Check against Forecast Vs Forecast Consumption

[Former Member]

Dear Experts,

What is CORE functional and technical difference between Check against Forecast that happens from within GATP world Vs the Forecast Consumption that happens in SNP with a macro ?.

My lil mid cant discern one from the other.

Thanks

Borat

[Former Member · Accepted solution]

BS,

Forecast consumption has to do with planning, and not with availability checking.  It is the process whereby the quantity of the requirement generated by a forecast is lessened when certain transactional data is generated.  In most cases (but not all), forecasts are consumed by sales requirements.  So, you create a forecast of 10.  The total requirements quantity is therefore 10.  Now, you create a consuming sales requirement of 6.  6 of the forecast quantity is consumed, leaving only 4.  The overall quantity of requirements still remains as 10. However, after consumption, 4 of the requirements are 'forecast', and 6 of the requirements are 'sales'.

Forecasts can also be subject to reduction, which is different from consumption.  This is a tale for another post.

Checking against forecast is a topic having to do with Availability checking, and not with planning.  SAP offers availability checking against unconsumed forecast, as an alternative to  availability checking against supply and demand elements,. 

In the more common method (checking against supply and demand elements), when generating an availability check, SAP uses configuration settings to calculate how much product will be available at a particular point in time, based upon the amount and dates of supply elements; and the amount and dates of demand elements.  The output of an availability check is a confirmation date and quantity of a demand element; typically a sales order or production order.

In the less common method, when generating an availability check, SAP uses the amount of unconsumed forecast to calculate how much product will be available at a particular point in time.  The amount of stock, the number and quantity of purchase orders or production orders is irrelevant to this check.  The assumption by the ATP check is that if you forecasted it, and the forecast has not yet been consumed by sales, then the system assumes the product will be available on the date that you forecasted.  Again, the output of an availability check is a confirmation date and quantity.

Best Regards,

DB49

[Former Member · Accepted solution]

Thanks DB49,

I was confused with this statement that I dug out from an old classroom guide given to me when I attended a training class of SAP. They didn't cover this check against forecast topic at all, calling it as optional. I am now reading this to sound a lit more learned.

"During the check against the forecast, sales orders can only be confirmed if there is a corresponding planned independent requirement with which the sales requirement can be offset"

It was this loaded word "offset" that confused me. This sounds like forecast is reduced when a new sales order arrives and that is what happens during forecast consumption as well. The only difference being the ATP quantity in case of check against forecast is the PIR  + and sales orders - .unlike ATP quantity for check against ATP quantity that constitutes various stocks, supply elements and requirements that does not need not include forecast.

Correct me if I still sound clueless.

Regards

BS

[Former Member · Accepted solution]

Hi DB49,

Sorry I was bit lost again. Let me attempt the questions again as is there in my mind. For now only for theory and concepts sake.

If I am planning (in SNP) for planning strategy 20 products (that SNP supports - final with final assembly), wouldn't  this lead to double reduction of forecast if I carry out a check against forecast when the sales order arrives?.

Simplifying further, the question is

Does the check against forecast actually reduce the forecast (FA - usually the first row in standard SNP book 9ASNP94) ?.

Which of these scenarios happens in the standard system ?. Assume there is no fwd / bwd consumption for now.

	period 1	period2
Forecast	100	100
Sales orders	90	110
Confirmed   Sales Orders	90	110
Cumulative   Unconsumed Forecast	10	0

.

	period 1	period2
Forecast	100	100
Sales orders	90	110
Confirmed   Sales Orders	90	100
Cumulative   Unconsumed Forecast	10	10

Forecast was 100 to begin with

	period 1	period2
Forecast	10	0
Sales orders	90	110
Confirmed   Sales Orders	90	100
Cumulative   Unconsumed Forecast	10	10

[Former Member · Accepted solution]

BS,

Sorry, I am disinclined to discuss any more theory.  I prefer to spend my limited time assisting people with concrete problems. 

If I am planning (in SNP) for planning strategy 20 products (that SNP supports - final with final assembly), wouldn't  this lead to double reduction of forecast if I carry out a check against forecast when the sales order arrives?.

No

With respect to the other question and the three scenarios, why don't you just create these cases in a local system and discover the results yourself.

Best Regards,

DB49

[Former Member · Accepted solution]

Thanks,

The No reassures 🙂  System access is a luxury at the moment. I need to buy a licensed subscription of my own I think.

I will keep firing smaller questions...usually conceptual ones. Please do respond at leisure.:-)

Thanks

Borat.