Understanding How Daily KPI Values are Calculated

Daily accurate calculation ensures that the changes in conditions within a week or month are considered in calculation. Every week or month is divided in to sub periods. The system determines the period splits based on:

• Week and month boundaries: Every week or month beginning triggers the creation of a sub period and every week or month end marks the end of the last available sub period.
  

  Note A sub week is terminated on a month boundary and isn’t spread across months to facilitate week to month aggregation.
• Changes in conditions: Any change in conditions triggers a period split. The change could be related to:
  • Customer conditions (Account Measures)
  • Product conditions (Product Measures)
  • Customer-specific product conditions (Account Product Measures)
• Promotion and Tactic Dates: For promotion calculation, the start date of a promotion or tactic triggers a split and the end date marks the end of the last available sub period.
  

  Note If the products are defined at the promotion level, tactic dates are used for determining sub periods for all products. But, if the products are defined at the tactic level, tactic dates are used for determining sub periods only for the products included in the tactic.
• Account Plan Dates: For Account Plan calculation, the following dates are relevant to determine sub periods:
  • Date From and Date Thru: A new sub period is created on the From Date of the Account Plan and a sub period is closed on the Date Thru of the Account Plan.
  • Customer Date From and Date Thru: A new sub period is created on the From Date of the Account Plan and a sub period is closed on the Date Thru of the Account Plan.

Each period contains at least one sub period.

Note The sub periods are created only at the product level and not at the higher levels of product hierarchy.

Here’s a promotion that spans across two months.

The pink-colored lines represent the promotion timeframe. The blue lines represent week boundaries — First Day of the Week is set to Monday for the sales org. The orange line represents month boundary and the green line represents changes in the values of conditions.

Week 42 consists of two sub weeks: One consisting of Oct 15 and another consisting of 6 days (Oct 16 to Oct 21). The month of October consists of two sub months: one starting from Oct 9 to Oct 15 and the second starting from Oct 16 and ending on Oct 31.

Here’s how the calculation engine handles the KPIs.

• The read KPIs, which aren’t time-dependent, could be available in daily, weekly, or monthly accuracy. Here’s how the data is handled.
  • The daily values of Read KPIs are aggregated to sub weeks or sub months depending on the number of days included in the sub period.
  • The weekly data is distributed to sub weeks and monthly data to sub months, based on the weekday share profile of the sales org.
• Based on the distribution settings of the KPI, manual inputs made for an Editable or Editable Calculated promotion KPI are distributed across plan hierarchy and time hierarchy.
• For calculated KPIs, here’s how the values are calculated at the product level.
  • If the time granularity of the KPI is set to period, the system applies the formula of the KPI to the weekly or monthly values of the referenced KPIs.
  • If the time granularity of the KPI is set to sub period, the system applies the formula of the KPI to the sub week or sub month values of the referenced KPIs. The calculated values are then merged using the merge rule of the KPI being calculated to arrive at the weekly or monthly values.

When the values are available at the product level, here’s how the KPIs are aggregated and total values calculated.

• For these KPIs, data from sub weeks are added to calculate the sub month values:
  • KPIs read from weeklymeasureint or weeklymeasurereal tables
  • Editable KPIs
  • Editable Calculated and Calculated KPIs with time granularity set to sub period
• For all the KPIs available at the sub period level, the values for the sub periods are merged for each product. The values are merged based on the merge rule of the KPI definition to calculate the weekly or monthly value.
• The total value is calculated at product level using total calculation rule applied to the weekly or monthly values.
• The weekly or monthly values at higher levels of planning hierarchy are calculated based on the aggregation rule applied to the weekly or monthly values at the product level.
• The total values at higher levels are determined based on the aggregation rule applied to the total values at the lower levels.
• For Account Plan KPIs, the values are aggregated to quarters and half years.