Transfer of Requirements (TOR) is a crucial SAP (Systems, Applications, and Products in Data Processing) technology that aids in the planning and execution of material requirements throughout the supply chain. It allows for the automatic movement of demand from one organizational unit to another and improves communication among various departments or organizations. In this post, we’ll look at the TOR functionality in SAP and its importance in optimizing the supply chain process.
The purpose of this page is to explain how the transfer of requirements works in SD. An availability check can only be carried out if the transfer of requirements for goods takes place from sales to purchase or production. Transfer of requirements is a set of data that contains information about the quantity of what material will be required on what date. The transmission of the requirements regulates which delivery or sales requirements must be recorded to tables VBBE or VBBS.
Table of Contents
What is a transfer of Requirements?
Requirements produced in Sales and distribution need to be transferred to the planning of material requirements to ensure that the ordered quantities are available for delivery to the customer on time. This is called requirement Transfer (TOR).
Significance of Replenishment Lead Time
- Customer Satisfaction and Replenishment Lead Time: Product Availability ensures customer happiness. RLT plays an integral part in order promises and delivery timelines.
- Inventory Control: Accurate Real-Time Tracking can prevent stockouts or overstock situations, optimizing inventory levels.
- Production Scheduling: Manufacturers depend on accurate RLT for production planning. It determines when raw materials must be ordered and when completed goods will become available for sale.
Types of Transfer of Requirements
Individual Requirements
for every sales document that is created. The benefit is that one can locate the source document by searching for each condition in the availability summary.
Collective Requirements
Collective requirements incorporates many quantities of records, based on parameters such as plant, batch, place of storage, data, transaction, and a class of specifications. Collective requirements may be created either daily or weekly. The source documents that trigger the collective specifications can not be explicitly defined but can be determined from the order list for the content. Collective requirements combine various requirements based on the following criteria:
- Plant
- Storage Location
- Batch
- Date
- Transaction &
- Requirement class
Such requirements can be defined either daily or weekly. Documents that trigger collective requirements can not be identified directly but can be traced through a list of material orders
Control of TOR I Transfer of Requirements
The control features specific to Sales and Distribution need to be maintained in Customizing
What is the required class and requirement type in SAP SD
What is the requirement class in SAP SD
Requirements Class
The Requirements class contains all planning control functionality. Therefore, it is defined at a global level whether the quality test for the material in the sales and distribution documents will take place on the basis of the ATP quantity (ATP = available to promise) and whether the requirements should be passed on
What is the requirement type in SAP SD?
Requirements type
SAP requirement type is defined by a form of requirement. The form of requirements refers to the class of requirements and their control functions.
Schedule line category
The schedule line category monitors how the specifications should be reviewed for availability and moved to the sales documents
Checking group
It checks whether the system is designed to create individual or collective sales and shipping requirements.
Transfer of Requirements Configuration
What is the configuration path for requirement class and requirement type?
Defining the Requirements Class
Requirement class criteria are the main component in TOR. This is focused on the Sales document. These requirement classes are also used in PP, so make sure that PP and MM are involved in any changes you envisage in the SD module
IMG-Sales & Distribution-Basic Functions-Availability Check & TOR-TOR -Define Requirement Classes
Defining the Requirements Typ
The relationship between requirement type and requirements class many to one
IMG-Sales & Distribution-Basic Functions-Availability Check & TOR-TOR -Define Requirement Types
Assign Requirements Type
Assign requirement type to the relevant item category in the sales order and the MRP type found on the Material Master Record
IMG-Sales & Distribution-Basic Functions-Availability Check & TOR-TOR -Determination of requirement types using transaction
Defining Procedure For Each Schedule Line Category
We deactivate a setting at the schedule line level only where it is already set at the class level of requirements.
IMG-Sales & Distribution-Basic Functions-Availability Check & TOR-TOR -Define Procedure For Each Schedule Line Category
Block quantity confirmation in delivery blocks
This enables us to unreserve or not reserve any quantity that has been confirmed for an order for which delivery is blocked. We have the provision of setting this for different reasons and at different transactions
IMG-Sales & Distribution-Basic Functions-Availability Check & TOR-TOR -Block quantity confirmation in delivery blocks
Maintain Requirements for Transfer of Requirements
In the same way as the requirements used in the access sequence, that is, the transaction to be carried out must be subject to a number of preconditions, requirements may be used to determine that the TOR to MRP is not carried out unless a number of conditions are met
IMG-Sales & Distribution-Basic Functions-Availability Check & TOR-TOR -Maintain Requirements for Transfer of Requirements
Prerequisite for TOR
- TOR needs to be switched on at the Requirements class and Schedule line category level for proper processing.
- The plant must be defined at the item level in the sales document.
- The checking group must be defined in material master in the sales/plant view.
The Materials Management (MM) module further processes needs after passing them along to planning. Cooperation with the MM module is therefore crucial to the seamless integration of the transfer of requirements with subsequent stages of the business process.
In summary, the Transfer of Requirements is an essential step in the sequence of processes that ensure businesses can successfully fulfil customer requirements. By following the necessary configuration procedures and being aware of its complexities, businesses may successfully navigate this complicated system and preserve a careful balance between operational efficiency and customer satisfaction.
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