Open-to-Buy (OTB) (SAP Library)

Open-to-Buy (OTB)

Purpose

An important application area that makes use of flexible planning is open-to-buy (OTB)

Open-to-Buy is a tool that helps buyers plan and monitor their purchasing budgets. Data involving sales volumes, purchase orders and goods receipts are regularly updated, so buyers can see how much of their budget has already been spent and how much remains available, as well as whether actual conditions were adequately anticipated in their plans. The system can also warn them automatically when they are in danger of going over their spending limits.

Integration

If you want to:	Then you use:
Simply monitor OTB actual statistics only	Retail Information System component
Create planning data and monitor both planned and actual statistics for OTB	PP Sales and Operations Planning component (SOP)

Features

OTB is automatically recalculated whenever certain events occur (goods receipts, creation of new purchase orders, changes in sales volume, etc.).

Ability to plan based on either purchase prices or sales prices.

Early Warning System automatically warns buyers when they are in danger of exceeding their budgets.

Consistent planning method ensures that data is consistent at all levels of an organization.

Ability to drill down to various levels to see applicable data.

Corresponding General Documentation:

PP Sales & Operations Planning

Retail Information System (LO-RIS)