Sales schedule authorizations

Sales schedule items are shipped based on the requirement type. The Firm requirement type, however, can deviate from the earlier received Planned requirement type.

If you use authorizations, your sold-to business partners give you permission to fabricate goods or to buy raw materials for a certain quantity level before communicating the Firm requirement type. By using this process, sold-to business partners must pay for the fabrication and/or raw materials regardless of whether the goods are called-off.

Several types of authorizations are available:

FAB authorization
The valid authorization to start the production for a quantity of items required on a sales schedule.
High FAB authorization
The highest FAB authorization that you received from your business partner for a specific sales schedule, counted from the latest CUM reset date on. Your business partner must pay for this quantity of produced but not yet shipped items.
RAW authorization
The valid authorization to buy raw material that is needed to produce a quantity of items that is required on a sales schedule.
High RAW authorization
The highest RAW authorization that you received from your business partner for a specific sales schedule, counted from the latest CUM reset date on. Your business partner must pay for the raw materials that you bought for this quantity of items.

Note

In Sales, LN does not calculate any FAB or RAW authorization values, because you receive the authorizations from your business partner.
FAB and RAW authorizations are only communicated for material releases.
The High FAB authorization and High RAW authorization are not communicated by your sold-to business partner. LN calculates these values by searching for the highest sent FAB/RAW authorizations.

To receive authorizations

You receive the FAB/RAW authorizations for a sales schedule from your sold-to business partner. So, the FAB/RAW authorizations that you receive in the Sales Schedules (tdsls3111m000) session, reflect the FAB/RAW authorizations that are linked to your business partner's purchase release lines. If the sales schedule is approved, LN files the received FAB/RAW authorizations in the FAB/RAW Authorizations (tdsls3134m000) session.

For more information on how your business partner determines the FAB/RAW authorizations, if your business partner uses LN, refer to Purchase schedule authorizations.

To reset authorizations

It depends on the value of the Synchronize Cums check box in the Schedule Terms and Conditions (tctrm1131m000) how and when the authorizations are reset.

Synchronize Cums is selected

If you want the cumulatives to be synchronized and reset based on the cumulative data received from an external component, your shipped cumulatives are compared and synchronized with the shipped cumulatives received from the external component when processing a sales release into a sales schedule (revision).

After a shipped cumulative record is found, the Customer CUMs Reset Date from the Sales Release Lines (tdsls3508m000) session can fall after the Cumulative Reset Date in the Shipped CUM (tdsls3532m000) session. In this case, the authorizations must be reset.

To reset FAB and RAW authorizations

Before authorizations can be reset, a reset quantity must be calculated.

This quantity is calculated as follows:

Cumulative Shipped Quantity from Shipped CUM (tdsls3532m000) - Cumulative Shipped Quantity from Sales Release Lines (tdsls3508m000)

For an example on resetting FAB/RAW authorizations, To synchronize CUMs based on external component data.

Synchronize Cums is cleared

Over time, the FAB authorizations and RAW authorizations can be incremented to very high values. To reduce these values, you can reset the FAB/RAW authorizations in the Reset Cumulatives (tdsls3230m000) session. Authorizations cannot be reset exactly when the year is changing. As a result, updates can be stored in the FAB/RAW Authorizations (tdsls3134m000) session after the reset date. By calculating a reset quantity, these values are also included in the reset process.

To reset the FAB/RAW authorizations successfully, the following conditions must be fulfilled:

Suppliers and customers must use the same CUM reset date when resetting the FAB/RAW authorizations in the Reset Cumulatives (tdsls3230m000) session and the Reset Cumulatives (tdpur3230m000) session.
Resetting can only take place when the releases sent by the customer, are received and approved by the supplier. If not, suppliers cannot approve releases that are processed after the reset date, because the reset dates are different.
Suppliers must not update incoming releases or manually create new releases, because resetting can then result in wrong quantities.

Note

You cannot reset FAB/RAW authorizations for the sales schedule if a reconciliation record exists with the Dispute status and the Transaction Date is before the CUM reset date. You can view sales schedule reconciliation records in the Sales Schedule Reconciliation (tdsls3131m000) session.
The FAB/RAW information, as stored in the Sales Schedules (tdsls3111m000) session for a specific sales schedule revision, is never updated during the reset process. It is kept as history information.

To reset FAB and RAW authorizations

Step 1. To determine a reset quantity

If you reset FAB/RAW authorizations, LN first determines the reset quantity. LN retrieves the reset quantity from the last FAB/RAW authorizations record prior to the CUM Reset Date that you specified in the Reset Cumulatives (tdsls3230m000) session. Which quantity is the reset quantity depends on the CUM Model used, as specified in the Items - Sales Business Partner (tdisa0510m000) session and/or the Sales Contract Line Logistic Data (tdsls3102m000) session.

If the CUM Model used is:

Order Based, the Prior Required CUM is the reset quantity.
Receipt Based, the Received CUM is the reset quantity.

Step 2. To create a new FAB/RAW authorization record

LN creates a new FAB/RAW authorization record in the FAB/RAW Authorizations (tdsls3134m000) session:

With a Reset Date equal to the CUM Reset Date as specified in the Reset Cumulatives (tdsls3230m000) session.
For which the Prior Required CUM or the Received CUM is reset.
If the CUM Model used is:
- Order Based, LN decreases the Prior Required CUM with the reset quantity.
- Receipt Based, LN decreases the Received CUM with the reset quantity.

To reset high FAB and high RAW authorizations

How the high FAB authorizations and high RAW authorizations are reset, is based on the setting of the Authorizations to be parameter in the Items - Sales Business Partner (tdisa0510m000) session/ Sales Contract Line Logistic Data (tdsls3102m000) session:

Carried Forward
The high FAB authorizations and high RAW authorizations are reduced by the reset quantity.
Reset
The high FAB authorizations and high RAW authorizations are equalized to the FAB authorization and RAW authorization values.

Carried Forward

If already FAB/RAW authorization records exist with release dates that are later than the CUM Reset Date, LN copies these records with the following adjustments:

The FAB Authorization, RAW Authorization, High FAB Authorization, and High RAW Authorization are decreased with the reset quantity.
The old Reset Date is replaced with the new Reset Date.

Reset

If already FAB/RAW authorization records exist with release dates that are later than the CUM Reset Date, LN:

Decreases the FAB Authorization and High FAB Authorization of these records with the FAB reset quantity.
Decreases the RAW Authorization and High RAW Authorization of these records with the RAW reset quantity.
Replaces the old Reset Date with the new Reset Date.

Example

FAB period = 4 weeks.
Cumulative model = Order Based.
Reset date = start week 3.
The schedule lines are generated before the reset takes place.
Schedule line 2 is received in week 3.
Schedule line 3 is received in week 5.

Authorizations to be **Carried Forward**
Week	Line 1	-	Line 2	-	Line 3	-	CUMs after reset
-	Qty.	CUM	Qty.	CUM	Qty.	CUM	-
1	20	20	-	20	-	20	20
2	20	40	-	40	-	40	40
3	20	60	5	45	-	45	5
4	20	80	5	50	-	50	10
5	20	100	5	55	20	70	30
6	20	120	55	110	5	75	35
7	-	-	5	115	5	80	40
8	-	-	5	120	5	85	45
9	-	-	-	-	5	90	50
10	-	-	-	-	5	95	55

TOTALS	CUM Line 1	CUM line 2	CUM line 3	CUMs after reset
Start CUM	0	40	50	10
FAB	80	110	85	45
High FAB	80	110	110	70

The reset date starts in week 3. Because of the Order Based CUM model, resetting is performed based on the prior required CUM. At the end of week 2, the reset quantity is 40. When authorizations must be Carried Forward, the authorization cumulatives are updated by -40 from the reset date on (week 3).

If you take the same example, however, with the authorizations reset rather than carried forward, the high FAB is not updated but equalized to the FAB quantity. The calculation then arrives at:

TOTALS	CUM Line 1	CUM line 2	CUM line 3	CUMs after reset
Start CUM	0	40	50	10
FAB	80	110	85	45
High FAB	80	110	110	45