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Dear SAP Friends

In this Blog Will try to understand the Difference between SAP APO (Advanced Planning and Optimization) and SAP Integrated Business Planning, in short, we call SAP IBP.

Before we jump to understand the difference between SAP APO and SAP IBP, Let's have a look at what changes are made in SAP Eco Space.

SAP APO used to be the go-to planning tool for use with PP, but it has since been deprecated in favour of SAP IBP. The core components of SAP APO are as follows:

  • Demand Planning

  • Supply Network Planning

  • Production Planning and Detailed Scheduling (now part of SAP S/4HANA)

  • Global Available-to-Promise (GATP)

  • Transportation Planning/Vehicle Scheduling

Majorly 2 components have been bought into SAP S/4HANA

  1. PP/DS

  2. Some functionalities of gATP have bought into SAP S/4HANA

Infect SAP S/4HANA aATP is much more matured compared to SAP APO gATP.

It has components like

  1. Product Availability Check (PAC)

  2. Back Order Processing (BOP)

  3. Product Allocations (PAL)

  4. Alternative Based Confirmations (ABC)

  5. Release for Delivery (RefDy)


To know more about SAP IBP refer to SAP Integrated Business  Planning

Now let's compare SAP APO and SAP IBP Tools to understand more


To know more you can Refer to below Blogs and Videos

SAP Integrated Business Planning | SAP Blogs

ABC - Alternative Based Confirmation - YouTube

SAP Product Allocation (PAL) - YouTube

Advanced Available to Promise (aATP) - YouTube

SAP S/4HANA Product Allocation Process | SAP Blogs

What's New in Advanced Available-to-Promise (aATP) Highlights 1909 | SAP Blogs

Advanced Available-To-Promise (aATP) with Back Order Processing in HANA 1809 | SAP Blogs



Please share, Like and Comment on anything else you want to share or add points.

Thanks & Regards

Ruthvik Chowdary

SME – S/4HANA Logistics

SAP Ariba P2P
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