Average Retail is a key figure used to convert value-based planning into quantity-based planning or vice versa in both manual and automatic planning.

The key figure defines the average price of all articles on an aggregation level. You can, for example, use Average Retail to calculate average prices for articles in merchandise categories.

The following planning characteristics can be used to aggregate data for Average Retail:

When calculating Average Retail, actual data for a particular time period is the basis of the calculation.

Various reference values exist in the standard System for calculating Average Retail:

Always use the base unit of measure when converting values into quantities. Note that Average Retail cannot be used effectively if different base units of measure are used for different articles.

In merchandise planning, you want to plan stocks for your merchandise categories based on value and quantity. Enter the planning data in € (EUR) and the System uses Average Retail (in this case, sales at retail) to convert the value data into quantities.

Calculating Average Retail:

In this example, last year is used as the time interval basis for calculating Average Retail. Last year, your company achieved total sales at cost of 100,000 € for all articles in the merchandise category for which planning is to be run. In total, 10,000 pieces of all articles in the merchandise category were sold.

Therefore, the Average Retail price (average price for the merchandise category) is:

100,000 € / 10,000 PC = 10 € per PC

The following example illustrates how to plan stock on a value and quantity basis (selected data is calculated by the system):