Retail, Margin Protection Localization for India 
Technical Name of Business Function |
ISR_RETAIL_INDIA_LOC |
Type of Business Function |
Industry Business Function Enterprise Business Function |
Available As Of |
SAP Enhancement Package 5 for SAP ERP 6.0 |
Technical Usage |
Retail |
Application Component |
FI-LOC |
Directly Dependent Business Function Requiring Activation in Addition |
Not Relevant |
With this business function, you can perform the following functions for India:
Control the price fluctuations and protect the margin agreed between the buyer and the vendor during the procurement process.
Update the MRP of an article in the purchase order (PO) and the article master if there is a change in the MRP when you receive the goods from the vendor.
Prerequisites
You have installed the following components as of the version mentioned:
Type of Component |
Component |
Is Needed Only for the Following Features |
|
Software Component |
EA-RETAIL 605 |
|
Features
Margin Protection
In India, articles are physically labeled with a price, referred to as the “Maximum Retail Price” (MRP), in the packing. The manufacturer sets the MRP with a view to protecting the consumer, since the retailer cannot charge the consumer with a price higher than the MRP. However, in certain Indian retail scenarios, there is a possibility that the vendor might change the price without prior notice to the distribution centre, which potentially affects the retailer’s margin. This solution sets the process to protect the margin agreed between the buyer and the vendor during the procurement process.
MRP Update
When there is a variance in the MRP or cost of an article, the system sets the AIN through an approval process that you must customize at the configuration level. Based on whether the approver accepts or rejects the change, the system updates the new MRP in the PO and the article master.