Sales Order Promising in Business Central

Did you know that Business Central has the ability to quickly calculate sales order shipment and delivery dates when entering a sales order?  Business Central can quickly assess whether a delivery date is realistic or not using two key sales order promising concepts:  Available to Promise & Capable to Promise. 

 

Order Promising Setup:

Order Promising Setup is required to control how the “Capable to Promise” function behaves. 

Order Processing Setup

  • Offset Time:  The period from the current date that Business Central must wait before issuing a new purchase, production, assembly, or transfer order.
  • Order Promising Nos.:  Select a number series for order promising calculations.
  • Order Promising Template:  Select the requisition template that will be utilized to create any proposed replenishments of inventory.
  • Order Promising Worksheet:  Select the requisition worksheet that will be utilized to create any proposed replenishments of inventory.

 

Company Information:

Setup is required on the Shipping Fast Tab on the Company Information page to control the availability time frame used in calculating shipment and delivery dates.

Company Information Page

  • Check-Avail. Period Calc.:  This period indicates the length of the period after the planned shipment date in which Business Central checks availability for the demand.
  • Check-Avail. Time Bucket: This field specifies how frequently Business Central checks supply and demand events to discover if the item on the demand line is available on its planned shipment date.
  • Base Calendar Code:  This calendar specifies the working days of the company.
  • Cal. Convergence Time Frame: This field specifies how dates based on calendar and calendar-related documents are calculated.

 

Location:

Setup is required on the Warehouse Fast Tab on the Location Card page to control the calculating of shipment and delivery dates.

Location Card Page

  • Outbound Whse. Handling Time:  The time that is required to pick, pack, and label the items in an order before shipping.
    • Setup is also on the Inventory Setup page. Location setup has priority over inventory setup.
  • Base Calendar Code:  This calendar specifies the working days of the location if different than the company base calendar on company information.

 

Customer:

Setup is required on the Shipping Fast Tab on the Customer Card page to control the calculating of shipment and delivery dates.

Customer Card Page

  • Shipping Time:  The time between when the items ship from the warehouse and when they arrive at the customer's ship-to address.
    • Setup is also on the Shipping Agent Services. Shipping Agent Services have priority over the Customer Card.
  • Base Calendar Code:  This calendar specifies the working days of the customer.
    • This calendar takes priority over location and company information calendars.

 

Sales Order Promising Dates:

  • Promised Delivery Date: The date the company promised delivery to the customer’s address. You must manually enter this date to affect the date calculation.
  • Planned Delivery Date: The date the company plans to deliver the order to the customer's address. This date calculates automatically, but you can change it.
  • Requested Shipment Date: The date the customer requested, minus the shipping time. This date calculates automatically, but you can change it.
  • Planned Shipment Date: The date the order is shipped from the warehouse. This date calculates automatically, but you can change it.
  • Shipment Date: The date the order items are in inventory and available to be picked. This date calculates automatically, but you can change it.

Priority of Dates on the Sales Order:

  1. Promised Delivery Date
  2. Requested Delivery Date
  3. Shipment Date

 

Order Promising Date Calculations:

The following date calculations are used in order promising:

  1. Shipment Date + Outbound Whse. Handling Time = Planned Shipment Date.
  2. Planned Shipment Date + Shipment Time = Planned Delivery Date

** The calculations above depend on whether the customer requests a specific delivery date.  If the customer requests a specific delivery date, then the planned shipment date and the shipment date are calculated backwards as follows:

  1. Requested Delivery Date – Shipping Time = Planned Shipment Date
  2. Planned Shipment Date – Outbound Whse. Handling Time = Shipment Date

If the order processor enters a date in the Promised Delivery Date field, this date is substituted for the requested delivery date in the previous calculations (the promised delivery date takes precedence), and any additional changes to the requested delivery date are not allowed (you can calculate dates based on either a request or a promise, but not both).

When the item is not in inventory and no supply orders are scheduled, the order processor can use the program’s Capable to Promise function to estimate the earliest delivery date for the item.

 

Order Promising Functions:

Stockout Warning

The stockout warning will display an earliest availability date if there is no inventory on hand and if any outstanding production, purchase, assembly, transfer, or sales return order exists to find the earliest date the item will be available. If there are no outstanding documents, then the earliest availability date will be blank.  At this point ATP or CTP could be utilized to calculate an availability date.

Available to Promise (ATP)

Available to Promise functionality calculates dates based on the inventory availability system.  ATP performs an availability check of the unreserved quantities in inventory or in planned production, purchases, assembly orders, transfers, and sales returns. If items are available (either in inventory or on planned receipts), the program automatically calculates the delivery date of the customer’s order.

Capable to Promise (CTP)

Capable to Promise is used if an item is not in inventory and if no supply orders are scheduled. By using a “what if” approach, CTP calculates the earliest date the item can be available if it is produced, purchased, assembled, or transferred from another location.

 

To learn more about Sales Order Promising in Microsoft Dynamics 365 Business Central, join our webinar December 19, 2019 at 10:00 am CST.  Register Now

Jenny Hollingsworth

Jenny Hollingsworth

Senior Application Consultant/Mentor

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