Planning Entity

Before you start

The following prerequisites must be met for planning entities:

The following prerequisites must be met for order-initiated sales items:

• Option 2 (Inventory accounting is not performed but the item is planned) must have been entered in the Inventory accounting field in 'Item. Open' (MMS001/E).
• Option 1 (Material requirements planning) must have been entered in the Planning method field in 'Item. Connect Warehouse' (MMS002/E).
• Option 3 (Planning entity) must have been entered in the'Master scheduled' field in (MMS002/E).
• Items included must have been entered for the planning entity in 'Planning Entity. Connect Item' (RPS046), which is reached through option 11 in 'Planning Entity. Open' (RPS045).
• Planned orders for the planning entity, which are created manually or through a forecast, must have status 20 for the forecast consumption to work.

• Option 1 (Inventory accounting) must have been entered in the Inventory accounting field in 'Item. Open' (MMS001/E).
• Option 3 (Order-initiated) must have been entered in the Planning method field and option 0 (Not a master scheduled item) in the Master scheduled field in 'Item. Connect Warehouse' (MMS002/E).
• Product structures must exist for both the planning entity and the sales items included in it.
• There must be a product structure for both the planning entity and the included sales items. The product structure for the planning entity must include the correct option percentage for the material lines that are not included in all sales items’ product structures. Option percentages are entered in 'Product. Connect Materials/Operations' (PDS002).

Follow these steps

When an order-initiated sales item is manufactured against a customer order, it is possible to perform material planning for included semi-finished and purchased items based on the exploded demand of the planning entity.

1. Distribution of included items

   Both planning entities and order-initiated sales items have their own product structures.

   An option percentage is defined for each item included, as well as for the parent item, in 'Product. Connect Materials/Operations' (PDS002). This indicates the included items’ share of the total number of variants for the current planning entity.

   If an item is included in all variants of the sales item, 100% is entered. If the item is estimated to be included in 40% of the variants, 40 is entered.

2. Forecast consumption

   Forecast consumption is always performed against the planned order and product structure of the planning entity, with the sales items’ order quantity as a basis.

   When a customer order is entered for an order-initiated sales item, a manufacturing order is created that is directly based on the structure of the sales item. The forecast consumption is made against the planned order.

   The quantity of the planned order is reduced by the order quantity of the sales item. The forecast consumption is not affected by which variant of the sales item is sold.

Description

A forecast is made for a type of headlight (a planning entity). The headlights are sold in pieces (item number 100) and in packages of two (item number 200). If the forecast uses number of headlights (that is, the unit of measure is Pieces), the forecast consumption will also be performed in the unit of measure Pieces.

In order to accurately forecast Pieces when selling item number 200, the number of items included (item number 100) must be entered. This is done when Normalizing Factor=2 is entered in 'Planning Item. Open' (RPS046).