Processing Revaluations at Retail 

Purpose

This process allows you to revaluate stock of an article valuated at retail when the retail price of the article changes.

In addition to managing stock at cost, retailers also manage stock at retail. This is referred to as the retail method. The retail value of the stock is often used for OTB planning or sales and operations planning. SAP Retail supports revaluation that affects margins as well as revaluation that does not affect margins. When revaluation does not affect margins, not only is the stock revaluated at retail, it is also revaluated at cost with the original margin remaining the same. It is often necessary to revaluate stock in this way to ensure that a price change at the time at which it is made is accurately reflected in Financial Accounting.

A distinction can be made between the following types of retail price changes that result in revaluation:

The retail price that is calculated using conditions is stored centrally in the time-dependent conditions. When this price changes, the total stock usually has to be revaluated. One reason for this might be that the store has suggested a change in the retail price and the price is then recalculated.

The promotion price is stored in the time-dependent conditions along with the standard retail price as a condition. The promotion price can be valid for the duration of a particular promotion.

Markdowns and markups are local changes in the price of an article that lead to a change in some or all of the stock of an article in a site. The site itself initiates the price change. The retail price calculated in the conditions is not changed.

If you transfer stock from one site to another, and the retail conditions in these sites differ, you usually need to carry out a partial revaluation at retail for the stock which is transferred.

If goods movements are valuated at the retail price valid on the posting date, this can lead to inaccuracies in the value at retail. Inaccuracies may occur if the posting date is different to the current date, the retail price has changed since the posting date, and the stock has since been revaluated.

The sum of the prices of the constituent components of a structured article is not always the same as the price of the structured article. To avoid differences in valuation at retail, you have to revaluate the inventory.

No separate revaluation is carried out for price changes that are only entered at the time of a sale. The stock accounts are corrected when the POS interface - inbound data is processed. Price changes made in this way are handled in SAP Retail as discounts.

Process Flow

  1. You can choose from the following revaluation methods:
  1. Depending on the method used, either you enter the data relevant to revaluation (site and article, for example) or the data is copied from the previous processes.

    2.  

  2. When applying the partial revaluation method and for articles managed on the basis of a value-only article, you enter the quantity to be revaluated. When applying the total revaluation methods and for articles managed on a quantity and value basis, the quantity is determined from Inventory Management.

    3.  

  3. Before the total stock of an article managed on a value-only basis can be revaluated, the stock must be counted. The stock is then revaluated using the partial revaluation function, with the total stock being entered.

    4.  

  4. Stock is revaluated for all the data entered or determined as described above and a retail revaluation document is created.

Promotional merchandise only has to be revaluated when it is not subject to split valuation and the revaluation profile is configured for this.

When articles are subject to price fixing, revaluations at retail are usually not possible.

Notes and Remarks