711 bpp demand procurement

EHP3 for SAP ERP 6.0

September 2008

English

721: Demand-driven Procurement

SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermany

Business Process Documentation

SAP Best Practices 721: Demand-driven Procurement : BPD

Copyright

Copyright 2008 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.

IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, xSeries, zSeries, System i, System i5, System p, System p5, System x, System z, System z9, z/OS, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, Informix, i5/OS, POWER, POWER5, POWER5+, OpenPower and PowerPC are trademarks or registered trademarks of IBM Corporation.

Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.

Oracle is a registered trademark of Oracle Corporation.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.

Java is a registered trademark of Sun Microsystems, Inc.

JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.

MaxDB is a trademark of MySQL AB, Sweden.

SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, PartnerEdge, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

© SAP AG of 157


Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths and options.

Cross-references to other documentation.

Example text Emphasized words or phrases in body text, titles of graphics and tables.

EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE.

Example text Screen output. This includes file and directory names and their paths, messages, source code, names of variables and parameters as well as names of installation, upgrade and database tools.

EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the ENTER key.

Example text Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation.

<Example text> Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.

© SAP AG of 157


Abbreviations

R Required entry field

(used in the end-user procedures)

O Optional entry field


C Conditional field


© SAP AG of 157


Contents

1 Purpose........................................................................................................................................ 8

2 Prerequisites................................................................................................................................ 9

2.1 Master Data and Organizational Data...................................................................................9

2.2 Check User Parameters......................................................................................................11

2.3 Roles................................................................................................................................... 13

2.4 Article Master Data..............................................................................................................13

2.5 Initial Stock.......................................................................................................................... 14

2.6 Forecast.............................................................................................................................. 15

2.7 Order Optimizing.................................................................................................................15

2.8 Investment Buying...............................................................................................................15

2.9 Load Building....................................................................................................................... 15

2.10 Goods receipt capacity check..........................................................................................16

3 Requirement Planning................................................................................................................19

3.1 Process Overview Table.....................................................................................................19

3.2 MRP Procedure...................................................................................................................22

3.3 Variant 1: Automatic Reorder Point Planning......................................................................23

3.3.1 The Individual Forecast................................................................................................23

3.4 Variant 2: Time-Phased Planning........................................................................................25


3.5 Variant 3: Time-Phased Planning with Reorder Point Planning...........................................27

3.5.1 Carry Out the Individual Forecast (from the Article Master).........................................27

3.5.2 Alternative: Carrying Out the Individual Forecast (from the Menu)...............................30

3.6 Variant 4: Forecast-Based Planning....................................................................................31


3.7 Optional: Reprocess the Forecast Results..........................................................................33

3.8 Planning Run....................................................................................................................... 34

3.8.1 Optional: Planning File.................................................................................................34

3.8.2 Carry Out Single-Item, Single-Level Planning..............................................................36

3.8.3 Optional: Evaluating the Planning Results...................................................................38

3.8.4 Convert the Purchase Requisition to a Purchase Order...............................................42

3.8.5 Goods Receipt in the Distribution Center.....................................................................44

4 Supply Source Determination.....................................................................................................45


© SAP AG of 157


4.2 Supply Source 1: Quota Arrangement.................................................................................47

4.3 Supply Source 2: Source List..............................................................................................47

4.3.1 Maintain Source List.....................................................................................................47

4.3.2 Create Purchase Requisition (Automatic Supply Source Determination).....................49

4.3.3 Purchase Order With Reference to the Purchase Requisition......................................51


4.4 Supply Source 3: Purchasing Info Record...........................................................................53

4.4.1 Display the Purchasing Info Record.............................................................................53

4.4.2 Purchase Requisition (Assign Supply Source).............................................................55

4.4.3 Automatic Conversion of the Purchase Requisition to a Purchase Order....................57


5 Contract Processing................................................................................................................... 60


5.2 Supply Source 4: Outline Agreements (Contracts)..............................................................61

5.2.1 Create Contract............................................................................................................61

5.2.2 Create Purchase Requisition (Assign Supply Source).................................................63

5.2.3 Release Order for the Contract....................................................................................65

5.2.4 Display Release Documentation..................................................................................66


6 Purchase Order Processing.......................................................................................................68


6.2 Plan Workbench..................................................................................................................74

6.2.1 Check the Stock...........................................................................................................74

6.2.2 Check Consumption and Forecast Values...................................................................76

6.2.3 Create Purchase Orders via eCATT............................................................................78

6.2.4 Online Requirements Planning.....................................................................................79

6.2.5 Order Cancellation.......................................................................................................81

6.2.6 Order Release..............................................................................................................85


6.3 Order Optimizing.................................................................................................................89

6.3.1 Quantity Optimizing......................................................................................................90

6.3.2 Investment Buying........................................................................................................97

6.3.3 Load Building.............................................................................................................128

6.3.4 Goods receipt capacity check....................................................................................140

7 Purchase Order Monitoring......................................................................................................144

7.1 Requirements Planning Workbench..................................................................................144

© SAP AG of 157


7.2 Display Open Purchase Orders.........................................................................................144

7.3 Display Status Data for the Purchase Order Header.........................................................145

7.4 Display the Purchase Order History..................................................................................146

8 Vendor Evaluation.................................................................................................................... 147

8.1 Initial Maintenance of Vendor Evaluation..........................................................................147

8.2 Automatic Reevaluation....................................................................................................148

8.3 Maintain the Vendor Evaluation Manually.........................................................................150

8.4 Analyses Relating to Vendor Evaluation...........................................................................152

8.4.1 Comparison of Evaluations........................................................................................152

8.4.2 Rank Lists.................................................................................................................. 154

8.4.3 Execute an Evaluation of the Article/Merchandise Category......................................155

© SAP AG of 157


Scenario Demand-driven Procurement

1 PurposeThe "Demand-driven Procurement" scenario begins with the required planning steps. The forecasting processes (also with different historical data) and four different consumption-based MRP procedures are then explained in detail.

The supply source determination schema in SAP R/3 is then outlined in brief and the various options explained. Purchase order processing begins with the Planning Workbench, which is a working environment for stock planners. In this process, you will also be shown how to carry out quantity optimizing when converting a purchase requisition to a purchase order, the order cancellation function, and the automatic purchase order block and release function. You will also be shown how to carry out manual optimization using the Planning Workbench, which is based on a restriction profile.

Order optimizing comprises the following process steps: quantity optimizing, investment buying, load building and goods receipt capacity check.

As the person responsible for purchasing, you want to gain an overview of your vendors and purchasing organizations from time to time. The section on purchase order monitoring shows you how to do this. The final step, vendor evaluation, not only helps you optimize article procurement, but also makes it easier for you to choose sources of supply and continuously monitor existing supply relationships. Providing detailed information about the best prices and terms of payment and delivery, this process helps you maintain your competitive edge.

© SAP AG of 157


2 Prerequisites

2.1 Master Data and Organizational DataDefault Values

Essential master and organizational data was created in your ERP system in the implementation phase, such as the data that reflects the organizational structure of your company and master data that suits its operational focus, for example, master data for materials, vendors, and customers.

The business process is enabled with this organization-specific master data, examples are provided in the next section.

Additional Default Values

You can test the scenario with other SAP Best Practices default values that have the same characteristics.

Check your SAP ECC system to find out which other material master data exists.

Using Your Own Master Data

You can also use customized values for any material or organizational data for which you have created master data. For more information on how to create master data, see the Master Data Procedures documentation.

Use the following master data in the process steps described in this document:

FASHION HARD GOODS FOOD

ARTICLE 1 TIME-PHASED PLANNING W. REORDER POINT /SUPPLY SOURCE DET.

PCS-04-ART141

Variant:

PCS-04-ART141001

to

PCS-04-ART141008

PCS-04-MRP441 PCS-04-MRP201

VENDOR 1 PCS-V141 PCS-V441 PCS-V201

© SAP AG of 157



ARTICLE 2TIME-PHASED PLANNING

PCS-01-ART116

Variant:

PCS-01-ART116001

to

PCS-01-ART116008

PCS-01-ART413 PCS-01-ART203


ARTICLE 3AUTO. REORDER POINT

PCS-03-ART141

Variant:

PCS-03-ART141001

to

PCS-03-ART141008



ARTICLE 4FORECAST-BASED PLANNING

PCS-02-ART116

Variant:

PCS-02-ART116001

to

PCS-02-ART116008



ARTICLE 5 SOURCE LIST

PCS-01-CON142 PCS-03-CON431 PCS-03-CON201



ARTICLE 6CONTRACTS

PCS-01-CON141 PCS-01-CON431 PCS-01-CON201


ARTICLE 7 INVESTMENT BUY

PCS-01-INV141 PCS-01-INV421 PCS-01-INV331


ARTICLE 8PLANNING WORKBENCHQUANTITY OPTIMIZINGLOAD BUILDING

PCS-04-ORB142 PCS-04-ORB431 PCS-04-ORB201


© SAP AG of 157



CATT 1PLANNING WORKBENCH

Z_US_CREATE_ORDERS

Z_US_CREATE_ORDERS

Z_US_CREATE_ORDERS

CATT 2VENDOR EVALUATION

Z_US_VENDOR_EVALUATION




MERCH.CAT. MC11300 MC14000 MC13000

MERCH.CAT.1 1 MC11310 MC14100 MC13200

MERCH.CAT.1 2 MC11320 MC14200 MC13300

MERCH.CATEGORY 1 MC11311 MC14101 MC13201





2.2 Check User Parameters

UseIn this step, check the user parameters and the default settings.

Procedure

1. On the toolbar, choose Customizing of Local Layout (Alt+F12) button, and select Options .In the Options screen dialog box, choose the Expert tab.

2. Make sure the field: Show keys in All Dropdown Lists, is selected.

3. Choose OK.

4. Access the activity using one of the following navigation options:

Transaction Code SU3

Toolbar Menu System User Profile Own Data

© SAP AG of 157


5. On Defaults tab, make the following entries:

Field name Description R/O/C User actions and values

Note

Start menu R W10T Fixed Values

Decimal Notation R 1,234,567.89 Fixed Values

Date Format R 2 MM/DD/YYYY Fixed Values

6. Save the entries.

© SAP AG of 157


2.3 Roles

UseThe following roles must have already been installed to test this scenario in the SAP Netweaver Business Client (NWBC). The roles in this Business Process Process Documentation must be assigned to the user or users testing this scenario. You only need these roles if you are using the NWBC interface. You do not need these roles if you are using the standard SAP GUI.

PrerequisitesThe business roles have been assigned to the user who is testing this scenario.

Business Role Technical Name Process Step

Retail Non-Seasonal Purchaser SAP_BP_RT_NONSEASBUYER-S

Retail Non-Seasonal Purchaser - Power User

SAP_BP_RT_NONSEASBUYER-K

Retail Non-Seasonal Purchase - Manager

SAP_BP_RT_NONSEASBUYER-E

Retail Replenishment Planner SAP_BP_RT_REPLENISHPLANNER-S

Retail Replenishment Planner - Power User

SAP_BP_RT_REPLENISHPLANNER-K

Retail Masterdata Manager SAP_BP_RT_MASTERDATA-S

Retail Warehouse Clerk SAP_BP_RT_WAREHOUSESPECIAL-S

2.4 Article Master DataYou have to maintain the article master data:

Purchasing

Conditions

Minimum purchase order quantity

Rounding profile

You also have to maintain the vendor master data:

Vendor schema group

Restriction profile

© SAP AG of 157


2.5 Initial Stock Initial Stock for Requirements Planning

The following stock situation should exist in VZ01. Check the article stocks using transaction RWBE (NWBC: Non-Seasonal Purchase Management Stock Stock Overview).

Combination: Time-Phased Requirements Planning with Reorder Point Planning

Initial article stock: >Article 1 50 EA

Time-Phased Requirements Planning


Automatic Reorder Point Planning


Forecast-Based Planning


ProcedureIf the stock is different, you can correct it as follows:

1. Access the transaction using one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP Menu Logistics Retailing Merchandise logistics Goods Receipt Other Goods Receipt

Transaction code MB1C

Option 2: SAP NetWeaver Business Client (SAP NWBC)

Business role (name) SAP_BP_RT_NONSEASBUYER-K (Retail Non-Seasonal Purchaser - Power User)

Business role menu Non-Seasonal Purchase Management Planning Other Goods Receipt

2. On the ‘Enter Other Goods Receipts: Initial’ Screen make the following entries.

Field name Description User action and values Note

Movement type '501' Receipt w/o purchase order into warehouse

'502' Receipt w/o purchase order into warehouse – reversal

Site VZ01

Storage location 1001

© SAP AG of 157


Choose Enter.

Article <Article>

Quantity

UnE EA

3. Choose Post.

4. Choose Back twice.

2.6 ForecastTo carry out a forecast, you first have to maintain the forecast parameters for the article in the article master (see Customizing Guide). You also have to define the frequency with which the forecast is to be carried out and how the forecast model is to be chosen (manually by the stock planner or automatically by the system).

You also have to define the sites for which you want to carry out requirements planning (see Customizing Guide).

You must carry out the process right up to goods receipt; otherwise you will not be able to carry out subsequent processes. When purchase orders remain in the system, they prevent purchase requisitions from being generated in the MRP run.

2.7 Order OptimizingYou have to maintain the dimensions (weight, volume) in the basic data for the articles. You also have to list the articles in the distribution center. Enter a purchase price for your vendor and set the 'Variable order unit' field to active (1). Check whether the 'Automatic purchase order allowed' indicator in the Logistics view for your distribution center is set.

2.8 Investment BuyingTo call up the Investment Buying transaction, you must be authorized to create a purchase order or purchase requisition.

You must have defined the relevant purchase condition types in Customizing. The system takes into account any changes to the condition types during Investment Buying and, if necessary, triggers a procurement transaction.

SAP Note 519685 must be implemented.

2.9 Load BuildingAutomatic load building is available as of Release 4.6B with transaction WLB13, which replaces transaction WLB3.

Recommendations for load building: Only start the program as a batch run at non-productive times when the system load is low (at night,

© SAP AG of 157


for example), since large volumes of data can result in high workloads. Only use automatic load building in exceptional situations as an online process and, even then, only with restricted options on the selection screen (for example, when implementing load building; taking into account new load building combinations).

Tools: You can use the load building analysis tool to check all load building-relevant entries for articles, plants, and vendors so that the you can include an additional vendor, plant, or article. To keep sources of error to a minimum, we recommend you use the tool before the first load building run.

2.10 Goods receipt capacity checkAs SAP ECC 6.0, Enterprise Extension Retail, Enhancement Package 2 (EA-RET 602) you can use the Retail, Purchasing (ISR_RETAIL_BUYING) business function. With this business function, you can carry out a capacity check for the goods receipt.

Up to now, there was no check for sufficient capacity for the delivery date of a planned delivery in the goods receipt area of a warehouse. If the goods are delivered to a warehouse door that does not have any free capacity, there can be a bottleneck in the goods receipt area of a warehouse. At the same time, another warehouse door might have enough capacity.

The goods receipt capacity check has the following advantages for the retailer and vendor:

Taking the goods receipt capacity into account prevents potential bottlenecks.

The vendor's delivery date planning utilizes the capacity of the retailer's goods receipt areas.

The vendor can schedule the deliveries better since the planned time window for inbound deliveries is binding.

ProcedurePlease check if a logistic group is assigned in the article master data. With the logistic group you can group materials that are comparable with regard to their handling. You should also check the vendor assignment and you have to define the resources.



SAP Menu Logistics Retailing Master Data Article Data Article Change

Transaction code MM42


Business role (name) SAP_BP_RT_NONSEASBUYER-S (Retail Non-Seasonal Purchaser)

Business role menu Non-Seasonal Purchase Management Item Management Change Article

© SAP AG of 157


2. On the ‘Change Article’ screen, check the following entries.


Article PCS-01-ART116 (Fashion)

PCS-01-ART413 (Hard goods)

PCS-01-ART203(Food)

View Logistics: Distribution center

Choose Enter.

Logistic Group Physical Inventory/ goods issue/ picking/ shipping

NORM (Hardgoods and Food)

HANG (Fashion)

Choose one group

3. Choose Enter.

4. Choose Save and Back.



SAP Menu Logistics Store Retailing Purchasing Purchase Order Order Optimizing Goods Receipt Capacity Check Vendor Assignment

Transaction code WGRC1


Business role (name) SAP_BP_RT_WAREHOUSESPECIAL-S (Retail Warehouse Clerk)

Business role menu Warehouse Management Warehousing-Inbound Vendor Assignment

6. On the ‘Change Article’ screen, make the following entries.


Vendor PCS-V111 (Fashion)

PCS-V411 (Hard goods)

PCS-V201 (Food)

Site VZ01

Storage Location 1001

Year 2008 (Current year)

© SAP AG of 157


7. Choose Execute.

8. Choose Appended Line .

9. Add weekday (use F4),fF. e. 3 = Wednesday

10. Add time, f. e. 08:30:00.

11. Choose Save.



SAP Menu Logistics Store Retailing Purchasing Purchase Order Order Optimizing Goods Receipt Capacity Check Resources

Transaction code WGRC2


Business role (name) SAP_BP_RT_WAREHOUSESPECIAL-S (Retail Warehouse Clerk)

Business role menu Warehouse Management Warehouse-Inbound Resources

13. Enter at selection screen:


Site VZ01


Door for Warehouse 001

Year 2008 (Current year)

14. Press Execute.

15. Enter the resources: Time in minutes per hour’s f. e. 60 minutes from 08:00 to 17:00 (one person).

16. Choose Save.

© SAP AG of 157


3 Requirement PlanningA forecast of future requirements based on past consumption figures are needed to support requirements planning in certain MRP procedures. In some cases, the forecast is compulsory, while in others, it is used to provide additional, optional information. The forecast is carried out before requirements are planned.

3.1 Process Overview TableStep Step Name External

Process Reference

Business Condition

Role Transaction Code

Expected Results

3.2 MRP Procedure

3.3 Variant 1: Automatic Reorder Point Planning

3.3.1 The Individual Forecast

Retail Non-Seasonal Purchaser

MM42 The initialization indicator is set automatically for an initial forecast.

3.4 Variant 2: Time-Phased Planning



MM42

3.5 Variant 3: Time-Phased Planning with Reorder Point Planning

3.5.1 Carry Out the Individual Forecast (from the Article


MM42 The initialization indicator is set automatically for an initial forecast. It defines

© SAP AG of 157


Step Step Name External Process Reference

Business Condition


Expected Results

Master) that the system initializes models during forecasting and calculates the parameters required for a forecast model, such as the basic value, trend value, and so on.

3.5.2 Alternative: Carrying Out the Individual Forecast (from the Menu)

Retail Replenishment Planner

MP30

3.6 Variant 4: Forecast-Based Planning



MM42

3.7 Optional: Reprocess the Forecast Results


MP33 Standard PO created under the number Make a note of the number.

3.8 Planning Run

3.8.1 Optional: Planning File Retail Replenishment Planner

MD21 Source list changed.

3.8.2 Carry Out Single-Item, Single-Level Planning


MD03

3.8.3 Optional: Evaluating the Planning Results

© SAP AG of 157



Business Condition


Expected Results

3.8.3.1 RP List Retail Replenishment Planner

MD05

3.8.3.2 Current Stock/Requirements List


MD04

3.8.4 Convert the Purchase Requisition to a Purchase Order


MD04 Standard PO created under the number Make a note of the number.

3.8.5 Goods Receipt in the Distribution Center


MB01

© SAP AG of 157


3.2 MRP ProcedureRequirements planning components in a computer-based retailing system must be able to procure specific goods in accordance with demand. The integrated concept of the SAP R/3 System ensures that users always have the very latest sales data. Alongside article-specific inventory management, the SAP R/3 System provides an accurate data basis for using the comprehensive range of requirements planning methods. The main task in requirements planning is to monitor stocks and, in particular, generate automatic order proposals for purchasing. This is achieved by means of various MRP procedures.

The following MRP procedures are available:

Replenishment planning

Manual planning by visual inspection

Stock allocation

Consumption-based planning

Consumption-based planning is the most common procedure used in retail. In consumption-based planning, future requirements are planned on the basis of past consumption values. In retail, those responsible for requirements planning must ensure that the goods are available for the recipients and consumers. This is achieved by means of various MRP procedures. Requirement quantities must be procured on time. The following activities are carried out:

Stock levels are monitored, that is, you determine which quantity of which articles are required by what deadline.

Sales and purchase orders from the recipient are taken into account.

Forecasts are created.

Requirement quantities are determined.

Importantly, purchase orders are generated automatically for purchasing.

The stock planner defines a suitable forecasting, MRP, and lot-sizing procedure for specific articles. The requirements calculation is normally carried out as a 'net change planning' procedure. Only those articles whose requirement or stock situation has changed are planned. All company processes that are relevant to requirements planning are taken into account. The system automatically highlights critical articles and exceptional situations, which relieves the stock planner of routine monitoring tasks. Depending on the creation indicator, the system creates RP lists (which contain the planning result for the article) during a planning run. The RP list always shows the future requirement and stock situation at the time the last planning run was carried out, and stock planners carry out their work on the basis of the information provided in the RP list. A purchase requisition is generated automatically on the basis of the requirements calculated by the system. The requirements planning result generated by the system can be adjusted manually by the stock planner. The purchase requisition is finally converted to a purchase order, which can then be forwarded to the vendor.

Four different consumption-based planning procedures are available:

1. Automatic reorder point planning

2. Time-phased planning

3. Combination: time-phased planning with reorder point planning

4. Forecast-based planning

© SAP AG of 157


3.3 Variant 1: Automatic Reorder Point PlanningIn automatic reorder point planning, the integrated forecasting program determines the reorder point and the safety stock level. The program uses past consumption data to forecast future requirements. The system then uses these values to calculate the reorder point and safety stock level on the basis of the vendor service level to be determined by the stock planner and the RLT of the article. These are then transferred to the article master. Since the forecasting program is run at regular intervals, the reorder point and safety stock level are continually adapted to the current consumption and delivery situation. This helps keep stock levels low. In reorder point planning, you are advised to use "Fixed lot size" or "Replenishment to maximum stock level".


UseTo carry out a forecast, the system accesses the historical data that is either imported automatically by the POS system or, as in this scenario, is maintained manually for practice purposes.

Procedure











PCS-03-ART441(Hard goods)

PCS-03-ART205(Food)

select one article. For Fashion: use variants

Distribution Center VZ01


Choose Enter.

© SAP AG of 157


Choose Comsumption values

Total Consumption 200, 600, 500, 25, 150, 400, 150, 15, 1000, 800, 700

3. Choose Enter.

4. Choose Back.

5. Choose Save.

6. Choose View Logistics: Distribution Center.

7. Choose Enter.

8. Choose Execute forecast.

9. Accept the message by choosing Enter.

10. Choose Execute Forecast twice.

11. Choose Copy.

12. Choose Save.

13. Choose Back.

The consumption values have been defaulted here, since they cannot be chosen at random to demonstrate the process. The integrated forecasting program calculates a safety stock level only when consumption fluctuates to a significant degree. A safety stock level is not otherwise considered necessary and, therefore, not calculated.

The new reorder point and safety stock level is now displayed in the article master in the requirements planning parameters.

Before the initial forecast, you have to specify a reorder point so that the system can determine the reorder point again in the future.

© SAP AG of 157


3.4 Variant 2: Time-Phased PlanningIf a vendor always supplies an article on a particular day of the week, you are advised to plan this article according to the same cycle and taking the delivery time into account. You can use the planning calendar to create these intervals. Time-phased planning determines forecast requirements to forecast future consumption. Before you plan requirements, you have to carry out a forecast because this is the only of ensuring sufficient coverage until the next MRP run. The forecast is based on past consumption. When the planning run is started depends on the requirements planning cycle. You can bring the MRP run forward to an earlier date.


UseBefore you plan requirements, you have to carry out a forecast because this is the only of ensuring sufficient coverage until the next MRP run.

To carry out a forecast, the system accesses the historical data that is either imported automatically by the POS system or, as in this scenario, is maintained manually for practice purposes.

Procedure


Option 1: SAP Graphical User Interface (SAP GUI









PCS-01-ART413(Hard goods)

PCS-01-ART203(Food)




© SAP AG of 157


Choose Enter.


Total Consumption 100 Per row

3. Choose Enter.

4. Choose Back.

5. Choose Save.


7. Choose Enter.

8. Choose Execute Forecast.



11. Choose Copy.

12. Choose Save.

13. Choose Back.

If you want to run forecasting for the same article again, you first have to set the indicator (X) in the RP/forecast data view (subscreen control data) so that the system can initialize the data (scroll right to the bottom of the screen).

© SAP AG of 157


3.5 Variant 3: Time-Phased Planning with Reorder Point Planning

In this procedure, the article is not only planned in a fixed cycle but also if the reorder point is undershot. The reorder point can also be determined by means of a forecast carried out by the system. If the reorder point is undershot, the system automatically sets the status indicator in the planning file so that the article is included in the next planning run. The requirements calculation runs at the same time as the extraordinary requirements planning (triggered as a result of the reorder point being undershot) as follows:

As a basis for the calculation, the system uses a time interval that stretches from the time at which the shortage of the reorder point occurred to the availability date of the next regular requirements planning date. The ordered quantity must be sufficient for this time interval. The article will be planned as usual on the next requirements planning date.

3.5.1 Carry Out the Individual Forecast (from the Article Master)

UseAn individual forecast means that the forecast is carried out for a specific article at a specific site. In practice, of course, a forecast for all articles at one site/at all sites (total forecast) is carried out in the background (batch) for performance reasons.

A forecast can be carried out only if past consumption values exist for the article. The consumption values are normally updated by the system in the article master record when the article is removed from the warehouse and can be checked and, if necessary, changed before the forecast is carried out. You can also enter past consumption values manually (as described here) as base values for the initial forecast.

Procedure


Option 1: SAP Graphical User Interface (SAP GUI






2. On the Change Article screen, make the following entries.

© SAP AG of 157




PCS-04-MRP441(Hard goods)

PCS-04-MRP201(Food)




Choose Enter.



3. Choose Enter.

4. Choose Back.

5. Choose Save.


7. Choose Enter.




11. Choose Copy.

12. Choose Save.

13. Choose Back.

14. You can check the executed forecast as described.





© SAP AG of 157





16. On the Change Article screen, make the following entries:



PCS-04-MRP441(Hard goods)

PCS-04-MRP201(Food)




Choose Enter.

Period Indicator Subscreen: Forecast Parameters

W

Last Forecast Date You should find here the date of the last forecast

17. Choose RP/Forecast data. Check the information for the article.

18. Choose Back three times.

If you want to run forecasting for the same article again, you first have to set the indicator (X) in the Distribution Center Logistics view ([RP/forecast data; subscreen control data]) so that the system can initialize the data (scroll right to the bottom of the screen).

Result

The initialization indicator is set automatically for an initial forecast. It defines that the system initializes models during forecasting and calculates the parameters required for a forecast model, such as the basic value, trend value, and so on.

© SAP AG of 157


3.5.2 Alternative: Carrying Out the Individual Forecast (from the Menu)

UseUnlike when you carry out the individual forecast from the article master, the forecast cannot be initialized and the parameters (reorder point, for example) cannot be changed.

If you want to repeat the individual forecast here, you first have to initialize the forecast in the article master by setting the indicator (X) (Distribution Center Logistics view, [RP / forecast data; subscreen control data]) (scroll right to the bottom of the screen).

Procedure1. Access the transaction using one of the following navigation options:


SAP Menu Logistics Retailing Purchasing Requirements Planning Forecast Individual Forecast Execute

Transaction code MP30


Business role (name) SAP_BP_RT_REPLENISHPLANNER-S (Retail Replenishment Planner)

Business role menu Replenishment Planning Forecast Execute Article Forecast

2. On the ‘Execute Forecast: Initial’ Screen make the following entries:



PCS-04-MRP441 (Hard goods)

PCS-04-MRP201 (Food)


Site VZ01

3. Choose Enter.

If no forecast has yet been carried out for the article, the Last Forecast field is empty and the system displays the message, Until now no forecast values were saved.

4. Choose Historical values.

5. Choose Back.

6. Choose Execute. You will now see the message: Forecast calculation was carried out.

Check and, if necessary, change the value in the 'Corrected Values' column manually.

© SAP AG of 157


7. Choose Back.

8. Choose Extras Addtl. Parameter from the menu bar. In NWBC choose first button More.

9. Choose Enter.

10. Choose Extras Messages from the menu bar.

11. Choose Back.

12. Choose Save. If necessary, accept messages with YES.

13. Choose Back.

3.6 Variant 4: Forecast-Based PlanningForecast-based planning is also based on consumption. Like automatic reorder point planning, forecast values for future requirements are determined by the integrated forecasting program. In contrast to reorder point planning, however, these values form the basis of the planning run. The forecast, which calculates future requirements using historical data, is carried out at regular intervals. This offers the advantage that requirements, which are automatically determined, are continually adapted to suit current consumption needs. The forecast requirement is reduced by the articles withdrawn in the period, so that the forecast requirements that have already been produced is not included in the planning run again. You can specify the period pattern for the forecast (daily, weekly, monthly or per accounting period) and the number of periods to be included in the forecast individually for each article. It is possible, however, that the forecast period pattern is not specific enough for planning requirements. In this case, you can define per article that the forecast requirements should be divided according to a finer period pattern for planning. You can also define how many forecast periods are to be taken into account during requirements planning. In forecast-based planning, the forecast values are transferred as requirements and replace the reorder point. The safety stock level is determined by the forecast.


UseTo carry out a forecast, the system accesses the historical data that is either imported automatically by the POS system or, as in this scenario, is maintained manually for practice purposes.

Procedure







Business role menu Non-Seasonal Purchase Management Item Management

© SAP AG of 157


Change Article

2. On the ‘Change Article’ screen, make the following entries:



PCS-02-ART419 (Hard goods)

PCS-02-ART202 (Food)




Choose Enter.



3. Choose Enter.

4. Choose Back.

5. Choose Save. The Message: the article/variant changed.


7. Choose Enter.




11. Choose Copy.

12. Choose Save. The Message: the article/variant changed.

13. Choose Back.

© SAP AG of 157


3.7 Optional: Reprocess the Forecast Results

Use

After a (total) forecast, you have to check the results to ensure that the forecast was carried out correctly. You can check the forecast results using a list (print a list using a print program) or (as described here) check the forecast results online. Any errors or exceptional situations that occurred during the total forecast are logged in exception messages (these are actually notes rather than errors) and assigned to a specific error class. The articles for which errors occurred during the forecast are marked for reprocessing.



SAP Menu Logistics Retailing Purchasing Requirements Planning Forecast Total Forecast Reprocess

Transaction code MP33



Business role menu Replenishment Planning Forecast Reprocess Article Forecast

2. On the ‘Forecast Reprocessing’ screen, make the following entries.


Site VZ01

Stock Planner D01

Period Indicator W

3. Select all under the Error Classes Selection.

4. Choose Enter.

If no error list is displayed,the message ” No re-evaluation record for stock planner D01 for this choice” appears. When an error list is displayed, then double-click the articles that are to be reprocessed.

5. Choose Back.

© SAP AG of 157


3.8 Planning RunRequirements Planning essentially involves determining the quantity of articles required by the deadline. Requirements planning can be carried out for a different number of articles. The amount of articles to be planned is determined by the type of planning run. You define the planning run type in the processing key field on the initial screen. The requirements planning run can be carried out as overall planning for a specific site or as individual planning for one article. It is based on the entries in the planning file.

Requirements planning, which is normally carried out automatically by the planning calendar defined, uses the forecast data to determine the order requirement. You can bring forward requirements planning (for example, a planning run due to be carried out on Monday can be carried out on the Saturday before). A manual requirement planning is carried out for demonstration purposes.

3.8.1 Optional: Planning File

UseThe planning file contains an entry for all MRP-relevant articles at a site, provided requirements planning have been activated for the site. The planning file uses different indicators to control whether an article is included or not in requirements planning. In other words, the planning run and planning scope is determined by the planning file. If an MRP-relevant change is made to an article (a purchase order is created, for example), the system sets a change indicator (NETCH planning flag) for the planning file entry. This change indicator is used in this example. If MRP-relevant changes are made within the planning horizon, the system sets a further change indicator (NETPL planning flag).

Display the planning file for your article.



SAP Menu Logistics Retailing Purchasing Requirements Planning Requirements Planning Planning File Entry Display

Transaction code MD21



Business role menu Replenishment Planning Planning Display Planning File Entry

2. On the “Display planning file entries” screen, make the following entries.


Article From article 1 to article 4. Select one article.

© SAP AG of 157


(listed on next page) For Fashion: use variant.

Site VZ01

3. Choose Execute.


Please refer the article values from article 1 to article 4.



PCS-04-ART141

Variant:

PCS-04-ART141001

to

PCS-04-ART141008



PCS-01-ART116

Variant:

PCS-01-ART116001

to

PCS-01-ART116008



PCS-03-ART141

Variant:

PCS-03-ART141001

to

PCS-03-ART141008



PCS-02-ART116

Variant:

PCS-02-ART116001

to

PCS-02-ART116008


© SAP AG of 157


3.8.2 Carry Out Single-Item, Single-Level Planning

UseTo plan the article for your distribution center, trigger requirements planning in your distribution center. For single-item planning, you always plan using the parameters that are entered on the initial screen, that is, the creation indicators determine the result of the planning run.



SAP Menu Logistics Retailing Purchasing Requirements Planning Requirements Planning Sng-Item, Sng-Level




Business role menu Replenishment Planning Planning RP-Individual Planning-Single Level

2. On the “Single-Item, Single-Level” screen, make the following entries:


Article From article1 to article4. Select one article. For Fashion: use variants

Site VZ01

Processing key NETCH

Create purchase req. 1

Delivery schedules 1

Create RP list 1

Planning mode 3

Scheduling 1

Planning date Today's date

Display results before they are saved

’X’

3. Choose Enter.

4. Accept the message Check input parameters by choosing Enter.

© SAP AG of 157


5. Double-click on the number of Purchase requisition.

If you see a number in the range 45xxxxxxxx, it is a purchase order. If so, enter a goods receipt for this purchase order and check the initial article stock.

6. Choose Save.

7. Choose Exit.

© SAP AG of 157


3.8.3 Optional: Evaluating the Planning ResultsYou can evaluate the planning situation or result of a planning run using the current stock/requirements list or RP list. Individual access and collective access are available. The basic structure of both lists is identical.

3.8.3.1 RP List

UseDepending on the creation indicator, the system creates RP lists during a planning run. The RP list contains the future requirements and stock situation at the time of the last planning run until they are either deleted manually or replaced with a new list generated during the next planning run. It shows the result of the last planning run and in statistical form, which means that changes made after the planning run are not displayed.



SAP Menu Logistics Retailing Purchasing Requirements Planning Requirements Planning RP List Individual Display




Business role menu Replenishment Planning Planning Individual Display of RP-List

2. On the “RP List: Initial Screen” make the following entries:


Article Tab:

Individual access

From article 1 to article 4.choose the same article used in 3.8.2

Select one article. For Fashion: use variants

Site VZ01

3. Choose Enter.

4. Open the header details for more information about the article.

5. Choose Details of Elements.

6. Choose Enter.

Choose Back twice.

© SAP AG of 157





PCS-04-ART141

Variant:

PCS-04-ART141001

to

PCS-04-ART141008



PCS-01-ART116

Variant:

PCS-01-ART116001

to

PCS-01-ART116008



PCS-03-ART141

Variant:

PCS-03-ART141001

to

PCS-03-ART141008



PCS-02-ART116

Variant:

PCS-02-ART116001

to

PCS-02-ART116008


© SAP AG of 157


3.8.3.2 Current Stock/Requirements List

UseThe current stock/requirements list is a dynamic list that displays the current status of the stock, requirements, and receipts. Changes are displayed as soon as you call up the current stock/requirements list or update the elements in real time from the database by choosing 'Refresh' (in the display for the current stock/requirements list). In this way, you can always see the current availability situation of the article in the stock/requirements list (note the time).



SAP Menu Logistics Retailing Purchasing Requirements Planning Requirements Planning Planning File Entry Stock/Requirements List




Business role menu Replenishment Planning Planning Display Stock/Requirements Situation

2. On the “Stock/Requirements List: Initial Screen” make the following entries:


Article Tab:

Individual access

From article 1 to article 4.choose the same article used in 3.8.2; you will find the list of article on the next page

Select one article. For Fashion: use variants

Site VZ01

3. Choose Enter.

4. Double-click on Purchase Requisition.

5. Choose Enter and Back.

© SAP AG of 157





PCS-04-ART141

Variant:

PCS-04-ART141001

to

PCS-04-ART141008



PCS-01-ART116

Variant:

PCS-01-ART116001

to

PCS-01-ART116008



PCS-03-ART141

Variant:

PCS-03-ART141001

to

PCS-03-ART141008



PCS-02-ART116

Variant:

PCS-02-ART116001

to

PCS-02-ART116008


© SAP AG of 157


3.8.4 Convert the Purchase Requisition to a Purchase Order

Use Carry out requirements planning right up to goods receipt, otherwise you will not be able to carry out subsequent processes. When purchase orders remain in the system, they prevent purchase requisitions from being generated in the MRP run.

You started by carrying out requirements planning for a distribution center. This process generated purchase requisitions. The purchase requisitions are now converted to purchase orders for the vendor.



SAP Menu Logistics Retailing Purchasing Requirements Planning Requirements Planning Stock/Requirements List







Article “Individual Access” tab

From article 1 to article 4.choose the same article used in 3.8.2; you will find the list of article on the previous page

Select one article. For Fashion: use variants. See chapter 2 Prerequistes..

Site VZ01

3. Choose Enter.

4. Double-click on Purchase requisition.

5. Choose Convert purchase requisition to purchase order.

6. On the screen: Create purchase, enter Company Code: 1000. Select the open purchase requisition on the left in the document overview and drag it to the shopping basket on the left next to Standard purchase order'.

7. Choose Enter.

© SAP AG of 157


8. If necessary, ignore message: ‘No time window assigned for site VZ01 and storage location 1001’ with choosing Enter.

This message comes up when Article 2 is also customized for goods receipt capacity check. For more information about goods receipt capacity check please look at chapter: 6.3.4.

9. Choose Save and ignore other messages (if necessary).


ResultStandard PO created under the number Make a note of the number.

© SAP AG of 157



UseIn the following section, the goods receipt is posted with reference to the purchase order.



SAP Menu Logistics Retailing Merchandise Logistics Goods Receipt Goods Receipt for Purchase Order

Transaction code MB01



Business role menu Non-Seasonal Purchase Management Purchase Orders Post Goods Receipt for PO

2. On the “Goods Receipt for Purchase Order: Initial Screen” make the following entries:


Movement Type 101

Purchase Order Purchase orders of 3.8.4

Site VZ01


3. Choose Enter.

4. Choose Save and ignore the messages (if necessary).

5. Choose Back.

© SAP AG of 157


4 Supply Source DeterminationA supply source is a potential for procuring an article. A supply source can be external (a vendor, for example) or internal (a firm's own site, for example).Purchasing manages internal or external supply sources using the source list and quota arrangement.


Process Reference

Business Condition


Expected Results

4 Supply Source Determination

4.2 Supply Source 1: Quota Arrangement

4.3 Supply Source 2: Source List

Retail Replenishment Planner ME51 The quantity contract was registered as supply source in the document

4.3.1 Maintain Source List

Retail Replenishment Planner – Power User

ME01 Source list changed.

4.3.2 Create Purchase Requisition (Automatic Supply Source Determination)

Retail Non-Seasonal Purchaser ME51

4.3.3 Purchase Order With Reference to the Purchase Requisition

Retail Non-Seasonal Purchaser ME21N Standard PO created under number Make a note of the PO

© SAP AG of 157



Business Condition


Expected Results

number.



MB01

4.4 Supply Source 3: Purchasing Info Record

4.4.1 Displaying the Purchasing Info Record

Retail Non-Seasonal Purchaser ME13

4.4.2 Purchase Requisition

(Assign Supply Source)

Retail Non-Seasonal Purchaser ME51 Purchase requisition number 10000 was created. Make a note of the number.

4.4.3 Automatic Conversion of the Purchase Requisition to a Purchase Order

Retail Replenishment Planner ME59 Purchase Order 4500XX was created. The row is green. Note the purchase order number.



MB01

© SAP AG of 157


4.2 Supply Source 1: Quota ArrangementQuota arrangements are very rarely used in retail and so will not be described in detail here. Quota arrangements can be used to define various internal or external sources of supply to which procured merchandise is to be distributed using quota arrangements. You can also enter outline agreements as sources of supply. You can use quota arrangements, for example, for articles that cannot be supplied by a sole vendor because demand is too great. By fixing quotas, you can distribute demand to different supply sources automatically.

4.3 Supply Source 2: Source ListSource list entries are also rarely used in retail.

Purchasing can use the source list to manage supply sources centrally. The source list contains the permitted (and not permitted = blocked) supply sources for an article in a specified site and period. This enables you to assign an internal or external supply source and a validity period to an article/site combination. Each supply source is defined in the source list in a source list record. You can also enter outline agreements as supply sources or define fixed vendors or preferred outline agreements. You can use the source list to fine-tune the supply source determination for individual articles.

4.3.1 Maintain Source List

UseYou enter supply sources manually in the source list. You are advised to use this method when you have to make a number of changes or enter new data in the source list:



SAP Menu Logistics Retailing Purchasing Purchase Order Master Data Source List Maintain

Transaction code ME01


Business role (name) SAP_BP_RT_REPLENISHPLANNER-K (Retail Replenishment Planner – Power User)

Business role menu Replenishment Planning Source List Maintain Source List

2. On the “Maintain Source List: Initial Screen” make the following entries:


Article PCS-01-CON142(Fashion)

PCS-03-CON431(Hard Goods)

For generic articles, enter the variants

© SAP AG of 157



PCS-03-CON201(Food)

Site VZ01

Choose Enter.

Valid from Today's date

Valid to 12/31/9999

Vendor PCS-V141(Fashion)

PCS-V431(Hard Goods)

PCS-V201(Food)

POrg 1000

Fix 'X'

3. Choose Enter.

4. Create a second entry for another vendor.

Valid from Today's date

Valid to 12/31/9999



PCS-V202(Food)

POrg 1000

Fix blank

5. Choose Enter.

Ignore warning messages with Enter.

6. Choose Save.

7. Choose Back.

ResultSource list changed.

© SAP AG of 157


4.3.2 Create Purchase Requisition (Automatic Supply Source Determination)

UseA purchase requisition is a request to the purchasing department to procure a quantity of an article so that it is available at a certain point in time. Purchase requisitions are created manually or automatically in requirements planning, for example. In this scenario, you create the purchase requisition manually.

If supply sources for the requested article have already been defined in the system, the system locates these automatically and assigns them to the purchase requisition.



SAP Menu Logistics Retailing Purchasing Requirements planning Purchase requisition Create




Business role menu Non-Seasonal Purchase Management Purchase Requisition Create Purchase Requistion

1. On the “Create Purchase Requisition: Initial Screen” make the following entries:


Document type NB

Source determination ‘X’

Site VZ01


Choose Enter.



PCS-03-CON201(Food)


Quantity requested 10

2. Choose Enter.

3. If necessary, accept warning messages by choosing Enter.

© SAP AG of 157


4. Choose Save.

5. Make a note of the purchase requisition number.

6. To change data on item level in the purchase requisition, access the transaction choosing one of the following navigation options:


SAP Menu Logistics Retailing Purchasing Requirements planning Purchase requisition Change




Business role menu Non-Seasonal Purchase Management Purchase Requisition Change Purchase Requistion

7. On the “Change Purchase Requisition: Initial Screen” make the following entries:


Purchase requisition See above (Step 5)

8. Choose Enter.

9. Select position and Choose Push button Item details.


© SAP AG of 157


4.3.3 Purchase Order With Reference to the Purchase Requisition

UseThe purchase requisitions are now converted to purchase orders for the vendor. Create a purchase order with reference to the purchase requisition.



SAP Menu Logistics Retailing Purchasing Purchase Order Purchase Order Create Vendor Known

Transaction code ME21N



Business role menu Non-Seasonal Purchase Management Purchase Orders Create Purchase Order

2. On the “Create Purchase Order” screen, choose Document overview on (if required) and with the help of the selection, choose purchase requisition.

3. Select the purchase requisition of 4.3.2 on the left side and drag it to the shopping basket.

4. Choose Enter.

5. Accept all messages, f. e.: “Can delivery date be met?” by choosing Enter.

6. Choose Save.

7. Choose Back.

ResultStandard PO created under number Make a note of the PO number.

© SAP AG of 157













Movement Type 101

Purchase Order Purchase order of 4.3.3

Site VZ01


3. Choose Enter.

4. Choose Post.

5. If necessary, accept the message “Enter delivery note for evaluated receipt settlement” by choosing Enter.

6. Choose Back.

© SAP AG of 157


4.4 Supply Source 3: Purchasing Info RecordThe purchasing info record plays a very important role in the entire purchasing process and is, therefore, described in detail here.The purchasing info record (or info record) acts as a source of information for the purchasing department. It creates the relationship between a vendor and an article and contains, for example, the prices and conditions. The Purchasing view in the article master is not structured in the same way as a purchasing info record; you can create a purchasing info record of this kind by choosing the [INFO RECORD] button in the Purchasing view. When stock is transferred from a distribution center to a store, you do not have to maintain a purchasing info record. The info record has a higher priority than the article master record. Reference handling in the purchasing data in the vendor master ("Propose Article Values" subscreen) enables you to use the data in the info record as default data (in purchase orders, for example). Purchasing info records enable the buyer to determine which articles a particular vendor has offered or delivered so far and which vendors can offer or deliver a particular article. They can be created manually or automatically when a quotation, purchase order, or outline agreement is maintained. Purchase order data is always updated automatically in the info record. Important fields in the article master of the Purchasing view include 'Variable order unit', 'Regular vendor', the [INFO RECORD] button, 'Planned delivery time', and 'Rounding profile' (for more information, see the documentation for the ordering process)

In retail, purchasing info records also show outline agreements with the vendor in a simplified form without the outline agreement. A purchasing info record defines internal or external supply sources.

4.4.1 Display the Purchasing Info Record



SAP Menu Logistics Retailing Master data Vendor Data Purchasing Info Record Display




Business role menu Non-Seasonal Purchase Management Info Records Display Purchasing Info Records

2. On the “Display Info Record: Initial Screen” make the following entries:




© SAP AG of 157


PCS-V201(Food)


PCS-04-MRP441(Hard Goods)

PCS-04-MRP201(Food)

The purchasing info record used on the header level of a generic article will be used by every variant until a specific info record for a variant is created

Purchasing Org. 1000

Site VZ01

3. Choose Enter.

Make a note of the Purchasing Info record.


© SAP AG of 157


4.4.2 Purchase Requisition (Assign Supply Source)

UseIf a vendor has not been assigned to a purchase requisition, you can assign supply sources to purchase requisitions manually.If the system proposes more than one supply source, you can carry out a simulation to determination the lowest price.







Business role menu Non-Seasonal Purchase Management Purchase Requisition Create Purchase Requistion



Document type NB


Site VZ01


Purchasing group 101

Choose Enter.


Variant:

PCS-04-ART141001

to

PCS-04-ART141008

PCS-04-MRP441 (Hard Goods)

PCS-04-MRP201 (Food)



© SAP AG of 157


3. Choose Enter.

4. Accept the message “Can delivery date be met?” by choosing Enter.

5. Choose EditAssign supply source from the menu. In NWBC choose first button More.

6. If necessary, accept the message Existing sources will be lost, by choosing Enter.

7. Double-click on Vendor PCS-V/ Info/agmt. (see 4.4.1)

8. Choose Save.

9. Choose Back.

ResultPurchase requisition was created. Make a note of the number.

© SAP AG of 157


4.4.3 Automatic Conversion of the Purchase Requisition to a Purchase Order

UsePurchase requisitions that have been assigned can be converted to purchase orders for the vendor.

Create a purchase order by converting the purchase requisition you created to a purchase order ('Automatically via purchase requisition').



SAP Menu Logistics Retailing Purchasing Requirements planning Purchase Order Create Automatically via Purchase Requisition



Business role (name) SAP_BP_RT_REPLENISHPLANNER-S (Retail Replenishment Planner )

Business role menu Replenishment Planning Purchase Order Automatic Generation of POs

2. On the “Automatic Creation of Purchase Orders from Requisitions” screen, make the following entries:



Purch. Organization 1000



PCS-V201(Food)

Site VZ01

Test run select

Purchase requisition See 4.4.2

3. Choose Execute.

4. If there is a message saying, “Test run successful”, please choose Back and unmark Test run.

5. Choose Execute.

Result

© SAP AG of 157


Purchase Order 450000 was created. The row is green. Note the purchase order number.


© SAP AG of 157













Movement Type 101


Site VZ01


3. Choose Enter. Please note, when a rounding profile is set up in the article master data (logistic view), the piece quantity is rounded down to a carton quantity (for example, for article PCS-04-MRP201)

4. Choose Post.

5. If necessary, accept all messages by choosing Enter.

6. Choose Back.

© SAP AG of 157


5 Contract Processing


Process Reference

Business Condition


Expected Results

5 Contract Processing

5.2 Supply Source 4: Outline Agreements (Contracts)

5.2.1 Create Contract Retail Replenishment Planner – Power User

ME31K Quantity contract was created under the number 46000. Make a note of the number.

5.2.2 Create Purchase Requisition (Assign Supply Source)


ME51 The quantity contract was registered as supply source in the document.

5.2.3 Release Order for the Contract


ME21N Standard PO created under number 45. Note the PO number.

5.2.4 Display Release Documentation


ME33K



MB01

© SAP AG of 157


5.2 Supply Source 4: Outline Agreements (Contracts)The outline agreements in the system are evaluated during supply source determination. An outline agreement can refer to an external supply source (value or quantity contract, for example) or an internal supply source (stock transport scheduling agreement). In retail, purchasing info records also show outline agreements with the vendor in a simplified form without the outline agreement (see 4.4.4).

5.2.1 Create Contract

UseContracts can be created manually or with reference to a purchase requisition, inquiries/quotations, or other contracts.



SAP Menu Logistics Retailing Purchasing Requirements planning Environment Purchase Order Outline Agreement Contract Create

Transaction code ME31K



Business role menu Replenishment Planning Contracts Create Contract

2. On the “Create Contract: Initial Screen” make the following entries:




PCS-V201(Food)

Agreement type MK

Agreement date Today



Site VZ01


Choose Enter.

© SAP AG of 157



Validity end End of year

Choose Enter.



PCS-01-CON201(Food)

Targ.qty 100

Choose Enter. If you get the message:

Use GR-based invoice verification,

Please flag the field GR-Based IV and choose Enter.

Header Conditions From menu

CnType RA01

Amount 1

3. Choose Enter.

4. Choose Back.

5. Choose Save.

6. Choose Back.

ResultQuantity contract was created under the number 46000XX. Make a note of the number.

© SAP AG of 157


5.2.2 Create Purchase Requisition (Assign Supply Source)

UseContracts can be entered in the purchase requisition as a supply source. When the purchase requisition is converted to a purchase order, the reference to the outline agreement is created.







Business role menu Replenishment Planning Purchase Requisition Create Purchase Requistion



Document type NB


Site VZ01



Choose Enter.



PCS-01-CON201(Food)



3. Choose Enter.

4. Accept the message “Can delivery date be met?” by choosing Enter.

5. Select the position.

© SAP AG of 157


6. Choose Edit Assign supply source from the menu.

7. If necessary, accept the message “Existing sources will be lost” by choosing Enter.

8. Double-click on your quantity contract number (see 5.2.1) on column Info/agmt to choose it.

9. Choose Save.

10. Choose Back. Purchase requisition number 10000X is created. Note the number.

11. Check if the quantity contract is assigned as supply source to the purchase requisition.



SAP Menu Logistics Retailing Purchasing Requirements planning Purchase requisition Change




Business role menu Replenishment Planning Purchase Requisition Change Purchase Requistion

13. On the “Change Purchase Requisition: Initial Screen” make the following entries:


Purchase requisition See above

14. Press Enter.

15. Select position and choose Item details.

ResultThe quantity contract was registered as supply source in the document.

16. Choose Exit.

© SAP AG of 157


5.2.3 Release Order for the Contract

UseContracts do not contain any details about delivery times. To ensure that the vendor knows which quantities are required by which time, you have to create a release order for a contract. When you create a release order, data (vendor data, price, terms of delivery) is copied from the contract directly to the purchase order.

You release a contract by creating a purchase order with reference to the existing contract. Purchase orders created in this way are called release orders (also releases or contract release orders).







Business role menu Replenishment Planning Purchase Orders Create Purchase Order

2. On the “Create Purchase Order” screen, click on the Document overview on button (If required).

3. On the left side, click on the Selection Variants button.

4. Select the purchase requisition of 5.2.2 and drag it to the shopping basket.

5. Choose Enter.

6. If necessary, accept the message “Can delivery date be met?” by choosing Enter.

7. Choose Save.

ResultStandard PO created under number 45. Note the PO number.

8. Choose Back.

© SAP AG of 157


5.2.4 Display Release Documentation

UseThe release documentation displays the current status of releases for a contract. The release documentation (quantity released so far, open quantity, for example) is automatically updated when you create a release order. It provides information on the total value of each release and the target contract value that is still open. It is important for monitoring the contract.

You can now find out how the release order has affected the contract.



SAP Menu Logistics Retailing Purchasing Requirements planning Environment Purchase Order Outline Agreement Contract Display

Transaction code ME33K



Business role menu Replenishment Planning Contracts Display Contract

2. On the “Display Contract: Initial Screen” make the following entries:


Agreement See 5.2.1

3. Choose Enter.

4. Select Item 10 and choose Item Statistics Release Documentation from the menu.

5. Position your cursor on the purchase order number and choose Release details.

6. Choose Exit.

© SAP AG of 157













Movement Type 101


Site VZ01


3. Choose Enter.

4. Choose Save.

5. If necessary, accept the message Enter delivery note for evaluated receipt settlement, by choosing Enter.

6. Choose Back.

© SAP AG of 157


6 Purchase Order Processing


Process Reference

Business Condition


Expected Results

6 Purchase Order Processing

6.2 Plan Workbench

6.2.1 Check the Stock Retail Non-Seasonal Purchaser

RWBE

6.2.2 Check consumption and forecast values


MM42

6.2.3 Create Purchase Orders via eCATT

SECATT Standard PO created under the number 45.

6.2.4 Online Requirements Planning


WWP1

6.2.5 Order Cancellation Retail Replenishment Planner

WWP3

6.2.5.1 Set the Inward Delivery Completed Indicator

6.2.5.2 Set the Delivery Date

6.2.5.3 Set the Deletion

© SAP AG of 157



Business Condition


Expected Results

Indicator

6.2.6 Order Release Retail Non-Seasonal Purchaser

ME21N Release effected with release code 01. The row becomes green. The release indicator changes from '1' to '2'.



MB01

6.3 Order Optimizing

6.3.1 Quantity Optimizing

6.3.1.1 Article Master Data Retail Non-Seasonal Purchaser

MM42

6.3.1.2 Create Purchase Order


ME21N

6.3.1.3 Non-Application-Specific Simulation of Rounding Profiles

SPRO A new window appears containing the results of the simulation.

6.3.2 Investment Buying

6.3.2.1 Factors That Influence the ROI

Retail Master-data Manager

WB02

6.3.2.1.1 Required ROI

6.3.2.1.2 Storage Costs Retail Non-Seasonal

MM42

© SAP AG of 157



Business Condition


Expected Results

Purchaser

6.3.2.1.3 Storage Costs Indicator

6.3.2.1.4 Service Costs

6.3.2.1.5 Shelf Life, Expiration Date (Food Only)


MM42

6.3.2.1.6 Terms of Payment Retail Master Data Manager

MK02

6.3.2.2 Investment Buying Run

6.3.2.2.1 Future Price Changes Retail Non-Seasonal Purchaser

MM42

6.3.2.2.2 Maintain Forecast Values


MM42

6.3.2.2.3 Carry Out the Forecast Retail Non-Seasonal Purchaser

MM42

6.3.2.2.4 Requirements Determination Procedure in Investment Buying


WLB1

6.3.2.3 Alternative: Simulate an Investment Buying Run

© SAP AG of 157



Business Condition


Expected Results

6.3.2.3.1 Future Price Changes Retail Non-Seasonal Purchaser

MM42



MM42

6.3.2.3.3 Carry out the forecast Retail Non-Seasonal Purchaser

MM42

6.3.2.3.4 Return on Investment Retail Replenishment Planner - Power User

WLB6 Document creation being started..Standard PO created. Make a note of the number 45000.

6.3.2.3.5 Investment Buying Analysis

Retail Replenishment Planner - Power User

WLB2

6.3.2.4 Goods Receipt in the Distribution Center


MB01

6.3.3 Load Building

6.3.3.1 The Individual Forecast


MM42

6.3.3.2 Carry Out Single-Level, Single-Item Planning


MD04

© SAP AG of 157



Business Condition


Expected Results

6.3.3.3 Convert the Purchase Requisition to a Purchase Order


MD04 Standard PO created under the number 45. Make a note of the number.

6.3.3.4 Automatic Load Building


WLB13

6.3.3.5 Load Building Results List


WLB4

6.3.3.6 Manual Load Building Retail Replenishment Planner

WLB5

6.3.4 Goods Receipt Capacity Check

Retail Non Sesonal Purchaser

ME21N

7 Purchase Order Monitoring

7.1 Requirements Planning Workbench

7.2 Display Open Purchase Orders


ME2L

7.3 Display Status Data for the Purchase Order Header


ME23N

© SAP AG of 157



Business Condition


Expected Results

7.4 Displaying the Purchase Order History

8 Vendor Evaluation

8.1 Initial Maintenance of Vendor Evaluation

SECATT The evaluation record was changed.

8.2 Automatic Reevaluation

Retail Non-Seasonal Purchaser – Power User

ME63

8.3 Maintaining the Vendor Evaluation Manually

Retail Non-Seasonal Purchaser – Power User

ME61

8.4 Analyses Relating to Vendor Evaluation

8.4.1 Comparison of Evaluations

Retail Non-Seasonal Purchaser – Manager

ME64

8.4.2 Ranking Lists Retail Non-Seasonal Purchaser – Manager

ME65

8.4.3 Executing an Evaluation of the Article/Merchandise

Retail Non-Seasonal Purchaser –

ME6B

© SAP AG of 157



Business Condition


Expected Results

Category Manager

© SAP AG of 157


6.2 Plan WorkbenchThe planning workbench is a working environment for stock planners. It includes the online planning function and a connection to Internet services. The stock planner can use the Online Planning function to order merchandise from external vendors. Using the ordering days (order cycle) defined, you can have the system suggest which vendors to order from and display the purchase orders that have already been created for the vendor. You can then decide whether additional quantities or articles have to be ordered.

The planning workbench provides you with a worklist, from which you can go directly to the application (such as the online planning application) at the click of the mouse. The worklist is easy to navigate through and can be displayed in a number of formats to suit you, as can the application. Online planning supports both automatic requirements planning and manual ordering transactions.

6.2.1 Check the Stock



SAP Menu Logistics Retailing Merchandise Logistics Valuation Inventory Management Environment Stock Stock Overview

Transaction code RWBE



Business role menu Non-Seasonal Purchase Management Stock Stock Overview

2. On the “Stock Overview” screen, make the following entries:


Article PCS-04-ORB142(Fashion)

PCS-04-ORB431(Hard Goods)

PCS-04-ORB201(Food)



PCS-V201(Food)

Site VZ01

3. Choose Execute.

© SAP AG of 157


The stock should be 1000 pieces. If the stock is different, you can correct it as follows.


SAP Menu Logistics Retailing Merchandise Logistics Logistics Execution Inbound Process Goods Receipt for Purchase Order, Order, Other Transactions Goods Receipt for Other Activities





5. On the Enter Other Goods Receipts: Initial Screen, make the following entries:


Movement Type ‘501’ Receipt w/o purchase order into warehouse


Site VZ01


Choose Enter.

Article <Article>

Quantity <..>

UNE EA

6. Choose Post.


© SAP AG of 157


6.2.2 Check Consumption and Forecast Values

Procedure








2. On the “Change Article” screen, make the following entries.




PCS-04-ORB201(Food)

Distr. center VZ01

3. Select Logistics distribution center view.

4. Choose Enter.

5. Choose CONSUMP. VALS.

6. Enter 1000 for each line in column total consumption for maximum 2 years in the past.

7. Choose Enter.

8. Choose Back.

9. Choose Save.

10. Select “Logistics distribution center” view.


12. Choose Enter. Then Choose Execute forecast twice.

13. Choose Copy and Save.

14. Select “Logistics distribution center” view.

© SAP AG of 157


15. On the “Logistics distribution center” section make the following entries.


Forecast parametersPeriod ind.

W

Last forecast Date possibly displayed

16. Choose RP/Forecast data.

17. Chose Back twice.

If you want to conduct the forecast for the same article again, you must first set the flag (X) for initialization by the system in the Logistic DC view, Button [Planning/Forecast data] (scroll down to bottom of screen).

Initialization flag: The initialization flag is automatically set for the first forecast. It establishes that a model initialization will be conducted in the framework of the forecast and the parameters necessary for the forecast model, such as basic value, trend value etc. are calculated by the system.

© SAP AG of 157


6.2.3 Create Purchase Orders via eCATT


SAP Menu Tools ABAP Workbench Test Test Workbench Test Tools Extended CATT

Transaction code SECATT

2. On the “Extended Computer Aided Test Tool: Initial Screen” make the following entries:


Test configuration Radio button

Test configuration Z_US_CREATE_ORDERS

Choose Execute.

Error behavior “Shared” tab S No Determination, Continue with Next Script Command

Variant “Variants“ tab set flag:

For Fashion: '10001' and '10002'For Food: '30001' and '30002'For Hard Goods: '40001' and '40002'

Remove flag: “ECATTDEFAULT”

Only the variants you want to use should be flaged

3. To create four purchase orders, run each eCATT with each variant twice.


Start Mode for Command TCD

“UI Control“ tab N Process in Background, Synchronous Local

4. Choose Execute. The created Purchase Orders will be displayed in the log of the eCATT.

5. Expand the green flagged variant text line.

6. Now open the REF text line and then the ELSE text line to see the Purchase Order number.

7. Open the text line TCD ME21.

8. You will find the text line: Standard Purchase order created. Note the number.

9. Execute the eCATT twice to get four Purchase Orders.


ResultStandard PO created under the number 45.

© SAP AG of 157


6.2.4 Online Requirements Planning

UseThe stock planner in the distribution center calls up online planning and creates a worklist. You can use online planning to check existing purchase orders and, if necessary, add data. You can also use online planning to carry out planning even if purchase orders do not yet exist. The system can propose vendors, articles, and purchase order quantities, which the stock planner can then verify using other information.

Possible results of online planning include:

You have changed items in an existing purchase order.

You have added items to an existing purchase order.

You have created new purchase orders.

When the Workbench is started, stock planners can easily restrict their work to certain areas.



SAP Menu Logistics Retailing Purchasing Requirements planning Planning Workbench Applications

Transaction code WWP1



Business role menu Replenishment Planning Disposition Online Planning in the Planning WB

2. On the Planning Workbench screen, make the following entries:


Site “Online planning” tab

VZ01

Site cat. B


Purchasing Group 101

Horizon 6



© SAP AG of 157


PCS-V201(Food)



PCS-04-ORB201(Food)

Restriction Profile PCS1

A restriction profile for load building is assigned to the vendor. A restriction profile contains, for example, data on the minimum and maximum load capacities for the means of transport used (see Customizing Guide), which enables you to make the most of existing transport capacities

3. Choose Execute.

4. Expand the folder list till you see your created Purchase Orders.

You can see two of the created Purchase Orders, because the other ones are created in the past. If you want to display all Purchase Order you have to set the Purchase Order Date two days back in the Planning Workbench screen.

5. Double-click on one of your Purchase orders.

6. Position cursor on Article and choose the Generate order quantity proposal. button.

7. Make an entry for the field “Target Range”. (for example, 40)

8. Choose Enter.

The traffic lights for the defined restriction profile should all be green.

9. Choose the Display consumption and forecast values button.

10. Close the screen by choosing X, on the right upper side.

11. Choose Save.

12. Choose Back.

The traffic light changes from red to yellow or green

You can also display the stock/requirements list and (if available) the vendor conditions or RP list.

13. Double-click on Purchase order.

14. Position the cursor on Article and choose Goto Stock/Requirements List from the menu.

15. Choose Back.

16. Choose Goto RP List from the menu.

17. Choose Back.

18. Choose Goto Vendor conditions from the menu.

19. Choose Back.

© SAP AG of 157


6.2.5 Order Cancellation

UseUse this function to process purchase orders for which the delivery date falls in the past but which have not yet been delivered or have only been partially delivered. Purchase orders that have only been partially delivered are critical for all customers because they can cause out-of-stock situations. Although all purchase orders that are still open have to be processed manually, the user can respond actively to a given situation with a view to finding a solution. It is important that you telephone those affected in the supply chain so that you can discuss whether and how purchase orders are to be modified.

Once you have contacted the relevant vendor, you can make the following changes as required to the purchase orders:

Change the inward delivery completed indicator.

Change the deletion indicator.

Change the delivery date.

These changes should normally only be made by the stock planner and/or buyer. For work process reasons, the requirements planning workbench should always be used to access the application. This enables the stock planner or buyer to integrate requirements planning in their day-to-day activities. In this backorder view, stock planners can only see certain purchase orders in their area and can decide whether to delete these purchase orders or assign them a date in the future. The latter option obviously affects additional MRP or forecast runs. The 'order cancellation' function is integrated in the Planning Workbench. You can call up the 'order cancellation' function using transaction WWP3.

The system only displays purchase orders with delivery dates in the past.



SAP Menu Logistics Retailing Purchasing Requirements planning Planning Workbench Order Cancellation

Transaction code WWP3



Business role menu Replenishment Planning Disposition Order Cancellation in Planning WB

2. On the “Planning Workbench” screen, make the following entries:

© SAP AG of 157



Site “Order cancellation” tab

VZ01

Site cat. B


Purchasing Group 101



PCS-V201(Food)

3. Choose Execute.

For individual processing:4. Double-click on Purchase order.(See 6.2.3)

Or for multiple processing:

5. Press down and hold the Ctrl key, and select some purchase order numbers.

6. Choose Execute.

Now, you can change:

Change the inward delivery completed indicator.

Change the deletion indicator.

Change the delivery date.

© SAP AG of 157


6.2.5.1 Set the Inward Delivery Completed Indicator

UseYou can set an inward delivery completed indicator for these purchase orders or assign them a date in the future.

Procedure1. Set Delivery Completed Indicator or select row SET INWARD DELIVERY COMPLETED

INDICATOR.

2. Choose Execute changes.

3. Please reset the delivery completed indicator.

4. Please select line again. Choose Reset delivery completed indicator.


6. Choose Back.

© SAP AG of 157


6.2.5.2 Set the Delivery Date

UseYou can adjust the delivery date for this purchase order.

Procedure1. Cursor on row of this purchase order

2. Update the date in New Delivery Date field

3. Choose Menu Edit-Set Delivery Date, updated the delivery date

4. Choose Menu Select-Execute changes, system will save the information for this purchase order

5. Choose Back

6.2.5.3 Set the Deletion Indicator

UseIn this example, you want to delete just one of the purchase orders listed.

Procedure1. Double-click on PO number.

2. Please select line again and choose Set deletion indicator .


Or you go back w/o changes by choosing REVERT TO SAVED STATUS

4. Choose Back.

5. Nodes with the relevant day of the week for the purchase orders (select the folder icon)

6. Choose Refresh.(The system now displays the current status of the purchase orders)

Meaning of the traffic lights:

* GREEN: ALL items BLOCKED, DELETED, or DELIVERED

* YELLOW refers to anything that is not green, with a FOLLOW-ON DOCUMENT or with (new) DELIVERED items.

* As before, RED indicates all other statuses.

© SAP AG of 157


6.2.6 Order Release

UseA release procedure can be carried out for all purchasing documents and purchase requisitions. When a document is created, a release strategy is automatically assigned due to various conditions (the value, for example). It defines which employees, departments, or other organizational units have to release the document in which order. Once all those involved have released the document, the document can be processed further. This procedure aims to allow signatures to be provided electronically rather than manually while retaining the dual control principle. The employee responsible processes the purchasing document in the system and flags it as "seen by responsible individual", "in process", or "per program". Purchase orders created by purchasing group 109 have to be released (see Customizing Guide), that means, for example automatically generated purchase orders are blocked and has to be released before it can be sent to the vendor. Purchasing documents are always released at header level.

You can also use the SAP Business Workflow. A work item in their inbox informs agents that a document has to be released. The document is released when the work item is processed.

PrerequisitesFor order release you need purchase orders which were generated from the purchasing group 109.








2. On the “Create Purchase Order” screen, make the following entries:


Order type NB Standard PO



PCS-V201(Food)

© SAP AG of 157



Doc. date Today

Go to “Org.data” tab Possibly: expand Header

Purch. Organization

1000


Company Code 1000

Choose Enter. Possibly: expand ITEM OVERVIEW



PCS-01-CON201(Food)

PO quantity <f. e. 100>

OUN EA

Site VZ01


3. Choose Enter.

4. Accept all messages, f. e. “Can delivery date be met?” by choosing Enter.

5. Choose Save.

6. Choose Back.

7. Access the following transaction by using one of the following navigation options:


SAP Menu Logistics Retailing Purchasing Requirements planning Purchase order Release



Business role (name) SAP_BP_RT_NONSEASBUYER-K (Retail Non-Seasonal Purchaser – Power User)

Business role menu Non-Seasonal Purchase Management Purchase Orders Release Purchase Order

8. On the “Release (Approve) Purchasing Documents” screen, make the following entries:

© SAP AG of 157



Release code 01

Set release Set indicator

Release prerequisite fulfilled

Set indicator


9. Choose Execute. (Release all existing purchase orders.)

10. Position your cursor on the purchase order and choose Release.

11. Choose Save.

ResultRelease effected with release code 01. The row becomes green. The release indicator changes from '1' to '2'.

12. Choose Back.

© SAP AG of 157



UseIn the following section, the goods receipt is posted with reference to the purchase order. Post all the purchase orders that have just been released.










Movement Type 101


Site VZ01


3. Choose Enter.

4. Choose Save.

5. If necessary, accept the message Enter delivery note for evaluated receipt settlement, by choosing Enter.

6. Choose Back.

© SAP AG of 157


6.3 Order OptimizingIn Order Optimizing, the system combines the quantities in open purchase requisitions and purchase orders and rounds off the total quantity. This enables you to make best possible use of the transport capacity available.

In a retail system, the following activities usually occur in sequence during the night:

1. Forecast

2. MRP run to determine net requirements

3. Investment buying (in each case, the system uses the larger of the quantities calculated in steps 2 and 3)

4. Automatic load building with quantity optimizing

5. Conversion of purchase requirements to purchase orders with quantity optimizing

You then evaluate the results of automatic load building using a results list and if necessary build loads manually.

Order optimizing comprises the following functions:

1. Quantity optimizing

2. Investment buying

3. Load building

Order Optimizing aims to achieve the most economical results possible. For each article, the system defines (in accordance with certain rules) an optimized purchase order quantity by, for example, rounding up to full pack sizes or grouping together purchase orders to create full loads.

Quantity optimizing handles a specific quantity according to rules defined in Customizing. You can round up or down. The system can also take different units of measure of an article into account.

In Quantity optimizing, certain rounding rules and profiles in accordance with which the system rounds up or down to full pack sizes to make the best possible use of space can be taken into account when a purchase order is created.

For a more detailed analysis (in particular, the purchase order value analysis), you can use the SAP Business Warehouse (BW). You can use the BW to analyze your company's purchasing activities and procurement process.

Investment buying is a method used to determine requirements resulting from future increases in the purchase price and that are to be covered by external procurement. The purpose of investment buying is to purchase the right articles in reasonable quantities in good time and at the lowest possible prices.

Investment buying is not a purely consumption-based procedure because it includes future increases in the purchase price in the requirements determination and establishes whether it is worth ordering a particular purchase order quantity at the latest possible procurement date. To determine the purchase order quantity, the current stocks, forecast requirements, and storage costs are weighed up against each other in an ROI (return on investment) calculation. This establishes whether it is worth procuring articles before their actual requirement date shortly before their prices change.

Investment buying recognizes future changes to the purchase conditions (purchase prices, markdowns, and so on) and proposes that goods are procured, even if they are not required. The

© SAP AG of 157


system compares storage and service costs with the price advantages. If it makes economic sense, the system proposes you procure goods even if no demand exists for them. The deciding factor is the above-mentioned ROI.

The required minimum ROI can be defined at site level. If the actual ROI is greater than the required ROI, the system proposes procuring articles beyond their demand.

The main aim of investment buying is to procure the goods as late as possible and at the most favorable prices.

The Load building function is subdivided into 'automatic load building' and 'manual load building'.

In Load building, several purchasing documents (purchase requisitions, purchase orders) are grouped together to create full loads (wherever possible). This aims to achieve the following:

Minimum transport costs due to the optimized use of transport (heavy goods vehicles, for example).

Goods can be purchased at more favorable prices due to scaled conditions (related to a value scale at header level).

Vendor-specific constraints can be observed (minimum purchase order value, for example).

In Load building, purchase requisitions (or purchase orders) that derive from requirements planning and investment buying are processed in the same way as standard purchase requisitions and purchase orders from promotions.

The following scenarios are possible with load building:

One vendor uses one heavy goods vehicle to deliver goods from different purchase orders to one site.

Several vendors use one heavy goods to deliver goods to one site.

One vendor uses one heavy goods vehicle to deliver goods to several sites.

Several vendors use one heavy goods to deliver goods to several sites.

Manual load building is possible in all four scenarios. Unlike manual load building, automatic load building can only be carried out in the first scenario (one vendor and one site).

Load building (manual and automatic) can only be carried out for vendors who have been assigned a restriction profile.

6.3.1 Quantity OptimizingWhen you enter purchase orders, sales orders and deliveries, you can have the system optimize the quantities to make the most out of agreements you have with customers or vendors granting you better conditions when you order complete logistics units (such as whole pallets).

Quantities are optimized in the following areas (also note the constraints):

Purchase orders

Allocation tables

Sales orders

Deliveries

Store orders

© SAP AG of 157


Consumption-based planning

Types of Quantity OptimizingThe quantity optimizing function rounds off quantities you enter according to rules that are predefined in Customizing. You can round up or down. The system can also take different units of measure of an article into account.

In a rounding profile in Customizing, you can define the rules according to which values are to be rounded. If a rounding profile is entered in purchasing or sales master data, the system rounds off quantities when documents are processed.

© SAP AG of 157


6.3.1.1 Article Master Data

Procedure












PCS-04-ORB201(Food)

select one article. For Fashion: in this case you use a single article and NOT variants




PCS-V201(Food)

Distribution centre VZ01

View Basic data

Choose Enter Display the units of measure and subordinate units of measure (pieces, cardboard boxes, palettes).

Do not make any changes and write down the different unit of measures f. e. 1 CT = 10 EA

© SAP AG of 157


Var. Order Unit 1

Var. Order Unit “Purchasing” tab 1

Rounding Profile PC03

3. Choose Back.

© SAP AG of 157



UseThis example shows you how rounding is carried out for a purchase order using the rounding profile.

A dynamic rounding profile is used to optimize rounding (see the Customizing Guide). If you have a large number of articles, it is best not to calculate requirements too precisely (for example, 288 pieces); instead, use a higher logistics unit (3 palettes, for example). In this way, the purchase order quantity can be rounded up or down to the next unit due to automatic rounding in the purchase order,








2. On the “Create Purchase Order” screen, make the following entries:





PCS-V201(Food)

Doc. date Today

Go to “Org.data” tab Possibly: expand Header

Purch. Organization

1000


Company Code 1000

Choose Enter. Possibly: expand ITEM OVERVIEW

© SAP AG of 157




PCS-04-ORB201(Food)

PO quantity <e.g. 102> Please choose an order quantity, which will use the rounding rule.

OUN EA

Site VZ01


3. Choose Enter.

4. Message “Order quantity violates rounding rules” appears.

5. Choose Enter. (PO quantity: for example, 10 cartons)

6. Accept all messages, f. e. “Can delivery date be met?” by choosing Enter.

7. Choose Save.

8. Choose Exit.

© SAP AG of 157


6.3.1.3 Non-Application-Specific Simulation of Rounding Profiles

Procedure1. Access the transaction using the following navigation:

SAP Menu Tools Accelerated SAP IMG Edit Project

Transaction code SPRO

2. Choose Display SAP reference IMG.

3. Access the transaction using the following navigation:

IMG Menu Materials Management Purchasing Order Optimizing Quantity Optimizing and Allowed Logistics Units of Measure Maintain Rounding Profile

4. In the dialog box, enter PC03 in the field “Rounding profile”.

5. Choose Display.

6. On the “Display Dynamic Rounding Profile” screen, choose Simulation.

7. Make the following entries:




PCS-04-ORB201(Food)

8. Choose Execute interval SIMU.

9. Choose Cancel twice.

10. Choose Exit.

ResultA new window appears containing the results of the simulation.

© SAP AG of 157


6.3.2 Investment BuyingInvestment buying helps you determine future requirements resulting from purchase price increases that are to be covered by external procurement. The purpose of investment buying is to purchase the right articles in reasonable quantities in good time and at the lowest possible prices.

You can use the 'Investment buying requirements determination' function to determine condition changes that are relevant to investment buying (increases in net prices based on average purchase order quantities). The system uses this data and the results of a return on investment analysis to calculate when and how many articles it is worth procuring before the actual requirements date.

To determine the best possible quantity to buy, the system compares the current stock on-hand, the forecast requirements and the cost of ordering, transporting and storing the goods in a calculation based on return on investment (ROI). The system works out whether it is worthwhile procuring articles before they are actually required, and, if so, when and how many. If the return-on-investment is greater than the calculated risk set in Customizing, SAP Retail automatically includes the quantity in the purchase order.

The purchase price of the article from your vendor will increase in the near future. For this reason, you want to make the necessary settings to start an investment buying run that is to provide you with an order proposal. This order proposal provides information on whether it is worth covering more than the actual demand for this article.

Investment buying can generate purchase requisitions or purchase orders as follow-on documents.

6.3.2.1 Factors that influence the ROICritical factors when the actual ROI is being calculated include:

Price changes (article / vendor)

Storage costs (article / site)

Service costs, ordering costs, warehousing costs (article / site)

Forecast values (article / site)

Shelf life, total shelf life, expiration date (article)

Terms of payment (vendor)

6.3.2.1.1 Required ROI

UseTo use the investment buying function, you first have to assign the required ROI to your distribution center.



SAP Menu Logistics Master data Site data Site Change

Transaction code WB02

© SAP AG of 157



Business role (name) SAP_BP_RT_MASTERDATA-S (Retail Masterdata Manager)

Business role menu Site Sites Change Site

2. On the “Site Change: Initial Screen” make the following entries:


Site VZ01

button Choose Site, general

ROI required ”Purchasing Distribution” tab

Choose a value between 20 and 30.

3. Choose Save.

4. Choose Back.

© SAP AG of 157


6.3.2.1.2 Storage Costs

UseThe storage costs are maintained for each volume unit (m³) and week. Since the system calculates the storage costs in m³, you have to enter the article volume so that the system knows how large the required volume will be for a particular number of articles. You can display / change the article volume as follows:

Procedure










Article PCS-01-INV141(Fashion)

PCS-01-INV421(Hard Goods)

PCS-01-INV331(Food)





PCS-V331(Food)


View Basic data

Choose Enter Display the units of measure and subordinate units of measure (pieces, cardboard boxes,

© SAP AG of 157


palettes).

Do not make any changes

RoundingProfile “Purchasing” tab PC03

3. Choose Save.

4. Choose Back.

© SAP AG of 157


6.3.2.1.3 Storage Costs Indicator

UseAssign the storage costs indicator to your article.

Procedure1. On the “Change Article” screen, choose Logistics distribution center view.

2. Choose MRP/FORECAST DATA.

3. On the sub-screen: Lot-size data, choose 2 for the field Storage costs indicator.

6.3.2.1.4 Service Costs

Use

The system compares storage and service costs with the price advantages. For this reason, you also have to maintain the storage and service costs. Ordering costs are due every time a purchase is made (irrespective of the lot size).

Procedure

1. On the sub-screen: Lot-size data, enter 10 for the field “Ordering costs”.

2. Choose Back.

3. Choose Save.

© SAP AG of 157


6.3.2.1.5 Shelf Life, Expiration Date (Food Only)

Procedure










Article PCS-01-INV331(Food)


Vendor PCS-V331(Food)


View Basic data

Choose Enter

Rem. Shelf life 100

Period indicator D

3. Choose Save.

© SAP AG of 157


6.3.2.1.6 Terms of Payment

Use

Call up the terms of payment for your vendor.

Procedure



SAP Menu Logistics Retailing Master Data Vendor data Edit Vendors Vendor Change Purchasing (Immed.)

Transaction code MK02


Business role (name) SAP_BP_RT_MASTERDATA-S (Retail Master Data Manager)

Business role menu Business Partner Vendors Change Vendor (Purchasing)

2. On the “Change Vendor: Initial Screen” make the following entries:




PCS-V331(Food)


Purchasing data Set flag

Choose Enter.

Terms of paymnt 0002

3. Choose Save.

© SAP AG of 157


6.3.2.2 Investment Buying Run

6.3.2.2.1 Future Price Changes

Use

Since the investment buying function identifies future purchasing condition changes (purchase prices, discounts, and so on), you have to define a price change for the near future. You carry this out in the article master.

Procedure












PCS-01-INV331(Food)

For Fashion: maintaining the price via the info record you change the price on header level ond NOT for the variants, PCS-01-INV141001 – 008. Accept you need a specific price for a variant




PCS-V331(Food)


© SAP AG of 157



View Purchasing

Choose Enter

Check the actual net price under conditions and note this price (e.g. 6 USD)

Choose Conditions. You will get a add. Screen “Validity periods:Conditions”

Choose New validity period

Validity periods

Valid from:

Valid to:

The day after your order date

12/31/9999.

Note the MRP date so that goods can be purchased before prices change (day of order: Monday)

Increase Net price by USD 5.

3. Choose Save.

Now, you need to have two validity periods.

From today until next Monday with for example, 6 USD;

from next Tuesday until 31.12.9999 with for example, 11 USD

If you don’t have this, choose [CONDITIONS] and [NEW VALIDITY PERIOD] and fill in the

missing period.

© SAP AG of 157



Use

A forecast can only be carried out if past consumption values exist for the article. The consumption values are normally updated by the system in the article master record when the article is removed from the warehouse and can be checked and, if necessary, changed before the forecast is carried out. You can also enter past consumption values manually (as described here) as base values for the initial forecast.

Procedure












PCS-01-INV331(Food)

For Fashion article, please for demonstration, enter for all variants forecast values (PCS-01-INV141001 – 008).


View Logistics distribution center

Choose Enter

Choose Consumption values.

Corrected Value 100 Per row

3. Choose Enter.

4. Choose Back.

© SAP AG of 157


5. Choose Save.

Before you start, you have to check whether purchase orders have already been generated for this article.











PCS-01-INV141(Fashion)


PCS-01-INV331(Food)

For Fashion use variants, PCS-01-INV141001 – 008

Site VZ01

If a number from the purchase order number range (45.....) is displayed here, carry out a goods receipt for this purchase order (transaction: MB01) and check the article stock (transaction: RWBE). Reduce it to 50 pieces.

Check the Initial Stock





© SAP AG of 157



Business role (name) SAP_BP_RT_ REPLENISHPLANNER-S (Retail Replenishment Planner)

Business role menu Replenishment Planning Stock Stock Overview





PCS-01-INV331(Food)

For Fashion use variants, PCS-01-INV141001 toPCS-01-INV141008

Site VZ01

10.Choose Execute.

The stock should be 50 pieces. For each variant it should be 50 EA.

11.Choose Exit.

If the stock is different, you can correct it as follows.



SAP Menu Logistics Retailing Merchandise Logistics Logistics execution Inbound Process Goods Receipt for Purchase Order, Order, Other Transactions Goods Receipt for Other Activities





13. On the “Enter Other Goods Receipts: Initial Screen” make the following entries:

© SAP AG of 157


6.3.2.2.3 Carry Out the Forecast

UseNow carry out the forecast.

Procedure












PCS-01-INV331(Food)

For Fashion use variants, PCS-01-INV141001 toPCS-01-INV141008, please carry out the forecast for all variants.



Choose Enter

Choose Execute forecast In Forecast Parameter section

3. Accept the message “Leave the radio-button setting as it is” by choosing Enter.

4. Choose Execute forecast twice.

5. Choose Accept...

6. Choose Save.

© SAP AG of 157


If you want to carry out the forecast for the same article again, you first have to set the indicator (X) in the Logistics: Distribution Center view ([MRP/forecast data] button) so that the system can initialize the data (scroll right to the bottom of the screen).

The initialization indicator is set automatically for an initial forecast. It specifies that model initialization is carried out during the forecast and that the system calculates the parameters required for a forecast model, such as the basic value, trend value, and so on

© SAP AG of 157


6.3.2.2.4 Requirements Determination Procedure in Investment Buying

UseThe system uses the requirements determination function to find out which articles can be considered for investment buying during a particular period. It only makes sense to run the report online if you narrow down the data to be processed to an absolute minimum. You would do this, for example, to determine requirements for an individual article.

Procedure



SAP Menu Logistics Retailing Purchasing Purchase order Order Optimizing Investment Buying Determining Requirements for Investment Buying

Transaction code WLB1



Business role menu Replenishment Planning Investment Buy Investment Buying Requirement Determination

2. On the “Determining Requirements for Investment Buying” screen, make the following entries:


Vendor “InvBuy Data” tab

PCS-V141(Fashion)


PCS-V331(Food)



PCS-01-INV331(Food)


Site VZ01

Site cat. For req. determin

“Controls” tab B

Terms of payment for ROI

1

© SAP AG of 157


Create POS instead of pur.reqs

‘X’ Leave any other settings as they are.

Include generic article variants

‘X’ Only relevant for the fashion generic article

3. Choose Execute.

In the "Investment Buying Processing Log" screen, you can see the parameters and the result of requirements determination in investment buying: current price, future price, available stock, open purchase order quantity, forecast quantity per week, ROI, and the number of the follow-on document (purchase requisition or purchase order).

Make a note of the purchase order number 450000

You can call up the follow-on document as follows:

4. Select item and choose Display documents.


If no worklist had been generated, run the Report Program 'RMEBEIN4'. Then repeat this step.

© SAP AG of 157


6.3.2.3 Alternative: Simulate an Investment Buying Run

6.3.2.3.1 Future Price Changes

Use

Since the investment buying function identifies future purchasing condition changes (purchase prices, discounts, and so on), you have to define a price change for the near future. You carry this out in the article master.

Procedure












PCS-01-INV331(Food)

For Fashion: maintaining the price via the info record you change the price on header level ond NOT for the variants, PCS-01-INV141001 – 008. Accept you need a specific price for a variant




PCS-V331(Food)


© SAP AG of 157



View Purchasing

Choose Enter

Choose Conditions. You will get a add. Screen “Validity periods:Conditions”

Choose New validity period

Check actual net price and note this price (e.g. 11 USD)

Validity periods

Valid from:

Valid to:

The day after your order date

12/31/9999.

Note the MRP date so that goods can be purchased before prices change (day of order: Monday)

Amount Increase Net price by USD 5.

3. Choose Save.

Now, you need to have two validity periods.

from today until next Monday with e. g. 6 USD

from next Tuesday until 12/31/9999 with for example, 11 USD

If you don’t have this press [CONDITIONS] and [NEW VALIDITY PERIOD] and fill in the missing period.

You should call up the purchase prices for your article for a particular period. By choosing the following menu path, you can check whether the purchase price of one of your articles will increase








© SAP AG of 157






PCS-01-INV331(Food)





PCS-V331(Food)


View Purchasing

Choose Enter

Choose Conditions.

6. Double-click any validity period and choose Validity period.


© SAP AG of 157



Use

A forecast can only be carried out if past consumption values exist for the article. The consumption values are normally updated by the system in the article master record when the article is removed from the warehouse and can be checked and, if necessary, changed before the forecast is carried out. You can also enter past consumption values manually (as described here) as base values for the initial forecast.

Procedure












PCS-01-INV331(Food)




Choose Enter

Choose Consumption values.


3. Choose Enter.

4. Choose Back.

5. Choose Save.

© SAP AG of 157


Before you start, you have to check whether purchase orders have already been generated for this article.



SAP Menu Logistics Retailing Purchasing Requirements Planning Planning File Entry Stock/Requirements List








PCS-01-INV141(Fashion)


PCS-01-INV331(Food)


Site VZ01

If a number from the purchase order number range (45.....) is displayed here, carry out a goods receipt for this purchase order (transaction: MB01) and check the article stock (transaction: RWBE). Reduce it to 50 pieces.







Business role (name) SAP_BP_RT_ REPLENISHPLANNER-S (Retail Replenishment Planner)

© SAP AG of 157


Business role menu Replenishment Planning Stock Stock Overview





PCS-01-INV331(Food)


Site VZ01

10. Choose Execute.

The stock should be 50 pieces. For each variant, 50 ea.














Site VZ01


© SAP AG of 157



Choose Enter.



PCS-01-INV331(Food)

For Fashion use variants, PCS-01-INV141001 to PCS-01-INV141008

Quantity <..>

UNE EA

14. Choose Post.


© SAP AG of 157


6.3.2.3.3 Carry out the forecast

Use












PCS-01-INV331(Food)

For Fashion use variants, PCS-01-INV141001

to PCS-01-INV141008



Choose Enter

Choose Execute forecast

3. Accept the message “Leave the radio-button setting as it is” by choosing Enter.


5. Choose Copy.

6. Choose Save.

© SAP AG of 157



The initialization indicator is set automatically for an initial forecast. It specifies that model initialization is carried out during the forecast and that the system calculates the parameters required for a forecast model, such as the basic value, trend value, and so on

© SAP AG of 157


6.3.2.3.4 Return on Investment

Use

Before you actually start investment buying, SAP Retail allows you to simulate an ROI-based order proposal for the actual purchase price change. In the initial screen, you can enter the actual price and simulate a price increase by entering a higher future price. You can also define the validity period for this price increase.

Procedure



SAP Menu Logistics Retailing Purchasing Order Optimizing Investment Buying Investment Buying Simulation



Business role (name) SAP_BP_RT_REPLENISHPLANNER-K (Retail Replenishment Planner - Power User)

Business role menu Replenishment Planning Investment Buy Investment Buying Simulation

2. On the “ROI-Based PO Proposal for Purchase Price Changes” screen, make the following entries:




PCS-V331(Food)




PCS-01-INV331(Food)


to PCS-01-INV141008


Current price <Price>

Future price Future price increase

Last day before Date day of order is daily

© SAP AG of 157


price change

Future price end date

Date for example, end of year

3. Choose Execute.

The system generates an ROI-based order proposal for purchase price changes. It also proposes the recommended coverage period, the calculated ROI, and the ROI requirements quantity.

4. Choose Generate purchase order.

On the basis of the parameters defined in the system, an order proposal has been generated that you can convert directly to a purchase order


ResultDocument creation being started..Standard PO created. Make a note of the number 45000.

© SAP AG of 157


6.3.2.3.5 Investment Buying Analysis

Use

To carry out an investment buying analysis, choose the following menu path

Procedure



SAP Menu Logistics Retailing Purchasing Purchase order Order Optimizing Investment Buying Investment Buying Analysis



Business role (name) SAP_BP_RT_REPLENISHPLANNER-K (Retail Replenishment Planner - Power User)

Business role menu Replenishment Planning Investment Buy Investment buying analysis

2. On the “Investment Buying Analysis” screen, make the following entries:




PCS-V331(Food)

Site VZ01



PCS-01-INV331(Food)


to PCS-01-INV141008

Display all log entries, also for

‘X’

3. Choose Execute.

4. Choose one record and choose Display document.

5. Choose Back.

6. Choose Stock overview.

© SAP AG of 157


6.3.2.4 Goods Receipt in the Distribution Center

Use

In the following section, the goods receipt is posted with reference to the purchase order.










Movement Type 101

Purchase Order Purchase order of 6.3.2.2.4/ 6.3.2.3.4

Site VZ01


3. Choose Enter.

4. Choose Save. If necessary, please insert best-before date and accept all messages with Enter.

5. Choose Back.

© SAP AG of 157


6.3.3 Load BuildingLoad building is used to:

Minimize transport costs by making best possible use of the means of transport (for example, ship, rail freight container, truck).

Reduce stock on-hand as much as possible by ordering as late as possible.

Achieve more favorable purchase price conditions by ordering whole truck loads, for example.

To help you do this, SAP Retail attempts to optimize quantities for procurement and converts existing purchase requisitions to purchase orders, if necessary generating new purchase orders (for example, if the range of coverage is increased). Several purchase orders are combined in a load under the one collective number.

In making its calculations, the load-building function does not take any scales, free-goods discounts or any quantities and values agreed in contracts into account. If, for example, a contract has been agreed for 50 cartons with a value of € 10,000, the terms of the contract would not be complied with if the range-of-coverage calculation made in load building resulted in higher quantities.

6.3.3.1 The Individual Forecast

UseA forecast can only be carried out if past consumption values exist for the article. The consumption values are normally updated by the system in the article master record when the article is removed from the warehouse and can be checked and, if necessary, changed before the forecast is carried out. You can also enter past consumption values manually (as described here) as base values for the initial forecast.

Procedure








© SAP AG of 157






PCS-04-ORB201 (Food)



Choose Enter

Choose Consumption values


3. Choose Enter.

4. Choose Back.

5. Choose Save.

6. Choose Logistics distribution center view.

7. Choose Enter.


9. Accept the message Leave the radio-button setting as it is by choosing Enter.


11. Choose Copy.

12. Choose Save.

13. Choose Logistics distribution center view.

14. Make the following entries:


Period indicator W

Last forecast Date

15. Choose MRP/Forecast data. Check the article data.

16. Choose Back.


The initialization indicator is set automatically for an initial forecast. It specifies that model initialization is carried out during the forecast and that the system calculates the parameters required for a forecast model, such as the basic value, and trend value.

© SAP AG of 157


6.3.3.2 Carry Out Single-Level, Single-Item Planning

UseBefore you start, you have to check whether purchase orders have already been generated for this article.

Procedure











PCS-04-ORB142(Fashion)



Site VZ01

If a number from the purchase order number range (45.....) is displayed here, carry out a goods receipt for this purchase order (transaction: MB01) and check the article stock (transaction: RWBE). Reduce it to 100 (Fashion article to 50) pieces.






© SAP AG of 157



Business role (name) SAP_BP_RT_ SAP_BP_RT_REPLENISHPLANNER-S (Retail Replenishment Planner)

Business role menu Replenishment Planning Inventory Lookup Stock Overview






Site VZ01

5. Choose Execute.

The stock should be 100 pieces (Fashion article 50 pieces).Choose Back three times.












'502' Receipt w/o purchase order into warehouse –

© SAP AG of 157


reversal

Site VZ01


Choose Enter.




Quantity <..>

UNE EA

8. Choose Post.


To plan the article for your distribution center, trigger requirements planning in your distribution center. For single-item planning, you always plan using the parameters that are entered in the initial screen, that is, the creation indicators determine the result of the planning run.



SAP Menu Logistics Retailing Purchasing Requirements planning Requirements planning Sng-item, sng-level




Business role menu Replenishment Planning Planning RP-Individual Planning-Single Level

11. On the “Single-Item, Single-Level” screen, make the following entries:





Site VZ01

Processing key NETCH

© SAP AG of 157



Create purchase req. 1

Delivery schedules 1

Create MRP list 1

Planning mode 3

Scheduling 1

Planning date Today's date

Display results before they are saved

’X’

12. Choose Enter.

13. Accept the message “Check input parameters” by choosing Enter.

14. Choose Save.

15. Choose Back.

© SAP AG of 157


6.3.3.3 Convert the Purchase Requisition to a Purchase Order











PCS-04-ORB142(Fashion)



Site VZ01

3. Choose Enter.

4. Double-click on Purchase requisition.

5. Choose Convert purchase requisition to purchase order.

6. Possibly make the following entries.


Purchasing Org. 1000 Possibly



PCS-V201(Food)

Company code 1000

7. Select the open purchase requisition on the left in the document overview and drag it to the shopping basket on the left next to 'Standard purchase order'

8. Choose Enter.

9. Choose Save and ignore (if necessary) warn messages with Enter.

© SAP AG of 157


6.3.3.4 Automatic Load Building

UseTo add purchase orders (and purchase requisitions) to loads automatically, which fulfill the criteria of a particular restriction profile, proceed as follows.



SAP Menu Logistics Retailing Purchasing Purchase order Order Optimizing Load Building Automatic Load Building




Business role menu Replenishment Planning Order Optimizing Automatic Load Build

2. On the “Automatic Load Building” screen, make the following entries.


Vendor “Load building combination” tab

PCS-V141(Fashion)


PCS-V201(Food)

Purch. Organisation 1000

SIte VZ01

Control of document creation

“Control parameters“ tab

01 Simulation without document creation

Site category B (DC)

Released purchase orders

'X'

Active log for LB run 'X'

3. Choose Execute.

4. Ignore the message.

© SAP AG of 157


6.3.3.5 Load Building Results ListYou evaluate the results of automatic load building using a results list and if necessary build loads manually.

You can display the result of automatic load building as mentioned below.

ProcedureThe result of the automatic load build run can displayed as follows:

1. Choose List of Results.



SAP Menu Logistics Retailing Purchasing Purchase order Order Optimizing Load Building Results List for Load Building




Business role menu Replenishment Planning Order Optimizing Results List for Load Build

3. On the “Results List for Automatic Load Building Run” screen, make the following entries.




PCS-V201(Food)

Site VZ01

Purch. Organisation 1000

4. Choose Execute.

5. On the screen “Results list for automatic load building run“, you see a list of all load build runs for the parameters you have entered in the initial screen.

6. Choose Double line display.

7. Choose Back two times.

© SAP AG of 157


6.3.3.6 Manual Load Building

UseBefore building loads manually, you must ensure that more than one purchase order has been generated and restriction profiles have been maintained. Manual load building can only be carried out for purchase orders and not purchase requisitions

Procedure



SAP Menu Logistics Retailing Purchasing Purchase order Order Optimizing Load Building Manual Load Building




Business role menu Replenishment Planning Order Optimizing Manual Load Build

2. On the following screen “Combine a Number of POs to Create a Collective Purchase Order”. You have a choice of different selection criteria. You can choose one of more vendors, one or more distribution centers, a certain number of purchase orders, and so on.

You now want to combine vendor purchase orders to fulfill the conditions specified in the restriction profile.

3. Make the following entries.




PCS-V201(Food)

Site VZ01

Site category B

Include released POs ‚X’

Purchasing Organization

1000

Profile number PCS1

Purchase orders Mark

© SAP AG of 157


4. Choose Execute.

5. Select row with Order Flag ‚OK’ (PO of 6.3.3.3)

6. Choose Edit Refresh Restrictions from the menu bar.

If all “traffic lights“ are green, the load fulfills the restriction criteria.

All purchase orders with the same collective number are combined in one load.

7. Choose Save.

8. Accept the message “All restrictions are met, Do you want to combine purch. Orders?” by choosing Enter

9. Display (or print) the purchase orders that are combined under one collective number.

10. Choose Back.

© SAP AG of 157


6.3.4 Goods receipt capacity checkUntil now the process of the purchase order generation did not consider the capacity area of the goods receipt at a warehouse. Up until now, the buyer created the purchase order without knowledge about the follow-on processes. The buyer would not know whether the capacity at the goods receipt was sufficient for processing the incoming merchandise.

With this business function, a capacity check is included with purchase order creation.

The buyer is informed if the capacity at the warehouse is insufficient for the specified date and the amount of merchandise for the particular goods receipt area.

Furthermore, the buyer can decide to move the receipt to another timeslot or to another goods receipt area if the capacity is not sufficient. If there is a capacity bottleneck, the buyer will receive an overview about the capacity at the goods receipt area during the purchase order generation.

This development improves the workload at the goods receipt area of a warehouse and optimizes the integration between the buying and the warehouse processes.


UseBefore using goods receipt capacity check functionality in the transaction of Purchase Order Creation, please check if all necessary prerequisites (see chapter 2.10) are fulfilled.

Procedure



SAP Menu Logistics Retailing Purchasing Purchase Order Purchase Order Create Vendor known

Transaction Code ME21N




2. On the Create Purchase Order screen, make the following entries:

Field name Description User action and values Comment


Vendor

© SAP AG of 157


PCS-V111(Fashion)

PCS-V411 (Hardgoods)

PCS-V201 (Food)

Doc.date <Current date>

3. Choose Expand Header and then choose the Org.data tab.

4. On the Org.data tab, make the following entries:



Purch. Group 101

Company Code 1000

5. In the Create Purchase Order screen area, make the following entries:



PCS-01-ART413 (Hardgoods)

PCS-01-ART203 (Food)

PO Quantity 100

Delivery Date <…> Please take a day which is not used in TA: WGRC1 as vendor delivery day

Site VZ01

Storage Loc. 1001

6. Choose Enter.

7. Now the message appears: No time window assigned for site VZ01 and storage location 1001.

The capacity check for goods receiving is activated in the system. The system was not able to automatically find the corresponding delivery time for the desired delivery date. Now you have to carry out the capacity check for the delivery date and assign the desired time to it.

© SAP AG of 157


8. Choose button (GR: capacity check).

9. Choose now button occupation plan to get an overview of the planned occupation.

10. Choose back.

11. If you want to have a look to the actual occupation situation then press button .

12. Choose back

13. Select now a time slot on the time window screen

The planned delivery day is marked with bold letters. Red marked slots are showing scheduled orders. To get an overview for next week you can use the arrow button.

14. After you have marked the time slot, choose button Select TB Profile. Confirm message Items with delivery date XX/XX/XXXX assigned to delivery date XX/XX/XXXX, time XX:XX:XX

If the delivery date is scheduled on a planned date, the time stamp can’t be removed. If you have choose a time slot which wasn’t intended for your vendor, you will get the message Assignment of door / area data does not correspond to settings.

15. Choose Save and ignore messages.

6.3.4.2 Create Goods Receipt in Distribution Center

Use

In the following section, the goods receipt is posted with reference to the purchase order.








© SAP AG of 157




Movement Type 101

Purchase Order Purchase order See chapter 6.3.4.1

Site VZ01


3. Choose Enter.

4. Choose Save. If necessary, please insert best-before date and accept all messages with Enter.

5. Choose Back.

© SAP AG of 157


7 Purchase Order MonitoringAs the person responsible for purchasing, you will want to gain an overview of your vendors and purchasing organizations from time to time. For example, you want to find out:

Which purchase orders were made with a particular vendor in a particular period.

For how many purchase orders, have goods already been received.

Whether a vendor has made a full or partial delivery.

Whether a vendor meets deadlines.

7.1 Requirements Planning WorkbenchSee also Chapter 6.2.

7.2 Display Open Purchase Orders

UseYou can run reports analyzing purchase orders according to a variety of criteria. A number of different analyses are available in the system:

List displays for the vendor, article, merchandise category, and supplying site.

Analyses according to purchasing group, merchandise category, for example.

You can display open purchase orders, although you have to choose a suitable scope of list. You can set the scope of the list by choosing the following Transaction Code: SPRO SAP Reference IMG Materials Management Purchasing Reporting Maintain Purchasing Lists Scope of List Define Scope of List. Choose Item “Best” and press Detail.

Procedure



SAP Menu Logistics Retailing Purchasing Purchase order Purchase order List Display By Vendor

Transaction code ME2L

2. On the “Purchasing Documents per Vendor” screen, make the following entries.



PCS-V431 (Hard Goods)

PCS-V201 (Food)

3. Choose Execute.

© SAP AG of 157


4. Choose a purchase order.

5. Choose Display document.

6. Choose Back.

7. Choose Print review.

8. Choose Back.

9. Choose a purchase order item

10. Choose Display delivery schedule.




Business role menu Non-Seasonal Purchase Management Purchase Orders

1. In the List Area of the Powerlist you can see in tab ‚My open Purchase Orders’ all with your User created Purchase Orders.

2. If you want to display (or search) for a special vendor, please click on Filter.

3. You will get a new empty line in the List Area. The vendor, which you look for could now be entered under vendor f. e. “PCS-V431” (please note in our case the double quotation marks) and confirm with Enter.

4. If you want to delete the filter, please click on button Delete Filter.

5. If you want to look at the details of a Purchase Order, click on the Purchase Order in the List Area. Now you can choose button Display Purchase Order. You have the possibility (see Option 1, step 8 – 10) f. e. to see the schedule line of your Purchase Order.

7.3 Display Status Data for the Purchase Order Header

UseThe purchase order header contains information relating to the entire document (total purchase order value, for example).

Procedure



SAP Menu Logistics Retailing Purchasing Purchase order Purchase order Display


2. On the “Display Purchase Order” screen choose Document overview on.

© SAP AG of 157


3. Choose My purchase orders under the “Selection variant” section. Then double-click on the purchase order number.

4. Go to “Status” tab.



Business role menu Non-Seasonal Purchase Management Purchase Orders

1. Click in the power list on tab My Purchase Orders.

2. Click on a Purchase Order in the List Area and then choose button Display Purchase Order.

3. Go to Status tab. Here you can see f. e. if the delivery is completed.

7.4 Display the Purchase Order History

UseAll transactions for a purchase order item (goods receipts and item invoice receipts) are documented in the purchase order history. This is a dynamic tab that is only displayed when a purchase order history exists for the document.

Procedure1. Expend item details.

2. Go to “Delivery schedule” tab.

3. Choose Back.

© SAP AG of 157


8 Vendor EvaluationThis section shows you how vendor evaluations can be used to optimize goods procurement.

Vendor evaluation makes it easier for you to choose supply sources and continuously monitor existing supply relationships. It provides accurate information on the best prices, terms of payment and delivery, thereby helping you maintain your competitive edge. You can identify any problems that might arise in the procurement process and use the detailed information available to solve these problems with the vendor in question.

The main evaluation criteria are:

Price Quality Delivery Service

The following section illustrates vendor evaluation using the semi-automatic scoring method (relating to different materials at info record level), since no historical data is available for automatic vendor evaluation.

You need a scoring range so that you can evaluate the relative performance of a vendor. Vendor evaluation offers a three-tier scoring system from 1 to 100, which you can use to compare your vendors. You can enter scores for sub-criteria per article and vendor at info record level. The system uses these scores for vendor evaluation.

8.1 Initial Maintenance of Vendor Evaluation

UseYou have to assign a weighting key to vendors who have not yet been evaluated. The weighting key is an abbreviation under which the weighting shares for a group of main criteria are grouped together and saved. The system can calculate the overall score on the basis of the weighting key and the main criteria.

To make it easier to maintain the criteria that you need to execute vendor evaluation, initial maintenance is carried out using the following CATT. You are advised to carry this out in a second session.


SAP Menu Tools ABAP Workbench Test Test Workbench Test Tools SECATT - Extended CATT

Transaction code SECATT

2. On the “Extended Computer Aided Test Tool: Initial Screen”, make the following entries.


Test Configuration Z_US_VENDOR_EVALUATION

Choose Execute.

© SAP AG of 157



Error behaviour “Shared” tab ‘S No Termination, Continue with Next Script Command’

Change Path “Variants” tab Navigate to the directory, where your variant-files are stored

Selection Select the lines

Fashion: ‚10003’

Food: ‚30005’

Hard Goods: ‘40003'

Start mode for command TCD

“UI Control” tab

‚N Process in Background, synchronous local’

Choose Execute.

Choose Back.

3. Now you are able to control or maintain the evaluation record with the Transaction ME61. In the next step a new evaluation record for another vendor of this article will be created.


Test Configuration Z_US_VENDOR_EVALUATION

Choose Execute.

Error behavior “Shared” tab ‘S No Termination, Continue with Next Script Command’

Change Path “Variants” tab Navigate to the directory, where your variant-files are stored

Selection Select the lines

Fashion: ‚10004’

Food: ‚30006’

Hard Goods: ‘40004'

Start mode for command TCD

“UI Control” tab

‚N Process in Background, synchronous local’

4. Choose Execute.


Result

The evaluation record was changed.

8.2 Automatic Reevaluation

UseThe automatic reevaluation function allows you to update the automatic and semi-automatic sub-criteria for a vendor. This enables you to reevaluate the scores for a vendor and observe how a

© SAP AG of 157


vendor’s scores have changed since the previous evaluation. The scores from the previous evaluation that have been maintained manually (by CATT) are included unchanged in the calculation to ensure that the results remain comparable. The system provides you with a comparison of the old and new scores for all automatic and semi-automatic sub-criteria. If required, you can replace the old scores with the new ones.

To begin with, you will not find any old scores in the display because the evaluation is being carried out for the first time.The organizational level at which vendors are evaluated is the purchasing organization. Each purchasing organization evaluates the vendors that it has been assigned.

Procedure



SAP Menu Logistics Retailing Master data Vendor Data Vendor Evaluation Automatic New Evaluation




Business role menu Non-Seasonal Purchase Management Vendors Evaluation of Automatic Subcriteria

2. On the “Calculate Scores for Semi-Automatic and Automatic Subcriteria” screen, make the following entries.




PCS-V201 (Food)

Purchasing organization

1000

3. Choose Execute.

4. Choose All logs and choose Back.

5. Choose Save. Evaluation record changed.

6. Choose Back.

© SAP AG of 157


8.3 Maintain the Vendor Evaluation Manually

Use

You can subdivide each main criterion into several sub-criteria to ensure that the detailed evaluation remains clear. Sub-criteria are the smallest units for which vendor evaluation scores are calculated.Now maintain the criteria created using the CATT manually in such a way that certain sub-criteria change. You can then carry out a reevaluation as described under point 8.2. The relevant sub-criteria are not maintained in the following example, since the main criterion of performance applies to services.

Procedure

Maintain the criteria as follows:



SAP Menu Logistics Retailing Master data Vendor Data Vendor Evaluation Maintain




Business role menu Non-Seasonal Purchase Management Vendors Maintain Vendor Evaluation

2. On the “Maintain Vendor Evaluation: Initial Screen” make the following entries.


Purchasing Organization

1000



PCS-V201 (Food)

Choose Enter.

Weighting key 02 Unequal Weighting

Choose Main criteria

Price level 50

© SAP AG of 157



Price behavior 30

Choose Enter. main criterion 01 will be computed

Choose Next main criteria

GR inspection 40

Rejection/complaint 50

Audit 40



On-time delivery 60

Quantity reliability 60

Shipping instructions 50

Adheres to confirmation date

40



Service quality 70

Reliability 70


3. Choose Save. Evaluation record changed

4. Choose Back.

5. Repeat the above steps with:

Vendor PCS-V142; PCS-V432 and PCS-V202,

Price level: 70, Price behavior: 40,

Goods receipt inspection: 70, Complaint: 60, Audit: 70,

On-time delivery: 80, Quantity reliability: 85, Shipping instructions: 75, Adheres to confirmation date: 55,

Service quality: 80, Reliability: 95.

© SAP AG of 157


8.4 Analyses Relating to Vendor Evaluation

8.4.1 Comparison of Evaluations

Use

The evaluation comparison is an analysis that compares the general evaluation of a vendor with his evaluation regarding a particular article. This analysis differs from the others insofar as it offers a more detailed evaluation of vendors without comparing them with other vendors. Instead, the overall evaluation calculated using the scores of vendors of all materials is compared with the evaluation that the vendor would be awarded if the evaluation were based only on a particular material.

Procedure



SAP Menu Logistics Retailing Master data Vendor data Vendor Evaluation Compare Evaluations



Business role (name) SAP_BP_RT_NONSEASBUYER-E (Retail Non-Seasonal Purchaser – Manager)

Business role menu Non-Seasonal Purchase Management Vendors Display Evaluation Comparison

2. On the “Evaluation Comparison” screen, make the following entries.




PCS-V201 (Food)


‘1000

Article PCS-04-ORB142 (Fashion)

PCS-04-ORB431 (Hard Goods)


3. Choose Execute.

4. Choose Evaluation.

© SAP AG of 157


5. Place cursor on price and choose Detail.

6. Choose Back.

7. Place cursor on line 01 Price and choose Goto Graphic from the menu bar.


© SAP AG of 157


8.4.2 Rank Lists

Use

The ranking list displays your vendors in descending order according to their overall score. This provides you with an at-a-glance view of the best-ranking vendors. As well as the overall score, the scores for the various main criteria are also displayed.

Procedure



SAP Menu Logistics Retailing Master data Vendor Data Vendor Evaluation List Displays Ranking Lists




Business role menu Non-Seasonal Purchase Management Vendors Display Ranking List of Vendors

2. On the “Ranking List of Vendors” screen, make the following entries.



1000

Vendor PCS-V141 to PCS-V142 (Fashion)

PCS-V431 to PCS-V432 (Hard Goods)

PCS-V201 to PCS-V202 (Food)

3. Choose Execute.

4. Choose Back.

© SAP AG of 157


8.4.3 Execute an Evaluation of the Article/Merchandise Category

UseThe evaluation list for the article/merchandise category gives you a list based on the analysis of a particular material or a particular merchandise category. This evaluation lets you see which vendors of a particularly important material receive a high, average, or low ranking.

Procedure



SAP Menu Logistics Retailing Master data Vendor Data Vendor Evaluation List Displays Evaluation per Article/Merchandise Category

Transaction code ME6B



Business role menu Non-Seasonal Purchase Management Vendors Display Vendor Evaluation for Article

2. On the “Ranking List of Vendor Evaluations Based on Material/Material Group” screen, make the following entries.



1000

Vendor PCS-V141to PCS-V142 (Fashion)

PCS-V431 to PCS-V432 (Hard Goods)

PCS-V201 to PCS-V202 (Food)

Article PCS-04-ORB142 (Fashion)

PCS-04-ORB431 (Hard Goods)


3. Choose Execute.

4. Choose Back.

© SAP AG of 157