Configure Capable-to-Promise for Both External and Internal Demands

  • by Ranjan Sinha, Senior Managing Consultant, IBM
  • February 15, 2016
Learn how to configure Capable-to-Promise in SAP Global Available-to-Promise (GATP) in a manufacturing environment for both external as well as internal demands. Understand the various configuration aspects of both GATP and Production Planning (PP) /Detailed Scheduling (DS).
Learning Objectives

By reading this article, you will learn:

  • Unique aspects of check instructions configuration
  • Planning strategy configuration (for both sales and stock transport orders) in SAP ERP Central Component (ECC)
  • How fixed pegging works for both sales and stock transport order in a Capable-to-Promise (CTP) context,
  • Differences and dependencies of configuration on the setup of a stock transport order in ECC
  • Configuration of planning procedure and aspects of global configuration of Production Planning (PP)/Detailed Scheduling (DS)
  • Dependency on PP-DS and Global Available-to-Promise (GATP) master data
  • Limitations of CTP functionality for both sales orders and stock transport orders
  • When to use product allocations instead of CTP
  • Differences in functionality between multilevel ATP and CTP
Key Concept
Production can be directly triggered through a Capable-to-Promise check within the SAP Global Available-to-Promise (GATP) module of SAP Advanced Planning and Optimization (SAP APO) if the inventory is not available to satisfy an incoming demand. Production is either triggered for the full requirement quantity or partial requirement quantity depending on the available inventory. Production can be triggered for both an external demand (for example, sales orders from customers placed at the manufacturing plant) and internal demand in the form of stock transport orders placed by distribution centers at the manufacturing plant. When production is triggered, the system creates a feasible production plan that respects any material or capacity constraints.

When there is an incoming demand such as a sales order or stock transport order that cannot be satisfied fully or partially with available stock, then production can be triggered for the balance through the creation of planned orders for manufacturing. You can set up this functionality using Capable-to-Promise (CTP), which is part of SAP Advanced Planning and Optimization (SAP APO) Global Available-to-Promise (GATP).

The GATP functionality simply refers to the Available-to-Promise (ATP) functionality inside SAP APO. It is richer than the ATP functionality in SAP ERP Central Component (ECC).

I explain the following points in configuring CTP:

  • The functional impact of whether production should be triggered directly or after an availability check
  • How the configuration of the planning procedure plays a role in the availability check and when planned orders are created in the process. The timing aspect of the planned order creation is heavily dependent on the configuration of the check instructions and planning procedure. It plays a very important role in how the CTP function behaves in an operative environment.
  • How the pegging relationship is affected by the configuration of the planning procedure. The level at which fixed pegging relationship is created – whether for the top level assembly or whether the entire bill of material (BOM) structure will be explained in this article. The key aspects of pegging, especially for a stock transport order, depend not only on the configuration inside SAP APO but also on the configuration inside ECC.

The key driver for triggering production as part of an ATP check is the configuration of the check instructions. This process is based on the combination of check mode and the business event.

Check mode is a setting which in conjunction with the business event defines the kind of availability check being performed – whether it is a product availability check, a forecast or product allocation check, or a combination thereof. Technically, the check mode and the business event together correspond to the check instructions.

Business event corresponds to the business process initiating the ATP check – each of these business processes, such as create sales order, change sales order, or create or change production order, corresponds to a value of a business event.

The initial list of check modes in SAP APO is brought in from ECC via the Core Interface (CIF) through the ATP customizing.

Check mode and business event are explained in the article titled “Use Global ATP to Trigger Time-Based Location Substitution in a Consolidation Environment.”

Before I explain the check instructions, it is important that you understand how the check mode is derived in a sales or stock transport order.

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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