What is open-to-buy in SAP IS-R - SAP for Retail?

SAP Term: open-to-buy

• Component: IS-R

• Component Name: SAP for Retail

• Description: Retail Open volume of the available purchasing budget and application for processing budgets.

Smart SAP Assistant

• Key Concepts: 
  Open-to-Buy (OTB) is a feature of the IS-R SAP for Retail component that allows retailers to plan and manage their inventory purchases. It helps retailers to determine the amount of inventory they need to purchase in order to meet customer demand. OTB also helps retailers to manage their cash flow by allowing them to plan their purchases in advance and avoid overstocking or understocking. 
  
  How to use it: 
  To use OTB, retailers must first set up a budget for their inventory purchases. This budget should include the amount of money they are willing to spend on inventory, as well as the types of items they want to purchase. Once the budget is set, retailers can use OTB to plan their purchases and track their progress. OTB will provide an overview of the current inventory levels, as well as a forecast of future demand. This information can then be used to make informed decisions about when and how much inventory should be purchased. 
  
  Tips & Tricks: 
  When using OTB, it is important to keep track of changes in customer demand and adjust the budget accordingly. Additionally, it is important to monitor inventory levels closely and adjust the budget if necessary. This will help ensure that retailers are able to meet customer demand without overstocking or understocking. 
  
  Related Information: 
  For more information about Open-to-Buy (OTB), please refer to the SAP Help Portal or contact your local SAP representative. Additionally, there are many online resources available that provide detailed information about how to use OTB effectively.