Supply Creation-Based Confirmation (SBC) in SAP S/4HANA-aATP

In this Blog I would like to explain my learning insights about Supply Creation-Based Confirmation (SBC) functionality .

Supply Creation-Based Confirmation (SBC) is the most significant functionality that is introduced for aATP in OP2022 release, before going to more details about SBC functionality lets have run-through  aATP functional overview to know from where SBC functionality is predominantly used .

The Intelligent Order Promising – S/4HANA advanced ATP:

Advanced Available-to-Promise (aATP) is a business function in SAP S/4HANA that provides a response to order fulfillment requests in Sales and Production Planning. an order fulfillment request consists of the required material, plant, requested quantity, and material availability date.

As an important and integral part of the order fulfillment process, S/4HANA advanced Available-to-promise provides accurate and reliable order promise dates considering the relevant supply in real-time, while protecting companies’ business priorities and profitability goals.

Figure 1: aATP Process Flow

S/4HANA aATP Functional Overview

As you all know aATP functionalities are divided into 3 categories ,as highlighted in the below picture Supply Creation-Based Confirmation (SBC)  is part of Industry Focus solutions which is highly demanded in “Milling & Mining / IM&C” industries.

Figure 2: aATP Functional Overview

Foundation:

• Product Availability Check (PAC)
• Backorder Processing (BOP)
• Product Allocations (PAL)
• ATP Scheduling

Cross-industry:

• Alternative-Based Confirmations (ABC)
• ATP   Analytics
• Interactive ATP
• Integrated ATP

Industry Focus:

• Fashion / Retail
• Automotive / Hi-Tech
• Mill & Mining / IM&C ——————— ( Supply Creation-Based Confirmation (SBC) )
• Consumer Products/ Life Sciences

The SBC is typically used by manufacturing industries especially on “ make-to-order / Assemble-to-order ” scenarios, if there are not enough stock in the warehouse for the requested product, and it is needed to confirm order based on the component availability & resource capacity availability for the purpose of fulfill the demand.

let’s have a look into below section to know more about SBC functionality.

Supply Creation-Based Confirmation (SBC):

Supply Creation-Based Confirmation (SBC) provides an integration between SAP S/4HANA Advanced Available-to-Promise (aATP) and Production Planning and Detailed Scheduling (PP/DS) in SAP S/4HANA. This integration enables confirmations of sales order requirements when the available quantity of the requested product is insufficient.

SBC is come into picture as the successor of “Capable-to-Promise (CATP) & Multilevel ATP(MATP) ” scenarios being newly developed in aATP

Below pictures we can find how similar functionality was exists in SAP APO(gATP & PP/DS integration) with SAP ERP(old) and  S/4HANA side-by-side.

                old SAP-ERP with APO                                   SAP S/4HANA with APO (Side-by-Side)

                                                            Figure 3: ERP v/s S/4 Hana with APO system

Supply Creation-Based Confirmation (SBC) with EPPDS:

The Supply Creation-Based Confirmation (SBC) executes an availability check for the requested product using the Supply Demand-Based Capability Check (SCC) during the sales order creation process.

“Supply Demand-Based Capability Check(SCC)” is the combination of Availability check & Supply Creation, The term capability check means not only checking for material availability but also triggering supply creation for a requirement if necessary. This means, the system creates procurement proposals (planned orders, purchase requisitions, or stock transfer requisitions) in PP/DS for the missing quantity.

Figure 4: SBC process flow with EPPDS

Using SBC functionality now we can call the SAP S/4HANA Manufacturing Planning & Scheduling functionality to create planned orders considering finite capacity and critical component availability and then confirm the orders accordingly.

Solution Highlights:

SBC supports the 2 checks

1. Production Planning-Based Availability Check (PPAC) with supply creation (the net-requirement calculation will be done in PP/DS)
2. Product Availability Check (PAC) with supply creation ( the net-requirement calculation will be done in aATP  )

Process

• Create a sales order
• aATP triggers the Product Availability Check in aATP for the requested material, based on the settings in the sales document and settings in aATP (based on the scope of check)
• If the desired quantity can’t be confirmed or can be confirmed only partially, PP/DS creates corresponding temporary supply elements (planned orders, purchase requisitions, or stock transfer requisitions) for the missing quantity of the product in the sales order item. PP/DS then checks the capacity, if necessary, and plans the production. It creates temporary supply elements, which are immediately visible in the Product View (transaction /SAPAPO/RRP3)
• PP/DS returns the result to aATP
• aATP creates a confirmation based on the check result and the supply creation and provides a delivery proposal for SD
• You save the sales document. This ensures the temporary supply elements are converted into permanent supply elements (for example, planned orders)

How to Activate SBC ?

• You must activate the Availability Check group

Figure 5: Activate aATP Check

• Activate Supply Creation with Corresponding Document Purpose & Availability Checking Group

                               Figure 6:  Enabling Supply Creation check for the SBC Availability Checking Group

• Select Availability Check Type (PAC / PPAC) with corresponding Document Purpose & Availability Checking Group

Figure 7: Availability Check Type selection for SBC

SBC supports the  PAL (Product Allocation ) check at the finished product & after confirmation from SBC the delivery-proposal screen (RACAR) also displays the confirmation schedules

Note: Unlike other aATP functionalities this is only available in On-premises & Private cloud of SAP S/4 HANA

Conclusion

You understand what is SBC in aATP and how to activate using customization.

In the next blog, we will execute SBC Scenario while considering MTO strategy.

Appendix

Help:

https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/f132c385e0234fe68ae9ff35b2da178c/b055b463a31f45a58a9d60bebd2495c6.html