Business Process Procedures s6

EHP7 for SAP ERP 6.0 July 2014 English

Demand-driven Procurement (721) Business Process Documentation

SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf Germany SAP Best Practices Demand-driven Procurement (721): BPD

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Type Style Description Example text Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths and options. Cross-references to other documentation. Example text Emphasized words or phrases in body text, titles of graphics and tables. EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE. Example text Screen output. This includes file and directory names and their paths, messages, source code, names of variables and parameters as well as names of installation, upgrade and database tools.

EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the ENTER key. Example text Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation. Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.

Contents

1 Purpose...... 6 2 Prerequisites...... 6 2.1 Master Data and Organizational Data...... 6 2.2 Checking User Parameters...... 8 2.3 Roles...... 8 2.4 Article Master Data...... 9 2.5 Initial Stock...... 9 2.6 Forecast...... 10 2.7 Order Optimizing...... 10 2.8 Investment Buying...... 10 2.9 Load Building...... 11 2.10 Goods Receipt Capacity Check...... 11 3 Requirement Planning...... 13 3.1 Process Overview Table...... 13 4 MRP Procedure...... 15 4.1 Variant 1: Automatic Reorder Point Planning...... 16 4.1.1 The Individual Forecast...... 16 4.2 Variant 2: Time-Phased Planning...... 17 4.2.1 The Individual Forecast...... 17 4.3 Variant 3: Time-Phased Planning with Reorder Point Planning...... 18 4.3.1 Carrying out the Individual Forecast (from the Article Master)...... 19 4.3.2 Alternative: Carrying out the Individual Forecast (from the Menu)...... 21 4.4 Variant 4: Forecast-Based Planning...... 22 4.4.1 The Individual Forecast...... 22 4.5 Optional: Reprocess the Forecast Results...... 23 4.6 Planning Run...... 24 4.6.1 Optional: Planning File...... 24 4.6.2 Carrying out Single-Item, Single-Level Planning...... 25 4.6.3 Optional: Evaluating the Planning Results...... 26 4.6.4 Converting the Purchase Requisition to a Purchase Order...... 28 4.6.5 Goods Receipt in the Distribution Center...... 29 5 Supply Source Determination...... 30 5.1 Process Overview Table...... 30 5.2 Supply Source 1: Quota Arrangement...... 31 5.3 Supply Source 2: Source List...... 31 5.3.1 Maintaining Source List...... 32 5.3.2 Creating Purchase Requisition (Automatic Supply Source Determination)...... 33 5.3.3 Purchase Order with Reference to the Purchase Requisition...... 34 5.3.4 Goods Receipt in the Distribution Center...... 35 5.4 Supply Source 3: Purchasing Info Record...... 35 5.4.1 Displaying the Purchasing Info Record...... 36 5.4.2 Purchase Requisition (Assign Supply Source)...... 36 5.4.3 Automatic Conversion of the Purchase Requisition to a Purchase Order...... 37 5.4.4 Goods Receipt in the Distribution Center...... 38

6 Contract Processing...... 39 6.1 Process Overview Table...... 39 6.2 Supply Source 4: Outline Agreements (Contracts)...... 40 6.2.1 Creating Contract...... 40 6.2.2 Creating Purchase Requisition (Assigning Supply Source)...... 41 6.2.3 Releasing Order for the Contract...... 42 6.2.4 Displaying Release Documentation...... 43 6.2.5 Goods Receipt in the Distribution Center...... 44 7 Purchase Order Processing...... 44 7.1 Process Overview Table...... 44 7.2 Plan Workbench...... 48 7.2.1 Checking the Stock...... 49 7.2.2 Checking Consumption and Forecast Values...... 50 7.2.3 Creating Purchase Order...... 51 7.2.4 Online Requirements Planning...... 52 7.2.5 Order Cancellation...... 54 7.2.6 Order Release...... 56 7.2.7 Goods Receipt in the Distribution Center...... 58 7.3 Order Optimizing...... 59 7.3.1 Quantity Optimizing...... 60 7.3.2 Investment Buying...... 63 7.3.3 Load Building...... 81 7.3.4 Goods Receipt Capacity Check...... 86 8 Purchase Order Monitoring...... 88 8.1 Requirements Planning Workbench...... 88 8.2 Displaying Open Purchase Orders...... 89 8.3 Displaying Status Data for the Purchase Order Header...... 90 8.4 Displaying the Purchase Order History...... 90 9 Vendor Evaluation...... 90 9.1 Initial Maintenance of Vendor Evaluation...... 91 9.2 Automatic Reevaluation...... 92 9.3 Maintaining the Vendor Evaluation Manually...... 93 9.4 Analyses Relating to Vendor Evaluation...... 94 9.4.1 Comparison of Evaluations...... 94 9.4.2 Rank Lists...... 95 9.4.3 Executing an Evaluation of the Article/Merchandise Category...... 96

Demand-driven Procurement

1 Purpose The "Demand-driven Procurement" scope item begins with the required planning steps. The forecasting processes (also with different historical data) and four different consumption-based MRP procedures are then explained in detail. The supply source determination schema in SAP ERP is then outlined in brief and the various options explained. Purchase Order processing begins with the Planning Workbench, which is a working environment for stock planners. There is often a contact agreed with a regular vendor, so the buyer can release the product against the contract with a more suitable purchase price within a specified timeframe. In this process, you see how to carry out quantity optimizing when converting a purchase requisition to a purchase Order, the Order cancellation function, and the automatic purchase order block and release function. You also see how to carry out manual optimization using the Planning Workbench, which is based on a restriction profile. Order optimizing comprises the following process steps: quantity optimizing, investment buying, load building and goods receipt capacity check. As the person responsible for purchasing, you want to gain an overview of your vendors and purchasing Organizations from time to time. The section on purchase Order monitoring shows you how to do this. The final step, vendor evaluation, not only helps you optimize article procurement, but also makes it easier for you to choose sources of supply and continuously monitor existing supply relationships. Providing detailed information about the best prices and terms of payment and delivery, this process helps you maintain your competitive edge.

2 Prerequisites 2.1 Master Data and Organizational Data Default Values Essential master and Organizational data was created in your ERP system in the implementation phase, such as the data that reflects the Organizational structure of your company and master data that suits its operational focus, for example, master data for products, vendors, and customers. The business process is enabled with this Organization-specific master data, examples are provided in the next section.

Additional Default Values You can test the scope item with other SAP Best Practices default values that have the same characteristics. Check your SAP ECC system to find out which other material master data exists.

Using Your Own Master Data You can also use customized values for any product or organizational data for which you have created master data. For more information on how to create master data, see the Master Data Procedures documentation.Use the following master data in the process steps described in this document:

Fashion Hard goods Food ARTICLE 1 PCS-04-ART141 PCS-04-MRP441 PCS-04-MRP201 TIME-PHASED PLANNING Variant: W. REORDER POINT / PCS-04-ART141001 SUPPLY SOURCE DET. to PCS-04-ART141008 VENDOR 1 PCS-V141 PCS-V441 PCS-V201 ARTICLE 2 PCS-01-ART116 PCS-01-ART413 PCS-01-ART203 TIME-PHASED PLANNING Variant: PCS-01-ART116001 to PCS-01-ART116008 VENDOR 2 PCS-V111 PCS-V411 PCS-V201 ARTICLE 3 PCS-03-ART141 PCS-03-ART441 PCS-03-ART205 AUTO. REORDER POINT Variant: PCS-03-ART141001 to PCS-03-ART141008

VENDOR 3 PCS-V141 PCS-V441 PCS-V201 ARTICLE 4 PCS-02-ART116 PCS-02-ART419 PCS-02-ART202 FORECAST-BASED Variant: PLANNING PCS-02-ART116001 to PCS-02-ART116008 VENDOR 4 PCS-V111 PCS-V411 PCS-V201 ARTICLE 5 PCS-01-CON142 PCS-03-CON431 PCS-03-CON201 SOURCE LIST VENDOR 5 PCS-V141 PCS-V431 PCS-V201 VENDOR 10 PCS-V142 PCS-V432 PCS-V202 ARTICLE 6 PCS-01-CON141 PCS-01-CON431 PCS-01-CON201 CONTRACTS VENDOR 6 PCS-V141 PCS-V431 PCS-V201 ARTICLE 7 PCS-01-INV141 PCS-01-INV421 PCS-01-INV331 Investment buy VENDOR 7 PCS-V141 PCS-V421 PCS-V331 ARTICLE 8 PCS-04-ORB142 PCS-04-ORB431 PCS-04-ORB201 PLANNING WORKBENCH QUANTITY OPTIMIZING LOAD BUILDING VENDOR 8 PCS-V141 PCS-V431 PCS-V201 CATT 1 Z_DE_CREATE_ Z_DE_CREATE_ Z_DE_CREATE_ PLANNING WORKBENCH ORDERS ORDERS ORDERS

Fashion Hard goods Food CATT 2 Z_DE_VENDOR_ Z_DE_VENDOR_ Z_DE_VENDOR_ VENDOR EVALUATION EVALUATION EVALUATION EVALUATION VENDOR 9 PCS-V142 PCS-V432 PCS-V202 MERCH.CAT. Hierarchy MC11300 MC14000 MC13000 level MERCH.CAT.11 MC11310 MC14100 MC13200 MERCH.CAT.12 MC11320 MC14200 MC13300 MERCH.CAT. 1 MC11311 MC14101 MC13201 MERCH.CAT. 2 MC11312 MC14102 MC13203 MERCH.CAT. 3 MC11321 MC14201 MC13302 MERCH.CAT. 4 MC11322 MC14202 MC13301 VENDOR 11 PCS-V132 PCS-V421 PCS-V321

2.2 Checking User Parameters Use In this step, check the user parameters and the default settings. Procedure 1. On the toolbar, choose Customizing of Local Layout (Alt+F12), and choose Options. In the Options dialog box, choose Interaction Design tab. 2. Choose Visualization 1, make sure the field: Show keys within all dropdown Lists, is selected. 3. Choose OK. 4. Access the activity using one of the following navigation options: Transaction code SU3 Toolbar menu System  User Profile  Own Data 5. On Defaults tab, make the following entries: Field name Description User actions and values Comment Start menu W10T Fixed Values Decimal Notation 1.234.567,89 Fixed Values Date FOrmat 1 DD.MM.YYYY Fixed Values 6. Save the entries. 7. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 2.3 Roles Use The following roles must have already been installed to test this scope item in the SAP Netweaver Business Client (NWBC). The roles in this Business Process Documentation must be assigned to the user Or users testing this scope item. You only need these roles if you are using the NWBC interface. You do not need these roles if you are using the standard SAP GUI.

Prerequisites The business roles have been assigned to the user who is testing this scope item. Business Role Technical Name Process Step Retail Non-Seasonal SAP_NBPR_NONSEASBUYER_RT_S Purchaser Retail Replenishment Planner SAP_NBPR_REPLENISHPLAN_RT_S Retail Warehouse Manager SAP_NBPR_MASTERDATA_RT_S Retail Warehouse Manager SAP_NBPR_WAREHOUSE_RT_S

2.4 Article Master Data You have to maintain the article master data:  Purchasing  Conditions  Minimum purchase order quantity  Rounding profile You also have to maintain the vendor master data:  Vendor schema group  Restriction profile 2.5 Initial Stock Initial Stock for Requirements Planning The following stock situation should exist in VZ01. Check the article stocks using transaction RWBE (NWBC: Non-Seasonal Purchase Management  Stock  Stock Overview). Combination: Time-Phased Requirements Planning with ReOrder Point Planning Initial article stock: >Article 1 50 PC Time-Phased Requirements Planning Initial article stock: >Article 2 80 PC Automatic Reorder Point Planning Initial article stock: >Article 3 150 PC Forecast-Based Planning Initial article stock: >Article 4 80 PC Procedure If the stock is different, you can correct it as follows: 1. Access the transaction choosing one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Merchandise Logistics  Logistics (W10T) Execution  Inbound Process  Goods Receipt for Purchase Order, Order, Other Transactions  Enter Goods Receipt for Purchase Order Transaction code MIGO

Option 2: SAP NetWeaver Business Client (SAP NWBC) via business role Business role Retail Warehouse Manager (SAP_NBPR_WAREHOUSE_RT_S)

Business role menu Warehouse Management  Receiving  Goods movements Other

2. On the initial screen, make the following entries. Field name Description User action and values Comment In the top left A01 Goods Receipt cOrner of the screen, the first field the second field R10 Other Movement Type 501 (Receipt w/o 502 (Receipt w/o purchase Order into purchase Order into warehouse) warehouse – reversal)

3. Choose Enter. 4. On the screen Goods Receipt Other screen, make the following entries and choose Enter. Field name Description User action and values Comment Article

5. Choose Enter to confirm any warning message. 6. Choose Item OK. 7. Choose Post. 8. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 2.6 Forecast To carry out a forecast, you first have to maintain the forecast parameters for the article in the article master (see Customizing Guide). You also have to define the frequency with which the forecast is to be carried out and how the forecast model is to be chosen (manually by the stock planner or automatically by the system). You also have to define the sites for which you want to carry out requirements planning (see Customizing Guide).  You must carry out the process right up to goods receipt; otherwise you are not be able to carry out subsequent processes. When purchase orders remain in the system, they prevent purchase requisitions from being generated in the MRP run. 2.7 Order Optimizing You have to maintain the dimensions (weight, volume) in the basic data for the articles. You also have to list the articles in the distribution center. Enter a purchase price for your vendor and set the 'Variable Order unit' field to active (1). Check whether the 'Automatic purchase Order allowed' indicator in the Logistics view for your distribution center is set. 2.8 Investment Buying

To call up the Investment Buying transaction, you must be authorized to create a purchase order or purchase requisition.

You must have defined the relevant purchase condition types in Customizing. The system takes into account any changes to the condition types during Investment Buying and, if necessary, triggers a procurement transaction.  SAP Note 519685 must be implemented. 2.9 Load Building Automatic load building is available as of Release 4.6B with transaction WLB13, which replaces transaction WLB3. Recommendations for load building: Only start the program as a batch run at non-productive times when the system load is low (at night, for example), since large volumes of data can result in high workloads. Only use automatic load building in exceptional situations as an online process and, even then, only with restricted options on the selection screen (for example, when implementing load building; taking into account new load building combinations). Tools: You can use the load building analysis tool to check all load building-relevant entries for articles, plants, and vendors so that you can include an additional vendor, plant, or article. To keep sources of error to a minimum, we recommend you use the tool before the first load building run. 2.10 Goods Receipt Capacity Check Since SAP ECC 6.0, Enterprise Extension Retail, Enhancement Package 2 (PC-RET 602) you can use the Retail, Purchasing (ISR_RETAIL_BUYING) business function. With this business function, you can carry out a capacity check for the goods receipt. Up to now, there was no check for sufficient capacity for the delivery date of a planned delivery in the goods receipt area of a warehouse. If the goods are delivered to a warehouse door that does not have any free capacity, there can be a bottleneck in the goods receipt area of a warehouse. At the same time, another warehouse door might have enough capacity. The goods receipt capacity check has the following advantages for the retailer and vendor:  Taking the goods receipt capacity into account prevents potential bottlenecks.  The vendor's delivery date planning utilizes the capacity of the retailer's goods receipt areas.  The vendor can schedule the deliveries better since the planned time window for inbound deliveries is binding. Procedure Check if a logistic group is assigned in the article master data. With the logistic group you can group materials that are comparable with regard to their handling. You should also check the vendor assignment and you have to define the resources. 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing Non-Seasonal Purchase Management  Item Management  Change Article 1. On the Change Article screen, check the following entries. Field name Description User action and values Comment

Article PCS-01-ART116 (Fashion) PCS-01-ART413 (Hard goods) PCS-01-ART203(Food) View Logistics: Distribution center Choose Enter. Logistic Group Selection of NORM (Hardgoods and Choose one logistics handling Food) group group for workload HANG (Fashion) calculation in sub screen ‘Physical InventOry/ goods issue/ picking/ shipping’ 2. Choose Enter. 3. Choose Save and Back. 4. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Store Retailing  Purchasing  Purchase Order  Order Optimizing  Goods Receipt Capacity Check  Vendor Assignment Transaction code WGRC1 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Warehouse Manager (SAP_NBPR_WAREHOUSE_RT_S ) Business role menu Warehouse Management  Warehousing-Inbound  Vendor Assignment 5. On the Vendor – Door Assignment screen, make the following entries. Field name Description User action and values Comment Vendor PCS-V111 (Fashion) PCS-V411 (Hard goods) PCS-V201 (Food) Site VZ01 Storage Location 1001 Year 2012 (Current year) 6. Choose Execute. 7. Choose Door 001. 8. Choose Enter. 9. Choose Appended Line. 10. Add weekday (use F4),. 3 = Wednesday. 11. Add time, for example, 08:30:00. 12. Choose Save. 13. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Logistics  Store Retailing  Purchasing  Purchase Order  Order Optimizing  Goods Receipt Capacity Check  Resources Transaction code WGRC2 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Warehouse Manager (SAP_NBPR_WAREHOUSE_RT_S) Business role menu Warehouse Management  Warehouse-Inbound  Resources 14. On Display and Process Resources screen, Enter at selection screen: Field name Description User action and values Comment Site VZ01 Storage Location 1001 Door for Warehouse 001 Year 2012 (Current year) 15. Press Execute. 16. Enter the resources: Time in minutes per hour for example, 60 minutes from 08:00 to 17:00 (one person). 17. Choose Save. 18. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction

3 Requirement Planning A forecast of future requirements based on past consumption figures are needed to support requirements planning in certain MRP procedures. In some cases, the forecast is compulsory, while in others, it is used to provide additional, optional information. The forecast is carried out before requirements are planned. 3.1 Process Overview Table Process Step External Business Business Transaction Expected Process Condition Role Code Results Reference MRP Procedure Variant 1: Automatic Reorder Point Planning The Individual Retail Non- MM42 The Forecast Seasonal initialization Purchaser indicator is set automatioal ly for an initial forecast. Variant 2: Time- Phased Planning The Individual Retail Non- MM42 Forecast Seasonal Purchaser

Process Step External Business Business Transaction Expected Process Condition Role Code Results Reference Variant 3: Time- Phased Planning with Reorder Point Planning Carry Out the Retail Non- MM42 The Individual Forecast Seasonal initialization (from the Article Purchaser indicator is Master) set automaticall y for an initial forecast. It defines that the system initializes models during fOrecasting and calculates the parameters required for a forecast model, such as the basic value, trend value, and so on. Alternative: Retail MP30 Carrying Out the Replenishm Individual Forecast ent Planner (from the Menu) Variant 4: Forecast- Based Planning The Individual Retail Non- MM42 Forecast Seasonal Purchaser Optional: Retail MP33 Standard Reprocess the Replenishm PO created Forecast Results ent Planner under the number Make a note of the number. Planning Run Optional: Planning Retail MD21 Source list File Replenishm changed. ent Planner Carry Out Single- Retail MD03 Item, Single-Level Replenishm

Process Step External Business Business Transaction Expected Process Condition Role Code Results Reference Planning ent Planner Optional: Evaluating the Planning Results RP List Retail MD05 Replenishm ent Planner Current Retail MD04 Stock/Requirement Replenishm s List ent Planner Convert the Retail MD04 Standard Purchase Replenishm PO created Requisition to a ent Planner under the Purchase Order number Make a note of the number. Goods Receipt in Retail Non- MB01 the Distribution Seasonal Center Purchaser

4 MRP Procedure Requirements planning components in a computer-based retailing system must be able to procure specific goods in accordance with demand. The integrated concept of the SAPERP System ensures that users always have the latest sales data. Alongside article-specific inventory management, the SAP ERP System provides an accurate data basis for using the comprehensive range of requirements planning methods. The main task in requirements planning is to monitor stocks and, in particular, generate automatic order proposals for purchasing. This is achieved by means of various MRP procedures. The following MRP procedures are available:  Replenishment planning  Manual planning by visual inspection  Stock allocation  Consumption-based planning Consumption-based planning is the most common procedure used in retail. In consumption- based planning, future requirements are planned on the basis of past consumption values. In retail, those responsible for requirements planning must ensure that the goods are available for the recipients and consumers. This is achieved by means of various MRP procedures. Requirement quantities must be procured on time. The following activities are carried out:  Stock levels are monitored, that is, you determine which quantity of which articles are required by what deadline.  Sales and purchase Orders from the recipient are taken into account.  Forecasts are created.  Requirement quantities are determined.  Importantly, purchase Orders are generated automatically for purchasing. The stock planner defines a suitable forecasting, MRP, and lot-sizing procedure for specific articles. The requirements calculation is carried out as a net change planning procedure. Only

© SAP SE Page 6 of 8 SAP Best Practices Demand-driven Procurement (721): BPD those articles whose requirement or stock situation has changed are planned. All company processes that are relevant to requirements planning are taken into account. The system automatically highlights critical articles and exceptional situations, which relieves the stock planner of routine monitoring tasks. Depending on the creation indicator, the system creates RP lists (which contain the planning result for the article) during a planning run. The RP list always shows the future requirement and stock situation at the time the last planning run was carried out, and stock planners carry out their work on the basis of the information provided in the RP list. A purchase requisition is generated automatically on the basis of the requirements calculated by the system. The requirements planning result generated by the system can be adjusted manually by the stock planner. The purchase requisition is finally converted to a purchase order, which can then be forwarded to the vendor. Four different consumption-based planning procedures are available: 1. Automatic reorder point planning 2. Time-phased planning 3. Combination: time-phased planning with reorder point planning 4. Forecast-based planning 4.1 Variant 1: Automatic Reorder Point Planning In automatic reorder point planning, the integrated forecasting program determines the reorder point and the safety stock level. The program uses past consumption data to forecast future requirements. The system then uses these values to calculate the reorder point and safety stock level on the basis of the vendor service level to be determined by the stock planner and the RLT of the article. These are then transferred to the article master. Since the forecasting program is run at regular intervals, the reorder point and safety stock level are continually adapted to the current consumption and delivery situation. This helps keep stock levels low. In reorder point planning, you are advised to use fixed lot size or Replenishment to maximum stock level. 4.1.1 The Individual Forecast Use To carry out a forecast, the system accesses the historical data that is either imported automatically by the POS system or, as in this scope item, is maintained manually for practice purposes. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S ) Business role menu Purchasing Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries. Field name Description User action and values Comment Article PCS-03-ART141 select one article. For (Fashion) Fashion: use variants PCS-03-ART441(Hard goods)

PCS-03-ART205(Food) Distribution Center VZ01 Only for non-fashion article View Logistics: Distribution Center Choose Enter. Choose Consumption vals Total Consumption 200, 600, 500, 25, Enter value for each 150, 400, 150, 15, period. Maintain the 1000, 800, 700 11 periods which occurs in the past 3. Choose Enter. 4. Choose Back. 5. Choose Save. 6. Choose View Logistics: Distribution Center. 7. Choose Enter. 8. Choose Execute Forecast.

A constant model with first-order exponential smoothing (alpha factor: 0,10) is choosen as forecast model. Please retain these forecast model. 9. Accept the message by choosing Enter. 10. Choose Execute forecast twice. 11. Choose Adopt. 12. Choose Save. 13. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction.

The consumption values have been defaulted here, since they cannot be chosen at random to demonstrate the process. The integrated forecasting program calculates a safety stock level only when consumption fluctuates to a significant degree. A safety stock level is not otherwise considered necessary and, therefore, not calculated. The new reorder point and safety stock level is now displayed in the article master in the requirements planning parameters.

Before the initial forecast, you have to specify a reorder point so that the system can determine the reorder point again in the future. 4.2 Variant 2: Time-Phased Planning If a vendor always supplies an article on a particular day of the week, you are advised to plan this article according to the same cycle and taking the delivery time into account. You can use the planning calendar to create these intervals. Time-phased planning determines forecast requirements to forecast future consumption. Before you plan requirements, you have to carry out a forecast because this is the only of ensuring sufficient coverage until the next MRP run. The forecast is based on past consumption. When the planning run is started depends on the requirements planning cycle. You can bring the MRP run forward to an earlier date. 4.2.1 The Individual Forecast

Use Before you plan requirements, you have to carry out a forecast because this is the only of ensuring sufficient coverage until the next MRP run. To carry out a forecast, the system accesses the historical data that is either imported automatically by the POS system or, as in this scope item, is maintained manually for practice purposes. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S ) Business role menu Purchasing Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries. Field name Description User action and values Comment Article PCS-01-ART116 select one article. For (Fashion) Fashion: use variants PCS-01-ART413(Hard goods) PCS-01-ART203(Food) Distribution Center VZ01 View Logistics: Distribution Center Choose Enter. Choose Consumption values Total Consumption 100 Entry per row. Please maintain 11 periods at least 3. Choose Enter. 4. Choose Back. 5. Choose Save. 6. Choose View Logistics: Distribution Center. 7. Choose Enter. 8. Choose Execute Forecast. 9. Accept the message by choosing Enter. 10. Choose Execute Forecast twice. 11. Choose Adopt. 12. Choose Save. 13. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction

If you want to run forecasting for the same article again, you first have to set the indicator (X) for field Initialization in the RP/forecast data view (subscreen control data) so that the system can initialize the data (scroll right to the bottom of the screen). 4.3 Variant 3: Time-Phased Planning with Reorder Point Planning In this procedure, the article is not only planned in a fixed cycle but also if the reorder point is undershot. The reorder point can also be determined by means of a forecast carried out by the system. If the reorder point is undershot, the system automatically sets the status indicator in the planning file so that the article is included in the next planning run. The requirements calculation runs at the same time as the extraordinary requirements planning (triggered as a result of the reorder point being undershot) as follows: As a basis for the calculation, the system uses a time interval that stretches from the time at which the shortage of the reorder point occurred to the availability date of the next regular requirements planning date. The ordered quantity must be sufficient for this time interval. The article will be planned as usual on the next requirements planning date. 4.3.1 Carrying out the Individual Forecast (from the Article Master) Use An individual forecast means that the forecast is carried out for a specific article at a specific site. In practice, of course, a forecast for all articles at one site/at all sites (total forecast) is carried out in the background (batch) for performance reasons. A forecast can be carried out only if past consumption values exist for the article. The consumption values are updated by the system in the article master record when the article is removed from the warehouse and can be checked and, if necessary, changed before the forecast is carried out. You can also enter past consumption values manually (as described here) as base values for the initial forecast. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S ) Business role menu Purchasing Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries. Field name Description User action and values Comment Article PCS-04-ART141 select one article. For (Fashion) Fashion: use variants PCS-04-MRP441(Hard goods)

Field name Description User action and values Comment PCS-04-MRP201(Food) Distribution Center VZ01 View Logistics: Distribution center Choose Enter. Choose Consumption values Total Consumption 100 Per row 3. Choose Enter. 4. Choose Back. 5. Choose Save. 6. Choose View Logistics: Distribution Center. 7. Choose Enter. 8. Choose Execute Forecast. 9. Accept the message by choosing Enter. 10. Choose Execute Forecast twice. 11. Choose Adopt. 12. Choose Save. 13. Choose Back (F3) to the SAP Easy Access screen (SAP GUI). Or Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP Home (SAP NetWeaver Business Client). 14. You can check the executed forecast as described. 15. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role (SAP_NBPR_NONSEASBUYER_RT_S ) Retail Non-Seasonal Purchaser Business role menu Purchasing Non-Seasonal Purchase Management  Item Management  Change Article 16. On the Change Article screen, make the following entries: Field name Description User action and values Comment Article PCS-04-ART141 select one article. For (Fashion) Fashion: use variants PCS-04-MRP441(Hard goods) PCS-04-MRP201(Food) Distribution Center VZ01 View Logistics: Distribution

center Choose Enter. Period Indicator Subscreen: W FOrecast Parameters Last Forecast Date You should find here the date of the last forecast. The forecast date is Monday, because Order Day Monday is maintained for these article. 17. Choose RP/Forecast data. Check the information for the article. 18. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction

If you want to run forecasting for the same article again, you first have to set the indicator (X) in the Distribution Center Logistics view ([RP/forecast data; subscreen control data; field Initialization)]) so that the system can initialize the data (scroll right to the bottom of the screen). Result The initialization indicator is set automatically for an initial forecast. It defines that the system initializes models during forecasting and calculates the parameters required for a forecast model, such as the basic value, trend value, and so on. 4.3.2 Alternative: Carrying out the Individual Forecast (from the Menu) Use Unlike when you carry out the individual forecast from the article master, the forecast cannot be initialized and the parameters (reorder point, for example) cannot be changed. If you want to repeat the individual forecast here, you first have to initialize the forecast in the article master by setting the indicator (X) for field Initialization (Distribution Center Logistics view, [RP / forecast data; subscreen control data]) (scroll right to the bottom of the screen). Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Forecast  Individual forecast  Execute Transaction code MP30 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Forecast  Execute Article Forecast 2. On the Execute Forecast: Initial Screen, make the following entries: Field name Description User action and values Comment

Article PCS-04-ART141 select one article. (Fashion) FOr Fashion: use PCS-04-MRP441 (Hard variants goods) Variant: PCS-04-MRP201 (Food) PCS-04-ART141001 to PCS-04-ART141008 Site VZ01 3. Choose Enter. 4. If no forecast has yet been carried out for the article, the Last Forecast field is empty and the system displays the message, until now no forecast values were saved. 5. Choose Historical values. 6. Choose Back. 7. Choose Execute. Accept the message by choosing Enter. You now see the message: Forecast calculation was carried out.

Check and, if necessary, change the value in the 'Corrected values' column manually. 8. Choose Extras  Addtl. Parameter from the menu bar. In NWBC, choose the More button. 9. Choose Enter. 10. Choose Extras  Messages from the menu bar. 11. Choose Save. If necessary, accept messages with YES. 12. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 4.4 Variant 4: Forecast-Based Planning Forecast-based planning is also based on consumption. Like automatic reorder point planning, forecast values for future requirements are determined by the integrated forecasting program. In contrast to reorder point planning, however, these values form the basis of the planning run. The forecast, which calculates future requirements using historical data, is carried out at regular intervals. This offers the advantage that requirements, which are automatically determined, are continually adapted to suit current consumption needs. The forecast requirement is reduced by the articles withdrawn in the period, so that the forecast requirements that have already been produced is not included in the planning run again. You can specify the period pattern for the forecast (daily, weekly, monthly or per accounting period) and the number of periods to be included in the forecast individually for each article. It is possible, however, that the forecast period pattern is not specific enough for planning requirements. In this case, you can define per article that the forecast requirements should be divided according to a finer period pattern for planning. You can also define how many forecast periods are to be taken into account during requirements planning. In forecast-based planning, the forecast values are transferred as requirements and replace the reorder point. The safety stock level is determined by the forecast. 4.4.1 The Individual Forecast Use To carry out a fOrecast, the system accesses the historical data that is either imported automatically by the POS system or, as in this scope item, is maintained manually for practice purposes. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role (SAP_NBPR_NONSEASBUYER_RT_S ) Retail Non-Seasonal Purchaser Business role menu Purchasing Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries: Field name Description User action and values Comment Article PCS-02-ART116 select one article. For (Fashion) Fashion: use variants PCS-02-ART419 (Hard goods) PCS-02-ART202 (Food) Distribution Center VZ01 View Logistics: Distribution center Choose Enter. Choose Consumption values Total Consumption 100 Per row 3. Choose Enter. 4. Choose Back. 5. Choose Save. The Message: the article/variant changed. 6. Choose View Logistics: Distribution Center. 7. Choose Enter. 8. Choose Execute Forecast. 9. Accept the message by choosing Enter. 10. Choose Execute Forecast twice. 11. Choose Adopt. 12. Choose Save. The Message: the article/variant changed. 14. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction 4.5 Optional: Reprocess the Forecast Results Use After a (total) forecast, you have to check the results to ensure that the forecast was carried out correctly. You can check the forecast results using a list (print a list using a print program) or (as described here) check the forecast results online. Any errors or exceptional situations that occurred during the total forecast are logged in exception messages (these are actually notes rather than errors) and assigned to a specific error class. The articles for which errors occurred during the forecast are marked for reprocessing. Procedure 1. Access the transaction using one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Forecast  Total forecast  Reprocess Transaction code MP33 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role (SAP_NBPR_REPLENISHPLAN_RT_S ) Retail Replenishment Planner Business role menu Replenishment Planning  Forecast  Reprocess Article Forecast 2. On the Forecast Reprocessing screen, make the following entries. Field name Description User action and values Comment Site VZ01 Stock Planner D01 Period Indicator W 3. Select all under the Error Classes Selection. 4. Choose Enter.

If no error list is displayed,the message ” No re-evaluation record for stock planner D01 for this choice” appears. When an error list is displayed, then double-click the articles that are to be reprocessed. 5. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 4.6 Planning Run Requirements Planning involves determining the quantity of articles required by the deadline. Requirements planning can be carried out for a different number of articles. The amount of articles to be planned is determined by the type of planning run. You define the planning run type in the processing key field on the initial screen. The requirements planning run can be carried out as overall planning for a specific site or as individual planning for one article. It is based on the entries in the planning file. Requirements planning, which is carried out automatically by the planning calendar defined, uses the forecast data to determine the order requirement. You can bring forward requirements planning (for example, a planning run due to be carried out on Monday can be carried out on the Saturday before). A manual requirement planning is carried out for demonstration purposes. 4.6.1 Optional: Planning File Use The planning file contains an entry for all MRP-relevant articles at a site, provided requirements planning have been activated for the site. The planning file uses different indicators to control whether an article is included or not in requirements planning. In other words, the planning run and planning scope is determined by the planning file. If an MRP-relevant change is made to an article (a purchase order is created, for example), the system sets a change indicator (NETCH planning flag) for the planning file entry. This change indicator is used in this example. If MRP- relevant changes are made within the planning horizon, the system sets a further change indicator (NETPL planning flag). Display the planning file for your article. Procedure 1. Access the transaction using one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Requirements planning  Planning file entry  Display Transaction code MD21 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S ) Business role menu Replenishment Planning  Planning  Display Planning File Entry 2. On the Display planning file entries screen, make the following entries. Field name Description User action and values Comment Article From article 1 to article 4. Select one article. (listed on next page) For Fashion: use variant. Site VZ01 3. Choose Execute. 4. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction Refer the article values from article 1 to article 4. Fashion Hard goods Food ARTICLE 1 PCS-04-ART141 PCS-04-MRP441 PCS-04-MRP201 TIME-PHASED PLANNING Variant: W. REORDER POINT / PCS-04-ART141001 SUPPLY SOURCE DET. to PCS-04-ART141008 ARTICLE 2 PCS-01-ART116 PCS-01-ART413 PCS-01-ART203 TIME-PHASED PLANNING Variant: PCS-01-ART116001 to PCS-01-ART116008 ARTICLE 3 PCS-03-ART141 PCS-03-ART441 PCS-03-ART205 AUTO. REORDER POINT Variant: PCS-03-ART141001 to PCS-03-ART141008 ARTICLE 4 PCS-02-ART116 PCS-02-ART419 PCS-02-ART202 FORECAST-BASED Variant: PLANNING PCS-02-ART116001 to PCS-02-ART116008 4.6.2 Carrying out Single-Item, Single-Level Planning Use To plan the article for your distribution center, trigger requirements planning in your distribution center.

For single-item planning, you always plan using the parameters that are entered on the initial screen, that is, the creation indicators determine the result of the planning run. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  RequirementspPlanning Sng-Item, sng-level Transaction code MD03 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S ) Business role menu Replenishment Planning  Planning  RP-Individual Planning- Single Level 2. On the Single-Item, Single-Level screen, make the following entries: Field name Description User action and values Comment Article From article1 to article4. Select one article. For Fashion: use variants Site VZ01 Processing key NETCH Create purchase req. 1 Delivery schedules 1 Create RP list 1 Planning mode 3 Scheduling 1 Planning date Today's date

Display results ’X’ befOre they are saved 3. Choose Enter. 4. Accept the message: Check input parameters, by choosing Enter. 5. Double-click the number of Purchase requisition. 6. Choose Back 7. Choose Save. 8. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 4.6.3 Optional: Evaluating the Planning Results You can evaluate the planning situation or result of a planning run using the current stock/requirements list or RP list. Individual access and collective access are available. The basic structure of both lists is identical. 4.6.3.1 RP List Use

Depending on the creation indicator, the system creates RP lists during a planning run. The RP list contains the future requirements and stock situation at the time of the last planning run until they are either deleted manually or replaced with a new list generated during the next planning run. It shows the result of the last planning run and in statistical form, which means that changes made after the planning run are not displayed. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Requirements planning  RP List  Individual Display Transaction code MD05 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S ) Business role menu Replenishment Planning  Planning  Individual Display Of RP- List 2. On the RP List: Initial Screen, make the following entries: Field name Description User action and values Comment Article Tab: From article 1 to article 4. Select one article. Individual choose the same article For Fashion: use access used in 4.6.2 variants

Site VZ01 3. Choose Enter. 4. Open the header details for more information about the article. 5. Choose Elements Details. 6. Choose Enter. 7. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction Fashion Hard goods Food ARTICLE 1 PCS-04-ART141 PCS-04-MRP441 PCS-04-MRP201 TIME-PHASED PLANNING Variant: W. REORDER POINT / PCS-04-ART141001 SUPPLY SOURCE DET. to PCS-04-ART141008 ARTICLE 2 PCS-01-ART116 PCS-01-ART413 PCS-01-ART203 TIME-PHASED PLANNING Variant: PCS-01-ART116001 to PCS-01-ART116008 ARTICLE 3 PCS-03-ART141 PCS-03-ART441 PCS-03-ART205 AUTO. REORDER POINT Variant: PCS-03-ART141001 to PCS-03-ART141008

ARTICLE 4 PCS-02-ART116 PCS-02-ART419 PCS-02-ART202 FORECAST-BASED Variant: PLANNING PCS-02-ART116001 to PCS-02-ART116008 4.6.3.2 Current Stock/Requirements List Use The current stock/requirements list is a dynamic list that displays the current status of the stock, requirements, and receipts. Changes are displayed as soon as you call up the current stock/requirements list or update the elements in real time from the database by choosing 'Refresh' (in the display for the current stock/requirements list). In this way, you can always see the current availability situation of the article in the stock/requirements list (note the time). Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Requirements planning  Stock/requirements list Transaction code MD04 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S ) Business role menu Replenishment Planning  Planning  Display Stock/Requirements Situation 2. On the Stock/Requirements List: Initial Screen, make the following entries: Field name Description User action and values Comment Article Tab: From article 1 to article 4. Select one article. Individual choose the same article For Fashion: use access used in4.6.3.1; you will find variants the list of article on the next page Site VZ01 3. Choose Enter. 4. Double-click Purchase Requisition. 5. Choose Enter and Back. Refer the article values from article 1 to article 4. Fashion Hard goods Food ARTICLE 1 PCS-04-ART141 PCS-04-MRP441 PCS-04-MRP201 TIME-PHASED PLANNING Variant: W. REORDER POINT / PCS-04-ART141001 SUPPLY SOURCE DET. to PCS-04-ART141008

ARTICLE 2 PCS-01-ART116 PCS-01-ART413 PCS-01-ART203 TIME-PHASED PLANNING Variant: PCS-01-ART116001 to PCS-01-ART116008 ARTICLE 3 PCS-03-ART141 PCS-03-ART441 PCS-03-ART205 AUTO. REORDER POINT Variant: PCS-03-ART141001 to PCS-03-ART141008 ARTICLE 4 PCS-02-ART116 PCS-02-ART419 PCS-02-ART202 FORECAST-BASED Variant: PLANNING PCS-02-ART116001 to PCS-02-ART116008 4.6.4 Converting the Purchase Requisition to a Purchase Order Use Carry out requirements planning right up to goods receipt, otherwise you are not be able to carry out subsequent processes. When purchase orders remain in the system, they prevent purchase requisitions from being generated in the MRP run. You started by carrying out requirements planning for a distribution center. This process generated purchase requisitions. The purchase requisitions are now converted to purchase orders for the vendor. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Requirements planning  Stock/requirements list Transaction code MD04 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Planning  Display Stock/Requirements Situation 2. On the Stock/Requirements List: Initial Screen, make the following entries: Field name Description User action and values Comment Article “Individual From article 1 to article 4. Select one article. Access” tab choose the same article used For Fashion: use in 4.6.2; you will find the list variants. See of article on the previous chapter 2 page Prerequisites.. Site VZ01 3. Choose Enter.

4. Double-click Purchase requisition. 5. Choose Convert Purchase Requisition to Purchase Order. 6. On the screen: Create Purchase Order, enter Company Code: 1000. Select the open purchase requisition on the left in the document overview and drag it to the shopping basket on the left next to Standard purchase Order'. 7. Choose Enter. 8. If necessary, ignore message: No time window assigned for site VZ01 and storage location 1001, with Enter.

This message comes up when Article 2 is also customized for goods receipt capacity check. For more infOrmation about goods receipt capacity check, look at chapter:2.10 9. Choose Save and ignore other messages (if necessary). 10. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction Result Standard PO created under the number Make a note of the number. 4.6.5 Goods Receipt in the Distribution Center Use In the following section, the goods receipt is posted with reference to the purchase Order. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Merchandise Logistics  Goods Receipt  Goods Receipt for Purchase Order Transaction code MB01 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing Non-Seasonal Purchase Management  Purchase Orders  Post Goods Receipt for PO 2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries: Field name Description User action and values Comment Delivery note 12345 Enter delivery note if requested Movement Type 101 Purchase Order Purchase Orders of 4.6.4 Site VZ01 Storage Location 1001 3. Choose Enter. 4. Choose Save and ignore the messages (if necessary). 5. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction

5 Supply Source Determination A supply source is a potential for procuring an article. A supply source can be external (a vendor, fOr example) or internal (a firm's own site, for example). Purchasing manages internal or external supply sources using the source list and quota arrangement. 5.1 Process Overview Table Process Steps External Business Business Transaction Expected Process Condition Role Code Results Reference Supply Source Determination Supply Source 1: Quota Arrangement Supply Source Retail ME51 The quantity 2: Source List Replenish contract was ment registered as Planner supply source in the document Maintain Source Retail ME01 Source list List Replenish changed. ment Planner Create Retail ME51 Purchase Non- Requisition Seasonal (Automatic Purchaser Supply Source Determination) Purchase Order Retail ME21N Standard PO With Reference Non- created under to the Purchase Seasonal number Make a Requisition Purchaser note of the PO number. Goods Receipt Retail MB01 in the Non- Distribution Seasonal Center Purchaser Supply Source 3: Purchasing Info RecOrd Displaying the Retail ME13 Purchasing Info Non- RecOrd Seasonal Purchaser Purchase Retail ME51 Purchase Requisition Non- requisition (Assign Supply Seasonal number 10000 Source) Purchaser was created. Make a note of

Process Steps External Business Business Transaction Expected Process Condition Role Code Results Reference the number. Automatic Retail ME59 Purchase Order Conversion of Replenish 4500XX was the Purchase ment created. The row Requisition to a Planner is green. Note Purchase Order the purchase Order number. Goods Receipt Retail MB01 in the Non- Distribution Seasonal Center Purchaser

5.2 Supply Source 1: Quota Arrangement Quota arrangements are rarely used in retail, and so are not described in detail here. Quota arrangements can be used to define various internal or external sources of supply to which procured merchandise is to be distributed using quota arrangements. You can also enter outline agreements as sources of supply. You can use quota arrangements, for example, for articles that cannot be supplied by a sole vendor because demand is too great. By fixing quotas, you can distribute demand to different supply sources automatically. 5.3 Supply Source 2: Source List Source list entries are also rarely used in retail. Purchasing can use the source list to manage supply sources centrally. The source list contains the permitted (and not permitted = blocked) supply sources for an article in a specified site and period. This enables you to assign an internal or external supply source and a validity period to an article/site combination. Each supply source is defined in the source list in a source list record. You can also enter outline agreements as supply sources or define fixed vendors or preferred outline agreements. You can use the source list to fine-tune the supply source determination for individual articles. 5.3.1 Maintaining Source List Use You enter supply sources manually in the source list. You are advised to use this method when you have to make a number of changes or enter new data in the source list: Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order  Master Data Source List  Maintain Transaction code ME01 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner(SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Source List  Maintain Source List 2. On the Maintain Source List: Initial Screen, make the following entries: © SAP SE Page 6 of 8 SAP Best Practices Demand-driven Procurement (721): BPD

Field name Description User action and values Comment Article PCS-01-CON142(Fashion) For generic PCS-03-CON431(Hard articles, enter Goods) the variants PCS-03-CON201(Food) Site VZ01 Choose Enter. Valid from Today's date Valid to 31.12.9999 VendOr PCS-V141(Fashion) PCS-V431(Hard Goods) PCS-V201(Food) POrg 1000 Fix 'X' 3. Choose Enter. 4. Create a second entry for another vendor. Field name Description User action and values Comment Valid from Today's date Valid to 31.12.9999 Vendor PCS-V142(Fashion) PCS-V432(Hard Goods) PCS-V202(Food) POrg 1000 Fix blank 5. Choose Enter. 6. Ignore warning messages with Enter. 7. Choose Save. 8. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction Result Source list changed. 5.3.2 Creating Purchase Requisition (Automatic Supply Source Determination) Use A purchase requisition is a request to the purchasing department to procure a quantity of an article so that it is available at a certain point in time. Purchase requisitions are created manually or automatically in requirements planning, for example. In this scope item, you create the purchase requisition manually. If supply sources for the requested article have already been defined in the system, the system locates these automatically and assigns them to the purchase requisition. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) © SAP SE Page 6 of 8 SAP Best Practices Demand-driven Procurement (721): BPD

SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Purchase Requisition  Create Transaction code ME51 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing Non-Seasonal Purchase Management  Purchase Requisition  Create Purchase Requisition 2. On the Create Purchase Requisition: Initial Screen, make the following entries: Field name Description User action and values Comment Document Type NB

Source Determination ‘X’ Site VZ01 Storage location 1001 Choose Enter. Article PCS-01-CON142(Fashion) For generic PCS-03-CON431(Hard articles, enter Goods) the variants PCS-03-CON201(Food) Quantity Requested 10 3. Choose Enter. 4. If necessary, accept warning messages by choosing Enter. 5. Choose Save. 6. Make a note of the purchase requisition number. 7. To change data on item level in the purchase requisition, access the transaction choosing one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Purchase Requisition  Change Transaction code ME52 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing Non-Seasonal Purchase Management  Purchase Requisition  Change Purchase Requisition 8. On the Change Purchase Requisition: Initial Screen, make the following entries: Field name Description User action and values Comment Purchase requisition See above (Step 5) 9. Choose Enter. 10. Select position and choose the Item details button. 11. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction 5.3.3 Purchase Order with Reference to the Purchase

Requisition Use The purchase requisitions are now converted to purchase orders for the vendor. Create a purchase order with reference to the purchase requisition. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order Purchase Order Create Vendor Known Transaction code ME21N Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu PurchasingNon-Seasonal Purchase Management  Purchase Orders  Create Purchase Order 2. On the Create Purchase Order screen, choose Document overview on (if required) and with the help of the selection, choose My purchase requisition. 3. Select the purchase requisition of 5.3.2 on the left side and drag it to the shopping basket. 4. Choose Enter. 5. Accept all messages, for example, Can delivery date be met? by choosing Enter. 6. Choose Save. 7. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction Result Standard PO created under number Make a note of the PO number. 5.3.4 Goods Receipt in the Distribution Center Use In the following section, the goods receipt is posted with reference to the purchase order. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Merchandise Logistics  Goods Receipt  Goods Receipt for Purchase Order Transaction code MB01 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing Non-Seasonal Purchase Management  Purchase Orders  Post Goods Receipt for PO 2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries: Field name Description User action and values Comment Movement Type 101

Purchase Order Purchase Order of 5.3.3 Site VZ01 Storage Location 1001 3. Choose Enter. 4. Choose Post. 5. If necessary, accept the message: Enter delivery note for evaluated receipt settlement, by choosing Enter. 6. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction 5.4 Supply Source 3: Purchasing Info Record The purchasing info record plays an important role in the entire purchasing process and is, therefore, described in detail here. The purchasing info record (or info record) acts as a source of information for the purchasing department. It creates the relationship between a vendor and an article and contains, for example, the prices and conditions. The Purchasing view in the article master is not structured in the same way as a purchasing info record; you can create a purchasing info record of this kind by choosing the [INFO RECORD] button in the Purchasing view. When stock is transferred from a distribution center to a stOre, you do not have to maintain a purchasing info record. The info record has a higher priority than the article master record. Reference handling in the purchasing data in the vendor master ("Propose Article Values" subscreen) enables you to use the data in the info record as default data (in purchase Orders, for example). Purchasing info records enable the buyer to determine which articles a particular vendor has offered or delivered so far and which vendors can offer or deliver a particular article. They can be created manually or automatically when a quotation, purchase order, or outline agreement is maintained. Purchase order data is always updated automatically in the info record. ImpOrtant fields in the article master of the Purchasing view include 'Variable order unit', 'Regular vendor', the [INFO RECORD] button, 'Planned delivery time', and 'Rounding profile' (for more information, see the documentation for the Ordering process) In retail, purchasing info records also show outline agreements with the vendor in a simplified form without the outline agreement. A purchasing info record defines internal or external supply sources. 5.4.1 Displaying the Purchasing Info Record Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master data  Vendor Data Purchasing Info Record Display Transaction code ME13 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing Non-Seasonal Purchase Management  Info Records  Display Purchasing Info Records 2. On the Display Info RecOrd: Initial Screen, make the following entries: Field name Description User action and values Comment Vendor PCS-V141(Fashion) PCS-V441(Hard Goods) PCS-V201(Food) © SAP SE Page 6 of 8 SAP Best Practices Demand-driven Procurement (721): BPD

Article PCS-04-ART141 (Fashion) The PCS-04-MRP441(Hard Goods) purchasing info record PCS-04-MRP201(Food) used on the header level of a generic article will be used by every variant until a specific info record for a variant is created Purchasing Org. 1000 Site VZ01 3. Choose Enter.

Make a note of the Purchasing Info record. 4. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 5.4.2 Purchase Requisition (Assign Supply Source) Use If a vendor has not been assigned to a purchase requisition, you can assign supply sources to purchase requisitions manually. If the system proposes more than one supply source, you can carry out a simulation to determination the lowest price. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  PurchaseRrequisition  Create Transaction code ME51 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing Non-Seasonal Purchase Management  Purchase Requisition  Create Purchase Requisition 2. On the Create Purchase Requisition: Initial Screen, make the following entries: Field name Description User action and values Comment Document type NB

Source determination ‘X’ Site VZ01 Storage location 1001 Purchasing group 101 Choose Enter.

Article PCS-01-ART141 (Fashion) FOr generic Variant: articles, enter the variants PCS-04-ART141001 to PCS-04-ART141008 PCS-04-MRP441 (Hard Goods) PCS-04-MRP201 (Food) Quantity requested 10 3. Choose Enter. 4. Accept the message: Can delivery date be met? by choosing Enter. 5. Choose EditAssign source of supply from the menu. In NWBC, choose the More button. 6. If necessary, accept the message Existing sources will be lost, by choosing Enter. 7. Double-click line item of Vendor PCS-Vxxx/ Info/agmt. (see 5.4.1). 8. Choose Save. 9. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. Result Purchase requisition was created. Make a note of the number. 5.4.3 Automatic Conversion of the Purchase Requisition to a Purchase Order Use Purchase requisitions that have been assigned can be converted to purchase Orders for the vendor. Create a purchase order by converting the purchase requisition you created to a purchase Order (Automatically via purchase requisition). Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Purchase Order  Create Automatically via purchase requisition Transaction code ME59 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Purchase Orders  Automatic Generation of POs 2. On the Automatic Creation of Purchase Orders from Requisitions screen, make the following entries: Field name Description User action and values Comment Purchasing group 101 Purch. Organization 1000 Vendor PCS-V141(Fashion) PCS-V441(Hard Goods)

PCS-V201(Food) Site VZ01 Test run select Purchase requisition See 5.4.2 3. Choose Execute. 4. If there is a message saying, Test run successful, choose Back and unmark Test run. 5. Choose Execute. Result Purchase Order 450000XXXX was created. The row is green. Note the purchase order number. Choose Back twice. 5.4.4 Goods Receipt in the Distribution Center Use In the following section, the goods receipt is posted with reference to the purchase order. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Merchandise Logistics  Goods Receipt  Goods Receipt for Purchase Order Transaction code MB01 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_PERISHABLEBUYER_RT_S ) Business role menu Purchasing Non-Seasonal Purchase Management  Purchase Orders  Post Goods Receipt for PO 2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries: Field name Description User action and values Comment Movement Type 101 Purchase Order Purchase Order of 5.4.3 Site VZ01 Storage Location 1001 3. Choose Enter. Note that when a rounding profile is set up in the article master data (logistic view), the piece quantity is rounded down to a carton quantity (for example, for article PCS- V441) 4. Choose Post. 5. If necessary, accept all messages by choosing Enter. 6. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction

6 Contract Processing 6.1 Process Overview Table

Process Step External Business Business Transaction Expected Process Condition Role Code Results Contract Processing Supply Source 4: Outline Agreements (Contracts) Create Contract Retail ME31K Quantity contract Replenishm was created ent Planner under the number 46000. Make a note of the number. Create Purchase Retail ME51 The quantity Requisition Replenishm contract was (Assign Supply ent Planner registered as Source) supply source in the document. Release Order Retail ME21N Standard PO for the Contract Replenishm created under ent Planner number 45. Note the PO number. Display Release Retail ME33K Documentation Replenishm ent Planner Goods Receipt in Retail Non- MB01 the Distribution Seasonal Center Purchaser

6.2 Supply Source 4: Outline Agreements (Contracts) The outline agreements in the system are evaluated during supply source determination. An outline agreement can refer to an external supply source (value or quantity contract, for example) or an internal supply source (stock transport scheduling agreement). In retail, purchasing info records also show outline agreements with the vendor in a simplified form without the outline agreement (see 5.4). 6.2.1 Creating Contract Use Contracts can be created manually or with reference to a purchase requisition, inquiries/quotations, or other contracts. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Environment  Purchase Order  Outline Agreement  Contract  Create Transaction code ME31K Option 2: SAP NetWeaver Business Client (SAP NWBC)

Business role Retail Replenishment Planner(SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Contract  Create Contract 2. On the Create Contract: Initial Screen, make the following entries: Field name Description User action and values Comment Vendor PCS-V141(Fashion) PCS-V431(Hard Goods) PCS-V201(Food) Agreement type MK Agreement date Today Purch. Organization 1000 Purchasing group 101 Site VZ01 Storage Location 1001 Choose Enter. Validity end End of year Choose Enter. Article PCS-01-CON141(Fashion) PCS-01-CON431(Hard Goods) PCS-01-CON201(Food) Targ.qty 100 Choose Enter. If you get the message: Use GR- based invoice verification, Please flag the field GR- Based IV and choose Enter. (NWBC: More... )Header  From menu Conditions CnType RA01 Amount 1 3. Choose Enter. 4. Choose Back. 5. Choose Save. 6. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction Result Quantity contract was created under the number 46000XXXXX. Make a note of the number. 6.2.2 Creating Purchase Requisition (Assigning Supply

Source) Use Contracts can be entered in the purchase requisition as a supply source. When the purchase requisition is converted to a purchase order, the reference to the outline agreement is created. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  PurchaseRrequisition  Create Transaction code ME51 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Purchase Requisition  Create Purchase Requisition 2. On the Create Purchase Requisition: Initial Screen, make the following entries: Field name Description User action and values Comment Document type NB

Source determination ‘X’ Site VZ01 StOrage location 1001 Purchasing group 101 Choose Enter. Article PCS-01-CON141(Fashion) For generic PCS-01-CON431(Hard articles, enter Goods) the variants PCS-01-CON201(Food) Quantity requested 100 3. Choose Enter. 4. Accept the message: Can delivery date be met? by choosing Enter. 5. Enter proper value (for example: 7) in the field Val. Price if the system requires input. 6. Select the position. 7. Choose (NWBC: More…) Edit  Assign source of supply from the menu. 8. If necessary, accept the message: Existing sources will be lost, by choosing Enter. 9. Double-click your quantity contract number (see 6.2.1) on column Info/agmt to choose it. 10. Choose Save. 11. Choose Back. Purchase requisition number 1000000X is created. Note the number. 12. Check if the quantity contract is assigned as supply source to the purchase requisition. 13. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Purchase Requisition  Change

Transaction code ME52 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Purchase Requisition  Change Purchase Requisition 14. On the Change Purchase Requisition: Initial Screen, make the following entries: Field name Description User action and values Comment Purchase requisition See above 15. Press Enter. 16. Select position and choose Item Details. 17. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. Result The quantity contract was registered as supply source in the document. 6.2.3 Releasing Order for the Contract Use Contracts do not contain any details about delivery times. To ensure that the vendor knows which quantities are required by which time, you have to create a release order for a contract. When you create a release order, data (vendor data, price, terms of delivery) is copied from the contract directly to the purchase order. You release a contract by creating a purchase order with reference to the existing contract. Purchase Orders created in this way are called release orders (also releases or contract release Orders). Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order Purchase Order Create Vendor Known Transaction code ME21N Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Purchase Orders  Create Purchase Order 2. On the Create Purchase Order screen, click on the Document Overview on button (If required). 3. On the left side, click on the Selection Variants button, select My purchase requisition. 4. Select the purchase requisition of 6.2.2 and drag it to the shopping basket. 5. Choose Enter. 6. If necessary, accept the message: Can delivery date be met? by choosing Enter. 7. Choose Save. 8. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction.

Result Standard PO created under number 45XXXXXXXX. Note the PO number. 6.2.4 Displaying Release Documentation Use The release documentation displays the current status of releases for a contract. The release documentation (quantity released so far, open quantity, for example) is automatically updated when you create a release order. It provides information on the total value of each release and the target contract value that is still open. It is important for monitoring the contract. You can now find out how the release order has affected the contract. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Environment  Purchase Order  Outline Agreement  Contract  Display Transaction code ME33K Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role (SAP_NBPR_REPLENISHPLAN_RT_S) Retail Replenishment Planner Business role menu Replenishment Planning  Contracts  Display Contract 2. On the Display Contract: Initial Screen, make the following entries: Field name Description User action and values Comment Agreement See 6.2.1 3. Choose Enter. 4. Select Item 10 and choose (NWBC: More…) Item  Statistics  Release Documentation from the menu. 5. Position your cursor on the purchase order number and choose Release Details. 6. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 6.2.5 Goods Receipt in the Distribution Center Use In the following section, the goods receipt is posted with reference to the purchase order. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Merchandise Logistics  Goods Receipt  Goods Receipt for Purchase Order Transaction code MB01 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role (SAP_NBPR_NONSEASBUYER_RT_S) Retail Non-Seasonal Purchaser Business role menu PurchasingNon-Seasonal Purchase Management  Purchase

Orders  Post Goods Receipt for PO 2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries: Field name Description User action and values Comment Movement Type 101 Purchase Order Purchase Order of 6.2.3 Site VZ01 Storage Location 1001 3. Choose Enter. 4. Choose Post. 5. If necessary, accept the message Enter delivery note for evaluated receipt settlement, by choosing Enter. 6. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction

7 Purchase Order Processing 7.1 Process Overview Table Process Step External Business Business Transaction Expected Process Condition Role Code Results Reference Purchase Order Processing Plan Workbench Check the Stock Retail Non- RWBE Seasonal Purchaser Check Retail Non- MM42 consumption Seasonal and forecast Purchaser values Create SECATT Standard PO Purchase created under Orders via the number 45. eCATT Online Retail WWP1 Requirements Replenish Planning ment Planner Order Retail WWP3 Cancellation Replenish ment Planner Set the Inward Delivery Completed Indicator Set the Delivery Date

Process Step External Business Business Transaction Expected Process Condition Role Code Results Reference Set the Deletion Indicator Order Release Retail Non- ME21N Release Seasonal effected with Purchaser release code 01. The row becomes green. The release indicator changes from '1' to '2'. Goods Receipt Retail Non- MB01 in the Seasonal Distribution Purchaser Center Order Optimizing Quantity Optimizing Article Master Retail Non- MM42 Data Seasonal Purchaser Create Retail Non- ME21N Purchase Order Seasonal Purchaser Non- SPRO A new window Application- appears Specific containing the Simulation of results of the Rounding simulation. Profiles Investment Buying Factors That Retail WB02 Influence the Master- ROI data Manager Required ROI Storage Costs Retail Non- MM42 Seasonal Purchaser Strage Costs Indicator Service Costs Shelf Life, Retail Non- MM42 Expiration Date Seasonal (Food Only) Purchaser

Process Step External Business Business Transaction Expected Process Condition Role Code Results Reference Terms of Retail MK02 Payment Master Data Manager Investment Buying Run Future Price Retail Non- MM42 Changes Seasonal Purchaser Maintain Retail Non- MM42 Forecast Values Seasonal Purchaser Carry Out the Retail Non- MM42 Forecast Seasonal Purchaser Requirements Retail WLB1 Determination Replenish Procedure in ment Investment Planner Buying Alternative: Simulate an Investment Buying Run Future Price Retail Non- MM42 Changes Seasonal Purchaser Maintain Retail Non- MM42 Forecast Values Seasonal Purchaser Carry out the Retail Non- MM42 forecast Seasonal Purchaser Return on Retail Non- WLB6 Document Investment Seasonal creation being Purchaser started..Stand ard PO created. Make a note of the number 45000. Investment Retail Non- WLB2 Buying Analysis Seasonal Purchaser Goods Receipt Retail Non- MB01 in the Seasonal Distribution Purchaser Center Load Building

Process Step External Business Business Transaction Expected Process Condition Role Code Results Reference Check on-order Retail MD04 stock Replenish ment Planner Optional: Create Retail ME21N Purchase Non- Orders Seasonal Purchaser Automatic Load Retail WLB13 Building Replenish ment Planner Load Building Retail WLB4 Results List Replenish ment Planner Alternative: Retail WLB5 Manual Load Replenish Building ment Planner Goods Receipt Retail Non ME21N Capacity Check Seasonal Purchaser Purchase Order Monitoring Requirements Planning Workbench Display Open Retail Non- ME2L Purchase Seasonal Orders Purchaser Display Status Retail Non- ME23N Data for the Seasonal Purchase Order Purchaser Header Displaying the Purchase Order History Vendor Evaluation Initial SECATT The evaluation Maintenance of record was Vendor changed. Evaluation

Automatic Retail Non- ME63 Reevaluation Seasonal Purchaser

Process Step External Business Business Transaction Expected Process Condition Role Code Results Reference Maintaining the Retail Non- ME61 Vendor Seasonal Evaluation Purchaser Manually Analyses Relating to Vendor Evaluation Comparison of Retail Non- ME64 Evaluations Seasonal Purchaser Ranking Lists Retail Non- ME65 Seasonal Purchaser Executing an Retail Non- ME6B Evaluation of Seasonal the Purchaser Article/Merchan dise Category

7.2 Plan Workbench The planning workbench is a working environment for stock planners. It includes the online planning function and a connection to Internet services. The stock planner can use the Online Planning function to order merchandise from external vendors. Using the ordering days (order cycle) defined, you can have the system suggest which vendors to order from and display the purchase orders that have already been created for the vendor. You can then decide whether additional quantities or articles have to be ordered. The planning workbench provides you with a worklist, from which you can go directly to the application (such as the online planning application) at the click of the mouse. The worklist is easy to navigate through and can be displayed in a number of formats to suit you, as can the application. Online planning supports both automatic requirements planning and manual ordering transactions.

7.2.1 Checking the Stock Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Merchandise Logistics  Valuation  Inventory management  Environment  Stock Stock Overview Transaction code RWBE Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu PurchasingNon-Seasonal Purchase Management  Stock  Stock Overview

2. On the Stock Overview screen, make the following entries: Field name Description User action and values Comment Article PCS-04-ORB142(Fashion) PCS-04-ORB431(Hard Goods) PCS-04-ORB201(Food) Vendor PCS-V141(Fashion) PCS-V431(Hard Goods) PCS-V201(Food) Site VZ01 3. Choose Execute.

The stock should be 1000 pieces. If the stock is different, you can correct it as follows. Procedure If the stock is different, you can correct it as follows: 1. Access the transaction choosing one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Merchandise Logistics  Logistics (W10T) Execution  Inbound Process  Goods Receipt for Purchase Order, Order, Other Transactions  Enter Goods Receipt for Purchase Order Transaction code MIGO

Option 2: SAP NetWeaver Business Client (SAP NWBC) via business role Business role Retail Warehouse Manager (SAP_NBPR_WAREHOUSE_RT_S) Business role menu Warehouse Management  Receiving  Goods movements Other

2. On the initial screen, make the following entries. Field name Description User action and values Comment In the top left corner A01 Goods Receipt of the screen, the first field the second field R10 Other Movement Type 501 (Receipt w/o 502 (Receipt w/o purchase Order into purchase Order into warehouse) warehouse – reversal)

3. Choose Enter. 4. On the screen Goods Receipt Other screen, make the following entries and choose Enter. Field name Description User action and values Comment Article

Storage Location 1001

5. Choose Enter to confirm any warning message. 6. Choose Item OK. 7. Choose Post. 8. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction 7.2.2 Checking Consumption and Forecast Values Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries. Field name Description User action and values Comment Article PCS-04-ORB142(Fashion) PCS-04-ORB431(Hard Goods) PCS-04-ORB201(Food) Distr. center VZ01 View Logistics: Distribution Center Choose Enter. If necessary, ignore the message such as ‘XX differences at client level and XX differences at site level’. Choose Consumption values Total Consumption 1000 Entry per row. Please maintain the consumpti on for maximum 2 years in the past. 3. Choose Enter. © SAP SE Page 6 of 8 SAP Best Practices Demand-driven Procurement (721): BPD

4. Choose Back. 5. Choose Save. 6. Select the Logistics Distribution Center view. 7. Choose Execute Foecast. 8. Choose Enter. Then Choose Execute forecast twice. 9. Choose Adopt 10. Choose Save. 11. Select the Logistics Distribution Center view. 12. On the Logistics distribution center section, check the following entries. Field name Description User action and values Comment Forecast parameters W Period Ind. Last forecast Date possibly displayed 13. Choose RP/Forecast data. 14. Chose Back twice.

If you want to conduct the forecast for the same article again, you must first set the flag (X) for initialization by the system in the Logistic DC view, Button [Planning/Forecast data] (scroll down to bottom of screen). Initialization flag: The initialization flag is automatically set for the first forecast. It establishes that a model initialization will be conducted in the framework of the forecast and the parameters necessary for the forecast model, such as basic value, trend value etc. are calculated by the system. 7.2.3 Creating Purchase Order Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order Purchase Order Create VendOr Known Transaction code ME21N Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role (SAP_NBPR_NONSEASBUYER_RT_S) Retail Non-Seasonal Purchaser Business role menu Purchasing Non-Seasonal Purchase Management  Purchase Orders  Create Purchase Order 2. On the Create Purchase Order screen, make the following entries: Field name Description User action and values Comment Order type NB Standard PO Vendor PCS-V141(Fashion) PCS-V431(Hard Goods) PCS-V201(Food) Doc. date Today Go to “Org.data” tab Possibly: expand Header

Field name Description User action and values Comment Purch. 1000 Organization Purchasing group 109 Company Code 1000 Choose Enter. Possibly: expand ITEM OVERVIEW Article PCS-04-ORB142(Fashion) PCS-04-ORB431(Hard Goods) PCS-04-ORB201(Food) PO quantity for example,100 OUN PC Site VZ01 Storage Location 1001 3. Choose Enter. 4. Accept all messages, for example, Can delivery date be met? by choosing Enter. 5. Choose Save. 6. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction

7.2.4 Online Requirements Planning Use The stock planner in the distribution center calls up online planning and creates a worklist. You can use online planning to check existing purchase orders and, if necessary, add data. You can also use online planning to carry out planning even if purchase orders do not yet exist. The system can propose vendors, articles, and purchase order quantities, which the stock planner can then verify using other information. Possible results of online planning include:  You have changed items in an existing purchase order.  You have added items to an existing purchase order.  You have created new purchase orders. When the Workbench is started, stock planners can easily restrict their work to certain areas. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Planning Workbench  Applications Transaction code WWP1 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner(SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Disposition  Online Planning in the Planning WB 2. On the Planning Workbench screen, make the following entries: © SAP SE Page 6 of 8 SAP Best Practices Demand-driven Procurement (721): BPD

Field name Description User action and values Comment Site “Online VZ01 planning” tab Site cat. B Purch. Organization 1000 Purchasing Group 109 Horizon 6 Vendor PCS-V141(Fashion) PCS-V431(Hard Goods) PCS-V201(Food) Article PCS-04-ORB142(Fashion) PCS-04-ORB431(Hard Goods) PCS-04-ORB201(Food) Restriction Profile PCS1

A restriction profile for load building is assigned to the vendor. A restriction profile contains, for example, data on the minimum and maximum load capacities for the means of transport used (see Customizing Guide), which enables you to make the most of existing transport capacities 3. Choose Execute. 4. Expand the folder list till you see your created Purchase Orders.

You can see two of the created Purchase Orders, because the other ones are created in the past. If you want to display all Purchase Order you have to set the Purchase Order Date two days back in the Planning Workbench screen. 5. Double-click one of your Purchase Orders. 6. Position cursor on Article and choose the Generate Order quantity Proposal button. 7. Make an entry in the Target Range field. (for example, 40) 8. Choose Enter.

The traffic lights for the defined restriction profile should all be green. 9. Choose the Display consumption and forecast values button. 10. Close the dialog 11. Choose Save. 12. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction

The traffic light for the purchase Order in the subtree changes from red to yellow or green You can also display the stock/requirements list and (if available) the vendor conditions or RP list. 13. Double-click Purchase Order. 14. Position the cursor on Article and choose (NWBC: More…) Goto  Stock/Requirements List from the menu. 15. Choose Back.

16. Choose (NWBC: More…) Goto  RP List from the menu. 17. Choose Back. 18. Choose (NWBC: More…) Goto  Vendor Conditions from the menu. 19. Choose Save 20. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction 7.2.5 Order Cancellation Use Use this function to process purchase orders for which the delivery date falls in the past but which have not yet been delivered or have only been partially delivered. Purchase Orders that have only been partially delivered are critical for all customers because they can cause out-of- stock situations. Although all purchase orders that are still open have to be processed manually, the user can respond actively to a given situation with a view to finding a solution. It is important that you telephone those affected in the supply chain so that you can discuss whether and how purchase orders are to be modified. Once you have contacted the relevant vendor, you can make the following changes as required to the purchase Orders:

 Change the inward delivery completed indicator.  Change the deletion indicator.  Change the delivery date.

These changes should only be made by the stock planner and/or buyer. For work process reasons, the requirements planning workbench should always be used to access the application. This enables the stock planner or buyer to integrate requirements planning in their day-to-day activities. In this backorder view, stock planners can only see certain purchase orders in their area and can decide whether to delete these purchase orders or assign them a date in the future. The latter option obviously affects additional MRP or forecast runs. The 'order cancellation' function is integrated in the Planning Workbench. You can call up the 'order cancellation' function using transaction WWP3. The system only displays purchase Orders with delivery dates in the past. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Planning WOrkbench  Order Cancellation Transaction code WWP3 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role (SAP_NBPR_REPLENISHPLAN_RT_S) Retail Replenishment Planner Business role menu Replenishment Planning  Disposition  Order Cancellation in Planning WB 2. On the Planning WOrkbench screen, make the following entries: Field name Description User action and values Comment Site “Order VZ01 cancellation” tab

Field name Description User action and values Comment Site cat. B Purch. Organization 1000 Purchasing Group 109 Vendor PCS-V141(Fashion) PCS-V431(Hard Goods) PCS-V201(Food) 3. Choose Execute. For individual processing: 4. Double-click Purchase Order.(See 7.2.3) Or for multiple processing: 5. Press down and hold the Ctrl key, and select some purchase Order numbers. 6. Choose Execute Changes.

Now, you can change:  Change the inward delivery completed indicator.  Change the deletion indicator.  Change the delivery date. 7.2.5.1 Setting the Inward Delivery Completed Indicator Use You can set an inward delivery completed indicator for these purchase orders or assign them a date in the future. Procedure 1. Set Delivery Completed Indicator or select row SET and choose Inward DeliveryCompleted Indicator 2. Choose Execute changes. 3. Reset the delivery completed indicator. 4. Select line again. Choose Reset Delivery Completed Indicator. 5. Choose Execute Changes. 7.2.5.2 Setting the Delivery Date Use You can adjust the delivery date for this purchase order. Procedure 1. Cursor on row of this purchase Order. 2. Update the date in New Delivery Date field. 3. Choose Menu (NWBC: More…) Edit-Set Delivery Date, updated the delivery date. 4. Choose Menu (NWBC: More…) ObjectExecute Changes. The system saves the information for this purchase Order. 5. Choose Back. 7.2.5.3 Setting the Deletion Indicator Use © SAP SE Page 6 of 8 SAP Best Practices Demand-driven Procurement (721): BPD

In this example, you want to delete just one of the purchase Orders listed. Procedure 1. Double-click PO number. 2. Select line again and choose Set Deletion Indicator. 3. Choose Execute changes.

Or you go back w/o changes by choosing REVERT TO SAVED STATUS 4. Choose Back. 5. Nodes with the relevant day of the week for the purchase orders (select the folder icon) 6. Choose Refresh.(The system now displays the current status of the purchase Orders)

Meaning of the traffic lights: * GREEN: ALL items BLOCKED, DELETED, Or DELIVERED * YELLOW refers to anything that is not green, with a FOLLOW-ON DOCUMENT Or with (new) DELIVERED items. * As befOre, RED indicates all other statuses.

7.2.6 Order Release Use A release procedure can be carried out for all purchasing documents and purchase requisitions. When a document is created, a release strategy is automatically assigned due to various conditions (the value, for example). It defines which employees, departments, or other Organizational units have to release the document in which order. Once all those involved have released the document, the document can be processed further. This procedure aims to allow signatures to be provided electronically rather than manually while retaining the dual control principle. The employee responsible processes the purchasing document in the system and flags it as seen by responsible individual, in process, Or per program. Purchase Orders created by purchasing group 109 have to be released (see Customizing Guide), that means, for example automatically generated purchase Orders are blocked and has to be released before it can be sent to the vendor. Purchasing documents are always released at header level. You can also use the SAP Business Workflow. A work item in their inbox informs agents that a document has to be released. The document is released when the work item is processed. Prerequisites For Order release you need purchase orders which were generated from the purchasing group 109. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order Purchase Order Create Vendor Known Transaction code ME21N Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S)

Business role menu Purchasing Non-Seasonal Purchase Management  Purchase Orders  Create Purchase Order 2. On the Create Purchase Order screen, make the following entries: Field name Description User action and values Comment Order type NB Standard PO Vendor PCS-V141(Fashion) PCS-V431(Hard Goods) PCS-V201(Food) Doc. date Today Go to “Org.data” tab Possibly: expand Header Purch. 1000 Organization Purchasing group 109 Company Code 1000 Choose Enter. Possibly: expand ITEM OVERVIEW Article PCS-01-CON141(Fashion) PCS-01-CON431(Hard Goods) PCS-01-CON201(Food) PO Quantity for example,100 For Generic material, enter its variants quantity OUN PC Site VZ01 Storage Location 1001 3. Choose Enter. 4. Accept all messages, for example, Can delivery date be met? by choosing Enter. 5. Choose Save. 6. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Purchase Order  Release Transaction code ME28 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser(SAP_NBPR_NONSEASBUYER_RT_S) Business role menu PurchasingNon-Seasonal Purchase Management  Purchase Orders  Release Purchase Order 7. On the Release (Approve) Purchasing Documents screen, make the following entries: Field name Description User action and values Comment Release code 01

Set release Set indicator Release prerequisite Set indicator fulfilled Purchasing group 109 8. Choose Execute. (Release all existing purchase orders.) 9. Position your cursor on the purchase order and choose Release. 10. Choose Save. 11. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction Result Release effected with release code 01. The row becomes green. The release indicator changes from 1 to 2.

7.2.7 Goods Receipt in the Distribution Center Use In the following section, the goods receipt is posted with reference to the purchase order. Post all the purchase orders that have just been released. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Merchandise Logistics  Goods Receipt  Goods Receipt for Purchase Order Transaction code MB01 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu PurchasingNon-Seasonal Purchase Management  Purchase Orders  Post Goods Receipt for PO 2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries: Field name Description User action and values Comment Movement Type 101 Purchase Order Purchase Order of 7.2.6 Site VZ01 Storage Location 1001 3. Choose Enter. 4. Choose Save. 5. If necessary, accept the message: Enter delivery note for evaluated receipt settlement, by choosing Enter. 6. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 7.3 Order Optimizing In Order Optimizing, the system combines the quantities in open purchase requisitions and purchase orders and rounds off the total quantity. This enables you to make best possible use of the transport capacity available.

In a retail system, the following activities occur in sequence during the night: 1. Forecast 2. MRP run to determine net requirements 3. Investment buying (in each case, the system uses the larger of the quantities calculated in steps 2 and 3) 4. Automatic load building with quantity optimizing 5. Conversion of purchase requirements to purchase orders with quantity optimizing You then evaluate the results of automatic load building using a results list and if necessary build loads manually. Order optimizing comprises the following functions: 1. Quantity optimizing 2. Investment buying 3. Load building Order Optimizing aims to achieve the most economical results possible. For each article, the system defines (in accordance with certain rules) an optimized purchase order quantity by, for example, rounding up to full pack sizes or grouping together purchase orders to create full loads. Quantity optimizing handles a specific quantity according to rules defined in Customizing. You can round up or down. The system can also take different units of measure of an article into account. In Quantity optimizing, certain rounding rules and profiles in accOrdance with which the system rounds up or down to full pack sizes to make the best possible use of space can be taken into account when a purchase order is created. For a more detailed analysis (in particular, the purchase order value analysis), you can use the SAP Business Warehouse (BW). You can use the BW to analyze your company's purchasing activities and procurement process. Investment buying is a method used to determine requirements resulting from future increases in the purchase price and that are to be covered by external procurement. The purpose of investment buying is to purchase the right articles in reasonable quantities in good time and at the lowest possible prices. Investment buying is not a purely consumption-based procedure because it includes future increases in the purchase price in the requirements determination and establishes whether it is worth ordering a particular purchase Order quantity at the latest possible procurement date. To determine the purchase Order quantity, the current stocks, forecast requirements, and storage costs are weighed up against each other in an ROI (return on investment) calculation. This establishes whether it is worth procuring articles before their actual requirement date shortly before their prices change. Investment buying recognizes future changes to the purchase conditions (purchase prices, markdowns, and so on) and proposes that goods are procured, even if they are not required. The system compares storage and service costs with the price advantages. If it makes economic sense, the system proposes you procure goods even if no demand exists for them. The deciding factor is the above-mentioned ROI. The required minimum ROI can be defined at site level. If the actual ROI is greater than the required ROI, the system proposes procuring articles beyond their demand. The main aim of investment buying is to procure the goods as late as possible and at the most favorable prices. The Load building function is subdivided into automatic load building and manual load building. In Load building, several purchasing documents (purchase requisitions, purchase orders) are grouped together to create full loads (wherever possible). This aims to achieve the following:  Minimum transport costs due to the optimized use of transport (heavy goods vehicles, for example).  Goods can be purchased at more favorable prices due to scaled conditions (related to a value scale at header level).  Vendor-specific constraints can be observed (minimum purchase order value, for example).

In Load building, purchase requisitions (or purchase orders) that derive from requirements planning and investment buying are processed in the same way as standard purchase requisitions and purchase orders from promotions. The following scope items are possible with load building:  One vendor uses one heavy goods vehicle to deliver goods from different purchase orders to one site.  Several vendors use one heavy good to deliver goods to one site.  One vendor uses one heavy goods vehicle to deliver goods to several sites.  Several vendors use one heavy good to deliver goods to several sites. Manual load building is possible in all four scope items. Unlike manual load building, automatic load building can only be carried out in the first scope item (one vendor and one site). Load building (manual and automatic) can only be carried out for vendors who have been assigned a restriction profile. 7.3.1 Quantity Optimizing When you enter purchase orders, sales orders and deliveries, you can have the system optimize the quantities to make the most out of agreements you have with customers or vendors granting you better conditions when you order complete logistics units (such as whole pallets). Quantities are optimized in the following areas (also note the constraints):

 Purchase Orders  Allocation tables  Sales Orders  Deliveries  Store Orders  Consumption-based planning

Types of Quantity Optimizing The quantity optimizing function rounds off quantities you enter accOrding to rules that are predefined in Customizing. You can round up or down. The system can also take different units of measure of an article into account. In a rounding profile in Customizing, you can define the rules according to which values are to be rounded. If a rounding profile is entered in purchasing or sales master data, the system rounds off quantities when documents are processed.

7.3.1.1 Article Master Data Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu PurchasingNon-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries. Field name Description User action and values Comment

Article PCS-04- select one article. For ORB142(Fashion) Fashion: in this case PCS-04-ORB431(Hard you use a single article Goods) and NOT variants PCS-04-ORB201(Food) Purchasing Org. 1000 Vendor PCS-V141(Fashion) PCS-V431(Hard Goods) PCS-V201(Food) Distribution center VZ01 View Basic data/Purchasing Choose Enter Display the units of measure and subordinate units of measure (pieces, cardboard boxes, palettes). Do not make any changes and write down the different unit of measures Var. Order Unit ”Basic data” 1 View Rnding Profile “Purchasing” PC03 View 3. Choose Save. 4. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction 7.3.1.2 Creating Purchase Order Use This example shows you how rounding is carried out for a purchase order using the rounding profile. A dynamic rounding profile is used to optimize rounding (see the Customizing Guide). If you have a large number of articles, it is best not to calculate requirements too precisely (for example, 288 pieces); instead, use a higher logistics unit (3 palettes, for example). In this way, the purchase order quantity can be rounded up or down to the next unit due to automatic rounding in the purchase order, Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order Purchase Order Create Vendor Known Transaction code ME21N Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing Non-Seasonal Purchase Management  Purchase © SAP SE Page 6 of 8 SAP Best Practices Demand-driven Procurement (721): BPD

Orders  Create Purchase Order 2. On the Create Purchase Order screen, make the following entries: Field name Description User action and values Comment Order type NB Standard PO Vendor PCS-V141(Fashion) PCS-V431(Hard Goods) PCS-V201(Food) Doc. date Today Go to “Org.data” tab Possibly: expand Header Purch. 1000 Organization Purchasing group 101 Company Code 1000 Choose Enter. Possibly: expand ITEM OVERVIEW Article PCS-04-ORB142(Fashion) PCS-04-ORB431 (Hard Goods) PCS-04-ORB201(Food) PO quantity for example, 102 Please choose an Order quantity, which will use the rounding rule. OUN PC Site VZ01 StOrage Location 1001 3. Choose Enter. 4. The message: Order quantity violates rounding rules, appears. 5. Choose Enter. (PO quantity: for example, 10 cartons, Or pallets) 6. Accept all messages, for example, Can delivery date be met? by choosing Enter. 7. Choose Save. 8. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 7.3.1.3 Non-Application-Specific Simulation of Rounding Profiles Procedure 1. Access the transaction using the following navigation: SAP ECC menu Tools  Accelerated SAP  IMG  Edit Project

Transaction code SPRO 2. Choose Display SAP reference IMG. 3. Access the transaction using the following navigation:

IMG menu Materials Management  Purchasing  Order Optimizing  Quantity Optimizing and Allowed Logistics Units of Measure  Maintain Rounding Profile 4. In the dialog box, enter PC03 in the Rounding profile field. 5. Choose Display. 6. On the Display Dynamic Rounding Profile screen, choose Simulation. 7. Make the following entries: Field name Description User action and values Comment Article PCS-04- ORB142(Fashion) PCS-04-ORB431(Hard Goods) PCS-04-ORB201(Food) 8. Choose ExecuteInterval SIMU. 9. Choose Cancel twice. 10. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction Result A new window appears containing the results of the simulation.

7.3.2 Investment Buying Investment buying helps you determine future requirements resulting from purchase price increases that are to be covered by external procurement. The purpose of investment buying is to purchase the right articles in reasonable quantities in good time and at the lowest possible prices. You can use the 'Investment buying requirements determination' function to determine condition changes that are relevant to investment buying (increases in net prices based on average purchase order quantities). The system uses this data and the results of a return on investment analysis to calculate when and how many articles it is worth procuring before the actual requirements date. To determine the best possible quantity to buy, the system compares the current stock on-hand, the forecast requirements and the cost of ordering, transporting and storing the goods in a calculation based on return on investment (ROI). The system works out whether it is worthwhile procuring articles before they are actually required, and, if so, when and how many. If the return- on-investment is greater than the calculated risk set in Customizing, SAP Retail automatically includes the quantity in the purchase order. The purchase price of the article from your vendor increases in the near future. For this reason, you want to make the necessary settings to start an investment buying run that is to provide you with an order proposal. This Order proposal provides information on whether it is worth covering more than the actual demand for this article. Investment buying can generate purchase requisitions or purchase orders as follow-on documents.

7.3.2.1 Factors that Influence the ROI Critical factors when the actual ROI is being calculated include:  Price changes (article / vendor)  Storage costs (article / site)  Service costs, Ordering costs, warehousing costs (article / site)  Forecast values (article / site)  Shelf life, total shelf life, expiration date (article)

 Terms of payment (vendor) 7.3.2.1.1 Required ROI Use To use the investment buying function, you first have to assign the required ROI to your distribution center. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing Master data  Site Data  Site  Change Transaction code WB02 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role SAP_NBPR_MASTERDATA_RT_S (Retail Masterdata Manager) Business role menu Master Data Site  Sites  Change site 2. On the Site Change: Initial Screen, make the following entries: Field name Description User action and values Comment Site VZ01 button Choose Site, general ROI required “Purchasing Choose a value between Distribution” tab 20 and 30. 3. Choose Save. 4. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 7.3.2.1.2 Storage Costs Use The storage costs are maintained for each volume unit (m³) and week. Since the system calculates the storage costs in m³, you have to enter the article volume so that the system knows how large the required volume will be for a particular number of articles. You can display / change the article volume as follows: Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role (SAP_NBPR_NONSEASBUYER_RT_S) Retail Non-Seasonal Purchaser Business role menu Purchasing  Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries. © SAP SE Page 6 of 8 SAP Best Practices Demand-driven Procurement (721): BPD

Field name Description User action and values Comment Article PCS-01- select one article. For INV141(Fashion) Fashion: use variants PCS-01-INV421(Hard Goods) PCS-01-INV331(Food) Purchasing Org. 1000 Vendor PCS-V141(Fashion) PCS-V421(Hard Goods) PCS-V331(Food) Distribution center VZ01 View Basic data/Purchasing Choose Enter Display the units of measure and subordinate units of measure (pieces, cardboard boxes, palettes). Do not make any changes RoundingProfile “Purchasing” PC03 tab 3. Choose Save. 7.3.2.1.3 Storage Costs Indicator Use Assign the storage costs indicator to your article. Procedure 1. On the Change Article screen, choose Logistics distribution center view. 2. Choose RP/Forecast Data. 3. On the sub-screen: Lot-size data choose 2 for the Storage costs indicator field. 7.3.2.1.4 Service Costs Use The system compares storage and service costs with the price advantages. For this reason, you also have to maintain the storage and service costs. Ordering costs are due every time a purchase is made (irrespective of the lot size). Procedure 1. On the sub-screen: Lot-size data, enter 10 in the Ordering costs field. 2. Choose Back. 3. Choose Save. 7.3.2.1.5 Shelf Life, Expiration Date (Food Only) Procedure 1. Access the transaction using one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries. Field name Description User action and values Comment Article PCS-01-INV331(Food) Purchasing Org. 1000 Vendor PCS-V331(Food) Distribution center VZ01 View Basic data Choose Enter Rem. Shelf life 100 Period indicator D 3. Choose Save. 7.3.2.1.6 Terms of Payment Use Call up the terms of payment for your vendor. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Vendor Data  Edit Vendors Vendor  Change  Purchasing (Immed.) Transaction code MK02 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role SAP_NBPR_MASTERDATA_RT_S (Retail Master Data Manager) Business role menu Master Data  Business Partner  Vendors  Change vendor (Purchasing) 2. On the Change Vendor: Initial Screen, make the following entries: Field name Description User action and values Comment Vendor PCS-V141(Fashion) PCS-V421(Hard Goods) PCS-V331(Food) Purchasing Org. 1000

Purchasing data Set flag Choose Enter. Terms of paymnt 0002 Only enter, if one of the other payment term is entered here. 3. Choose Save 4. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 7.3.2.2 Investment Buying Run

7.3.2.2.1 Future Price Changes Use Since the investment buying function identifies future purchasing condition changes (purchase prices, discounts, and so on), you have to define a price change for the near future. You carry this out in the article master. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role (SAP_NBPR_NONSEASBUYER_RT_S) Retail Non-Seasonal Purchaser Business role menu Purchasing  Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries. Field name Description User action and values Comment Article PCS-01- For Fashion: INV141(Fashion) maintaining the price PCS-01-INV421(Hard via the info record you Goods) change the price on header level ond NOT PCS-01-INV331(Food) for the variants, PCS- 01-INV141001 – 008. Accept you need a specific price for a variant Purchasing Org. 1000 Vendor PCS-V141(Fashion) PCS-V421(Hard Goods) PCS-V331(Food) Distribution center VZ01 View Purchasing Choose Enter

Field name Description User action and values Comment Check the actual net price under conditions and note this price (for example, 30 EUR) Choose Conditions. You will get a add. Screen “Validity Periods:Conditions” Choose New validity period Validity periods Note the MRP date so Valid from: The day after your Order that goods can be date purchased before prices change (day of Valid to: 31.12.9999. Order: Monday) Change Net price to EUR 35. 3. Choose Save.

Now, you have two validity periods. Until next order date for example, 30 EUR; From the day after the next order date until 31.12.9999 with for example, 35 EUR

7.3.2.2.2 Maintaining Forecast Values Use A forecast can only be carried out if past consumption values exist for the article. The consumption values are updated by the system in the article master record when the article is removed from the warehouse and can be checked and, if necessary, changed before the forecast is carried out. You can also enter past consumption values manually (as described here) as base values for the initial forecast. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries. Field name Description User action and values Comment Article PCS-01-INV141(Fashion) For Fashion article, PCS-01-INV421(Hard please for Goods) demonstration, enter for all variants

PCS-01-INV331(Food) forecast values (PCS-01- INV141001 – 008). Distribution center VZ01 View Logistics Distribution Center Choose Enter Choose Consumption values.

Corrected Value 100 Per row 3. Choose Enter. 4. Choose Back. 5. Choose Save.

Before you start, you have to check whether purchase orders have already been generated for this article. If purchase orders or a higher stock is present, you have to execute a good receipt and do a stock correction, because otherwise the demo scope item isn’t feasible. The next steps describe how it can be checked, whether purchase orders are present and, if necessary a goods receipt and correction of stock can be made. 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements Planning  Requirements planning  Stock/requirements list Transaction code MD04 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner(SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Planning  Display Stock/Requirements Situation 2. On the Stock/Requirements List: Initial Screen, make the following entries with Enter: Field name Description User action and values Comment Article “Individual PCS-01- FOr Fashion use Access” tab INV141(Fashion) variants, PCS-01- PCS-01-INV421(Hard INV141001 – 008 Goods) PCS-01-INV331(Food) Site VZ01

If a number from the purchase Order number range (45.....) is displayed here, carry out a goods receipt for this purchase Order (transaction: MB01) and check the article stock (transaction: RWBE). Reduce it to 50 pieces. Check the Initial Stock 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Merchandise Logistics  Valuation 

InventOry Management  Environment  Stock Stock Overview Transaction code RWBE Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  InventOry Lookup (Stock Overview) 2. On the Stock Overview screen, make the following entries Field name Description User action and values Comment Article PCS-01-INV141(Fashion) FOr Fashion use PCS-01-INV421(Hard variants, Goods) PCS-01- INV141001 PCS-01-INV331(Food) to PCS-01- INV141008 Site VZ01 3. Choose Execute.

The stock should be 50 pieces. For each variant, it should be 50 PC. 4. Choose Exit. Procedure If the stock is different, you can correct it as follows: 1. Access the transaction choosing one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Merchandise Logistics  Logistics (W10T) Execution  Inbound Process  Goods Receipt for Purchase Order, Order, Other Transactions  Enter Goods Receipt for Purchase Order Transaction code MIGO

2. On the initial screen, make the following entries. Field name Description User action and values Comment In the top left corner A07 Goods Issue of the screen, the first field the second field R10 Other Movement Type 201 (GI for cost center)

3. Choose Enter.

4. On the screen Goods Receipt Other screen, make the following entries and choose Enter. Field name Description User action and values Comment Article PCS-01- For Fashion use INV141(Fashion) variants, PCS-01- PCS-01-INV421(Hard INV141001 – 008 Goods) PCS-01-INV331(Food) Quantity Quantity tab page Site VZ01 Where tab page Storage Location 1001 Cost Center 1301 Account Assignment tab page

5. Choose Enter to confirm any warning message. 6. Choose Item OK. 7. Choose Post. 8. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 7.3.2.2.3 Carrying out the Forecast Use Now carry out the forecast. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries. Field name Description User action and values Comment Article PCS-01-INV141(Fashion) For Fashion use PCS-01-INV421(Hard variants, PCS-01- Goods) INV141001 to PCS-01-INV331(Food) PCS-01- INV141008, please carry out the forecast for all variants. Distribution center VZ01 View Logistics Distribution Center

Choose Enter Choose Execute Forecast In Forecast Parameter section 3. Accept the message: Leave the radio-button setting as it is, by choosing Enter. 4. Choose Execute Forecast twice. 5. Choose Adopt... 6. Choose Save. 7. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction.

If you want to carry out the forecast for the same article again, you first have to set the indicator (X) in the Logistics: Distribution Center view ([MRP/forecast data] button) for field initialization so that the system can initialize the data (scroll right to the bottom of the screen). The (X) indicator is set automatically for an initial forecast. It specifies that model initialization is carried out during the forecast and that the system calculates the parameters required for a forecast model, such as the basic value, trend value, and so on 7.3.2.2.4 Requirements Determination Procedure in Investment Buying Use The system uses the requirements determination function to find out which articles can be considered for investment buying during a particular period. It only makes sense to run the report online if you narrow down the data to be processed to an absolute minimum. You would do this, for example, to determine requirements for an individual article. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order  Order Optimizing  Investment buying  Determining Requirements for Investment Buying Transaction code WLB1 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner(SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Investment Buy  Investment Buying Requirement Determination 2. On the Determining Requirements for Investment Buying screen, make the following entries: Field name Description User action and values Comment Vendor “Invest Buying PCS-V141(Fashion) Data” tab PCS-V421(Hard Goods) PCS-V331(Food) Article PCS-01-INV141(Fashion) PCS-01-INV421(Hard Goods) PCS-01-INV331(Food)

Purchasing Org. 1000 Site VZ01 Site cat. For req. “Controls” tab B determin Terms of payment 1 for ROI

Create POs ‘X’ Leave any other instead of pur.reqs settings as they are.

Include generic ‘X’ Only relevant for article variants the fashion generic article 3. Choose Execute.

In the "Investment Buying Processing Log" screen, you can see the parameters and the result of requirements determination in investment buying: current price, future price, available stock, open purchase Order quantity, forecast quantity per week, ROI, and the number of the follow-on document (purchase requisition or purchase Order). 4. Make a note of the purchase Order number: 450000 XXXX You can call up the follow-on document as follows: 5. Select item and choose Display documents. 6. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction.

If no worklist had been generated, run the Report Program RMEBEIN4, and repeat this step. 7.3.2.3 Alternative: Simulate an Investment Buying Run

7.3.2.3.1 Future Price Changes Use Since the investment buying function identifies future purchasing condition changes (purchase prices, discounts, and so on), you have to define a price change for the near future. You carry this out in the article master. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries. © SAP SE Page 6 of 8 SAP Best Practices Demand-driven Procurement (721): BPD

Field name Description User action and values Comment Article PCS-01- For Fashion: INV141(Fashion) maintaining the price PCS-01-INV421(Hard via the info recOrd Goods) you change the price on header level ond PCS-01-INV331(Food) NOT fOr the variants, PCS-01-INV141001 – 008. Accept you need a specific price fOr a variant Purchasing Org. 1000 VendOr PCS-V141(Fashion) PCS-V421(Hard Goods) PCS-V331(Food) Distribution center VZ01 View Purchasing Choose Enter Choose Conditions. You will get a add. Screen “Validity periods:Conditions” Choose New validity period Check actual net price and note this price (for example, 15 EUR) Validity periods Note the MRP date Valid from: The day after your Order so that goods can be date purchased befOre prices change (day of Valid to: Order: Monday) 31.12.9999.

Amount Change Net price to EUR 20. 3. Choose Save.

Now, you need to have two validity periods. o Until next order date with e. g. 15 EUR o from day after next order date until 31.12.9999 with for example, 20 EUR 4. If you do not have this, press conditions and New Validity Period, and fill in the missing period. 5. You should call up the purchase prices for your article for a particular period. By choosing the following menu path, you can check whether the purchase price of one of your articles increases. 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 © SAP SE Page 6 of 8 SAP Best Practices Demand-driven Procurement (721): BPD

Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries. Field name Description User action and values Comment Article PCS-01- For Fashion use INV141(Fashion) variants, PCS-01- PCS-01-INV421(Hard INV141001 – 008 Goods) PCS-01-INV331(Food) Purchasing Org. 1000 Vendor PCS-V141(Fashion) PCS-V421(Hard Goods) PCS-V331(Food) Distribution center VZ01 View Purchasing Choose Enter Choose Conditions. 3. Double-click any validity period and choose Validity Period. 4. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 7.3.2.3.2 Maintaining Forecast Values Use A forecast can only be carried out if past consumption values exist for the article. The consumption values are updated by the system in the article master record when the article is removed from the warehouse and can be checked and, if necessary, changed before the forecast is carried out. You can also enter past consumption values manually (as described here) as base values for the initial forecast. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries.

Field name Description User action and values Comment Article PCS-01- For Fashion use INV141(Fashion) variants, PCS-01- PCS-01-INV421(Hard INV141001 – 008 Goods) PCS-01-INV331(Food) Distribution center VZ01 View Logistics Distribution Center Choose Enter Choose Consumption values. Corrected Value 100 Per row 3. Choose Enter. 4. Choose Back. 5. Choose Save.

Before you start, you have to check whether purchase orders have already been generated for this article. 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements planning  Stock/requirements list Transaction code MD04 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner(SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Planning  Display Stock/Requirements Situation 2. On the Stock/Requirements List: Initial Screen, make the following entries with Enter: Field name Description User action and values Comment Article “Individual PCS-01- For Fashion use Access” tab INV141(Fashion) variants, PCS-01- PCS-01-INV421(Hard INV141001 – 008 Goods) PCS-01-INV331(Food) Site VZ01

If a number from the purchase order number range (45.....) is displayed here, carry out a goods receipt for this purchase order (transaction: MB01) and check the article stock (transaction: RWBE). Reduce it to 50 pieces. Check the Initial Stock 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Logistics  Retailing  Merchandise Logistics  Valuation  Inventory management  Environment  Stock Stock Overview Transaction code RWBE Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  InventOry Lookup (Stock Overview) 2. On the Stock Overview screen, make the following entries: Field name Description User action and values Comment Article PCS-01-INV141(Fashion) FOr Fashion PCS-01-INV421(Hard Goods) use variants, PCS-01- PCS-01-INV331(Food) INV141001 – 008 Site VZ01 3. Choose Execute.

The stock should be 50 pieces. For each variant, 50 PC. 4. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. Procedure If the stock is different, you can cOrrect it as follows: 1. Access the transaction choosing one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Merchandise Logistics  Logistics (W10T) Execution  Inbound Process  Goods Receipt for Purchase Order, Order, Other Transactions  Enter Goods Receipt for Purchase Order Transaction code MIGO

2. On the initial screen, make the following entries. Field name Description User action and values Comment In the top left A01 Goods Receipt cOrner of the screen, the first field the second field R10 Other Movement Type 501 (Receipt w/o 502 Receipt w/o purchase Order into purchase Order into warehouse) warehouse – reversal

4. On the screen Goods Receipt Other screen, make the following entries and choose Enter. Field name Description User action and values Comment Article PCS-01- For Fashion use INV141(Fashion) variants, PCS-01-INV421(Hard PCS-01-INV141001 Goods) to PCS-01-INV141008 PCS-01-INV331(Food) Quantity Quantity tab page Site VZ01 Where tab page StOrage Location 1001

5. Choose Enter to confirm any warning message. 6. Choose Item OK. 7. Choose Post. 8. Enter proper date for field Manuf. Date/BBD 9. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 7.3.2.3.3 Carrying out the Forecast Use 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Article Data  Article  Change Transaction code MM42 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Item Management  Change Article 2. On the Change Article screen, make the following entries. Field name Description User action and values Comment Article PCS-01-INV141(Fashion) For Fashion use PCS-01-INV421(Hard variants, Goods) PCS-01-INV141001 PCS-01-INV331(Food) to PCS-01-INV141008 Distribution center VZ01 View Logistics Distribution Center Choose Enter Choose Execute Forecast 3. Accept the message: Leave the radio-button setting as it is, by choosing Enter. 4. Choose Execute forecast twice. 5. Choose Adopt. 6. Choose Save.

If you want to carry out the forecast for the same article again, you first have to set the indicator (X) in Initialization field in Logistics: Distribution Center view ([MRP/forecast data] button) so that the system can initialize the data (scroll right to the bottom of the screen). The initialization indicator is set automatically for an initial fOrecast. It specifies that model initialization is carried out during the forecast and that the system calculates the parameters required for a forecast model, such as the basic value, trend value, and so on

7.3.2.3.4 Return on Investment Use Before you actually start investment buying, SAP Retail allows you to simulate an ROI-based Order proposal for the actual purchase price change. In the initial screen, you can enter the actual price and simulate a price increase by entering a higher future price. You can also define the validity period for this price increase. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchasing Order Order Optimizing  Investment Buying  Investment Buying Simulation Transaction code WLB6 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Investment Buy  Investment Buying Simulation 2. On the Investment Buying Simulation screen, make the following entries: Field name Description User action and values Comment Vendor PCS-V141(Fashion) PCS-V421(Hard Goods) PCS-V331(Food) Purchasing Org. 1000 Article PCS-01-INV141(Fashion) FOr Fashion use PCS-01-INV421(Hard variants, Goods) PCS-01-INV141001 PCS-01-INV331(Food) to PCS-01-INV141008 Distribution center VZ01 Current price Future price Future price increase Last day before Date day of order is daily price change

Future price end Date for example, end of date year 3. Choose Execute.

The system generates an ROI-based order proposal for purchase price changes. It also proposes the recommended coverage period, the calculated ROI, and the ROI requirements quantity. 4. Choose Generate Purchase Order.

On the basis of the parameters defined in the system, an order proposal has been generated that you can convert directly to a purchase order 5. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. Result Document creation being started..Standard PO created. Make a note of the number 45000.

7.3.2.3.5 Investment Buying Analysis Use To carry out an investment buying analysis, choose the following menu path Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order  Order Optimizing  Investment buying  Investment Buying Analysis Transaction code WLB2 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Investment Buy  Investment buying analysis 2. On the Investment buying analysis screen, make the following entries: Field name Description User action and values Comment VendOr PCS-V141(Fashion) PCS-V421(Hard Goods) PCS-V331(Food) Site VZ01 Article PCS-01-INV141(Fashion) FOr Fashion use PCS-01-INV421(Hard variants, Goods) PCS-01-INV141001 PCS-01-INV331(Food) to PCS-01-INV141008

Display all log ‘X’ entries, also for 3. Choose Execute. 4. Choose one record and choose Display document. 5. Choose Back. 6. Choose Stock overview. 7. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 7.3.2.4 Goods Receipt in the Distribution Center Use In the following section, the goods receipt is posted with reference to the purchase Order. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Merchandise Logistics  Goods Receipt  Goods Receipt for Purchase Order Transaction code MB01 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Purchase Orders  Post Goods Receipt for PO 2. On the Goods Receipt fOr Purchase Order: Initial Screen, make the following entries: Field name Description User action and values Comment Movement Type 101 Purchase Order Purchase Order of 7.3.2.2.4/ 7.3.2.3.4 Site VZ01 Storage Location 1001 3. Choose Enter. 4. Choose Save. If necessary, insert best-before date and accept all messages with Enter. 5. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 7.3.3 Load Building Load building is used to:

1. Minimize transport costs by making best possible use of the means of transport (for example, ship, rail freight container, truck).

 Reduce stock on-hand as much as possible by ordering as late as possible.

 Achieve more favorable purchase price conditions by ordering whole truck loads, for example.

To help you do this, SAP Retail attempts to optimize quantities for procurement and converts existing purchase requisitions to purchase orders, if necessary generating new purchase Orders (for example, if the range of coverage is increased). Several purchase orders are combined in a load under the one collective number. In making its calculations, the load-building function does not take any scales, free-goods discounts or any quantities and values agreed in contracts into account. If, for example, a contract has been agreed for 50 cartons with a value of EUR 10,000, the terms of the contract would not be complied with if the range-of-coverage calculation made in load building resulted in higher quantities.

7.3.3.1 Check on Order Stock Use Load building is useful when multiple purchase orders are available in the system. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Requirements planning  Stock/requirements list Transaction code MD04 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner(SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Planning  Display Stock/Requirements Situation 2. On the Stock/Requirements List: Initial Screen, make the following entries with Enter: Field name Description User action and values Comment Article “Individual PCS-04- Access” tab ORB142(Fashion) PCS-04-ORB431(Hard Goods) PCS-04-ORB201(Food) Site VZ01

If here for at least two number from the number range of the purchase orders (45.....) are displayed, you can then continue with chapter Error: Reference source not found fortfahren. If no or only one purchase order (45….) is displayed, you have to create first purchase orders as described in chapter Error: Reference source not found

7.3.3.2 Optional: Creating Purchase Orders Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order  Purchase Order  Create  Vendor known Transaction Code ME21N

Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Purchase Orders  Create Purchase Order 2. On the Create Purchase Order screen, make the following entries: Field name Description User action and values Comment Order type NB Standard PO Vendor PCS-V141(Fashion) PCS-V431 (Hardgoods) PCS-V201 (Food) Doc.date 3. Choose Expand Header and then choose the Org.data tab. 4. On the Org.data tab, make the following entries: Field name Description User action and values Comment Purchasing Org. 1000 Purch. Group 101 Company Code 1000 5. In the Create Purchase Order screen area, make the following entries: Field name Description User action and values Comment Article PCS-04-ORB142 (Fashion) PCS-04-ORB431 (Hardgoods) PCS-04-ORB201 (Food) PO Quantity 100 Site VZ01 Storage Loc. 1001 6. Choose Enter. 7. Choose Save and ignore the messages.

7.3.3.3 Automatic Load Building Use To add purchase Orders (and purchase requisitions) to loads automatically, which fulfill the criteria of a particular restriction profile, proceed as follows. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order  Order Optimizing  Load Building  Automatic Load

Building

Transaction code WLB13 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Order Optimizing  Automatic Load Build 2. On the Automatic Load Building screen, make the following entries. Field name Description User action and values Comment Vendor “Load PCS-V141(Fashion) building PCS-V431(Hard combination” Goods) tab PCS-V201(Food) Purch. Organization 1000 Site VZ01 Control of document “Control 01 Simulation without creation parameters“ document creation tab Site category B (DC) Released purchase 'X' Orders Active log for LB run 'X' Display Variant “Run List Display Log” 3. Choose Execute. 4. Ignore the message. 7.3.3.4 Loading Building Results List You evaluate the results of automatic load building using a results list and if necessary build loads manually. You can display the result of automatic load building as mentioned below. Procedure The result of the automatic load build run is displayed as follows: 1. Choose List of Results. 2. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order  Order Optimizing  Load Building  Results List for Load Building Transaction code WLB4 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S)

Business role menu Replenishment Planning  Order Optimizing  Results List for Load Build 3. On the Results List for Automatic Load Building Run screen, make the following entries. Field name Description User action and values Comment VendOr PCS-V141(Fashion) PCS-V431(Hard Goods) PCS-V201(Food) Site VZ01 Purch. Organization 1000 4. Choose Execute. 5. On the ResultsLlist for automatic Lload Building screen, you see a list of all load build runs for the parameters you have entered in the initial screen. 6. Choose the line item 7. Choose Details to display. 8. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction

7.3.3.5 Alternative: Manual Load Building Use Before building loads manually, you must ensure that more than one purchase order has been generated and restriction profiles have been maintained. Manual load building can only be carried out for purchase orders and not purchase requisitions Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order  Order Optimizing  Load Building  Manual Load Building Transaction code WLB5 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Replenishment Planner (SAP_NBPR_REPLENISHPLAN_RT_S) Business role menu Replenishment Planning  Order Optimizing  Manual Load Building 2. On the Manual Load Building screen, you have a choice of different selection criteria. You can choose one of more vendors, one or more distribution centers, a certain number of purchase orders, and so on. 3. You now want to combine vendor purchase orders to fulfill the conditions specified in the restriction profile. 4. Make the following entries. Field name Description User action and values Comment Vendor PCS-V141(Fashion) PCS-V431(Hard Goods) PCS-V201(Food)

Site VZ01 Site category B

Include released POs ‘X’ Purchasing 1000 Organization Profile number PCS1 Change Purchase Select Orders 5. Choose Execute. 6. Select row with Order Flag OK 7. Choose (NWBC: More…) Edit  Refresh restrictions from the menu bar.

If all traffic lights are green, the load fulfills the restriction criteria. All purchase Orders with the same collective number are combined in one load. 8. Choose Save. 9. Accept the message: All restrictions are met, Do you want to combine purch. Orders? by choosing Enter. 10. Display (Or print) the purchase Orders that are combined under one collective number. 11. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction 7.3.4 Goods Receipt Capacity Check Until now the process of the purchase order generation did not consider the capacity area of the goods receipt at a warehouse. Up until now, the buyer created the purchase order without knowledge about the follow-on processes. The buyer would not know whether the capacity at the goods receipt was sufficient for processing the incoming merchandise. With this business function, a capacity check is included with purchase order creation. The buyer is informed if the capacity at the warehouse is insufficient for the specified date and the amount of merchandise for the particular goods receipt area. Furthermore, the buyer can decide to move the receipt to another timeslot or to another goods receipt area if the capacity is not sufficient. If there is a capacity bottleneck, the buyer receives an overview about the capacity at the goods receipt area during the purchase Order generation. This development improves the workload at the goods receipt area of a warehouse and optimizes the integration between the buying and the warehouse processes. 7.3.4.1 Creating Purchase Order Use Before using goods receipt capacity check functionality in the transaction of Purchase Order Creation, check if all necessary prerequisites (see chapter 2.10) are fulfilled. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order  Purchase Order  Create  Vendor known Transaction Code ME21N Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser

(SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Purchase Orders  Create Purchase Order 2. On the Create Purchase Order screen, make the following entries: Field name Description User action and values Comment Order type NB Standard PO Vendor PCS-V111(Fashion) PCS-V411 (Hardgoods) PCS-V201 (Food) Doc.date 3. Choose Expand Header and then choose the Org.data tab. 4. On the Org.data tab, make the following entries: Field name Description User action and values Comment Purchasing Org. 1000 Purch. Group 101 Company Code 1000 5. In the Create Purchase Order screen area, make the following entries: Field name Description User action and values Comment Article PCS-01-ART116 (Fashion) PCS-01-ART413 (Hardgoods) PCS-01-ART203 (Food) PO Quantity 100 Delivery Date <…> Please take a day which is not used in TA: WGRC1 as vendor delivery day Site VZ01 Storage Loc. 1001 6. Choose Enter. 7. Now the message appears: No time window assigned for site VZ01 and storage location 1001.

The capacity check for goods receiving is activated in the system. The system was not able to automatically find the corresponding delivery time for the desired delivery date. Now you have to carry out the capacity check for the delivery date and assign the desired time to it. If there is no such message appears, you can bypass the step. 8. Choose GR: capacity check. 9. Now choose the Occupation Plan button to get an overview of the planned occupation. 10. Choose Cancel. 11. If you want to have a look at the actual occupation situation, then press the Occupation Actual button. © SAP SE Page 6 of 8 SAP Best Practices Demand-driven Procurement (721): BPD

12. Choose Back. 13. Select now a time slot on the time window screen.

The planned delivery day is marked with bold letters. Red marked slots are showing scheduled orders. To get an overview for next week you can use the arrow button. 14. After you have marked the time slot, choose the Select TB Profile button. Confirm message Items with delivery date XX/XX/XXXX assigned to delivery date XX/XX/XXXX, time XX:XX:XX

If the delivery date is scheduled on a planned date, the time stamp ca not be removed. If you have to choose a time slot which was not intended for your vendor, you get the message: Assignment of door / area data does not cOrrespond to settings. 15. Choose Save and ignore the messages. 7.3.4.2 Creating Goods Receipt in Distribution Center Use In the following section, the goods receipt is posted with reference to the purchase Order. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Merchandise Logistics  Goods Receipt  Goods Receipt for Purchase Order Transaction code MB01 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Purchase Orders  Post Goods Receipt for PO 2. On the Goods Receipt for Purchase Order: Initial Screen, make the following entries: Field name Description User action and values Comment Movement Type 101 Purchase Order Purchase Order See chapter 7.3.4.1 Site VZ01 StoOrage Location 1001 3. Choose Enter. 4. Choose Save. If necessary, insert best-before date and accept all messages with Enter. 5. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction.

8 Purchase Order Monitoring As the person responsible for purchasing, you will want to gain an overview of your vendors and purchasing organizations from time to time. For example, you want to find out:  Which purchase orders were made with a particular vendor in a particular period.

 For how many purchase orders, have goods already been received.  Whether a vendor has made a full or partial delivery.  Whether a vendor meets deadlines. 8.1 Requirements Planning Workbench See also Chapter 7.2. 8.2 Displaying Open Purchase Orders Use You can run reports analyzing purchase oders according to a variety of criteria. A number of different analyses are available in the system: . List displays for the vendor, article, merchandise category, and supplying site. . Analyses according to purchasing group, merchandise category, for example. You can display open purchase orders, although you have to choose a suitable scope of list. You can set the scope of the list by choosing the following Transaction Code: SPRO  SAP Reference IMG  Materials Management  Purchasing  Reporting  Maintain Purchasing Lists  Scope of List  Define Scope of List. Choose Item “Best” and choose Detail. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order  Purchase Order  List Displays  By Vendor Transaction code ME2L 2. On the Purchasing Documents per Vendor screen, make the following entries. Field name Description User action and values Comment VendOr PCS-V141 (Fashion) PCS-V431 (Hard Goods) PCS-V201 (Food) 3. Choose Execute. 4. Choose a purchase order. 5. Choose Display Document. 6. Choose Back. 7. Choose Print Preview. 8. Choose Back. 9. Choose a purchase order item. 10. Choose Display Delivery Schedule. 11. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Purchase Orders 12. In the List Area of the Powerlist you can see in the All My Purchase Orders tab, all with your User created Purchase Orders. 13. If you want to display (Or search) for a special vendor, click on Filter.

14. You will get a new empty line in the List Area. The vendor, which you look for could now be entered under vendor for example, PCS-V431 (note in our case the double quotation marks) and confirm with Enter. 15. If you want to delete the filter, click on the Delete Filter button. 16. If you want to look at the details of a Purchase Order, click on the Purchase Order in the List Area. Now you can choose the Display Purchase Order button. You have the possibility (see Option 1, step 9 – 10) for example, to see the schedule line of your Purchase Order. 8.3 Displaying Status Data for the Purchase Order Header Use The purchase order header contains information relating to the entire document (total purchase order value, for example). Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Purchasing  Purchase Order  Purchase Order  Display Transaction code ME23N 2. On the Display Purchase Order screen, choose Document overview on. 3. Choose My purchase Orders under the Selection variant section. Then double-click the purchase Order number. Go to the Status tab. Here you can see for example, if the delivery is completed. Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Purchase Orders 4. Click in the power list on the All My Purchase Orders tab. 5. Click on a Purchase Order in the List Area and then choose the Display Purchase Order button. 6. Go to Status tab. Here you can see for example, if the delivery is completed. 8.4 Displaying the Purchase Order History Use All transactions for a purchase order item (goods receipts and item invoice receipts) are documented in the purchase order history. This is a dynamic tab that is only displayed when a purchase order history exists for the document. Procedure 1. Expend item details. 2. Go to Purchase Order History tab. 3. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction.

9 Vendor Evaluation

This section shows you how vendor evaluations can be used to optimize goods procurement. Vendor evaluation makes it easier for you to choose supply sources and continuously monitor existing supply relationships. It provides accurate information on the best prices, terms of payment and delivery, thereby helping you maintain your competitive edge. You can identify any problems that might arise in the procurement process and use the detailed information available to solve these problems with the vendor in question. The main evaluation criteria are:  Price  Quality  Delivery  Service The following section illustrates vendor evaluation using the semi-automatic scoring method (relating to different materials at info record level), since no historical data is available for automatic vendor evaluation. You need a scoring range so that you can evaluate the relative performance of a vendor. Vendor evaluation offers a three-tier scoring system from 1 to 100, which you can use to compare your vendors. You can enter scores for sub-criteria per article and vendor at info record level. The system uses these scores for vendor evaluation. 9.1 Initial Maintenance of Vendor Evaluation Use You have to assign a weighting key to vendors who have not yet been evaluated. The weighting key is an abbreviation under which the weighting shares for a group of main criteria are grouped together and saved. The system can calculate the overall score on the basis of the weighting key and the main criteria. To make it easier to maintain the criteria that you need to execute vendor evaluation, initial maintenance is carried out using the following CATT. You are advised to carry this out in a second session. Procedure 1. Access the transaction using one of the following navigation options: SAP ECC menu Tools  ABAP Workbench  Test  Test Workbench  Test Tools  SECATT - Extended CATT Transaction code SECATT 2. On the Extended Computer Aided Test Tool: Initial Screen, make the following entries. Field name Description User action and values Comment Test Configuration Z_DE_VENDOR_EVALUATION Choose Execute. Error behavior “Shared” tab ‘S No Termination, Continue with Next Script Command’ Change Path “Variants” Navigate to the directory, where tab your variant-files are stored Selection Select the Fashion: ‚10003’ lines Food: ‚30005’ Hard Goods: ‘40003' Start mode for “UI Control” ‚N Process in Background, command TCD tab synchronous local’

Field name Description User action and values Comment Choose Execute. Choose Back. 3. Now you are able to control or maintain the evaluation record with the Transaction ME61. In the next step a new evaluation record for another vendor of this article is created. Field name Description User action and values Comment Test Configuration Z_DE_VENDOR_EVALUATION Choose Execute. Error behavior “Shared” tab ‘S No Termination, Continue with Next Script Command’ Change Path “Variants” Navigate to the directory, where tab your variant-files are stored Selection Select the Fashion: ‚10004’ lines Food: ‚30006’ Hard Goods: ‘40004' Start mode for “UI Control” ‚N Process in Background, command TCD tab synchronous local’ 4. Choose Execute. 5. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. Result The evaluation record was changed. 9.2 Automatic Reevaluation Use The automatic reevaluation function allows you to update the automatic and semi-automatic sub- criteria for a vendor. This enables you to reevaluate the scores for a vendor and observe how a vendor’s scores have changed since the previous evaluation. The scores from the previous evaluation that have been maintained manually (by CATT) are included unchanged in the calculation to ensure that the results remain comparable. The system provides you with a comparison of the old and new scores for all automatic and semi-automatic sub-criteria. If required, you can replace the old scores with the new ones. To begin with, you will not find any old scores in the display because the evaluation is being carried out for the first time. The organizational level at which vendors are evaluated is the purchasing organization. Each purchasing organization evaluates the vendors that it has been assigned. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master data  Vendor Data  Vendor Evaluation  Automatic New Evaluation Transaction code ME63 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal

Purchaser(SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Vendors  Evaluation of Automatic Subcriteria 2. On the Calculate Scores for Semi-Automatic and Automatic Subcriteria screen, make the following entries. Field name Description User action and values Comment Vendor PCS-V141 (Fashion) PCS-V431 (Hard Goods) PCS-V201 (Food) Purchasing 1000 Organization 3. Choose Execute. 4. Choose All logs and choose Back. 5. Choose Save. Evaluation record has changed. 6. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 9.3 Maintaining the Vendor Evaluation Manually Use You can subdivide each main criterion into several sub-criteria to ensure that the detailed evaluation remains clear. Sub-criteria are the smallest units for which vendor evaluation scores are calculated. Now maintain the criteria created using the CATT manually in such a way that certain sub- criteria change. You can then carry out a reevaluation as described under point 9.2. The relevant sub-criteria are not maintained in the following example, since the main criterion of performance applies to services. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Vendor Data  Vendor Evaluation  Maintain Transaction code ME61 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Vendors  Maintain Vendor Evaluation 2. On the Maintain Vendor Evaluation: Initial Screen, make the following entries. Field name Description User action and values Comment Purchasing 1000 Organization Vendor PCS-V141 (Fashion) PCS-V431 (Hard Goods) PCS-V201 (Food)

Field name Description User action and values Comment Choose Enter. Weighting key 02 Unequal Weighting Choose Main criteria Price level 50 Price behaviOr 30 Choose Enter. main criterion 01 will be computed Choose Next main criteria GR inspection 40 Rejection/complaint 50 Audit 40 Choose Enter. main criterion 02 will be computed Choose Next main criteria On-time delivery 60 Quantity reliability 60 Shipping instructions 50 Adheres to 40 confirmation date Choose Enter. main criterion 03 will be computed Choose Next main criteria Service quality 70 Reliability 70 Choose Enter. main criterion 04 will be computed 3. Choose Save. Evaluation record changed 4. Choose Back (F3) to the SAP Easy Access screen (SAP GUI). Or Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP Home (SAP NetWeaver Business Client). 5. Repeat the above steps with: Vendor PCS-V142; PCS-V432 and PCS-V202 Price Level 70 Price Behavior 40 Goods receipt inspection 70 Complaint 60 Audit 70 On-time delivery 80 Quantity reliability 85

Shipping instructions 75 Adheres to confirmation date 55 Service quality 80 Reliability 95 6. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 9.4 Analyses Relating to Vendor Evaluation

9.4.1 Comparison of Evaluations Use The evaluation comparison is an analysis that compares the general evaluation of a vendor with the evaluation regarding a particular article. This analysis differs from the others insofar as it offers a more detailed evaluation of vendors without comparing them with other vendors. Instead, the overall evaluation calculated using the scores of vendors of all materials is compared with the evaluation that the vendor would be awarded if the evaluation were based only on a particular material. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Vendor Data  Vendor Evaluation  Compare Evaluations Transaction code ME64 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Vendors  Display Evaluation Comparison 2. On the Evaluation Comparison screen, make the following entries. Field name Description User action and values Comment Vendor PCS-V141 (Fashion) PCS-V431 (Hard Goods) PCS-V201 (Food)

Purchasing ‘1000 Organization Article PCS-04-ORB142 (Fashion) PCS-04-ORB431 (Hard Goods) PCS-04-ORB201 (Food) 3. Choose Execute. 4. Choose Evaluation. 5. Place cursor on price and choose Detail. 6. Choose Back. 7. Place cursor on line 01 Price and choose (NWBC: MOre…)Goto Graphic from the menu bar.

8. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 9.4.2 Rank Lists Use The ranking list displays your vendors in descending order according to their overall score. This provides you with an at-a-glance view of the best-ranking vendors. As well as the overall score, the scores for the various main criteria are also displayed. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Vendor Data  Vendor Evaluation  List Displays  Ranking Lists Transaction code ME65 Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Vendors  Display Ranking List of Vendors 2. On the Ranking List of Vendors screen, make the following entries. Field name Description User action and values Comment Purchasing 1000 Organization Vendor PCS-V141 to PCS-V142 (Fashion) PCS-V431 to PCS-V432 (Hard Goods) PCS-V201 to PCS-V202 (Food) 3. Choose Execute. 4. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction. 9.4.3 Executing an Evaluation of the Article/Merchandise Category Use The evaluation list for the article/merchandise category gives you a list based on the analysis of a particular material or a particular merchandise category. This evaluation lets you see which vendors of a particularly important material receive a high, average, or low ranking. Procedure 1. Access the transaction using one of the following navigation options: Option 1: SAP Graphical User Interface (SAP GUI) SAP ECC menu Logistics  Retailing  Master Data  Vendor Data  Vendor Evaluation  List Displays  Evaluation per Article/Merchandise Category Transaction code ME6B

Option 2: SAP NetWeaver Business Client (SAP NWBC) Business role Retail Non-Seasonal Purchaser (SAP_NBPR_NONSEASBUYER_RT_S) Business role menu Purchasing  Non-Seasonal Purchase Management  Vendors  Display Vendsor Evaluation for Article 2. On the Ranking List of Vendor Evaluations Based on Material/Material Group screen, make the following entries. Field name Description User action and values Comment Purchasing 1000 Organization Vendor PCS-V141to PCS-V142 (Fashion) PCS-V431 to PCS-V432 (Hard Goods) PCS-V201 to PCS-V202 (Food) Article PCS-04-ORB142 (Fashion) PCS-04-ORB431 (Hard Goods) PCS-04-ORB201 (Food) 3. Choose Execute. 4. Choose Back (F3) or Exit (Shift+F3) to navigate away from the transaction.

You can also evaluate your vendors regularly in background processing.