SAP Sharenet 2005

Retail Stock Management in SAP

 Enterprise managed in SAP

R/3 or mySAP Retail
 Primary transactions in a
Point-of-Sale system
 Replication in SAP

© 2005 IGSI
 SAP Sharenet 2005

A Typical Retailing Operation Overview

HEADQUARTERS CUSTOMER

DISTRIBUTION SAP R/3

CENTRE
mySAP Retail
VENDOR
STORE

E-STORE CONSUMER

© 2005 IGSI
 SAP Sharenet 2005

The tills at the store ...

C
Check-out 1 O
C
N
O
S
Check-out 2 N
SERVER O
V
L
@ E
Check-out 3 I
R
STORE D
S
A
Check-out ... I
T
O
I
Check-out n N
O
N
© 2005 IGSI
 SAP Sharenet 2005

Primary Requirement

 Replicate PoS data faithfully in SAP

– Sales quantity and value
– Receipt quantity and value
– Despatch quantity and value

 Control retail inventory based on PoS data

maintained in SAP

© 2005 IGSI
 SAP Sharenet 2005

Goods Movements and Control

 Material receipts and issues not always recorded

accurately in PoS
 Replicating PoS data without validation could
cause negative inventory in SAP
 Inventory mis-statement
 Profit mis-statement
 Internal reporting and controlling ... ???

© 2005 IGSI
 SAP Sharenet 2005

Control required for ...

 ... loss of stock in transit due to pilferage &c.

 ... goods received by location other than intended
receiver
 ... multiple despatches against the same
document
 ... error in document (stock in document incorrect)
 ... error in document reference for receipt and
 ... combination of errors

© 2005 IGSI
 SAP Sharenet 2005

Obvious procedures ... ... but oops!!!

 Isolate data receipts from > Updates in SAP need to be

PoS as near “online” as
possible
 Validate and correct PoS
data

 Upload corrected data to > Data validation and

SAP correction could take
longer than a day

© 2005 IGSI
 SAP Sharenet 2005

The system layout ...

C
O D D
N I I A A
S N N T T
O T T A A
L E E
I R R
F F U U
D
A A P P
A
C C L D
T
E E O A
I
A T
O
D E
N
© 2005 IGSI
 SAP Sharenet 2005

The answer in Movement Type 561 ...

 Hold PoS data in a data staging zone

 Validate and identify conflicts with data in SAP
 Create or eliminate stock in SAP with an audit
trail: hold this in a “Stock Control” G/L account
 Clear the G/L account with physically verified
store data

© 2005 IGSI
 SAP Sharenet 2005

How it works

 Store stock shortages/excesses created as

“Control” stock and held in a Z-table
 Entries in Z-table cross-referenced to FI
documents in “Stock Control” G/L account
 Z-table and “Stock Control” G/L account cleared
on reconciliation

© 2005 IGSI
 SAP Sharenet 2005

Where it is working ...

 Madura Garments ... 200+ retailers and 1500+

customers with 5 distribution centres
 Central PoS consolidation
 Entire enhancement in a single SAP transaction
code
 4 people and a Stock Controller manage
reconciliation of 60,000+ pieces a month

© 2005 IGSI
 SAP Sharenet 2005

Screen 1: PoS Interface

 Update SAP stock movement transactions

 Clear stock movement control table entries
 Data downloads for Consol
 Data uploads from Consol
 Data updates on SAP
 Consignment Stock Control A/c reconciliation

© 2005 IGSI
 SAP Sharenet 2005

Screen 2: Data Download for PoS

 Date from which data to be transferred: ______

 Download path on local PC: __________
 Files to be created (Check-boxes)
 Size category master
 Valid brand/product combinations maste
 Colour category master
 ... ...

© 2005 IGSI
 SAP Sharenet 2005

Screen 3: Upload from PoS

Upload path on local PC: _________

o Close stock in transit positions
Update stock transaction discrepancies
Create stock in transit positions
o Update billing detail transactions
o Update billing header transactions
o Update pay-in slip data

© 2005 IGSI
 SAP Sharenet 2005

Screen 4: Update SAP

o Create consignment return orders

o Create and post return deliveries
o Create and post credit memos
o Carry out stock balancing for goods transactions
o Post discrepant goods movement transactions (GR/GI)
o Post normal goods movement transactions
o Carry out stock balancing for sales transactions
o Post discrepant goods movement transactions (Sales)
o Create consignment issue orders
o Create and post outbound deliveries
o Create and post billing documents
o Create FI documents for third-party transactions
o Re-post receivables (Cash/Credit Card/Privilege Card)
o Park FI documents for pay-in slip data

© 2005 IGSI
 SAP Sharenet 2005

Screen 5: Reports & Control

 Upload/update status report

 Sales report
 Goods movements report
 Discounts and deductions report
 Goods movements reconciliation
 Sales and returns reconciliation

© 2005 IGSI
 SAP Sharenet 2005

Appendix

 Consignment Customers
 Plants
 Sales and Returns Documents
 Movement Types

Movement types &

more ...

© 2005 IGSI