What is markdown rule in SAP IS-R - SAP for Retail?

SAP Term: markdown rule

• Component: IS-R

• Component Name: SAP for Retail

• Description: Retail A markdown rule contains planning data relating to a specific period for: changes in the sales price of a material in relation to the original price percentage share of the total sales quantity When creating a markdown plan, you can use markdown rules to calculate the planned prices and quantities. A markdown rule consists of several phases periods: &EXAMPLE& Phase 1 starting situation Sales price 100%, planned sales quantity 50% Phase 2 after 60 days Price reduced to 75%, planned sales quantity 30% Phase 3 after 90 days Price reduced to 50%, planned sales quantity 10% Phase 4 after 120 days Price reduced to 30%, planned sales quantity 5%

Smart SAP Assistant

• Key Concepts: 
  A markdown rule in IS-R SAP for Retail is a pricing rule that allows retailers to reduce the price of an item or group of items. This type of rule is used to increase sales and reduce inventory levels. It can be applied to a single item, a group of items, or an entire store. The markdown rule can be set up to apply discounts at certain times or on certain days. 
  
  How to use it: 
  To set up a markdown rule in IS-R SAP for Retail, retailers must first define the criteria for the rule. This includes the type of discount (percentage or fixed amount), the start and end dates, and any other conditions that must be met for the rule to apply. Once the criteria have been defined, retailers can then create the markdown rule and assign it to the appropriate items or groups of items. 
  
  Tips & Tricks: 
  When setting up a markdown rule in IS-R SAP for Retail, it is important to consider how often the discount should be applied and how long it should last. It is also important to consider how the discount will affect other pricing rules that may already be in place. 
  
  Related Information: 
  Markdown rules are just one type of pricing rule available in IS-R SAP for Retail. Other types of pricing rules include promotional pricing, volume discounts, and customer-specific discounts.