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 Analysis of Order Values

Use

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.

Note Note

Note that purchase orders that have been put "on hold" are not taken into account because the data they contain is incomplete.

End of the note.

Features

Running an Analysis of Order Values

You invoke all four of the above analyses as follows:

  1. Choose Start of the navigation path Purchase Next navigation step order Next navigation step Reporting Next navigation step Order End of the navigation path value analysis .

  2. Enter your selection criteria.

The screen is subdivided into four parts. You can enter the following data:

  • 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

Note Note

Choose Start of the navigation path Edit Next navigation step Dynamic selections End of the navigation path if you need further criteria from header and item data for your analysis.

End of the note.
  1. Choose to run the analysis.

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

Totals Analysis

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

Procedure

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.

For more information on this topic, refer to General Analyses .

ABC Analysis

The ABC Analysis is used for classifying vendors or materials by order value. The ABC indicator has the following values:

A Percentage with a high order value.

B Percentage with a medium order value.

C Percentage with a low order value.

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.

Procedure

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 .

  2. 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.

  3. Select a numeric key figure column in the list (e.g. Net value ).

  4. Choose ABC to run the ABC analysis.

A window appears, in which you can choose between the following analyses for Key Figures (e.g. net value) and Characteristics (e.g. vendor, material):

  • Key figure (percentage)

  • Key figure (absolute)

  • Characteristics (absolute)

  • Characteristics (percentage)

  1. Click .

You obtain a list in which all selected data records are allocated to the relevant segments.

If, for example, you have chosen the analysis Key figure (percentage) , the default values for the ABC analyses are 50 – 30 – 20 percent.

For more information, refer to the BC Basis documentation, section ABC Analysis .

Analysis Using Comparison Periods

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

Procedure

To compare two periods, proceed as follows:

  1. Choose Start of the navigation path Purchase order Next navigation step Analyses Next navigation step Order value analysis Next navigation step to display the initial screen of the order value analysis. End of the navigation path

  2. Enter the necessary data and specify the two periods you wish to compare in the fields Period 1 - to and Period 2 - to .

  3. Choose to run the analysis.

Note Note

You cannot compare overlapping periods.

End of the note.

Frequency Analysis

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.

Procedure

To run a frequency analysis, proceed as follows:

  1. Choose Start of the navigation path Purchase order Next navigation step Analyses Next navigation step Order value analysis Next navigation step to display the initial screen of the order value analysis. End of the navigation path

  2. Enter the necessary data and specify in the fields Net value 1 to Net value 4 the limits for net values that are to be taken into account in the analysis.

  3. For example, enter the following intervals in the fields Net value 1 to 4 :

    – Net value 1 up to 500

    – Net value 2 up to 1000

    – Net value 3 up to 2000

    – Net value 4 up to 5000

    If you specify four net value limits, document items with a net value exceeding net value 4 will be analyzed in an additional column (>Net value 4 ).

  4. Choose to run the analysis.

You obtain a list containing all the document items assigned to the relevant net value intervals.

Example: Analysis with Comparison Period and Frequency Analysis

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:

Purchase order

PO date

Vendor

Net value

<= Net value 1

<= Net value 2

In period

4500000123

12.28.98

Smith Corp.

18,056

0

1

0

4500000124

03.15.99

Miller Corp.

12,502

0

1

1

4500000125

06.20.99

ACME

8,000

1

0

1

4500000126

08.25.99

Zenith Co.

5,025

1

0

2

4500000127

30.09.99

Topstar Inc.

3,750

1

0

2

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).

Note Note

You can create totals for the net values, calculate subtotals per period, and then summarize the list so that only the total net values per period are displayed, for example.

End of the note.