Concession

Concession is a concept in which stores will allocate a space within their premise and allows branded retailers to sell their goods there. Retailer (Vendor) will settle the commission to stores (Customer) based on the revenue they generate from the premises.

Retailer (Vendor) will manage the goods as Customer Consignment.

Store (Customer) will manage the goods as Vendor Consignment.

The goods will be managed by retailer or by both. Stocks will be sold through store's POS.

To activate this concept, we need to create layout, layout modules, assortment and assortment modules.

Consignment

Its a standard concept used in all the business. Consignment is the term in which vendor will place their goods in customers place for sale. Vendors will not send invoice along with the goods. Vendor will send invoice or claim payment only when the customer sells it to consumer. Consignment is the concept in which the goods will be placed in a place but it will not be owned by the company B which owns the place. Goods will be owned by a different company A. Company B has the rights to sell it. After sold the goods company B will pay to company A as per the agreed terms and conditions.

Based on the view, the consignment is classified into 2 types:

1. Customer Consignment
2. Vendor Consignment

Based on the above paragraph, Company A will view this consignment as Customer Consignment. Company B will view this consignment as Vendor Consignment.

Customer Consignment:
Vendor will send goods to a customer's place with or without customer's PO. This stock will be handled in a special stock as 'W'. While delivering goods, vendor will not send invoice. Stocks will be still owned by vendor. Vendor will claim for the amount when the vendor consumes/sells to consumer.

Vendor Consignment:
Customer will raise purchase order with the item cateogory as 'K'. Based on that vendor will deliver goods. Customer will do goods receipt against vendor's delivery. During that time system will not post accounting document as it is still not owned by the customer. While consuming/selling, system will post the accounting document. So customer is liable to pay to vendor.

To use vendor consignment, user has to activate it through IMG -> Logistics General -> Retail Consignment Processing -> Activate Retail Consignment. Check the consignment active.

Retail Terminology

In the retail industry, some languages use terms that differ from standard terms. SAP offers customers working in these fields a tool for converting the standard terms on the user interfaces of the entire standard system to the terms specific to the retail industry. This technique is known as Short Text Replacement.

The documentation for SAP Retail is based on the assumption that you have replaced the short texts in your ECC system. When you follow links from the Retail documentation to other parts of the SAP documentation, however, note that standard SAP terminology is used.

SAP Retail	Other parts of the documentation
Article	Material
Site	Plant
Logistics calendar	Factory calendar

Link to read

Retail Business

Retail business involves logistics component from the core to end.

1. Raising Purchase Order to Vendor from DC/HO (MM - May or may not involve purchase requisition)
2. Vendor will deliver goods against the purchase order (SD and IM)
3. DC will do goods receipt (MM-IM)
4. DC/HO will do invoice verification with/without reference to Vendor's Invoice. (MM-IV)
5. HO will release the payment to Vendor (FI)
6. DC will dispatch goods to its retail stores with/without reference to STO. (SD-SH, MM-IM)
7. DC will dispatch goods to whole sale customer using Sales Order. (SD, IM)
8. Stores will do goods receipt (MM-IM)
9. Stores will sell the goods to customers/consumers (POS, SD, MM-IM)

Abbreviations:

FI - Finance
MM - Materials Management
SD - Sales and Distribution
IM - Inventory Management
IV - Invoice Verification
SH - Shipping
POS - Point Of Sale

Retai Components/Addons

These are the components provided by SAP for Retail business

SAP Retail
SAP Forecasting and Replenishment
SAP Demand Management
SAP Promotion Management
SAP Promotion Merchandising Layout
SAP Point-of-Sale
SAP Enterprise Point-of-Sale
SAP Fraud Watch
SAP Customer Analytics for Retail
SAP Workforce Management

SAP IS Retail

SAP for Retail gives retailers of all sizes the power they need to make the right decisions quickly and profitably – the power it takes to create shopping experiences that motivate their customers to return again and again.

SAP for Retail is an end-to-end set of solutions that supports demand-management, merchandise management and planning, store operations, and base finance and HR functions. With SAP for Retail, you get the help you need to better understand your business, anticipate your business needs, and inspire your customers, employees, and shareholders by delivering results.