Eursap’s Tip of the Week: SAP S/4HANA Sales – A brief introduction to Advanced Available to Promise
Available to promise (ATP) is one of the cornerstones of SAP sales and logistics. It allows inventory to be allocated to sales orders and deliveries based upon a set of rules. These rules have always been reasonably crude, until SAP introduced Advanced ATP (aATP) with SAP S/4HANA.
Please note that aATP is subject to a small additional license fee.
Within aATP, SAP S/4HANA has introduced a brand-new confirmation strategy that can classify your customers in to five different categories, as below:
When demand exceeds supply, these customers will always be top of the pile for confirmation and fulfilment.
When demand exceeds supply, these customers will always keep their original confirmations. Further orders will be confirmed if there is stock available after the Win group has had all its orders confirmed.
When demand exceeds supply, these customers may lose some original commitments to the Win or Gain groups. However, if there is stock available after these two groups have confirmations, then they will also be in the Win category.
When demand exceeds supply, these customers act as the Redistribute group, except they won’t gain any confirmations.
When demand exceeds supply, these customers will lose their confirmations to the higher ranked groups.
The five categories are allocated to specific sales documents according to rules, as set out in back order processing (BOP). These rules can be defined within the “Configure BOP Segment” Fiori app, which is one of a number of SAP Fiori apps that can be used to control aATP through configuring the rules, assigning them to specific strategies (Win, Gain, Redistribute, Fill, Lose), and then running and monitoring the BOP to allocate the sales documents accordingly.
The most useful thing about BOP through aATP is that you have full flexibility over which orders/customers take priority over others depending on any number of parameters, and that flexibility can be maintained at a business level and amended according to changes in business requirements over time.
There is additional functionality available as part of the aATP suite, such as Alternative Based Confirmation (ABC) and Product Allocation (PAL). Keep watching Eursap tips for introductions to those concepts in the coming weeks.
I hope you find this useful! Stay tuned for another SAP Tip from Eursap next week.
Be sure to also check out Eursap’s SAP Blog for more in depth articles.