Ratios 

Use

When entering planning data manually, you use the Ratios method to valuate your quantity plan using reference prices (ratios).

A typical scenario could resemble the following:

  1. First you copy actual data or a plan version from the previous year to a reference version that you want to use as the basis for valuating your plan quantities.
  2. Then you modify this reference version using the manual and automatic planning methods until you get the desired plan prices for the coming year.

These prices are now available as an alternative to the pricing conditions from Sales and Distribution (SD) for changing and simulating planning data.

Technically, this plan version contains quantities and values from which the system dynamically calculates ratios (prices) at a given planning level. You determine which planning level the prices should be calculated on by specifying access characteristics for the individual ratios. That way you can calculate average prices at a summarized level, such as product groups. See also Example: Valuation of Quantity Plans Using Ratios. You enter access-level characteristics when you define ratios in Customizing.

  1. Now you can use these prices to valuate the quantities in your sales plan.
  2. Finally, you can use these separate plan versions to simulate price and quantity changes independently of one another.

If your reference version contains different prices in the different periods, the system always calculates a weighted average and uses this to valuate your plan quantities.

Prerequisites

To valuate your plan quantities using ratios, you first need to define the required ratios and a ratio scheme in Customizing for Profitability Analysis. You do this under Planning ® Planning Aids ® Define Ratios and Ratio Schemes. Assign these ratios to the ratio scheme in the desired order, and define access characteristics.

Activities

Plan your quantities for a product or group of products. To valuate these quantities using the prices in the reference version, select the rows you want to valuate and choose Edit ® Planning methods ® Ratio. Enter the desired ratio scheme and specify whether you want to valuate on the basis of plan or actual data.

 

See also:

Price Planning Using Ratios