What is open-to-buy in SAP CA-RT-AP - SAP Assortment Planning?

SAP Term: open-to-buy

• Component: CA-RT-AP

• Component Name: SAP Assortment Planning

• Description: The portion of a budget allotment remaining available for additional purchases at any given moment of a budgetary period amount which is budgeted for the placement of purchase orders.

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• Key Concepts: 
  Open-to-buy (OTB) is a term used in SAP Assortment Planning to refer to the amount of money that is available for purchasing merchandise. It is calculated by subtracting the total amount of merchandise that has already been purchased from the total budget allocated for purchasing merchandise. This allows retailers to plan their purchases more effectively and efficiently. 
  
  How to use it: 
  In SAP Assortment Planning, open-to-buy can be used to determine how much money is available for purchasing merchandise. This can be done by subtracting the total amount of merchandise that has already been purchased from the total budget allocated for purchasing merchandise. This allows retailers to plan their purchases more effectively and efficiently. 
  
  Tips & Tricks: 
  When using open-to-buy in SAP Assortment Planning, it is important to keep track of the total amount of merchandise that has already been purchased and the total budget allocated for purchasing merchandise. This will ensure that the open-to-buy calculation is accurate and up-to-date. 
  
  Related Information: 
  Open-to-buy is closely related to other terms such as inventory turnover, stock turn, and stock velocity. These terms are all used to measure how quickly a retailer’s inventory is being sold and replaced with new merchandise. Understanding these terms can help retailers better manage their inventory and maximize their profits.