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How does SAP ATP work?

Published in SAP Logistics 4 mins read

SAP ATP (Available-to-Promise) works by calculating the available stock and capable delivery dates to promise order fulfillment, ultimately improving delivery schedules. It's a crucial part of sales order processing and inventory management in SAP. Here's a breakdown of how it functions:

Core Functionality:

  • Determining Available Stock: ATP checks determine if the requested quantity of a product is available to fulfill a customer order by a specific date. This involves considering current stock levels, planned receipts (e.g., purchase orders, production orders), and planned issues (e.g., sales orders, deliveries).
  • Calculating Delivery Dates: If the full requested quantity is not immediately available, SAP ATP calculates a confirmed delivery date based on planned receipts and issues. This considers lead times, production schedules, and transportation times.
  • Improving Delivery Schedules: By providing realistic delivery dates upfront, ATP helps avoid delays and customer dissatisfaction. It enables sales representatives to provide accurate information to customers regarding order fulfillment.

Availability Checks:

SAP ATP utilizes different types of availability checks to determine the confirmed dates for order fulfillment. These checks can be configured based on the specific business requirements.

  1. Simple Availability Check: This is the basic check. It considers only the current stock and planned receipts. If the requested quantity is greater than available stock, ATP will suggest an alternative delivery date when the stock will be available.

  2. Availability Check Against Planning: This check considers planned orders and production orders that will increase the stock level. This enables a more accurate confirmation of delivery dates, particularly when materials are produced in-house.

  3. Availability Check Against Product Allocation: This check considers pre-defined allocations of stock for specific customers or regions. This ensures that critical customers receive their allocated quantities, even if overall stock is low.

Process Flow Example:

  1. Sales Order Creation: A customer places an order for a specific product and quantity.
  2. ATP Check Initiation: When the sales order is saved, the ATP check is triggered.
  3. Stock and Receipt/Issue Analysis: SAP ATP analyzes the current stock, planned receipts, and planned issues for the requested material.
  4. Availability Determination: Based on the analysis, SAP ATP determines if the requested quantity is available on the requested delivery date.
  5. Confirmation or Alternative Date:
    • If the quantity is available, the sales order is confirmed with the requested delivery date.
    • If the quantity is not available, SAP ATP calculates an alternative delivery date based on planned receipts and issues.
  6. Order Processing: The sales order is processed based on the confirmed delivery date.

Benefits of SAP ATP:

  • Improved Customer Satisfaction: More accurate delivery dates lead to happier customers.
  • Reduced Order Delays: Proactive identification of potential stock shortages allows for timely corrective action.
  • Optimized Inventory Management: Better visibility into stock levels and future availability enables more efficient inventory planning.
  • Increased Sales Revenue: By promising realistic delivery dates, companies can avoid losing sales due to long lead times.

Configuration:

The functionality of SAP ATP is highly configurable. Key configuration aspects include:

  • Availability Check Control: Defining which availability check should be used for different materials and order types.
  • Scope of Check: Specifying which receipts and issues should be considered in the ATP check.
  • Checking Rules: Defining rules for how ATP should calculate availability, considering factors like transportation lead time and production lead time.

In essence, SAP ATP is a powerful tool that helps businesses promise accurate delivery dates to customers while optimizing inventory levels and improving overall order fulfillment efficiency.

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