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Learn the process flow of how product allocation can be used in SAP Advanced Planning and Optimization (SAP APO) Global available-to-promise (Global ATP) to meet customer requirements by managing the supply of scarce products. The system can perform availability checks in conjunction with product allocation checks. Key Concept Availability checks, also known as available-to-promise (ATP),…...…

Understand the difference between a co-product and a by-product in production processes. Walk through both options and see the pros and cons of each. Key Concept In addition to the main material made during the production process of semi-finished or finished goods, additional products often are produced. These additionally produced materials can either be used…...…

Joint production is a production process of two or more finished products. In this example, the production cost is shared between the finished manufactured products. Learn the basics of apportionment of the standard cost between the primary finished product and other co-products. Discover the significance of a preliminary settlement transaction for the variance calculation of…...…

Learn how to configure and use product cost collectors (repetitive) to capture and control production and process order costs. Key Concept A hybrid order type for production moves the cost object from the production or process order to a product cost collector. This enables the use of orders for control of production and the aggregate…...…

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). Key Concept Production can be directly triggered through a Capable-to-Promise check within the SAP Global Available-to-Promise (GATP) module…...…

In an environment where product allocations are used to constrain the confirmation of sales orders, the use of a single product allocation procedure can make the check against product allocations inflexible and restrictive. The product allocation sequence functionality can help surmount such challenges. Key Concept The product allocation sequence limits the confirmation of sales orders…...…

Learn how to carry out product interchangeability in SAP Advanced Planning and Optimization (SAP APO) Supply Network Planning (SNP) when one product needs to be replaced with another from a particular date or when you need to plan a set of interchangeable products with the same technical properties. Key Concept There are two major interchangeability…...…

When a product is manufactured, an accounting entry is automatically made each time that a posting is made in the production process. Some of these postings take place in FI, while others are posted only in CO. Follow the flow of these accounting entries and understand the reconciliation process between FI and CO. Key Concept…...…

Does your manufacturing requirement strategy in APO match your business plan? Find out how to determine if it does and adjust it if it doesn’t. Key Concept Advanced Planner and Optimizer (APO) requirements strategies determine not only whether a product is manufactured based on a make-to-stock or make-to-order principle. They also determine how existing product…...…

This case study by Rajesh Ray shows the innovative solutions companies adopted to meet challenges when implementing SAP Advanced Planning and Optimization. Key Concept Disaggregation is a process by which values at a higher level of the product hierarchy are distributed to individual products. The consumer goods industry has many industry-specific characteristics that present planning…...…