"Capable to Promise" (CTP) and "Available to Promise" (ATP) in Business Central

 

"Capable to Promise" (CTP) and "Available to Promise" (ATP) in Business Central

To maintain customer satisfaction, it's crucial for companies to provide accurate order delivery dates. Microsoft Dynamics 365 Business Central offers two powerful tools to achieve this: Available to Promise (ATP) and Capable to Promise (CTP). These concepts help businesses manage inventory effectively and provide realistic delivery commitments.

What is "Available to Promise" (ATP)?

Available to Promise (ATP) calculates the earliest possible delivery date based on the current inventory levels and planned receipts. It considers unreserved stock, planned production, purchases, transfers, and sales returns to determine the quantity available to fulfill new customer orders.

  • Calculation Process: ATP checks the available inventory and open purchase orders, then subtracts the quantities already committed to existing customer orders. The resulting figure shows what is available to promise to new customers.

  • Example: If you have 100 units in stock, 70 are already committed to orders, and there is an incoming purchase order for 50 units, ATP calculates 80 units as available to promise after the purchase order is received.

What is "Capable to Promise" (CTP)?

Capable to Promise (CTP) goes beyond ATP by considering production and supply capabilities. It determines the earliest possible delivery date for items not currently in stock by evaluating the time needed for production, procurement, or transfers.

  • Calculation Process: CTP assesses the production capacity, raw material availability, and supply chain constraints to calculate when an item can be made available for delivery if it needs to be produced or procured.

  • Example: If an order requires 10 pieces, and 6 are available in stock or on scheduled orders, CTP will determine when the remaining 4 pieces can be produced or sourced.

How Business Central Uses ATP and CTP

Business Central uses the Order Promising Lines page to calculate and promise delivery dates based on ATP and CTP:

  1. Available to Promise (ATP):

    • If a specific delivery date is not requested by the customer or the requested date can't be met, Business Central calculates the earliest date items can be shipped or delivered based on inventory availability.
    • Formula:
      Shipment Date + Outbound Warehouse Handling Time = Planned Shipment Date
      Planned Shipment Date + Shipping Time = Planned Delivery Date

  2. Capable to Promise (CTP):

    • When the item is out of stock or not on order, Business Central uses CTP to calculate when the item can be produced or procured and shipped to the customer.
    • Formula:
      Planned Delivery Date - Shipping Time = Planned Shipment Date
      Planned Shipment Date - Outbound Warehouse Handling Time = Shipment Date


By utilizing ATP and CTP in Business Central, businesses can provide accurate delivery dates, optimize inventory management, and enhance customer satisfaction. ATP focuses on existing stock availability, while CTP assesses the feasibility of fulfilling orders through production or procurement. Both tools are essential for effective order management and maintaining high levels of service.


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