Open-To-Buy (OTB) is a tool that helps buyers plan and monitor their purchasing budgets.
In OTB for Merchandise Planning for
Best Practice Scenario 1_SAP , you can calculate OTB for each month, using the planning data from merchandise planning and the actual data that has been generated. This planning step is run if the planning process is complete. The system analyzes how a planned budget is used.There are three main elements in the planning layout:
An active plan cannot be changed. When the planning phase is complete, it may become apparent that the planning was inaccurate, based on the actual data that is recorded. Extrapolated planning versions should only contain actual data for previous months. Users can only estimate actual data for future months. These planning errors should not be ignored when calculating OTB.
The following formula is used for calculating the available budget:
OTB |
(Planned coverage - actual additional purchases) + (Planned closing stock - approximate closing stock) |
Planned coverage - actual additional purchases |
The system analyzes how a planned budget is used. |
Planned closing stock - approximate closing stock |
An analysis is run to ascertain the difference between planned and actual data. This prevents additional purchases being made due to incorrect planning although not as much as previously planned can be sold. |