A planning entity is used for forecasting and forecast consumption of sales items with specific item numbers that are orientated on the highest level.
Forecasting of such sales items is done on a joint item number—a so-called planning entity.
The following prerequisites must be met for planning entities:
The following prerequisites must be met for order-initiated sales items:
When an order-initiated sales item is manufactured against a customer order, it is possible to perform material planning for included semi-finished and purchased items based on the exploded demand of the planning entity.
Distribution of included items
Both planning entities and order-initiated sales items have their own product structures.
An option percentage is defined for each item included, as well as for the parent item, in 'Product. Connect Materials/Operations' (PDS002). This indicates the included items’ share of the total number of variants for the current planning entity.
If an item is included in all variants of the sales item, 100% is entered. If the item is estimated to be included in 40% of the variants, 40 is entered.
Forecast consumption is always performed against the planned order and product structure of the planning entity, with the sales items’ order quantity as a basis.
When a customer order is entered for an order-initiated sales item, a manufacturing order is created that is directly based on the structure of the sales item. The forecast consumption is made against the planned order.
The quantity of the planned order is reduced by the order quantity of the sales item. The forecast consumption is not affected by which variant of the sales item is sold.
A forecast is made for a type of headlight (a planning entity). The headlights are sold in pieces (item number 100) and in packages of two (item number 200). If the forecast uses number of headlights (that is, the unit of measure is Pieces), the forecast consumption will also be performed in the unit of measure Pieces.
In order to accurately forecast Pieces when selling item number 200, the number of items included (item number 100) must be entered. This is done when Normalizing Factor=2 is entered in 'Planning Item. Open' (RPS046).