Tax benefit in SAP IBP Time-Series Optimizer

[victor_hugodebastosleo]

Hi Experts!

Let’s consider the following scenario:

Location A to Customer A: Customer transportation cost: 1000

Location B to Customer A: Customer transportation cost: 2000

For some tax benefit, we must consider that:

Location A to Customer A: Customer tax benefit: 500

Location B to Customer A: Customer tax benefit: 2200

So, the total cost should be:

Location A to Customer A: Customer transportation cost – Customer tax benefit = 500 (We still have a positive cost supplying from Location A)

Location B to Customer A: Customer transportation cost – Customer tax benefit = -200 (We have a financial advantage supplying from Location B)

The point is:

The optimizer does not allow us to use ‘negative’ cost for Customer Transportation Cost or Transportation Cost.

Considering that Non Delivery Cost is not “source dependent”, I don’t know if there is another way out to have this situation covered by optimizer.

Any suggestion?

Thanks a lot!

Victor Leao

[carsten_schumm · Accepted solution]

Hello Victor,

it is somewhat strange to have a transport (or another decision) with negative costs. As a workaround you could shift your cost model with the negative value of -200. I.e.
transport costs from location A to customer A would become 500 + 200 = 700
transport costs from location B to customer A would become -200 + 200 = 0
non-delivery costs at customer A should also be raised (as well as the according sourcing costs). For simplicity you could also shift all the other costs. E.g. even with a higher offset to avoid changes in the future.

Kind regards, Carsten

[victor_hugodebastosleo · Accepted solution]

Hi Carsten!

Thank you for your attention!

Yes! It is very strange to have a negative transportation cost.

The point is: the revenue advantage is based not only in the customer (non delivery cost). It depends on the source location.

I think the only way is to shift the costs as you mentioned. It was something already proposed, but the client seems not to be confortable...

Anyways, thank you for your help!

Best regards, Victor