Product allocation

[Former Member]

hi MM Guru,s

can any one tell me please waht is product alocation and how it,s works

[Former Member · Accepted solution]

Hello subhash

Process of assessing or distributing amounts and quantities of products from one sender object to one or more receiver objects.

For example, from one cost center to multiple cost centers.

The availability check against allocations, which is one application of the check against plans. It is one of the basic methods.

Product allocation procedure A description of a procedure that determines how a product in limited supply is allocated to customers.

Product allocation determination procedure Determines how a product that is only available in restricted quantities is distributed to the customer.

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Ak

[Former Member]

Hi,

A precise planning and controlling mechanism is of the utmost importance for the execution of competitive order processing with guaranteed efficient and timely delivery to the customer of the required order quantity. Unforseen problems, such as production deficits or increased demand can have critical consequences for order processing and must be brought under control as soon as possible.

Product allocation is a function provided by the R/3 system for carrying out these control options intended to help your company to avoid critical requirement and procurement situations. This should enable you to keep production to a minimum at the same time as allowing you to react quickly to bottlenecks and changing market situations.

Product Allocation enables the customer to purchase specific stock up to the amount allocated to him in the planning structure for that specific time period.

This happens like this.A structure is created allocating the quantity of specific stock the customer is allowed to order for a specific time period.When a sales order is created,the system updates this structure with the used quantity.

If the order quantity exceeds the allowed quantity,the system then determines the remaining amount to be called off and prompts the user to change his order quantity to match the available amount.

For more details and example refer to the link,

http://help.sap.com/saphelp_47x200/helpdata/en/93/744d12546011d1a7020000e829fd11/content.htm

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