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Technical Data

Technical Name of Business Function

ISR_RETAIL_RMA_3

Type of Business Function

Enterprise Business Function

Available As Of

SAP Enhancement Package 5 for SAP ERP 6.0

Technical Usage

Retail

Application Component

LO-AB-CA

Directly Dependent Business Function Requiring Activation in Addition

ISR_APPL_AGENCY_4

You can use this business function mainly to enable the allocation of certain types of costs and rebates to inventory. The additional allocations are included in the inventory calculation only per Retail Method of Accounting (RMA), and not for any other valuation method including Electronic Retail Method of Accounting (ERMA).

This business function provides increased accuracy of RMA stock valuation and analytics because RMA cost allocation is required by many retailers using RMA. The gross margin in the stock ledger is aligned to be as close as possible to the gross margin in the general ledger. This business function also has improved monitoring of performance (margin) for merchants.

Integration

Prerequisites

You have installed the following components as of the version mentioned:

Most of the development is done in SAP NetWeaver BW. Therefore, you can use the business function only by using SAP NetWeaver 7.0 BI Content ADDON 705.

Type of Component

Component

Is Needed Only for the Following Features

Software component

EA-RETAIL 605

SAP_APPL 605

BI Content

SAP NetWeaver 7.0 BW Content, Add-On 5, SP00

Features

RMA Allocation of Planned Rebate Variances

This new feature is for customers that use the retail method of accounting and who want to allocate their planned rebate variances to inventory and provides the following capabilities:

  • Captures the variance between the estimated and actual rebate in a new document

  • Provides a mechanism to allocate the cost reductions from rebates to the RMA target inventory

  • Enables you to determine whether or not to take the planned rebate variance into account in the RMA stock ledger

  • Provides a configuration option allowing the system to post the planned rebate variances to the RMA stock ledger automatically, or to allow you to override the suggested amounts and targets manually

  • Provides new standard RMA buckets within the RMA calculation formula and the RMA stock ledger analytics

The merchandise gross margin calculated in the RMA stock ledger is much closer to the higher-level financial gross margin produced in Financials (FI) after allocating the planned rebate variances. A correct merchandise gross margin also forms the basis of fair compensation for the buyer or category manager.

RMA Allocation of Price Differences

Price differences and unplanned delivery costs created during the invoice verification process can be applied to a special price difference account. If this occurs, the costs do not flow to the RMA stock ledger. This new feature helps allocate the respective differences to the related RMA objects and the stores. For example, of the receiving DC, to increase the correctness of the RMA gross margin.

RMA Allocation of Unplanned Rebates and Allowances

This new feature provides a mechanism to allocate the cost reductions from rebates to the RMA target inventory. You can decide when to allocate the rebates or allowances to which level of inventory (for example, article-level or merchandise category hierarchy), and which stores (for example, the receiving DC) to increase the correctness of the RMA gross margin.

You can also decide between the following different distribution methods:

  • Distribution of the value to all stores delivered by the DC, according to their current inventory (retail value)

  • Distribution to all stores in the distribution channel

The merchandise gross margin calculated in the RMA stock ledger is much closer to the higher-level financial gross margin produced in FI after allocating the planned rebate variances. A correct merchandise gross margin also forms the basis of fair compensation for the buyer or category manager.

RMA processing of markdown reserves and other enhancements

This new feature comprises three main areas:

  • Markdown reserves: Accounting rules generally dictate that when assets are known to be “impaired” they should be adjusted down. To take this into account a markdown reserve or -accrual can be entered into the system.

    Possibility to enter the retail value of a markdown reserve into the system and include it to the RMA calculation. The entry can be on product- valuation object- and merchandise hierarchy level.

    The allocation of the markdown reserve can be done manually but also automatically, according current inventory either retail value or units or according to a user exit.

    The markdown reserve will automatically be reversed in the follow on period.

  • Cycle count: The system now supports the ability to have only annual physical inventories reconcile and reset the planned shrinkage accrual and not have cycle counts do this.

  • RMA Consistency check reports: The check reports – one for ERP and one for BI - will check for errors and inconsistencies.