Reliability of proportional factor

[Former Member]

Hi Gurus,

Is there a best practice to ensure the quality and the reliability of the proportional factors. i know historical data forms the basis for the calculation of the prop factrs but how to ensure that the calculated factors and reliable..is there any best practice exists to choose the historical data periods or any other for the same...

pls share your ideas..:)

[Former Member]

Thanks

[Former Member]

5,

Historical data is only one way to calculate proportional factors. By aggregating via an additional key figure, there is no limitation. One can use any basis for calculation. I have seen long and complex process chains used to calculate these additional key figures, and populate them into a planning book.

SAP standard key figure aggregation methods don't really need much quality control, it is well understood how they work, and if you discover any technical errors, they will be corrected by SAP support. You only need to validate that the logic of the aggregation method that you have selected meets your business requirements.

For Key figure PF calculation methods that are created by your company, only you and your company can validate their reliability. I have never seen a best practice that will assess risk for self-made logic. Hopefully your company will discover any problems during the testing stages (unit, integration, acceptance). The more doubt you have, and the more catastrophic the effect of inaccuracies, the more extensive should be the suite of test scenarios you execute.

As with any critical process, you can always apply standard FMEA analyses to the problem if you want to determine how much effort you should put into this. Ask your quality department about setting up an analysis for you.

http://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis

Best Regards,

DB49

[Former Member]

Hi,

Further to the above detailed reply, I would like to add as below.

we had problems not in application functionality, but sometimes in selections which were used in calculating the PF . In one case, we used to calculate proportional factors location wise based on sales history and we used to tally the calcualtion of Pfoccasionally, by simple check of checking the value of PF aggregated at the location level.

Regards

Datta

[Former Member]

Hi

The SAP APO help on Generation of Prop factors would be helpful

http://help.sap.com/saphelp_scm50/helpdata/en/66/29fb672fbe11d398240000e8a49608/content.htm

Also read the link from there on the disaggregation

Proportional factors are used as a common base, in order to do realistic disaggregation in cases where you dont have data for all levels. They are generated based on historical (or in some cases planning) data

and stored in the KF for prop factors- APODPDANT

In planning area setuyp you set some KF to disaggregate based on another KF or APODPDANT.

you dont have to generate prop factors if you dont have I or P in your KF aggregation type.

Thanks

Amol