Product Allocation Configuration in SAP

                                                                                                                        Nikita Chavan

Declaration:

I hereby declare that this document is based on my personal experiences. To the best of my knowledge, this document does not contain any material that infringes the copyrights of any other individual or organization including the customers of Infosys.

CHAVAN NIKITA

Executive Summary:

A precise planning and controlling mechanism is of the utmost importance for the execution of competitive order processing with guaranteed efficient and timely delivery to the customer of the required order quantity. Unforeseen problems, such as production deficits or increased demand can have critical consequences for order processing and must be brought under control as soon as possible.

Product allocation is a function provided by the R/3 system for carrying out these control options intended to help your company to avoid critical requirement and procurement situations. This should enable you to keep production to a minimum at the same time as allowing you to react quickly to bottlenecks and changing market situations.

 

The screenshots provided in the document for illustration are taken from a SAP ECC 6.0 system. These illustrations may vary in part or full in other version of SAP.

 

 

 

Table of Contents:

 

Introduction: 4

Product Allocation Configuration. 5

SYSTEM RUN THROUGH……………….………………………………………………………………….19

1. References. 20

 

 

 

 

 

 

 

 

 

 

 

 

 

Introduction:

 

Product allocation functionality allows one to manage the supply of products which do not follow a fixed pattern of supply. The system can perform availability checks together with product allocation checks. In Production allocation, you can allocate quantity for specific materials at various hierarchical combinations and in turn reserve these quantities for these characteristics. These characteristics or hierarchical combinations can be either the sales area data or this can go even up to customer groups or customer level.

 

Another way to explain the business functions that product allocation functionality can meet is as follows:

 

1. 1.    If the demand is greater than the supply, product allocation functionality provides the ability to distribute supply evenly to the customers and also within the company’s manufacturing capacity

 

1. 2.    It also helps in reserving certain quantities for specific customers who are important to the company in the scenario where there is supply constraint and usually the supply is less than the demand.

 

As per the client requirement, we had configured the product allocation on monthly basis.

 

Requirements for Product Allocation:

For carrying out availability check for product allocation, some requirements must be met:

• Material Set Up in SAP Material Master

 

As shown in the above screenshot, product allocation determination procedure must be entered in the basic data tab.

• Statistics update

At the customer, material and header level, it is required that during customization for Logistics Information System, statistics updating and update group must be set for the IS

Step by step Product Allocation Configuration:

 

Step 1: Creating Key Figure Catalogue – (MC18)

 

The field catalog contains the fields that are can be used for the rules-based availability check and product allocations. These fields are present in the selection criteria to check the table update after order or delivery creation.

 

We have maintained “ZZKE” for Key figure Catalogue. This contains fields which are updated after order creation. “ZZCH” contains characteristic catalogue which contains fields for which the data is maintained for the Product allocation check to get activated.

 

Path: IMG -> Logistics-General -> Logistics Information System (LIS) -> Logistics Data Warehouse -> Data Basis -> Field Catalogs -> Maintain Self-Defined Field Catalogs

 

 

Step 2: Define Information structures – (MC21)

 

Path: IMG -> Logistics-General -> Logistics Information System (LIS) -> Logistics Data Warehouse -> Data Basis -> Information Structures ->Maintain Self-Defined Information Structures

 

Step 3: Setting Parameters for Information structures and Key figures (MC7F)

 

We maintain the planning method in this step by specifying the planning periods for e.g. it can be either Weekly or Monthly.

 

Path: IMG -> Logistics-General -> Logistics Information System (LIS) -> Planning -> Master data -> Set Parameters for Info structures and Key figures

Step 4: Maintain Update Groups –

It is the update rule to process the order data to the table.

 

Plan: IMG -> Logistics-General -> Logistics Information System (LIS) -> Logistics Data Warehouse -> Updating -> Update Definition -> General Definition Using Update Rules -> Maintain Update Groups

 

Step 5: Maintain Update Rules – (MC24)

Update rules consist, for example, of the source field, the event which triggers the update, requirements and formulas. Once we have defined the update rules, the corresponding update programs are automatically generated.

The maintenance screen lists all of the key figures in the information structure for which you can define update rules. If no update rules have been defined by the time that updating is created, then all available information from the information structure definition will be proposed.

 

Path – IMG -> Logistics-General -> Logistics Information System (LIS) -> Logistics Data Warehouse -> Updating -> Updating Definition -> Specific Definition Using Update Rules -> Maintain Update Rules

1. a. Incoming Orders Qty (Confirmed Qty)

 

Characteristics for Incoming orders qty

1. b. Order Quantity

Characteristics for Orders qty

 

1. c. Delivery Quantity

 

Characteristics for Delivery quantity

 

Charateristics for Delivery quantity

 

Step 6: Activate Update – (OMO1)

 

          This is required as to update the table with order details, material information and to cross check if the order placement is possible or the limit for each customer is reached. Here we must specify the allocation period and type of updating for each update parameters.

 

Path: IMG -> Logistics-General -> Logistics Information System (LIS) -> Logistics Data Warehouse -> Updating Control -> Activate Update

 

 

 

Step 8: Assignupdate group at item level – (OVRP)

Path – IMG -> Logistics-General -> Logistics Information System (LIS) -> Logistics Data Warehouse -> Updating Control -> Settings: Sales -> Update Group -> Assign Update Group at Item Level

 

 

 

Step 9: Assign Update group at header level – (OVRO)

 

Path – IMG -> Logistics-General -> Logistics Information System (LIS) -> Logistics Data Warehouse -> Updating Control -> Settings: Sales -> Update Group -> Assign Update Group at Header Level

 

 

 

Step 10: Create product allocation procedure – (OV1Z)

This procedure must be mentioned in the material master. Procedure must be assigned to the Info structure in the product allocation hierarchy. A criterion for planning hierarchy is determined by info structure. The product allocation is stored in the planning hierarchy. Several objects with different validity periods can be assigned to the procedure.

 

Path – IMG -> Sales and Distribution -> Basic Functions -> Availability Check and Transfer of Requirements -> Availability Check -> Availability Check against Product Allocation -> Maintain Procedure

 

 

 

Step 11: Define Allocation Object –

This object is used in Product Allocation Determination Procedure. Product allocations are stored in planning hierarchy by allocation object. This object has to be assigned to the product allocation procedure for the product allocation to be carried out.

 

Path – IMG -> Sales and Distribution -> Basic Functions -> Availability Check and Transfer of Requirements -> Availability Check -> Availability Check against Product Allocation -> Define Object

 

 

 

Step 12: Specify Hierarchy – (OV3Z)

In this, info structure is assigned to product allocation procedure to display statistical structures. Planning hierarchy is determined according to assignment of allocation object and info structure to product allocation determination procedure.

 

Path – IMG -> Sales and Distribution -> Basic Functions -> Availability Check and Transfer of Requirements -> Availability Check -> Availability Check against Product Allocation -> Specify Hierarchy

 

 

Step 13: Define consumption period for product allocation –

We have to define (past and future) consumption periods for product allocation quantities. If we want to restrict allocation for current month or week, we keep backward and forward consumption data (as seen in the below screenshot) as blank so that it checks only for current month/week.

 

Path – IMG -> Sales and Distribution -> Basic Functions -> Availability Check and Transfer of Requirements -> Availability Check -> Availability Check against Product Allocation -> Define Consumption Periods

 

 

 

Step 14: Setting Validity period – (OV4Z)

 

In this step it we define the validity of the product allocation object to be determined at the time of order/Delivery creation.

 

Path – IMG -> Sales and Distribution -> Basic Functions -> Availability Check and Transfer of Requirements -> Availability Check -> Availability Check against Product Allocation -> Control Product Allocation

 

 

 

 

Step 15: Define Transfer of Requirements – (OVZ0)

In this it is determined whether availability check should be run for product allocations or not. It can be determined in each requirements class

 

Path – IMG -> Sales and Distribution -> Basic Functions -> Availability Check and Transfer of Requirements -> Availability Check -> Availability Check against Product Allocation -> Define Flow According to Requirement Category

 

 

 

 

Step 16: Define Schedule line categroy for Product allocation – (VOV6)

 

In this it is determined whether or not availability check is to be carried out for the respective schedule line category.

 

Path – IMG -> Sales and Distribution -> Sales -> Sales Documents -> Schedule Lines -> Define Schedule Line Categories

 

 

 

Step 17: Define process flow for Schedule line category –

 

Path – IMG -> Sales and Distribution -> Basic Functions -> Availability Check and Transfer of Requirements -> Availability Check -> Availability Check against Product Allocation -> Process Flow for Each Schedule Line Category

 

 

 

Step 18: Create Planning Type – (MC8A)

 

Path – IMG -> Logistics-General -> Logistics Information System (LIS) -> Planning -> Tools -> Maintain Planning Types

 

 

 

Step 19: Planning Hierarchy – (MC62)

 

To enable product allocation, you need to add a member in LIS via Tcod MC62. Selected Planning hierarchy on menu path and click Revise. Specify the info structure S750 and set radio button “Add member”.

 

 

 

Here we have maintained the proportion as 100%, which can be modified as per the requirement.

The total for a product group should always be 100% hence the masking character percentage is mentioned as 0.

 

Now, we go to tcod MC63 in display mode and specify the Product allocation object and Sales district.

We can see the Sold-to-party were listed here since we added just now.

 

 

As of now, the Sold-to-party already added to Info structure. We need to maintain a quota to this Sold-to-party for product allocation limitation.

 

We can do this in MC94. Specified the Product allocation object, Sales district, Sold-to-party same as before, and select Inactive Version.

 

For below instance, we put quota 20 units in Month of august and save this change.

 

MASKING –

          In certain cases, the same product can be used for multiple customer and cutomer tier combination. For this instead of maintaining the same sales area and material combination for multiple ship to party, we mask the fields for ship to party and customer tier.

          This is done as per the below screenshot:

 

Thus the above allocation will be valid for all the customers allowed in the above mentioned sales area and material combination.

 

System Run Through –

            Material VRCLTESTB is assigned 20 quantities for particular sales area combination.

 

 

Creating an order –

 

 

The “On Order quantity” chagned from 46 to 47 –

 

After Delivery creation, change in Delivery quantity seen –

 

MC94:

 

This transaction gives the details of the allocation quantity, cofirmed, order and delivery quantity for a particular sales area and material com

 

Creating an order after the allocation quantity and confirmed quantity are equal:

 

The Confirmed quantity is seen as zero as the quantity is exceeding the allocated quantity.

 

As mentioned earlier, client requirement for monthly product allocation and delivery quantity updation were carried out after making changes in the routines.

Routine changes were made to meet client requirements.

 

 

Note: For screenshots please refer to the attached document. I have updated the screenshots as per the steps.