What is planned purchase order in SAP SCM-APO-ATP - Global Available-to-Promise?

SAP Term: planned purchase order

• Component: SCM-APO-ATP

• Component Name: Global Available-to-Promise

• Description: A third-party order processing document. The planned purchase order serves to delay the creation of the purchase order until the latest possible date/time. Providing the planned purchase order has not been converted into a purchase order, the following are possible: The sales order can be modified. Third-party items are considered by backorder processing. In contrast to a purchase requisition, a planned purchase order is always converted into a purchase order.

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• Key Concepts: 
  A planned purchase order is a type of purchase order created in SAP Advanced Planning and Optimization (APO) Global Available-to-Promise (ATP). It is used to plan and manage the procurement of materials from vendors. The planned purchase order is created based on the demand forecast and the current inventory levels. It is used to ensure that the right amount of materials are available at the right time. 
  
  How to use it: 
  The planned purchase order can be created in SAP APO ATP by entering the material number, quantity, and delivery date. The system will then calculate the optimal procurement plan based on the demand forecast and current inventory levels. The planned purchase order can then be converted into an actual purchase order when it is approved by the relevant stakeholders. 
  
  Tips & Tricks: 
  When creating a planned purchase order, it is important to consider the lead time for each material. This will ensure that the materials are available when they are needed. Additionally, it is important to consider any discounts or other incentives that may be offered by vendors when creating a planned purchase order. 
  
  Related Information: 
  SAP APO ATP also provides other features such as capacity planning, supply chain visibility, and inventory optimization. These features can be used in conjunction with planned purchase orders to ensure that materials are available when needed and that inventory levels are optimized.