Allocation Against SD Contracts

You can reserve Sales and Distribution (SD) contracts using the order allocation run (ARun) function. This allows you to physically reserve stock at the storage location for your customers in advance. Within the contract validity period, customers can now request partial quantities without running the risk that their contract might not be currently available.

You can process orders both with and without contracts in order allocation run. You can perform allocation for fashion contracts only.

Prerequisites

To allocate fashion-relevant contracts, select the Requirement Relevant checkbox in Customizing activity Maintain Sales Document Types for Fashion Management under Sales and Distribution Sales Sales Documents Sales Document Header .

Features

ARun uses different methods for determining the status of allocations. Fashion relevant contracts can only be assigned the status R (Reserved).

You can allocate available unrestricted stock to SD contracts using online ARun (in dialog mode) or batch ARun (background processing). You can also assign an immediate allocation type to a SD contract to perform immediate allocation. The system can automatically create allocations for contract requirements by assigning an ARun type to the appropriate contract document type. If you have entered an ARun type in Customizing for Sales Document Handling (under Logistics - General SAP Fashion Management Order Allocation Run (ARun) Cross-Applications , then contract documents with that order type will automatically have status R when they are saved, for the amount of unrestricted stock available.

If you have a sales order that references a contract (also called a contract release order), and an ARun type has been defined in Customizing for Sales Document Handling, the system can automatically assign status F to the assigned quantity, depending on the release rule (define in Customizing under Logistics - General Order Allocation Run (ARun) Cross-Applications Sales Document Handling Assign Sales Document Rules to Order Types ). This allows follow-on deliveries to be created for the sales order. If a sales order references a contract, and the sales order quantity is less than the amount of stock with status R in the contract, the sales order can be filled in one of the following ways, depending on the setting made in Customizing for Sales Document Handling:

If the sales order quantity is covered by the quantity with status R in the contract and meets the sales order release rule, the system assigns that quantity the status F (Fixed) in the sales order, and the sales order can be delivered. If it does not meet the release rule, the system assigns the available quantity the status R and the sales order is processed again in the next ARun until the appropriate quantity is available.
The sales order takes the available quantity with the status R in the contract, and the system assigns the remaining quantity from unrestricted stock to fill the order requirements

For example: You have a contract for 100 pieces, only 50 with the status R. If you have a sales order for 70 pieces, then one of the following option is applicable:

The sales order receives a quantity of 50 pieces (since that is all that is available in the contract) with status F, H (Fix and Hold) or R, depending on the release rule.
The sales order receives a quantity of 50 pieces from the contract, plus 20 from unrestricted stock, so the entire 70 pieces is available for delivery and receives status F.

It is possible to reduce, reject, or delete quantities in a sales order with reference to a contract. If you select the Restore checkbox for a contract order type in Customizing for Sales Document Handling (under Logistics - General SAP Fashion Management Order Allocation Run (ARun) Cross-Applications , the quantity subtracted from the sales order is returned to the contract.

In addition, if you want to return allocated quantities to the contract, you must select make the following settings. Otherwise, the system returns an error message stating that deletion/reduction is not possible and the quantity remains reserved.

Select the Automatic deallocation checkbox for a contract order type in Customizing under Sales and Distribution Sales Sales Documents Sales Document Item Maintain Item Categories for Fashion Management .
Select the Restore checkbox for the contract order type in Logistics - General SAP Fashion Management Order Allocation Run (ARun) Cross-Applications Sales Document Handling Assign Rule to Order Types .

You can also specify in Customizing whether over-consumption is allowed or not. For example, if you have a contract for 100 pieces, overconsumption allows you to create a sales order for 120 pieces with reference to the contract. However, if you later reduce the sales order to 5, then 95 pieces are returned to the contract (100 – 5), and the remaining 20 (the over-consumed amount) go into unrestricted stock.

Example

The following examples explain how the system reacts to different contract scenarios:

Process	Condition	Result
Rejecting an item in an allocated contract	Automatic deallocation is active	The contract item is deallocated.
Rejecting an item in an allocated contract	Automatic deallocation is not active	Error message: `You cannot change item; item is already allocated`.
Canceling the reason for rejecting a contract item	The order type contains an ARun type	Reactivated items can be allocated to status R.
Canceling the reason for rejecting a contract item	The order type does not contain an ARun type	Contract is saved.
Reducing an item quantity in an already allocated contract	Automatic deallocation of the contract item category is active	The reduced quantity gets deallocated.
Reducing an item quantity in an already allocated contract	Automatic deallocation of the contract item category is not active	Error message: `You cannot change item; item is already allocated`.
Deleting an item from an allocated contract	Automatic deallocation is active	The item is deleted and the following message appears: `Item is de-allocated and deleted`.
Deleting an item from an allocated contract	Automatic deallocation is not active	Error message: `You cannot delete item, item is already allocated`.
Adding a quantity to an existing item in an already reserved contract	The contract type contains an ARun type	The added quantity is allocated to status R.
	The contract type does not contain an ARun type	Contract is saved (No further action is possible).
Creating a sales order with reference to an already allocated contract	The sales order type contains a release rule	The sales order has status F, H or R. If the Fill-Up checkbox is selected, the ARun type is maintained and the quantity of sales order is more than the allocated quantity of the contract, then the remaining quantity will be allocated from the unrestricted stock.
	The sales order type does not contain a release rule	Status R of the contract is transferred to the sales order. If the Fill-Up is selected, the ARun type is maintained and the quantity of sales order is more than the allocated quantity of the contract, then the remaining quantity will be allocated from the unrestricted stock.
Creating a sales order with reference to a non-allocated contract	The sales order type contains an ARun type	The sales order can have status F or R, depending on whether Customizing allows sales orders to be allocated from the unrestricted stock.
	The sales order type does not contain an ARun type	Sales order is saved (No further action is possible).
Rejecting an item with status R or F within a sales order (Contract release order)	Automatic deallocation is active in the sales item category	The rejected quantity goes back to contract with status R when the Restore checkbox is selected.
	Automatic deallocation is not active in the sales item category	Error message: `You cannot change item; item is already allocated`.
Canceling the reason for rejecting an item in a sales order (Contract release order)	The sales order type contains an ARun type	The reactivated item receives status F or R, depending on the release rule
	The sales order type does not contain an ARun type	Sales order is saved (No further action is possible).
Reducing the quantity of an item in an allocated sales order (Contract release order)	Automatic deallocation is not active in the item category for the material ordered in the sales order	Error message `You cannot change item; item is already allocated`.
	Automatic deallocation is active in the item category for the material ordered in the sales order, and the Restore setting for the contract order type is active	The reduced quantity is returned to the contract with status R. The status of the sales order for the remaining item (R or F) is unchanged.
	Automatic deallocation is active in the item category for the material ordered in the sales order, but the Restore setting for the contract order type is not active	The reduced quantity is returned to unrestricted stock. The status of the sales order of the remaining quantity (R or F) is unchanged.
Deleting an item within an allocated sales order (Contract release order)	Automatic deallocation is not active in the item category for the material ordered in the sales order	Error message `You cannot delete item, item is already allocated`.
	Automatic deallocation is active in the item category for the material ordered in the sales order, and the Restore setting for the contract order type is active	The quantity of the deleted item is returned to the contract with status R.
	Automatic deallocation is active in the item category for the material ordered in the sales order, and the Restore setting for the contract order type is not active	The quantity of the deleted item is returned to unrestricted stock.

More Information

Special Order Types