Response Planning and Available-to-Promise (ATP)

Objective

After completing this lesson, you will be able to describe the interaction between SAP IBP Order-Based Planning and Available-to-Promise (ATP).

Response Planning and Available-to-Promise (ATP)

As an important and integral part of the order fulfillment process, SAP S/4HANA advanced Available-to-promise provides accurate and reliable order promise dates considering the relevant stock in real-time while protecting companies’ business priorities and profitability goals.

An SAP Supply Chain Planning Benchmarking Survey, covering more than 370 companies across 20 industries, indicated the following:

Organizations where intelligent commitments (for example, based on inventory, manufacturing, and supply constraints) can be made to accurately schedule delivery dates in real time, to fulfill orders that have on average 38% fewer Orders Backordered (in %) (MTS)
When the stock is in limited quantity, organizations that can prioritize customers, commit an allocation quantity, and then honor that commitment as the product becomes available thus having an average 24% lower Expedited Transportation Spend

Three main scenarios are possible for combining IBP Response Management and ATP.

In the first scenario, the confirmation happens in SAP IBP and sent to SAP S/4HANA ATP.

In the next two scenarios, allocations are sent from SAP IBP to SAP S/4HANA ATP.

However, note that only one system can own the confirmation functionality.

The figure describes the interaction between IBP response management and available-to-promise (ATP).

Why Use Response Planning Run in SAP IBP?

You should use the Response Planning Run in SAP IBP for the following reasons:

Consideration of multi-level supply network for order confirmation
Priority-based algorithm with the configurable source of supply determination
Priority-based algorithm with configurable demand prioritization
Consideration of constraints (capacity, material availability) in a multi-level supply network
Pegging and Pegging visibility (order network linking demand to supply)
Strong simulation capabilities (for example, incremental demand, sales order simulation)
Aligned prioritization of supply planning and demand/order confirmation (one planning run, one set of rules)
Strong supply planning capabilities incl. forecast consumption

Main Differences of IBP Response Planning Run to ATP/Backorder Processing

Advanced Available-to-Promise (aATP) is a business function in SAP S/4HANA that responds to order fulfillment inquiries in Sales and Production Planning. The order fulfillment inquiries consist of required materials and plants, as well as their respective requested quantities and dates. The result of the ATP check is based on the current stock situation and any future, anticipated, or planned stock receipts and takes concurrent orders into account. Furthermore, additional restrictions based on any other order attributes (like region or customers) can be applied. The ATP function generates confirmation proposals for the requested material and plant, including confirmed quantities and dates.

Backorder processing can be used to check material availability when the demand or supply situation in your sales order fulfillment process has changed and you want to check if previously calculated confirmations for sales orders are still realistic - for example:

A sales order is canceled, thereby freeing up stock quantities.
An important customer increases the requested quantity for material and would therefore like to consume stock, which is currently confirmed for other sales orders.
A planned supply (production order) is running late.

Not reacting to the changed availability situation can result in confirmed quantities exceeding available quantities. This can result in availability checks for overconfirmed materials failing, leaving you unable to release materials for delivery creation.

The following lists the main difference of an IBP Response Planning Run to ATP / Backorder Processing:

Supply creation and order confirmation within one planning run
Consideration of multi-level supply network
Planning is done on location material level (no single order confirmation possible)
No ATP online check possible
No delta planning functionality (keep the order confirmation)
No order consolidation / delivery groups / MISL functionality /…
No detailed ATP categories selectable as the scope of check
Today: no scope of check; no delivery group; no scheduling of sales order dates

Use the product allocation planning as a bridge between the planning and order fulfillment side processes. Ensure the right amount of supply is being allocated to the right channel partners.

The figure describes the Supply Planning with Order Confirmation Run Response Planning and Available-to-Promise (ATP).

SAP S/4HANA Product Allocation

Competitive order processing that aims to deliver the required quantity to the customer at the requested time, demands precise planning and control mechanisms. Unpredictable problems, such as breakdowns in production or increased demand, can lead to critical situations in order processing and must be brought under control before they arise.

Product allocations provide this sort of control and enable your company to avoid these critical situations in demand and procurement. The equal allocation of products in short supply, and speedy reaction to bottlenecks, and changing market situations must be possible.

Depending on the period, you can allocate products for specific customers or regions. Using product allocations in situations in which a product is in short supply, you can avoid allocating the entire available quantity to the first customer, which either delays the confirmation of subsequent sales orders or makes confirmation impossible. Allocation integration between SAP S4/HANA and SAP IBP is done using CPI DS.

The following figure shows the transfer of Allocation from SAP IBP to SAP S/4HANA ATP.

he figure describes the interaction for Allocations between IBP response management and available-to-promise (ATP).

Supply Planning with an Order Confirmation Run

ExerciseStart Exercise

Business Example

The business process described in this exercise creates order confirmations and an adopted supply plan based on prioritized demands, allocations, and supply chain constraints.

Here is an overview of the business process:

The Account Planner checks to see how demand is prioritized according to a specific prioritization rule.
The Account Planner executes the Supply Planning with Order Confirmation run; this run calculates a new supply plan, confirms sales orders according to the selected prioritization rule, and consumes product allocations.
After evaluating confirmations and analyzing gating factors, the Account Planner tries to resolve any existing issues. To do this, the Account Planner uses a scenario in which gating factors can be removed, for instance, by adjusting the existing product allocations. All necessary simulations and reiterations can be executed in this scenario without changing the base planning version.
When the simulation results are satisfactory, the Account Planner promotes the scenario to copy the new adjusted allocations to the base planning version. Finally, the Account Planner executes the Supply Planning with Order Confirmation run again in the base version.

Note

In this exercise, when you see ##, replace the characters with your group number.

For simplicity, this exercise does not consider the unconstrained forecast, but will use the allocation generated from the Supply Planning with Order Confirmation run exercise.

This exercise is executed in the base version; however customers will likely perform the confirmation run in a Planning version. After performing what-if analysis, the results will be copied to base version and integrated to SAP S4/HANA

Steps

Copy key figures, Allocation and Allocation Adjusted, that were created during Supply Planning with Allocation Creation run exercise, from Planning Version 001 (PV001) to Baseline Version.
1. In the General Planner Group, choose the Application Jobs tile.
2. Choose Create and select the Job Template Copy Version Operator.
3. Accept the setting in Scheduling Information step (checkbox Start immediately).
4. Select ZSAP7F for the Planning Area field.
5. Check that From Version is set to Planning Version 001 (PV001).
6. Check that To Version is set to Base Version.
7. In the Filter field, select your filter T##_PHONE_A.
8. Select the key figures, Allocation and Allocation Adjusted.
9. Choose Schedule to start the planning run. You will return to the list of jobs. Wait until your job is completed.
Review the data in the planner workspace.
1. In the General Planner Group, choose the Planner Workspaces tile.
2. Select your workspace IBP_800 ## and press the Workbook icon in the upper left corner of the Planner Workspaces screen. Choose your workbook Forecasts and Constraints ##.
3. On the Data section on the top of the workbook, ensure the Version/Scenarios is set to Base Version and the Plan mode is selected. Choose Go.
4. In the Forecast and Allocations ## component, observe the values of key figures Sales Order Requested and Final Allocation. Only Customer 01 has an allocation generated. This is because we generated allocations only with unconstrained forecast for Customer 01 in the Supply Planning with Allocation Creation run exercise. Customer 02 and Customer 03 had no unconstrained forecast and so no allocations were generated.
Simulate Demand Prioritization in the Base Version.
The Simulate Demand Prioritization app enables you to check how demand is prioritized according to a selected rule. Before the Supply Planning with Order Confirmation run, you can check ranked demands to make sure that the demand prioritization meets your business requirements.
1. Log on to the SAP Integrated Business Planning web user interface.
2. In the Account Planner Group, open the SAP Fiori app Simulate Demand Prioritization.
3. On the Filter bar, select version ZSAP7F / Base Version from Version ID drop-down list.
4. Select planning run profile PRP_CONFIRM.
5. Select Network by Location Product Attributes.
6. Select your finished material: TXX_PHONE_A, and start the simulation.
7. In the Prioritized Demands table, check the ranked demands.
Execute the Supply Planning with Order Confirmation run in Base Version.
1. In the General Planner Group, choose the Planner Workspaces tile.
2. Select your workspace IBP_800 ## and press the Workbook icon in the upper left corner of the Planner Workspaces screen. Choose your workbook Forecasts and Constraints ##.
3. On the Data section on the top of the workbook, ensure the Version/Scenarios is set to Base Version and the Plan mode is selected. Choose Jobs → Run Application Job app on the top of the screen..
4. In the Job Template field, select ZOrder-Based Planning Supply Planning Run CONFIRM PWS.
5. In the Ad-hoc Parameters field, select Scenarios and Versions as Base Version, and set T##_PHONE_A as a planning filter.
6. In the Schedule Single Run field, verify thatStart Immediately is specified.
7. In the Parameters section, ensure that the following is specified:
  - Planning Algorithm: FIN_HEUR
  - Network/Subnetwork Selection: 5
  - Planning Run Profile: PRP_CONFIRM
  - Generate PRM Data: 0
  - Planning Start: Today
8. Choose Schedule, and select Continue.
9. Check that the status of the job shows as Finished.
Review the planning results using View Confirmations app.
1. In the Account Planner Group, open the SAP Fiori app View Confirmations.
2. Select your finished material: TXX_PHONE_A and version ZSAP7F/Base Version.
3. Set Date Horizon so that all sales orders are included, for example, current date + 60 days and choose Go.
4. Scroll to the right and adjust the column width to see the Confirmed Quantity and Gating FactorsProduct Allocation Gating Factor in the figure below.
  Note
  If the Gating Factors are not displayed in the table, choose the settings icon of the item view and assign the Product Allocation and Resource Gating Factor.
5. You should see that order confirmations are in line with the prioritization, product allocations, supplier constraints, resource capacities, and lead times.
6. Sales Order for Customer 1 is fully confirmed.
7. Sales Order for Customer 2 and Customer 3 have two gating factors, Product Allocation and Resource Gating Factor.
8. Drill down to the details for a sales order item for Customer 2 by clicking on it.
9. Check competing demands for the same location-product.
10. Expand the order network and check that not only the finished product but also the components requirements quantity is pegged and check the requested and confirmed dates.
11. There should be gating factors for Product Allocation Exceeded and Resource Overload as shown in the following figure.
  Note
  The planning results can also be viewed in your workspace.
  The quantities in the key figures, Sales Order (Confirmed), should match the confirmation situation of your sales orders. The key figure, Allocation Consumed, should match the confirmations.
Solve the Confirmation Issue of Gating Factors by Increasing the Capacity.
1. Return to the workbook Production ## in the Planner Workspaces app.
2. In the General Planner Group, choose the Planner Workspaces tile.
3. Select your workspace IBP_800 ## and press the Workbook icon in the upper left corner of the Planner Workspaces screen. Choose your workbook Production ##.
4. On the Data section on the top of the workbook, ensure the Version/Scenarios is set to Base Version and the Plan mode is selected. Choose Go.
5. The component Production Capacity ## appears.
6. Select Filters in the Settings section.
7. On the Filter tab, ensure that all resources at location FA71 for your user TXX (WTXX_A1_FA71001, WTXX_M1_FA71001 and WTXX_P1_FA71001) are assigned.
8. Choose OK.
9. Increase resource capacity as indicated in the gating factor by adjusting resource capacity for each resource and each bucket to 1.200 using the key figure Capacity Available (Adjusted).
10. Optional: In the Web UI app include Requirement Type Description: Sales Order. This shows the Gating Factors only for Sales Orders, that is, Item Category TAN.
11. For example, as shown in the following figure, resources T20_A1_FA71001 and T20_M1_FA71001 are over-loaded by 720min on June 28 and Resource T20_P1_FA71001, by 720 min on June 30.
12. The available capacity for these resources has been increased by 720 to 1200 min in the key figure, Capacity Available (Adjusted).
  Note
  Calculation as follows: 480 (Initial Capacity) + 720 (Additional Capacity) = 1200.
13. Choose Save Changes and execute the Supply Planning (Confirmation Run), as shown in step 4 above.
  Note
  Only for exercise, the capacity was increased directly in Base Version. The planners would, however, perform this step either in a planning version or by creating a scenario. We discuss scenario creation in the next step to solve the Allocation Issue.
Solve the Confirmation Issue of Allocation by creating a scenario in Web UI, executing the job in that scenario, and, when satisfied, promoting the scenario.
1. In the General Response Planner Group, choose the Manage Versions and Scenarios tile.
2. Select ZSAP7F / Base Version and New Scenario.
3. Name the scenario Increased Allocation ## and select in the fieldBased on Version : ZSAP7F / Base Version. Choose Save.
4. Return to the workbook Forecast and Constraints ## in your Planner Workspaces app.
5. In the General Planner Group, choose the Planner Workspaces tile.
6. Select your workspace IBP_800 ## and press the Workbook icon in the upper left corner of the Planner Workspaces screen. Choose your workbook Forecasts and Constraints ##.
7. On the Data section on the top of the workbook, in Select Version / Scenarios, choose the scenario created in the step above.
8. Ensure the Plan mode is selected and choose Go.
9. Now you are working with that scenario Increased Allocations ## .
  Note
  To solve the Product Allocations Quantity Exceeded issue highlighted by the gating factor analysis, adapt your newly created scenario. In this example, you change the quantity of Allocations Adjusted in the scenario and later simulate the order confirmation for this change.
10. Increase the allocation quantity using the workspace. On the dates with values for the key figure Sales Order Requested, enter the exact quantity into the key figure Allocation Adjusted. This step needs to be done for the Sales Orders of Customer 2 and Customer 3.
11. Choose Save and review quantity in the Allocations Final key figure.
12. Transition to the Application Jobs and select the job template Order-Based Planning: Supply Planning Run.
13. In the General Planner Group, choose the Application Jobs tile.
14. In Step 3, enter only the following parameters.
  Parameters Value
  Planning Algorithm Finite Heuristics
  Planning Area ZSAP7F
  Version Baseline
  Scenario Increased Allocation ##
  Planning Run Profile PRP_CONFIRM
  Product TXX_PHONE_A
15. Choose Schedule.
16. After completing the job, return to the workbook Forecast and Constraints ## in your Planner Workspaces app.
17. In the General Planner Group, choose the Planner Workspaces tile.
18. Select your workspace IBP_800 ## and press the Workbook icon in the upper left corner of the Planner Workspaces screen. Choose your workbook Forecasts and Constraints ##.
19. On the Data section on the top of the workbook, in Select Version / Scenarios, choose the scenario created in the step above and choose Go.
20. In the settings section of the Forecast and Allocations ## component, add the key figure Sales Order Confirmed.
21. Choose Apply.
22. The value of key figure Sales Order Requested now equals the values of Sales Order Confirmed for Customer 2 and Customer 3.
Promote the scenario to the Base Version.
Since you were satisfied with the simulation results in your scenario, you can now promote the scenario to the Base Version. With this promotion, Adjusted Allocations quantity will be copied from the scenario to the Base Version.
1. Log on to the SAP Integrated Business Planning web user interface.
2. In the General Planner Group, choose the Planner Workspaces tile.
3. Select your workspace IBP_800 ##.
4. On the upper right side of the screen choose Scenarios - > Manage Scenarios .
5. Select the checkbox besides scenario Increased Allocations ## and choose Promote.
  Note
  A pop up appears with the message Are you sure you want to promote this scenario?. Confirm the pop up to promote the scenario.
6. The increased values of key figures, Allocation Adjusted and Allocation Final, have now been copied from the Increased Allocations ## scenario to the Base Version.
Schedule the Supply Planning with Order Confirmation run based on Adjusted Allocations and view confirmations.
1. Execute the Supply Planning with the Order Confirmation run as described in Step 4 above.
2. After the run is completed, open the View Confirmations application in the SAP Integrated Business Planning web user interface.
3. In the Account Planner Group, open the SAP Fiori app View Confirmations.
4. Select your finished material: TXX_PHONE_A and version ZSAP7F/Base Version.
5. Set Date Horizon so that all sales orders are included, for example, current date + 60 days and choose Go.
6. Observe that sales orders for Customer 1, Customer 2, and Customer 3 are fully confirmed and have no gating factor
7. In the workbook component ,Forecast and Allocations ##, analyze the product allocations details by checking the following key figures: Allocation, Allocation Consumed, Allocation Remaining (if required key figures are not in planning view, add them).
8. You can also check the key figures, Sales Order Requested and Sales Order Confirmed, in the View Confirmation app.
View projected stock.
Check the planning results in the Projected Stocks app.
1. Log on to the SAP Integrated Business Planning web user interface.
2. In the General Response Planner Group, open the SAP Fiori app Projected Stock.
3. On the Projected Stock screen, on the Filter bar, select ZSAP7/Base version and your material number TXX_PHONE_A.
4. Choose Current Date + 56.
5. Set the horizon end date, for example, Go.
6. Expand the view by selecting the relevant location-product line.
7. Choose DC71 as location and check the Element view.
8. In the Stock Projection table check the following:
  - Requirement information (Type of Receipt or Requirement column): Sales Order.
  - Receipt information (Type of Receipt or Requirement column) Stock transfer Requisition.
Check the integration result.
Check the outbound integration result on the SAP S/4HANA side. The order number of MRP elements match those you seen in the previous step.
1. In the SAP S/4HANA system, access the transaction by entering the transaction code md04.
2. On the Stock Requirement list, enter your material number TXX_PHONE_A and DC71.
3. You will observe that the Stock Transfer Requisition from Step 11 (View Projected Stock) has a number, as shown in the following figure.
4. Exit out of the Stock Requirement screen.
5. In the SAP S/4HANA system, access the transaction by entering the transaction code va03.
6. Choose one of the three Sales Order Numbers confirmed earlier in SAP IBP.
7. In the Display Standard Order field, double-click on item and choose Schedule Lines.
8. Notice the Confirmed Order Quantity, as shown in the following figure.
Create Supply: Create Initial Stock in SAP S/4HANA.
Field Value
Date Today's Date
Good Movement 501
Trans./Event Goods Receipt
Reference Document Other
Product TXX_Phone_A
Quantity 1000
Storage Location 0001
Plant FA71
1. Login to SAP S/4HANA using credentials supplied by your instructor.
2. In the SAP S/4HANA system, access the transaction MIGO and enter the information from the table.
3. Enter the values shown in the Table above
4. Choose Post.
  In case you see some extra stock values, such stock can be "un-posted" in MIGO using Goods Issue with movement type 201 and cost center SAPDUMMY.
Create a production order from a planned order.
1. In the SAP S/4HANA system, access the transaction by entering transaction code /nmd04.
2. On the Stock Requirement list, enter your material number TXX_PHONE_A and FA71.
3. Select the recent planned order and choose Convert Planned Order to Production order, as shown in the following figure.
4. In the Create Production Order field, choose Save.
5. Refresh the Stock Requirement and the production order will be seen, as shown in the following figure.

Parameters	Value
Planning Algorithm	Finite Heuristics
Planning Area	ZSAP7F
Version	Baseline
Scenario	Increased Allocation ##
Planning Run Profile	PRP_CONFIRM
Product	TXX_PHONE_A

Field	Value
Date	Today's Date
Good Movement	501
Trans./Event	Goods Receipt
Reference Document	Other
Product	TXX_Phone_A
Quantity	1000
Storage Location	0001
Plant	FA71

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