What is planned markup in SAP IS-R - SAP for Retail?

SAP Term: planned markup

• Component: IS-R

• Component Name: SAP for Retail

• Description: Retail A planned markup is an amount added to the delivered price of a material in order to determine the sales price. This amount is in the form of a percentage of the delivered price. planned markup = x % delivered price delivered price + planned markup = sales price If the price including markup results in an invalid price point, the price will be rounded to the next valid price point and the markup will be adjusted accordingly. This adjusted markup is displayed as the actual markup in the calculation table.

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• Key Concepts: 
  Planned markup is a feature of the IS-R SAP for Retail system that allows retailers to set a target margin for each item in their inventory. This margin is calculated as a percentage of the item's cost price and is used to determine the selling price of the item. The planned markup feature helps retailers to ensure that they are making a profit on each item they sell. 
  
  How to use it: 
  To use the planned markup feature, retailers must first enter the cost price of each item in their inventory into the system. Once this is done, they can then set a target margin for each item. This margin will be used to calculate the selling price of the item. The system will then automatically adjust the selling price of the item based on changes in the cost price or target margin. 
  
  Tips & Tricks: 
  When setting a target margin for an item, it is important to consider both the cost price and the expected demand for the item. Setting a higher target margin may result in higher profits, but it may also reduce demand for the item if it becomes too expensive. 
  
  Related Information: 
  The planned markup feature is just one of many features available in IS-R SAP for Retail. Other features include inventory management, pricing optimization, and customer loyalty programs. All of these features can help retailers maximize their profits and improve customer satisfaction.