Available to promise (ATP)
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is available to promise (ATP)?
Available to promise (ATP) is how much of an item a distributor can commit to new orders by a given date, including incoming stock not yet promised. It counts available stock plus scheduled supplier receipts that aren’t already promised to other customers, and it is the number behind a delivery date a CSR gives a customer.
How it works
Where available inventory is a snapshot of today, ATP looks forward: it adds incoming purchase orders by their expected dates and subtracts backorders and other orders already waiting for that stock.
Available to promise (ATP) example
With 40 available today and 200 arriving Friday, 150 of which are already promised to backorders, ATP is 40 now and 90 by Friday, not 240.
Related terms
- Available inventoryAvailable inventory is the quantity of an item a distributor can sell right now: the stock on hand minus the stock already committed to open orders.
- BackorderA backorder is the quantity on a customer’s order that a distributor has agreed to supply but can’t ship yet, kept open until stock arrives.
- Lead timeLead time is the time between placing an order and receiving the goods.
- Open orderAn open order is a sales order or purchase order that hasn’t yet been fully shipped, received or closed.
