Exploring Supply Creation-Based Confirmation (SBC)

As described in Unit 4, Lesson 3, with the development of embedded PP/DS in SAP S/4HANA one important heuristic was missing. This was the heuristic to support the Capable-to-Promise (CTP) scenario from SCM/APO. Based on an unconfirmed / partially confirmed sales order, SCM/APO offered the possibility to execute a planning run for this header material, including all sub-components directly in the background. All this without the need for a planning run.

The result was a feasible production plan. With this "immediate" planning the SCM/APO system could create some capacity proven receipt elements. When SAP S/4HANA Advanced Planning was first introduced, this option was not provided.

Starting with SAP S/4HANA release 2022 a successor to this functionality has been made available: the product heuristic SAP_PP_SBC, which is now linked to planning procedure 3 - Cover Dependent Requirements Immediately.

Supply Creation-Based Confirmation (SBC) offers even more possibilities than CTP did.

Supply Creation-Based Confirmation (SBC) provides an integration between SAP S/4HANA Advanced Available-to-Promise (aATP) and Production Planning and Detailed Scheduling (PP/DS) in SAP S/4HANA. This integration enables confirmations of sales order requirements when the available quantity of the requested product is insufficient, based on PP/DS planning.

When creating a sales order, SBC executes an availability check for the requested product using the Supply Demand-Based Capability Check (SCC). The term capability check means not only checking for material availability, but also triggering supply creation for a requirement if necessary. This means that the system creates planned orders, purchase requisitions, or stock transfer requisitions in PP/DS for the missing quantity.

When creating the planned order, the system checks the available capacity of the resources and the availability of the components according to PP/DS logic. The system then uses the availability dates of the procurement proposals to calculate the confirmation date for the sales order.

The Supply Demand-Based Capability Check initiates one of the following availability checks followed by supply creation if necessary:

Product Availability Check (PAC) with supply creation:

The requirement is first checked by the product availability check based on ATP time series, and for the remaining quantity the system initiates supply creation.

Production Planning-Based Availability Check (PPAC) with supply creation:

The Net Requirements Calculation in PP/DS checks the requirement. The system initiates supply creation for the remaining quantity.

For creating supply, the sourcing process (PP/DS) matches demand and supply for all Bill of Material (BoM) levels according to the planning procedure maintained. Missing supply elements are planned and finally created (for example, planned orders and purchase requisitions). Based on the availability check results and the created supply elements, aATP then calculates order confirmations.

During the availability check, you can also use Product Allocation (PAL) checks at finished product level.

The results of the availability check and the supply creation are also displayed in the Review Availability Check Result screen and the Monitor BOP Run app.

You can use SBC for both make-to-order (MTO) and make-to-stock (MTS) production scenarios.

The Product Availability Check (PAC) in aATP checks the available supply for the requested quantity (based on the scope of check), including a check of existing supply elements (for example, production orders, purchase orders, purchase requisitions, or planned orders).

If PAC cannot confirm the entire quantity, additional supply needs to be created. A request is sent to PP/DS where the supply creation for the remaining, open quantity of the request is planned. The PAC confirmation and the supply creation result will then be sent back as one confirmation for the check. If the requested quantity can be confirmed entirely, supply creation is not required.

Using the PAC with supply creation, you can also use sales and capacity product allocation for finished products.

Requirements are checked by the Production Planning-Based Availability Check (PPAC) using the Net Requirements Calculation in PP/DS. PP/DS checks for existing supply elements in the system (for example, production orders, purchase orders, purchase requisitions, or planned orders). If existing supply elements cannot fulfill the required quantity of the order, PP/DS plans the supply for the missing quantity and creates temporary supply elements that get assigned to this requirement. The result is returned to aATP and the system calculates a confirmation based on the check and the supply creation result, and creates a delivery proposal. When saving the sales order, the temporary supply elements are converted to permanent supply elements.

Special features depending on the used planning strategy:

Make-to-order strategy:

In make-to-order production scenarios, if you recheck the sales order (for example, after a quantity or date change), all supply elements created by the previous check are deleted and new supply elements are created.

Make-to-stock strategy:

In make-to-stock production scenarios, supply elements are not re-created after a recheck of the sales order.

When you have created and saved the sales order, modifying the existing sales order (increase/decrease the quantity, change the date) leads to the supply elements being adapted and another check being carried out. In most cases, the supply elements will not be deleted and re-created.

If you cancel or delete the sales order, the corresponding supply elements will also be deleted (in case of MTO and MTS).

Prerequisites for the usage of Supply Creation-Based Confirmation (SBC):

Supply Creation-Based Confirmation (SBC) needs to be activated in the customizing of aATP, based on the checking group:

In addition, there is a selection necessary which method (PAC or PPAC) of Supply Creation-Based Confirmation should be executed. The existing methods are already described. This parameter is also defined in the customizing of aATP:

On the other hand, there are also settings in the PP/DS environment (Customizing) necessary. First of all, the necessary Strategy Profiles (SAP_SBC or SAP_BSBC) need to exist:

The strategy profile SAP_SBC ensures a finite planning using the method Find Slot, while the strategy profile SAP_BSBC tries to find a bucket with free capacity. Which kind of method will be executed can be defined in the Global Parameter and Default Values in PP/DS (Advanced Planning).

After assigning of planning procedure 3 - Cover Dependent Requirements Immediately in the material master as a prerequisite, the system creates automatically a covering element (planned order for in house production) for every customer order line taking into account the existing stock on hand (taking into account the scope of check):

Based on the existing configuration the Supply Creation-Based Confirmation ensures that the PP/DS generates a feasible plan during background planning without overloads due to the assigned strategy profile SAP_SBC:

Result: Creation of a suitable plan, covering demands without a capacity overload.

During sales Order creation the sales demands will be represented as Temporary Requirements as long as the sales order is not saved.

The system creates temporary covering elements during sales order creation and final saving. One for each order line.

The saving of the sales order finalized this process and replaces the temporary requirement with a "real" sales order item.