Schedule Level Reservation

Creating a reservation order

A reservation order is created when a MO is created with the parameter ‘Schedule level reservation’ active in ‘Manufacturing Order Type. Open’ (PMS120), and if a schedule number is connected to the planned MO or added when a manual MO is created. Depending on the setting of the parameter, the material aggregation is either per material or material/operation number.

The aggregation is done in basic u/m and for the not-rounded reserved quantity. This means that the reserved quantity is rounded once per schedule on the reservation order, instead of once per MO. As a result, the reserved quantity on the reservation order can be less than the total of each separate material demand in the schedule.

A material line is aggregated if a material exists on the reservation order with:

same item number
same operation number (depending on the setting in order type)
same issue method (only issue method 1 and 2 can be aggregated)
same warehouse and location
the material is not on picking list
same attribute values. Only planning and allocation attributes are created and considered on the reservation order.

If these criteria are not met, a new material line is created. When the material demand is moved to the reservation order, the material lines on the real orders are marked as completed and the issue method is changed to ‘Redistributed’ (7).

Material issue

When material issue is reported, the reporting is done on the reservation order. This means that the issue is reported for the whole schedule and then redistributed to the respective MO in relation to the reserved quantity.

Example:

Table 1. This table shows three MOs with reserved quantity for item ITEM-A and a reservation order (SLRO)
MO	Reserved quantity
101	50
103	30
104	20
102 (SLRO)	100 (total of MO 101,103, 104)

Table 2. This table shows the redistribution results if 80 ITEM-A are issued
MO	Issued quantity
101	40 (50/100*80)
103	24 (30/100*80)
104	16 (20/100*80)

Table 3. This table shows the created transactions in 'Stock Transaction. Display History' (MWS070) after the redistribution
Whs	Item number	Ent dt	Trans qty	Order no	Line	Trans Type	Accounting number
001	ITEMA	191017	80-	102	2	11	999999999
001	ITEMA	191017	80	102	2	11	999999999
001	ITEMA	191017	40-	101	10	11
001	ITEMA	191017	24-	103	10	11
001	ITEMA	191017	16-	104	10	11

The first transaction is the issue transaction for the reservation order. This transaction updates the on-hand balance but does not trigger any accounting transactions (Accounting number = 99999999). The next four transactions are the redistribution transactions. These transactions do not affect the on-hand balance. The first of these four transaction is an offset transaction and is created for “returning” the issue for the reservation order. This transaction does not generate accounting transactions. The next three transactions are issue transactions for the separate manufacturing orders. These transactions trigger the accounting transaction.

Over-allocation

Over-allocation is allowed in manual allocation 'Allocation. Perform Detailed' (MMS121) for material connected to schedule reservation order (SLRO=1 in MWOHED). Over-allocation is validated against the over allocation tolerance set in ‘Settings – Warehouse Planning Control’ (CRS701).

Limitations

Aggregation is only done for MOs with schedule numbers.
Only issue method 1 (picking list) and 2 (requisition) can be aggregated. Backflush issue methods cannot be aggregated.
Quantity cannot be aggregated if the item is already on a picking list. A new reservation line is created.
Attribute managed items can only be aggregated if all planning and allocation attributes are identical on the manufacturing order and the reservation order. Only planning and allocation attributes are created on the reservation order.
Sub-lot controlled items cannot be aggregated.
Reservation orders cannot be exploded in a supply chain.
Over-allocation is only available for components on reservation orders.