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
MurugesanA@cloneskills.com 08/01/2013 joesaran@gmail.com, (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 , Info@CloneSkills.com , 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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1.1Populate 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:
This description is a preliminary version and not subject to a license agreement or
any other agreement with SAP®. This document contains only intended strategies,
developments, and functionalities of the SAP product and is not intended to be
binding upon SAP to any particular course of business, product strategy, and/or
development. Please note that this preview is subject to change and may be changed
by SAP at any time without notice.
SAP/We assume no responsibility for errors or omissions in this document. SAP/We
does not warrant the accuracy or completeness of the information, text, graphics,
links, or other items contained within this material. This preview is provided without
a warranty of any kind, either express or implied, including but not limited to the
implied warranties of merchantability, fitness for a particular purpose, or non-
infringement.
SAP/We shall have no liability for damages of any kind including without limitation
direct, special, indirect, or consequential damages that may result from the use of
these materials. This limitation shall not apply in cases of intent or gross negligence.
The statutory liability for personal injury and defective products is not affected.

_______________________________________________________________________________
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
MurugesanA@cloneskills.com joesaran@gmail.com, (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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