Configuring Weighted Average

Objective

After completing this lesson, you will be able to configure Weighted Average

Weighted Average

Instead of using several complex calculations, use the IBP_WEIGHTEDAVG function to calculate weighted average for a key figure in one step.

To calculate weighted average, use the IBP_WEIGHTEDAVG function in the calculation definition of key figures in the Planning Areas app: IBP_WEIGHTEDAVG(＜KEY FIGURE@PLANLEVEL＞,＜KEY FIGURE@PLANLEVEL＞ or ＜ATTRIBUTE＞,＜TYPE OF NUMERATOR＞)

Parameters of the Weighted Average Function

The IBP_WEIGHTEDAVG function has three mandatory parameters:

  1. Input key figure at planning level
    1. As an example, STOREDPRICE@MTHPRODLOC. The sum of the first parameter multiplied by the second parameter is the numerator of the calculation, for example, SUM("STOREDPRICE@MTHPRODLOC"*"ACTUALSQTY@MTHPRODLOC").
  2. Input key figure at planning level or an attribute
    1. The second parameter of the IBP_WEIGHTEDAVG function is the denominator of the calculation. In case a calculated numerator is used in the function, the value of the second parameter is the denominator and the weight as well. If it is a master data attribute, it must be assigned to the input planning level of the first key figure.
  3. Type of the numerator
    1. This parameter defines whether the numerator is stored or calculated. If the value is "CALCULATEDNUMERATOR", the numerator is calculated; it is the sum of the first parameter multiplied by the second parameter. If the value is "STOREDNUMERATOR", the numerator's value already includes a multiplication by the weight.

Demonstration: How to Configure Weighted Average

ExerciseStart Exercise

Configure Weighted Average

In one of the previous exercises, you were configuring a weighed price key figure. We will create another weighed price key figure, using the simplified calculation and using the historical sales as a weight.

Task 1: Activate Your Planning Area

Steps

  1. Activate your planning area.

    1. Choose Activate → Full Scope with Dependencies.

    2. Refer to the activation logs to ensure that your planning area is activated.

Task 2: Test Your Solution Using Planner Workspace

Steps

  1. Test your solution by creating a Planner Workspace using the following information.

    FieldValue
    Time
    Time PeriodMonthly
    FromCurrent Month
    ToCurrent Month + 12
    RollingYes
    Planning Level
    Product ID

    Selected

    Customer ID

    Selected

    Key Figures 
    Actuals Qty

    Selected

    Forecast Price

    Selected

    Forecast Price (calculated weighted)Selected
    Currency ToUSD
    UOM ToEA
    Filters
    Customer ID104

    1. Choose Planner Workspaces app in the General Planner group.

    2. Open the workspace 300_##.

    3. On the top right, choose Workspace → Design.

    4. Choose Settings on the top right of your existing planning view.

    5. Under the More dialog (three dots), choose Manage Workspace Content.

    6. Select your component and choose Copy.

    7. Name your new planning view as Weighted Average.

    8. Return to the Planner Workspaces app and choose Planning View.

    9. Select the copied content.

    10. Complete the dialog box with the information provided in the table.

    11. To display the planning view, choose Apply.

    12. When you confirm the calculation, choose Workspace → Save on the top right.

      Result

      For January 2023, for example, Forecast Price (calculated weighted will be equal to Actuals Qty for the first product, multiplied by it's Forecast Price, plus Actuals Qty for the second product, multiplied by its Forecast Price, and divided by the sum of Actuals Qty for two products.

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