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Converted for search and offline reading. Authoritative source: Oracle. Diagrams and some complex tables are simplified — check the PDF when in doubt.

Create Plan Step

To create the plan, the basic approach is to complete the following steps within the views provided in the Create Plan step:

1. The first time you begin the Create Plan step for a particular season, department, and channel, you will want to first review the Targets to understand the department totals you need to produce. The Targets are easily reviewed in the Review and Reconcile step > Review with Target sub-step.

Because you have not seeded any plans, the Wp versions of the plan will be irrelevant in the Target review. Another option you may prefer is to initially seed the entire department to generate the base Wp version for initial comparison against Targets.

2. Select the VAT rate and/or local currency rate for planning.

3. In Sales/Markdowns, plan the sales, markdowns, returns, and so on, you are projecting. Use forecasted sales and Ly as a guide.

4. Plan the required inventory and receipts.

5. Review the Gross Margin results.

Tip

As you build your plan, click Commit when you are satisfied with the intermediate state. This creates a permanent snapshot of the as-is state. This creates a restore point you can revert to if you go down a path that is unsatisfactory.

Seed Plan Sub-Step

The first action that the Merch Plan users complete when creating a new plan is to seed the plan with the Initialize view. This view is found in the Create Plans Step: Seed Plan.

Initialize View

With this view, you can choose to seed your plan with Last Year (LY), Forecast (Fcst), or Portfolio Optimization data to create a demand curve on which to spread the new plans initial targets. Or you can instead choose to not seed the plan, which allows you to create a plan that is not influenced by last year’s performance, forecast (plus last year’s performance), or Portfolio Optimization results.

When seeding the plan, you can choose which information is seeded. For instance, you can seed just one half or all halves in the task. You can also choose what locations and products to seed.

Select VAT Rate View

The VAT Rate chosen will be applied as the VAT rate throughout the Create Merch Plan task. Ly actuals include VAT therefore the VAT rate is used to calculate values excluding VAT.

After selecting a VAT rate, you can click Calculate to apply the rate. If you have not yet performed a seeding action, the rate will be applied at the time of seeding.

Set Alert Thresholds View

In this view, you set the threshold minimums (mins) and maximums (maxs) that will trigger alert formatting and alerts in the MP: Exceptions dashboard. The following table lists the conditions under which an alert is triggered. Thresholds must be non-zero to trigger alerts.

ThresholdCondition
Wp GM R % Max ThresholdAlert is green when Wp GM R % is greater than the
threshold
Wp GM R % Min ThresholdAlert is red when Wp GM R % is less than the threshold
Wp Markdown POS R % Max ThresholdAlert is red when Markdown POS R % is greater than the
threshold
Wp Markdown POS R % Min ThresholdAlert is green when Markdown POS R % is less than the
threshold
Wp Net Sales R Max ThresholdAlert is green when Net Sales R is greater than the threshold
Wp Net Sales R Min ThresholdAlert is red when Net Sales R is less than the threshold
Wp Returns R % Max ThresholdAlert is red when Returns R % is greater than the threshold
Wp Returns R % Min ThresholdAlert is green when Returns R % is less than the threshold
Wp Sell Thru R % Max ThresholdAlert is green when higher than the threshold
Wp Sell Thru R % Min ThresholdAlert is yellow when less than the threshold
Wp Do Not AlertPrevents alerting of the subclass/channels that are checked

Sales and Returns Sub-Step

After you have seeded, develop the sales and markdown plan for those departments. The second tab within the Create Plan step, Sales and Returns, has one default view: Sales and Markdowns.

Sales and Markdowns View

In the Sales and Markdowns view, you plan net sales, promotions, and markdowns. Sales are the revenue generated by selling goods or services. Regular priced sales yield the greatest margin, however successful promotions drive more traffic and completion of sales. Though the promotional sale likely includes markdown, the overall increase in sales should outweigh the markdown and drive at good margins.

There are several measure profiles available to logically guide you through the plan variables.

A measure profile is selected by clicking on the Edit View button next to the Measure tile.

1. Salesand Markdowns
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2/11/2023

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2/18/2023
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3/4/2025
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11/2023
3/18/2025
¢
tT
Wp Sales R63,495.63126,997.90126,954.22126,958.33126,945.73
127,073.16
Fest SalesR76,316.91152,634.48152,580.38152,586.01152,567.62
152,723.10
WpSalesRvar Fest%-16.8%-16.8%-16.8%-16.8%-16.8%
-16.8%
LySalesR57,723.30115,452.64115,412.93115,416.66115,405.21
115,521.05
Wp Sales R var Ly %10.0%10.0%10.0%10.0%10.0%
10.0%
MPWp SalesR contrib Prod%3.1%5.8%5.3%48%5.8%
6.0%
MP Ly SalesR contrib Prod %2.9%5.3%48%44%5.3%
5.5%
MPWp SalesR contrib Time %1.0%1.9%1.9%1.9%1.9%
1.9%
MPLySalesRcontribTime%0.9%18%18%18%18%
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Wp W/F
Sales R
38,426.0674,264.4774,103.24
74,134.21
74,170.03
LyW/F Sales R34,932.7867,513.1567,366.58
67,394.74
67,427.30
WpW/F SalesRvar Ly%10.0 %10.0 %10.0 %
10.0%
10.0%
Wp W/F
Net Sales R
38,426.0674,264.4774,103.24
74,134.21
74,170.03
WpW/F NetSales R%100.0 %100.0 %100.0 %
100.0%
100.0%
LyW/F NetSalesR34,932.7867,513.1567,366.58
67,394.74
67,427.30
LyW/FNetSalesR%100.0 %100.0 %100.0 %
100.0 %
100.0%
WpW/FNetSalesRvarLy%10.0%10.0%10.0%
10.0%
10.0%
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Calendar2/12/20222/19/2022
2/26/20223/5/2022
Measure
Wp Sales LR0.000.000.000.000.00
LySalesLR0.000.000.000.000.00
Wp Sales LR var Ly%0.0%0.0%0.0%0.0%0.0%
WpNetSales LR0.000.000.000.000.00
Ly NetSalesLR0.000.000.000.000.00
Wp NetSales LR var Ly%0.0%0.0%0.0%0.0%0.0%
Wp Markdown POS LR%0.0%0.0%0.0%0.0%0.0%
WpMarkdown POS LR0.000.000.000.000.00
LyMarkdown POSLR0.000.000.000.000.00
Wp Markdown POS LR var Ly
ov
0.0%0.0%0.0%0.0%0.0%
WpMarkdown Perm LR0.000.000.000.000.00
LyMarkdownPermLR0.000.000.000.000.00

The Retail profile is the default profile. The planning is focused on total retail rather than units, and sale type . This profile is the most comprehensive view of variables impacting inventory.

Inventory by Type

In this profile, you can review and maintain a breakdown of inventory by sales type: Regular + Promo, and Clearance.

Units

The most important asset metrics are inventory units and inventory cost because these metrics impacts cash flow. In this view, you can directly maintain EOP inventory, Average Unit Retail, plus shrink, Mark Out of Stock (MOS), and Move to Clearance (MOC) in terms of units.

Fulfillment Planning

This measure profile focuses on planning the impacts of Buy Online, Pickup in Store and Buy in Store, Ship to Customer. These fulfillment methods are relevant because inventory is planned for a channel based on its projected sales. When the sales are attributed to one channel but fulfilled by another, the fulfillment channel’s inventory must reflect the increased inventory need (increased OTB).

  • Fulfillment Ly

This measure profile is used to review last year’s fulfillment metrics in relation to planning the correct placement of inventory by channel.

Use the following best practices to plan the receipts and inventory:

1. Plan the receipt flow and then evaluate the average inventory and turn.

2. Review the Receipts Markup (MU) for accuracy. Often this will follow the keystone 50%, but many variables can impact the decision on markup: from competitor pricing to freight costs, and overhead operating expense.

3. Review the Wp CMU % measure. Cumulative markup rate (CMU %) is a blend of the beginning of period (BOP) inventory retail and cost with the future receipt retail and receipt cost. The Wp CMU % directly affects the cost of goods sold (COGS), which then affects the gross margin.

4. Review the Wp Stock to Sales R ratio. Make adjustments to Sales and other inventory measures (Receipts, Move out of Stock, Move to Clr, and so on) to achieve the desired stock to sales ratio.

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2/18/2023
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2/25/2023 a
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3/4/2025
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WpBOP R4,329,510.684,285,696.274,197,158.004,538,224.604,450,132.20
LyBOPR3,810,227.453,730,575.833,577,772.964,265,484.194,105,086.84
Wp ReceiptsR0.000.00429,446.470.000.00
Wp ReceiptsMU %0.0%0.0%50.0%0.0%0.0%
Ly Receipts R0.000.00429,446.470.000.00
Ly Receipts MU %0.0%0.0%50.0%0.0%0.0%
Wp ReceiptsR var Ly%0.0%0.0%0.0%0.0%0.0%
Wp Net SalesR38,426.0674,264.4774,103.2474,134.2174,170.05
LyNetSalesR34,932.7867,513.1567,366.5867,394.7467,427.30
1. GrossMargin
8
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MeasureCalendar2/11/2023
7
2/18/2023
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2/25/2023
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WpGMR16,907.0432,187.2332,014.5431,814.6531,823.61
WpGM R%44.0%43.3%43.2%42.9%42.9%
LyGMR15,370.0329,261.1229,104.1328,922.4128,930.55
LyGMR%44.0%43.3%43.2%42.9%42.9%
WpGMRvar Ly %10.0 %10.0 %10.0 %10.0%10.0%
WpVendorFundsR0.000.000.000.000.00
LyVendor Funds R0.000.000.000.000.00
Wp RoyaltiesR2,254.424,402.974,460.894,522.944,509.48
LyRoyaltiesR2,049.474,002.704,055.354,111.764,099.53

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||||||||| ||WpGMLR%||||||||| || WpGMLRvarLy%||||||||| |WpNetGM LR
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1/1
4/20231/21/2023
1/2
8/20232/4/2023
Measure
Wp Sales R176,922.48159,215.19212,860.69230,046.50244,784.52
TgtSales R0.000.000.000.000.00
Wp Sales RvarTgt%0.0%0.0%0.0%0.0%0.0%
Wp NetSalesR157,981.6693,966.34125,927.83136,369.17144,390.01
Tgt NetSalesR0.000.000.000.000.00
Wp NetSalesR var Tgt%0.0%0.0%0.0%0.0%0.0%
WpMarkdownPOSR66,143.0065,120.0068,200.0076,100.0069,125.00
WpMarkdown POSR%41.9%69.3%54.2%55.8%47.9%
TgtMarkdownPOSR0.000.000.000.000.00
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Calendar1/7/20231/14/20231/21/20231/28/20232/4/20232/11/2023
Measure
WpSalesR176,922.48159,215.19212,860.69230,046.50244,784.52204,263.47
LPCp Sales R194,610.62175,359.29234,857.78254,136.25270,251.31202,654.67
Wp Sales RvarLPCp%-9.1%-9.2%94%-9.5%-9A%08%
WpNetSalesR157,981.6693,966.34125,927.83136,369.17144,390.01121,407.33
LPCp Net Sales R173,632.37103,495.60138,923.01150,639.37159,411.47120,448.38
WpNet Sales R var LPCp%-9.0%-9.2%94%-9.5%-94%0.8%
WpMarkdownPOSR66,143.0065,120.0068,200.0076,100.0069,125.000.00
WpMarkdown POSR%41.9%69.3%54.2%55.8%47.9%0.0%
LPCpMarkdown R0.000.000.000.000.000.00
LPCp Markdown R%0.0%0.0%0.0%0.0%00%0.0%
WpMarkdownPOSRvarLP0.0%0.0%0.0%0.0%0.0%0.0%

Review Plan Sub-Step

When you believe you are ready to submit your working plan to the Planning Manager for approval, first use the Review Plan view to make sure the plan meets expectations.

There are several measure profiles in this view to quickly guide you to the plans you wish to review:

  • Wp with Ly (Default)

This measure profile shows the main Working Plan metrics for comparison with last year metrics. This is the profile you will use after initially performing the Create Plan step.

  • Wp with Cp

This measure profile shows the main Working Plan metrics for comparison with Current Plan metrics. Current Plan is a version of the plan that is approved in-season (and is actualized for elapsed/historical periods).

  • Wp with Op

This measure profile shows the main Working Plan metrics for comparison with Original Plan metrics. Original Plan is the plan as it was initially approved. Typically, it got approved pre-season and stays fixed when the period becomes in-season.

Submit Plan Sub-Step

This sub-step is performed when you have built a pre-season merch plan for all subclasses in a department for a given channel and period.

Submitting a plan copies the merch plans you built in the Wp measures to the Waiting Approval (Wa) measures, and then commits then to the database. Once committed, the Planning Manager can retrieve those plans and take action reviewing and approving them in the Create Merch Plan Targets task.

The Wa measures are shown in the Submitted and Approved view. These measures initially have zero values. After the merch plans are submitted in this step, those measures are populated with the Wa information.

Submit and Approve Plan View

In this view, you can submit the completed merch plans for approval by the Planning Manager. You can also view the approval status of a submitted plan in the Wp Approval measure. If the status is rejected, you need to go back the Create Merch Plan steps to make adjustments. Since you have already created a working plan, there is no need to seed the task again unless you want to start again with Ly (Last Year) data. After you have completed the adjustments, you will have to resubmit the plan. The submit action will copy the adjusted Wp into Wa for the Planning Manager to approve.

Once approved, follow the steps described below to copy the approved plan into the Original Plan (Op) version.

If using the Self Approval plan, the planner can directly approve the Merch Plan and the Working Plan (Wp) is copied to Original Plan (Op) and Current Plan (Cp).

In-Season Review and Reforecast Step

The Planner uses the Create Merch Plan task during the In-season to review plans and compares those plans to the season actuals. Planners can make adjustments in the views within the In-season Review and Reforecast step.

One of the key steps of In-season management is reviewing Open to Buy (OTB). OTB is the amount of money budgeted during the In-season to purchase goods that have not yet been received or ordered. The Planner decides In-season how to spend this money to reach strategic targets.

Sales and Returns Sub-step

After the pre-season plan, review the Sales Return plan during the In-season process for those departments against targets. This has similar views and measures as Sales and Returns steps from the Pre-season step.

  • Sales and Markdown

  • Local – Sales and Markdown

  • Returns Maintenance Setup

  • W/F Sales and Markdown

Gross / Net Margin Sub-step

The Planner can use this sub-step to review the margins against the target during the Inseason process. This step has similar views and measures as Gross / Net Margin sub-step from the Pre-season step.

  • Gross margin

  • Local – Gross Margin

  • W/F Gross Margin

Inventory / Receipts / OTB Sub-step

This step can be used to review the inventory and receipts during the In-season planning. This step has similar views and measures as Inventory / Receipts from pre-season step. Additionally, this sub-steps also has OTB view and projection view.

  • Receipts and Inventory

  • Move to Clearance

  • Open to Buy

  • Weekly In-season Projection

Open to Buy View

Managing Open to Buy (OTB) is the primary In-season task for the Planner. Each week, you will review last week’s sales and its impact on your BOP/EOP inventory for the current and future weeks.

¥ OpentoBuy
6
Calendar BG
Location# Z
o
Measure(Default)

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Calendar 1/21/2023 4/28/2023
2/4
/20232/11/2023
2/18/2023
2
/25/2023
Measure
WpBOP R
1,224,800.71
1,197,661.681,408,828.491,381,660.30
1,359,726.27
1,316,681.88
Wp Net Sales R
9,490.55
9,465.569,435.9110,548.41
20,734.58
20,690.53
WpMarkdown POS R
5,246.15
5,853.855,317.310.00
0.00
0.00
WpMarkdown POS R%
55.3%
618%56.4%00%
0.0%
0.0%
WpMarkdown Perm R
1,594.64
1,562.591,606.05953.91
2,235.68
2,298.29
WpMarkdown Perm R%
0.1%
0.1%0.1%0.1%
0.2%
0.2%
Wp Receipts R
0.00
118,246.840.000.00
0.00
118,246.84
Wp ReceiptsMU%
0.0%
50.0%0.0%0.0%
0.0%
50.0%
Cp Receipts R
0.00
120,442.920.000.00
0.00
120,105.02
CpReceiptsMU%
0.0%
50.0%0.0%00%
0.0%
50.0%
  • Default

This measure profile displays Reg+Promo, Clearance, and Net Sales and Markdowns and the corresponding inventory.

  • Direct

Key metrics for e-commerce are displayed including traffic, transactions, and returns.

  • Local Currency

If the Local Currency option is enabled, key metrics are viewed in local currency.

In-Season Review and Reconcile Step

The Planner uses the Create Merch Plan task during the In-season to review and reconcile plans against target and review with location plan.

Review with Target Sub-Step

This sub-step can be performed at any point in the planning process when you wish to get a gauge of how the plans thus far measure up to the targets. This sub-step must be completed before submitting your proposed plan to the Planning Manager.

Review with Target View

The Review with Target view contains the Planning Manager’s Target (Tgt) measures as well as planning (Wp) measures. Use this view to compare the Tgt measures to the corresponding Wp measures. By comparing the targets to the planning metrics, you can better understand what your plan needs to achieve. There are several Tgt-to-Wp variance measures that quickly guide you to areas of difference.

Review with Location Plan Sub-Step

This sub-step is performed anytime you make adjustments to the Merch Plan after location plans have been created.

Review with Location Plan View

In the Review with Location Plan view, you directly compare Wp (working merch plan) to a location plan. By comparing the merch plan to the location plan metrics, you can better understand where there are misalignments that need to be corrected. There are several variance measures that quickly guide you to areas of difference.

There are several measure profiles in this view to quickly guide you to the plans you wish to review:

  • Wp/LPCp (Default)

This measure profile shows the key Working Plan metrics for comparison with Location Plan, Current Plan metrics. Current Plan is a version of the plan that is approved In-season (and is actualized for elapsed/historical periods).

  • Wp/LPOp

This measure profile shows the key Working Plan metrics for comparison with Location Plan, Original Plan metrics. Original Plan is the plan as it was initially approved. Typically, it got approved pre-season and stays fixed when the period becomes In-season.

In-Season Review and Submit Plan Step

Use this sub-step is to review the core plan and submit the plan.

Review Plan Sub-step

Use the Review Plan sub-step to review your core plan metrics with the current plan, the original plan, and last year’s actuals.

Review Plan View

There are several measure profiles in this view to quickly guide you to the plans you wish to review:

  • Wp with Ly (Default)

This measure profile shows the main Working Plan metrics for comparison with last year metrics.

  • Wp with Cp

This measure profile shows the main Working Plan metrics for comparison with Current Plan metrics. The Current Plan is a version of the plan that is approved.

In-season (and is actualized for elapsed/historical periods).

  • Wp with Op

This measure profile shows the main Working Plan metrics for comparison with Original Plan metrics. Original Plan is the plan as it was initially approved. Typically, it got approved pre-season and stays fixed when the period becomes In-season.

Submit Plan Sub-Step

Use this sub-step is to submit, approve, and verify the plan.

Submit and Approve Plan View

In this view, you can submit the completed Merch Plans for approval by the Planning Manager. You can also view the approval status of a submitted plan in the Wp Approval measure. If the status is rejected, you need to go back to In Season Review and Re-project to make adjustments. After you have completed your adjustments, you will have to resubmit the plan. This copies the adjusted Wp to Wa for the Planning Manager to approve.

Once approved, perform the following steps to copy the approved plan.

Submit a Plan

To submit a plan for approval by the Planning Manager:

1. Select the check mark in the Wp Submit measure.

2. Optional: Enter information about the working plan in the Wp Submit Notes field.

3. A success message is displayed. Click OK to close it.

Note

The planning manager determines the point when the pre-season planning process has been finalized and will lock down Op. When locked, you will only be able to submit for approval and promotion to Cp.

As a result of completing submission of the plan, the Wp Submit and Wp Submit Info measures are cleared, the Wp Approval Status is set to Submitted, and the Wa Submit Info measure is populated. In addition, your working plan is copied into a Waiting for Approval (Wa) plan.

If using the Self Approval plan, the planner can directly approve the Merch Plan and the Working Plan (Wp) is copied to Original Plan (Op) and Current Plan (Cp).

Submitted and Approved Plan View

In this view, you can verify the plan that is awaiting approval.


In this guide