SAP RETAIL CROSS COMPANY CODE (GLOBAL COMPANY CODE)

Global company code - Cross system company code

In SAP retail system , may be from version 5.0 it became necessary , I am not sure is that mandatory in General SAP ECC.5 or 6 . We have similar requirement of Global company code in SAP ISU but there the requirement is different . in ISU Global company code or Group contains all the Company codes that are eligible  to receive the FICA postings and also maintain a paying company code

However in the SAP retail according to SAP help file , Global company code needs to be defined to maintain certain requirements of ALE and IDOC processing with regard to NON SAP system

Global Company Code configuration is needed for Company Codes which uses ALE distribution Scenarios for Data transfers through Non-SAP External Systems  with SAP System

Configuration path:

IMG-->SAP NetWeaver-->Application Server-->IDoc Interface / Application Link Enabling (ALE)-->Modelling and Implementing Business Processes-->Global Organizational Units

Global company code (Cross system company code)

Cross-System Company Codes

Cross-system company codes are used in the distribution in financial accounting. There is exactly one central system for each cross-system company code in the distributed environment. One company code has to be assigned to this cross-system company code on each system involved in the distribution.

When sending an IDoc with company code-dependent data, the company code is replaced with the cross-system company code in all company code fields. When receiving this kind of IDoc the reverse conversion takes place on the target system.

In this section you maintain the cross-system company codes and allocate them to the local company codes.

Recommendation

The use of cross-system company codes and business areas in distributed financial accounting is a provisional measure. SAP reserves the right to replace this in a future release with a tool that allows a conversion for all the organizational units of the SAP system.

Therefore SAP recommends that you choose consistent identifiers for the company code and the cross-system company code.

Activities

1. Create a cross-system company code.

2. Assign the cross-system company code to a chart of accounts to which it is also assigned on the central system.

This setting is needed on the decentral systems in order to determine the chart of accounts of the company code on the central system.

3. Assign cross-system company codes to the local company codes.

Specify the identifiers of the relevant cross-system company codes for each of the individual company codes.

ARTICLE RECLASSIFICATION

INTRODUCTION VIA SAP HELP :

This function can be used to assign individual articles to a different merchandise category without having to create a reclassification version before doing so.

This function assigns an article to a different, existing merchandise category or to a characteristics profile. You can also split a merchandise category by creating a new merchandise category and moving individual articles from the existing merchandise category to the new one.

If you want to change the assignments of a large number of articles or existing merchandise categories, you should follow the procedure described in Reclassification of articles and Merchandise Catgeories

Features

The system supports you in selecting the article and the new merchandise category.

• You can have the system determine the characteristics profile automatically or you can enter a new profile. If you have the system determine the profile automatically, it transfers the characteristics from the article, provided they occur in the target merchandise category as well. The characteristic values in the source must be defined in the target in full. Thus, when reclassifying an article with the characteristic color and the valuesred, green and yellow to a merchandise category that has the characteristic color, but only black andwhite as the values, the system does not transfer the characteristics.

• You can decide which follow-up activities the system performs. The following activities are possible:

• Change purchase order items

The system checks the open purchase orders to see where the article appears and, if necessary, changes the assignment of the relevant order items to merchandise category.

• Change allocation table items

The system checks the allocation tables to see where the article appears and, if necessary, changes the assignment of the relevant allocation table items to merchandise category. You can also ensure that allocation tables are not taken into consideration.

• Create new listing conditions

The system checks whether listing conditions are required for the article and creates them if necessary.

• Change previous listing conditions

The system checks whether listing conditions exist for the article and changes them as necessary.

• You can enter a listing procedure for the reclassified article.

• You can choose whether a test run (no posting) is to be performed. The system always creates a log showing the individual activities that have been performed.

• You can save the settings that you defined in the selection screen for this function as variants and reload them at any time.

• You can have the system perform the reclassification in the background at a time you select yourself.

PIC 1 to PIC 5 show the process Article 701 belonging to RM0011 Changed to RM0011

LISTING PROCEDURE B2- CLASSIFICATION CHECK

 

LISTING PROCEDURE B2

SAP provides a basic listing procedure called B2 which uses the classification check

 

The classic check involves finding the assortments that have the matching values of Characteristics corresponding to article characteristics values

 

We do all the basic master data maintenance as we normally do for Generic article and Its Variants , But listing of the article is done on the basis of Procedure B2 and what I have found is that B2 checks would work when we do the listing processes using Standard assortment module while it does not work when we try to do list Via article maintenance (MM41/42) or through Single article or mass article listing

 

It could work successfully when I adopted the following steps

 

a) Create  the Characteristic CT04 : along with Values X Y Z

 

b) maintain the characteristic profile  CLWE with above characteristic and using option 2 as relevant for variants

 

c) assign the above Profile to MC in WG22

 

d) Create the assortments - general through WSOA1 and assign the stores as Users or Customers

 

e) Create a classification group for the assortment using WB70 and Class Type as 047 and assign the Characteristic as created in step a

 

f) assign the assortment to Class using WB76 and while assigning select the permitted value of Characteristic(s)  example X , Y

 

g) create the article using the MC created an select all the values / or as relevant as applicable Characteristic values example X Y Z

 

h) create variants and do not do listing and maintain data in other screens like Purchasing , Log DC and store

 

i) Create a standard assortment module using WSO1 and assign the module to assortment using Procedure B2

 

k) finally assign the article to the assortment module in WSO2 and save

 

l) we can check the article variants of Values X and Y listed to Our assortment

 

 

 

 

 

 

 

 

CROSS DOCKING

SOURCE : http://www.aalhysterforklifts.com.au/index.php/about/blog-post/what_is_cross_docking_understanding_the_concept_definition

What is cross docking?

Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time.  Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space.  The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock.

In simple terms, inbound products arrive through transportation such as trucks/trailers, and are allocated to a receiving dock on one side of the ‘cross dock’ terminal.  Once the inbound transportation has been docked its products can be moved either directly or indirectly to the outbound destinations; they can be unloaded, sorted and screened to identify their end destinations.  After being sorted, products are moved to the other end of the ‘cross dock’ terminal via a forklift, conveyor belt, pallet truck or another means of transportation to their destined outbound dock.  When the outbound transportation has been loaded, the products can then make their way to customers. 

Some of the main reasons cross docking is implemented is to:

• Provide a central site for products to be sorted and similar products combined to be delivered to multiple destinations in the most productive and fastest method.  This process can be described as “hub and spoke”
• Combine numerous smaller product loads into one method of transport to save on transportation costs.  This process can be described as ‘consolidation arrangements’.
• Break down large product loads into smaller loads for transportation to create an easier delivery process to the customer.  This process can be described as ‘deconsolidation arrangements’.

SAP Retail Merchandise Distribution using Push Method by SIMHA

SAP RETAIL OVERVIEW BY SIMHA

ASSORTMENTS IN SAP RETAIL

Assortment

A site cannot sell article that is not maintained in its Assortment

We also Can say that a site can only purchase articles that are maintained in its assortment and this is subject to listing conditions with the validity dates

The structure of the assortment is as follows

Assortment

Assortment Module

Articles

The picture below shows an assortment with its assortment modules

WS1 is assortment 

Which contains the  assortment module 10000007929

The module is valid from its creation date 27.12.2015

It contains articles with different list dates 

An assortment is an object to which articles are assigned for a specific time frame (validity

period). This assignment can be made either directly of via assortment modules. The results of

this assignment are listing conditions that form the basis for a variety of reports.

The following types of assortment are available:

• Assortments suitable for stores

• Assortments suitable for distribution centers

• General article assortments, particularly suitable for wholesale customers

Currently, only the following assignments can be made:

• For stores, exactly one suitable assortment (occurs implicitly through retail site

   maintenance)

• For distribution centers, the same applies

• For general article assortments, as many customers as desired with one or more

   assignments per sales area.

An assortment user must be assigned to an assortment before it can use the articles in that

assortment for its various business functions. The scope of functions available is determined by

the category of assortment user.

Category Of Customers

Stores

Distribution centers

Customers

In Retail, the most important assortment user is the retail site.

The assortment of a site consists of all the articles in which it trades.

Assortments can be grouped together in the Classification System using SAP class type 047.

Retail Pricing - Different Types of Pricing Models

source : http://www.managementstudyguide.com/retail-pricing.htm

Retail Pricing

Cost Plus Pricing Mechanism

Every organization runs to earn profits and so is the retail industry.

Cost plus pricing works on the following principle:

• Cost Price of the product + Profit (Decided by the retailer) = Final price of the merchandise.

According to cost plus pricing strategy the retailer adds some extra amount to the actual cost price of the product to earn his share of profits. The final price of the merchandise includes the profit as decided by the retailer.

Cost Plus Pricing

• Cost plus pricing strategy takes into account the profit of the retailer.
• Cost plus pricing is an easy way to calculate the price of the merchandise.
• The increase in the retailer price of the merchandise is directly proportional to the increase in the cost price.
• The customers however do not have a say in cost plus pricing.

Manufacturer Suggested Retail Price (Also called List Price or Recommended retail price)

According to manufacturer suggested retail pricing strategy the retailer sets the final price of the merchandise as suggested by the manufacturer.

MSRP

• The retailer sells his merchandise at a price suggested by the manufacturer.

Condition 1

• The retailer sells the product at the same price as suggested by the manufacturer.

Condition 2

• The retailer sells the merchandise at a price less than what was suggested by the manufacturer - Such a condition arises when the retailer offers “Sale” on his merchandise.

Condition 3

• Retailers initially quote an unreasonably high price and then reduce the price on the customer’s request to make him realize that a favour has been done to him. A condition of Bargain - where the customer negotiates with the retailer to reduce the price of the merchandise.

Competitive Pricing

The cut throat competition in the current retail scenario has prompted the retailers to guarantee excellent customer service to the buyers for them to prefer them over their competitors.

• The price of the merchandise is more or less similar to the competitor’s but the retailers add on certain attractive benefits for the customers. (Longer payment term, gifts etc.)
• The retailers ensure that the customers leave their store with a smile to have an edge over the competitors.
• He tries his level best to offer better services to the customers for a better business in future.

Pricing Below Competition

According to pricing below competition policy

• The price of the merchandise is kept lesser than what is being offered by the competitors.

Prestige Pricing (Pricing above competition)

According to prestige pricing mechanism, the price of the merchandise is set slightly above the competitors.

The retailer can charge higher price than the competitors only under the following circumstances:

Exclusive Brands at the store.
Brand image of the store
Prime location of the retail store
Excellent customer service
Merchandise not available at any other store
Latest Trends

Psychological Pricing

• Certain price of a product at which the consumer willingly purchases it is called psychological price.
• The consumer perceives such prices to be correct.
• A retailer sets a psychological price which he feels would meet the expectations of the buyers and they would easily buy the merchandise.

Multiple Pricing

• According to multiple pricing, the retailer sells multiple products (more than one) for a single price.
• The retailers combine few products to be sold for a single fixed price.
• 3 Shirts for $100/- or 3 Perfumes for $20/- and so on.

Discount Pricing

According to discount pricing, the retailer sells his merchandise at a discounted price during off seasons or to clear out his stock.

Assortment Strategy

DEFINITION of 'Assortment Strategy'

The number and type of products displayed by retailers for purchase by consumers. The two major components of an assortment strategy are the depth of products offered (how many variations of a particular product a store carries), and the width of the product variety (how many different types of products a store carries).


A deep assortment of products means that a retailer carries a number of variations of a single product (the opposite being a narrow assortment); a wide variety of products means that a retailer carries a large number of different products (the opposite being a narrow variety).

BREAKING DOWN 'Assortment Strategy'

Retailers face a trade-off when determining an assortment strategy. Choosing a wide variety and a deep assortment simultaneously requires a large amount of space, and is typically reserved for big box retailers. Stores with smaller spaces may choose to specialize in a certain type of product and offer consumers a variety of colors and styles, while others may offer a deep assortment of products but a narrow variety (convenience stores, for example). 

SOURCE : http://www.investopedia.com/terms/a/assortment-strategy.asp