IBP Promotions Sales Lift Elimination Preprocessing Step

[carlos_perez8]

Dear all,

We want to use the Promotions Sales Lift Elimination Preprocessing Step in a forecast model that is run at monthly level. One of the inputs is the Consensus Forecast defined as “The key figure representing the mid- or long-term forecast, which was calculated without the promotions taken into account. In the process of promotion sales lift elimination, it’s used as the baseline when the promotion uplifts are subtracted from the sales history”.

Does anyone has information exactly on why this key figure is mandatory? There is no much information on sap help or learning hub about the internal process on how this is history cleansing is done.

We understand that in a mature system you may already have your past baseline forecast, but what is expected when running the system for the first time?

Thanks and Regards,

[areadyplayer]

Dear Ganesh,

The key figure is mandatory because the calculation for Sales Lift is as follows:

Sales lift = Sales History - Consensus Forecast (Baseline).

I think for the question raised, the thinking should be how can we deduct the Consensus Forecast, if it wasn't tracked in the past and this way it becomes a business problem with business solutions.

Option 1. If Sales lift and Sales History are known, than Consensus Forecast can be calculated.

Option 2. If the customer hasn't tracked in the past their promotions, than it's a complete new process. Which means that Consensus Forecast = Sales History, so for the past the Sales lift was 0.

With Promotions Sales Lift Elimination is important to keep track of the promotions, if the customer is not doing it, than the recomandation will be to use the Outlier Correction.

Hope that helps.

KR,

Andrei

[former_member859984]

Dear Ganesh,

A deficiency in your master data may cause this application to not work successfully.

Please check the master data to be entered here.

https://help.sap.com/docs/SAP_INTEGRATED_BUSINESS_PLANNING/feae3cea3cc549aaa9d9de7d363a83e6/66be4056...

Regards,

İbrahim

[vincentverheyen]

Dear carlos.perez8,

Please note that there is an article on SAP Help Portal (https://help.sap.com/viewer/feae3cea3cc549aaa9d9de7d363a83e6/2202/en-US/bd211c56e833692de10000000a4450e5.html) which outlines the process steps taken by the system internally in order to execute Promotion Sales Lift Elimination:

1. Identifies outliers in the sales history key figure that you selected as the input for the algorithm. The outlier detection logic is the same as the one used by the outlier correction algorithm, while the multiplier may be different;
2. It identifies sales lifts caused by promotions in the sales history key figure that you selected as the input for the algorithm;
3. It searches for correlations between the two types of input, thus identifying the periods when the outliers were caused by promotions;
4. It eliminates values from the historical periods in which a correlation between outlier and promotion was identified;
5. It looks for the closest matches to adjust the values proportionally whenever there’s no exact correlation between the promotion sales lifts and the outliers;
6. It stores the cleansed values of the sales history in the output key figure.

When using the SAP IBP Fiori app "Manage Forecast Model", when creating a New Forecast Model, you will see that the 2 most important key figures for this preprocessing step "Promotion Sales Lift Elimination" are:

• Sales History; and
• Planned Sales Lifts

We can extract a brief overview of these key figures from the SAP Help Portal article:

Sales History: The key figure storing the sales history (usually the confirmed or delivered quantities) from which you want to eliminate the outliers associated with promotion sales lifts. It should be the same as the key figure selected as the main input for forecasting steps in your forecast model.

Planned Sales Lifts: The key figure used to store planned or expected substantial increases in the sales that were caused by promotional activities. The data for promotion sales lifts can be retrieved from an external trade promotion management system with the help of data integration jobs. For more information, see Data Integration Jobs (https://help.sap.com/viewer/da797ae2bf6246d58abd417f24915d55/2202/en-US/563b9657443f6b10e10000000a441470.html).

So, to summarize, one is able to still import both data for the Sales History, as well as data for the Planned Sales Lift, before running your SAP IBP forecast model for the first time.

[javier_lorente]

Hello Vincent,

I understand the steps, but in my case when I execute the preprocessing, the algorithm delete my data in the period that I have the promotion:

The period and quantities of promotion:

Why does the algorithm replace values with 0 instead of replace with the Deliverd Qty Adjusted - Promotion Uplift or with the mean ?

Thanks in advanced.

Regargs,

J. Lorente

[former_member859110]

Hello Javier,

I too came across the same situation, Please let me know if you have solved the issue..

Thanks in advance.

with regards,

Ganesh.