SAP BPC NW 10.0 SKU Level Planning

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Author: Chief Architect:

Murugesan Annamalai Jothi Periasamy

SAP Project Manager/Lead SAP HANA/EPM/BI/EIM Community Leader

SAP EPM/BPC Solutions Lead SAP BPC/BOBJ/BI/MDM Domain Champion

[email protected] 08/01/2013 [email protected], (916)-296-0228 - Cell

SAP BPC NW 10.0 |KNOWLEDGEBASE

(A SAP EPM Community Service)

SKU Level or Top-Down Planning

Implementation Guide

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CloneSkills, Inc., http://www.CloneSkills.com , [email protected] , 1.800.836.8959, Page - 2

Table of Contents

Executive Summary: ........................................................................................................ 3

Business Scenario: ........................................................................................................... 4

Business Scenario – 1: ..................................................................................................... 5

Business Scenario – 2: ..................................................................................................... 6

Solutions Architecture: .................................................................................................... 7

Solutions Building Blocks: ................................................................................................ 8

Entity Structure: ............................................................................................................ 10

Product Hierarchy: ........................................................................................................ 11

Product Hierarchy – Sample: ......................................................................................... 12

Product Hierarchy – Sample: ......................................................................................... 13

Dimension – ACCOUNT .................................................................................................. 14

Dimension – CATEGORY ................................................................................................ 15

Dimension – ENTITY ...................................................................................................... 16

Dimension – PRODUCT_ALLOC ...................................................................................... 17

Dimension – PRODUCT_ALLOC – Hierarchical View ....................................................... 18

Dimension – RPTCURRENCY........................................................................................... 19

Dimension – TIME ......................................................................................................... 20

Configuration : .............................................................................................................. 21

Planning : ...................................................................................................................... 22

SKU Level/Top-Down Planning in Action(Business Scenario - 1): .................................... 23

Appendix – 1 : ............................................................................................................... 68

Data Manager Script (SKU Planning): ............................................................................ 68

Logic Script – CPG_PLAN.LGF : ....................................................................................... 69

Disclaimer: .................................................................................................................... 70

SAP Community Contributors: ....................................................................................... 71

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Executive Summary:

The purpose of this document is to provide mandatory and adequate

implementation steps to implement SKU level (or Top-Down) planning at various

level on a product hierarchy, and also to better understand the real-life business

needs and requirements around SKU level planning. In this particular presentation

we are using a CPG (Consumer Packaged Goods) industry use case as an example to

demonstrate the actual business need on SKU level planning and forecasting. The

scope of our SAP BPC NW 10.0 implementation includes SAP BPC data modelling, SAP

BPC designing, SAP BPC build and logic scripting and also an implementation

approach and methodology for a top down planning or SKU level planning and

forecasting implementation.

This step by step implementation guide well equips users with all essential and

mandatory steps that required implementing a SKU level planning under any

business scenario. Even though the solution was developed for a CPG industry but

further these solutions can be customised to meet any other industries such as Oil &

Gas, Power and Utility, and etc.

It has been assumed that the user has basic knowledge/understanding about SAP

BPC NW 10.0 version and SAP system landscape.

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Business Scenario:

CubeInsights, Inc. has been in retail business for about 20 years, and the company

has been growing big, and now they have their operations across the world.

CubeInsights is selling almost 2000 (two thousand) consumer products at various

stores and they are posting their financial transactions in 52 (fifty two) currencies.

To support the increasing marketing demand, competition, and customer growth,

CubeInsights is interested in planning for their revenue at various product levels of

the product hierarchy. CubeInsights is currently using spread sheet for their planning

and forecasting and they are using their past six months’ actuals as a baseline for the

planning and forecast process. Here are the business scenarios:

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Business Scenario – 1:

� CubeInsights, Inc. is manufacturing and selling consumer products to it's

customers.

� The company is planning to increase it's Sales Revenue, through Third Party

Sales, for the periods - Jan 2013 and Jul 2013.

� The company has achieved the sales revenue target of 120 million dollars for

the period – Jan 2012.

� The company has achieved the sales revenue target of 125 million dollars for

the period – Jul 2012.

� It wants to achieve the new target by using the sales revenue achieved for the

same period for the last year i.e. for the periods - Jan 2012 and Jul 2012

respectively.

� And, it has set the sales revenue target as 130 million dollars for Jan 2013, and

140 million dollars for Jul 2013.

� The company wants the new target to be distributed top-down

proportionately, based on the actual revenue achieved in Jan 2012 and Jul

2012 respectively.

� The company uses SAP BPC 10 to come out with the sales revenue plan.

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Business Scenario – 2:

� CubeInsights, Inc. is manufacturing and selling consumer products to it's

customers.

� The company is planning to increase it's Sales Volume for the Product – Olay

Natural White, for the periods - Jan 2013 and Jul 2013.

� The company has achieved the sales volume target of 5 million SKUs for the

period – Jan 2012.

� The company has achieved the sales volume target of 7 million SKUs for the

period – Jul 2012.

� It wants to achieve the new target by using the sales volume achieved for the

same period for the last year i.e. for the periods - Jan 2012 and Jul 2012

respectively.

� The company has set the sales revenue target as 130 million dollars for Jan

2013, and 140 million dollars for Jul 2013.

� The company wants the new target to be distributed top-down

proportionately, based on the actual revenue achieved in Jan 2012 and Jul

2012 respectively.

� The company uses SAP BPC 10 to come out with the sales volume plan.

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Solutions Architecture:

The solution makes use of SAP BW server which is using SAP HANA as database

server to store data. SAP BPC 10 NW server is sitting in between SAP BW and the SAP

BPC’s various front end tools – MS Office Tools and the web browser.

Data from various data sources can be uploaded into SAP HANA database. This data

is then processed by SAP BPC server through SAP BW and then shown through MS

office client and web interfaces.

Besides this, SAP BW server can also be accessed through SAP GUI – a Windows

Client, but It is not advisable to change the data through SAP BW.

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Solutions Building Blocks:

CubeInsights, Inc’s entities are exporting past sales revenue and sales volume data to

SAP BW. These data are then transferred to SAP BPC cube. Business users can now

forecast sales revenue & volume for the next six months for an entity, using SAP BPC

NW 10.

# Solution Building Blocks System/Infrastructure Technical Details

1 Environment : ENV120_JUN27 SAP BPC SAP BPC Server

2 Model : SKU_PLANNING SAP BW Real-Time InfoCube Model Type - Financial

3 Dimension : ACCOUNT SAP BPC Dimension Dimension Type – A

4 Dimension : CATEGORY SAP BPC Dimension Dimension Type – C

5 Dimension : ENTITY SAP BPC Dimension Dimension Type – E

6 Dimension : PRODUCT_ALLOC SAP BPC Dimension Dimension Type – U

7 Dimension : RPTCURRENCY SAP BPC Dimension Dimension Type – R

8 Dimension : TIME SAP BPC Dimension Dimension Type – T

9 SKU Planning SAP BPC Data Manager Package.

This is used to run the

logic script which

calculates the plan data.

10 CPG_PLAN.LGF SAP BPC Logic Script. This is used

to calculate plan data

based on past and target

data.

11 SKU_PLANNING.XLSX SAP BPC Input Form as well as

Report. The work book

in the input form/report

is used to accept

past(first tab) and target

data(second tab) and to

show the plan data(third

tab).

12 /CPMB/FX_RESTATMENT SAP BPC Process Chain. This is

used to run the logic

script which is used to

calculate the plan

data/values . This is an

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existing process chain

and for demo purpose,

this is being used in this

SKU planning solution.

This process is NOT

performing any currency

conversion here.

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Entity Structure:

The following picture shows the entity structure for the main group – CubeInsights,

Inc. The main group has invested in its’ subsidiaries – US, Singapore and Germany.

While US has invested in Canada with 70% stake and Singapore in India with 80%

stake, Germany has invested in UK with 20% stake. As for the main group of

CubeInsights, it has 80% stake in the US subsidiary, 80% stake in the Singapore

subsidiary and 90% stake in the German subsidiary.

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Product Hierarchy:

CubeInsights, Inc. is producing and selling the CPG industry products to the outside

world. The following diagram shows the product hierarchy. At the hierarchy, Product-

Family is at the top. Each Product-Family has various Groups under it. And, each

Group consists of Products. And, each Product consists of SKUs.

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Product Hierarchy – Sample:

The following diagram shows a sample product hierarchy used in the solution. Here,

there are two product families – Personal Care & Household Care. Under the Family

– Personal Care, there are five Groups, and the Group – Beauty & Grooming, is

having six products. And the product – Shampoo & Conditioner, is having 3 SKUs. For

more details, refer to the diagram below.

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Product Hierarchy – Sample:

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Dimension – ACCOUNT

The following screen shows the dimension members from ACCOUNT dimension :

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Dimension – CATEGORY

The following screen shows the dimension members from CATEGORY dimension :

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Dimension – ENTITY

The following screen shows the dimension members from ENTITY dimension :

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Dimension – PRODUCT_ALLOC

The following screen shows the dimension members from PRODUCT_ALLOC

dimension :

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Dimension – PRODUCT_ALLOC – Hierarchical View

The following screen shows the dimension members from PRODUCT_ALLOC

dimension in a hierarchical view/format:

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Dimension – RPTCURRENCY

The following screen shows the dimension members from RPTCURRENCY dimension :

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Dimension – TIME

The following screen shows the dimension members from TIME dimension :

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Configuration :

� Step # 1 : Login to SAP BPC NW 10 server and launch BPC web administration

client.

� Step # 2 : Create and configure the dimensions needed(ACCOUNT, CATEGORY,

ENTITY, PRODUCT_ALLOC, RPTCURRENCY & TIME). Also, create the product

hierarchy for the base level products in the PRODUCT_ALLOC dimension.

� Step # 3 : Create and configure the model - SKU_PLANNING.

� Step # 4 : Create a new workbook with THREE tabs – one to accept sales

target achieved last year(Actuals), second one to accept the sales target to be

achieved(Target Data) and the third one to display the allocated/distributed

values of sales target(Plan Data) based on the past achieved target values.

� Step # 5 : In the work book, go to the first tab(Actuals) and create an input

form to accept the sales target achieved by the entity for the last period/year.

� Step # 6 : In the work book, go to the second tab(Target Data) and create an

input form to accept the sales target to be achieved by the entity for the

future period.

� Step # 7 : In the work book, go to the third tab(Plan Data) and create a

report/input form to display the sales target, distributed down the lane, to be

achieved by the entity for the future period. These allocated values can then

be modified by the user as needed.

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� Step # 8 : Develop a logic script to perform allocation of sales target values

from top to bottom. The script reads the sales target achieved by the entity

for the last period/year at the non-base level products and distributes this

value to the base level products.

� Step # 9 : Create and configure a data manager package to run logic

script(created at Step # 8)) to read sales target set at the non-base level

products and distribute it to the base level products.

Planning :

� Step # 1 : In the work book, created under Step # 4 of Configuration section,

go to the first tab(Actuals) and key-in the sales target achieved by the entity

for the last period/year.

� Step # 2 : In the work book, go to the second tab(Target Data) and key-in/set

the sales target to be achieved by the entity for the future/upcoming period.

� Step # 3 : Now, run the DM package, created under Step # 9 of Configuration

section, to distribute the sales target set for the future period/year based on

the sales figures achieved by the entity for the last period/year.

� Step # 4 : In the work book, go to the third tab(Plan Data) and verify the

distributed/allocated sales targets for the entity for the future period/year

based on the sales target achieved by the entity for the last period/year.

These distributed values can then be modified by the planning users as

needed.

� Step # 5 :Now, close the excel work book and log off from SAP BPC NW 10

server.

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SKU Level/Top-Down Planning in Action(Business Scenario - 1):

1. Login to BPC 10 NW server as shown in the screen.

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2. Launch BPC web admin. client.

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3. Create and configure ACCOUNT dimension as shown below:

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1.1 Populate the ACCOUNT dimension with members as shown below:

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4. Create and configure CATEGORY dimension as shown below:

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4.1 Populate the CATEGORY dimension with members as shown below:

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5. Create and configure ENTITY dimension as shown below:

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5.1 Populate the ENTITY dimension with members as shown below:

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6. Create and configure PRODUCT_ALLOC dimension as shown below:

Note :

The property – GROUP, is used to identify the levels of non-base level members. Non

base level members are nothing but groups at multiple levels in the product

hierarchy. Planning or sales target can be set only at these levels and NOT at the base

level members.

i.e. planning or setting the target is allowed only at the non-base level members. At

any point of time, planning/allocation is allowed only at one level(non-base

members) and planners have to specify this input(about the level) when running the

data manager package.

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6.1 Populate the PRODUCT_ALLOC dimension with members as shown below:

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6.2 Create the product hierarchy within the PRODUCT_ALLOC dimension as shown

below:

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7. Create and configure RPTCURRENCY dimension as shown below:

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7.1 Populate the RPTCURRENCY dimension with members as shown below:

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8. Create and configure TIME dimension as shown below:

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8.1 Populate the TIME dimension with members as shown below:

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9. Create and configure the model – SKU_PLANNING, as shown below:

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10. Now, launch Excel add-in for MS Office:

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10.1 And, connect to model – SKU_PLANNING, as shown below:

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11. Create a new workbook with THREE tabs – one to accept sales target achieved

last year/period(Actuals), second one to accept the sales target to be

achieved(Target Data) for the upcoming/future period and the third one to display

the allocated/distributed values of sales target(Plan Data) based on the past

achieved target values.

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12. In the work book, go to the first tab(Actuals) and create an input form to accept

the sales target achieved by the entity for the last period/year(Jan 2012 to Dec

2012).

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13. In the work book, go to the second tab(Target Data) and create an input form to

accept the sales target to be achieved by the entity for the future/upcoming

period(Jan 2013 to Dec 2013).

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14. In the work book, go to the third tab(Plan Data) and create a report/input form

to display the sales target, distributed down the lane, to be achieved by the entity for

the future/upcoming period(Jan 2013 to Dec 2013). These allocated values can then

be modified by the user as needed.

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15.1 Go to Administration workspace as shown below:

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15.2 Go to Logic Script section as shown below:

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15.3 Click on Scripts for : SKU_PLANNING.

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15.4 Create a new logic script as shown below:

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15.5 Save the script and Close the window.

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15.6 The logic script accepts currency, entity and time as inputs along with the input

for the level at which the allocation has to be done.

There are 4 levels for which, allocation can be done. However, at any point of time,

allocation can be done for only one level. This single level has to be specified by the

users when running the data manager package which in turn runs the logic script.

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16. Now, launch Excel add-in and connect to SKU_PLANNING model. Then, go to the

Data Manager section in the excel add-in as shown below:

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17. Click on Organize Package List.

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18. Right click at the right hand side of the screen and click on Add Package.

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19. Create a package with the following details and click on Modify Script button.

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20. Click on the Advanced button now.

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21. Complete the scripting as shown and click OK and Save buttons subsequently:

This DM package script is calling the logic script we created earlier(highlighted in

GREEN colour).

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21.1 In the following DM package script,

- Section A allows user to specify the inputs for entity, currency and time dimensions.

- Section B allows user to specify the level at which allocation has to be done.

- Section C calls the logic script – CPG_PLAN.LGF, and runs it. This .LGF is the one

which performs the ultimate allocation function.

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22. Now, Close the window.

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23. Now, open the work book and go to the first tab(Actuals) and key-in the sales

target achieved(in the past) by the entity for the last period/year(Jan 2012 and Jul

2012).

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24. In the work book, go to the second tab(Target Data) and key-in/set the sales

target to be achieved by the entity for the future/upcoming period(Jan 2013 and Jul

2013). Set the target ONLY for the top level i.e. All CPG Products. And, Save the data.

Important Note :

Here, sales target can ONLY be set to the non-base level members. Hence, this

screen shows the hierarchy containing only the non-base level members.

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25. Now, run the DM package, we created earlier, to distribute the sales target set

for the future period/year(for Jan 2013 and Jul 2013) based on the sales figures

achieved by the entity for the last period/year(achieved for Jan 2012 and Jul 2012).

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26. When running the DM package, specify the inputs as follows and click Next

button:

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27. Here, specify the Level at which, allocation has to be done and click Next button.

Note : Here, the level MUST be Level 0 i.e. top most level, since we have specified the

data only at the top level.

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28. Now, click the Finish button to kick start the running of the script.

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29. Now, check the status of the running package and make sure that it is successful:

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30. In the work book, go to the third tab(Plan Data) and refresh & verify the

distributed/allocated sales targets for the entity for the future period/year(for Jan

2013 and Jul 2013) based on the sales target achieved by the entity for the last

period/year(achieved for Jan 2012 and Jul 2012). These distributed values can then

be modified by the planning users as needed.

Note : The rolled-up data at the top level is tallying with what was entered as the

target for the said period – for Jan 2013 and Jul2013. This clearly proves that the

allocation has been done successfully.

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31. To re-confirm that the target distribution is correct, we will now take the product

– Olay Natural White, and compute the distributed target for Jan 2013.

Target(planned) for Olay Natural white = (A/B) * C

=(700,000/1,800,000) * 1,950,000

= 758,333.33

=D

This proves that our allocation is perfect.

Close the excel add-in and log off from SAP BPC NW 10 server.

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Appendix – 1 :

Data Manager Script (SKU Planning):

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Logic Script – CPG_PLAN.LGF :

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Disclaimer:

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The statutory liability for personal injury and defective products is not affected.

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SAP Community Contributors:

Author : Chief Architect :


SAP Project Manager/ Lead SAP HANA/EPM/BI/EIM Community Leader

SAP EPM/BPC Solutions Lead SAP BPC/BOBJ/BI/MDM Community Domain

Champion

[email protected] [email protected], (916)-296 0228 - Cell

We always we appreciate your help and support in growing SAP HANA/EPM/BI/EIM

community. Don’t hesitate to contact us for any of your needs, including:

� Rolling Forecast

� SKU-Level/Top-Down Planning

� Consolidation

� Planning

� Budgeting

� etc.

SAP BPC NW 10.0 SKU Level Planning

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