Advanced Available to Promise (aATP) – Part 1
SAP S/4HANA Advanced Available-to-Promise (aATP) is a critical component of the S/4HANA suite that enhances the standard ATP (Available-to-Promise) functionality with more advanced and flexible features. It is designed to meet complex order fulfilment processes and ensure higher accuracy and efficiency in inventory allocation and customer order management.
Key Features and Functionalities of aATP
Product Allocation (PAL)
Product Allocation (PAL) in SAP S/4HANA's Advanced Available-to-Promise (aATP) is a feature that enables businesses to control the distribution of limited products or resources across various customers, channels, or regions. It ensures that constrained products are allocated according to established rules and priorities, preventing overselling and ensuring that key customers or markets receive an appropriate share.
In aATP following aaps are applicable for product allocation –
Concepts of Product Allocation (PAL)
Example Scenario
Imagine a company that manufactures a highly demanded mobile phone but has limited production capacity. The company has key customers across various regions and wants to ensure fair distribution to each region. To achieve this, the company creates a Product Allocation Object with rules that allocate specific quantities to each region based on historical sales data and strategic priorities.
Order processing: When orders are placed from different regions, the system checks the available allocation for each region before confirming the order. If a region's quota is exhausted, no additional orders from that region will be confirmed unless the allocation is increased or unused quotas from other regions are available for redistribution.
In this example, instead of using regions, the allocation is based on a combination of sales organizations and sold-to parties.
Created product allocation objects –
With required characteristics –
2. Product allocation sequence
In our example Mobile allocation sequence consists of two sequence groups in a specific order. This order ensures that we first attempt to fulfil the requested quantity from the specific allocation per customer. If the allocation quantity is insufficient, the system will then use the second allocation during the Available-to-Promise (ATP) check. Consequently, important customers have access to two pools, while other customers can only use the quantity from the general pool.
The capacity sequence section contains a single sequence group that represents transport capacity. This group includes two allocation objects—one for the trailer and one for the battery. During the ATP check, all constraints within a sequence group are considered using AND logic.
3. Allocation planning
Creation of Product allocation objects -
Planning data to be setup for each allocation object -
MOBILE_STANDARD_SALES
Capacity Sequence is nothing but the available capacity –
Planning data setup for MOBILE_TRANS_CAPACITY -
4. Assign product to Product allocation -
Product allocation output
Sales order creation to check confirm quantity after PAL set up. As per below scenario even though my capacity is 30 system has considered 15 qty after considering sequence and planning data by considering current period.
The actual ATP quantity is 100 in the system but system is showing confirm quantity in sales order after Product allocation setup,
5. Product allocation overview app–
This will give end to end overview of product allocation and order confirmation.
Integration with Other aATP Features
Benefits of Product Allocation (PAL)
To be continue with S/4HANA Back-order processing in Part II …
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