A ratio is the quotient between two value fields: for example, "price = revenue/quantity" or "sales commission rate = sales commission/sales". Ratios allow you to
In manual planning, you can enter both quantities and ratios directly on the planning screen. When you change an amount, internal rules determine which of the two other values is recalculated. In principle, you can enter any of the three values manually.
You can plan quantities and then valuate them using another plan version or actual data. Using a ratio scheme, you can specify which ratios are to be used for valuation in which order. For each ratio you can specify the planning level (combination of characteristics) for which valuation should take place. This makes it possible, for example, to calculate the average price for the products of a product group and then valuate the data at the product group level.