Order conversion date calculations
Inventory is not reserved when a Future Order (FO), Blanket order (BL), or Standing order (ST) is entered in Sales Order Entry. You must run Sales Entry Processing Cancel/Convert Orders Report to calculate a conversion date, the date on which inventory is reserved. The conversion date is based on the requested ship date, lead time, and a user-defined cushion period. The conversion dates are calculated differently for FOs, BLs, and STs.
Future Orders and Blanket Orders
FOs and BLs use a conversion date to determine when inventory is affected. When FOs and BLs are first entered, they do not reserve inventory. On the conversion date, the FO becomes a Stock Order (SO) and reserves inventory. The BL remains a BL, but it also reserves inventory.
The conversion date is calculated using this formula:
requested ship date – longest lead time – extra days of product on order
For example:
Requested ship date = 12/31
Longest lead time = 14 days
Conversion days for changing FO and BL = 14 days
Conversion date = 12/3
Promise date = 1/10
The inventory is reserved on the conversion date (12/3). If there is not enough inventory in stock, the needed quantity is back ordered. The conversion date is used to ensure that there is enough time to back order and receive any quantities before the requested ship date. Pick tickets do not print until the promised date (1/10).
Standing orders
The conversion date for an ST is calculated using the requested ship date plus the standing order days entered when the original order was entered. Then, the Saturday and Sunday Shipments setting in Product Warehouse Descriptions Setup-Other is considered. Finally, the Additional Days For Calculating Requested Ship Date option in SA Administrator Options-Documents-Sales Orders-Entry Settings is factored into the calculation. When the order is converted, the promised date and requested ship date are calculated in the same manner, so the ST is ready for the next conversion process.