1 Introduction

Oracle Retail Merchandise Financial Planning Cloud Service (MFP Cloud Service) provides flexible and easy-to-use financial planning solution templates that enable retailers to create high-level strategic and low-level detailed financial plans. The solution guides users through best-practice planning processes in an efficient, streamlined manner while providing top-down, middle-out, and bottom-up functionality for developing, reconciling, and approving plans.

Note: There are two versions of MFP Cloud Service: MFP Retail Cloud Service and MFP Cost Cloud Service. This guide describes MFP Retail Cloud Service. For information about MFP Cost Cloud Service, see the Oracle Retail Merchandise Financial Planning Cost Cloud Service User Guide.

MFP Cloud Service provides both pre-season and in-season planning with key financial indicators that include sales, markdowns, receipts, inventory, gross margin, and open-to-buy. MFP Cloud Service users can bring many plans together for quick and easy reconciliation and approval through consistent, disciplined processes. Furthermore, MFP Cloud Service can be used to plan for multiple retail channels including Brick & Mortar, Direct, and Wholesale/Franchise. Additionally, it includes support for location planning and reconciliation with Merch plans.

MFP Cloud Service enables users to perform the following tasks:

• Create a financial plan in a structured way

• Set and pass targets

• Reconcile a plan

• Submit and approve a plan

• Monitor a plan

• Maintain a plan

• Re-plan

Merch Planning Process

The Merch planning process can be separated into two sub-processes: pre-season and in-season planning. Creating the merchandise financial plan occurs during pre-season planning. Managing and updating the merchandise financial plan occurs during in-season planning. Pre-season planning focuses on creating the Original Plan (Op) against which to benchmark in-season progress. In the pre-season process, the plan is initialized by seeding from Last Year (Ly) or from a forecast. This seeding gives users a curve of demand against which to spread a new plan. Users then plan sales, receipts inventory, turn, and gross margin measures.

There are two types of users in MFP Cloud Service:

• Merch Targets. These users are usually planning directors or managers. This is a combination of traditional top down and Merch Targets roles. They create the overall targets for the Merch Plan.

• Merch Plan. These roles are usually merchandise planners. They create Op and Cp plans for approval by the Merch Targets role.

The targets are published by superior levels to the subsequent level: Merch Targets passes to Merch Plan. The Merch Plan then submits the Op, Cp, or both to the Merch Targets role for approval. The Op and Cp plans are not created until they are approved by the Merch Targets role.

This process is shown in Figure 1-1 and Figure 1-2.

Figure 1-1 Create Merchandise Financial Targets and Plan Process

After the planning period has begun, the process of in-season planning begins. The objective of in-season planning is to identify opportunity and risk for the Op.

Figure 1-2 Manage/Update Merchandise Financial Plan Process

Location Planning Process

The Location Planning (LP) process is also separated into two sub-processes: pre-season and in-season planning. Creating the location plan occurs during pre-season planning. Managing and updating the location plan occurs during in-season planning. Pre-season planning focuses on creating the Original Plan (Op) against which to benchmark in-season progress. In the pre-season process, the plan is initialized by seeding from Last Year (Ly) or from a forecast. This seeding gives users a curve of demand against which to spread their new plan. Users then plan sales, receipts, inventory, turn, and gross profit measures.

There are two types of users in LP:

• Location Targets. These roles may be location planning managers or location planners, meaning that the location targets and plan may be created by the same user. They create a version of LY Sales/Markdowns that is corrected for non-repeating events such as store closures due to bad weather, construction, and so on. These are passed down as targets to the location planner.

• Location Plan. These roles are usually location planners. They create Op and Cp plans. They plan total sales, markdowns, and so on through the use of average store metrics, using a number of user defined hierarchies with location attributes (such as comp, volume, size, climate, and demographics).

The targets are published by superior levels to the subsequent levels: top location targets pass targets to the location plan. The location plan self-approves the Op, Cp, or both. The Op and Cp plans are not created until they are approved.

This process is shown in Figure 1-3 and Figure 1-4.

Figure 1-3 Create Location Targets and Plan Process

Figure 1-4 Manage/Update Location Plan Process

Target and Plan Alignment

Merch Targets and Merch Plans align with one another. Location Targets and Location Plans align with one another through seeding the plan with the Target. Merch and Location Plans align with one another.

Role Planning Overview

The Merch planning process involves multiple user roles. These user roles work together to pass targets and reconcile plans at different levels of the product, location, and calendar dimensions. The process of using multiple roles divides the planning process into logical sections that provide oversight to the plan creation at multiple levels.

The targets user passes targets to the Merch Targets user, both for Merchandise Financial Planning and Location Planning. The approved plans can be made visible to an item planner using a separate product, Oracle Retail Item Planning.

Planning Roles

Planning roles serve the following purposes:

• They identify the organizational level at which planning occurs.

• They set the product level at which that role will plan.

• They set the time period at which that role will plan.

Each role is part of a bottom-up or a top-down process (see Table 1-1). The role's base intersection defines the lowest level of product to which that role has access when building a plan. The planning role defines the range of planning responsibilities and also controls the measures shown in planning views and those measures' accessibility.

While the planning roles can be customized during implementation, a standard set of planning roles is supplied with MFP Cloud Service:

• Merch Targets

• Merch Plan

• Location Targets

• Location Plan

The range of planning and the role relationships for these roles are listed in Table 1-1.

Table 1-1 Range of Planning and Role Relationships

Role	Base Intersection	Range of Planning	Lowest-Level Time Period
Merch Targets	Department/Week/Channel	Company - Department	Week
Merch Plan	Subclass/Week/ Channel	Department - Subclass	Week
Location Targets	Company/Week/Location	Channel-Location	Week
Location Plan	Department/Week/Location	Channel-Location	Week

Merchandise Financial Planning Components and Key Processes

The key components and features of MFP Cloud Service provide the basis for standard processes and activities that are necessary for planners to perform their planning functions.

Key components include:

• Workbooks

  The primary element used in building a plan. A planner uses a workbook to build and maintain plans throughout the season.

• Views

  Contained within workbooks. The views contain pre-defined lists of measures and are arranged to reflect a step in the standard planning process, allowing a user to work in a logical path to build a plan.

• View Data

  Used to save, commit, and edit plan data.

• Planning Roles

  Each MFP Cloud Service user is assigned to a specific role. These roles control the application functions that are available and the level of aggregation in the product dimension for that user. They play an integral part in how plans are created.

• Plan Versions

  MFP Cloud Service functionally provides the capability to have more than one version of the plan. This allows users to track actual data against the original plan, re-plan the current season, and save to a new plan.

• Plan Reconciliation and Approvals

  Plan reconciliation is a process of combining lower level plans and comparing them to a higher level target. Plan approval is a built-in application process that allows a Merch Plan role to submit a plan for approval to the Merch Targets role, who can approve or reject it.

Workbooks

An MFP Cloud Service user accomplishes multiple planning tasks using workbooks. A workbook is a user-defined data subset (of a master database) that includes selected dimensions levels. These workbooks consist of views and graphical charts used for planning, viewing, and analyzing business measures. Workbooks organize related planning information and divide levels of user responsibility. This framework allows a user to easily view, create, modify, and store datasets that are common to repeated tasks.

A workbook structure consists of the following elements:

• Product levels and members such as Department, Class, and Sub-Class for the Men's Sweater Department.

• Calendar levels and members such as Season, Month, and Week for the Spring 2020 Season.

• Location levels and members may reflect multiple channels within an organization at their aggregate level, such as total Brick and Mortar divisions, Catalog, or e-Commerce.

• Plan versions such as Working Plan (Wp), Original Plan (Op), Current Plan (Cp), and Last Year (Ly).

• Measures and corresponding business rules such as Sales, Receipts, and Inventory.

  Workbooks can be built automatically, through a batch process, or manually using the Planning Workbook wizard. Each workbook contains the planning views, measures, and business rules needed for a complete plan.

  Data in a workbook can be displayed using both multidimensional spreadsheets and charts. The data can be viewed at a detailed level or at an aggregate level.

Views

Planning views are multidimensional pivot tables that provide users with views of the data contained in a workbook. Oracle Retail Predictive Planning comes with a series of built-in views that support an industry-standard business process. Each view can contain its own unique product, calendar, location, and metric information. This approach enables users across an organization to use a standard planning process.

Views can be customized for each user. Rotating, pivoting, and formatting functions allow a user to create individual views within a view. Each user can also display the data in a graphical format by using the charting functionality.

Editing View Data

Users edit and enter data in the views. The solution's business rules are implemented throughout the views to ensure consistent edit behavior regardless of where (on which view) the edit is performed.

Measure Aggregation and Spreading

Users may edit data at many levels of each dimension (product, location, calendar). If the data is modified at an aggregate level (a level with one or more lower levels beneath it), the modifications are distributed to the lower levels within the hierarchy. This function is called spreading. If data is modified at a level that has a higher level above it (parent), the data changes are reflected in those higher levels. This is known as aggregation.

Each measure that is used in the MFP Cloud Service solution is assigned a default aggregation and spreading behavior. A measure's aggregation method controls how data is calculated at aggregate levels of the dimension, such as month or department. A measure's spread method controls how data is spread to lower levels of a dimension when the user enters data at an aggregate level. Table 1-2 provides a list of relevant aggregation and spread methods that are used in MFP Retail Cloud Service.

Aggregation Methods

Table 1-2 displays aggregation methods, their results, and their types of measures.

Table 1-2 Aggregation Methods

Aggregation (Agg) Methods	Result	Types of Measures
Total	Values are summed up the hierarchy dimensions.	Value or unit measures such as sales and receipts.
Recalc	Value is recalculated at aggregate levels based on its rule calculation.	Percentage measures such as Gross Margin%. Also other calculated measures such as TO and Forward Cover.
PST - Period Start Total	Value is summed up non-calendar dimensions. Value at aggregate time equals the same value as the first child period's value belonging to the aggregate parent.	Beginning of Period Inventory (BOP).
PET - Period End Total	Value is summed up non-calendar dimensions. Value at aggregate time equals the same value as the last child period's value belonging to the aggregate parent.	End of Period Inventory (EOP).
AMBG	All values within and across hierarchies are equal; otherwise a ? is displayed at aggregate levels.	Used by informational text measures, such as Event Information or pick list Approve/Reject.
B_AND	For Boolean types only referring to situations that are either true or false. Value is on or true at an aggregate level if all values within a hierarchy level are on.	Boolean (check box) Submit.

Spread Methods

Table 1-3 displays spread methods, their results, and their types of measures.

Table 1-3 Spread Methods

Spread Methods	Result	Types of Measures
Proportional	Typically used in conjunction with Total Agg type. Value is spread proportionally to the child levels when a value is entered at an aggregate level.	Value or unit measures such as sales and receipts.
None	The result of the edit is passed to another measure. The spread method for the measure that inherits the edit is used to spread the new value to the child levels. For example, an edit to Wp Sales var Ly R% at an aggregate level (Month) results first in the Sales R value being recalculated at the Month level, reflecting the edited percent increase over Ly Sales R. Then the new Sales R value is spread to the week level proportionally. Finally, the Wp Sales var to Ly R% is recalculated at the week level.	Variance measures such as Wp Sales var to Ly R%, Wp Mkd var to Op R%.
PS (Period Start)	For edits at an aggregate level, the edited value is placed into the first logical child level beneath the level of the edit. For example, an edit to BOP Inv at the Month level spreads the edited BOP Inv value to the first week reporting to the Month.	NA
PE (Period End)	For edits at an aggregate level, the edited value is placed into the last logical child level beneath the level of the edit. For example, an edit to EOP Inv at the Month level spreads the edited EOP Inv value to the last week reporting to the Month.	Typically used in conjunction with EOP Inv, Avg Inv.

Overriding Default Spread Methods

A measure's default spread method can be overridden on a data entry by using the override spread method function. The default spread method is overridden for that specific data edit and is not permanently changed. To use an alternate spread method, enter a number in a data cell at an aggregate level followed by an r, e, p, or d. This applies the replicate, even, proportional, or delta distribution function to spread that number to the lowest level.

Note: Save information in the workbook before trying these features. If the results are not satisfactory, use the Edit - Revert command to undo the changes. The Revert command resets the workbook back to its state after the last save was issued.

Explanation of Spread Types

This section describes the following spread types.

• Replicate

• Even

• Proportional

• Delta

For each of the spread types, assume the following dimensions and values.

Table 1-4 Example for Spread Types

	February	Week1	Week2	Week3	Week4
Department1	570	155	170	100	145
Class1	120	20	20	40	40
Class2	100	25	25	25	25
Class3	200	100	50	20	30
Class4	150	10	75	15	50

Replicate

Replicate copies the entered value to all cells below the aggregate dimension. This method can be used for measures that have an aggregation method of Total or Recalc.

If a value is entered at more than one aggregate dimension (such as aggregate product and time), then the value is copied to all lower-level base cells below the aggregate time and product.

Example: Enter 50r for Feb/Department1. The values at every intersection of week and class belonging to Feb/Department1 are changed to 50. The aggregate total is then recalculated as the sum of the lower-level cells, 800. See Table 1-5 for the results.

Table 1-5 Example for Replicate Method

	February	Week1	Week2	Week3	Week4
Department1	800	200	200	200	200
Class1	200	50	50	50	50
Class2	200	50	50	50	50
Class3	200	50	50	50	50
Class4	200	50	50	50	50

Even

Even divides the entered value evenly to all cells below the aggregate dimension. This method can be used for measures that have an aggregation method of Total or Recalc.

If a value is entered at more than one aggregate dimension (such as aggregate product and time), then the value is copied to all lower-level base cells below the aggregate time and product.

Example: Enter 600e for Feb/Department1. The value at every intersection of week and class belonging to Feb/Department1 changes to 37.5. The aggregate total is then recalculated as the sum of the lower-level cells, 600. See Table 1-6 for the results.

Table 1-6 Example for Even Method

	February	Week1	Week2	Week3	Week4
Department1	600	150	150	150	150
Class1	150	37.5	37.5	37.5	37.5
Class2	150	37.5	37.5	37.5	37.5
Class3	150	37.5	37.5	37.5	37.5
Class4	150	37.5	37.5	37.5	37.5

Proportional

Proportional spreads the difference between the original and entered value to all cells below the aggregate dimension based on that cell's percent contribution to the original value in the edited cell. This method can be used for value or unit measures that have an aggregation method of Total.

If a value is entered at more than one aggregate dimension (such as aggregate product and time), then the value is copied to all lower-level base cells below the aggregate time and product.

Example: Enter 1140p for Feb/Department1. The value for every intersection of week and class belonging to Feb/Department1 doubles. The percentage contribution of the base cell to the aggregate remains unchanged. See Table 1-7 for the results.

Table 1-7 Example for Proportional Method

	February	Week1	Week2	Week3	Week4
Department1	1140	310	340	200	290
Class1	240	40	40	80	80
Class2	200	50	50	50	50
Class3	400	200	100	40	60
Class4	300	20	150	30	100

Delta

Delta spreads the difference between the original and entered value evenly to all cells below the aggregate dimension. This method can be used for value or unit measures that have an aggregation method of Total.

If a value is entered at more than one aggregate dimension (such as aggregate product and time), then the value is copied to all lower-level base cells below the aggregate time and product.

Example: Enter 670d for Feb/Department1. The value for every intersection of week and class belonging to Feb/Department1 increases by the same value, 100/16 or 6.25. See Table 1-8 for the results.

Table 1-8 Example for Delta Method

	February	Week1	Week2	Week3	Week4
Department1	670	155	170	100	145
Class1	120	26.25	26.25	46.25	46.25
Class2	100	31.25	31.25	31.25	31.25
Class3	200	106.25	56.25	26.25	36.25
Class4	150	16.25	81.25	21.25	56.25

Saving Workbook Data

Two options, Save and Commit, are available to ensure that data is saved during the planning process.

• Save. Data is saved to a user database and does not affect the master database. This allows you to manipulate details and evaluate the impact of the changes without changing the master data. Any data saved with the Save option is saved to a local copy of the database. Other users are not able to view the saved data by default. You may save the workbook with global or group access, enabling others to view your local workbook.

• Commit. Date is saved to the master database. Data (including changed) is accessible to all users after their workbooks are rebuilt or refreshed.

Refresh and build are two methods for retrieving updated data from the master database to a local workbook.

• Refresh. A user can run any refresh group that has been configured to retrieve data from the master database to an existing workbook.

• Build. A user may build a new workbook manually. As an alternative to building a workbook manually, a Merchandise Financial Planning administrator can run a batch process (delivered with Merchandise Financial Planning) to automatically build a new workbook by using the Auto Workbook Build process. Refer to the Oracle Retail Predictive Application Server Administration Guide for the Fusion Client for more details.

Plan Versions

The strategic and financial planning processes supported by MFP Cloud Service use plan versions to designate different plan types that are used throughout the planning horizon. These version names and their abbreviations are used frequently in planning views (for example, to distinguish measures).

The plan versions that are visible to MFP Cloud Service users depend on the users' planning roles.

Table 1-9 Plan Versions Visible to MFP Cloud Service

Plan Version	Merch Plan	Merch Targets	Location Plan	Location Targets
Working Plan (Wp)	X	X	X	X
Last Year (Ly)	X	X	X	X
Original Plan (Op)	X	X	X	X
Target (Tgt)	X	X	X	X
Current Plan (Cp)	X	X	X	X
Waiting for Approval (Wa)	X	X	NA	NA

The following sections describe each plan version in more detail.

Working Plan (Wp)

• The plan version that is editable for a particular pre-season or in-season period.

• This plan version is used to develop and revise plan data.

• Actual data values are loaded into the Wp and Cp versions for all elapsed time periods.

Last Year (Ly)

• A plan version that provides a reference to last year's actual historical data.

Target (Tgt)

• Target measures contain values set by a higher role that are then passed to a lower role. For example, the Merch Targets role and the Merch Targets role pass a target plan version down to the Merch Plan role.

• Targets are created by the role through the Publish Targets custom menu button, which is initiated by the user. After the data is committed to the database, those targets become available to the Merch Plan role.

Waiting for Approval (Wa)

• A plan awaiting approval by the Merch Targets role. The Merch Plan role submits the plan for approval, which copies the plan data from the Wp version to the Wa version.

• The Merch Targets and Merch Plan roles access the same Wa version. The Merch Plan role owns this version, and the Merch Targets role reads from this version to populate measures. The Wa version is read-only for both roles.

• If the plan is approved, a Waiting for Approval plan is promoted to either the Original Plan (Op) version, the Current Plan (Cp), or both the Op and Cp, depending on which Op plan version is enabled by the administrator.

• If the plan is rejected, the Working Plan (Wp) version is not promoted to Original Plan or Current Plan. Needed adjustments are made before the plan is resubmitted for approval.

Original Plan (Op)

• A pre-season plan that has been approved and promoted from Waiting for Approval (Wa) to Original Plan (Op) version.

• The Merch Plan role's plan is the only plan that is approved and becomes the Original Plan.

• All roles can view the Op version measures.

Current Plan (Cp)

• An in-season plan that has been approved and promoted from Waiting for Approval (Wa) to Current Plan (Cp) version.

• All roles can view the Cp version measures.

• The Merch Plan role's plan is the only plan that is approved and becomes the Current Plan.

• Actual data values are loaded into the Cp (and Wp) version for all elapsed time periods.

Plan Reconciliation

The goal of plan reconciliation, an important step of the financial planning process, is to achieve a single, unified plan that all contributing parties have reviewed and approved. As plans are generated, they move through a reconciliation phase and on to the plan approval phase.

MFP Custom Menu Options

MFP Cloud Service custom menu buttons in the RPAS Fusion Client are located above the top right corner of the content area for some workbooks. The custom menus are specific to the steps in the different tasks. If you are on a specific step, you can see the custom menus that have been configured for that step.

Figure 1-5 Custom Menu Button in the RPAS Fusion Client

The custom menu buttons vary depending on the current step. The following custom menu buttons are available:

• Merch Targets Role

  • Seed

  • Publish Targets

• Merch Plan Role

  • Seed Plan

  • Submit Plan

  • Copy Approved Plan

• Location Targets Role

  • Seed Plan

  • Publish Targets

• Location Plan Role

  • Seed Plan

  • Approve Plan

Note: Descriptions of these custom menu buttons are provided where relevant throughout this guide.

Seeding the Plan

Seeding is a process that populates certain Working Plan data elements with data from last year data from external systems. Seeding facilitates the ability to create a plan by providing seasonal curves across time and relationships between products and locations. After edits are made to a Working Plan measure that has been seeded, the new edit spreads to lower dimension members based on the data that has already been seeded, maintaining the seasonal curves and relationships between products and locations.

Plan Approval

In MFP Cloud Service, the Merch Targets and Merch Plan roles participate in the plan approval process.

The Merch Plan role uses the Approval view to submit plans to the Merch Targets role for approval. The Merch Plan role also uses this view to view the status of the submitted plans. The Merch Targets role uses the approval view to approve or reject the submitted plans.

Submit for approval functionality is available as a custom menu button. The Submit button allows a user to submit the plan and move the data to the Wa version.

Publishing Targets

In MFP Cloud Service, the Merch Targets role and top down roles may set target values for key measures. They then make these targets available to the role below them in the planning process, Merch Plan.

Merch Targets roles create their plan and use the Publish Target view to update their target measures with the data in their plan. The data is published to Merch Plan roles when they click the Publish Targets custom menu button. Then Merch Plan roles have access to these target values in their workbooks after a refresh or build.