Assortment Planning

Chapter 3

Assortment Planning
The Merchandise Category Structure
Introducing Category Management
Increasingly diverse customer requirements, fierce competition, and a rapidly changing market are forcing retailers to drastically rethink their assortment strategies. Retailers must constantly reexamine assortments from different perspectives, as well as their position in the market based on local factors and different customer groups. Policy decisions such as these can only be taken if the person responsible for an assortment is allowed the right view on information relating to it: The right view is one that cuts across all the individual processes along the length of the value chain, allowing a “whole-category” approach to managing the assortment.

The Category Manager Workbench
The SAP Retail solution to the challenges of category management is the Category Manager Workbench. The Workbench is a springboard into all the functions that a Category Manager might need to use. It is a process-oriented environment that draws together all the activities involved in planning and controlling categories of merchandise, their costs, and their profitability. The Workbench menu is in three parts: q Master data Assortment planning and controlling activities are based on the relevant master data, which consists of merchandise categories, possible category views, various objects for defining the assortment structure, and profitability and evaluation structures. q Planning You always define planning data at the same level as actual data, ensuring that you are always comparing like with like. For example, you use the planning transactions to create sales plans, cost center plans, and sales and profit plans. q Controlling At operational level, the Category Manager can choose from a variety of reporting tools supplied by the Information System and geared toward particular retailing sectors or topics for analysis. The Category Manager can define

Planning and Control at the Levels You Decide

Direct Interface with Financial Accounting

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Assortment Planning

any level of detail for the analyses, down to merchandise category level or in individual cases, to article level. These reporting tools can provide answers to questions such as: m Which customer groups buy which articles? m Which articles are usually purchased together? m How many articles were sold between 4 pm and 5 pm in store n? You can use exception analyses to filter out unwanted information, as this type of reporting alerts the Category Manager to exceptional situations. The Category Manager also specifies the nature of the exceptions that are reported.

Demo Data Helps You Understand the CMW More Quickly

The Category Manager Workbench is structured differently in every company. One example of the way it can be structured, based on the IDES model company, is provided with your system. This example comes complete with process-oriented demo data, at merchandise category level, or for departments defined as cost centers.

Fig. 3-1: The Category Manager Workbench

What can I achieve by defining merchandise categories?
You can use the SAP Retail merchandise category hierarchy in many retail business processes.

Merchandise Categories Make Life Simpler

SAP Retail supports a merchandise category hierarchy throughout the article life cycle—from when an article is created to when it is sold and evaluated. When you create a merchandise category, you define a set of common data for its articles. When a new article is created, this data is displayed as a default. Each merchandise category also has certain characteristics, which you define yourself or which are inherited from a higher level in the hierarchy. These characteristics

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3-2: The Merchandise Category Hierarchy How can I reorganize my merchandise category hierarchy? There is a function called reclassification available for reorganization. An article can be listed automatically in a store or distribution center if the merchandise category to which it belongs is already listed there.Assortment Planning 3 are automatically transferred to articles. you can move articles or whole merchandise categories (including high-level merchandise categories) to new positions in the hierarchy. you can have the system change the merchandise category automatically in all open purchase orders and stock allocation documents. you can search on the merchandise category to find an article. you accidentally assign a new article to the wrong merchandise category and want to move it to the correct one. You can define characteristics such as size. or flavor. for example. If you move an article to a different merchandise category. color. You can post merchandise sales to a merchandise category rather than to individual articles. Using the reclassification function. Whatever logistics process you are carrying out in the system. You can define that the choice of distribution centers to supply stores is dependent on the merchandise category involved. Changes are Propagated in Open Documents. You can even use this function to correct mistakes if. such as one brand of shampoo in three different hair types.) You can have the system list the article in the stores or distribution centers that stock the new merchandise category. Automatic Relisting 3-3 . The merchandise category is also a very useful level of analysis that adds a new dimension to evaluations. This makes it easy to create records for articles that have some core features and a number of variable ones. You Can Post Sales to the Merchandise Category Fig. (This includes the automatic application of the new merchandise category’s conditions.

while brand-name goods. Can I manage inventory at merchandise category level? With SAP Retail you can manage your stock of an article on a value basis at almost any level: q At the merchandise category level q At the level of more aggregated (higher) merchandise categories q At the sub-merchandise-category level This reduces the volume of data that must be processed and means that you are not required to post sales to an individual article at the point of sale (POS) if this is not appropriate. You can then include the article in assortment lists. you want a few of the articles in this merchandise category (for example. or household goods often have a very long life cycle. The life cycle starts with the creation of the article master record and ends when this master record is no longer used. The Life-Cycle Factor Seasonal fashion items have a very short life cycle. You assign the article to a specific merchandise category and define requirements planning data. Finally. You would. for example. for example. The article is now part of the assortment. you have a store where you would like most of the merchandise to be managed on an exact article basis. you plan requirements for the article for the first time. 3-4 . you maintain the site master and assign a listing procedure. groceries. however. Next. Flexible Configuration of the Levels at Which Inventory is Managed You define your choice of inventory management in the site master record for the store or distribution center in question. prefer articles in certain merchandise categories (for example. Finally. SAP Retail supports this level of control. Defining Your Assortments The expected life of an article is a significant factor in the way it is used in assortments. What steps do I need to take to prepare an article for inclusion in an assortment? First you create a master record for the article in the system. fruit) to be posted to the merchandise category. If you have merchandise that is initially subject to high-level inventory management. You can use these differences to strategic effect when you build your assortments.3 Assortment Planning The system runs certain standard checks (to which you can add your own criteria) before reclassifying any objects. Checks like these ensure that the hierarchy remains consistent whatever changes you make to it. ensures that an article is always assigned to a merchandise category immediately above it in the hierarchy and never directly to a high-level merchandise category. you can switch to managing the inventory on an article basis once the merchandise has been counted in physical inventory. expensive tropical fruit) to be sold on an exact article basis nevertheless. For example. SAP Retail allows you to define a life cycle for each product. One of the standard reclassification checks.

consistent use throughout your company. It can assign articles to assortments automatically on the basis of your own assortment strategies by using existing parameters such as: q Merchandise category q Assortment grade q Characteristic values q Layout to match articles to assortments Automating the Assignment Fig. Before you can purchase this article in a store or distribution center or manage inventory for it. you can have the system carry out automatic checks against assortment rules as you go. or assign it for a specified period of time to an assortment assigned to the store. such as a promotion. There are two ways to do this: q You can assign the article manually to an assortment module created specially for the purposes of listing. The option of creating assortment modules manually allows you to group articles together for a specific purpose. In some instances. 3-3: The Assortment Concept 3-5 . or customer.Assortment Planning 3 What options are available for assigning assortments to stores or distribution centers? You have decided to include a new article in your assortment. distribution center. it is also appropriate to predict that the merchandise grouping will be relatively long-lived or find widespread. You can also let the system do the work for you. Even when creating modules manually. the system requires you to list it. q You can have the system use predefined rules to find the most suitable assortment (and therefore assortment user) for your article.

If you simply specify a generic article. even accidentally. Whichever type of module you choose.3 Assortment Planning Flexible Components also Support Apparel Styles To keep the process of maintaining assortments as flexible as possible. 3-4: Assortment Module Types The following types of assortment module are available: q Standard module These are normally used for merchandise that has a relatively long life cycle and a fairly uniform listing pattern (brand-name goods. 3-6 . If you attempt to list a variant on its own. q Promotion module These allow you to group articles together for the purposes of a promotion. you can enter both single and generic articles (master styles) as the module items. This also applies to structured articles (prepacks. displays) and their components. q Exclusion module The listings you specify in an exclusion module are blocked wherever they might have occurred. for example). This safety mechanism ensures that the assignments in question are not made. the system checks first to make sure that it has not already been listed in the module as part of its generic article. all its variants will be automatically included in the module too. sets. q Local module These modules apply specifically to a single assortment and are never assigned to more than one. or list individual variants (styles) of a generic article. SAP Retail provides an array of different types of assortment module for you to choose from. Fig.

When 3-7 . and any features that affect logistics processes (for example. Expecting the Unexpected Fig. they are also responsible for their presentation in the store. q List the articles retroactively if the user at goods receipt authorizes it. what it currently retails at. (The suppliers not only deliver these articles. From time to time. This list contains information on the availability of the merchandise. New articles in the assortment and articles that are in the process of being discontinued are immediately visible in the assortment list with special flags. Where. how it is to be presented. merchandise might be delivered to a store or distribution center in which it is not listed. 3-5: Assortment Lists How can I communicate with my stores about assortments? You can keep stores informed about the latest developments by sending them an assortment list. q Never list the articles retroactively.Assortment Planning 3 q Rack jobber module Rack jobber modules are groups of merchandise for which overall responsibility remains with the suppliers. but automatically as a byproduct of article maintenance. that the merchandise is seasonal).) q Profile module These modules are not created manually by a user. You can configure each site individually to handle this in one of three ways: q Always list the articles retroactively. Assortments: What.

the articles are arranged in the assortment list by department.3 Assortment Planning The system compiles each assortment list from listing data. There is a special component for processing promotional merchandise in its various forms. How does promotional merchandise figure in all this? Santa Claus is Coming to Town This depends on what the purpose of the promotion is. layout module. taking assortment list cycles into account. at the standard price. You can group articles according to assortment list type. When you are ready to send the list. a parameter that you use to define two cycles: q The intervals at which the system generates new full versions of the assortment list (containing all articles in the assortment) q The number of change versions (containing those articles where data has changed since the last assortment list) that can be generated before a new full version is required. To make things easier for your stores. and then activate them at a specified time. You can plan promotions in advance. you can get promotional merchandise into a store for a limited period only and not list it on a long-term basis in the assortment. Or. you can choose between generating a printout for your store or sending the list as an electronic message. and article sequence number. layout. This should correspond to the physical layout of the articles in-store. save them in the system. Fig 3-6: Seasonal and Non-Seasonal Merchandise 3-8 . An article might be on promotion during the product launch phase and retained in the assortment afterwards.

Assortment Planning 3 How does defining seasons help me monitor my merchandise? If you have seasonal merchandise. If you still want to discontinue the article. You can activate sales price conditions directly from a planning run. When it is time to stop selling the article. As the end of the season approaches and stock levels need to be reduced. If you choose assortment/article discontinuation. Safety Mechanisms to Prevent Data Inconsistencies 3-9 . or across the board throughout your company. a tool that enables you to plan price reductions for the season ahead and monitor the progress of the markdowns. It also uses built-in controls to ensure that margins are not endangered. SAP Retail sends out an instruction to that effect to the point of sale. If you choose vendor/article discontinuation. The report that generates this instruction is usually run in the background. Markdown Planning attempts to achieve the following simultaneously: q A minimum margin must be reached or exceeded. The system monitors these factors continuously throughout the season. the system issues an error message informing you of the problem and stops the discontinuation process. you simply make the necessary corrections and discontinuation is restarted automatically. q A minimum turnover rate must also be reached or exceeded. the article can still be sold but can no longer be ordered from this vendor. When one season ends. for which there are outstanding purchase orders. q Levels of remaining stock should be reduced to the minimum. you have access to SAP Retail Markdown Planning. You can discontinue an article for a particular vendor. in a particular assortment. You can also tailor the length of the season itself locally to the requirements of that particular region. you can activate the discontinuation function for selected merchandise. You can also adjust prices in phases to keep pace with (and further influence) the way a season is progressing. If you choose to discontinue the article throughout your company. the Early Warning System alerts you to the levels of stock remaining. the assortment users assigned to this assortment can no longer sell the article. Direct Intervention During the Season How easy is it to discontinue merchandise? When you wind up the season. or which you have planned to include in a promotion. all further operative processes will be blocked. If you attempt to discontinue an article for which stock still exists. the articles that were assigned to that season can either be flagged for deletion or assigned to a new season.

Multiple Layers of Data You can define an account group to reflect each of the functions that the business partner vendor can fulfill for your company (for example. supplier of the goods. you can maintain data to apply to a specific vendor subrange or site. local cheeses). You can even create more than one master record per vendor if you need to enter different master data (for example. another store stocking the same product in another region has to order from a supplier that is not local. 3-7: The Vendor Hierarchy Can I associate a vendor with a region? SAP Retail supports a link between stores and local suppliers. Furthermore. Since different departments in your company have different data requirements. You can enter vendor data centrally for all areas of your business. Fig. the vendor master. For example. This account group streamlines vendor processing. ordering address or recipient of the invoice).3 Assortment Planning Vendor Master Data What are the benefits of using SAP Retail Vendor Processing? In SAP Retail. so the link between them is always apparent. you can also maintain vendors with one specific view – accounting or purchasing. you need only enter the bare minimum of additional information when you process a vendor online. this allows for individual minimum order levels or terms of payment. You can assign a vendor more than one function. you can specify that while one store uses a local supplier for specialties of the region (for example. addresses) for different functions. 3-10 . you can store all your vendor-related information together in one place. The functions and master records are assigned to each other. Once it has been defined.

SAP Retail supports communication using EDI. Using EDI How does data defaulted from the vendor master help me maintain an article? When you maintain purchasing data in an article master record. How does SAP Retail simplify communications with my vendor? Retailers and vendors are constantly exchanging documents. The first step in implementing these methods of communication is to discuss with your vendor the hardware and software configurations required. In your own system. and More. before you order an article. It can be defined at central vendor master level or at purchasing organization. you can define what sort of messages are to be exchanged. If a store attempts to order from a vendor that is not assigned to its region. For example. and how. Traditional methods of transferring all the relevant data from the many paper documents to a retailing system have been labor-intensive. You can send purchase orders to your vendors electronically and your vendors can send you confirmations. including: q All the articles in a specified merchandise category q All the articles with particular characteristics q All the articles that are listed in a particular store or distribution center 3-11 . prone to error. To reduce these costs. Receiving Invoices. the articles in the vendor subrange adhesives can be ordered by a different purchasing group than the articles in the detergents vendor subrange. Defaults Simplify Article Maintenance Article Master Data How do I keep an overview as article numbers grow and grow? As retailers usually have a very large number of articles to deal with. with whom. or site level for that vendor. This means that you can always ensure that the appropriate purchasing group orders merchandise. Or. certain data is automatically defaulted from the vendor master record. In SAP Retail.Assortment Planning 3 You achieve this by assigning vendors and stores to supply regions. For example. These documents are automatically posted in SAP Retail upon receipt. Ordering. you can display all the potential suppliers that currently exist in the system so that you can compare their respective conditions. you can run a wide range of analyses and generate lists of information relating to your merchandise. and invoices by the same means. You can call up a number of such merchandise-related lists. the planned delivery time. shipping notifications. or the units that the article can be measured in. the system issues a message warning you of the mismatch. You can also make supply regions a factor in automatic vendor selection. you can call up a list of all the articles supplied by one vendor. and costly. You can also have your vendors send you product information through EDI. efficient reporting tools are essential. vendor subrange. This data can include the purchasing group.

most of the data already exists. You can manage them at different inventory management levels either at the level of the whole structured article or at the level of its components. The generic article has its own master record. for the generic article itself. 3-12 . for example. in their size). you break it down into its components to post sales to the individual articles. or that are handled differently in different departments. including: q Single article q Generic article and variants (master style and styles) The generic article is an umbrella form for articles that only differ from each other in certain characteristics (for example. You have a number of different article categories to choose from when you define your merchandise in the system. This is available in purchase order processing. when you are entering the quantities of merchandise you want to order. SAP Retail finds candidates for you by recognizing articles that have not been used for a long time. you buy a display as one article (put together by the vendor) and manage it as one article through the distribution center. Most logistics processes provide a fast entry facility for variants. In the store. You do not need to remember exactly which articles are due for discontinuation. Generic articles and structured articles are fully supported in all logistics processes. and prepack You can create these in SAP Retail as structured articles. to which the master records for each of the variants refer. display. Structured Articles are Supported in All Logistics Processes q Set. A few final checks are carried out and the article is archived.3 Assortment Planning Even when you have powerful reporting tools. you are not restricted to one form of article – the single article that you simply buy and then sell. When you create the individual variants. For example. SAP Retail helps you discontinue merchandise that you no longer need. that are combined. it makes sense to keep the number of articles in your system manageable. The advantage of generic articles is that you only have to enter the core master data once. What type of article can I define? In SAP Retail. You can also create articles that are not sold in the form in which they were purchased.

a vendor master record. q You can maintain data at an aggregated level.Assortment Planning 3 Fig. logistics data valid for an article in a store can also be stored at a higher level. For example. or another article master record. Data shared by a number of variants can be maintained at generic article level. If you maintain this reference data from the start. for all the stores in that distribution chain. 3-8: Different Views on Article Data What options are available for mass maintenance? The article master contains all the accumulated information on every article that your company procures. Data that Differs from the Mass is Instantly Recognizable 3-13 . or sells. you can use profiles representing several fields to set default data. manufactures. Large volumes of data have to be maintained. For your convenience. stores. including the following: q You can copy default data from a merchandise category. q In the requirements planning and forecast functions. changes that are made at the higher level are automatically updated at lower levels. it makes a big difference in the speed and ease with which you create new article master records. but only if this does not overwrite different data that has already been maintained there. You can call up all the data that differs from the norm in a detailed overview. SAP Retail provides a variety of reliable ways to update the system with mass data. In both instances.

you can retain a reference to the old number. You can turn off fields that you do not need and group fields together to meet your own special requirements. notably all types of EAN (short EAN. Tickets and Additionals Fig 3-9: Labels and Tickets What are tickets and additionals and why should I use them? You assign additionals to an article to increase the effectiveness of its presentation to your customers. Additionals is an umbrella term used in SAP Retail to describe tickets or price labels. even when special EANs are involved. The article master provides a special field where you can record the old number. clothes hangers. It gives you an overview of all the data in an article master record in a form that suits you. If you want the system to generate article numbers. Can I keep the article numbers I have used up to now? Many retailers want to continue using their old article numbers in SAP Retail. and services such as arranging clothing for display on hangers.3 Assortment Planning Customize Your Article Master The SAP Retail article master has other user-friendly features too. This allows you to react efficiently. swing tickets. You can lay out your article master screen to your own specifications. you can use the same numbers as you currently use. care labels. 3-14 . They also want to retain the legacy system’s template for creating these article numbers. vendor’s EAN). One EAN can be flagged so that it is always automatically entered in EDI records intended for communicating with a particular vendor. You can also have SAP Retail display the numbers in a format that suits you. Since you can assign your own numbers to article master records in SAP Retail. security tags. The SAP Retail article master supports other article numbers.

goods receipt). q Affixing in the regional distribution center In a regional distribution center. A Range of Options for Affixing Tickets Fig 3-10: Process Flow in Ticketing 3-15 . You can define events that automatically cause the system to generate the additional (for example. You can have special packaging made with private labels that have your company’s image or that indicate which merchandise category the merchandise belongs to in the distribution chain. q Affixing in the central distribution center In a central distribution center. You can attach gum tabs and swing tickets. goods receipts generate purchase orders for tickets. This merchandise can be promotional or part of your standard assortment. You assign master records for additionals to the merchandise to which they apply. q Printing at head office and affixing in-store Data for posters is sent to the stores using the assortment list. Brand Management Are additionals easy to use? The central control parameter is the procedure for additionals. This is where you define whether data for the additional should appear in the assortment list and the events that cause the additional to be generated. For example: q Printing and affixing in-store Data for shelf-edge labels is sent to the stores using the assortment list.Assortment Planning 3 Each additional has its own master record and its data can be transmitted electronically. goods receipts generate purchase orders for tickets.

help to reduce the merchandise costs that affect your sales price calculations. the additionals are sent to your vendor. Pricing Your Merchandise According to What the Market will Bear The Pricing component is flexible enough to accommodate considerations (such as competition in your market segment) that affect the margin that you can define and the profit you can expect to make on your merchandise. These parameters can include the basic purchase price (cost) of the merchandise (the vendor’s base price or the distribution center’s transfer price) and a planned markup. When you select the articles. If the cost of an article changes. as specified by you. Once printed. you can also limit the selection to apply to a specific merchandise category. 3-16 . Pricing allows you to choose whether the margin should stay the same (resulting in an adjusted retail price) or whether to sell the merchandise at the same price as before (with adjusted margins). who then negotiates the details of the order with your vendor. the vendor requests a quotation from a printer. such as meeting regional needs and optimizing logistics processes. who affixes them to your merchandise for you. vendor (external supplier or distribution center). You can specify the parameters on the basis of which you want the system to calculate the prices of new articles.3 Assortment Planning Just-In-Time Ticketing Once the purchase order has been created and sent to the vendor. where costs spiral with each new link in the chain. production can begin. Pricing reflects the stresses placed on the traditional value chain. Efficient Consumer Response methods. vendor subrange. and season. Pricing – Where do I start? The first things to specify when you calculate sales prices are the articles for which you want to calculate prices and the organizational levels at which these prices are to apply. Pricing The Pricing component is a dual-purpose tool that can calculate both retail-sector sales prices (for distribution chains and stores) and wholesale-sector prices (for distribution chains and price lists) for you. you can select all the articles beginning with A bought from vendor 1000 and belonging to the merchandise category Beverages. Using the information you have provided in the purchase order about the additional. For example.

you can have the system calculate a different price for one store than for the rest of its distribution chain. for example. 3-11: Selecting Records for Calculating Sales Prices You can calculate prices at distribution chain level. the basic purchase price or vendor discounts). (A price list in the SAP Retail system is a group of customers maintained in the customer master. For example. article. at site or site group level. and date determine the final price for the customer. sales prices are usually calculated on the basis of the purchase price. purchase order quantity. the variables customer. or at price list level. The purchase price is determined using the purchase price calculation schema on the basis of condition types that affect pricing (for example.Assortment Planning 3 Fig. If. by entering both the distribution chain and the store on the selection screen. Conditions are sets of criteria affecting price calculations. The system evaluates these when determining the source of supply. a customer orders a certain quantity of an article on a particular day. Other parameters that are relevant to pricing are the regular vendor indicator set in the vendor master and the source of supply defined in the article master.) You can also calculate separate prices for a specific organizational unit within a group. Pricing Levels Does Pricing allow me to monitor all the factors that might influence my pricing policy? In SAP Retail. All these variables are stored in the system as condition records. Conditions and the Calculation Schema 3-17 .

3 Assortment Planning The R/3 Condition Technique has four main elements. You do not have to use the sales price calculation function to change prices. which represents the type of price factor q Condition table. You can switch off price point rounding. including: q Condition type. You also have the option of calculating or changing sales prices in the background. You can have the system calculate a percentage price change (such as a price reduction for seasonal merchandise). you can add together discounts that are defined for both an article and its merchandise category. which comprises the condition records that contain the condition data you have entered in the system q Access sequence. as you can make these changes (and activate them 3-18 . (Conditions can also be used cumulatively. but also to change the prices of existing articles. which defines the condition types that are allowed and the sequence in which they are to be analyzed Fig. which defines the order in which the system searches condition tables for a valid price.) q Calculation schema. When can I change prices? Several Ways to Change a Price You can use the sales price calculation function not only to calculate prices for new articles. if necessary. 3-12: Access Sequences You can also include the factor of a competitor’s price in your price calculation to ensure that you keep within the currently acceptable price range for your market segment. You can also reverse sales price calculations. The system calculates the new sales price by applying a markup or markdown specified by you to the existing price. You can calculate a sales price and save the results in a document generated specifically in readiness for releasing the price at a later date.

You can also design your own Pricing screen layout and save it in a list variant. a calculated sales price of $ 37. The first step in a two-step sales price calculation is calculating the prices at which the distribution centers pass on the merchandise to the stores in various distribution chains. Both planned markups and markdowns can be taken into account in Pricing.99 or down to $37.50. 3-13: Markups as a Factor in Sales Price Calculation 3-19 . the system automatically rounds the raw sales price calculated on the basis of the calculation schema to a price point. margins. You can define for each variant whether it inherits the generic article’s price or has its own price. A Pricing Screen Tailored to Your Needs Prices Calculated with the Consumer in Mind Special Benefits in the Fashion Sector Fig. or a list of all the sites that are allowed to stock a particular article. if a vendor is to supply a store direct. Price points are usually prices that have a familiar feel to consumers. including prices. If you choose to calculate a sales price using price point rounding. These distribution center transfer -prices then form the basis for the second step – calculating the sales prices for stores or wholesale customers.Assortment Planning 3 later) in the article master. if the store is to be supplied by an intermediary (your distribution center). and promotion announcement status). What options do I have in Pricing? You have the option of changing parameters (such as the margin) in an interactive mode so that you can see the results of the sales price calculation immediately. You plan markups and then trigger them at a particular time. You can call up a list of all the promotional merchandise assigned to a store or distribution center. You enter markdowns individually when you need them. a listing status. For example. or in two steps. The system displays a variety of data for each article. for example. Retailers that specialize in fashion are served especially well in Pricing since it supports generic articles and variants (otherwise known as master styles and styles).61 would be rounded up to $37. and a number of processing status levels (an overall processing status. You can calculate prices either in a single step.

every site has a customer master record too. You can display a price overview. Promotion prices are automatically downloaded to the point of sale on the date they become valid and are automatically reset to the standard prices when the promotion has finished. you can do this either: q Using the point-of-sale system q In a user exit The Customer Relationship The customer is a business partner to whom you sell merchandise. q You can specify a retail price of zero. Customers fall into the following categories in SAP Retail: q Internal customers (own sites) q External customers (with customer master record) q Nonidentifiable consumers (without customer master record) Since every site can receive deliveries.3 Assortment Planning How can I avoid carrying out unnecessary sales price (re-)calculations? If you made changes to the purchase price (cost) of an article or the supply source determination parameters named above. q The indices of the price calculation documents. If you want to assign the discount item to the regular item. The resulting prices remain active for the duration of the promotion. whether it be creating sales orders. SAP Retail also enables a seamless switch from standard prices to promotion prices and back again. or billing documents. In all sorts of business transactions. You can also deal with free-good discounts in one of two ways: The POS Recognizes Promotion Prices q You can specify a discount of 100%. The work list function tracks two main types of data: q Changes to conditions or supply sources. Sales notched up at the point of sale by your site’s nonidentifiable consumers are posted to a second customer master record. in which you can see a list of sales prices created in the sales price calculation function (or in the article master) side by side with the relevant promotion prices. you will want to check whether the sales price that has already been calculated for the article needs to be adjusted accordingly. the system automatically updates the relevant 3-20 . How does customer master data help me with my day-to-day business? Each customer has a customer master record that stores information on the customer. deliveries. The Pricing component provides a work list function that finds all changes that have been made to parameters that affect pricing and then places all the affected sales price calculations in a work list for you to process. How easy is it to manage promotion prices? You can assign sales deals or other sales arrangements to an SAP Retail promotion.

You never have to enter the same master data twice. If the address of one of your customers changes. Payments made using a payment card (such as a debit or credit card) are passed on to Financial Accounting through Billing. If the customer is known to the store. for example. Can I also get statistics on my consumers long after sales data was posted? The Information System contains statistics passed on from the Billing component. If the customer is anonymous to the store. q Aggregated to the level of the number of articles sold per store You choose this option if you do not need detailed information on all sales transactions to be transmitted to SAP Retail. You can also have the info structures updated directly in the Information System by data received at the point-of-sale interface (inbound). Sales data can be transmitted to SAP Retail at two different levels of detail: q Basket analysis Every single sales transaction is communicated to SAP Retail. 3-21 . you only need to make the change in one place in your system. This might be appropriate if you wish to analyze the spending patterns of your customers in order to be able to award loyalty bonuses. the customer number is transmitted to SAP Retail. And what do I do with my consumer data? Sales transaction data is captured at the POS when a customer in a store buys merchandise using any of the accepted means of payment. This data is also used in the Financial Accounting component. Storing customer data in one place and sharing it between applications saves you time and effort. This option allows you to analyze the details of all your individual sales transactions. All you do is run a report that compiles all the settlement data and sends it to the payment card company.Assortment Planning 3 fields with default data taken from the customer master. the system uses a default customer number to update the data. Financial Accounting also keeps a record of all the data relating to the payment card transactions. Open items accumulate in the appropriate account in preparation for settling up with the payment card company in question. just as you would expect with other means of payment. complete with full details.