When determining the amount of product that is available to promise Which of the following must be considered?

Available to promise is the projected amount of inventory you have left available to sell, not including allocated inventory. It allows businesses to control distribution to their customers and predict inventory.

What means available to promise?

Available to Promise (ATP) is the uncommitted portion of a company’s inventory and planned production maintained in the master schedule to support customer-order promising. It allows a business to keep the minimum amount of a given product within their warehouses so that the use of the inventory space is efficient.

How do you calculate MPS and ATP?

The ATP quantity is usually calculated for each period in which a MPS receipt is scheduled. The (ATP) value for a particular time period is calculated by subtracting the total orders before the next master production schedule from the total units of inventory on hand.

How do you calculate discrete available to promise?

How do you calculate projected on hand inventory?

This figure is calculated through the following formula: on hand inventory – outgoing + incoming. If forecasted stock is smaller than on hand stock, certain products might become reserved for specific types of sales/clients or only available for pre-orders.

What is the difference between available to promise and capable to promise?

While available-to-promise processing considers existing material on hand for both purchased and manufactured items, capable-to-promise functionality also accounts for inbound purchase receipts, supplier lead times, alternative sourcing options, and raw material, production, and labor availability.

How does SAP Calculate ATP quantity?

The ATP (Available-to-promise) quantity is calculated according to the following formula: ATP quantity = warehouse stock + planned receipts – planned issues.

How do you calculate ATP supply chain?

ATP = Quantity On Hand + Supply – Demand

It also empowers salespeople to instantly find out when they can deliver a potential customer’s order.

What is ATP rule?

Available-to-promise (ATP) rules enable you to determine the availability of a product item for current and future demand. This determination makes the most efficient use of inventory so that product items are not set aside for future orders when they could be used to fulfill more immediate demands.

How do I check if a quantity is available in SAP?

In transaction CO09 the system shows the most important data which are considered by the ATP check, including:
  1. the material availability date.
  2. the MRP element related data.
  3. the required / requested quantity.
  4. the confirmed quantity.
  5. the cumulated ATP quantity (quantity still available after the confirmation is made).

How do you know if a material is available?

Availability Check. Define a checking scope for the combination of a checking group and checking rule . You can, for instance, determine which MRP elements and types of stock the system takes into account or whether it should assume that a material is available after the replenishment lead time.

How do I check if a stock is available in SAP?

MMBE: How to get SAP Stock Overview
  1. Enter T-Code in Command bar MMBE. Enter Material No . Select display level for which we want to see stock overview. Click on execute Button.
  2. Output will be displayed as below- Stock overview for material 9554 is displayed. Stock at Company /Plant / storage location is displayed.

How do I set an availability check in SAP?

a):- Define Requirement Class and activate Availability check and requirement check box. b) Define requirement Type and assign Requirement class to it. e) Define Checking group and put the value in total sales and total delivery as A ,B,C or D, in which way you want to see the MRP in MD04 .

How do I set an availability check in SAP SD?

Switch on Availability Check at Schedule Line Category level. Checking Rules are predefined in SD. etc. Assign Checking Rule to Checking Group and define the scope of Availability Check.

How do you check ATP stock in SAP?

In the column ‘Rec./reqd qty‘ you can see the different stocks on the different levels (blue lines) and (when existing) the quantities of the receipts and issues. In the column ‘Confirmed’ you see the confirmed quantities of the different issue elements. The cumulated ATP quantity represents the available quantity.

Which parameters control the availability check in SAP?

Scope of Availability Check: The scope of the availability check is defined by the following parameters: Checking group. Checking rule.

How does SAP promise work?

SAP ATP (Available to promise) is a critical calculation used in supply chain management, manufacturing, and fulfillment. … In a nutshell, you can use ATP calculations in SAP to control the proportional distribution of your products among your customers.

How is sales order route determined?

Route is determined automatically in the sales order based on: Departure zone or country of the Delivering Plant. Destination zone or country of the Ship-to Party. Shipping condition from the Sold-to Party Customer master.

How do you confirm quantity in a sales order?

Go to MD04, key in the material code and delivering plant and execute. There check what is the stock showing in blue colour. To that extent, your order quantity would be confirmed.

What is material availability date in SAP?

Material Availability Date

The date on which the material must be available. On the material availability date, the vendor must start the activities relevant for delivery, such as picking and packing the goods.

What is dynamic availability check in SAP MM?

The dynamic availability check gives you control for goods movement in following processes : 1. At time of Sales order creation. 2. At time of reservation (against production order , manual)

How is check rule determined in SAP SD?

You define checking rules in Customizing for Shop Floor Control ( Operations Availability Check Define Checking Rule ). You maintain checking rules per order type in Checking Control (Customizing for Shop Floor Control , choose Operations Availability Check Define Checking Control) .