SAP Retail Overview

SAP Retail is a completely integrated retailing system. It maps the complete set of business
processes required for competitive assortment strategies, different retail formats, and ECR-
driven logistics and distribution. It provides all the functions necessary for modeling business
processes in a retail company.

With SAP Retail, SAP has endeavored to model the full "Value Chain," all the links in the
logistics pipeline from consumer to vendor. Retailers can thus optimize the whole array of
business processes and control checks in managing the flow of merchandise and information
among vendors, retailers and consumers.

The business process area "Retailing" comprises the procurement, storage, distribution, and
sale of merchandise. SAP Retail supports both wholesale and retail scenarios.

The Retail Information System (RIS) enables goods movements to be planned, monitored and
tracked throughout the whole supply chain.

The key retailing processes include:

Assortment Management
 Sales Price Calculation

Promotion Management

Allocation

Requirements Planning and Purchasing

Goods Receipt

Invoice Verification and Subsequent Settlement of End-Of-Period Arrangements

Warehouse Management

Picking and Delivery

Billing

Store Supply

The retailing processes enable you to control and coordinate the whole value chain, and thus
react swiftly to changes in consumer behavior.

New trends, such as electronic commerce or ECR, flow continually into ongoing development
cycles. SAP Retail also allows for changes in legal structures or business practices
franchising, for example. This ensures that retailers not only have a future-proof investment but
are able to adapt swiftly to a changing market. The growth of your company is not hampered by
system constraints, and you can incorporate changes in the real world smoothly and efficiently
into the system.

Areas of Application of SAP Retail

SAP Retail integrates all the key areas of retailing and wholesaling, all the various stages in the
supply chain and takes into account the differing requirements of different types of goods, from
food and dairy to fashion and hardlines. It provides you with the tools necessary to model all the
business processes in the retail sector.
Retail Switch
Use
The requirements placed by retailers on IT solutions in the areas of planning
and distribution, in particular, differ from the requirements of industrial
companies with their production-oriented targets. When you are installing the
SAP R/3 component or when you upgrade to a new release you can configure
your system as SAP Retail. You do this by setting the "retail switch".
Integration
Only after you have configured your SAP R/3 system as an SAP Retail system
can you make use of all the functions in SAP for Retail, SAPs retail
solution. Configuring your system in this way and using specific Retail
functions may restrict your use of other R/3 functions from other areas. You
cannot use all existing functions fully at the same time. The reason for this is
that the article master for an SAP Retail-configured SAP R/3 system differs
from the article master of a non-SAP Retail-configured SAP R/3 system.

Your SAP Retail system uses either standard terms or Retail terms
(for more information, see Retail Terminology). However, for the sake
of clarity this part of the documentation uses the term material for
master data records that were created with maintenance
transactions in the SAP R/3 system (manufacturing system),
 and article for master data records that were created using
maintenance transactions from SAP Retail.
Prerequisites
You should only configure SAP R/3 as SAP Retail if you have a valid SAP
Retail license.

If you configure your system as an SAP Retail system, you cannot

reverse the setting later.
Activities
The Installation Guide and the Upgrade Guide for SAP R/3 specify how to
configure your system as an SAP Retail system.
You can use the program GETSYSDEF to check how your SAP R/3 system
has been configured.

Retail Terminology
SAP R/3 is developed and delivered using standard SAP terminology. In the
retail industry, however, some terms are used in some languages that differ
from the standard terms used in the standard SAP system. SAP therefore
offers customers working in these languages a tool for replacing the standard
terms used in R/3, with the terms specific to the retail industry throughout the
entire user interface. This tool is used for what is referred to as Short Text
Replacement.
The SAP Retail documentation is based on the assumption that you have
replaced the short texts in your SAP systems. When you follow links from the
Retail documentation to other parts of the SAP documentation, note that
standard SAP terminology is used and not the terms specific to the retail
industry.
The following terms differ depending on where you are in the documentation:
SAP Retail Other parts of the documentation

Article Material

Site Plant

Logistics calendar Factory calendar

For more information on the languages and components of SAP R/3 in which
short text conversion is available, see the SAP Service Marketplace (
http://service.sap.com/retail) under Expert Knowledge Corner Across
Components Setting up SAP Retail: Retail Short Text Replacement.

Terminology is only replaced in the user interface. In certain

situations, for example, in the F1 help, terms such
as Material instead of Article and Plant instead of Site appear in this
version of the SAP system. Standard SAP terminology is used, in
particular, in the Implementation Guide (IMG).
For information on how to carry out short text replacement, see the
documentation in BC Short Text Replacement: Carrying Out Short Text
Replacement.

Organizational Structure: Example

The following example illustrates how the structure of a company could be reproduced in
SAP Retail and explains what the various organizational units mean. The fictitious company has
several subsidiaries, which themselves comprise several distribution chains.

Organizational Structure: Example Graphic

The organizational structure of the company in the example graphic would be modeled in
SAP Retail as follows:

Central purchasing

The highest element in the whole corporate group hierarchy is the client. All the
organizational units in a client are subject to the same control mechanisms. Data valid
across the whole corporate group is stored at client level. In the example, the central
purchasing department of the company is located in the SAP Retail structure at client
level.
 Local purchasing

Local purchasing departments are assigned to central purchasing. Each local

purchasing department is responsible for a different distribution chain. Each local
purchasing department corresponds to a company code or a purchasing organization in
SAP Retail. Specific purchasing activities are assigned to individual purchasing groups.

Distribution chains

Local purchasing procures merchandise for different distribution chains centrally.

Distribution chains in SAP Retail are a combination of sales organization and distribution
channel. The sales organizations are assigned to different company codes.

Distribution center, Store

Distribution chains consist of distribution centers (DC) and stores. The generic term for
DCs and stores in SAP Retail is "site."

Sites are also managed as customers in the system.

Storage location, Storage section, Department

Sites can also be seen as a combination of one or more locations in close proximity to
each other where stocks of merchandise can be found (examples are storage locations
and storage sections). Stores can also be subdivided into departments, which in turn can
be understood as cost centers. Each department can be assigned a receiving point.

Customer

The value chain concludes with the customer or consumer. If the customer is recorded in
the system (and is therefore an identifiable customer), natural persons can be defined in
the customer master as the contact persons at that customer.

Article Master
- Article Category
- Single Articles
- Sales Set
- General Articles
 - Pre-pack Articles
- Display Articles
- Merchandise group Articles
- Reference Articles
- Value only Articles

Assortment Planning
- Site Assortments
- General Assortments
- Assortments Listing
- Assortment Listing Procedure
- Listing Conditions
Transaction Code * *Transaction Text

R11 Merchandise Related Master Data

SU3 Maintain User Profile

MM41 Create Article

MM42 Chang Article

MM43 Display Article

WSL11 Evaluation of listing condition

WSO7 Display Assortment Module Assignment to Assortment

MASS_MARC Logistic/replenishment Mass Maintenance

REFSITE Reference Sites Mangement

WSL1 Listing conditions

MR21 Price Change

MB1C Enter Other Goods Receipts

MB1B Enter Transfer Posting

MB03 Display Transfer Posting

RWBE Stock Overview

R12 Retail Pricing

SU3 Maintain User Profile

VKP5 Create Price Calculation

WPMA Direct Request For POS Outbound

WMB1 Create Price Entry

WKK1 Create Market-basket Price Calculation

SPRO Assign Price Point Group to Org. Level/Merchandise Category

WVA3 Display VKP Calcultion Sur

WVA7 Display VKP Calcultion Sur

WEV3 Display Ret. Markup SP Ca

MEKE Conditions By Vendor

ME21N Create Purchase Order

V-61 Create Customer Discount Condition

V-64 Display Customer Discount

VK13 Display Condition Records

V/LD Execute Pricing Report

VA01 Create Sales Order

MEI4 Create Automatic Document worklist

BD22 Delete Change Pointers

WVN0 Generate Pricing Worklist

WVN1 Release Worklist

R13 Assortment Management

SU3 Maintain User Profile

WSOA3 Assortment Display

WSOA1 Assortment Create

WSOA2 Assortment Change

WSOA6 Assortment Assignment Tool

REFSITE Reference Sites Mangement

WSL5 Modules In Assortment

MM41 Create Article

MM42 Chang Article

WSL1 Listing conditions

WSP4 Create Individual Listing Material / Assortment

WSO1 Assortment Module Create

WSO5 Maintain Assortment Module assignment to Assortment