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SAP-SD Availability Check, Transfer of Requirements, and Backorders Promising accurate and reliable dates for delivery to your customers is a key element of the order fulfillment process in todays competitive environment. In the SAP ERP software, the availability check functionality provides this accuracy and reliability. In this chapter, we will discuss the availability check functionality in detail including its relationship to transfer of requirements, backorder processing and order rescheduling. During these discussions, we will also walk you through the required customization settings for these functions and, as always, provide Galaxy Musical Instruments case studies to further clarify the topics. Meaning and Relationship The schedule line in a sales order contains information about the quantities of a material ordered by the customer and the corresponding delivery date requested by the customer for delivering the material. In the SAP ERP world, the delivery date quoted by the customer is called the customer-requested delivery date. When taken together with the delivery quantity requested by customer for such a date, the term used is material requirement. Material requirementrelated information is vital to the MRP departments ability to make production/ procurement-related decisions. In the SAP system, this information is transferred to MRP using the transfer of requirements (TOR).You can transfer requirements either individually or collectively. An individual requirementtransfers the material demand for each schedule line to MRP, whereas a collective requirement transfers summarized data on a daily or weekly basis to MRP. Accordingly, you can trace back an individual requirement to the order from which it originated, while the same is not possible in a collective requirement. An availability check (AC), on the other hand, is the functionality that helps you confirm the schedule line in an order and thus facilitate the customers order confirmation/ promise process. When carried out in the context of a sales order, the AC process checks the stock availability for the material in the delivering plant / warehouse. If sufficient quantities are available to meet the customer-requested delivery date, the AC then confirms the customerrequested delivery date on the schedule line. In situations where the requested delivery date cannot be met because of a shortage of stock, the AC is also capable of proposing a future date when the delivery quantities can be confirmed for an order. While calculating, the availability check also considers various lead times such as procurement/production lead time, plant/warehouse processing time (including aspects such as pick/pack, load /unload, transportation planning time, and goods issue /receipt time), and shipment transit time. This helps you make accurate and reliable calculations about the delivery dates that you can promise to the customer. This also provides a visibility into manufacturing / procurement capacity, warehouse processing capacity, and transportation capacity.

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You can configure TOR to work without an availability check but not the other way around. This is really beneficial in scenarios where you dont want the availability check to happen for the material but want the requirement to be transferred to MRP for production/procurement decision making. There is no hard-and-fast rule for what materials should be included for both the availability check and the transfer of requirements, what should be included only for the transfer of requirements, or what materials should be excluded from both the transfer of requirements and the availability check. The decision Home depends upon the business requirements and the way MRP strategies are to handle such requirements. Therefore, it is always best that you work used About Us closely with your PP and MM counterparts when configuring the transfer of requirements SkillSets and the availability check in the SAP ERP software. A few common examples of where the availability check is generally switched off are KANBANrelevant Categories materials, bulk materials, slow-moving inventory materials, and so on, where you control the procurement/production-related decisions Online Exams using other planning strategies and methods available in the MM/PP of the SAP ERP software. application My e-University of Availability Check Types Contact Us Therereserved are three types availability checks: All rights 2010of Wisdom Jobs.com

Check against available- to-promise quantities Check against product allocation Check against planning

Check Based on Available-to-Promise Quantities Here the check is performed against available-to-promise (ATP) quantities. This check considers the currently available stock and also the stock that will be available in the near future for availability check calculations. In equation form, this can be depicted as follows: Check against ATP = Available stock + Future receipts Future issues where Available stock refers to the stock available in hand at the delivering plant/warehouse. Future receipts represent all the inward movement of goods that can add stock in the delivering plant/warehouse. Purchase order, production order and stock transfer order are a few examples of documents that trigger inward movement of stock. Future issuesare all the outward movement of goods that can lead to the consumption of stock from the delivering plant/warehouse. Sales orders, deliveries, stock transfer orders, and assembly orders are a few examples of documents that trigger outward movement of stock. Production order, assembly order, and stock transfer order play dual roles, because they are responsible for the addition as well as consumption of stock. This type of check is performed dynamically for each transaction. In SAP SD, you can perform this check with or without replenishment lead time (RLT), which is the time to refill/replenish the inventory of the delivering plant. Check Based on Product Allocation Unlike the check based on ATP, in which allocation happens on a first-come, first served basis, here you set up a maximum limit for the material quantity a customer can place order for. This check helps with the allocation of products