WHAT IS ATP STOCK FOR STOCK

A2000 ONLINE SUPPORT DEPARTMENT

KNOWLEDGE BASE

ISSUE      My ATP Stock is mismatched with Stock On Hand? What happened? 

1.   STOCK ON HAND

This is the actual stock that you have in inventory. It reflects the final balance according to this formula, and is reflected in the stock ledger:

 2. WHAT IS ATP STOCK?

The quantity available to sell may not always be the Stock in Hand quantity. For example, there is a PRODUCT-001 that has 100 pieces of Stock in Hand.

        (a) Sales person A may enter a Sales Order of 60 pieces.

        (b) Sales person B may enter a Sales Order of 5 pieces

        (c) Online Order received (not yet processed) may be another 15 pieces

In this scenario, the available to promise for any other new order is no longer 100 pieces. The maximum the user can commit to a new order is 100 – 60 – 5 – 15 = 20 pieces. These 20 pieces is called the Stock ATP (or Available to Promise).  The formula is as follow:

3. WHEN DO WE NEED STOCK ATP?
 
 Note that Stock ATP is not a final stock balance. It is simply a formularized value that helps prevent the company accepting more orders than what is available in stock. 

If you have multiple sales persons or sales channels (like e-commerce or online platforms), AND you do not want to over-sell, then this Stock ATP is very important. 

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