Product Information
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
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
Hi Arun Selvaraj,
Yes PP/DS is embedded into S/4HANA, but to use the component extra license is required to use it.
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.
aATP and ATP comes with S/4HANA only if you want Detail Scheduling then PP/DS is extra
Hi Ruthvik Chowdary,
Thanks for the response.
For aATP also we required to buy additional license i'm right?
Regards,
Arun Selvaraj
no aATP comes with S/4HANA only no extra licence is required
Hi Ruthvik Chowdary ,
Now its clear, thanks for your response.
Regards,
Arun Selvaraj
Follow to get more information 🙂
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.
Yes that's true extra license is required
Hi Ruthvik Chowdary,
If I buy the IBP(Response and supply model) it can cover all the functions of production planning in PPDS?
So that, I can only use PPDS for DS, and whole planning are run in IBP?
Thanks!
Hi Bangbang Bian
that license part I'm not sure better to check with SAP
SAP IBP | Integrated Business Planning Software for Supply Chain
great article. Just one small thing. The word "bought" is use in many instances where I think "brought" is the word you intended to use.
Great document!