What is diversion in SAP LO-RFM - S/4HANA Retail & Fashion Management?

SAP Term: diversion

• Component: LO-RFM

• Component Name: S/4HANA Retail & Fashion Management

• Description: A process whereby the goods or part of the goods received from an internal or external supplier upon cancellation or quantity reduction are diverted to a distribution center DC, instead of shipping them directly to a customer.

Smart SAP Assistant

• Key Concepts: 
  Diversion is a feature in SAP S/4HANA Retail & Fashion Management (LO-RFM) that allows retailers to transfer goods from one store to another. This feature is used when a store has an excess of goods that it cannot sell, or when another store needs additional stock. The goods are transferred from the source store to the destination store, and the source store is compensated for the goods.
  
  How to Use It: 
  To use diversion in SAP S/4HANA Retail & Fashion Management, retailers must first set up a diversion agreement between the source and destination stores. This agreement outlines the terms of the transfer, including the compensation for the source store. Once the agreement is in place, retailers can initiate a diversion request from the source store. The request will be sent to the destination store for approval. Once approved, the goods will be transferred from the source store to the destination store.
  
  Tips & Tricks: 
  When setting up a diversion agreement, it is important to ensure that both stores are in agreement on all terms of the transfer. Additionally, retailers should ensure that they have sufficient stock at both stores before initiating a diversion request. This will help to ensure that there are no delays in fulfilling customer orders.
  
  Related Information: 
  For more information on diversion in SAP S/4HANA Retail & Fashion Management, please refer to SAP Help Portal or contact your local SAP representative.