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Function documentationTwo-Level Rounding

 

Two-level rounding is a rounding method that considers two different rounding values and a threshold value. It chooses the rounding value to be applied depending on the quantity to be rounded and the threshold value. The system first divides the quantity by the large rounding value. The remaining quantity is handled in a special way: It is first rounded up with respect to the small rounding unit. The replenishment service only rounds up the rounded remaining quantity to the large rounding value as well if the rounded remaining quantity exceeds the threshold.

Prerequisites

If you want the replenishment service to use two-level rounding for a customer location product, you need to have made the following settings:

  • You have defined a rounding profile with two levels. On the first level, you enter the small rounding value. On the second level, you enter the threshold value and the large rounding value. You enter all values in the base unit of measure of the product. The second-level threshold value must lie between the small and the large rounding value.

    You define rounding profiles in Customizing for SCM Basis under Start of the navigation path Master Data Next navigation step Product Next navigation step Maintain Rounding Profiles End of the navigation path.

  • In the product master of the customer location product, you have assigned the rounding profile to the customer location product.

    Note Note

    If you do not assign a rounding profile to the location product, the system uses the “normal” rounding, using one rounding value.

    End of the note.

Features

The replenishment service performs two-level rounding for the quantity to be rounded as follows:

  1. The system divides the quantity by the large rounding value. In terms of packing, this means that using the quantity available, the system fills as many large packing units as possible.

  2. The system rounds up the remaining quantity using the small rounding value. In terms of packing, this means that the system uses the remaining quantity to fill the smaller packing units. If necessary, the system rounds up the remaining quantity to fill a partially-filled packing unit completely.

  3. The system checks whether the rounded remaining quantity is large enough to justify using the larger rounding value. If the remaining quantity reaches or exceeds the second-level threshold value, the system rounds the remaining quantity up to the greater rounding value.

  4. The rounded quantity must not fall below the minimum lot size or exceed the maximum lot size. If the rounded quantity is below the minimum lot size or above themaximum lot size, the system increases or decreases the quantity by adding or subtracting as many units of the smaller rounding value size as necessary.

Example

Maintaining the Rounding Profile

For a particular product, whose base unit of measure is 1 case, layers and pallets are used for packing and transportation. Twelve cases make 1 layer, and 5 layers (that is, 60 cases) make 1 pallet. Therefore, the small rounding value is 12 cases and the large rounding value is 60 cases.

To reduce handling costs, a complete pallet should be created when at least 4 layers are filled. Therefore, the second-level threshold value is 48 cases. The following table shows how you maintain the rounding profile ROUND_12_60 for this example in Customizing:

Rounding Profile

Level

Threshold Value

Rounding Value

ROUND_12_60

1

1

12

ROUND_12_60

2

48

60
Rounding 134 Cases

The unrounded product quantity is 134 cases. Using two-level rounding, the system determines the rounded quantity as follows:

  1. The system divides the quantity of 134 cases by the large rounding value (60 cases). The remaining quantity is 14 cases (134 cases – 120 cases).

  2. The system rounds up the remaining quantity of 14 cases to the next whole-numbered multiple of the smaller rounding value. The result is 24 cases.

  3. The system compares the rounded remaining quantity of 24 cases with the threshold value of 48 cases. Since 24 is smaller than 48, no further rounding is performed.

The final result: 134 cases were rounded up to 144 cases (120 cases + 24 cases).

Rounding 47 Cases

The unrounded quantity is 47 cases. Using two-level rounding, the system, determines the rounded quantity as follows:

  1. The system divides the quantity of 47 cases by the large rounding value (60 cases). The remaining quantity is 47 cases.

  2. The system rounds up the remaining quantity to the next whole-numbered multiple of the smaller rounding value. The result is 48 cases.

  3. The system compares the rounded remaining quantity of 48 cases with the threshold value of 48 cases. Since the remaining quantity has reached the threshold value, the system rounds up the remaining quantity to 60 cases.

The final result: 47 cases were rounded up to 60 cases (0 cases + 60 cases).