How are Revenue and ASP calculated?

In Demand Planning, the revenue and average selling price (ASP) are calculated fields.

The Revenue Calculation

All actual and demand plan units are kept in sync at all levels nevertheless where the edits occur.

Actual shipped and open order revenue is calculated at the lowest item / context level using the formula units * selling price. This is then summed up each level of the hierarchy to form a total revenue value.

The revenue for future demand plan buckets are calculated by the demand plan units in a period multiplied by ASP.

ASP Calculations

The ASP is calculated based on the S&OP Planning Setting called "ASP calculation interval (in months):" For example, if the value entered is 6, then all revenue over the last 6 months is divided by all units over the last 6 months. This is then summed up the hierarchy

Note: If a pricing matrix is provided, the selling price used will be a fixed price based on the data in the matrix. The option is enabled in the Sales & Operation Planning Settings Pricing option.

  • ASP for the past on all levels is calculated as Revenue divided by Units
  • ASP for the future at the lowest context Item level is based on the Price setting established above
  • ASP for the future at all levels above the lowest context Item level is Revenue divided by Units

Customer Specific Pricing Option

In certain cases, a customer may have specific pricing for a given item. In this case, the ASP value may not be a suitable option. To force customer specific pricing, a table may be uploaded that specifies the pricing by by item and by customer.

The tab delimited text file has the following columns and must be named customerspecificprice.txt and uploaded.

  • Item Code
  • Customer Code
  • Sales Price

Please note to use this setting, the Pricing setting in System settings should be set to Customer Specific Pricing

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