Specifying Hierarchies 

Use

Planning is generally performed using a combination of top-down and bottom-up planning. For this combined method to be used, the individual characteristic values that are to be planned have to be arranged in a hierarchy. The information for the hierarchical sequence can be taken from different sources:

·        From an external BW hierarchy

·        From the CRM organization structure in SAP BW (relevant for Sales Target Planning)

·        From the attributes for a characteristic in the planning area

By deriving the hierarchical information from a specific source, you can then, for example, copy actual data with a specific hierarchy and use it as the basis for planning. Moreover, you can later perform a plan/actual comparison. Plan data and actual data can be compared as a result of the analogous structures of the hierarchies.

In Hierarchy Derivation, you specify not only the source from which the hierarchy information comes, but also the form in which the individual nodes of the source hierarchy should be transferred. You can specify for each node whether the characteristic of the source hierarchy is to be transferred directly or to be derived. Under Characteristic Sequence, you then specify the exact hierarchical sequence of the characteristics.

Prerequisites

You need to be in the Settings for Planning Services screen.

Procedure

...

       1.      Expand the Hierarchy Derivation node.

       2.      Use the context menu (right mouse click) of the hierarchy type relevant to you to create a hierarchy derivation.

       3.      Make the detail settings appropriate to the hierarchy type:

External BW Hierarchy

Select an external BW hierarchy and specify for each individual characteristic whether it is to be copied 1:1 (that is, with the same InfoObject) for planning (setting the Fixed indicator), or whether it should be replaced by characteristics in the planning area that have the source characteristic as their reference characteristic (setting the To be Derived indicator).

CRM Organization Structure

The CRM organizational structure is technically an external BW hierarchy consisting of the characteristics Sales Organization, Sales Office, and Sales Group. You specify for each of these characteristics whether it should be transferred directly (indicator set), or whether it should be derived (indicator not set).

Attributes

From all the characteristics of the planning area, select the characteristic with the attributes to be used to build the hierarchy. To begin with, this characteristic first forms the root node of the hierarchy. From the attributes of this characteristic, now choose one that should be the new root node, and so forth.

For the detail settings in particular, note also the field help (F1) in the SAP System.

       4.      Use the right mouse to create a characteristic sequence.

       5.      Select the hierarchy derivation for which the characteristics are to be arranged in sequence.

You can include the following characteristics in a hierarchy:

Characteristics identified as fixed in the hierarchy derivation

Characteristics whose reference characteristics are identified as To be Derived

You can use the pushbuttons to change the sequence of these characteristics. Furthermore, under Sequence, there is an initially empty pushbutton adjacent to each characteristic. This pushbutton allows you to set up a hierarchical relationship to the characteristics located directly above and below the characteristic. When you choose the pushbutton for a characteristic, an error appears, denoting the hierarchical relationship with the symbols  and ). For the characteristics that you have set as fixed, you can use the pushbutton to specify whether you want to apply them (with the  symbol) or not (no symbol on the pushbutton). The additional characteristics of the planning area that are identified with a red X on the pushbutton cannot be included in a characteristics sequence.

Proceed as follows:

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                            a.      First, use the up and down pushbuttons to position the fixed characteristics that you want to use, and then choose Sequence so that  appears.

                            b.      Then, above and below these fixed characteristics, assign the characteristics to be derived and use the pushbutton to specify which of the fixed characteristics is to be taken as the starting point of the hierarchical sequence.

Hierarchy Derivation

Characteristic Product = fixed

Characteristic Product Category = To be derived

Characteristics with Product Category as reference characteristic: Product Hierarchy Level 1 through 3

Characteristic Sequence

Product Hierarchy Level 1  

Product Hierarchy Level 2  

Product Hierarchy Level 3  

Product                            

       6.      To prevent the system from having to build the hierarchy afresh each time planning is performed, you can generate the characteristic sequence and thereby improve performance. To do this, choose  Characteristic Sequence.

Once you have generated a characteristic sequence, the system can no longer automatically transfer any subsequent changes you make to the hierarchy in SAP BW or to the settings for hierarchy derivation. After such changes have been made, you have to generate the characteristic derivation again.

Result

Once the characteristics have been ordered into a hierarchical sequence, planning can occur using both top-down and bottom-up methods. Moreover, the reference to the source hierarchy allows you to make plan/actual comparisons.