Demand pegged supply orders

The following supply orders can be generated:

• Purchase orders in the Generate Purchase Orders (tdsls4241m000) session.
• Production orders in the Generate Production Orders (tdsls4243m000) session.
• Transfer orders in the Transfer Order for Sales Order (tdsls4242s000) session.

Supply orders can be created as follows from the Sales Order Lines (tdsls4101m000) session, or the Sales Order Planned Delivery Lines (tdsls4101m100) session:

• Manually from the stock shortage menu
  When an inventory shortage occurs on the order line, the Inventory Shortage Menu (tdsls4830s000) session starts. Select Generate Purchase Order, Generate Production Order, or Generate Transfer Order to create a supply order in the relevant session.
• Manually from the appropriate menu
  When an inventory shortage occurs on the order line, you can click Generate Purchase Order, Generate Production Order, or Generate Transfer Order from the appropriate menu to create a supply order in the relevant session.
• Automatically at sales order line entry
  When an inventory shortage occurs, a supply order is automatically generated if the relevant session is linked as an automatic activity to the order type in the Sales Order Type (tdsls0694m000) session.

Warehousing parameter settings determine whether:

• Items received by supply orders become identifiable in inventory through handling units generated for the receipt line of the supply order when the receipt is confirmed. These handling units obtain specifications with characteristics identical to those of the supply order.
• Specific handling units or anonymous allocated inventory is issued when generating an outbound advice for the demand order. See Inventory allocation levels. LN issues inventory for which the specification characteristics match those of the outbound order lines of the demand order.

• You can advise unallocated inventory or inventory from a different specification to make up for the missing quantity if insufficient inventory for a particular specification is available to be issued from the warehouse. Whether this is allowed is determined by the Advise Unallocated Inventory and the Demand Peg of Outbound Line is Binding check box in the Warehousing Settings by Site (whwmd2101m000) session. See Allocated or unallocated inventory in the outbound process.

Purchase orders

A purchase order line can be demand pegged if it is generated from the following origins:

• EDI
  The purchase order line and related specification information is communicated through electronic data interchange (EDI) if the Supply Planning by Supplier check box is selected in the Planning Terms and Conditions (tctrm1135m000) session. As a result, the Demand Pegging Type in the Demand Pegging Terms and Conditions (tctrm1165m000) session determines the specification's appearance on the purchase order line.
• Sales
  The purchase order is generated in the Generate Purchase Orders (tdsls4241m000) session. If a specification is linked to the sales order and the Supply Planning by Supplier check box is cleared in the Planning Terms and Conditions (tctrm1135m000) session, the specification of the sales order is copied to the purchase order line.
• EP
  The purchase order is generated from the Transfer Order Planning (cppat1210m000) session. If a specification is linked to the planned order and the Supply Planning by Supplier check box is cleared in the Planning Terms and Conditions (tctrm1135m000) session, the specification of the planned order is copied to the purchase order line.
• INH
  The purchase order is generated from the Generate Orders (TPOP) (whinh2201m000) session. If a specification is linked to the planned inventory transaction and the Supply Planning by Supplier check box is cleared in the Planning Terms and Conditions (tctrm1135m000) session, the specification of the planned inventory transaction is copied to the purchase order line.
• Warehousing Receipt
  The purchase order line is generated automatically for an unexpected warehouse receipt. The specification is copied from the receipt in Warehousing.
• SFC
  The (subcontracting) purchase order line is created from the Generate Subcontracting Purchase Documents (tisfc2250m000) session for a subcontracted operation on a production order. The specification is copied from the Estimated Materials (ticst0101m000) session in Manufacturing to the Purchase Order Material Supply Lines (tdpur4116m000) session in Procurement.
• Subcontracting Purchase Order
  The (subcontracting) purchase order line is created from the Generate Supply Orders for Subcontracting (tdpur4216m000) session for an order controlled/single system. The specification from the Purchase Order Material Supply Lines (tdpur4116m000) session is copied to the purchase order line.
• Manual
  For manually entered purchase orders, you can only create a specification in a specific vendor managed inventory (VMI) scenario and a specific subcontracting scenario.

  Before you can manually enter a purchase order for these scenarios, the following check boxes must be selected:

  • Supply Planning by Supplier in the Planning Terms and Conditions (tctrm1135m000) session.
  • Demand Pegging Required in the Demand Pegging Terms and Conditions (tctrm1165m000) session.

  Both scenarios also require specific settings before you can manually enter purchase orders:

  • VMI scenario
    On the purchase order line, the Payment field must be Pay on Receipt or Pay on Use.
  • In the Planning Terms and Conditions (tctrm1135m000) session, the Send Reference to Supplier check box must be selected.
  • In the Demand Pegging Terms and Conditions (tctrm1165m000) session, the Demand Pegging Type must be Internal Reference Based.
  • Subcontracting scenario
    On the purchase order line, the Payment field must be No Payment.
  • In the Demand Pegging Terms and Conditions (tctrm1165m000) session, the Demand Pegging Type must be Customer Based or Customer Reference Based.

Purchase schedules

A purchase schedule line can be demand pegged if it is generated from:

• INH
  The purchase schedule is generated from the Generate Orders (TPOP) (whinh2201m000) session. If a specification is linked to the planned inventory transaction and the Supply Planning by Supplier check box is cleared in the Planning Terms and Conditions (tctrm1135m000) session, the specification of the planned inventory transaction is copied to the purchase schedule line.
• Subcontracting Purchase Order
  The (subcontracting) purchase schedule line is created from the Generate Supply Orders for Subcontracting (tdpur4216m000) session for an order controlled/single system. The specification from the Purchase Order Material Supply Lines (tdpur4116m000) session is copied to the purchase schedule line.