Markdown Data Requirements

Markdown data (MARKDOWN.csv) is used to capture changes in retail value of owned inventory due to a permanent or temporary price change. Markdowns are used only in Planning and RI applications. There are separate measures on the input file for markdown and markup effects depending on the kind of price change and direction of the change. For regular and clearance price changes, the file captures the total change in value of owned inventory units on the day the price change goes into effect. For promotional or temporary price changes, the file should have only the marginal effects of the price change when any of that inventory is sold to a customer (since the overall value of your inventory is not changed by a temporary promotion).

Rule	Explanation
Markdown Amounts	Markdown amounts are only the change in total value of inventory, not the total value itself. Permanent and clearance price changes result in markdown amounts derived like this: Markdown Retail = (SOH*Old Retail) – (SOH*New Retail) Markdown Retail = (150*15) – (150*12) = $450 Promotional price changes do not need the total markdown amount calculation, and instead send a promotion markdown amount at the time of any sale: Promotional Markdown Retail = (Units Sold*Old Retail) – (Units Sold*New Retail) Promotional Markdown Retail = (5*17) – (5*15) = $10 Markdown amounts will generally be positive values when the price was decreased, and the target systems will know when to add or subtract the markdown amounts where needed.
Markdown Types	The markdowns are provided using a type code, with 3 specific codes supported: R – Regular permanent price changes that are not considered a clearance price C – Clearance markdowns which are permanent and intended to be used at end-of-life for the item P – Promotional markdowns which are temporary price changes or discounts that are limited to a period of time
Markup Handling	When a regular price is increased or a clearance price is set back to regular price, you can send a separate transaction with positive Markup values populated in the record. You do not need to send negative values to reverse a markdown; the target systems can use the markup measures to do that. A similar rule applies to the markdown/markup cancel measures.
Inventory Usage for PDS Measures	Markdown data is joined with inventory data when you are exporting it to Planning applications, specifically to calculate two markdown measures (reg-promo and clearance-promo markdown amounts). The markdown export uses the clearance flag from the inventory history to determine the measure rollups. If there is no inventory record for a given item/loc/week intersection, the markdown data will default into the reg-promo markdown measure.

In most cases, you will be providing the same set of markdown columns for any application. These columns are listed below with additional usage notes.

Column Header	Usage
ITEM	Must be the transaction level item or SKU number and must have a record in the PRODUCT.csv file.
ORG_NUM	Must be the location number where the markdown transaction occurred. Must have a record in ORGANIZATION.csv file.
DAY_DT	The date that the markdown occurred on. Markdowns can occur on any date both in history and nightly batch files.
RTL_TYPE_CODE	The type of markdown using one of R/P/C characters to identify it as described in the business rules above. The type code determines which measures in Planning will get the data. Regular and clearance markdowns are considered as “inventory devaluation” while promo markdowns are shown as “markdowns”. Promo markdowns are further split into clearance-promo and reg-promo using the clearance flag from Inventory Position data.
MKDN_QTY MKDN_AMT_LCL	The units affected by a markdown and the total change in retail value as a result of a markdown. Both values will be positive numbers when representing a decrease in retail value as the result of a markdown.
MKUP_QTY MKUP_AMT_LCL	The units affected by a markup and the total change in retail value as a result of a markup. Both values will be positive numbers when representing an increase in retail value as the result of a markup.
MKDN_CAN_QTY MKDN_CAN_AMT_LCL	The units affected by a cancelled markdown and the total change in retail value as a result of the cancellation. Both values will be positive numbers when representing an increase in retail value as the result of the cancellation.
MKUP_CAN_QTY MKUP_CAN_AMT_LCL	The units affected by a cancelled markup and the total change in retail value as a result of the cancellation. Both values will be positive numbers when representing a decrease in retail value as the result of the cancellation.
DOC_CURR_CODE LOC_CURR_CODE	The currency codes linked to the retail amounts on the markdown data. The values in these fields will control how the system converts the amount (such as MKDN_AMT_LCL) and how the EXCH_RATE.csv file data will be used. If you are providing the data in the source currency from the store or warehouse location, then DOC_CURR_CODE will be the currency of the source location. If the data is already all on one currency, then DOC_CURR_CODE will be that currency code. LOC_CURR_CODE is the primary reporting currency you wish RAP applications to operate in, so it will generally be a single hard-coded value on all your data files. Review the section on Exchange Rate dimension data for additional scenarios.