Capital Lockup Profiles

Sometimes it makes business sense to order a larger quantity than is actually required. Before doing so, you need to compare the procurement costs with the storage and capital lockup costs – while taking future demand into account.

You use the capital lockup profile to compare the capital lockup costs with the ordering costs to determine the most cost-effective order quantity. Ordering costs are fixed costs for each order item in a valid currency, irrespective of the ordered quantity (for example, logistics costs).

Integration

You assign the capital lockup profile to a location product in the master data. To do so, go to the SAP Easy Access screen and choose Forecasting and Replenishment Master Data Product Maintain Location Products .
If you want to implement your own logic as to which storage unit SAP F&R uses for capital lockup optimization, you can use Business Add-In (/FRE/FU_RQO_BADI004). For more information, see the Implementation Guide (IMG) for Forecasting and Replenishment under Requirement Quantity Optimization Enhancements Using Business Add-Ins BAdI: Change Storage Unit for Capital Lockup Optimization .

Prerequisites

To execute capital lockup optimization, you have selected a default profile for requirement quantity optimization and you have not deactivated the capital lockup check in the basic settings of the profile. For more information, see Profile for Requirement Quantity Optimization.

Features

You can activate and deactivate the capital lockup check itself in the profile.
You have to specify a percentage for the capital lockup and an amount for the ordering costs.
Optional: You can specify parameters for storage costs, such as a stackability factor.

Activities

You create the capital lockup profile in Customizing. For more information, see the Implementation Guide (IMG) for Forecasting and Replenishment under Start of the navigation path Requirement Quantity Optimization Next navigation step Maintain Capital Lockup Profiles End of the navigation path .