Availability Check Against Product Allocation

Product Allocation

The Product allocation allows your company to keep production to a minimum at the same time it helps you to meet the immediate requirements of the customers through the precise planning and control of the entire production process

In SAP R/3 system, product allocations represent an ordered allocation of production for certain periods.

Product allocation functionality allows you to manage the supply of scarce products to customers so that each customer receives an allocated amount.

Availability Check against Product Allocation

1)      In “Availability Check against Product Allocation” first the system will check the availability against the ATP quantities. If the system determines the confirmed delivery quantities for the customer on the requested delivery date, system will re-determine the availability of the material against product allocation. The confirmed delivery quantity is the basis for the availability check against product allocation.

2)      System will compare the confirmed quantity from the ATP check with the relevant product allocation.

3)      The system will not confirm any quantity more than the planned product allocation quantity. This ensures that the product allocation is not exceeded for a customer in that particular period.

4)      The check date for the availability check against product allocations is the planned delivery date for the customer and not the material availability date.

Requirements for “Availability Check against Product Allocation”

Ø  You must assign a product allocation procedure for the material in the basic data tab page of the material master in customizing.

Ø  You must maintain the settings for the statistics update in the info-structure.

Configuration of “Availability Check against Product Allocation”

Ø  First you must define a product allocation procedure for the Availability Check against Product Allocation which determines how the products are allocated.

Ø  You must enter this product allocation procedure in the material master on the basic data screen of the general data tab page.

Ø  For each product allocation procedure you have to define objects. The product allocations are stored in the form of object in the planning hierarchy.

Ø  Like objects, you have to define an info structure for each product allocation procedure. You can also specify a formatting character for each info structure and this is used to form the key for general entries.

Ø  You have to assign the info structure and objects to the product allocation procedure. The system will determine the planning hierarchy based on the Info-Structure and object that has been assigned to the product allocation procedure.

Ø  Planning hierarchy is the place where you can maintain the product allocation.

Ø  You can define consumption periods (time duration) for product allocation quantities. Consumption periods consist of the number of past (backward consumption period) and future (forward consumption period) periods.

Ø  The number of periods before the product allocations check date from the sales order that can be used to calculate the current product allocation quantity. Unused product allocation quantities in these periods are cumulated before checking product allocations for the current period.

Ø  The number of periods after the product allocations check date from the sales order that can be used for the current consumption period. The schedule lines, together with the confirmed quantities, are postponed by product allocations at the latest until the specified period.

Ø  You can define and assign one or more objects with different validity periods to the product allocation determination procedures.

Ø  While assigning the objects ensure that the validity periods are not overlapping.

Ø  The system will determine the relevant object with respect to the delivery date of the order.

Ø  System will not carry out any product allocation check for any object that is not active.

Ø  To perform the product allocation check, at requirement class level you have to define whether the system should run an availability check for product allocations or not

Ø  At schedule line category level also you have to define whether an availability check against product allocation has to be carried out or not.

Ø  The availability check against product allocation can only be deactivated at schedule line category level. It cannot be activated if the availability check is not already activated at requirements class level.

Ø  In the next level you have to enter the info structure of the planning hierarchy in which you want to enter collective product allocation.

Ø  In the final step you have to check whether the settings made are consistent for every combination of product allocation determination procedure and product allocation object (determined in 'control product allocation').

Ø  You can also determine how the check results are to be issued.

Availability check on the basis of the ATP quantities

In this kind of check system will consider all the he stocks in a storage location, all planned inward movements and outward movements.

You can perform availability check with ATP Logic with or without considering the Replenishment lead time.

System will not consider the planned independent requirements.

Configuration of “Availability Check with ATP Logic"

The menu path for configuring the “Availability Check with ATP Logic or Against Planning” is:

In the IMG screen choose Sales and Distribution à Basic Function à Availability check and Transfer of Requirements à Availability check à Availability Check with ATP Logic or Against Planning

1)      Define Checking Group.

Ø  First you have to define a checking group in the IMG screen.

Ø  While defining the checking group you must specify the type of requirement that the system creates while processing sales order or Delivery.

Ø  For defining a checking group follow this menu path: In the IMG screen choose Sales and Distribution à Basic Function à Availability check and Transfer of Requirements à Availability check à Availability Check with ATP Logic or Against Planning à Define checking group.

Ø  When creating a material master, system will propose the checking group automatically based on the material type and plant. You can overwrite this proposed value.

Ø  You have to specify which kind of requirement has to be created. An individual requirement or a daily requirement.

2)      Defining material block for other users.

Ø  “Defining material block for other users” will help you to define whether to block the material master record for other orders during availability check or not.

Ø  If the material is not blocked during availability check the system will confirm the other order too, because sufficient quantity was available for both the orders.

Ø  To define the material block follow this menu path: In the IMG screen choose Sales and Distribution à Basic Function à Availability check and Transfer of Requirements à Availability check à Availability Check with ATP Logic or Against Planning à Define material block for other users.

3)      Define checking group default values.

Ø  You can propose a checking group automatically while creating a material master record based on the plant and material type.

Ø  You can overwrite this default value if required.

Ø  To define checking group default values follow this menu path: In the IMG screen choose Sales and Distribution à Basic Function à Availability check and Transfer of Requirements à Availability check à Availability Check with ATP Logic or Against Planning à Define checking group default values.

4)      Carry Out Control For Availability Check.

Ø  In this process step you can define a checking rule for a checking group or you can define your own checking rule and assign to a checking group.

Ø  Checking rule specifies which inward movement and which outward movement type should be considered while performing an availability check.

Ø  You can also specify whether the check should be carried out with RLT or not.

Ø  To define a checking rule for a checking group follow this menu path: In the IMG screen choose Sales and Distribution à Basic Function à Availability check and Transfer of Requirements à Availability check à Availability Check with ATP Logic or Against Planning à Carrying out control for availability check.

Ø  If you want to assign your own checking rule, then you can create a new checking rule using the button “New Entries”.

5)      Define Procedure By Requirements Class.

Ø  In this process step you define whether an availability check and/or transfer or requirements should be carried out for each requirements class or not.

Ø  To define Procedure by Requirements Class follow this menu path: In the IMG screen choose Sales and Distribution à Basic Function à Availability check and Transfer of Requirements à Availability check à Availability Check with ATP Logic or Against Planning à Define procedure By Requirements Class.

6)      Define procedure for each schedule line category.

Ø  This configuration is relevant for only a sales document.

Ø  In this process step, for each schedule line category you specify whether an availability check and/or transfer of requirements should be carried out in a sales document type or not?

Ø  Configuration of availability check at schedule line level depends upon the settings in the requirement class level.

Ø  That means if you want to deactivate the availability check or transfer of requirement in the schedule line level, then it must be activated first at the requirement class level.

Ø  If the availability check and transfer of requirement is deactivated at the requirement class level, then you cannot activate the same in the schedule line level.

Ø  To define procedure for each schedule line category follow this menu path: In the IMG screen choose Sales and Distribution à Basic Function à Availability check and Transfer of Requirements à Availability check à Availability Check with ATP Logic or Against Planning à Define procedure for each schedule line category.

7)      Determine Procedure For Each Delivery Item Category.

Ø  In this process step, you can define whether the availability check for particular item category is needed in the delivery document or not.

Ø  To determine Procedure for Each Delivery Item Category follow this menu path: In the IMG screen choose Sales and Distribution à Basic Function à Availability check and Transfer of Requirements à Availability check à Availability Check with ATP Logic or Against Planning àDetermine Procedure for Each Delivery Item Category.

8)      Checking Rule for Updating Backorders.

Ø  In this process step, you can assign a checking rule to a plant which serves as a basis for availability check.

Ø  To define checking Rule for Updating Backorders follows this menu path: In the IMG screen choose Sales and Distribution à Basic Function à Availability check and Transfer of Requirements à Availability check à Availability Check with ATP Logic or Against Planning à Checking Rule for Updating Backorders.

9)      Define Default Settings.

Ø  In this process step you can specify the default settings for the results of availability check.

Ø  For each sales area you can set an indicator for fixing the date and quantity as well as a rule for transferring the results of the availability check.

Ø  To define default Settings follow this menu path: In the IMG screen choose Sales and Distribution à Basic Function à Availability check and Transfer of Requirements à Availability check à Availability Check with ATP Logic or Against Planning à Define default Settings

This will complete the configuration of the “Availability Check with ATP Logic or Against Planning”

In “Availability Check with ATP Logic or Against Planning” the system perform availability check in the following way:

Ø  Depending upon the checking group which we have assigned in the material master of this particular product and the checking rule, system will determine the scope of availability check that means which stocks, receipts and issues are to be included in the availability check and whether the check is to be carried out with or without the replenishment lead time for availability check.

The system will check availability at plant level for that the system will determine the plant immediately when we enter an item in a sales document.

The system accesses information for proposing the standard delivering plant in the following order:

1.      Customer-material info

2.      Ship-to party customer master record

3.      Material master record

Availability Check (1)

The availability check is an integral part of the sales order processing cycle. Availability check helps you to determine whether you can supply the material to the customer on the requested delivery date or not. The system will check availability at plant level for that the system will determine the plant immediately when we enter an item in a sales document.

The system accesses information for proposing the standard delivering plant in the following order:

1.      Customer-material info

2.      Ship-to party customer master record

3.      Material master record

Main tools in availability check

1.      Requirements class

2.      Requirements type

3.      Checking group

4.      Checking rule

5.      Schedule line category

6.      Strategy group

7.      Planning strategy

Requirements class

Requirement class controls whether the availability check and transfer of requirement is required in a sales document type or not. The requirements class contains all control features for planning such as relevance for planning, relevance for MRP, requirements planning strategy, settlement profile and requirements consumption strategy.

In a sales document you can also control the availability check using the schedule line category.

The settings in the requirement class level determine the settings in a schedule line category level.

To define the requirement class follows this menu path: - In IMG screen choose Sales and Distribution à Basic functions à Availability check and transfer of requirement à Transfer of requirement à Define requirement class

Requirements type

Requirement type defines the different type of requirements in business processes, such as sales order requirements, delivery requirements or individual customer requirements.

To define the requirement type follow this menu path:- In IMG screen choose Sales and Distribution à Basic functions à Availability check and transfer of requirement à Transfer of requirement à Define requirement type

Checking Group

1.      It determines whether and how the system checks the stock availability and generates requirements for material planning.

2.      In checking group you can control whether the system is to create individual or collective requirements in sales and shipping processing.

3.      You can also se t a material block for the availability check.

4.      The system will determine the checking group from the material master record sales: general plant data tab level.

5.      System will propose a checking group to the material master automatically while creating a material master based on the material type and plant.

6.      To define your own checking group, follow this menu path: - In the IMG screen choose Sales and Distribution à Basic Functions à Availability Check and Transfer of Requirements à Availability Check à Availability Check with ATP logic or against planning à Define checking group

7.      However if there is no entry present in the material master record for the checking group, system will determine the checking group, depending on material type and plant.

Checking rule

1.      Checking rule define how the availability check is to be carried out at the transaction level.

2.      In checking rule you can specify whether the check should be carried out including or excluding replenishment lead time.

3.      The individual checking rules define by transaction, which stock and inward and outward movement of goods should be taken into account for the availability check.

4.      In customizing you must assign a checking rule for each transaction.

5.      To define and assign a checking rule to a checking group follow this menu path: - In the IMG screen choose Sales and Distribution à Basic Functions à Availability Check and Transfer of Requirements à Availability Check à Availability Check with ATP logic or against planning à carrying out control for availability check

Schedule Line Category

1)      In schedule line category you can decide whether an availability check and transfer of requirements should be carried out in the sales documents.

2)      The possible settings for this at schedule line level are dependent on the settings in the requirements class which is determined from the requirements type of the material.

Strategy group

The strategy group is specified in the material master record in the MRP 1 Screen. It contains all the allowed planning strategies. The strategy groups are assigned, dependent on plant and MRP groups. If the strategy group is missing in the material master record system will determine it on the basis of the MRP group.

Three types of availability check in Sales and Distribution:

1)      Availability check on the basis of the ATP quantities

2)      Availability Check Against Product Allocation

3)     Availability check against planing