QUESTION POSED ON: 16 April 2003 In our business, an important part of getting country manager's approval of a demand plan is showing the revenue impact of the new suggested demand plan. We currently do this process outside of the demand planning book by extracting demand quantities and applying forecasted selling prices to generate a revenue estimate. Do you know of better ways to combine the demand plan with selling prices to show revenue?
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What I have seen is that many-a-times this process is in fact kept separate just from the point of view that it can get as complicated as you want it to become. Assuming that it is kept simple - I think we can do it - the simple process could be designed as follows:
1) Maintain 'Price' (in the key figure) at the level where these financial calculations are performed - specific level can be maintained via use of an aggregate. Such a key figure has the calculation type on it as 'N' - No disaggregation. This is to avoid the 'Price' key figure from rolling up or rolling down at different level - nothing wrong with that but looking at that key figure can be misleading.
2) Once the 'Price' is there, the key figure in which the calculation (macro used for the calculation) is dumped can either be a key figure in which data can be viewed at the specific level at which the price was maintained - or can be allowed to roll with the level i.e. either a Type 'N' or 'P' key figure - whichever makes business sense.
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