SAP IBP Configuration - Use the Coverage Function to Calculate Periods of Coverage in SAP IBP

[Peng_Lu]

Use the IBP_COVERAGE function to calculate coverage for a key figure in one step.

To calculate coverage, use the IBP_COVERAGE function in the calculation definition of key figures in the Planning Areas app.

You can use the IBP_COVERAGE function for a variety of business scenarios. For more examples and implementation ideas, see Days of Coverage and Projected Stock.

We will determine the coverage of the demand element with the initial inventory using the IBP_COVERAGE function. In our example, we will adapt the Demand by Location key figure and then calculate coverage of this key figure.
We will also use a commonly used function ROUND.

https://help.sap.com/docs/SAP_INTEGRATED_BUSINESS_PLANNING/bf99e931b8d44aafb4e306ec3602cbdd/c75f25cd...

Create Configuration

Create a key figure called ADAPTEDDEPDEMAND at the PERPRODLOC planning level, displaying the rounded one-hundredth of the Demand by Location key figure.
Use the following data.

Field	Value
Key Figure ID	ADAPTEDDEPDEMAND
Base Planning Level	PERPRODLOC
Name	Adapted Dependent Demand

Add the following calculation: ADAPTEDDEPDEMAND@PERPROLOC = ROUND(("DEPENDENTDEMANDQTY@PERPRODLOC"/100),0)

This formula effectively converts the dependent demand quantity into a percentage (by dividing by 100) and then rounds it to the nearest whole number.

Add the following calculation: ADAPTEDDEPDEMAND@MTHPRODLOC = SUM("ADAPTEDDEPDEMAND@PERPRODLOC")

2. Create a key figure called COVERAGE at the MTHPRODLOC planning level, displaying the coverage of the Adapted Dependent Demand.
Use the following data.

Field	Value
Key Figure ID	COVERAGE
Base Planning Level	MTHPRODLOC
Name	Months of Supply
Calculated	Selected

Add the following calculation:

COVERAGE@MTHPRODLOC = IBP_COVERAGE("ADAPTEDDEPDEMAND@MTHPRODLOC","INITIALINVENTORYQTY@MTHPRODLOC",1,''NEXTBUCKET'', ''USEZEROSTOCK'',''PASTCURRENTFUTURE'')

Here's a breakdown of the parameters:

• "ADAPTEDDEPDEMAND@MTHPRODLOC": The key figure representing the adapted dependent demand.
• "INITIALINVENTORYQTY@MTHPRODLOC": The key figure representing the initial inventory quantity.
• 1: The coverage period, indicating the number of periods to look ahead.
• 'NEXTBUCKET': Specifies that the calculation should consider the next bucket (time period).
• 'USEZEROSTOCK': Indicates that zero stock should be used in the calculation if no stock is available.
• 'PASTCURRENTFUTURE': Specifies the scope of the calculation, covering past, current, and future periods.

This function will calculate how long the initial inventory can cover the adapted dependent demand, considering the specified parameters.

3. Activate your planning area

Test Your Solution in the Planner Workspace

Test your solution by creating a Planner Workspace using the following information.

Field	Value
Time:
Time Period	Monthly
From	Current Month
To	Current Month + 12
Rolling	Yes
Attributes:
Product ID	Selected
Location ID	Selected
Key Figures:
Adapted Dependent Demand	Selected
Demand by Location	Selected
Initial Inventory Qty	Selected
Months of Supply	Selected
Filters:
Product ID	x100 Phone

initial inventory qty in Feb can cover whole adapted dependent demand of MAR and partial of APR.

coverage = 1+ (50-44)/43 = 1.139534