Bring Deliveries Together with APO’s Correlation Functionality

  • by Ranjan Sinha, Senior Managing Consultant, IBM
  • August 1, 2006
You can carry out an available-to-promise check for a sales order when the items in the sales order have a bill of material structure by using the correlation functionality in R/3 and Advanced Planning and Optimization (APO).
Key Concept
Sometimes products have to be delivered together as part of a package. However, these packages are not necessarily stocked. When different components of a package have to be delivered together, the available-to-promise check should enable the process by confirming them at the same time. The correlation profile in Advanced Planning and Optimization helps to correlate the line items of these packages. Without the correlation profile, the line items might confirm separately on different dates and with different quantities, making the process disjointed.
The correlation profile in Advanced Planning and Optimization (APO) 3.1 and up allows you to coordinate order confirmations for components in product packages. For example, consider this scenario:

A television set package is comprised of a television and a television stand. Although these components are not assembled together, a customer placing an order would expect the television and the stand to arrive together. The television and the stand are stocked separately in the warehouse. When a customer places an order for 10 television packages, the sales order would recognize that the order is really for 10 television sets and 10 stands. When the available-to-promise (ATP) check happens on the sales order, it should make sure that 10 of each are available. If only six televisions and seven television stands are available, then it should recognize the relationship and confirm only six of each in the sales order.

I’ll explain the necessary configuration settings in R/3 and APO 4.0 and the required master data setup to make this work. I’ll provide a product allocations scenario as an example, and then show how to use the functionality when you run backorder processing.

Ranjan Sinha

Ranjan Sinha is a senior managing consultant at IBM. He has vast experience implementing SAP APO functionality in various industries, including electronic and chemical.

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