Forecast Consumption in SAP APO SNP

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2011 SAP AG 1
Demand Release and Forecast
Consumption Consumption in APO
SNP
Applies to:
SAP APO Demand Planning & Supply Network Planning. For more information, visit the Supplier
Relationship Management homepage.
Summary
Objective of this document is to demonstrate the configuration steps for Demand release from Demand
Planning to Supply Network Planning using mass job. Forecast consumption and required setting for Planing
with Final Assmebly is also touched to elaborate on forecast consumption logic.
Author: Jayant M Deulgaonkar
Company: Accenture
Created on: 15 March, 2011

Author Bio
The author is a senior SAP APO consultant with over 11 years of industry experience. He has good
expertise in the areas of APO DP, SNP and TPVS. He also has a background in R/3 Sales & Distribution and
domain experience in the field of Logistics and warehousing.

Demand Release and Forecast Consumption Consumption in APO SNP
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2011 SAP AG 2
Table of Content
Introduction ......................................................................................................................................................... 3
Pre Requisites .................................................................................................................................................... 3
Configuration Steps: ........................................................................................................................................... 4
Step 1: ............................................................................................................................................................. 5
Step 2: ........................................................................................................................................................... 10
Step 3: ........................................................................................................................................................... 11
Step 4: ........................................................................................................................................................... 11
Step 5: ........................................................................................................................................................... 12
Step 6: ........................................................................................................................................................... 12
Step 7: ........................................................................................................................................................... 13
Steps for Customizing ....................................................................................................................................... 14
Step 1: Maintain Distribution Function .......................................................................................................... 14
Step 2: Maintain Period Split Profile ............................................................................................................. 15
Step 3: Maintain Daily Bucket Profile ............................................................................................................ 15
Step 4: Create Release Profile ..................................................................................................................... 15
Step 5: Create Activity for mass processing ................................................................................................. 17
Step 6: Create Backgroud job ....................................................................................................................... 18
Step 7: Demand Deletion .............................................................................................................................. 19
Related Content ................................................................................................................................................ 21
Disclaimer and Liability Notice .......................................................................................................................... 22

2011 SAP AG 3
Introduction
Demand planning module is used for collaborative demand planning so as to predict future demand. This is
done in time series environment and on a aggregated time bucket. When it comes to use these predicted
demands for Supply Network planning it is important to have demands in Order series with details level time
bucket. This enables using these orders for available tools e.g. CTM, Network Optimiser, Heuristics, and
Deployment etc.
Pre Requisites
APO Demand planning being used with Forecast Driven Distribution Model. Business requirement is to
consume Forecast once orders are received against the forecast and want to plan for forecast errors if any.

The entries for the requirements type and the version in the transfer profile relate to the settings in R/3
The transactions in the R/3 customising for these entities are
Requirements Strategy - OPPS
Requirements Type - OMP1
Requirements Class - OMPO
Version - OMP2
The transferred independent requirements - MD63
A prerequisite for the data transfer from APO to R/3 is that the distribution definitions for the publication type
planned independent requirements with the transaction /SAPAPO/CP1 You should maintain these as per
requirement. Usually following are maintained.
021 External Procurement
330 Shipment
340 Delivery
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Configuration Steps:
APO relies on R3 for all master data and customising to get transferred to APO through CIF. You need to set
up below R3 Masters so as to forecast consumption flow from R3 to APO. 1 In material master (MRP 3)
Strategy Group Planning with Final Assembly need to be defined.

In R3 Material Master Strategy (Planning Strategy) contains the information of requirement class.
Requirement class is referred as check mode in APO (This customisation will flow to APO through CIF this
when you create integration model for ATP Customisation)
For consumption logic to work Requirement strategy should be available in Material master.
Consumption mode with consumption period will define consumption periodicity.
Consumption group will define rules for consumption.

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Step 1:
Production > Material Requirement Planning > Master Data > Independent Requirement Parameters >
Planning Strategy > Define Strategy

Select Strategy 40

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Display Strategy
Refer Requirement class and Requirement type of Customer requirement.

Corresponding Strategy in APO
The requirements strategy is assigned to the product in the product master. Following is the mapping of
strategy in R3 and APO.

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To display Strategy in APO go to Transaction: S_AP9_75000142

Here category for forecast is indicative and all the categories with category group 3 Forecast are
considered for consumption.
In forecast consumption you use the category group to determine which kind of orders, for example sales
orders or planned orders, can consume the forecast.
Requirement Class:
Sales and distribution Basic Functions Availability Check and transfer of Requirements > Transfer
Requirements > Define requirement classes

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Select Requirement Class

Display details

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This Requirement class in APO is referred as Check Mode

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Step 2:
Use Own Filter Object Type for Requirements Reduction
Transaction: CFC9 (R3)
This indicator controls which filter object type is evaluated in integration models for the transfer of data for
requirements reduction.
If the indicator is not set, the filtering takes place on the basis of active integration models for material master
data. The requirements reduction is transferred to SAP APO if active integration models exist for material
master data with a suitable material-plant combination. In this case, the requirements reduction is transferred
for all suitable material-plant combinations.
If you set this indicator, you can create integration models specifically for the Requirements Reduction filter
object type (type T_FCC). The filtering takes place on the basis of active integration models for requirements
reduction. In this case, you can control in greater detail for which material-plant combinations a requirements
reduction should be transferred to SAP APO.

2011 SAP AG 11
Step 3:
Independent Requirement Reduction for Movement Type
Transaction : OMJJ
Requirements reduction upon goods movements indicates that the system is to check whether a requirement
is to be partially offset or reduced to zero for the material document item in question at the time a goods
receipt is entered.

Step 4:
Integration Model for ATP Customising
Transaction:CFM1 to create integration model
CFM2 to activate integration model
Use required filters and select ATP Customizing to transfer settings to APO

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Step 5:
Define field catalogue for Consumption group definition
Transaction : /n/SAPCND/AO01

You can add new entries with available list. If you want to add more fields in the structure you need to
append structure /SAPAPO/KOMGO

Step 6:
Define consumption group
Transaction: /N/SAPAPO/CSP1
Select DP characteristics and relevant R3 field from Catalogue.

2011 SAP AG 13

Step 7:
Material master maintenance
Maintain Strategy Group and Consumption mode and Consumption period in MRP 3 view.

These settings will be available in APO after integration model is activated for the product location
combination. You can assign consumption group in APO.

2011 SAP AG 14

Once Masters are set as per requirement and demand is finalised in Demand Planning forecast can be
release to APO.
You can execute the release from Demand Planning (DP) to Supply Network
Planning (SNP) in two different ways.
1.) Transaction /SAPAPO/MC90 or report /SAPAPO/RTSOUTPUT_FCST.
Application: Only for a few product location combinations, because otherwise memory problems (liveCache
Heap memory) can occur. You should not use this transaction or this report for mass release.
2.) Release within the DP mass processing
Application: For Mass processing using background jobs
For demand release using mass processing you need to define release profile. Release profile will contain
information on planning area, version, period split and characteristics.
Usually demand planning is done on aggregated level where as distribution planning happens on day level. It
is important to have correct split is done for this transformation form aggregated level to day level. If you
need a specific distribution pattern for this split you can use Distribution function for period split profile.
For equal distribution you can use daily bucket profile instead of period split profile. You do not use both
forecast will be released on the first day of the bucket used in DP planning book for release.
Steps for Customizing
Step 1: Maintain Distribution Function
Transaction: /SAPAPO/DFCT - Maintain Distribution Function

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Step 2: Maintain Period Split Profile
Transaction: /SAPAPO/SDP_SPLIT - Maintain Period Split Profile

Step 3: Maintain Daily Bucket Profile
Transaction : /SAPAPO/TR30 - Maintain Time Buckets Profile for Demand Plng and Supply Network Plng
Maintain no of days to split forecast and periodicity T (Day).

Step 4: Create Release Profile
Transaction : /SAPAPO/MC8S - Maintain Release Profiles
Planning Area Select DP planning area from which forecast is to be released
Key Figure Select Key figure in the planning area from which forecast is to be released
Target Planning Version Select planning version to which you want to release forecast. You can use
simulation versions if required.
Period Split Select if you want to use distribution function
Day Buckets Select if you do not have specific distribution function requirement but want to distribute
demand equally in days.
Category Select forecast category (usually FA or FC are used but you can define customised categories
with category group 3 Forecast)
Product Characteristics Select DP characteristics used for Product
Location Characteristics Select DP Characteristics used for Location
Consumption Group If you need to consume forecast based on additional descriptive characteristics use
defined consumption group for the planning area.
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Requirements Strategy -Determines how quantities forecasted in APO Demand Planning are produced, and
how the demand forecast is consumed with sales orders.
SAP delivers the requirements strategies listed below. You can also define your own strategies, see Define
Requirements Strategy. In this example it will be 20 - Planning with final assembly
Create New Orders If selected while releasing forecast existing forecast will not get overwritten instead
new order will get created. Usually overwrite logic is used and hence this is not selected.

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Step 5: Create Activity for mass processing
Transaction : /SAPAPO/MC8T - Define Activities for Mass Processing

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Step 6: Create Backgroud job
Transaction : /SAPAPO/MC8D - Create Demand Planning in the Background
Select planning book and data view which was selected for creating activity. Select activity and selection.
You can use parallel processing profile for better performance. Aggregation level can be selected only if you
do not use consumption group. In case of consumption group, aggregation will get selected automatically
based on consumption group definition.

Schedule created background job with Transaction code: /SAPAPO/MC8G
Once demand is released you can view details of released demands in Product view (/SAPAPO/RRP3)

2011 SAP AG 19
In details there are 5 quantities under Forecast (Detail) tab.
1. Quantity Planned Quantity released form Demand Planning
2. Withdrawal Quantity Quantity of forecast consumed by Closed sales order for which PGI is already
done and neither sales order nor delivery is available in APO.
3. Allocation Quantity Quantity of forecast allocated for open sales order / open delivery
4. Remaining Planned If forecast is > Sales order this value gets calculated automatically. Remaining
planned = Quantity planned (Withdrawal quantity + Allocation Quantity)
5. Shortage If forecast is < Sales order this value gets calculated.
Shortage = (Allocation Qty + Withdrawal Qty) Quantity Planned

Step 7: Demand Deletion
If your demand planning master data (CVCs) are changing and getting deleted. Then before demand release
you should flush old demands so that only valid demands will be available in the system. This can be done
with two ways
1. Using Transaction /N/SAPAPO/RLCDEL
This transaction is used to delete orders in mass.
You use select either category (FA, FC etc) or a key figure used for forecast (e.g.
9ADFCST).
If you delete forecast using this transaction all the quantities related to forecast including
withdrawal quantity will get deleted and thus you will loose forecast consumption quantity
with past sales.
This transaction gives better performance for mass deletion

2011 SAP AG 20
2. Using transaction /N/SAPAPO/MD74
This transaction is primarily designed to delete forecast while retaining withdrawal and
allocation qty intact.
Performance is not as good as /N/SAPAPO/RLCDEL but should not be a bottleneck for
moderate size planning environment

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Related Content
http://help.sap.com/saphelp_scm50/helpdata/en/e6/
FAQ: Background jobs in Demand Planning
Consulting note: Release from DP to SNP
For more information, visit the Supplier Relationship Management homepage.

2011 SAP AG 22
Disclaimer and Liability Notice
This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not
supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade.
SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document,
and anyone using these methods does so at his/her own risk.
SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or
code sample, including any liability resulting from incompatibility between the content within this document and the materials and
services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this
document.

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