This section describes analysis options available in the system:

• Totals analysis

• ABC analysis

• Analysis using comparison periods

• Frequency analysis

You can choose one of the four options, combine several of the analyses, or use all the options in one analysis.

You invoke all four of the above analyses as follows:

• The currency for the analysis
• The net order values for the frequency analysis
• Periods for the analysis of comparison periods
• Selection criteria to which the analyses relate

1. Choose to run the analysis.

Totals analysis affords you an overview of the value of POs.

Carry out the order value analysis as described in the section Running an Analysis of Order Values.

You obtain a list of all documents that satisfy your criteria. In this list, you can perform sorting, filtering, and totaling functions, etc.

The ABC analysis allows you to determine the relative importance of the individual vendors in your vendor base, for example. It provides you with an overview of any changes that may occur in your relationships with vendors.

To run an ABC analysis, proceed as follows:

1. Carry out the order value analysis as described in the section Running an Analysis of Order Values.

You obtain a list of all documents that satisfy your criteria.



Note that filters are not taken into account when an ABC analysis is run. Instead, use suitable selection criteria or an appropriate display variant.

2. Select a numeric key figure column in the list (e.g. Net value).
3. Choose ABC to run the ABC analysis.

• Key figure (percentage)
• Key figure (absolute)
• Characteristics (absolute)
• Characteristics (percentage)

1. Click .

This analysis allows you to easily detect changes in purchasing activities. For example, you can determine how much was ordered from which vendor by which purchasing organization or purchasing group, and by how much the total order value of one period differs from that of a comparison period

To compare two periods, proceed as follows:

Use this analysis to determine which net order values most frequently occur for which purchasing organization or vendor, for example.

The frequency analysis can be used as a basis for negotiations with vendors. For example, you may find that you have issued many discrete purchase orders with a value greater than $2000 to vendor X, and an individual percentage quantity discount would be more favorable than the existing period-end rebate based on total business volume over a period.

To run a frequency analysis, proceed as follows:

You want to determine and compare the order values in the first and second halves of the year.

To do so, specify the period 01.01.99 to 06.30.99 as period 1 and 07.01.99 to 12.31.99 as period 2.

You also wish to ascertain the PO items whose net value lies between $10,000 and $20,000. You therefore enter $10,000 as Net value 1 and $20,000 as Net value 2.

After running the analysis, you get the following list:

From the list, you can see that:

• The first purchase order was not created within the periods analyzed (value 0 in In period column).
• The second and third POs were created in the first half of the year, i.e. in period 1 (value 1 in In period column).
• The last two POs were created in the second half of the year, i.e. in period 2 (value 2 in In period column).
• The net values of the first two POs lie between $10,000 and $20,000 and are thus assigned to net value 2 (value 1 in <= Net value 2 column).

• The net values of the other POs are below $10,000 and are thus assigned to net value 1 (value 1 in <= Net value 1 column).