Value and Quantity-Based Planning (Average Retail)
Use
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 the average price of all articles for a merchandise category.
You have two options for using average retail:
Average Retail Using the Retail Information System (RIS)
The following planning levels (plan characteristics) can be aggregation levels for average retail:
|
Characteristics |
Description |
|
WGRU2 |
Merchandise category hierarchy level 2 |
|
WGRU1 |
Merchandise category hierarchy level 1 |
|
MATKL |
Merchandise category |
|
MATNR |
Article |
|
WERKS |
Site |
|
MERK1 , MERK2, MERK3 |
Characteristic 1 to characteristic 3 |
|
VRKME |
Sales unit |
|
MEINS |
Order unit |
|
LIFNR |
Vendor number |
|
PLGTP |
Price band category |
When calculating the average retail price, actual data for a particular time period forms the basis of the calculation.
There are several reference magnitudes available in the system for calculating average retail:
|
Key figure |
Description |
Formula |
|
AVRUMSGEO |
Sales at cost |
å Sales at cost/å sales volume |
|
AVRUMSGVO |
Sales at retail |
å Sales at retail/å sales volume |
|
AVRUMSGVP |
Sales at retail with tax |
å Sales at retail with tax/å sales volume |
|
AVRUBMGVO |
Sales at retail including markdowns |
(å Sales at retail + å markdowns)/å sales volume |
|
AVRUBMGVP |
Sales at retail with tax and including markdowns |
(å Sales at retail with tax+ å markdowns)/å sales volume |
|
AVRUBMPRS |
Sales at retail including markdowns and price reductions |
(å Sales at retail + å markdowns +å price reductions)/ å sales volume |
|
AVRUBMPRSS |
Sales at retail with tax and including markdowns and price reductions |
(å Sales at retail with tax + å markdowns +å price reductions)/ å sales volume |
The base unit of measure is always used for calculating values with quantities. Note that average retail loses its meaning if the articles involved have different base units of measure.
Average Retail with Other Information Systems (for example, SAP BW)
Instead of the RIS, a different information system can be used for calculating and saving average retail. Table TWISPA_AVERAGERT is delivered as the memory table in the standard system.
The following planning levels can be aggregation levels for Average Retail:
|
Characteristics |
Description |
|
WGRU2 |
Merchandise category hierarchy level 2 |
|
WGRU1 |
Merchandise category hierarchy level 1 |
|
MATKL |
Merchandise category |
|
MATNR |
Article |
|
ASORT |
Assortment |
|
MERK1, MERK2, MERK3 |
Characteristic 1 to characteristic 3 |
|
LIFNR |
Vendor number |
|
PLGTP |
Price band category |
The average retail must be calculated in the base unit of measure. Three different types of calculated average prices can be saved:
|
AVGRET1 |
Average price 1 |
|
AVGRET2 |
Average price 2 |
|
AVGRET3 |
Average price 3 |
There is no procedure delivered in the standard system to enhance the table above. The business logic behind the average retail indicator is therefore a customer implementation.
Example
In merchandise planning, you want to plan the stocks for your merchandise categories based on value and quantity. You enter the planning data in euro (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 worth 100 000 EUR for all articles in the merchandise category for which planning is to be executed. In total, 10,000 pieces of all articles in the merchandise category were sold.
Therefore, this gives an average retail price (average price for the merchandise category) of
100,000 EUR / 10,000 piece = 10 EUR per piece
The following example illustrates how you plan stock on a value and quantity basis (highlighted data is calculated by the system):
|
Key figure |
|
|
Value of opening stock |
100 EUR |
|
Value of additional purchases |
2,000 EUR |
|
Value of sales |
1,900 EUR |
|
Shrinkage |
100 EUR |
|
Value of final stock |
100 EUR |
|
Average retail price |
10 EUR/piece |
|
Quantity of opening stock |
10 pieces |
|
Quantity of additional purchases |
200 pieces |
|
Quantity sold |
190 pieces |
|
Shrinkage |
10 pieces |
|
Quantity of final stock |
10 pieces |