Creating sales order
Sales Order Planning and Demand Overview
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How to complete your order planning and demand overview in Business Central?
When you create sales orders in Business Central , as a sales person, you would often like to know if the items are available or if it’s possible to ship them to the customer or when it is possible.
This is what happens in the video
Some of the functionality for that, is sales order planning and demand overview.
I’ve created a sales order here, and I want to enter to line, first of all line number, item number 1000, quantity of 80 on the date 25th of April.
Now entering the quantity makes a pop up occur in the header.
And it says the available inventory is less than the entered quantity, and I can click show details to see what this is about.
So my available inventory is 73.
And my shortage is 70, because I have other demands.
And I can see that there’s no earliest availability date calculated, so it’s not possible, easy to say, when it’s available.
Let me make another line, item number 1100, quantity of 32.
And it pops up again, when I click the show details I can see here, in this scenario, it could actually calculate an earliest availability because the item is available in here at that date.
So this is the easiest way of getting the overview on the notification.
And from in here, I could also create a purchase order directly if I wanted to.
Now those are both production items.
Next functionality I have, that I would like to show, is on the action plan, demand overview and planning.
The order promising is shown in another video that’s a little more complex.
The demand overview provides me an overview of the specific items on the sales order.
And I can see all the events here, see what is happening, what is my demand.
So this provide me an overview, how many is reserved, if I’m using reservation, etc.
So this is a short overview of my demands, and I can specify periods, etc, and I could also include to see all demands, if I want to see depending demand, etc.
So in this view with all demands, it’s a little more complex, but it tells me what is happening, when is it happening, etc.
That’s my demand overview.
The other functionality is the planning.
And the planning opens a window where it’s possible for me to both see the actions by events, but also to create production orders.
So this is a little more not complex, but it’s a manual way of quickly creating production orders in here.
So if I view my items per event, the first one item 1000, I can see everything that is happening and my projected available balance and my forecasted inventory, if I’m using forecast and I can scroll down to see on the specific date, what is happening, who else is getting for which customers etc.
So this is a very nice overview and I can go into the documents, either the sales order, the production oldest etc., from here.
And I could do the same of course with the front wheel.
And from here, I could also create production orders, so it’s an easy way for me to get this nice overview and to manually quickly create a production order.
Creating Production Orders from Sales Orders
Sales Order Promising with Available to promise (ATP) and Capable to promise (CTP)
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Create Production Orders from Sales Orders
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You can create production orders for produced items directly from sales orders.
To create a production order from a sales order
Select the sales order you want to create a production order for.
Choose the Planning action. The Sales Order Planning page shows the availability of the item.
Choose the Create Prod. Order action.
Select the status and order type.
Choose the Yes button to create one or more production orders for the lines that have Prod. Order in their Replenishment System field.
Demand lines that have Prod. Order in the Replenishment System field represent underlying production orders. After you generate these production orders, remember to identify any unfulfilled component demand for them. Use the Order Planning page or the Replan action to identify unfulfilled demand.
When you create production orders for sales orders with the Sales Order Planning page, order-to-order links are applied between demand and supply. When order-to-order links exist, the planning system doesn't include linked supply or inventory in the balancing procedure. To learn more about balancing, go to Order-to-order links .
The following table describes two ways to create production orders.
Setting Up Manufacturing Manufacturing Inventory Purchasing Design Details: Supply Planning Setup Best Practices: Supply Planning Work with Business Central
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can someone explain the order planning
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Take a look at https://docs.microsoft.com/en-us/dynamics365/business-central/production-planning
What exact information do you want to research?
In general, Order Planning displays all new demand along with availability information and suggestions for supply. It provides the visibility and tools needed to effectively plan demand from sales lines and component lines and then create different types of supply orders directly.
Refer to this Doc for more information: docs.microsoft.com/.../production-how-to-plan-for-new-demand
can someone explain to me the planning worksheet
how can i regenerate a plan
Planning worksheet is used to calculate the master production schedule and material requirements based on actual and forecasted demand.
Refer to this doc: docs.microsoft.com/.../production-how-to-run-mps-and-mrp
Re-run calculate plan button, it will cover the previous planned order.
best you start with docs.microsoft.com/.../production-planning
that page is also available in french.
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- Dynamics 365 Business Central: How to Create a Sales Order
Today we are going to talk about Sales order, what do we have on a sales order? we have a customer, we have to sell it to someone, and we usually have an item just like we created in the last video.
A sales order is a transaction that moves the item to the customer and creates a liability for the customer to pay us back if we actually get into how that works in a day to day life for most of us. If I go into a coffee store and I buy a drip coffee, that’s a sales transaction and in the coffee store they will sell it to a person, to me, the item would be the drip coffee and immediately they deliver the item to me and charged. So, its shipped and invoiced like in business central terms.
Creating an item We are going to go through creating a sales order to a customer with an item. We start out by creating an item. Go into my item list, click new, pick an item with no sales tax. Put in the description and I’m going to close it out and open it up again. The reason because I’m doing this is because it needs to save before I can put in a picture. I’m going to import a picture, here we have out drip coffee and now it loads up. We’ve created the first thing.
Create a customer Then we are going to go ahead and create a customer. In order to get back to the main menu in business central, I just click here in Cronus USA and then I get back into the main menu. Now I go into customers and create a new one. Here I’ going to pick a cash payment customer. The system automatically sets up a few things and all I must do is put in the name, and again I close. Now I have the customer here, click on it again to get in a picture. Always going to put in pictures, Close it out. Now we have a customer.
Create a Sale Finally, we want to create a sale. We go back into Cronus and I go into create a new sales order right here, so here we want to pick who the sales orders to. Now all I must do is start typing the name and it finds it and then it automatically assumes that I’m going to sell an item. We are so let's go ahead and look for the item. It’s a medium drip coffee. I sold one and the price was 3.99 good coffee, and then I go ahead and post. What I want to do is ship an invoice, because I have shipped the item, meaning I have delivered it and I have a bill for the item which means that I’m going to invoice it.
It’s the same thing as the receipt that you would get at a coffee store. We go ahead and ship an invoice, its posted. We have the invoice. The system asks you if you want to see the invoice. Here is the invoice and this is basically the same thing as the receipt you would get in a coffee store.
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Design Details - Central Concepts of the Planning System| Microsoft Docs
The planning functions are contained in a batch job that first selects the relevant items and period to plan for. Then, according to each item’s low-level code (BOM position), the batch job calls a code unit, which calculates a supply plan by balancing supply-demand sets and suggesting possible actions for the user to take. The suggested actions appear as lines in the planning worksheet or the requisition worksheet.
The planner of a company, such as a purchaser or a production planner is presumed to be the user of the planning system. The planning system assists the user by performing the extensive but rather straightforward calculations of a plan. The user can then concentrate on solving the more difficult problems, such as when things differ from normal.
The planning system is driven by anticipated and actual customer demand, such as forecast and sales orders. Running the planning calculation will result in the program suggesting specific actions for the user to take concerning possible supply from vendors, assembly or production departments, or transfers from other warehouses. These suggested actions could be to create new supply orders, such as purchase or production orders. If supply orders already exist, the suggested actions could be to increase or expedite the orders to meet the changes in demand.
Another goal of the planning system is to ensure that the inventory does not grow unnecessarily. If demand decreases, the planning system will suggest that the user postpone, decrease in quantity, or cancel existing supply orders.
MRP and MPS, Calculate Net Change Plan, and Calculate Regenerative Plan are all functions within one code unit that contains the planning logic. However, the supply plan calculation involves different sub systems.
Note that the planning system includes no dedicated logic for capacity leveling or fine scheduling. Therefore, such scheduling work is performed as a separate discipline. The lack of direct integration between the two areas also means that substantial capacity or schedule changes will require that the planning is rerun.
Planning parameters that the user sets for an item or a group of items control which actions the planning system will suggest in the various situations. The planning parameters are defined on each item card to control when, how much, and how to replenish.
Planning parameters can also be defined for any combination of item, variant, and location by setting up a stockkeeping unit (SKU) for each needed combination, and then specifying individual parameters.
For more information, see Design Details: Handling Reordering Policies and Design Details: Planning Parameters .
Planning Starting Date
To avoid a supply plan that incorporates open orders in the past and suggests potentially impossible actions, the planning system treats all dates before the planning starting date as a frozen zone where the following special rule applies:
All supply and demand before the starting date of the planning period will be considered a part of inventory or shipped.
In other words, it assumes that the plan for the past is executed according to the given plan.
For more information, see Design Details: Dealing with Orders Before the Planning Starting Date .
Dynamic Order Tracking (Pegging)
Dynamic Order Tracking, with its simultaneous creation of action messages in the planning worksheet, is not a part of the supply planning system in Business Central . This feature links, in real-time, the demand and the quantities that could cover them, whenever a new demand or supply is created or changed.
For example, if the user enters or changes a sales order, the dynamic order tracking system will instantly and search for an appropriate supply to cover the demand. This could be from inventory or from an expected supply order (such as a purchase order or a production order). When a supply source is found, the system creates a link between the demand and the supply, and displays it in view-only pages that are accessed from the involved document lines. When appropriate supply cannot be found, the dynamic order tracking system creates action messages in the planning worksheet with supply plan suggestions reflecting the dynamic balancing. Accordingly, the dynamic order tracking system offers a very basic planning system that can be of help both to the planner and other roles in the internal supply chain.
Accordingly, Dynamic Order Tracking can be considered a tool that assists the user in assessing whether to accept supply order suggestions. From the supply side, a user can see which demand has created the supply, and from the demand side, which supply should cover the demand.
For more information, see Design Details: Reservation, Order Tracking, and Action Messaging .
In companies with a low item flow and less advanced product structures, it may be adequate to use the Dynamic Order Tracking as the main means of supply planning. However, in busier environments, the planning system should be used to ensure a properly balanced supply plan at all times.
Dynamic Order Tracking versus the Planning System
At a quick glance, it may be difficult to differentiate between the planning system and Dynamic Order Tracking. Both features display output in the planning worksheet by suggesting actions that the planner should take. However, the way this output is produced differs.
The planning system deals with the entire supply-demand pattern of an item through all levels of the BOM hierarchy along the time line, whereas Dynamic Order Tracking only addresses the situation of the order that activated it. When balancing demand and supply, the planning system creates links in a user-activated batch mode, whereas Dynamic Order Tracking creates the links automatically and on the fly, whenever the user enters a demand or a supply in the program, such as a sales order or purchase order.
Dynamic Order Tracking establishes links between demand and supply when data is entered, on a first-come/first-served basis. This may lead to some disorder in priorities. For example, a sales order entered first, with a due date next month, may be linked to the supply in inventory, while the next sales order due tomorrow may cause an action message to create a new purchase order to cover it, as illustrated below.
In contrast, the planning system deals with all demand and supply for a particular item, in prioritized order according to due dates and order types, that is, on a first-needed/first-served basis. It deletes all order tracking links that were created dynamically and reestablishes them according to due date priority. When the planning system has run, it has solved all imbalances between demand and supply, as illustrated below for the same data.
After the planning run, no action messages remain in the Action Message Entry table, because they have been replaced by the suggested actions in the planning worksheet
For more information, see Order Tracking Links during Planning in Design Details: Balancing Supply with Demand .
Sequence and Priority in Planning
When establishing a plan, the sequence of the calculations is important to get the job done within a reasonable timeframe. In addition, the prioritization of requirements and resources play an important role in obtaining the best results.
The planning system in Business Central is demand-driven. High-level items should be planned before low-level items, because the plan for high-level items might generate additional demand for the lower-level items. This means, for example, that retail locations should be planned before distribution centers are planned, because the plan for a retail location may include additional demand from the distribution center. On a detailed balancing level, this also means that a sales order should not trigger a new supply order if an already released supply order is can cover the sales order. Likewise, a supply carrying a specific lot number should not be allocated to cover a generic demand if another demand requires this specific lot.
Item Priority / Low-Level Code
In a manufacturing environment, the demand for a finished, sellable item will result in derived demand for components that comprise the finished item. The bill-of-material structure controls the component structure and can cover several levels of semi-finished items. Planning an item at one level will cause derived demand for components at the next level, and so on. Eventually, this will result in derived demand for purchased items. Consequently, the planning system plans for items in order of their ranking in the total BOM hierarchy, starting with finished saleable items at the top level and continuing down through the product structure to the lower level items (according to the low-level code).
The figures illustrates in which sequence the system makes suggestions for supply orders at the top level and, assuming that the user will accept these suggestions, for any lower-level items as well.
For more information about manufacturing considerations, see Design Details: Loading the Inventory Profiles .
Locations / Transfer-Level Priority
Companies that operate at more than one location may need to plan for each location individually. For example, an item’s safety stock level and its reordering policy may differ from one location to another. In this case, the planning parameters must be specified per item and also per location.
This is supported with the use of SKUs, where individual planning parameters can be specified at the SKU level. An SKU can be regarded as an item at a specific location. If the user has not defined a SKU for that location, the program will default to the parameters that have been set on the item card. The program calculates a plan for active locations only, which is where there is existing demand or supply for the given item.
In principle, any item can be handled at any location, but the program’s approach to the location concept is quite strict. For example, a sales order at one location cannot be fulfilled by some quantity on stock at another location. The quantity on stock must first be transferred to the location specified on the sales order.
For more information, see Design Details: Transfers in Planning .
Within a given SKU, the requested or available date represents the highest priority; the demand of today should be dealt with before the demand of the coming days. But apart from this some kind of priority, the different demand and supply types are sorted according to business importance to decide which demand should be satisfied before satisfying another demand. On the supply side, the order priority will tell what source of supply should be applied before applying other sources of supply.
For more information, see Design Details: Prioritizing Orders .
Demand Forecasts and Blanket Orders
Forecasts and blanket orders both represent anticipated demand. The blanket order, which covers a customer’s intended purchases over a specific period of time, acts to lessen the uncertainty of the overall forecast. The blanket order is a customer-specific forecast on top of the unspecified forecast as illustrated below.
For more information, see the “Forecast Demand is Reduced by Sales Orders” section in Design Details: Loading the Inventory Profiles .
All items should be planned for, however, there is no reason to calculate a plan for an item unless there has been a change in the demand or supply pattern since the last time a plan was calculated.
If the user has entered a new sales order or changed an existing one, there is reason to recalculate the plan. Other reasons include a change in forecast or the desired safety stock quantity. Changing a bill-of-material by adding or removing a component would most likely indicate a change, but for the component item only.
The planning system monitors such events and assigns the appropriate items for planning.
For multiple locations, the assignment takes place at the level of item per location combination. If, for example, a sales order has been created at only one location, the program will assign the item at that specific location for planning.
The reason for selecting items for planning is a matter of system performance. If no change in an item’s demand-supply pattern has occurred, the planning system will not suggest any actions to be taken. Without the planning assignment, the system would have to perform the calculations for all items in order to find out what to plan for, and that would drain system resources.
The full list of reasons for assigning an item for planning is provided in Design Details: Planning Assignment Table .
The planning options in Business Central are:
- Calculate Regenerative Plan – Calculates all selected items, whether it is necessary or not.
- Calculate Net Change Plan – Calculates only those selected items that have had some change in their demand-supply pattern and, therefore, have been assigned for planning.
Some users believe that net change planning should be performed on the fly, for example, when sales orders are entered. However, this could be confusing because dynamic order tracking and action messaging are also calculated on the fly. Besides, Business Central offers real-time available-to-promise control, which provides pop–up warnings when entering sales orders if the demand cannot be fulfilled under the present supply plan.
In addition to these considerations, the planning system only plans for those items that the user has prepared with appropriate planning parameters. Otherwise, it is assumed that the user will plan the items manually or semi-automatically by using the Order Planning feature.
For more information about the automatic planning procedures, see Design Details: Balancing Demand and Supply .
Demand and supply can carry variant codes and location codes that must be respected when the planning system balances demand and supply.
The system treats variant and location codes as item dimensions on a sales order line, inventory ledger entry, and so on. Accordingly, it calculates a plan for each combination of variant and location as if the combination were a separate item number.
Instead of calculating any theoretical combination of variant and location, the program calculates only those combinations that actually exist in the database.
For more information on how the planning system deals with location codes on demand, see Design Details: Demand at Blank Location .
Apart from general item dimensions, such as item number, variant code, location code, and type of order, each demand and supply event can carry additional specifications in the form of serial/lot numbers. The planning system plans these attributes in certain ways depending on their level of specification.
An order-to-order link between demand and supply is another type of attribute that affects the planning system.
Certain attributes on demand are specific and must be matched exactly by a corresponding supply. The following two specific attributes exist:
- Demanded serial/lot numbers that require specific application (The SN Specific Tracking or Lot Specific Tracking check box is selected on the Item Tracking Code Card page for the item tracking code that is used by the item.)
- Links to supply orders created manually or automatically for a specific demand (order-to-order links).
For these attributes, the planning system applies the following rules:
- Demand with specific attributes can only be fulfilled by supply with matching attributes.
- Supply with specific attributes can also satisfy demand that does not ask specifically for those attributes.
Accordingly, if a demand for specific attributes cannot be met by inventory or projected supplies, the planning system will suggest a new supply order to cover this specific demand with no regard of planning parameters.
Serial/lot-numbered items without specific item tracking setup may carry serial/lot numbers that do not need to be applied to the exact same serial/lot number, but can be applied to any serial/lot number. This gives the planning system more freedom to match, for example, a serialized demand with a serialized supply, typically in inventory.
Demand-supply with serial/lot numbers, specific or non-specific, are considered high priority and are therefore exempt from the frozen zone, meaning that they will be part of planning even if they are due before the planning starting date.
For more information, see the “Serial/Lot Numbers are Loaded by Specification Level” section in Design Details: Loading the Inventory Profiles .
For more information about how the planning system balances attributes, see the “Serial/Lot Numbers and Order-to-Order Links are Exempt from the Frozen Zone” in Design Details: Dealing with Orders Before the Planning Starting Date .
Order-to-order procurement means that an item is purchased, assembled, or produced to exclusively cover a specific demand. Typically it relates to A-items and the motivation for choosing this policy can be that the demand is infrequent, the lead-time is insignificant, or the required attributes vary.
Another special case that uses order-to-order links is when an assembly order is linked to a sales order in an assemble-to-order scenario.
Order-to-order links are applied between demand and supply in four ways:
- When the planned item uses the reordering policy Order.
- When using the manufacturing policy Make-to-Order to create multi-level or project-type production orders (producing needed components on the same production order).
- When creating production orders for sales orders with the Sales Order Planning feature.
- When assembling an item to a sales order. (Assembly Policy is set to Assemble-to-Order.
In these instances, the planning system will only suggest to order the required quantity. Once created, the purchase, production, or assembly order will continue to match the corresponding demand. For example, if a sales order is changed in time or quantity, the planning system will suggest that the corresponding supply order is changed accordingly.
When order-to-order links exist, the planning system does not involve linked supply or inventory in the balancing procedure. It is up to the user to evaluate if the linked supply should be used to cover other or new demand and, in that case, delete the supply order or reserve the linked supply manually.
Reservations and order tracking links will break if a situation becomes impossible, such as moving the demand to a date earlier than the supply. However, the order-to-order link adapts to any changes in the respective demand or supply and thereby the link is never broken.
The planning system does not include any reserved quantities in the calculation. For example, if a sales order has been totally or partially reserved against the quantity in inventory, the reserved quantity in inventory cannot be used to cover other demand. The planning system does not include this demand-supply set in its calculation.
However, the planning system will still include reserved quantities in the projected inventory profile because all quantities must be considered when determining both when the reorder point has been passed and how many to reorder to reach and not exceed the maximum inventory level. Consequently, unnecessary reservations will lead to increased risks that inventory levels run low because the planning logic does not detect reserved quantities.
The following illustration shows how reservations can hinder the most feasible plan.
The first column in the planning worksheet is for the warning fields. Any planning line created for an unusual situation will display a warning icon in this field, which the user can click for additional information.
Supply on planning lines with warnings will normally not be modified according to planning parameters. Instead, the planning system only suggests a supply to cover the exact demand quantity. However, the system can be set up to respect certain planning parameters for planning lines with certain warnings. For more information, see the description of these options for the Calculate Plan - Plan. Wksh. batch job and the Calculate Plan - Req. Wksh. batch job respectively.
The warning information is shown on the Untracked Planning Elements page, which is also used to show order tracking links to non-order network entities. The following warning types exist:
The emergency warning is displayed in two situations:
- When the inventory is negative on the planning starting date.
- When back-dated supply or demand events exist.
If an item’s inventory is negative on the planning starting date, the planning system suggests an emergency supply for the negative quantity to arrive on the planning starting date. The warning text states the starting date and the quantity of the emergency order. For more information, see Design Details: Handling Projected Negative Inventory .
Any document lines with due dates before the planning starting date are consolidated into one emergency supply order for the item to arrive on the planning starting date.
The exception warning is displayed if the projected available inventory drops below the safety stock quantity. The planning system will suggest a supply order to meet the demand on its due date. The warning text states the item’s safety stock quantity and the date on which it is violated.
Violating the safety stock level is considered an exception because it should not occur if the reorder point has been set correctly. For more information, see Design Details: The Role of the Reorder Point .
In general, exceptional order proposals ensure that the projected available inventory is never lower than the safety stock level. This means that the proposed quantity is just enough to cover the safety stock, without considering planning parameters. However, in some scenarios, order modifiers will be considered.
The planning system may have consumed the safety stock intentionally and will then replenish it straight away. For more information, see Safety Stock May Be Consumed .
The attention warning is displayed in three situations:
- The planning starting date is earlier than the work date.
- The planning line suggests changing a released purchase or production order.
- The projected inventory exceeds the overflow level on the due date. For more information, see Design Details: Staying under the Overflow Level .
In planning lines with warnings, the Accept Action Message field is not selected, because the planner is expected to further investigate these lines before carrying out the plan.
In the Calculate Plan request page, the user can select the Stop and Show First Error field to have the planning run stop when it encounters the first error. At the same time, a message is displayed with information about the error. If an error exists, only the successful planning lines that were made before the error was encountered will be presented in the planning worksheet.
If the field is not selected, the Calculate Plan batch job will continue until it has completed. Errors will not interrupt the batch job. If one or more errors exist, the program will display a message after completion saying how many items are affected by errors. The Planning Error Log page then opens to provide more details about the error and to provide links to the affected documents or setup cards.
It is not always practical to plan an existing supply order, such as when production has started or extra people are hired on a specific day to do the job. To indicate whether an existing order can be changed by the planning system, all supply order lines have a Planning Flexibility field with two options: Unlimited or None. If the field is set to None, the planning system will not try to change the supply order line.
The field can be manually set by the user, however, in some cases it will be set automatically by the system. The fact that planning flexibility can be manually set by the user is important, because it makes it easy to adapt the usage of the feature to different workflows and business cases.
For more information about how this field is used, see Design Details: Transfers in Planning .
The basic supply planning tool represented by the Order Planning page is designed for manual decision making. It does not consider any planning parameters and is therefore not discussed further in this document. For more information on the Order Planning feature, refer to Help in Business Central .
It is not advisable to use Order Planning if the company already uses the planning or requisition worksheets. Supply orders created through the Order Planning page may be changed or deleted during the automated planning runs. This is because the automated planning run uses planning parameters and these may not be considered by the user who made the manual plan in the Order Planning page.
Business Central is a standard ERP system, not a dispatching or shop floor control system. It plans for a feasible utilization of resources by providing a rough-cut schedule, but it does not automatically create and maintain detailed schedules based on priorities or optimization rules.
The intended use of the Capacity-Constrained Resource feature is 1): to avoid overload of specific resources and 2): to ensure that no capacity is left unallocated if it could increase the turn-around time of a production order. The feature includes no facilities or options to prioritize or optimize operations as one would expect to find in a dispatching system. However, it can provide rough-cut capacity information useful to identify bottlenecks and to avoid overloading resources.
When planning with capacity-constrained resources, the system ensures that no resource is loaded above its defined capacity (critical load). This is done by assigning each operation to the nearest available time slot. If the time slot is not big enough to complete the entire operation, then the operation will be split into two or more parts placed in the nearest available time slots.
In case of operation splitting, the setup time is only assigned once because it is assumed that some manual adjustment is done to optimize the schedule.
Dampener time can be added to resources to minimize operation splitting. This enables the system to schedule load on the last possible day by exceeding the critical load percent slightly if this can reduce the number of operations that are split.
This completes the outline of central concepts relating to supply planning in Business Central . The following sections investigate these concepts deeper and place them in the context of the core planning procedures, balancing demand and supply as well as the use of reordering policies.
Design Details: Transfers in Planning Design Details: Planning Parameters Design Details: Planning Assignment Table Design Details: Handling Reordering Policies Design Details: Balancing Demand and Supply
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Plan Project Orders
This planning task starts from a sales order and uses the Sales Order Planning window. Once you have created a project production order, you can plan it further by using the Order Planning window.
To create a project production order
Select the sales order that represents the production project, and then choose the Planning action.
In the Sales Order Planning window, choose the Create Prod. Order action.
In the Create Order from Sales window, in the Order Type field, select Project Order .
Choose the Yes button.
Open the production order just created.
Notice that the Source Type field of the production order contains Sales Header and the order has multiple lines, one for each sales line item that must be produced.
Choose the Planning action.
In the Order Planning window, choose the Refresh action to calculate new demand.
The order header line for the project order is displayed with all unfulfilled demand lines expanded under it. Although the production order contains lines for several produced items, the total demand for all production order lines is listed under one order header line in the Order Planning window, and the original customer name is displayed. You can now proceed to plan for the demand as described in Plan for New Demand Order by Order .
[!NOTE] Demand lines in the project production order that have Prod. Order in their Replenishment System field represent underlying production orders. After you have generated these production orders, you must again calculate a plan in the Order Planning window to identify any unfulfilled component demand for them. In that case, they are displayed as demand lines under a normal production order header line, meaning, the project relation is no longer visible in the window. However, if you are using the Order Tracking feature, then you can look back and forth to all supply orders made under the original sales order.
Planning Setting Up Manufacturing Manufacturing Inventory Purchasing Design Details: Supply Planning Setup Best Practices: Supply Planning Working with Business Central
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How to Use Sales Order Dates in Business Central
A sales order specifies the details about the products or services ordered by the purchaser. Sales orders are vital to keeping track of your inventory. They allow you to keep track of what you have in stock, what’s on back order, and what you may need to purchase from your vendors. Sales orders also help you reduce the risk of material misstatement in your organization’s financial reporting.
Sales orders and purchase orders are inherently interconnected. The key difference between the two is who generates the document and who receives it. While a sales order is generated by the seller, a purchase order is generated by the buyer. In addition, a purchase order is not only integral to expense tracking and budgeting, but also to help keep supply chain management on track. It documents a buyer’s intent to purchase goods or services from your company. Once your company receives and accepts the terms of a purchase order, a sales order can be created based on purchase order details.
With the basics covered, now we’ll walk you through how to use sales order dates in Microsoft Dynamics 365 Business Central.
There are several date fields on sales order screens in Business Central, which can be confusing. However, if used correctly, you can use these dates to improve your sales order processing. You also can more accurately fulfill your customers’ order requirements and track your delivery times.
Sales order dates can be located on the Header only, Line only, or both the Header and Line. If the date exists on both the Header and Line, you should bring your attention to the dates on the Line. The lines determine your planning parameters.
If you try to change the date on the Header, Business Central will ask if you want to update the dates on the lines. Answering “yes” will update the dates on the lines. You can have different dates between the header and lines.
Sales Header Dates
Let’s begin with Sales Header dates.
Document Date – Used to calculate invoice related fields, such as due date (for invoice payment and prepayment). The document date also is used to calculate “Quote Valid Until Date” for sales quotes. When you manually fill in the document date, the due date will be updated automatically.
Posting Date – Used when posting the transaction to the ledgers. It’s used for shipment date, invoice date, return date, or credit date, depending on what you post. The posting date defaults to the date the document was created. The posting date also is used to calculate the exchange rate. When you manually fill in the posting date, the document date will be updated to match.
Order Date – The date you received the sales order. This defaults to the date the document was created. It’s used to calculate price and discount.
Due Date – The date when the invoice needs to be paid (invoice payment due date). The date is calculated from Document Date + Payment Terms. Changing the due date will not update the document date.
Requested Delivery Date – The date the customer requested for the goods to arrive at their location. By default, the requested delivery date is blank. This date exists on both the Header and Line. The requested delivery date on the Header does not affect any fields. When you update the field on the Header, Business Central will ask if you want to update the requested delivery date on the Line. Changing the field on the lines will update the Planned Delivery Date and Shipment Date on the lines.
Promised Delivery Date – The date you have promised the customer to deliver the order. By default, it’s blank. This date exists on both the Header and Line. Entering a promised delivery date on the Header will lock the Requested Delivery Date on the Header. When you update this field on the Header, the system will ask if you want to update the promised delivery date on the Line. Changing the promised delivery date on the Line will lock the Requested Delivery Date and update the Planned Delivery Date on the lines.
Invoice Details FastTab
Pmt. Discount Date – Used to be eligible for payment discount if the customer does early payment. It’s calculated based on the Document Date + Payment Term Discount Date Calculation. If there’s no discount associated with the payment terms, this date will be equal to the document date.
Shipping & Billing FastTab
Shipment Date – Dates when the goods are to be available in inventory to be picked for shipment. This is not the actual shipment date. The actual shipment date should be the Posting Date when you post shipment. The shipment date defaults to the date the document was created. This date exists on both the Header and Line. The shipment date on the Header does not affect any fields. When you update the shipment date on the Header, the system will ask if you want to update the shipment date on the Line. Changing the field on the lines will update the Planned Delivery Date and Planned Shipment Date on the lines.
Prepayment Due Date – The date when the prepayment invoice needs to be paid (invoice prepayment due date). The date is calculated from Document Date + Prepayment Payment Terms. Changing the prepayment due date will not update the document date.
Prepayment Payment Discount Date – Used to be eligible for payment discount if the customer does early prepayment. It’s calculated based on the Document Date + Prepayment Term Discount Date Calculation. If there’s no discount associated with the prepayment terms, this date will be equal to the document date.
Sales Line Dates
Now let’s look at Sales Line dates in Business Central.
When the date exists on both the Header and Line, the date on the Line is the one being used by the system for planning (replenishment).
There are five dates on the Line (excluding the Fixed Asset related dates) – Requested Delivery Date, Planned Delivery Date, Planned Shipment Date, Shipment Date, and Promised Delivery Date. These dates are related to and calculated from each other. Changing one of these dates will cause the system to recalculate the other dates (which sometimes isn’t ideal depending on your warehouse process).
Requested Delivery Date – The date the customer requested for the goods to arrive at their location. Changing the requested delivery date will update the planned delivery date. If the requested delivery date is blank, the system will update the Line shipment date to match the Header shipment date.
Planned Delivery Date – The date when you expect the goods to arrive at the customer’s location. It’s calculated from Planned Shipment Date + Shipping Time.
Planned Shipment Date – The date when you expect the goods to ship from the warehouse. It’s calculated from Shipment Date + Outbound Warehouse Handling Time.
Shipment Date – The date when the goods are to be available in inventory to be picked for shipment. This is not the actual shipment date. Your actual shipment date is on the Header Posting Date when you post shipment.
Promised Delivery Date – The date you’ve promised the customer to deliver the order. By default, this field is blank. When you update the promised delivery date, the system will update the Planned Delivery Date to equal the Promised Delivery Date and will lock the Requested Delivery Date.
Calculations to remember:
- Planned Shipment Date = Shipment Date + Outbound Warehouse Handling Time
- Planned Delivery Date = Planned Shipment Date + Shipping Time
- Changing the Requested Delivery Date or Promised Delivery Date will update the Planned Delivery Date
Now that you know how to use sales order dates in Business Central, how else can we assist? The Business Technology Solutions Team at FORVIS is a Microsoft Dynamics Gold Partner and 2022 recipient of the Microsoft Inner Circle award. We provide analysis, design, implementation, upgrades, training, and support services for Business Central and other Microsoft Dynamics business applications. Use the Contact Us form below to get in touch.
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Business Central: ‘Create Purchase Orders’ from a Sales Order
In Business Central, users can use the Create Purchase Orders action on a sales order to create a means of reaching the demand. This is an alternative to using order promising functionality or MRP. In this post, we will cover how to use this functionality as well as its advantages and disadvantages. We’ll provide source material for other related topics along the way.
How to perform the Create Purchase Order action
On the sales order, click ‘More Options’, ‘Actions’, ‘Functions’, ‘Create Purchase Document’, ‘Create Purchase Orders’.
For one item, notice there’s a Quantity to Purchas value matching the one in the Sales Order Quantity field. This reflects the need to purchase the stock to meet the sales order demand.
Obviously the main benefit of this is you can create a corresponding purchase order to the sales order. It also helps you identify whether you have the item in stock. This is because the system will only populate the Quantity to Purchase with a value above zero if there’s not the stock levels available to meet the demand.
If you have stock available for the item you are selling, Business central will not suggest replenishment. See below:
Does ‘Lead Time Calculation’ affect purchases orders created from sales orders?
With the Create Purchase Orders action, it will populate lines from which you can create purchase orders. It bears resemblance to the Requisition Worksheet. But does it work in the same way regarding planning? To test this, I set up a vendor with a two day lead time.
After performing the Create Purchase Orders action on a sales order, the 2D Lead Time Calculation value set against the vendor carries through to the lines. I can amend this value freely as it acts only as the default.
If I click ‘Ok’ and essentially accept the planning suggestion, the system creates a purchase order. Notice the order applies the lead time I incorporated on the vendor’s setup:
Accommodating multiple vendors
On a sales order, where you’re selling multiple items, it’s likely that the stock comes from multiple sources. In the context of purchase orders, you might require multiple purchase orders, each to different vendors with different lead times. Fortunately the Create Purchase Orders action accommodates this.
In the example below, I have setup the items to have different default Vendor No. values.:
When I click ‘ok’, I am taken to the Purchase Orders page where I can see two records, one for each line.
For reference, if the items have the same Vendor No. value, it will not make separate purchase orders. It will batch them into one order.
The Create Purchase Orders action only relates to the sales order in question. This means it only looks to bring in the stock being sold, nothing more. As it’s only concerned with the sales order in question, it ignores any predefined reordering policies against the items.
We covered the different item replenishment systems in a previous post . In my next example, I’ll use Maximum Qty. which looks to replenish stock back up to a set amount when stock falls below a specific level.
For item ‘X’, I set a Reordering Policy of Maximum Qty. with a Maximum Order Quantity of 10. However in spite of this, when performing the Create Purchase Orders action, the suggested Quantity to Purchase is zero.
When using an item without any available stock, the system still suggest a replenishment matching the sales order quantity. See my setup for this example below:
Here’s the result:
Make sure your item is set up correctly
The Create Purchase Orders action isn’t applicable for every potential setup you have for items. Let’s look at another critical field.
The Replenishment System field
On an item card, you can set the Replenishment System value:
To utilise the Create Purchase Order functionality, you must set this to Purchase. Otherwise, the system will not return any results:
This means for items you typically assemble or manufacture and have set them up accordingly, you won’t be able to use this functionality for one-off occasions. Instead you’ll have to create a purchase order manually.
Does ‘Create Purchase Orders’ factor in incoming stock?
The Create Purchase Orders function on a sales order doesn’t factor in incoming stock. Available and capable-to-promise are concepts which Business Central handles, but not here. I tested this by creating purchase orders for items without stock currently available, to see if the system picked up that it could satisfy the demand once the stock arrives. However, by making an inbound order of Item 1145 with a quantity of five and a subsequent sales order quantity of two, the Create Purchase Orders action suggested replenishing the amount on the sales order, instead of utilising the stock that would be arriving shortly.
Does ‘Create Purchase Orders’ accommodate drop shipments and special orders?
Special orders functionality grants users the ability to link purchase and sales orders together, much like the Create Purchase Order function does. The reason the link is important for special orders is because they are designed to accommodate specific catalogue items the customer has requested. After you receive the goods, you ship them onto the customer.
On a sales order, if you try to carry out the Create Purchase Orders action after setting the sales order as either a drop shipment or special order, you’ll see this screen:
The reason this doesn’t work for drop shipments and special orders is because you are associating the inbound orders with the outbound orders. So it doesn’t make sense to look at what stock you already have for the item(s). Stock from a drop shipment will never reach your warehouse as it goes direct to the customer. This means assessing what stock you have available would be a redundant exercise. For special orders, whilst the stock does reach your warehouse, you are only using the purchased goods to meet the sales demand. So again, it doesn’t matter beforehand whether you have the items in stock or not.
Thanks for reading. The Create Purchase Orders from sales order in Business Central functionality offers an alternative way to manage stock, something which may be of use in particular situations for you. As we’ve discussed, it offers benefits in that it doesn’t require you to leave the sales order, follows vendor lead time setup and accommodates multiple purchase orders. It’s limited by the fact it doesn’t follow planning parameters, doesn’t account for incoming stock and requires you to have the items in question set with a Replenishment System of Purchase. But for all these shortcomings, Business Central offers alternatives such as using MRP instead.
I’ve attached Microsoft’s documentation on the topic , which acts more as a condensed set of instructions.
If there’s any topics you’d like to see covered in future, please let us know! Feel free to send over any comments or queries you have – contact us here . Finally, make sure to follow us on LinkedIn and never miss when we post!
When you create sales orders in Business Central, as a sales person, you would often like to know if the items are available or if it's possible to ship
To plan for new production order demand · Choose the Lightbulb that opens the Tell Me feature. icon, enter Planned Production Orders, and then
Choose the · Select the sales order you want to create a production order for. · Choose the Planning action. · Choose the Create Prod. · Select the
How to complete your order planning and demand overview in Business Central? When you create sales orders in Business Central, as a sales
In general, Order Planning displays all new demand along with availability information and suggestions for supply. It provides the visibility
So, its shipped and invoiced like in business central terms. Creating an item. We are going to go through creating a sales order to a customer with an item. We
The planner of a company, such as a purchaser or a production planner is presumed ... For example, if the user enters or changes a sales order, the dynamic
To create a project production order · Choose the · Select the sales order that represents the production project, and then choose the Planning action. · In the
The lines determine your planning parameters. If you try to change the date on the Header, Business Central will ask if you want to update the
But does it work in the same way regarding planning? To test this, I set up a vendor with a two day lead time.