ATP Quantity stands for Available-to-Promise Quantity, which represents the quantity of a material or part available to fulfill new sales orders. It plays a crucial role in ensuring that customer orders are processed efficiently while maintaining an accurate inventory. It is calculated based on the current stock and planned receipts, such as production orders, purchase orders, or stock transfers. This ensures an accurate availability check during sales order processing.
What is ATP Quantity?
ATP Quantity is the remaining quantity of a material available after considering:
- Warehouse Stock: The actual inventory on hand.
- Planned Receipts: Quantities expected to be received in the future from production orders, planned orders, or purchase orders.
- Planned Issues: Quantities that are already reserved for existing commitments such as open sales orders or stock transfers.
The ATP quantity allows the Material Requirements Planning (MRP) and availability check processes to ensure that there are no over-commitments in stock allocation.
How is ATP Quantity Calculated?
The ATP quantity is calculated using the following formula:
Key Components of the Formula:
- Warehouse Stock: The current physical stock available in the inventory.
- Planned Receipts: Quantities expected from:
- Production Orders
- Planned Orders
- Purchase Orders
- Planned Issues: Quantities committed for:
- Open Sales Orders
- Stock Transfers
- Reservation or Forecast Demand
Example of ATP Quantity Calculation
Scenario:
A company has the following data for Material X:
- Warehouse Stock: 500 units
- Planned Receipts:
- 300 units from a Purchase Order
- 200 units from a Production Order
- Planned Issues:
- 400 units for an Open Sales Order
- 100 units reserved for a Stock Transfer
Purpose of ATP Quantity in SAP
- Accurate Order Promising: ATP quantity ensures that customer orders are confirmed only if sufficient stock or planned receipts are available.
- Efficient Inventory Management: By considering both current stock and future receipts, businesses can optimize inventory usage and reduce excess stock or shortages.
- Support for MRP Processes: ATP calculations assist in material requirements planning by identifying gaps between demand and supply.
- Availability Check in Sales Orders: During sales order processing, SAP checks the ATP quantity to determine whether the order can be fulfilled on time.
ATP Quantity in Availability Check
The availability check is a process in SAP that ensures materials are available to meet customer demand. During this check, the system compares the required quantity with the ATP quantity. If the ATP quantity is insufficient, the system may:
- Propose a backorder date.
- Split the order into multiple deliveries based on availability.
- Reject the order, depending on configuration settings.
Availability Check Scenarios:
| Scenario | ATP Quantity | Action |
|---|---|---|
| Sufficient Stock | 500 units | Sales order is confirmed. |
| Partial Availability | 300 units | Order is partially confirmed; delivery split may occur. |
| Insufficient Stock | 0 units | Order is not confirmed; system proposes a new delivery date. |
Integration of ATP Quantity in SAP Modules
Available-to-Promise is a critical component in various SAP modules, including:
| Module | Use of ATP Quantity |
|---|---|
| Sales and Distribution (SD) | Ensures accurate order confirmation and delivery scheduling based on material availability. |
| Material Requirements Planning (MM) | Considers ATP during planning runs to determine shortages and trigger procurement or production. |
| Production Planning (PP) | Checks the availability of raw materials or components needed for production orders. |
| Warehouse Management (WM) | Tracks ATP quantities for stock transfers and inventory movements. |
Frequently Asked Questions (FAQs)
1. What is the primary purpose of Available-to-Promise quantity?
The ATP quantity ensures accurate material availability checks for new sales orders, preventing over-commitment of stock and ensuring customer satisfaction.
2. How does Available-to-Promise quantity support MRP processes?
By considering planned receipts and issues, ATP quantity helps MRP identify supply gaps and trigger appropriate procurement or production activities.
3. Can Available-to-Promise consider safety stock?
Yes, ATP quantity calculations can include safety stock as a constraint, ensuring that safety stock levels are not compromised during order confirmations.
4. What happens if the Available-to-Promise is negative?
A negative ATP quantity indicates insufficient stock to meet current commitments. The system may propose new delivery dates or trigger procurement/production to cover the shortage.
5. How is Available-to-Promise quantity configured in SAP?
ATP settings are configured in the availability check settings within the Material Master under the Availability Check Group and Checking Rule.
6. Can ATP be calculated for components in a Bill of Materials (BOM)?
Yes, ATP can be calculated at the component level for production orders to ensure raw materials are available for manufacturing.
7. What is the difference between ATP and CTP (Capable-to-Promise)?
- ATP (Available-to-Promise): Focuses on current stock and planned receipts for order confirmation.
- CTP (Capable-to-Promise): Considers manufacturing and procurement capabilities in addition to stock and receipts.
Conclusion
The Available-to-Promise is a vital concept in SAP, enabling businesses to optimize inventory management, ensure accurate order confirmations, and support efficient planning processes. By leveraging ATP in availability checks, organizations can enhance customer satisfaction and maintain operational efficiency. Understanding and configuring ATP correctly is essential for seamless order fulfillment and supply chain management in SAP.