What is backward calculation in SAP PUR-PRP - Procurement Planning?

SAP Term: backward calculation

• Component: PUR-PRP

• Component Name: Procurement Planning

• Description: The act of counting from a certain point in time in the future back to determine the correct start date for producing or sourcing. In SAP S/4HANA for procurement planning, this start date is defined by the milestone "Starting Point".

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• Key Concepts: 
  Backward calculation is a feature of the SAP PUR-PRP Procurement Planning component that allows users to calculate the required quantity of a material based on the available stock and the desired delivery date. This calculation is done in reverse, starting from the delivery date and working backwards to determine the necessary quantity. 
  
  How to use it: 
  To use backward calculation, users must first enter the desired delivery date and then enter the available stock. The system will then calculate the necessary quantity of material needed to meet the delivery date. 
  
  Tips & Tricks: 
  When using backward calculation, it is important to ensure that all relevant data is entered accurately. This includes the desired delivery date, available stock, and any other relevant information. Additionally, users should be aware that backward calculation may not always be accurate due to changes in demand or other factors. 
  
  Related Information: 
  Backward calculation is just one of many features of SAP PUR-PRP Procurement Planning. Other features include forward calculation, which calculates the necessary quantity of material based on the available stock and desired delivery date; and inventory optimization, which helps users optimize their inventory levels for maximum efficiency.