Franchisee Model in SAP Retail

[Former Member]

Dear All,

We are working on a franchisee scenario in SAP Retail,

Our requirement is, the Franchisee has to pay 10% of the total sales value to the Franchisor(Parent company),

How this can be captured in SAP?

Please help!

Regards,

Kevin Easaw

[amit_tunara · Accepted solution]

Hi Kevin,

This can be handled by having a separate condition type for 10% value.

Before I answer your question, let me tell you that I am assuming the sales you are receiving from POS and you need to keep aside this 10% value to pay later to your parent company. If my assumption is wrong then you need to provide some more detail about your business process.

When the POS sales in coming as in Inbound to SAP, we configure the calculation schema for Inbound sales and assign the same to your inbound profile. In standard POS000 pricing procedure is used to process the inbound sale.

You need to modify the pricing procedure and add your condition type for 10% value. The basis for the percentage calculation in PN10 condition type which is having total sales value in inbound IDoc. This way you can take 10% separate for parent company. If the payment to parent company is periodic, then make sure you are accruing the value of condition into a Balance sheet account which can be knocked off by FI when the payment is made. This way from Finance side, you can keep the track outstanding and paid commission to parent company. This solution required very less effort and you are done.

To create the site as a franchisee, in SAP IS Retail we have standard Site profile 0150. So using this profile, you create the site to represent the site as a franchisee.

I hope this will give you enough idea to start with.

Let us know if you need any other information.

Reward point if the answer is useful.

Regards,

Amit

[Former Member]

Hi Amit,

Thanks for the reply,

We are capturing the sales through the POS Inbound only, As you said, we thought of taking the franchisor commission in a particular G/L account through the accruals.

But the worry is,

1)how the payment will be settled to the franchisor,??

2)Whether the franchisor should be created as a vendor in SAP,??

3)Is it Possible to capture the entire scenario through Compensation Management(Tcode-WCOCO)??

Thanks in Advance!!

Regards,

Kevin Easaw

[amit_tunara]

Hi Kevin,

I do not have any idea on compensation management.

But for your points I can say, we use the same concept for freight which is being captured through a customized condition. There is a Freight vendor. So for you also you can create a vendor and settlement will be done by FI.

When the first time this condition is coming, go to pricing procedure and select your condition and click on Details button, You will find a field called Vendor. You need to maintain this once, next time system will take automatically.

Regards,

Amit

[Former Member]

Hi Amit,

Thanks for the reply,

Please clarify on the below points,

1)How we will capture the Franchisor name in the condition type,

( We are capturing the sales through the POS Simultation(WPUK), there as you know,we will be able to give the customer name only( I mean the store),

So is there any solution??

Regards,

Kevin

[amit_tunara]

Hi Kevin,

First of all, a condition type used for capturing the % cannot have the name. Secondly, as I have suggested above to create a vendor in which you are anyway putting the name and other details.

If you still want to give something on transaction level, in WPUK screen, you enter Store ID and Transaction date and click on "Sales As per Receipts" button. In the detail screen there is a Reference no field for each item. This field is used for information purpose only, here you can mention the name. The field can have 15 characters.

I hope this will help you.

Regards,

Amit

[Former Member]

Hi Amit,

The reference field that you mentioned is for information purpose only..and also it pointing to a structure..I dont think even if you give a name in the reference field, it would get reflected in the condition type..

(Sorry-Here I have given supplying vendor-treat it as franchisor..this picture is w.r.to another scenario)

Any idea on this solution

Regards,

Kevin Easaw

[amit_tunara]

Hi Kevin,

Yes, I have already mentioned that Name cannot be specified in Condition type. Just for reference purpose you can put value in highlighted field.

Alternatively, You can have an access sequence for the condition with a combination of Vendor / Article. Then maintain the Vendor and Article wise condition record. So, with this, when the condition is populated in pricing procedure you can see vendor name in Pricing analysis screen what you have given.

Also note than first time when I replied I mentioned that you have to put a Vendor yourself for your condition, from next time it will automatically take the vendor number.

I will try in my system and update you with findings. Meanwhile you can try the options given here.

If my answer is not in line with your question, can you please tell me what is the purpose of putting vendor name in condition type and which process you are running.

Regards,

Amit

[Former Member]

Hi Amit,

Thanks for the reply,

Can you give some details on the below comment (Copied from your Post)

"Also note than first time when I replied I mentioned that you have to put a Vendor yourself for your condition, from next time it will automatically take the vendor number."

I have maintained the condition record in VK11 with respect to vendor and article. The same has been mapped in pricing procedure, As you can see in the picture i have given earlier, since the I am not able to input the vendor in the POS simulation, the condition record is not getting populated in the pricing condition tab in the billing document..

Regards

Kevin Easaw

[amit_tunara]

Hi Kevin,

If your condition type has Vendor as one of the element in Access sequence, you can provide the default value for vendor for that condition type.

When you maintain the condition record using VK11, enter required elements for condition type and provide value. Now select your condition record in VK11 screen and click on Details button on the top. Here in Control Block you will have a field at the bottom where you can provide 1 default vendor.

Alternatively you can assign a default value in Access sequence. Please see the below screen image.

Assign this access sequence to your condition type.

Also, in Condition type definition, set Manual entries field to C (Manual entry has a priority).

If you have already maintained condition type, you assign the default vendor using VK12.

Let us know your findings and result.

Regards,

Amit

[amit_tunara]

Hi Kevin,

Just to add to my previous reply, I am not sure but the Init Value check box may help so, try with that checked and unchecked.

Just to try.

Regards,

Amit