Folks,
I have been trying to understand SAP Product Allocation and this is what I think happens. Any experts reading this blog can correct me and post comments and I shall add to this.
Product Allocation
During normal ATP process, the quantities in the order are confirmed against unrestricted stock, but in case of product allocation, the quantities allocated for order is based on a pre-determined criteria and allows you to manage the supply of products to customers so that each customer receives an allocated amount.
Process flow
For product allocation to be performed an LIS table (S140 in standard SAP) is configured and during order processing the quantities are checked against the quantities in LIS. The LIS is maintained based on some standard characteristics like Product Allocation Object, Sales org, DC, Division along with the Allocated Qty.
The same LIS is updated with the order quantity once the order is saved and open allocated quantity is calculated from the difference of the Allocated quantity minus the Order quantity. If the order quantity is greater than the allocated quantity only the order is confirmed only for the allocated quantity.
Primarily the Product Allocation Object acts as a liaison between the product allocation procedure/schema assigned to the Material Master and the LIS table also with some other key configuration steps. This is a high level understanding of Product Allocation.
Click link for configuration steps
Regards,
[V]
I have been trying to understand SAP Product Allocation and this is what I think happens. Any experts reading this blog can correct me and post comments and I shall add to this.
Product Allocation
During normal ATP process, the quantities in the order are confirmed against unrestricted stock, but in case of product allocation, the quantities allocated for order is based on a pre-determined criteria and allows you to manage the supply of products to customers so that each customer receives an allocated amount.
Process flow
For product allocation to be performed an LIS table (S140 in standard SAP) is configured and during order processing the quantities are checked against the quantities in LIS. The LIS is maintained based on some standard characteristics like Product Allocation Object, Sales org, DC, Division along with the Allocated Qty.
The same LIS is updated with the order quantity once the order is saved and open allocated quantity is calculated from the difference of the Allocated quantity minus the Order quantity. If the order quantity is greater than the allocated quantity only the order is confirmed only for the allocated quantity.
Primarily the Product Allocation Object acts as a liaison between the product allocation procedure/schema assigned to the Material Master and the LIS table also with some other key configuration steps. This is a high level understanding of Product Allocation.
Click link for configuration steps
Regards,
[V]
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