provide implementation considerations and setup instructions for the enhancements covered.
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Slide 66 - Calculate Financial Metrics Using a Price List Impact
Slide notes
The Calculate Financial Metrics Using a Price List feature is delivered ready to use for Supply Planning and Sales and Operations Planning with a small-
scale impact to your current business processes.
The feature can be accessed using the job roles Materials Planner, Supply Chain Planner and Sales and Operations Planner.
The business processes associated with this feature are Manage Supply Planning and Manage Sales and Operations Planning.
This concludes this presentation. Thank you for listening. You can easily pause and rewind if you require additional time to take in the detail.
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Adobe Captivate Wednesday, July 19, 2023

Slide 3 - Oracle Supply Chain Planning Cloud

Slide 5 - Calculate Financial Metrics Using a Price List

Slide 6 - Calculate Financial Metrics Using a Price List

Slide 65 - Implementation Advice

Slide 66 - Calculate Financial Metrics Using a Price List Impact

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