Available to Promise Set up for Order Management

In oracle order management once a sales order is created through the forms interface or through the web it can be viewed later using the sales order form by navigating to the following form,

Orders –> Order organizer

When the form opens, enter the order number that is to be viewed. It opens up the Sales Orders form giving all the details regarding the order. When I tried booking this order to confirm it gave me a message as shown below. The message said ‘No ATP rule defined for this item or one of its components’. Refer to the Oracle Order Management Implementation guide to troubleshoot this error, it refers us to the Oracle Inventory User Guide.

ATP is short form for ‘Available to Promise’. As the words explain it checks if the item is available to be shipped. ATP is a set of rules that are used by Oracle Inventory to decide if the item will be available for shipping on the date specified. For example, if an order is placed on an item the ATP rules calculates if the available quantity of the item on the requested date is present or the first date on which the requested quantity of an item becomes available. The inventory gets an idea on how much items should be ordered and the sales department gets an idea on how fast the item can be shipped.

In Oracle Order Management the default ATP rule is the one that is set for the Master Organization during Organization creation. An ATP rule can be set for each item also. Further user defined ATP rules can also be set which can be selected for an item or organization. The navigation to ATP set is as follows,

Inventory –> Setup –> Rules –> Available to Promise

The following formula is used to calculate ATP as shown in Oracle inventory User’s guide is as follows,

ATP = Planned Production – Committed demand

Where,

Planned Production equates to Planned order, Scheduled receipts, suggested repetitive schedules, nettable quantity in hand.
Committed demand equates to Sales orders, component demand.

Coming back to the above sales order that I was trying to book. Navigate to the Organization Items window as follows,

Inventory –> Items –> Organization Items

Select the item for which the ATP was set and in the organization item form, opened the Order Management tab. You will notice a label called ‘Check ATP’. It has select box with 4 values – ‘none’, ‘material only’, ‘resource only’ and ‘material and resource’. The field below this is the ATP Rule field which allows entry of user defined rules. The third field is the ATP Components field which indicates whether to include additional components checking of BOM in ATP checking. To resolve the booking error, set ‘Check ATP’ to ‘None’ and ‘ATP Components’ to ‘None’. I had to set none in the above two fields because there was no ATP rule defined for this particular item, even though the ATP checked field and the ATP component field were selected (hence the error in booking the Order).

As a workaround, we can define an ATP rule for the item. I can delete (or disable) the item in question and went about creating a new item with an ATP rule attached to it .