Product Allocation Procedures

Set-up For a New Product................................................................................................2

1. Maintain Product Allocation Procedure...............................................................2
2. Add Allocation Procedure to Material Master.....................................................3
3. Define Allocation Object.....................................................................................4
4. Specify Allocation Hierarchy..............................................................................5
5. Define Allocation Period.....................................................................................6
6. Add New Product to Planning Hierarchy............................................................7
7. Add All Other Customer to Planning Hierarchy..............................................8
8. Add Specified Customers to Planning Hierarchy................................................9
Maintain and Review Allocation Details.......................................................................10
1. Creating new allocation details..........................................................................10
2. Reviewing Allocation Details............................................................................15
3. Changing allocation details................................................................................19
Changing Allocation of Unshipped Orders....................................................................20
Technical Configuration Details....................................................................................22
1. Make requirement class relevant for product allocation....................................22
2. Make schedule line category relevant for product allocation............................23
3. Create new info structure...................................................................................24
4. Create update formulas......................................................................................26
5. Assign update formula to new info structure.....................................................27
6. Activate update of info structure.......................................................................28
7. Set planning parameters for info structure.........................................................29
8. Define forward and backward consumption......................................................30
9. Create New Planning Type................................................................................31

1/31/2016

Product Allocation

Set-up For a New Product

This process is a combination of customizing and master data maintenance. During this
process you will make all the set-up entries needed (products and customers) so that the
actual allocation details can be maintained.

1.

Maintain Product Allocation Procedure

In this IMG activity you define the product allocation determination procedure for the
availability check against product allocations.
IMG: Sales and Distribution> Basic Functions> Availability Check and Transfer
of Requirements> Availability Check> Availability Check Against Product
Allocation> Maintain Procedure
Transaction: OV1Z
Define the procedure key and its description. Recommendation: for the procedure key,
use the material number that will appear in the sales order. Start the procedure key with
the prefix P-.
Check the block marked ATP Consumption

1/31/2016

Product Allocation

2.

Add Allocation Procedure to Material Master

The allocation procedure is referenced in the Basic View of the Material Master

1/31/2016

Product Allocation

3.

Define Allocation Object

The Product Allocation Object represents the material under allocation. The object is the
highest level of the product allocation info structure.
IMG: Sales and Distribution> Basic Functions> Availability Check and Transfer of
Requirements> Availability Check> Availability Check Against Product Allocation>
Define Object
Transaction: OV2Z
Define the object key and its description. Recommendation: use the material number as
the object key.

1/31/2016

Product Allocation

4.

Specify Allocation Hierarchy

In this customizing activity, you assign an info structure to the product allocation
determination procedure.
IMG: Sales and Distribution> Basic Functions> Availability Check and Transfer
of Requirements> Availability Check> Availability Check Against Product
Allocation> Specify Hierarchy
Transaction: OV3Z
Create a new entry, and enter your procedure key.
Create one step (step number 10) and a text description.
Enter the info structure that will contain the product allocation information (S701).
Identify the masking character that will be used to create the all other entries in the
planning hierarchy (+).

1/31/2016

Product Allocation

5.

Define Allocation Period

In this customizing activity, you identify the effective dates of the product allocation
procedure. You also determine which allocation object is checked during the effective
period.
IMG: Sales and Distribution> Basic Functions> Availability Check and Transfer
of Requirements> Availability Check> Availability Check Against Product
Allocation> Control Product Allocation
Transaction: OV4Z
Enter your allocation procedure in the dialog box.

Enter step (10).

Enter the Allocation Object defined in Step 3 (above).
In Valid To, enter the date representing the end of the allocation period. Because
allocation is done by week, the system will automatically change the date to the last day
in the week (Sunday).
At the end of the allocation period, any left over product can be shipped to any
customer on a first-come, first-served basis.
Check the Active block.
Enter Conversion Factor (1).
1/31/2016

Product Allocation

6.

Add New Product to Planning Hierarchy

In this master data activity we add the product (represented by the Product Allocation
Object) to the highest level of the Planning Hierarchy.
Menu: Logistics> Logistics Controlling> >Flexible Planning> Master Data>
Planning Hierarchy> Postprocess
Transaction: MC59.

Enter InfoStructure S701 and select the Add member button.

On the next screen, enter the Product Allocation Object, and leave the Sold-to Party
blank. Uncheck the Simulation Only box.

1/31/2016

Product Allocation

7.

Add All Other Customer to Planning Hierarchy

Product allocation does not require that you create a hierarchy entry for every Sold-to
customer. You will create a hierarchy entry only for those customers who will have a
specific allocation. All other customers will share the allocation represented by customer
++++++++++. Since that dummy customer does not exist, you cannot enter it directly
in the planning hierarchy as it will fail the validation. So, we will enter it by a special
program.
IMG: Sales and Distribution> Basic Functions> Availability Check and Transfer
of Requirements> Availability Check> Availability Check Against Product
Allocation> Permit Collective Product Allocation In Info Structures
Transaction: OV7Z

Enter LIS information structure S701. Uncheck the Test button. Click Execute.

1/31/2016

Product Allocation

8.

Add Specified Customers to Planning Hierarchy

In this last step, we add the specific customers for whom we will allocate product. It is
important in this step to ensure that customers who will not receive a specific allocation
are not specifically included.
Menu: Logistics> Logistics Controlling> >Flexible Planning> Master Data>
Planning Hierarchy> Change
Transaction: MC62

At this point we can either type in the list of customers or we can copy the list of
customers from an earlier product. To copy a list of customers, click the Copy from
button, and enter the reference Product Allocation Object. Finally, click Save.

1/31/2016

Product Allocation

Maintain and Review Allocation Details

Now that the set-up has been completed, you can now maintain the quantities that will be
allocated to each customer, by time period.

1. Creating new allocation details

Menu: Logistics> Logistics Controlling >Flexible Planning> Master Data>
Planning > Change
Transaction: MC94

On the first screen, always select Planning type Y_ALLOC(W).

Select the appropriate Product Allocation Object and click Inactive version.

1/31/2016

Product Allocation

10

The actual allocation is controlled at the stock-keeping unit of the finished product,
which is PC (piece). However, since we sell most products by the CAS (case), it is
easier to enter the allocation quantities in cases. So, here we will first fill in the units
per case conversion factor that will allow us to maintain allocation in cases. Follow
this procedure:
1.
Select the row labeled Units per Case by clicking on the button to the left of
the row. The row will become highlighted.
2.
Then, click the magnifying glass with + sign icon (key figure).
2

1/31/2016

Product Allocation

11

3.

From the Edit menu: Select> Select all periods

4.

Click the calculator icon (Distribute)

1/31/2016

Product Allocation

12

46

5.
6.

Enter an equal = sign in the top-most OP field.

For each detailed entry, enter the unit of measure conversion factor. Press
enter. (Entries in the Sum of members row are not saved.)

7.
8.

Click Save.
Now, to enter the actual allocation quantities, repeat Step 1 to maintain the
data.

1/31/2016

Product Allocation

13

Scroll to the
appropriate week
with these arrows.

9.

Select the row labeled Alloc Qty in Cases by clicking on the button to the
left of the row. The row will become highlighted.
10. Then, click the magnifying glass with + sign icon (key figure).

11. After scrolling to the appropriate week, enter the allocation quantity for each
customer, including the default ++++++++++ customer. The system will
accumulate the total into the Sum of members line.
For a new promotional product, enter the allocation data into the column for the
first week the product will become available for each customer.

1/31/2016

Product Allocation

14

2. Reviewing Allocation Details

To see the calculation from cases to pieces, select one of the detail rows and then
click menu: Views> Member. You will now see all of the data for that customer.

Here we see all of the data used in product allocation.

Incoming orders quantity: When sales orders are entered for an allocated product,
the total confirmed quantity that has been allocated to the orders for each week is
displayed here.
Alloc Qty in Pieces: This is the computed allocation quantity.
Customer Requirements: Here you can document how many units a customer has
requested, which may be more than has been allocated. This information may be
useful if a larger quantity of material becomes available.
Open product alloc: This is the difference between the total allocated quantity and
the incoming orders quantity. It represents the quantity that is still available to be
allocated.
Reqs not covered: This is the difference between the customers requirements and
the total quantity allocated.
While useful, this display is sometimes hard to work with as it does not show the
complete picture across all customers. There are some options.
If you select menu: Views> All members, then the complete planning table is
displayed for all customers.

1/31/2016

Product Allocation

15

The table at the top shows the summary for all customers. In the lower table you can
scroll through the display for all customers.
Another reporting option is the Flexible Analysis. It can be activated from the
following menu:
Menu: Logistics> Sales and Distribution> Sales Information System> Flexible
analyses> Evaluation> Execute
Transaction: MCSG

1/31/2016

Product Allocation

16

Enter Evaluation Structure S701, and Evaluation 0001.

Enter the allocation object and the date range of interest.

The report uses Microsoft Excel, and uses macros. Macros must be enabled in your copy
of Excel or the report wont work. To enable macros in Excel, go to menu: Tools>
Macro> Security. From the resulting dialog box, select Medium and then click OK.

1/31/2016

Product Allocation

17

The report shows the total allocation situation by week. Numbers are expressed in stockkeeping units. The report can also be downloaded to your desktop pc for further
manipulation.

1/31/2016

Product Allocation

18

3. Changing allocation details

Now that you have entered allocations, you can change them if the total quantity to be
made available changes. In the example shown, the initial allocation quantity is 1000
cases: 100 cases to customer 100409, 585 cases to customer 100403, and the
remainder, 315 cases, to default customer ++++++++++. If in the future the
quantity to be allocated changes, from 1000 cases to 1200 cases, you can control how
you want to distribute the extra 200 cases.
If you just changed the total from 1000 cases to 1200 cases, the new total will be
allocated to the three customers on a pro-rata basis. However, if you were to firm a
customers allocation, then that number would be protected from a change to the
overall quantity. Normally, you will firm all of the customer-specific allocations, but
not the allocation for the default customer. In that way, you would lock in the specific
allocations and allow the all other customers allocation to float. If we firmed
customers 100403 and 100409, and then changed the overall allocation to 1200 cases,
the 200 case difference would all be added to the default customers total. The
process works the same way if the total allocation quantity is decreased
If you want to firm an allocation, double-click on the value so that it is displayed in
red. Because the firming indicator is not saved, it should always be activated when
you are changing data.

Allocations for customers 100403 and 100409 in week 10/2003 have been firmed.

1/31/2016

Product Allocation

19

Changing Allocation of Unshipped Orders

Originally, Walgreens (customer 100403) was allocated 485 cases in week 10. However,
in order to support a planned in-store promotion, it has been decided to shift 100 cases
from week 10 to week 9. That can be done by changing the allocation as before.
Menu: Logistics> Logistics Controlling >Flexible Planning> Master Data>
Planning > Change
Transaction: MC94

However, Walgreen had already placed an order that had been scheduled, per the original
allocation, for week 10. Here we can use the rescheduling transaction to find the order
and to recheck the availability against the new allocation.
Menu: Logistics> Sales and Distribution> Sales> Backorders> Rescheduling>
Execute
Transaction: V_V2

1/31/2016

Product Allocation

20

Enter the product and plant. Make sure that Unconfirmed documents required is
unchecked.

We can see that the date has been changed from 3/3 (Week 10) to 2/24 (Week 9).
This same technique can be used whenever product allocation changes.

1/31/2016

Product Allocation

21

Technical Configuration Details

The following outlines the configuration entries made to support the product allocation
process described above. It does not have to be repeated for a new product.

1. Make requirement class relevant for product allocation.

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
Transaction: OVZ0
Check the Requirement Type on the Procurement tab in the sales order. Then
check to see which Requirement Category is assigned to the Requirement Type.
IMG: Sales and Distribution> Basic Functions> Availability Check and
Transfer of Requirements> Transfer of Requirements> Define
Requirements Types
Select the appropriate requirement class and check the box marked All. The standard
classes are 031 and 050.

1/31/2016

Product Allocation

22

2. Make schedule line category relevant for product allocation

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
Transaction: OV6Z
Select the appropriate schedule line category and check the box marked All.. The
standard categories are CP and, if you will use Product Selection, PP.

1/31/2016

Product Allocation

23

3. Create new info structure.

IMG: Logistics General> Logistics Information System (LIS)> Data Basis>
Information Structures> Maintain Self-Defined Information Structures (Note:
Client independent)
Transaction: MC21
Copy info structure S140 to your new structure. On first screen, check that the new info
structure is relevant for planning (Planning possible). This must be done before you save
the info structure you will not be able to change it later.

Application is 01 (Sales and Distribution).

Type of info structure is blank (Standard).

Retain all of the key figures, but change the characteristics as needed. The highest level
characteristic must be the Product Allocation Object (field KONOB).
For key figure Product Allocation Quantity, check the Fix block. This will allow you
to freeze an individual allocated quantity when the overall allocation quantity changes.

1/31/2016

Product Allocation

24

In the Key Figures, the first five (Incoming Orders Qty to Open Product Alloc.) are
standard and are copied from S140. The last two, Order Quantity and Target Quantity,
have been added as place holders to store the Allocation Quantity in Cases and the Units
per Case.

1/31/2016

Product Allocation

25

4. Create update formulas.

You will need to create a custom update formula for each characteristic field in the
info structure (except for the high level field KONOB Allocation Object). The
purpose of the formula is to determine whether the system will update the structure
using the value of the characteristic in the incoming order, or will update the all
others value.
IMG: Logistics General > Logistics Information System (LIS)> Logistics Data
Warehouse> Updating> Updating Definition> Specific Definition Using Update
Rules> Maintain Formulas> Sales and Distribution (Note: Client independent)
Transaction: MC1D
The following code checks to see if the sold-to customer in the order being entered is
specifically allocated. If not, it changes the customer to the masked value representing
all other customers.
FORM MCV2_903.
DATA: REPLACE(2).
IMPORT T190H-KOMAS FROM MEMORY ID 'MASKE'.
WRITE T190H-KOMAS TO REPLACE+1(1).
SELECT COUNT(*) FROM S701E
WHERE KONOB = MCVBAP-KOSCH
AND PKUNAG = MCVBAK-KUNNR.
IF SY-DBCNT > 0.
FORMULA_VALUE_OBJECT = MCVBAK-KUNNR.
RETURNCODE = 0.
ELSE.
MCVBAK-KUNNR = SPACE.
TRANSLATE MCVBAK-KUNNR USING REPLACE.
FORMULA_VALUE_OBJECT = MCVBAK-KUNNR.
ENDIF.

1/31/2016

Product Allocation

26

5. Assign update formula to new info structure

IMG: Logistics General Logistics Information System (LIS)> Logistics Data
Warehouse> Updating> Updating Definition> Specific Definition Using Update
Rules> Maintain Update Rules> Create
Transaction: MC24
Select the new info structure and update group (usually group 1).
To the key figure Incoming orders qty, assign standard formula 146.
To characteristic Prod.allocation obj. assign formula 140.
To characteristic Sold-to Customer. assign the new formula 903.
Because both formulas 140 and 146 do not reference any specific info structure, they can
be used in any structure.
Formula 140 identifies the masking character and makes it available to the subsequent
formulas.
Formula 146 determines the update quantity based on the bill of material factor (if the
end product contains two of the allocated items, the formula multiplies the ordered
quantity by two).

1/31/2016

Product Allocation

27

6. Activate update of info structure

In this step you determine the periodicity of the information structure and activate the
update.
IMG: Logistics General Logistics Information System (LIS)> Logistics Data
Warehouse> Updating> Updating Control> Activate Update> Sales and
Distribution
Transaction:OMO1
Select the info structure and then select the period split (day, week, month or fiscal
period) and then activate updating by selecting Synchronous updating (1).

1/31/2016

Product Allocation

28

7. Set planning parameters for info structure.

In this step you set the specific parameters for the info structure you will use for
product allocation.
IMG: Logistics General> Logistics Information System (LIS)> Planning>
Master Data> Set parameters for info structures and key figures (Note: Client
independent)
Transaction: MC7F
Select your info structure from the list. Then, select info structure planning
parameters. The following parameters are the most important:
Planning periods Must match storage periodicity. The storage periodicity is
determined in step 6 (above) where you define the period split for updating the
info structure.
Planning method K for consistent planning.
Exchange rate type and statistics currency are required.
Base unit of measure must be the base unit of the material to be allocated.

1/31/2016

Product Allocation

29

8. Define forward and backward consumption

In this step you define, for the info structure, how many periods in the past and how
many in the future to consider.
IMG: Sales and Distribution> Basic Functions> Availability Check and Transfer
of Requirements> Availability Check> Availability Check Against Product
Allocation> Define Consumption Periods
Transaction: OV5Z
Create an entry for your information structure.
By defining periods for backward consumption, you allow an order to take advantage
of unused allocation quantities from prior periods. It will use up prior allocations
before consuming allocation from the current period.
By defining periods for forward consumption, you allow an order that exceeds the
allocation in the current period to look ahead, and to create additional schedule lines
for future periods.

1/31/2016

Product Allocation

30

9. Create New Planning Type

The planning type is used to maintain the product allocation details.
IMG: Logistics General> Logistics Information System (LIS)> Planning>
Tools> Maintain planning types
Transaction: MC8A

Assign a name to the planning type.

Enter the Info Structure name in the dialog box.

1/31/2016

Product Allocation

31

Now we will make the following adjustments:

Add a text row at the top
Change the text description for the fields used to enter allocation quantity in cases and
the units per case conversion factor.
Make certain rows display only
Add macros to do automatic calculations.
To add a text row, select the top row and then select menu: Edit> Insert line.
Then, select the new row and click Row Attributes.

1/31/2016

Product Allocation

32

Now, change the descriptions of the following rows:

ProdAllocQty to Alloc Qty in Pieces
Order quantity to Alloc Qty in Cases
Target quantity to Units per Case
Select the ProdAllocQty row and click on Row Attributes. In the dialog box, select
Freely defined text and then enter Alloc Qty in Cases in line text.
Similarly, do the same for the other two rows.

1/31/2016

Product Allocation

33

Now, since we only want to be able to maintain the Customer reqmts, Alloc Qty in
Cases and Units per Case rows, we will make all the other rows display-only.
Select the Incoming orders qty row and click Row atrributes.
In the dialog box, change the status to Output line.
Do the same for rows Alloc Qty in Pieces, Open Product Alloc, and Reqs not
Covered.

1/31/2016

Product Allocation

34

Now we will build the macros to automate the calculations.

Select menu: Macro> Create.
In the dialog box, assign a name and description to the macro.

We will do the following calculations:

Alloc Qty in Cases * Units per Case = Alloc Qty in Pieces
Alloc Qty in Pieces - Incoming Orders Qty = Open Product Alloc
Customer Reqmts - Alloc Qty in Pieces = Reqs not Covered

1/31/2016

Product Allocation

35

Using the pull-down, select the first and second Operands and the Result. Do not type in
the Operator use the pull-down and select the operand that relates to a line, not a value.
For multiplication, select operand 6, not 5.

Add the remaining formulas.

1/31/2016

Product Allocation

36

The final step is to assign parameters to the new Planning Type. Select menu: Goto>
Planning type info

1/31/2016

Product Allocation

37