Performing Merchandise Allocation (5FL)

In order to actually execute a planned promotion, you perform the subsequent processing steps. These steps are either executed online, or by scheduling the corresponding reports for background processing. The available subsequent processing steps are executing listing, performing supply source determination, generating an allocation table and executing price activation. Not all steps necessarily have to be executed for each promotion. For example, if all the promotion articles are already listed in all the participating sites, additional promotion listing is not necessary. However, if planned promotion prices should become valid, price activation is necessary to create the condition records accordingly. In addition, supply source determination is necessary for both price activation and allocation table generation - if an allocation table is planned for procuring and distributing promotional merchandise. This is not mandatory, for example, a retail promotion could also be executed to sell off already existing stock in the stores.

The solution processes shown in the figure above, Process Overview: Merchandise Allocation (5FL), describes the option how to plan and to control the merchandise flow, for example started with a Retail promotion. The process begins with creating an allocation table to plan the distribution of merchandise and in a second step to trigger the necessary goods movements. Thereby the merchandise can be delivered directly from the supplier to the store(s), from the supplier to a distribution center and then to the store(s), or from a distribution center to the store.

With the generation of the follow-on documents the necessary documents for the merchandise flow are generated: it can be standard purchase orders for procurement from external supplier or you can generate stock transport orders for stock reduction. In case of a return process involving sites, the follow-on documents are then returns purchase orders/stock transfer orders.

In order to actually execute a planned promotion, you perform the subsequent processing steps online. The available subsequent processing steps are executing listing, performing supply source determination, generating an allocation table and executing price activation. Not all steps necessarily have to be executed for each promotion. For example, if all the promotion articles are already listed in all the participating sites, additional promotion listing is not necessary. However, if planned promotion prices should become valid, price activation is necessary to create the condition records accordingly. In addition, supply source determination is necessary for both price activation and allocation table generation - if an allocation table is planned for procuring and distributing promotional merchandise. This is not mandatory, for example, a retail promotion could also be executed to sell off already existing stock in the stores.

With the SAP Fiori app Retail Promotion, you can access promotion data and context information easily and efficiently. The app displays all relevant information about a promotion in one place and enables you to navigate directly to related business objects. For example, the app also displays the allocation table number, as well as its follow-on documents.

You can have the system generate an allocation table in subsequent processing for a promotion.

An allocation table is a tool used by the head office to plan, control, and monitor supplies to sites (stores, distribution centers). For example, it is used for the initial procurement and distribution of articles, for distribution of promotional goods, distribution of stocks, and distribution of imported goods procured centrally. Therefore, the allocation table is a standalone SAP Retail purchasing function, which is also embedded in Retail promotion planning and subsequent processing.

You can control the article quantity distribution to the sites in promotion planning by specifying a minimum order quantity, or by defining allocation table data. Here, you can use an allocation rule, which either contains fixed quantities or relative shares for each site in the site group, or you can apply an allocation strategy. When you are creating an allocation table in purchasing, you either enter a site group with quantity distribution by manual entry or allocation strategy, or you assign an allocation rule to distribute the quantities.

You can have the system generate documents for Logistics for each business transaction (controlled by the item category) in follow-on document generation of the allocation table. For example, you can generate stock transport orders for stock reduction, and standard purchase orders for procurement from external suppliers.

The allocation table comprises the following structural elements:

• The header contains information such as the allocation table number, the organizational levels (purchasing organization and purchasing group) and a header text.

• An allocation table item contains information such as the item category, article number, planned quantity, site group, allocation rule or allocation strategy, and status information.

• A site group is assigned to an allocation table item. The site group view contains information such as the site group number, the assigned sites, allocation quotas, and planned quantities.

• Sites are assigned to a site group. The site view is also available for each allocation table item, and provides information such as the site number, planned quantity, source of supply, and delivery dates. Depending on the item category, either a distribution center is assigned as supplying site, or an external vendor is displayed as source of supply.

• The distribution center view of an allocation table item contains information such as the distribution center number, planned quantity, and the external vendor supplying the DC.

The allocation table type contains the following default parameters for quantity calculation for the allocation table:

• Rounding: Controls how rounding takes place during quantity calculation for sites. You can have the system consider rounding profiles from the article master, or round up/down/off.

• Distribution of remaining quantities (Split remainder): Controls how remaining quantities in quantity calculation are distributed, or if the total quantity is to be adjusted.

• Minimum and maximum quantities: Controls, if these are considered for each site to calculate or update planned quantities.

The item category for the allocation table defines the business transaction. It defines which follow-on documents are to be generated using the allocation table. The item category plays a very important role when it comes to defining the merchandise flow.

When creating an allocation table, you can perform a mass selection of articles. You can choose from many different article selection criteria, such as merchandise category, article category, and many more.

The function for generating follow-on documents allows you to create supplier orders, and stock transport orders from an allocation table.

In this case, no purchase order is placed with a supplier. The sites defined in the allocation table are supplied with merchandise from the existing warehouse stock of the distribution center. The DC stock can be reduced to supply sites using stock transfer orders. Supply source determination for a particular site is used to find distribution centers (internal supplier).

Allocation tables can also be used for returns processes involving sites - for example, for a central product recall. The follow-on documents are then returns purchase orders/stock transfer orders.

The purchaser/allocator sends a supplier order for the sites to an external supplier. This supplier is asked to deliver the merchandise directly to the stores for whom the order was placed. Supply source determination is used to find external suppliers.

In this case the allocation table is used for returns from stores to their DC. The follow-on documents are then stock transfer orders.

Functions of the allocation table

When creating an allocation table, you can perform a mass selection of articles. You can choose from many different article selection criteria, such as merchandise category, article category,supplier, and many more.

When you create an allocation table, you can reference existing supplier orders - for example, you can select these according to the delivery date.