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Detail Comparison of Availability

Check with SAP R/3 vs. SAP APO


Global Available to Promise

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Contents

Background

Overview of ATP check


System benefits of APO (GATP) check

High level comparison of APO GATP vs. R/3 ATP


Prerequisite for APO Global Available to Promise

Prerequisite for R/3 ATP check


Product Availability Check

Comparison APO GATP vs. R/3 ATP check

Gaps where R/3 short falls

Product Allocation Check

Comparison APO GATP vs. R/3 ATP check

Gaps where R/3 short falls

Product Substitution

Comparison APO GATP Product substitution vs. R/3 Material determination

Backorder Processing (BOP)


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Comparison APO GATP


vs. location
R/3 ATP
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Gaps where R/3 short falls

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Background

Sole purpose of this presentation is to compare Basic Methods of


availability check available in ECC SD and APO GATP, and to
prepare a case for GATP.
Why Client should go for GATP even when they are planning to
implement only Basic Methods of Availability check?

In R/3 few method of ATP check are available, but no new


developments are taking place in this area, wherein in APO these
methods are continuous evolving.

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Overview

An ATP check is an online search used for verifying that the requested
product can be provided by the company in the quantity and on the date
requested by the customer

Availability check is the integral part of the business process which


determines if the desired delivery qty can be met on the desired date. this
includes scheduling for picking and packing time and the time taken to
produce or obtain the material as well.

Availability checks are triggered as events in the OLTP system - either by the
R/3 System or a legacy system - and an ATP request is sent to APO for all
APO relevant products in the order .

In many OLTP systems, ATP functions are limited or nonexistent. Previous


ATP functionality as known from R/3 allowed product selection, single
substitution on plant level (one item during ATP check). In assembly order
processing normally infinite capacity had to be assumed, only in case of
direct generation of production orders or production order networks the
capacity check could be carried out.
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APO GATP vs. R/3 ATP check - System benefits of APO

System benefits
-

Fast response through liveCache* use for ATP check

High performance even with a high volume of data

Rich, state-of-the-art functionality in APO

* High performance, memory


resident data processor to perform
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planning and optimization
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APO GATP vs. R/3 ATP check High level comparison


ATP using ECC (R/3) SD
-

Basic availability check


Product allocation Check
Material Substitution
Back Order Processing and Order re-scheduling
Delivery scheduling and Transportation scheduling

ATP using APO GATP


-

Basic availability check


Enhanced Product allocation check
Advance level Product Substitution or Interchangeability
Enhanced Backorder processing.
Advance Transportation and shipment scheduling
Check Instruction to define steps of availability check (for e.g. First step as
Basic availability check or Product allocation check)
BI Reports on Available to Promise
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Advance Methods of Availability Check in APO GATP

Advance methods have clear cut edge over R/3 ATP check, and
not covered in this presentation .
-

Powerful new order promising functionalities delivered by Global ATP


Rule-based ATP (RBATP)
- Alternative locations, consolidation locations
Capable To Promise (CTP)
- Integrated check against production plan, considering finite
constraints
Multi level ATP (MATP)
- Check across BOM levels and confirming a cumulated availability
date after BOM explosion
Characteristic based ATP
- Checking for availability
of items matching certain characteristics
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Third Party Order
Processing

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Prerequisite for APO Global Available to Promise


ATP check for orders in question must be set to take
place in APO
R/3, mySAP ERP, or SAP CRM as an order
management system

What does that mean?!

Typically, in the setup of Global Available-to-Promise (GATP), you


specify (once) in the SAP APO Core Interface (CIF) that you want
your ATP customizing settings transferred from R/3 (or mySAP
ERP) to SAP APO
Then, in another integration model of the CIF, you must have
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Prerequisite for APO Global Available to Promise

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Prerequisite for R/3 ATP Prerequisite for R/3 ATP


ATP check must be set to occur in R/3

What does that mean?!

Youre using R/3 and not APO for ATP checks

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Product Availability Check (ATP check) the Basics

Product Availability check?


Product Availably check is done on Available to Promise (ATP) qty.
This type of check is performed dynamically for each transaction, taking
into account the relevant stock and planned goods movements with or
without replenishment lead time

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What Product Availability check should do?


-

Check against available to Promise: warehouse stock, the planned


inward movements of stock (production orders, purchase orders,
planned orders) and the planned outward movements of stock (sales
orders, deliveries, reservations).

Consider Replenishment Lead time

Note that both solutions R/3 and SAP APO can satisfy
all these items, to some extent
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Product Availability Check in APO Key Capabilities -Time


Series
Product availability check
Time series
Checking horizon
Characteristics (Advance Method)

Time Series
The Product Availability Check uses time series, that represent the
incoming and outgoing movements (receipts and issues) for a specific
product. Individual time series exist per ATP category on the product,
location, sub-location, and version level.

In order to distinguish between ATP checks with different degrees of,


certainty (risky vs. conservative), i.e. whether or not a product will be in
stock in the future, a time series exists for every type of ATP category.
For example, a conservative availability check can exclude purchase
requisitions from consideration.
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Product Availability Check in APO Key Capabilities -Time


Series

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Product Availability Check in APO - Key Capabilities


Checking Horizon

Checking horizon:

A method to check against replenishment lead time


Checking horizon, defines a time interval (checking date + period) in which
a product availability check can be carried out.
1) No checking horizon: The product availability check considers all receipt
elements and requirements elements within the scope of check.
2) Confirmation in checking horizon : A virtual, infinitely large requirement
in the checking horizon has the effect that all requirements can be confirmed
at the end of the checking horizon, and that receipt elements far in the future
have no influence on the short-term availability situation.
3) End check without confirming in the checking horizon: Receipt
elements and requirements elements after the end of the checking horizon
are ignored. Requirements that cannot be confirmed within the checking
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horizon remain unconfirmed.
This
has the effect that extended confirmation
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methods are activated, and requirements
in the future have no influence
on the short-term availability situation .
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Product Availability Check in APO - Key Capabilities


Checking Horizon

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Product Availability Check in R/3 - Key Capabilities


Checking Horizon

Product Availability check

Check on the Basis of the ATP Quantities


Product Availability check is performed dynamically for each transaction,
taking into account the relevant stock and planned goods movements with or
without replenishment lead time
Replenishment lead time (RLT): Replenishment lead time is the time that is
needed to order or produce the requested material
1) Availability Check Including Replenishment Time (RLT) : Availability is
only checked up to the end of replenishment lead time. After RLT, it is
assumed that goods will be available, and order can be confirmed with full
quantity
2) Availability Check Excluding Replenishment Lead Time (RLT) : If
replenishment lead time is not to be taken into account in the availability
check, the system can performDisclaimer
an unrestricted availability check.
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Product Availability Check - Comparison APO vs. R/3

APO

R/3 and mySAP ERP

Time series, (Fast response through


liveCache* use for ATP check)

Check Horizon
3 options Available

Normal database, reduced


performance

Replenishment lead time


2 options available
i) Don't include RLT
Ii) Include RLT

No new development in R/3

i) No Check
Ii) Consider Checking horizon,
Iii) End check without confirming
in the checking horizon

Characteristic based Planning


Parameter-Dependent Safety Stock
(PASS)

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Product Availability Check: Gaps where R/3 falls short


Advantages of APO

Time Series

Check Horizon with Calendar

New Features in APO


Parameter-Dependent Safety Stock (PASS)
Characteristic Based Planning (Advance Method)

No new developments in R/3

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Product Availability Check: Gaps where R/3 falls short


( cont.)

Business requirement for PASS:

Safety stock quantity will be calculated dynamically


Calculation of PASS depends on customer master data
Calculation depends on parameters of the field catalog

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Product Allocations - the Basics

When to go for Product allocation?

What Product allocation check does?

20

Product allocation allows you to manage the supply of scarce


products to customers so that each customer receives an allocated
amount

Allows to confirm Sales Order to the extent that particular customer has
an allocation.
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
Work only on selected product/ material where it is defied in master
data.
Allow to perform Allocation check on Material Availability date,
Requested delivery date etc.
Follows allocation procedure, which can be defined as per clients
requirement
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Note that both solutions R/3 and SAP APO can satisfy
all these items, to some extent
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Product Allocations in APO

Product allocation functionality

It allows you to manage the supply of scarce products to customers so


that each customer receives an allocated amount.

How is it used?

A product allocations check can act as a secondary check against the


sales order requested quantity. At first a basic ATP check against stock
and supply, can be performed, possibly resulting in a lower confirmed
quantity due to inadequate stock. This confirmed quantity can then be
checked against the allocation quota, further reducing the confirmed
quantity.

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Product Allocations in APO Field Catalogue and Product


Allocation Object

Field Catalogue

The field catalog contains the fields that are can be used for product
allocations and rules-based availability check.
For e.g. Product Hierarchy, Sales District etc.

Product Allocation Object

The reason for allocating products in the characteristics combination.


The product allocations object can be changed by the product
allocations control to reflect a change in the reason for allocating
products.
The product allocation object is assigned to a product allocation
procedure in the product allocations control. This assignment is a
prerequisite for product allocations.
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Product Allocations in APO Key capabilities - PAG

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Product Allocations in APO Key capabilities - PAG

The product allocations functionality combines planning tools with real-time


ATP functionality. The info structure (used in R/3) has been partially replaced
by the product allocation group (In APO).

The product allocation group defines a group of characteristics and is used


for saving product allocation quantities with their assignments.

Within the product allocation group, the planning hierarchy is replaced by


the characteristics combination. The characteristics combination contains
the values of the characteristics from the current sales order, and, as such,
corresponds to the lowest level of the planning hierarchy in which all
characteristics are assigned.

Using a characteristics combination in product allocation, a product


allocation time series is chosen. The check is then carried out against this
time series.
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Product Allocations in APO Key capabilities Product


Allocation Procedure

Product allocation procedures are defined as multiple steps of product


allocations groups.
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When a new order is checked, each
step (product allocation group) is evaluated
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sequentially. The result Toofsetthe
preceding
step
applied
to the subsequent step.

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Product Allocations in APO Key capabilities Product


Allocation Sequence

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Product Allocations in APO Key capabilities Product


Allocation Sequence (contd.)
The remaining open quantity of the previous check of the product
allocation procedure is cumulated to the next entry in the sequence of
product allocations procedures.
The system ignores the entry for the product allocation procedure in
the product master if it is also included in the sequence of product
allocation procedures.
The final result of the allocation check in the product allocation
procedure is calculated as the logical OR' offered by each of the
product allocation procedures.

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Product Allocations in R/3

Availability Check Against Product Allocation in R/3

If an ATP (available to promise) check is carried out during order entry, a


product allocation check is also carried out using the confirmed
quantity from the ATP check. If an ATP check is not carried out, the
product allocations are checked using the order requirement.

Overview of the control elements for the product allocation check

1. The product allocation determination procedure determines how


product allocation is carried out. It must be entered in the material
master record in the basic data screen.

2. The product allocation object is used by the availability check to


check against product allocations. During the product allocation check,
the system checks the product allocations stored in the planning
hierarchy that are created for each product allocation object.
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Product Allocations in R/3 (cont.)

3. In the product allocation hierarchy, an info structure is assigned to


the product allocation determination procedure. This info structure
influences the criteria which determine how the product allocations are
stored in the planning hierarchy.

4. In the "Control product allocation" node, one or more product


allocation objects are assigned to the product allocation determination
procedure. Every object has its own validity period.
During the availability check, the relevant object is determined using the
delivery date from the order. The object and the info structure from the
product allocation hierarchy are used to determine the planning
hierarchy in which the product allocations (being checked against) are
stored.

5. Similar to the availability check against ATP quantities, you must


specify whether a product allocation check is to be carried out at
requirements class level andDisclaimer
schedule line level or not.
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Product Allocations: Comparison APO vs. R/3


APO

R/3 and mySAP ERP

Define Product Allocation globally


or Location specific

Once Product Allocation is defined


in Mater Master, its applicable for all
plants.

Product Allocation Check at


different date (Material Availability
Date, Requested Delivery date or
Goods Issue date)

Only Requested Delivery date


option is available

Product Allocation Sequence is


available.

Userexits are available to fine tune


clients requirements
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Allocation can be easily managed/


viewed in DP Planning Book
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LIS Info structure are used to store


allocations

Product Allocations : Gaps where R/3 shorts fall


Advantages of APO

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option to carry out product allocation for a material only in selected


plants.
Plant-specific use of product allocation is a standard function, in the R/3
System it is NOT. In ECC the product allocation determination procedure is
entered in the basic data for the material master and applies to all plants for
the material, where in APO allocation procedure can be define at plant level
or global level. [oss note 607036]

option to carry out product allocation check on different dates


In APO, Product allocation check can be performed at Material Availability
Date, Delivery Date or Good Issue date of sales order, where as in ECC its
only Deliver date.

option to use sequence of steps for allocation check


In APO, Product allocation sequence can be defined so that multiple steps of
Product allocation procedure can
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be performed. In ECC only one Product
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allocation procedure
can be
defined

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Product Allocations : Gaps where R/3 shorts fall (cont.)

Manage Product allocations


In APO, Product Allocation are managed in DP Planning books, so all DP
functionally can be leveraged. Product allocations are easily managed in
DP Planning book, as compared to ECC LIS info structure

View consumption of Allocation from Sales Order


How Allocations are consumed by each sales Order can be viewed in
Product Allocation Group (PAG).

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Product Substitution the Basics

When is Product Substitution is used?

What should a Product Substation solution do?

Product substitution is used for checking for alternative products,


when originally ordered product is not available.

Look for alternate Product.


Product Interchangeability

Note that both solutions R/3 and SAP APO can satisfy
all these items, to some extent, but in R/3 has very limited
functionality as compared to APO
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Product Substitution (RBA) in APO key Capabilities

Product Determination Procedure


or Interchangeability Master Data

Rule Control

Calculation Profile

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Product Substitution in APO key Capabilities- Product


Substitution procedure

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Product Substitution in APO key Capabilities- Rule


Control

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Product Substitution in APO key Capabilities- Rule


Control Access Strategy

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Product Substitution in APO key Capabilities- Calculation


Profile

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Material Determination in R/3 key Capabilities

In SAP R.3 only Material determination/ Product selection is


available, which is approximation of Product substitution
functionality of APO.

Material determination enables the automatic substitution of


materials in sales documents during sales order processing. For
e.g. if a product is phased out and replaced by its successor
product. In sales Order, system will replace successor product if
predecessor product is out of inventory

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Product Substitution: Comparison APO vs. R/3


APO

R/3 and mySAP ERP

Global-multi location and system


check

Single Location Check


Manual Multi-plant availability view

Rules-based ( alternative products,


calculation rules)

Material Determination (Product


Substitution only)

Rule Control:
Complex Access Strategy
available for e.g. Work
forward, Work backward etc.

Works in One direction only

Calculation Profile

Allowed Delay
Allowed early confirmation
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consumption limit:

number of partial deliveries


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Product Substitution: Comparison APO vs. R/3 (contd.)

We have presented another paper on this topic

http://w3.ibm.com/services/bcs/km/knowledgeviewportal/kvfeServlets/display
Document.wss?syntheticKey=H204512T21199H74

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Backorder Processing (BOP) the Basics

When is an order a backorder?

What should a backorder processing solution do?

Simulate results.

Lend visibility to the situation

Run in a reasonable amount of time


Allow selection of orders based on business requirements

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When a schedule line doesnt have a confirmed quantity.

Allocate product in a prioritized way


Allow results to be sorted in a meaningful way

Note that both solutions Disclaimer


R/3 and SAP APO can satisfy
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all these items, toTo setsome
extent
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BOP in APO key capabilities

Multiple Operating Modes

Batch
Interactive
Simulative

Filter
Sorter
Support for Product Allocations

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BOP in APO Batch Backorder Processing - key


capabilities
2 modes:
Direct update of batch backorder processing

BOP runs and immediately updates the results to the database without
an intermediate step

Batch backorder processing with post processing

BOP runs, saves the results to a buffer, and protects the assigned
quantities with temporary quantity assignments

The results can be updated or rejected. If rejected, the temporary


quantity assignments are deleted

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BOP in APO Interactive Backorder Processing key


capabilities
Similar to batch backorder processing with postprocessing,
except for the addition of a pre-configured worklist
It can be accessed directly from the menu structure within
SAP APO, or used as a postprocessing function of Batch
backorder processing
Filters and sorts are available to both operating modes

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BOP in APO Interactive Backorder Processing with a


worklist key capabilities

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BOP in APO Interactive Backorder Processing without a


worklist key capabilities

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BOP in APO Simulative Backorder Processing key


capabilities
No temporary quantity assignments are written to liveCache
No orders are updated in R/3
The results can be viewed in a log but cannot be
updated interactively
The results can be saved in the buffer or deleted

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BOP in APO BOP Filter key capabilities

Plus a Userexit!

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BOP in APO BOP Sort key capabilities

Plus a Userexit!

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BOP in R/3 key capabilities - The selection screen

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BOP in R/3 key capabilities - The Result

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BOP : Comparison APO vs. R/3


APO

R/3 and mySAP ERP

Redistribution flag

Redistribution for each basic

No redistribution flag releases all


orders assigned quantities, then
rechecks them if they didnt have a
check before

No redistribution

method

Filter has 28 fields plus userexit

Fixed filter with <10 fields

Sorter has 25 fields plus


userexit

Fixed sorter

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Able to confirm new results


with old prior to database
commit
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Changes are committed to


database with no comparison

BOP: Comparison APO vs. R/3 (cont.)


APO

R/3 and mySAP ERP

Schedule line check available


for all documents
Date configuration material
availability or goods Issue

Schedule line checks for stock


transport orders only
Date configuration No
option (material availability date

Possible to preserve the lesser


quantity that has been agreed
upon without giving more

is used)
R/3 and mySAP ERP do not
differentiate between confirmed
quantity and requested quantity

Possible to improve and not


degrade confirmations

No opportunity to preserve
what

Disclaimer
Cancellation of current
was done previously
(Optional location for any required disclaimer copy.

confirmations
54

To set disclaimer, or delete, go to View | Master | Slide Master)

Presentation Title | Confidential | Document ID

| Jun 8, 2016

BOP : Gaps where R/3 shorts fall


Advantages of APO

55

option to carry out selections criterion to select and sort orders for
BOP.
R/3 and mySAP ERP have limited sort and filter fields, With no user exits
available to expand the selection
R/3 and mySAP ERP are not as flexible as SCM APO
Dates arent configurable
Operating modes are selectable
Schedule line checks are limited to one document type.
option to use Logs of BOP to analyzed results of BOP
No way to preserve previous check.
option to analyze run time of BOP
In APO, BOP run time can be analyzed, for each step of BOP, and further
based on analyses, selections criterion of BOP can be changed to get
optimized BOP run time
Parallel Processing of BOP in
APO
Disclaimer
(Optional location for any required disclaimer copy.
To set disclaimer,
or delete,place
go to View |in
Master
| Slide Master)
No new development
taking
R/3

Presentation Title | Confidential | Document ID

| Jun 8, 2016

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