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ATP with Product Allocation

Hi Friends...

Can anybody gives clear explanation of how ATP works with Product Allocation. I need with some simple example.

Thanxs

Former Member
Former Member replied

Hi Aleem,

ATP stands for available to promise.

means: it is a functionaly in SAP that controls the availability of the sales stock.

for example, if you process a material thinking that it is available (when in reality not enough stocks are available) but when it comes to delivery u may not have sufficient quantity, then it becomes a problem for you to answer the customer since you are not able to meet up the delivery schedule.

thus to avoid this confusion during delviery, SAP has developed this control of checking the stock availabilty first before u confirm a Sale order to customer.

A precise planning and controlling mechanism is of the utmost importance for the execution of competitive order processing with guaranteed efficient and timely delivery to the customer of the required order quantity. Unforseen problems, such as production deficits or increased demand can have critical consequences for order processing and must be brought under control as soon as possible.

Product allocation is a function provided by the R/3 system for carrying out these control options intended to help your company to avoid critical requirement and procurement situations. This should enable you to keep production to a minimum at the same time as allowing you to react quickly to bottlenecks and changing market situations.

In the R/3 system, product allocations represent an ordered allocation of production for certain periods. Product allocations can be created according to various criteria (i.e., customer, regions).

Product allocations are created in the logistics controlling area in the planning hierarchy (Logistics ® Logist. controlling ® Flexible planning ® Planning create/change ® Planning type: COMMIT for SAP standard planning type). Product allocations are always divided right up to the lowest level in the hierarchy. The basis for the planning hierarchy is info structure "S140", which SAP issues as the standard info structure. It determines the criteria of the hierarchy. You can define your own info structures in Customizing for LIS (Logistics General ® Logistics Information System ® Reporting ® Standard Analyses ® Change settings).

To carry out availability check against product allocation, certain requirements must be met:

Material master

In the material master, the product allocation determination procedure must be entered in the basic data screen for general data.

Statistics update

In Customizing for the Logistics Information System, statistics updating must be set for the information structure. This is required at customer, material and header level. The update group must also be maintained in Customizing for the Logistics Information System.

In Customizing for SD, the settings must be made for availability check against product allocation. You will find the necessary steps described in the Implementation Guide in section "Availability check against product allocations". This is where, the necessary Customizing activities for the statistics update are described.

The planning hierarchies for product allocations are created in logistics controlling. If the correct settings have been made in Customiuing, the system carries out an availability check against the ATP quantity in SD during order entry. If the availability check determines that the ATP quantity can fully or partially cover the order requirement, then a confirmed quantity is determined as the result of the check. The confirmed quantity is the basis for the availability check against product allocation, which is carried out along with the ATP check.

The confirmed quantity from the ATP check is checked against the relevant product allocation. This ensures that the product allocation for this period is not exceeded. Required quantities that cannot be confirmed, because the product allocation for that period is used up, are postponed until the next period.

The result of the product allocation check can change confirmed quantities that have already been determined. In this case you receive a message before branching to the availability control screen.

Unlike the ATP check, the check date for the availability check against product allocations is the planned delivery date for the customer and not the material availability date.

The actual order quantities are updated in the planning hierarchy of the LIS. Comprehensive reporting tools and an early warning system in the LIS that has to be set in Customizing monitor the status of the product allocation period and report critical situations immediately.

Product allocation uses a blocking mechanism similar to quantity block in the ATP check: The check hierarchy of the corresponding product allocation object is only blocked exclusively during the check itself. Afterwards, the same object can also be used by other processes without the current procedure having been saved. The product allocation quantity used is, however, seen in all subsequent processes (via this blocking mechanism) to prevent over-confirmation.

The system can carry out an availability check against product allocation automatically during order entry. When availability is low, you branch to the availability control screen automatically. From there, you can view the result of the product allocation.

This is done as follows:

In the availability control screen, branch to the display of the availability situation with regards to product allocations via Goto ® Product allocations.

By clicking on the "product allocation" symbol, you can view the product allocation that was checked against. You can see which product allocations are available for which periods, how much the product allocation has been used up by other orders and how much product allocation remains.

For example, even though the material for an order for 100 pieces may be available in full for the required date according to the ATP check, it is only partially confirmed because the product allocation for that customer only had a value of 80 pieces remaining at the time of order entry. The confirmed quantity for the required quantity and an alternative delivery date is displayed on the control screen.

Please Reward If Really Helpful,

Thanks and Regards,

Sateesh.Kandula

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