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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
TABLE OF CONTENTS
1. Introduction ..........................................................................................................................................................3
2. Changes identified with respect to SAP Business Suite ( ie ECC , SCM , APO etc) ................................................3
3. Key business benefits for S4 HANA 1610 Use cases, Cost Case etc ...................................................................4
6.2 Product Allocation at Customer Hierarchy & Material Group combination with Forward and Backward
Consumption. ..........................................................................................................................................................23
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
1. INTRODUCTION
Product Allocation Functionality is widely used in Pharma & Consumer Products (CP) industries.
The ability to distribute supply in instances where the demand is greater than the available
supply. This prevents a handful of customers from consuming all the available products
thereby allowing greater distribution. It is very useful in Pharma & CP Industry, where a drug
in demand or product in demand can be rationally distributed across the customers based
on the business justification.
Product Allocation helps in Manufacturing Capacity Management Planning which allows ATP
to recognize that there is a ceiling to the total number of units that can be made available
within a time bucket (e.g. day, week or month) outside of the Replenishment Lead Time
horizon. This allows companies to utilize the Replenishment Lead Time but restrict the total
requirements from being greater than the company's manufacturing capacity.
New seasonal or Promotional Products are sometimes required to be rationalized across the
customers, which can easily be achieved through Product allocation.
From the business process perspective, the critical area in utilizing Product Allocation is to
determine the criteria to enable and disable Product Allocation. Depending on the business
scenario, it can become difficult to turn it off, especially in instances where demand can vary greatly
bucket-to-bucket. By implementing Product Allocation functionality, unforeseen problems, such as
sudden increase in product demand, production deficits, can be handled efficiently and leads to
greater control of the supply by planning as per the allocations.
2. CHANGES IDENTIFIED WITH RESPECT TO SAP BUSINESS SUITE ( IE ECC , SCM , APO ETC)
Product Allocation has a completely new design and implementation in S4HANA 1610 which is
neither based on ECC nor APO. Product Allocation in S4HANA 1610 is available under Advanced ATP.
In ECC, 36 transactions were required to set up Product Allocation functionality which in S4HANA
1610 has now been compiled into 3 easy to use Fiori Apps and 4 configuration nodes.
A dedicated license for Advanced Available-to-Promise (ATP) is required to use the Product
Allocation function under Advanced ATP.
Existing ATP check under ECC will continue to work for those materials with the checking
group that is not activated for Advanced ATP.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
You cannot combine the Advanced Product Availability Check with the Check against
Planning.
Product allocation function in Advanced ATP is only available for sales order documents.
If you activate the Product Allocation function in Advanced ATP, you cannot revert to the
previously used product allocation function in Sales and Distribution.
If you activate the Product Allocation function, every availability check will be executed with
Product Allocation in Advanced ATP for all materials to which you have assigned a checking
group with Advanced ATP.
3. KEY BUSINESS BENEFITS FOR S4 HANA 1610 USE CASES, COST CASE ETC
Reduced number of customizing and data maintenance steps needed to setup product
allocation functionality.
Configuration massively simplified for the benefit of the end-user. The user experience has
been significantly increased as the end-user himself can set up the product allocation
functionality. The hierarchical selection of product allocation attributes is simplified and is
much less technical.
Time dependent assignment of product allocation data to product and product location
combination. There is no need to change the material master data if product allocation data
is to be assigned or unassigned to the product.
4.1 PRECHECKS
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
In the material master, specify the checking group that is activated for Advanced ATP function in
the availability check field. Also, the requirement class associated with the strategy group must
have be activated for Product Allocation.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
In this step, you activate product allocation in the context of AATP for SAP S/4HANA.
Before activating to Yes, please note that:
The availability check against product allocation is activated per client in your
system.
If you activate the product allocation function, no existing allocation data or sales
order confirmations are transferred automatically.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
As the product allocation function for SAP S/4HANA can only be used in the context
of AATP, in this step, you activate Advanced ATP for the Checking Group.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
In the Customizing activity Sales and Distribution -> Basic Functions -> Availability Check and
Transfer of Requirements -> Transfer of Requirements -> Define Requirements Classes, set
checkbox PdA for the required requirement class.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Advanced Available-to-Promise in SAP S/4HANA offers three apps for setting up, configuring
and displaying data for product availability checks against product allocation for sales orders.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
With this app, you can create and maintain product allocation objects by specifying data
such as allocation periodicity, allocation characteristics, and allocation quantity units of
measure. The app provides an overview of all the product allocation objects available in
the system. This app is available under the catalog description ATP - Product Allocation
Configuration - business catalog name SAP_SCM_BC_ATPPAL_CONFIG and technical
catalog name SAP_TC_SCM_ATP_PAL_COMMON.
This app can be used only if you have the business role Internal Sales Representative
SAP_BR_INTERNAL_SALES_REP.
This app enables you to create, update and delete characteristic value combinations and
their planned allocation quantities. You can use the app to change the availability and
activation status of the characteristic value combinations as well as display their
availability situation (planned quantity, available quantity and consumed quantity). This
app is available under the catalog description ATP - Product Allocation Planning Data
business catalog name SAP_SCM_BC_ATPPAL_PLNGDAT and technical catalog name
SAP_TC_SCM_ATP_PAL_COMMON.
This app can be used only if you have the business role Internal Sales Representative
SAP_BR_INTERNAL_SALES_REP.
With this app, you assign product allocation data to a product or product location
combination. The assignment of product allocation data to product and product location
combinations is time dependent. This app is available under the catalog description ATP
Product Allocation Product Assignment business catalog name
SAP_SCM_BC_ATPPAL_PASSIGN and technical catalog name
SAP_TC_SCM_ATP_PAL_COMMON.
This app can be used only if you have the business role Internal Sales Representative
SAP_BR_INTERNAL_SALES_REP.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
6. PROCESSES COVERED
6.1 SIMPLE PRODUCT ALLOC ATION FOR CUSTOMER AND MATERIAL COMBINATION
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Step 1: Set up Product Allocation Object ZAATP_PAL using Configure Product Allocation Fiori app.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Here, we need to specify the product allocation schema and data relating to:
The characteristic catalog represents a selection of fields which are part of the sales order data model. The
characteristic catalog provides the characteristics that can be chosen when configuring the product allocation
object (for example, sales organization, distribution channel, division, sold-to party).
Step 2: Assign the PAL object ZAATP_PAL to the Material Plant combination using Assign Product to Product
Allocation Fiori app
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Here, we need to specify the material or material plant combination to which the PAL object has to be
assigned. In this e.g, material has been specified 3000000003 and plant ZFG1. No backward and
forward consumption periods have been maintained in this example. So, an availability check against
product allocation will only be executed in the time period containing the requested availability date of
the sales order (as defined in the Check Date Time Type field for the product allocation object).
Step 3: Set up Product Allocation Planning Data for the object ZAATP_PAL using Manage Product Allocation
Planning Data Fiori app
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Here, we need to specify the values for the characteristic combination (CVC) specified in the PAL object
and the planned allocation quantity for each consumption period.
In this e.g, sales organization has been specified Z001, distribution channel Z1, division Z1 and Sold-
to-Party 2000000004. The planned allocation quantity for each weekly period has been specified as 10
EA.
Once, all this data has been maintained, we need to Release the PAL object. A product allocation
object and any related data is only included in availability checks against production allocation if the
object has been released.
In this app, we can use the Show Consumption icon to check the planned, available and consumed
quantity in each consumption time period.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
In this e.g, for the time period 17.04.2017, the planned quantity and available quantity is the same = 10
EA and no quantity has been consumed at the moment.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
The order quantity = 5 EA. The requested delivery date specified in the order = 18.04.2017. So, the
system will perform the availbility check against product allocation in the weekly time period
17.04.2017.
As the available allocation quantity in the weekly time period 17.04.2017 is 10, the system confirms the
full order quantity = 5 EA as seen in the above schedule lines tab.
We can go the fiori app Manage Product Allocation Planning Data and check to see that the
consumption has been updated to reflect the above sales order allocation.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Here, we see that the consumed quantity has been updated to 5 EA and the remaining available
quantity in the weekly time period 17.04.2017 has been updated to 5 EA now.
The order quantity = 12 EA. The requested delivery date specified in the order = 18.04.2017. So, the
system will perform the availbility check against product allocation in the weekly time period
17.04.2017.
As the available allocation quantity in the time period 17.04.2017 is 5 EA the system confirms only 5 EA
as there is no forward or backward consumption specified in PAL object.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Again, we can check the consumption in the fiori app Manage Product Allocation Planning Data.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Here, we see that the consumed quantity has been updated to 10 EA and the remaining available
quantity in the weekly time period 17.04.2017 has been updated to 0 now.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Please refer set up described in section 5.1.2 under section 5 (setup for GUI).
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Step 1: Set up Product Allocation Object ZTEST_PAL using Configure Product Allocation Fiori app.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Here, we have specified the product allocation schema and data relating to:
Periodicity = Week
Unit of measure of the planned allocation quantity = EA
Check Date time Type = Requested Delivery Date
As this scenario involves product allocation at the customer hierarchy and material group level, the
characteristics have been chosen as below:
Sales organization
Distribution channel
Division
Customer Hierarchy
Material Group
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Step 2: Assign the PAL object ZTEST_PAL to the Material Plant combination using Assign Product to
Product Allocation Fiori app
Here, we need to specify the material or material plant combination to which the PAL object has to be
assigned. In this e.g, materials have been specified 3000000020 and 3000000021 with the plant
ZFG1. Backward and Forward consumption periods have been maintained as 1.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
So, first the system searches for the available allocation quantity in the weekly time period containing
the check date of the sales order requirement. In this case, it will search first in weekly time period
17.04.2017.
If the available allocation quantity in the weekly time period 17.04.2017 is insufficient to fulfill the
requirement, the system continues to search for available allocation quantity in previous time periods
starting with the time period immediate left to the current time period. Here, it will search in the weekly
time period 10.4.2017. As the backward consumption has been specified as 1, the system will check only
in one backward time period.
If the earliest possible time period does not provide sufficient available allocation quantity to fulfill the
requirement, the system continues to search for available allocation quantity in subsequent time
periods up to the last possible time period as defined in the Forward Consumption field. Here, it will
search in the weekly time period 24.04.2017. As the forward consumption period has been specified as
1, the system will only check only one subsequent time period immediate right to the current time
period.
Step 3: Set up Product Allocation Planning Data for the object ZTEST_PAL using Manage Product
Allocation Planning Data Fiori app
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Sales organization = Z001, Distribution channel = Z1, Division = Z1 and Customer Hierarchy =
2000000004 and Material Group = 01.
The planned allocation quantity for each weekly time period has been specified as 10 EA.
The planned allocation quantity in the current weekly time period 17.04.2017 = 10 EA.
The planned allocation quantity in the previous weekly time period 13.04.2017 = 10 EA.
This period will be used during Backward Consumption.
The planned allocation quantity in the subsequent weekly time period 24.04.2017 = 10
EA. This period will be used during Forward Consumption.
Use the consumption icon to confirm the allocation quantity in each time period.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
The order quantity = 6 EA. The requested delivery date specified in the order = 19.04.2017. So, the
system will perform the availbility check against product allocation in the weekly time period
17.04.2017.
As the available allocation quantity in the weekly time period 17.04.2017 is 10 EA, the system confirms
the full order quantity = 6 EA.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
We can go the fiori app Manage Product Allocation Planning Data and check to see that the
consumption has been updated to reflect the above sales order allocation.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Here, we see that the consumed quantity has been updated to 6 EA and the remaining available
quantity in the weekly time period 17.04.2017 has been updated to 4 EA now.
The order quantity = 15 EA. The requested delivery date specified in the order = 18.04.2017. So, the
system will perform the availbility check against product allocation in the weekly time period
17.04.2017.
As the available allocation quantity in the weekly time period 17.04.2017 is 4 EA, the system confirms 4
quantity from the current time period. As the backward consumption period has been specified as 1, the
system searches the previous weekly time period 10.04.2017 for the remaining quantity (15-4) = 11. In
the time period 10.04.2017, only 10 EA is allocated and available, the system confirms 10 EA from the
previous weekly time period 10.04.2017.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Next, as the forward consumption has been specified, the system searches for the remaining quantity
(15 4 10) = 1 EA in the subsequent weekly time period 24.04.2017. In the weekly time period
24.04.017, the system confirms 1 EA from the subsequent time period.
So, the system creates a single confirmation schedule line in the current time period with the confirmed
quantities from current and previous time periods (4 + 10 = 14 EA) and create a confirmation schedule
line with the confirmed quantities from the subsequent time period (1 EA).
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Again, we can check the consumption in the fiori app Manage Product Allocation Planning Data.
Here, we see that in the current time period 17.04.2017, the consumed quantity has been updated to 0.
In the previous time period 10.04.2017, the consumed quantity has been updated to 0 and the
remaining available quantity in the subsequent time period 24.04.2017 has been updated to 9 EA now
as the sales order 127 has consumed 1 quantity from this bucket.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
The order quantity = 10 EA. The requested delivery date specified in the order = 19.04.2017. So, the
system will perform the availbility check against product allocation in the weekly time period
17.04.2017.
As the available allocation quantity in the current time period 17.04.2017 and the previous time period
10.4.2017 is 0, the system searches for the available allocation quantity in the subsequent time period
24.03.2017. In the time period 24.04.017, only 9 EA is available, the system confirms 9 EA. As the
forward consumption has been specified as 1, only the first subsequent time period will be searched.
So, the system creates a single confirmation schedule line with the confirmed quantities in the subsequent time
period 24.02.2017.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Again, we can check the consumption in the fiori app Manage Product Allocation Planning Data.
Here, we see that the remaining available quantity in the subsequent time period 24.04.2017 has been
updated to 0 now as the sales order 128 has consumed the available quantity from this bucket.
Customer Hierarchy has been set up such that customer 2000000029 is the higher-level
hierarchy node (1D) and customers 2000000030 & 2000000031 have been set up under the
hierarchy node 2000000029.
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Material Master
Material 3000000020 - Material Group = 01, Strategy Group = 40, Availability Check = Z1
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Material 3000000021 - Material Group = 01, Strategy Group = 40, Availability Check = Z1
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SAP S4 LOGISTICS COOKBOOK - CIC India Initiative
Please refer set up described in section 5.1.2 under section 5 (setup for GUI).
Please refer set up described in section 5.2 under section 5 (setup for Fiori).
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