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Forward Coverage

Hi,

I have been trying to figure out the formula used to calculate the Forward coverage using the Inventory and Forecast cast Data. Could any one throw some light on the logic

Header 1JanFebMarchAprilMayJuneJulyAugustSep
Forecast924872904876893880851890835
Inventory343638014251337433473930394539183533
Forward coverage3.944334444

Thanks,

Vinay

replied

Hi Vinay

Your understanding is correct. You can have a single key figure for Inventory - showing actual inventory till current period and projected for future periods or separate depending on your needs.

I have not tried it but I guess you can use BEx Input ready query as well instead of Analysis Office for MS office. This stock coverage option is available since BW7.4

If you want to use ABAP to achieve the same, you have to configure the logic. The logic explanation is provided in my document shared by Sai P.

To clarify:

Let us consider Jan in your example. You have forward coverage which means you will start checking from next month onwards (Feb here - you can confirm this with your functional team).

Inventory = 3436 units

Units needed in Jan to satisfy Feb Forecast = 872 units

Units remaining at the end of Feb = 3436 - 872 = 2564 units

You need to keep checking like that till you run out of stock (inventory).

Stock at the end of Mar = 2564 - 904 = 1660 units

Stock at the end of Apr = 1660 - 876 = 784 units

Now Forecast in May = 893 units which is greater than available 784 units left at the end of Apr or beginning of May. Hence the coverage available in that month = 784/893 = 0.87 ~ 0.9 months

Total coverage is = Feb + Mar + Apr + 0.9 of May = 1+1+1+0.9 = 3.9 months of coverage.

It will be best to understand from your functional team if it is a straight forward stock coverage or if there is any additional logic involved.

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