Explaining Product Availability Check

The product availability check is a background function that provides information on when, and in which quantity, a requirement (for example, a sales order item) can be fulfilled. The result of the product availability check is a confirmation. After the check is executed, the quantity is reserved and unavailable for any other requirements.

The product availability check compares a requirement with elements that influence the quantity of a material available at a given time, such as stock, sales orders, deliveries, purchase orders, and purchase requisitions. These elements determine the quantity of material available in stock today and in the future.

The product availability check calculates the quantity and the date that can be confirmed.

Let’s begin by exploring the topic of scheduling.

Based on the required delivery date, the system determines when the necessary materials must be available. Through delivery and transportation scheduling, it calculates several key dates for each item in the sales order.

The critical date for the availability check is the product availability date. By this date, sufficient stock must be available to fulfill the confirmed customer delivery. The availability check is performed at the plant level for each relevant order item.

The first type of scheduling performed for an order item is backward scheduling. In this process, the system checks whether the required delivery date can be met by working backward from that date to determine the latest possible start date for each step in the supply chain.

In backward scheduling, the required delivery date is the starting point. The system calculates key logistics milestones by working backward from this date, using predefined time elements stored in the system:

• Transit Time

  The system subtracts the transit time from the required delivery date to determine the goods issue date.

• Loading Time

  It then deducts the loading time from the goods issue date to calculate the loading date.

• Transportation Lead Time

  From the loading date, the system subtracts the transportation lead time to establish the transportation planning date.

• Pick/Pack Time

  In parallel with transportation planning, the system subtracts the picking and packing time from the loading date to determine the product availability date. This is the date by which the material must be available in stock to fulfill the order.

The product availability date and the transportation planning date are critical in determining whether the customer's requested delivery date can be confirmed.

• Scenario 1: Both dates are in the future

  If both the product availability date and the transportation planning date fall after the order date, and the material is available on the product availability date, the system can confirm the customer's requested delivery date. A schedule line is created in the sales document item, indicating that the confirmed delivery date matches the requested delivery date. The corresponding delivery must be created on the earlier of the two dates: the product availability date or the transportation planning date.

• Scenario 2: One or both dates are in the past

  If either the product availability date or the transportation planning date is before the order date, the system cannot confirm the requested delivery date. In this case, the first schedule line for the item remains unconfirmed.

  The system then proceeds with forward scheduling to determine the earliest possible delivery date that can be confirmed.

If the material is not available on the calculated product availability date, or if either the product availability date or the transportation planning date falls before the order date, the system initiates a second attempt to determine an availability date - this time using forward scheduling.

In forward scheduling, the system calculates the earliest possible delivery date by working forward from the order date, considering parallel and sequential processes and using predefined time elements stored in the system. Here's how it works:

1. Transportation Lead Time

   The system adds the transportation lead time to the order date, resulting in a calculated possible loading date.

2. New Product Availability Date

   Simultaneously, the system determines the earliest date the material is available in the warehouse. It then adds the picking and packing time to this date to calculate a second possible loading date.

3. Loading Date

   The system compares the two dates calculated in steps 1 and 2. The later of the two becomes the new loading date.

4. Goods Issue Date

   The loading time is added to the loading date to determine the goods issue date.

5. Confirmed Delivery Date

   Finally, the transit time is added to the goods issue date to calculate the delivery date that can be confirmed.

Let’s continue by exploring how the available quantity is calculated. Order fulfillment manager Efia and consultant Julia introduce you to the topic.

We’ll now examine the key influencing factors for the availability check.

The availability check is a configurable process used to determine whether sufficient stock is available to fulfill a requirement. Its behavior is influenced primarily by the business process and the material/plant combination.

1. Business Process

   The business process refers to the type of transaction being executed - such as creating a:

   • Sales order
   • Delivery
   • Stock transfer order
   • Production order
   • Reservation

   Each business process is assigned a checking rule, which works in combination with the checking group to define the scope of the availability check.

   For example:

   • When creating a delivery, you might include purchase orders as incoming receipts but exclude purchase requisitions due to their lower reliability.
   • When creating a sales order, you may choose to include purchase requisitions to provide a broader view of potential supply.

2. Material/Plant Combination

   A checking group can be assigned in the product master record at the plant level, enabling:

   • Different checking groups for the same product across different plants.
   • Unique checking groups for different products within the same plant.

   This configuration allows the availability check to be customized based on the material/plant combination, ensuring alignment with the logistical and operational needs of each location and product.

3. Scope Configuration

   The scope of the availability check is determined by the combination of:

   • The checking group (material/plant-specific)
   • The checking rule (business process-specific)

   For each combination of business process and material/plant, you can configure whether specific elements should be considered in the availability check.

   • Stock Elements Considered

     In addition to unrestricted-use stock (always considered available), you can choose to include:

     • Safety stock
     • Quality inspection stock
     • Blocked stock
     • Subcontractor stock
     • Stock in transfer
     • Restricted-use batch stock

   • Requirements That Reduce Available Stock

     You can specify which existing requirements should reduce the available stock, such as:

     • Sales requirements (e.g., sales orders)
     • Deliveries
     • Stock transport requirements
     • Subcontractor requirements
     • Reservations
     • Dependent requirements

   • Future Supply Elements

     You can also decide whether to include the following receipt elements in the availability check:

     • Purchase requisitions
     • Purchase orders and scheduling agreements
     • Shipping notifications
     • Planned orders
     • Production orders

   This level of configurability ensures that the availability check reflects both current and future supply and demand, tailored to the specific needs of your business processes and logistics setup

4. Replenishment Lead Time Handling

   The replenishment lead time is the time required to procure a material - either through in-house production or external procurement.

   You can configure how the system should behave for requirements that fall outside the replenishment lead time. Options include:

   • Fully confirmed – The system confirms the requirement even if it lies outside the lead time.
   • Not confirmed at all – The system does not confirm the requirement if it cannot be fulfilled within the lead time.
   • Checked according to specified rules – The system applies predefined rules to determine confirmation, regardless of the replenishment time.

Watch the following interactive demo to see the result of an availability check when creating a sales order.

Note

The Display Product Availability app allows you to check the availability of one or more materials at the plant or storage location level for different contexts. The availability context (sales or delivery) determines which stocks, receipts and issues are included in the availability check.