The SAP Harmonized Planning Area (HPA):

What Is HPA in SAP IBP?

The Harmonized Planning Area (HPA)—often referred to by its technical name I_SAPIBP2—is SAP’s standardized planning model designed to unify and simplify supply chain planning across different time horizons and business processes. It combines time-series planning (for long-term forecasts and inventory) with order-based planning (for short-term execution and supply orders) within a single, integrated framework.

Business Benefits of HPA

Unified Planning Across Horizons

• Supports both time-series and order-based planning.
• Enables seamless coordination between tactical and operational planning.
• Reduces silos by harmonizing data models across applications.

Faster Decision-Making

• Real-time access to order key figures empowers planners with instant insights.
• Integrated AI-powered forecasting improves accuracy and transparency.

Streamlined Integration

• Built for Real-Time Integration (RTI) with SAP ERP and S/4HANA.
• Uses SAP Cloud Integration to connect with third-party systems and legacy platforms.
• Simplifies setup with predefined content and centralized configuration tools.

Improved Planner Efficiency

• Centralized unit of measure and currency conversion reduces manual errors.
• Harmonized master data types and planning levels ensure consistency.
• Easier onboarding of new planning capabilities thanks to a unified platform.

Scalability and Flexibility

• Adapts quickly to changing market conditions and demand shifts.
• Supports complex supply chain scenarios like co-products, subcontracting, and multi-echelon inventory.

End-to-End Visibility

• Connects demand, supply, inventory, and procurement planning in one place.
• Helps planners see the whole picture—from strategic forecasts to operational orders.

Faster Response to Market Changes

• Real-time integration with SAP S/4HANA and other systems allows for quicker reactions to demand shifts, supply disruptions, or inventory gaps.

Reduced Complexity

• Standardized planning levels and master data types simplify configuration and maintenance.
• Eliminates the need to manage multiple disconnected planning areas.

Scalable and Future-Proof_­

• Easily adapts to new business models, product lines, or geographic expansions.
• Ready for machine learning, sustainability metrics, and scenario planning innovations.

Overview: Integrated Business Planning (I_SAPIBP2)

SAP’s I_SAPIBP2 planning area supports:

• Mid to long-term planning (supply, demand, inventory via time series)
• Short to mid-term planning (order-based supply)
• Flexible integration via RTI, SAP Cloud Integration, or both

Prerequisites

• SAP HANA Cloud is required
• SCM Optimization Cloud Service runs planning algorithms
• SAP IBP Excel Add-in version 2508.2.0+ recommended

Master Data Configuration

• Use simple/compound master data types
• Mandatory types must be configured correctly
• You can enhance models with additional types and attributes

Customer Master Data

• Three customer types for planning, operations, and demand streams
• Connections via transportation lanes or forecast/sales orders
• Demand streams linked through Customer Group and Location ID

Production Master Data

• PDS Header defines main output; PDS Component models inputs
• Co-products supported only in time-series planning
• Activities define steps, inputs, and resource use
• Lead times modeled in days; only linear activities supported

Distribution Master Data

• Transportation Lane is central, with key attributes like source/target location, product, and transport mode
• Lane types: subcontracting (3), stock transfer (7), purchasing (0)
• Lead times in full days; modeled with transportation and goods receipt activities

Procurement Master Data

Two model variants:

• Without location products: vendor → location via lane (unlimited supply unless adjusted)
• With location products: includes Unspecified Purchasing for supply entry points
• Order-based planning doesn’t support Unspecified Purchasing
• Key figures distinguish procurement vs. distribution

 Location Product Master Data

• Location ID and Product ID are key attributes
• Location Type values: P (plant), V (vendor), C (customer)
• Attributes vary by application (e.g., Planner, IO Echelon ID, ABC Code)

Integrating Master Data and Transactional Data

To use planning processes based on I_SAPIBP2, you must first integrate data into SAP Integrated Business Planning (SAP IBP) from your external system or systems.

Depending on your source external system and data required for your business scenarios, SAP best practices are to use the following integration methods:

For SAP S/4HANA and SAP ECC on premise, and SAP S/4HANA Cloud private edition:

Real-time integration to integrate master data, orders, and stock

Real-time integration (RTI): RTI is based on the Core Interface (CIF) and is used for data transfer from SAP ERP Central Component (SAP ECC) or SAP S/4HANA to SAP IBP. For detailed information about RTI, see Real-Time Integration with SAP ECC or SAP S/4HANA.

SAP Cloud Integration (CI) to integrate time-series-specific data through integration add-ons (SAP ERP, Supply Chain Integration Add-On for SAP Integrated Business Planning, and SAP S/4HANA, Supply Chain Integration Add-On for SAP Integrated Business Planning). For more information, see Integration with SAP S/4HANA Cloud Private Edition or SAP S/4HANA or SAP ERP.

SAP S/4HANA Cloud public edition, other SAP and non-SAP systems: SAP Cloud Integration (CI)

In cases of low data volume, you can use file upload to integrate data from any SAP or non-SAP systems.

Supported Features in Integrated Business Planning Based on the I_SAPIBP2 Planning Area

Get an overview of the different SAP Integrated Business Planning (SAP IBP) features supported in the I_SAPIBP2 sample planning area.

Foundation and Cross-Application Topics

The following foundation and cross-application topics are supported:

• Custom alerts
• Alert key figures
• Management of planning notes
• Driver-based planning
• Lag-based snapshots
• ABC/XYZ segmentation
• Rule-based master data
• Management of planning objects
• Purge application jobs
• Copy operators
• Namespace concept
• Application mapping
• Unit of measure (UoM) conversion
• Currency conversion
• Supply Chain Network app

Demand Planning

The following features are supported in demand planning:

• Time series analysis
• Statistical forecasting
• Demand sensing
• Product lifecycle management
• Forecast accuracy calculation
• Lag-based snapshots
• Realignment
• ABC/XYZ segmentation
• Integration and analysis of promotions

Inventory Optimization

The following features are supported in inventory optimization:

• Inventory optimization for an end-to-end supply chain network, including distribution and production
• Operators:
  • Forecast Error
  • Supply Lead Time
  • Global (Multi-Stage) Inventory Optimization
  • Calculate Target Inventory Components
  • Service Level Prediction
  • Multi-Stage Network
  • MRO Inventory Calculation

Time-Series-Based Supply Planning

The following features are supported in time-series-based supply planning (TSP):

• Supply planning for distribution, procurement, and production for the optimizer and the infinite heuristic, including the following features:
  • TS-Based Forecast Consumption algorithm
  • Check Mode algorithm
  • Master data checks
  • TSP customer model entities
• Time-series-based supply planning heuristic (infinite heuristic)
• Time-series-based supply planning optimizer
• Planning Run Profiles – TS Supply Planning app
• Consideration of the following features for the optimizer and the infinite heuristic:
  • Production resource
  • Transport resource
  • Storage resource
  • Multi-purpose resource
  • Minimum/maximum and adjustment key figures
  • Calendars and calendar key figures
  • Confirmed and planned fixed supply elements with sources of supply
  • Freeze horizon
  • Period lot size
  • SoS header validity
  • Co-products
  • Safety stock
  • Unspecified purchasing source of supply
  • Lot-sizing procedures
  • Inventory correction
• Consideration of the following features for the infinite heuristic only:
  • Handling resource
  • Subnetworks
  • Balance the scope of supply
• Consideration of the following features for the optimizer only:
  • Maximum stock
  • Fair share
  • Late delivery
  • Product decomposition

Order-Based Planning

The following features are supported in order-based planning (OBP):

• Supply planning for distribution, procurement, production, subcontracting, and MRP areas
• Response management (allocations planning and response planning)
• Deployment planning
• Transportation load building
• Consideration of constraints:
  • Production resource
  • Transportation resource
  • Minimum/Maximum adjustments
  • Fair share
  • Quota
  • Order lot size
  • Freeze horizon
  • Planning start
• OBP finite heuristic
• OBP optimizer
• Interactive planning
• Planning functions as follows:
  • Gating factors
  • Supply usage information
  • Component validities, withdrawal of components from alternative plants
  • Push of excess stock
  • Sales order confirmations and embedded forecast consumption
  • Base unit of measure (UoM) conversion in planning areas
  • Subnetworks

• SAP
• SAP Harmonized Planning Area
• SAP IBP