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April 26, 2021 1 minute read

SAP APO Vs SAP IBP

Dear SAP Friends

In this Blog Will try to understand the Difference between SAP APO (Advanced Planning and Optimization) and SAP Integrated Business Planning, in short, we call SAP IBP.

Before we jump to understand the difference between SAP APO and SAP IBP, Let’s have a look at what changes are made in SAP Eco Space.

SAP APO used to be the go-to planning tool for use with PP, but it has since been deprecated in favour of SAP IBP. The core components of SAP APO are as follows:

Demand Planning
Supply Network Planning
Production Planning and Detailed Scheduling (now part of SAP S/4HANA)
Global Available-to-Promise (GATP)
Transportation Planning/Vehicle Scheduling

Majorly 2 components have been bought into SAP S/4HANA

PP/DS
Some functionalities of gATP have bought into SAP S/4HANA

Infect SAP S/4HANA aATP is much more matured compared to SAP APO gATP.

It has components like

Product Availability Check (PAC)
Back Order Processing (BOP)
Product Allocations (PAL)
Alternative Based Confirmations (ABC)
Release for Delivery (RefDy)

To know more about SAP IBP refer to SAP Integrated Business Planning

Now let’s compare SAP APO and SAP IBP Tools to understand more

To know more you can Refer to below Blogs and Videos

SAP Integrated Business Planning | SAP Blogs

ABC – Alternative Based Confirmation – YouTube

SAP Product Allocation (PAL) – YouTube

Advanced Available to Promise (aATP) – YouTube

SAP S/4HANA Product Allocation Process | SAP Blogs

What’s New in Advanced Available-to-Promise (aATP) Highlights 1909 | SAP Blogs

Advanced Available-To-Promise (aATP) with Back Order Processing in HANA 1809 | SAP Blogs

Please share, Like and Comment on anything else you want to share or add points.

Thanks & Regards

Ruthvik Chowdary

SME – S/4HANA Logistics

SAP Ariba P2P

13 Comments

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Arun Selvaraj

April 28, 2021 at 6:01 am

Hello Ruthvik Chowdary,

Awesome blog, thanks for sharing.

PP/DS is embedded with S/4HANA its right but for getting full benefit if I buy a separate license?

Regards,

Arun Selvaraj

Ruthvik Chowdary

Blog Post Author

April 28, 2021 at 6:06 am

Hi Arun Selvaraj,

Yes PP/DS is embedded into S/4HANA, but to use the component extra license is required to use it.

Arun Selvaraj

April 28, 2021 at 6:16 am

Hi Ruthvik Chowdary,

Thanks for your response.

If my client buys SAP S/4HANA and SAP IBP license, but for getting components in Detail scheduling and ATP I suggest buying PP/DS License I'm right?

Regards,

Arun Selvaraj.

Ruthvik Chowdary

Blog Post Author

April 28, 2021 at 9:23 am

aATP and ATP comes with S/4HANA only if you want Detail Scheduling then PP/DS is extra

Arun Selvaraj

April 28, 2021 at 9:53 am

Hi Ruthvik Chowdary,

Thanks for the response.

For aATP also we required to buy additional license i'm right?

Regards,

Arun Selvaraj

Ruthvik Chowdary

Blog Post Author

April 28, 2021 at 9:59 am

no aATP comes with S/4HANA only no extra licence is required

Arun Selvaraj

April 28, 2021 at 10:11 am

Hi Ruthvik Chowdary ,

Now its clear, thanks for your response.

Regards,

Arun Selvaraj

Ruthvik Chowdary

Blog Post Author

April 28, 2021 at 10:31 am

Follow to get more information 🙂

Sanket Shah

May 26, 2021 at 3:33 am

Ruthvik Chowdary Arun Selvaraj,

On this link , https://help.sap.com/viewer/f132c385e0234fe68ae9ff35b2da178c/2020.000/en-US/c79b0a56d1478c5be10000000a44147b.html

It is mentioned that "The features activated by the Use Advanced ATP Functions switch are not part of the standard SAP S/4HANA Enterprise license. A dedicated license for advanced ATP is required if this switch is set to Active." This means if we have to Activate AATP via OVZ2 tcode then we need additional license

It is creating confusion. Please check and clarify.