Tuesday, June 10, 2008

Types of Availability Check in Sales and Distribution Processing

There are three types of availability check:

  • Check on the basis of the ATP quantities
  • Check against product allocation
  • Check against planning

In Customizing, you determine whether an availability check is to be carried out against the ATP quanitity or against planning. The check against product allocations is controlled in the material master and elsewhere in the system.

Check on the Basis of the ATP Quantities

The ATP quantity (ATP = Available To Promise) is calculated from the 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). 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. Planned independent requirements are not taken into account here.

Check against Product Allocation

Product allocation facilitates period-based distribution of products for certain customers or regions. As of Release 3.0F, you can carry out an availability check against product allocation. This ensures, for example, that when production is low, the first customer does not get the full amount, resulting in following sales orders not being confirmed or being confirmed far too late.

Check against planning

The check against planning is performed against independent requirements which are usually created for an ‘anonymous’ market rather than being customer-specific (for example, in the strategy ‘Planning without assembly’, when production occurs only up to the stocking level). The planned independent requirements result from demand program planning and are used for planning expected sales quantities independent of orders

Weitere Informationen hierzu erhalten Sie unter Allocating and Reducing Independent Requirements in Sales and Distribution Processing.

Including Replenishment Lead Time

Replenishment lead time is the time that is needed to order or produce the requested material. The system determines replenishment lead time according to specific times defined by you in the material master record. Depending on the material type, replenishment lead time can be calculated according to various time periods. In the case of trading goods, for example, it is determined according to the planned delivery time, purchasing processing time, and the goods receipt processing time.

Replenishment lead time is only included in the check performed on the basis of the ATP quantity.

Availability Check Including Replenishment Time

Availability is only checked up to the end of replenishment lead time. If the material availability date is calculated on the basis of the current date to lie after the replenishment lead time for the item, the item itself can be confirmed despite insufficient stock being available. In this case, the system assumes that any quantity requested by the customer can be procured by the material availability date and considers the goods to be available. Therefore, a binding confirmation can be sent to the customer.

The following figure shows such a case. The customer wants 20 pieces delivered in full by the requested delivery date. Using backward scheduling, the system determines a material availability date. However, no goods are available. The inward movement of 100 pieces is used up by an outward stock movement. Therefore no stock is available for the material availability date determined by the system. If replenishment lead time were not taken into account, the following situation would arise. The customer wants complete delivery. However, as a result of further inward (50 pieces) and outward stock movements (40 pieces), the goods only become available shortly before the requested delivery date specified by the customer when 60 pieces are added to the stock. Correspondingly, the delivery date resulting from this material availability date would lie further in the future.

However, since replenishment lead time is taken into account during the availability check, the 20 pieces ordered can be delivered before this date, namely at the end of the replenishment lead time.

To ensure that the replenishment lead time can be correctly calculated, the required times must be entered in the material master record. For in-house produced goods, the overall replenishment lead time is required, for externally procured materials, the planned delivery time, the processing time for goods receipt, or the processing time for purchasing is required.

Performing the availability check including replenishment lead time only makes sense if materials planning is carried out at regular intervals (best of all, daily for individual and daily requirements and weekly for weekly requirements). This ensures that inward movements of goods are checked against confirmed quantities. This is necessary as the delivery date for a sales order which has been confirmed on the day before replenishment lead time begins lies the next day within the replenishment lead time period and this leads to insufficient stock being available. This shortage can result in problems such as delivery creation being blocked.

Availability Check Excluding Replenishment Lead Time

If replenishment lead time is not to be taken into account in the availability check, the system can perform an unrestricted availability check. The following figure shows how the system reacts if an availability check is performed under the same conditions as in the figure above but excluding replenishment lead time. The customer also requires complete delivery of 20 pieces in this example.

The quantity can only be confirmed on the date on which availability can be guaranteed again as a result of planned inward movements of stock. In this case, this is on the date when 60 pieces are added to stock.

Availability Status Display Options

You have the following options for displaying availability for materials:

  1. In the sales menu you select Environment
  2. ® Availability Ovw to display the availability status for a material with reference to the plant and the checking rule.

    In the shipping menu you can display the same data by selecting Environment ® Inventory management ® Availability overview.

  3. Display total requirements
  4. To display current requirements/inventory status by material and plant with assignments to planned independent requirements, select (Logistics ® Production ® Master planning ® Demand management ® Evaluations ® Display total reqmts)

  5. Display current requirements/inventory

To display the available quantity for each material and plant from the MRP point of view; the available quantities are determined from the receipt elements and stock elements that are valid for MRP (Logistics ® Materials management ® Inventory management ® Environment ® Stock ® Stock/rqmts. list)

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