To implement available to promise, you begin by defining your ATP rules. ATP rules let you tailor the ATP calculation to suit your business needs. Each rule is a combination of ATP computation options, time fence options, and supply and demand sources to use during an ATP inquiry. You cannot delete an ATP rule, but you can rename or redefine existing rules by updating fields.

You can define multiple ATP rules to reflect th
e specific needs of your organization, and then use different rules to calculate availability for different items or groups of items. Each time you run an ATP check, the rule determines how existing supply and demand are matched. You can choose one of the ATP rules you define as the default ATP rule for your organization. You can update the item attribute ATP Rule to specify a default ATP rule for each item.

ATP Computation Options
You can choose a variety of computation options to suit your business needs. ATP computations use the consumption and accumulate available features. Consumption resolves negative ATP after it is already determined that there is not enough available inventory.
Accumulation uses excess inventory from a period to determine where new demand can be placed. You can choose any combination of the following options:
Backward consumption only
ATP calculates availability for your item period by period. If the available supply quantity for the period does not meet the existing demand for that period, ATP works backward, period by period, and checks if the available supply within each period is sufficient to meet the excess demand. ATP does not combine the available quantities from multiple periods to meet an existing demand.

Backward consumption and accumulate available
ATP accumulates the excess supply from period to period. When demand in a period exceeds supply, this accumulated quantity is dipped into and reduced. When you perform an availability check, the accumulated quantity is available for your demand.

Forward consumption and backward consumption
ATP consumes backwards first. If the available supply quantity for a period is not enough to meet the period’s demand, ATP
steps back period by period to try to satisfy demand. If the demand cannot be met, ATP then moves forward into future periods to check on available supply.
Keep in mind that the ATP rule applies to existing demand and supply, and determines the quantity available on a period by period basis. Your quantity check is done against the results. ATP does not try to forward consume or backward consume your ATP check quantity.

ATP Time Fence Options

You can specify time fences for your ATP rules to restrict the use of both supply and demand. Time fences help you filter the noise out of the ATP calculation. You can implement the following time fence options:

Past Due Demand Days

ATP does not include any demand orders with a due date before this time fence. ATP uses the number of manufacturing workdays you enter for this fence to back off from the current system date and determine the past due time fence.
Use this time fence if you have sales orders, jobs, repetitive schedules, or other demand outstanding with past due dates that you do not plan to fill from existing or planned supply. If the due dates are before the time fence, ATP does not include these orders as demand.

Past Due Supply Days

ATP does not include any supply orders with a due date before this time fence. ATP uses the number of manufacturing workdays you enter for this fence to back off from the current system date and determine the past due supply fence.
Use this time fence if you have purchase orders, jobs, repetitive schedules or other supply orders with past due dates that you do not want to rely on as a source of supply for your ATP calculations. If the due dates are before the time fence, ATP does not include these orders as supply.

Infinite Supply Time Fence

Use this time fence to specify the end of your ATP horizon. ATP considers any demand that falls beyond this time fence as available. Use this time fence as the practical lead time you need to acquire components and build any quantity that a customer may order. You can choose from the following options to determine the infinite supply time fence:
• Cumulative manufacturing lead time
• Cumulative total lead time
• Item total lead time (does not include lead time of components)
• User–defined time fence (specify the number of supply days for your rule)

Accumulation Window

If you choose to accumulate expected surplus in one ATP period to the next, you can limit this accumulation to a specific number of workdays. Oracle Inventory does not treat excess supply as available supply beyond this accumulation window. Oracle Inventory also uses this option in backward consumption calculations, preventing excess supply from a period beyond the accumulation window from covering a shortage in a future period.
You can use the accumulation window to prevent the commitment of supply to satisfy demand with requirement dates far into the future. This is particularly useful if you have an item with high turnover and would likely be able to sell it quickly.

ATP Supply Source Options

You can choose the supply sources for each ATP rule. The ATP rule you use during the ATP inquiry then determines which sources of supply to include in the ATP calculation. Note that supply that falls on a non–manufacturing workday is considered available on the next manufacturing workday. All supply must have a scheduled due date within the ATP rule’s past due supply days window.

Oracle Applications Fusion Cloud - Inventory

Oracle Cloud/Fusion Procurement training will help you develop the fundamental skills required to set up and use the Procurement module. This training covers all the tasks, setups, forms and reports used in Procurement and related modules