Planning Terms and Conditions (tctrm1135m000)

Use this session to view, enter, and maintain the planning terms and conditions for a terms and conditions line.

You can start this session by double-clicking a line on the Planning tab of the Terms and Conditions Line (tctrm1620m000) session.

Note

You can only define planning characteristics if the following applies:

  • At least one VMI parameter is selected in the Implemented Software Components (tccom0100s000) session.
  • The terms and conditions type is set to Purchase or Sales.

 

Terms and Conditions ID
Position

The number used to identify the position of the terms and conditions line on the terms and conditions agreement or the terms and conditions template.

Effective Date
Expiry Date
Responsible for Supply Planning

If this check box is selected, the supplier (manufacturer) is responsible for initiating the component supply to a customer's (subcontractor's) warehouse.

If this check box is cleared, the customer (subcontractor) is responsible for initiating the component supply from a supplier's (manufacturer's) warehouse.

For an item-warehouse only one terms and conditions agreement can exist with the Responsible for Supply Planning check box selected. Therefore, only one supplier can be responsible to supply a specific plan item to the same warehouse.

Note

You can only select this check box if you are the supplier (manufacturer) and the terms and conditions type is set to Sales.

Supply Planning by Supplier

If this check box is selected, the supplier (manufacturer) is responsible for initiating the component supply to a customer's (subcontractor's) warehouse.

If this check box is cleared, the customer (subcontractor) is responsible for initiating the component supply from a supplier's (manufacturer's) warehouse.

For an item-warehouse only one terms and conditions agreement can exist with the Supply Planning by Supplier check box selected. Therefore, only one supplier can be responsible to supply a specific plan item to the same warehouse.

Note

You can only select this check box if you are the customer (subcontractor) and the terms and conditions type is set to Purchase.

Delivery Moments

The pattern that specifies the fixed delivery moments.

Note

You can only change this field if the Responsible for Supply Planning or the Supply Planning by Supplier check box is selected.

Related topics

Forecast received from Customer

If this check box is selected, the supplier will receive a demand forecast from the customer. This forecast is an aggregation of the planned and actual demand.

Note

You can only select this check box if you are the supplier and the Responsible for Supply Planning check box is selected.

Related topics

Send Forecast to Supplier

If this check box is selected, the customer will send a demand forecast to the supplier. This forecast is an aggregation of the planned and actual demand.

Note

You can only select this check box if you are the customer and the Supply Planning by Supplier check box is selected.

Take Reference from Message

If in the Demand Pegging Terms and Conditions (tctrm1165m000) session, the Demand Pegging Type field is set to Customer Reference Based or Internal Reference Based, use this field to define how to obtain the reference.

If this check box is selected, the reference is retrieved from the forecast received from the customer. In addition, the reference is sent with the confirmed supply.

If this check box is selected, the reference is manually entered by the user.

Note

You can only select this check box if the Forecast received from Customer check box is selected.

Send Reference to Supplier

If in the Demand Pegging Terms and Conditions (tctrm1165m000) session, the Demand Pegging Type field is set to Internal Reference Based and this check box is selected, the reference from the demand forecast is sent with the message to the supplier. In addition, this reference is also used if the supplier confirms the supply to the customer.

Note

You can only select this check box if the Send Forecast to Supplier check box is selected.

Aggregation Level

Use this field to define the time period during which forecast messages are aggregated before they are communicated.

Note

If this field is set to Detail, no aggregation takes place. Each forecast transaction is communicated.

You can only set aggregation levels if:

  • The Send Forecast to Supplier check box is selected.
  • The terms and conditions type is Purchase.
  • Purchase terms and conditions are implemented.
  • The VMI (customer side) check box is selected in the Implemented Software Components (tccom0500m000) session.

If any of these conditions are not met, the value in this field is Not Applicable.

Forecast Horizon

Defines for how many calendar days into the future forecast is sent to the supplier. For example, the customer can plan for 300 days, but limit the forecast to 100 days.

Note

You can only change this field if the Send Forecast to Supplier check box is selected.

Days

The date on which the forecast horizon ends.

Frozen Zone +

The number of days into the future, calculated from the forecast calculation date, for which the customer can no longer increase the demand forecast.

Note

You can only change this field if the Forecast received from Customer or the Send Forecast to Supplier check box is selected.

Related topics

Days

The date on which the Frozen Zone + ends.

Frozen Zone -

The number of days, calculated from the forecast calculation date, for which the customer can no longer decrease the demand forecast.

Note

You can only change this field if the Forecast received from Customer or the Send Forecast to Supplier check box is selected.

Related topics

Days

The date on which the Frozen Zone - ends.

Use Min-Max Inventory Levels

If the supplier is responsible for component supply in a customer's warehouse, this field indicates whether warehouse inventory levels are taken into account in the supplying process.

This field can have the following values:

  • Minimum Levels
    The supplier guarantees that a minimum inventory level is available in the customer's warehouse. If inventory drops below the minimum level, supply is sent.
  • Maximum Levels
    The supplier does not supply more than a maximum inventory level. This is to avoid the use of excessive or unnecessary inventory space
  • Minimum and Maximum Levels
    The supplier's component supply is restricted to both minimum and maximum inventory levels.
  • No
    No inventory level restrictions are applicable.
Note

You can only change this field if the Responsible for Supply Planning or the Supply Planning by Supplier check box is selected.

Time-phased Inventory Levels

If this check box is selected, time-phased inventory levels are present in the Planning Inventory Levels (tctrm1136m000) session.

Min-Max Specification

Use this field to define the unit in which the minimum and maximum inventory levels are expressed.

  • By Quantity
    The minimum and maximum inventory levels are expressed as a fixed or time-phased quantity.

    Therefore, you can define the following:

    • A fixed minimum inventory level in the Minimum Inventory Level field.
    • A fixed maximum inventory level in the Maximum Inventory Level field.
    • Time phased inventory levels in the Planning Inventory Levels (tctrm1136m000) session.
  • Number of Days
    The minimum and maximum quantities are calculated by time period and vary with the forecast. The quantities are calculated each time the forecast is communicated or the terms and conditions are changed.

    The levels are calculated as follows:

    • Minimum inventory level
      Forecast per day * Min-Max Number of Days * Minimum Factor.
    • Maximum inventory level
      Forecast per day * Min-Max Number of Days * Maximum Factor.
    For more information, refer to Planning based on number of days supply.
Note
  • With the forecast, you can use minimum inventory levels specified by quantity to act as a safety stock. Therefore, if minimum inventory levels are defined, LN ignores safety stock set up for the customer's warehouse.
  • You can only select Number of Days if the Forecast received from Customer or the Send Forecast to Supplier check box is selected.
Min-Max Number of Days

If minimum and maximum inventory levels are calculated by time period and vary with the forecast, this field represents the item supply time. This is used with the demand forecast and the Minimum Factor and Maximum Factor fields to calculate the minimum and maximum inventory level quantities.

The number of days is expressed in calendar days, not in working days.

Note

You can only change this field if the Min-Max Specification field is set to Number of Days.

Minimum Factor

The minimum factor with the Min-Max Number of Days and the demand forecast, determines the minimum inventory level that must be present in the customer's warehouse.

Note

You can only change this field if the Min-Max Specification field is set to Number of Days.

Maximum Factor

The maximum factor with the Min-Max Number of Days and the demand forecast, determines the maximum inventory level that can be present in the customer's warehouse.

Note

You can only change this field if the Min-Max Specification field is set to Number of Days.

Inventory Unit

If the terms and conditions agreement is set up for a group of items, for which the item inventory units can differ, use this field to define a common inventory unit.

Note

You can only change this field if the Min-Max Specification field is set to By Quantity.

Minimum Inventory Level

Customs Authorizations are issued to allow duty free import of products, used to produce the export product (after making normal allowance for wastage). In addition, fuel, oil, energy catalysts, and so on, which are consumed to obtain the export product, are also allowed to be imported, free of import duties.

Note

You can only define a fixed inventory level if the Min-Max Specification field is set to By Quantity.

Maximum Inventory Level

The authorized value, beyond which import duties must be paid and cannot be claimed.

Note

You can only define a fixed inventory level if the Min-Max Specification field is set to By Quantity.

Use Confirmed Forecast

If this check box is selected, the customer specifies which part of the forecast is confirmed.

Note
  • You can only select this check box if the Forecast received from Customer or the Send Forecast to Supplier check box is selected.
  • You cannot select this check box if the Min-Max Specification field is set to Number of Days.
Specify Confirmed Forecast by

If the Use Confirmed Forecast check box is selected, use this field to define how the customer specifies the confirmed part of the forecast.

This field can have the following values:

  • Message
    Confirmed forecast is specified in the message as an indicator or a quantity.
  • Terms and Conditions
    The terms and conditions agreement specifies which periods contain confirmed forecast: all periods, or only the first periods.
Base Confirmed Forecast on

Use this field to define the (internal) method based on which a customer determines the confirmed part of the forecast sent in the message.

This field can have the following values:

  • All Forecast
    All demand forecast must be considered as confirmed forecast.
  • Confirmed End Item Demand
    A distinction is made between unconfirmed forecast and actual/confirmed forecast in the various levels of the BOM. During the MRP explosion, the difference between unconfirmed and confirmed quantities is taken into account. Therefore, at component level, the confirmed and unconfirmed forecast is known.
  • First Periods
    Only the forecast quantities in the first number of periods must be considered as confirmed forecast.
  • None
    None of the demand forecast is considered as confirmed forecast.

Example - Confirmed End Item Demand

The customer sells item A. Component B is linked to item A. Each item A needs 2 parts of B. The customer sends a forecast demand of B to the supplier.

Item A has demand from sales orders and an additional forecast demand:

  • Sales: 100 pcs.
  • Forecast: 200 pcs (non-consumed forecast).
  • Planned Production: 300 pcs (sales and forecast).

    The planned production order needs component B:

    • Planned forecast: 300 *BOM quantity 2 = 600 pcs.

If the Base Confirmed Forecast on field is set to Confirmed End Item Demand, out of the total forecast of 600, the forecast of B needed for confirmed forecast of A (sales orders), is confirmed. The demand of B needed for unconfirmed forecast of A (non-consumed forecast), is unconfirmed.

Therefore, the demand of B is split as follows:

  • Confirmed forecast: 200 pcs.
  • Unconfirmed forecast: 400 pcs.
Interpret Confirmed Forecast

If the Specify Confirmed Forecast by field is set to Terms and Conditions, use this field to define how the customer determines the confirmed part of the demand forecast.

  • All Forecast
    All forecast is considered as confirmed forecast.
  • First Periods
    Only the forecast quantities in the first number of periods must be considered as confirmed forecast. You can specify the first periods in the Number of Periods field.
Number of Periods

The number of periods into which the forecast quantities are considered as confirmed forecast.

Note

You can only change this field if the Base Confirmed Forecast on or the Interpret Confirmed Forecast field is set to First Periods.

Forecast Period Length

The length of the periods for which demand forecasts are made.

Note

You can only define period lengths if:

  • The Interpret Confirmed Forecast field is set to First Periods.
  • The terms and conditions type is Sales.
  • Sales terms and conditions are implemented.
  • The VMI (supplier side) check box is selected in the Implemented Software Components (tccom0500m000) session.

If any of these conditions are not met, the value in this field is Not Applicable.

Confirm Supply

If this check box is selected, the supplier sends a confirmation of the forecast to the customer. The confirmation holds the delivery quantities and delivery dates to which the supplier committed himself. Based on this confirmation, the customer checks whether the confirmed supply is enough to satisfy the demand.

Note
  • You can only select this check box if you are the supplier and the Forecast received from Customer check box is selected.
  • You cannot select this check box if the Min-Max Specification field is set to Number of Days
Use Confirmed Supply

If this check box is selected, the supplier sends a confirmation of the forecast to the customer. The confirmation holds the delivery quantities and delivery dates to which the supplier committed himself. Based on this confirmation, the customer checks whether the confirmed supply is enough to satisfy the demand.

Note
  • You can only select this check box if you are the customer and the Send Forecast to Supplier check box is selected.
  • You cannot select this check box if the Min-Max Specification field is set to Number of Days
Confirmed Supply Based On

Use this field to define the type of demand on which a supplier's confirmed supply is based.

The confirmed supply is based on the following:

  • Total Forecast
  • Confirmed Forecast
    The part of the forecast that is firm.

    This can be the following:

    • The forecast part needed for customer orders.
    • The forecast within a specific time frame.
Note

You can only change this field if you are the supplier and the Confirm Supply check box is selected.

Confirm Supply Horizon

The period, expressed as a number of days, during which a supplier can decrease confirmed quantities.

Note

You can only change this field if the Confirm Supply or the Use Confirmed Supply check box is selected.

Days

The date on which the Confirm Supply Horizon ends.

Replenishment Based On

Use this field to define how a supplier must supply components to the customer's warehouse. You can choose between reactive replenishment (inventory levels, or manual orders) or planning (demand forecast) based replenishment.

Note
  • You can only change this field if the Responsible for Supply Planning or the Supply Planning by Supplier check box is selected.
  • If the Confirm Supply or the Use Confirmed Supply check box is selected you can only select Manual, Inventory Level, or Confirmed Supply in this field.
  • You can only select Inventory Level if the Use Min-Max Inventory Levels field is set to Minimum Levels, Maximum Levels, or Minimum and Maximum Levels.
  • If the Min-Max Specification field is set to Number of Days, this field is set to Inventory Level and is disabled.
Planning Based On

Use this field to define the (internal) method based on which a supplier generates planned orders to build up inventory at the supplier's site.

Note
  • You can only change this field if the Responsible for Supply Planning check box is selected.
  • The option you select at least includes the option from the Replenishment Based On field. For example, if Replenishment Based On is set to Confirmed Forecast, planning can be based on Confirmed Forecast or Total Forecast.
  • If the Confirm Supply check box is selected, you can only select Confirmed Supply in this field.
  • If the Replenishment Based On field is set to Manual, you cannot select Inventory Level in this field.
  • If the Min-Max Specification field is set to Number of Days, this field is set to Inventory Level and is disabled.

 

Inventory Levels

Starts the Planning Inventory Levels (tctrm1136m000) session, in which you can define time phased inventory levels if minimum and maximum inventory levels are expressed as a time-phased quantity.

This option is only available if the Min-Max Specification field is set to By Quantity.