Valuation: Revaluation for Local Markdowns
Use
In this case, stock has to be revaluated because the price of an article was marked down locally. Local markdowns are changes to the retail price of an article in a store. The changes are either made on the tickets or are entered at the point of sale (POS). The retail price as per the conditions in the central R/3 system is not changed. Depending on the revaluation profile, you can mark down local prices with or without revaluation at retail.
Features
Local Markdowns with Revaluation at Retail
If you want to carry out a revaluation for a local markdown, you have to inform the central R/3 system which articles and quantities were revaluated. Various options exist:
You call up head office about the markdown. A colleague then revaluates on-line.
The store is connected to R/3 via a terminal. A member of the store staff revaluates on-line.
When goods are sold at a reduced price, the reduced price has to be sent to the central system via the POS interface inbound. Since the merchandise has been revaluated, the goods issue (or sale) in the central R/3 system has to be valuated at the reduced price in order to ensure that valuation remains accurate.
Example
Valuation of goods issues with local markdowns and revaluation at retail
Situation |
Local price (per piece) |
Retail price condition (per piece) |
Total stock (pieces) |
Stock value (at retail) |
Before markdown |
2 |
2 |
100 |
200 |
10 pieces marked down |
1 |
2 |
100 |
200 |
10 pieces revaluated |
1 |
2 |
100 |
190 |
10 pieces sold at reduced price |
1 |
2 |
90 |
180 |
10 pieces sold at standard price |
2 |
2 |
80 |
160 |
If more than one sales units with different retail prices exist for an article and revaluations have been defined in the revaluation profile when prices are marked down locally, this can lead to inaccuracies in valuation at retail.
Valuation: Example of Valuation at Retail with Different Sales UnitsLocal Markdowns Without Revaluation at Retail
Depending on the revaluation profile, you can mark down the price of an article in a store without changing the retail valuation data of the stock in the central R/3 system.
When the sales data is processed at POS inbound, the system recognizes that the sale was made at a price lower than the retail price as per the conditions. Here the system valuates the goods issue in the central R/3 system at the retail price as per the conditions. The difference between the two prices is passed on to the Retail Information System (RIS) where it is used to document a price discount. The loss of revenue is posted to a separate account (as a discount).
Whether and to what extent the reason for the price difference is documented depends on the POS system used and the interface between the POS system and the Retail Information System (RIS). If RIS is updated from Billing, you can only maintain a certain amount of price discount types. You do, however, have the option of updating the RIS from the POS system. In this case you can create as many price discount types as the POS system allows. You can configure the type of update in Customizing.
Example
Valuation of Goods Issues with Local Markdowns and Without Revaluations
Situation |
Local price (per piece) |
Retail price condition (per piece) |
Total stock (pieces) |
Stock value (at retail) |
Before markdown |
2 |
2 |
100 |
200 |
10 pieces marked down |
1 |
2 |
100 |
200 |
10 pieces sold at reduced price |
1 |
2 |
90 |
180 |
10 pieces sold at standard price |
2 |
2 |
80 |
160 |
To be able to apply this method, you have to ensure that articles are entered in the cash register individually (and not on a merchandise category basis). Otherwise the price cannot be found from the conditions.