You can use the IBP_CONSUMPTION function for a variety of business scenarios. The most typical use-case is forecast consumption. During this process, the actual sales orders reduce the forecast values. When creating an order, you can use the IBP_CONSUMPTION function to see how the forecast has been consumed.
Typically, the IBP_CONSUMPTION function will be implemented in order-based planning areas (copy of SAP7F).
The consumption of the forecast follows a predefined strategy. When configuring the IBP_CONSUMPTION function, you can set the direction in which the periods are considered for consumption of the forecast and the number of forward or backward periods. Optionally, you can set a time frame within which consumption is calculated and the boundaries that stop the calculation from running.
Parameters of the IBP_CONSUMPTION Function
The IBP_CONSUMPTION function has six mandatory and two optional parameters.
This first parameter is the amount that is reduced by the amount of the second parameter during the algorithm's execution. It can be a stored, stored, calculated, or key figure.
This would be the forecast key figure in the forecast consumption use case.
This second parameter represents a demand, order, or requirement whose amount is reduced from the first parameter. It can be stored, stored, and calculated or can be a calculated key figure.
In the forecast consumption use case, this could be the sum of all sales orders, deliveries, and goods issues.
This key figure is necessary to link the attribute values of the consumption master data and the planning level on which the consumption takes place.
It can be a stored, stored and calculated, or calculated key figure.
The planning level of the 3rd parameter must be time-independent and have only one root attribute.
The root attribute of this planning level must also be a (root or non-root) attribute of the planning level of the first and second input key figures, and its type must be integer. This single shared attribute will be the join attribute.
This fourth parameter of the IBP_CONSUMPTION function is an integer-type attribute that determines the direction in which the amount of the first parameter is reduced in time. The consumption calculation always starts in the current period, when the sales order, other demand, or requirement represented by the second parameter arrives. Based on this parameter, after the quantities of the current period have been consumed and there are still open quantities in the second parameter left, the calculation reduces the quantities in the past and/or future periods.
The default value is 0 (meaning, first forward, then backward).
This fifth parameter is an integer-type attribute that represents the number of periods where the quantities of the first parameter are reduced going backward in time. For example, 1 means the period right before the current period. If you want to consume only the amount in parameter one forward, you must set its value to zero.
It must be a positive number or 0.
The default value is 0.
This sixth parameter is an integer-type attribute that represents the number of periods where the quantities of the first parameter are reduced in the future. For example, 1 means the period right after the current period. If you want to reduce the values of the first parameter quantities going backward only, you must set its value to zero.
It must be a positive number or 0.
This seventh parameter is an integer value representing the time profile level within which consumption is calculated. It works similarly to the time boundary level in time-series-based forecast consumption.
If this parameter is set, the 8th parameter becomes mandatory as well.
For example, if the time profile level 3 is calendar week and the calculation is based on, for example, a daily (or lower than a calendar week) planning level, then if the time frame is set to 3, consumption is calculated within a calendar week. It means that the calculation can't go beyond the limits of the calendar week.
This eighth parameter of the is an integer-type attribute representing the time frame's left and/or right boundary where the calculation must stop. Left means the beginning, and right means the end of the time frame. If a boundary is set, the calculation must stop at this boundary.
If this parameter is set, the 7th parameter becomes mandatory as well.
For example, if the boundary value is set to 1(Left and Right) and the calculation time frame is a month, then the calculation mustn't go beyond the limits of the month. However, if it's set to 2 (Left), the calculation can't go into the preceding month but can go into the next month. If it's set to 0 (Off), the boundaries are removed, and the calculation can run into the previous month and the next month.
The default value is 0.
Setting up this calculation is challenging and should be approached as a mini-project. For an in-depth description of the configuration steps, refer to the Configuration of the IBP_CONSUMPTION Function on the SAP Help portal.