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.

Receiving 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.

Resetting 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.

For more information, refer to Resetting sales schedule authorizations.

Resetting 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) and Sales Contract Line Logistic Data (tdsls3102m000) sessions.

For more information, refer to Resetting high FAB and high RAW sales schedule authorizations.

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