Contents of Unit
Organizational Structures for mySAP Retail Sites
Customers/Vendors Merchandise Categories Articles
Listing/Assortment Lists
Putting the Unit in Context
This unit introduces the basic concepts for the whole course: It explains the most important organizational structures and master data in mySAP Retail. At the same time, important terminology is defined to ensure that all the participants are talking the same language.
Name the main organizational structures in mySAP Retail
Explain the structure and the function of sites
Explain the basic concepts of articles in mySAP Retail
Basic Concepts: Overview
This slide shows the relationship between organizational structures and master data in mySAP Retail:
Distribution centers and stores are the units (sites) that plan and manage stocks and therefore have their own storage locations.
When articles are ordered for a site, a purchasing organization is always
responsible. The purchasing group groups the MRP controllers who carry out this process.
When a sale is made to a customer, this always occurs through a distribution chain. The sales organization is responsible for this transaction.
The article represents the object that is being traded. Different article data can be managed at organizational structure or site level – for example, purchasing data at the purchasing organization level, sales prices at distribution chain or site level.
Topic: Organizational Structures
In the following, the organizational structures are always explained theoretically based on a slide. The next slide usually shows the corresponding relationships at our model company Smart Retailer Inc.
Please point out that the client numbers in the slides were selected at random in the model company examples.
If your participants include experienced consultants for the SAP Standard System, you should also explain that SAP Retail primarily involves Materials Management (MM) and Sales and Distribution (SD) and also creates new connections between these areas that were not previously available. (For example, the link between purchasing and sales through the collective purchase order.)
You should also refer to the multilevel nature of mySAP Retail. Normally, SAP R/3 represents one level of the value chain. In this case, a company has a purchasing organization and a sales organization. In retailing (especially centrally controlled chain retail stores), however, more than one level of the chain is modeled. As a result, we have sales from the warehouse to a retail site (parallel to wholesale customers) as well as sales from the retail site to the consumer. This is reflected in the different distribution chains for these two levels.
There are also two types of distribution chains: wholesale and retail (see also Sites slide: Site Categories and Distribution Chain Categories.)
Franchise partners are always modeled as separate retail sites (logistics) and with a separate company code (settlement).
IDES Retail (Internet Demonstration and Education System)
Our model company (sites, vendors, customers) is based in the USA. This means that English texts will appear in some documents and messages and the VAT system used in Europe is not taken into consideration. This model company is currently being extended to include a German sector, however, it is not yet complete and therefore cannot be used for training.
Additional slides have been added to the overview slides describing our model company, which illustrate its organizational structures. The list is not exhaustive. It is simply intended to help the customer better understand the organizational structures.
Organizational Structures in Purchasing
The setup of the purchasing area means it is unnecessary to create lots of purchasing organizations (PurOrg).
Purchasing areas do not represent a data retention level and are only evaluated in the RIS (Retail Information System).
The reference purchasing organization can be used as a shared data retention level for multiple purchasing organizations, for example, by having them access the conditions of the reference purchasing organization.
Inventory Management at IDES Smart Retailer Inc.
Please explain that the distribution center in this example has several storage locations because several different processes in the storage area can be/have to be handled. Point out that you are not able to explain at this point why this is the way it is, but that this fact will become clear later in the course.
Organizational Structures in Sales
Point out that the distribution chain in SAP Retail is used in a similar way to the distribution chain in the SD module. Briefly explain that the sales area consists of the sales organization, distribution channel, and division, and that the division is set to a dummy value in SAP Retail. Explain that whenever you go into the
sales/distribution area, you will always be asked for the sales area.
Point out the importance of the distribution chain and emphasize that it can be used in SAP Retail to control sales prices – for example, different sales prices can be valid in a consumer distribution chain than in a wholesale distribution chain.
The assignment between purchasing organization and sales organization is usually determined through the site in which the sale takes place. The RIS (Retail
Information System) is updated through the documents that contain the site.
Internal Note:
You can also assign a purchasing organization to a sales organization in
Customizing. Please note, however, that this assignment is only used in SAP Retail in pricing if you are performing the costing for a distribution chain, and no reference site has been assigned to this distribution chain.
Topic: Sites, Customers and Vendors
Site: Master Data
This slide shows the screen structure of the site master. Point out at this stage that there are differences in the screen structure between the distribution center and the store. This is controlled using the site profile, which you have to enter when you create the site master. You can reconstruct this in the administration data
information button.
Site: Definition and Control
Emphasize at this point that a site can consist of multiple segments.
The site category is an attribute of the site profile.
Sites are always created with reference to a site profile.
Site profiles are intended to simplify maintenance, since unneeded fields (etc.) are not displayed at all.
The site profile is also associated with the template site and the account groups and templates for the customer and vendor segments. As a result, a great deal of data is proposed automatically when a new site is created.
No Customizing settings are associated with the site profile.
Distribution chain types Wholesale and Distribution Center are identical as of Release 4.5.
Internal/External Customer/Vendor
This slide should make clear the main differences between a distribution center and a store. The distribution center acts as an internal customer when it is supplied by an external vendor. However, it also takes on the role of an internal vendor when it gives merchandise to the stores belonging to the company. These stores can be seen as internal customers and contrast with the external customers, which can also be supplied by the distribution center. These do not belong to the company.
Demonstration: Site Master in SAP Retail
20 min
1. Enter the site master (TA WB02)
Master data Site data Site Display or Change
Site R314 (Store)
2. General data
Tab page Organization/Calendar, organizational dependence on distribution chain R300/R1,
Button [Distribution chains - site] = the distribution chains used for delivery by the site.
Briefly explain the tab pages Address, Valuation/Inv. mgmnt, and any others if you have time and the individual fields.
3. Merchandise Categories
Button [Merchandise categories], assignment to departments, you may want to use F1 help on column M (merchandise category-based inventory management) to show that you can enter a supplying site for each merchandise category.
4. Departments
Button [Departments]; receiving points can be entered here 5. Receiving points
Button [Receiving points], assignment to unloading points 6. Supplying site
Button [Supplying sites], a distribution center is maintained here 7. Customer segment
Button [Customer], indicates above all sales area data: Distribution chains through which the store can be supplied.
8. Change to a distribution center for the vendor segment ( TA WB02 )
Site Display or Change
Site R300 (DC)
Button [Vendor]
Refer to the purchasing organization data (assignment to PurOrg)
Exercise: Site Master in SAP Retail 20 min
Topic: Merchandise Categories
Merchandise Categories
The merchandise category from SAP Retail is also referred to as the base merchandise category.
Point out that the R/3 System can use copy templates at many different places in the system, and that SAP recommends that customers use these templates as often as possible. Therefore, it is important to maintain the template data carefully and thoughtfully.
Merchandise Categories and Hierarchies: Definitions
For characteristic inheritance to be free of conflicts, the merchandise category hierarchy must be a true hierarchy, not a grouping.
Point out the importance of setting the “Used for forming variants” indicator for characteristics that will be used to form collective articles.
Demonstration: Merchandise Category Hierarchy
10 min
1. Enter merchandise category data ( TA WG24 )
Master data Merchandise category data Merchandise Category Display
Merchandise category R1121 Button Merchandise category basic data
Here explain the merchandise category article, the merchandise category reference article and the arrangement of the merchandise categories in the merchandise category hierarchy
[Back],
explain the buttons Merchandise category reference article, Merchandise category article and Article overview
2. Merchandise category hierarchy display ( TA CL6C )
Master data Merchandise category data Environment Classification system Display hierarchy
Class R1100
Class type 026
Display Subordinate classes and (if necessary) Graphical display Show navigation in the hierarchy tree
Topic: Articles
If the time is available, we recommend holding a brainstorming session (using a flip chart or cards) to introduce this topic. Have the participants name the data that they think should belong to the article master. You can group this data according to how it is connected or by validity level (with regard to the views).
Article master data 1/3 to 3/3:
Point out that these are the standard views. They can be configured user-specifically using the configurable article master (see IRT310 for more information).
Also be sure to point out the importance of templates.
Describe the difference between the template site used to create a new site master and the template site for each distribution chain (which is important for the article’s logistics data). At this point, you can also mention the fact that the system can detect alternate article data that has been maintained.
For more information on this topic, see the online documentation under Article:
Templates.
Article: Units of measure
As of Release 4.6, the units of measure can also be defined hierarchically in the article master. For more information, see the online documentation under Article:
Maintaining the Unit of Measure in Accordance with the Packing Hierarchy.
Please note, however, that this activity does not create any stocks for the individual units of measure in SAP Retail. This is done with the concept of logistical variants.
For more information, see the online documentation under Article: Logistical Variant
Article: Data Retention Levels
This slide shows the different levels of the article master and navigation between these levels:
Explain that you can see which data retention level you are on in the header area of the article master.
If you do not enter a site in the views Logistics DC and Logistics Store, the reference site is opened in the background and all its settings apply to all sites. If you want to enter data explicitly for each site, you need to switch to site level by entering a site.
Demonstration of the article master in SAP Retail 20 min
1. Enter the article master ( TA MM42 )
Master data Article data Article Display or Change
Article R100000
Purchasing organization R300
Find vendor using F4 help: Creditors for article (R3000)
Sales organization R300 Distribution channel R1
Possible: Button [Validity area default settings]
Select all views
Possible: Button [Views default settings]
2. Basic Data
Explain units of measure (for example, F1 help on sales unit of measure, different units of measure possible for each distribution chain).
(Note: as of Release 4.6, the alternative unit of measure no longer has to be calculated from the base unit of measure but can also be calculated from another, previously defined alternative unit of measure.
Example: PC = 1 PC / BOX = 20 PC / LAG = 4 BOX / PAL = 5 LAG)
F1 help on EAN (EAN always refers to a specific unit of measure)
Merchandise category
Article type: controls whether internal or external number assignment is used, the number range intervals, selection of views, and whether inventory management is value-based or quantity-based
and possibly the minimum shelf life, and so on.
3. Listing
Assortment level (1 is entered here) Basic procedure (F4 help)
Button [Conditions], you may want to briefly show that you can enter article-specific conditions for a vendor by specifying a condition type and an amount
5. Sales
Validity area
Sales price calculation based on the purchase price Possibly explain the button [SP calculation]
Explain the Save calculated price flag
6. Logistics DC
Generally explain that the data for requirements planning, forecasting, physical inventory, and storage location is saved here
7. Logistics Store
Similar structure to Logistics DC, plus replenishment parameters
8. POS
Flags for cash register control, receipt texts
9. Article category and article type during article creation ( TA MM41 )
Article Create
Article type: F4 help, briefly mention several of the control functions (type of number assignment, field selection, valuation, quantity and value update) Article category: F4 help
10. Layout Workbench (optional, TA WLWB )
Master data Assortment/listing Layout Layout Workbench
Customer R314
[Execute] button or [F8]
Button [Expand all]
Press button [0000] under Version to see the article in the layout module (=
shelf)
You can branch to an external space management system by choosing Goto Space maintenance.
Article master in SAP Retail exercises 30 min
Listing (1-5)
Point out that when a store or a DC is created, an assortment with the same number is automatically generated in the background. These assortments can only be displayed; they cannot be maintained manually. The relationship between the site and the assortment is always 1:1.
Assortments for wholesale customers are created manually and manually assigned to these customers.
Explain SAP’s recommendation of using the automatic listing (for article maintenance) instead of the manual module formation. In addition to
performance reasons, manual module formation is extremely time-intensive when the assortments are short-lived, because the modules always have to be manually maintained afterwards.
Name the basic listing procedure and explain the merchandise category/assortment level checks using an overhead you draw yourself.
Point out that any combination of basic procedures can be used for a listing procedure, and that a customer exit (user exit) can be used to define additional, customer-specific procedures.
Briefly mention the possibility of listing using the Layout Workbench or external space management programs (see SAP Library for SAP Retail, Layout Workbench and IRT310).
Assortment Lists: Definition
The assortment list is used to inform stores about changes to the assortment (new/obsolete articles, price changes, promotions, for example). Assortment lists can be configured differently for every situation and assortment and they can be prepared in different media.
Unit: Requirements Planning and Warehouse Deliveries
390 min
Contents of Unit Requests and Quotations Planning
Purchase Order Shipping Notification Goods Receipt Invoice Verification Subsequent Settlement
Special Requirements Planning Procedures Putting the Unit in Context
The distribution center/head office plays the main role in this initial process.
In a distribution center, you want merchandise requirements to be planned and an order to be placed with an external vendor automatically whenever possible. To do this, we will now examine the two most important MRP procedures for retail (reorder point planning and time-phased materials planning) in more detail. The result of requirements planning is a purchase requisition.
In the next step, we will explain the conversion of the purchase requisition into a purchase order, together with the associated optimization options.
The goods receipt is posted when the merchandise is delivered to the warehouse. Possible preliminary steps include advance information by the vendor (such as a shipping notification, for example) and a rough goods receipt.
If the vendor sends an invoice for the delivered merchandise, that invoice is recorded and verified in the system. Differences between the target invoice (purely fictitious invoice created automatically by the system) and the actual invoice (vendor invoice) can be corrected.
Subsequent settlement (rebate processing) is explained as an extension of this process.
This unit also covers investment buying, perishables planning and online planning as possible starting points.
Procure merchandise from a vendor for a distribution center in SAP Retail.
Perform the following activities in particular:
Trigger forecast run and planning run; create vendor purchase orders manually;
create shipping notifications; post (rough) goods receipts; create and check vendor invoices, settle volume-rebate arrangements with vendors
Topic: Process Overview
Requests and Quotations: Linking
Additional information: Two business scenarios in which the request/quotation functionality could be used are:
Adding a new article to an assortment (to find a reasonably-priced vendor for this new article)
Elimination of the regular vendor of an article, for example, due to poor quality (in this case, a replacement vendor or new regular vendor has to be found)
Topic: Requirements Planning and Purchase Orders
Requirements Planning: Targets
Additional information: In contrast to manufacturing, it is critical that consumption-based planning is used in retail (as opposed to material requirements planning).
Requirements Planning: Procedure
Additional information: The (overall) planning run should be scheduled as a periodic background job by the R/3 system administrator, taking any other required
predecessor runs (such as the forecast run, for example) into account.
Requirements Planning: Overview
Additional information: The RP type plays a key role in requirements planning. It controls whether a forecast should be generated or not.
Requirements Planning: Methods and Types
Additional information: Different requirements planning methods are useful for retailers. The main ones are time-phased and reorder point planning.
Time-phased materials planning can be combined with reorder point planning. You can specify in the system, for example, that an article is always ordered for a
distribution on Mondays (RP frequency), as well as whenever the stock of that article in the distribution center falls below a defined reorder point.
The benefit of combining these two procedures will become clear after you explain the next two slides.
After slide Requirements Planning: Time-Phased Planning Demonstration of master data involved in requirements planning
10 min
1. Site master ( TA WB03 )
Master data Site data Site Display
Site T7##
[Enter]
Field Requirements planning must be active in tab Listing/MRP 2. Article master ( TA MM43 )
Master data Article data Article Display
Article TA03##
Select views Logistics, Distribution center [Enter]
Explain the requirements planning parameters, especially fields MRP type, MRP lot size, Forecasting model, and Period indicator
Show the additional requirements planning and forecast parameters using button [MRP/forecast data]
Be sure to point out the Past periods and Forecast periods fields.
Press [F3] to go back to the logistics data overview, and show the RP frequency (= ordering day) and delivery frequency (= delivery day) there.
If necessary, display the logistics data of your distribution center T7## (button [Validity area]).
Explain that the frequencies have to be defined and activated in Customizing, as calendars for each warehouse – this means periods have to be generated for the calendars.
Show the consumption and forecast values [Consumption values]
[Forecast values]
Demonstration of requirements planning run to the purchase order
15 min
3. Start requirements planning and trace the process ( TA MDW1 )
Purchasing Requirements planning Requirements planning Plan by vendor
Vendor/invoicing party TS1##
Purch. org. R300
Site T7##
[Enter], [Enter]
Select articles TA03## and TA04##
Requirements planning Interactive planning
Note: If at this point a planned order is suggested instead of the purchase requisition, go back to the selection and select:
Create purch. req.: 1 (fundamental purchase requisition) Explain the following fields:
Current stock: Column Avail. quantity into line Stock
Current stock: Column Avail. quantity into line Stock