What is SAP IS Retail ?

In this post, we will examine the architecture and ideas underlying SAP IS Retail’s architecture. There are several sub procedures in SAP IS Retail. today we well discuss about What is SAP IS Retail and Sap In Retail Industry,SAP IS Retail Components

What is SAP IS Retail

SAP provides the Retail solution which is SAP ISR, It play an important role in the retail industry. It plays a very important role in day to day operations, and increasing sales. SAP IS Retail solution stores and analyze all the information related with retailer. SAP IS Retail solution ensure proper inventory management, accurate costing, and effective customer relationship management.

What is SAP IS Retail?

SAP IS Retail Or SAP ISR Stands For SAP Industry Specific Retail Solution For Business And Retail Industry(Sap In Retail Industry). SAP ISR Is Completely Integrated ERP Solution Specially Designed For Retail Industry By SAP.

SAP provides a specialized ERP(Enterprise Resource Planning) solution for retail and commercial industries that are fully integrated. SAP IS Retail is a sophisticated ERP system that is integrated. We can map business scenarios, processes, and operations to the SAP IS Retail solution. Retail-specific business scenarios, business processes, and business operations can be mapped to the solution.

SAP provides a comprehensive suite of retail solution which is an all in one retailing system,

SAP Retail provides the business processes required for competitive assortment strategies, various retail formats, and ECR-driven logistics and delivery. It provides all the functions necessary to mimic enterprise operations in a retail setting.

The SAP Retail application sought to replicate the entire “Value Chain,” or the logistical pipelines linking consumers to vendors. Retailers may optimism a wide range of business processes and control checks in order to manage the flow of products and information between vendors, retailers, and consumers.

Business process area “Retailing” oversees the acquisition, storage, distribution, and sale of items. SAP Retail can be used in either wholesale or retail settings. The Retail Information System (RIS) tracks the movement of goods across the supply chain, allowing it to be planned, monitored, and tracked. The following processes are included in SAP IS Retail.

  • Sales Price Calculation
  • Promotion Management
  • Allocation
  • Requirements Planning and Purchasing
  • Goods Receipt
  • Invoice Verification and Subsequent Settlement of End-Of-Period Arrangements
  • Warehouse Management
  • Picking and Delivery
  • Billing
  • Store Supply

The retailing procedures allow you to govern and coordinate the whole value chain, therefore allowing you to respond quickly to changes in consumer behavior. New trends, such as electronic commerce or ECR, infiltrate existing development cycles on a regular basis.

An SAP Retail system ensures that shops have a future-proof investment and can quickly adapt to a changing market, whether legal frameworks or business operations are involved. System limits do not impede your company’s growth, and you may seamlessly and quickly adapt real-world changes into the system.

Features of IS-Retail

When we talk about the SAP IS Retail, SAP provides some specific features in ISR which makes SAP ISR differ from all other ERP’s. SAP IS Retail (ISR) system functionality which is specially developed to cater to retailing companies and these are the some important features of SAP IS Retail (ISR).

  • Replenishment Planning,
  • Assortment Management,
  • Promotions,
  • Retail Pricing, and
  • Merchandise Categories.

SAP IS Retail Components

SAP IS Retail components can be divided into following categories.

  • Organizational Structure
  • Master Data
  • Core Business Processes
  • Data Distribution
  • Information Systems

Organizational Structure

Organizational Structure is the enterprise structure and it is use for all Organization Units which we use for functioning the retail process or enterprise process. The common enterprise structures are:

  • Company Code,
  • Controlling Area,
  • Plant (Site) – Can be a distribution center or a store,
  • Storage Location,
  • Purchasing Organization,
  • Purchasing Group,
  • Sales Organization,
  • Distribution Channel,
  • Division, and
  • Shipping Point for Distribution Center.

Master Data

Master data is the base of any transaction process in system, it is foundation unit of business process. Listing of article into each site is stored as master data, relation with vendor and company and customer with company is also stored as master data.

SAP IS Retail has very extensive Master Data which create the base of transaction processing. The most important Master Data are:

  • Site Master,
  • Article Master or Service Master (Article or Service is referred to as the product you sell in the retail business),
  • European Article Management (EAN for bar code management) and is a part of Article Master
  • Merchandise Category,
  • Merchandise hierarchy ,
  • Vendor Master,
  • Customer Master.

Site Master

An SAP IS-Retail site is the most significant organizational unit because it serves as both a customer and a vendor based on its size category.

Article Master

Article master contains information of all products (materials, items) that business procures, manufactures, stores and sells. Articles are procured for a Distribution Center (Site) and from there articles are delivered to each individual stores or Point of sale system and to the external customers like wholesale, franchisee, and buyer seller .

Merchandise Category and Merchandise Category Hierarchy

Merchandise category helps to classify structure of all the items / materials / articles in an organizational unit which have similar expertise. Merchandise category is assigned to each and every articles, merchandise category is like to material group which we see in core ECC system. Merchandise categories is group of merchandise hierarchy.

Vendor Master

A vendor is an Accounts Payable master in financial term and from Materials Management Procurement point of view its a business partner from whom we procure goods or services for our organization unit or business process. Each Distribution center or warehouse (Site) is a vendor in SAP IS Retail solution.

Customer Master

Customer is a business partner of an organization unit. Customer is in both a financial master as well as in sales master. In financials, customer is Accounts receivable master or can be classified as debtors. Every site or distribution center is a customer in SAP IS Retail solution.


Assortment is very important proprietary master data. Assortment forms the heart of the SAP IS Retail system because Assortment is a logical object which has got the merchandise category and site as customer or user (a user in this case can be a retail-site).

Core Business Processes

In retailing business core business processes is all completed in our procure to pay process, business plans merchandise requirements or article determination based on demand or requirement for their distribution centers. This leads to place a purchase order to the vendor.

Now vendor delivers the merchandise or required articles ordered and it is recorded in the system as goods receipts against the purchase order. The results of this process increase the inventory in the distribution centers or warehouse can say site in retail system and at the same time increase in the value of the inventory along with a liability towards the vendor.

The invoices when received from vendor against the delivery of merchandise or articles are verified, any volume of discounts and rebates applied and payment released to the vendor.

The replenishment process of merchandise or article can be automated using Requirement Planning where by a purchase requisition created are automatically converted into Purchase orders.

In SAP IS Retail system shipping notifications are used by vendors to inform the delivery of articles and in the notification have details regarding the delivery date, time and quantity. An inbound delivery is entered for the shipping notification either manually or via EDI.

Information System

Information system is a reporting system which helps to collect, analyze and aggregate data that is relevant to retailing areas like purchasing, sales, inventory, point of sales (POS). SAP recommends retailers using SAP to use SAP business intelligence system to analyze data.

Process in SAP IS Retail

The Process includes in SAP IS Retail are:

  • Assortment Management
  • Calculating sales costs and prices
  • Managing promotion of goods and services
  • Purchasing and requirements Planning
  • Goods Receipt
  • Invoice Verification
  • Warehouse Management
  • Pick-up and Delivery
  • Billing
  • Store Supply

FAQ: SAP IS Retail

is Listing Mandatory in SAP Retail?

Yes Listing is mandatory in SAP IS Retail Solution, You can’t avoid listing. After listing of article you can start transaction of article on particular listed site.
Listing essence of SAP Retail Master data appears at the intersection of products and locations. We also call them articles and sites, or materials and plants in ECC core system.

Is Material Master differ from Article Master?

Yes Material master is used in core ECC system in SAP MM but in SAP IS Retail solution we will use Article Master.
SAP IS Retail uses Transaction Code for Article Master are:
MM41 Create Article
MM42 Change Article
MM43 Display Article
Material Master uses Transaction Codes are:
MM01 Create Material
MM02 Change Material
MM03 Display Material.

What is the difference between listing and maintained article to site?

An article being extended to a Site and an Article being Listed to the Site is completely different thing.
Listing is authorization and listing condition of article for specific site, Listed data stored in table WLK1. Listing conditions are time bound. Listing condition can be deleted as master data.
Article extended to Site is stored as master data in table MARC, You can not delete the records of MARC.

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