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Sales Order Planning/Reservations

  • 1.  Sales Order Planning/Reservations

    Posted 20 days ago
    We currently use the sales order planning function to create production orders as this was suggested to us as the best way to link the sales and production order that we need as we like the sales order number to print on our labels.

    Problem is once we started using this, we got frequent reserved item not on inventory errors when posting shipments. We started by just removing the reservations when this came up, not noticing that if the order was still in production this broke the link.

    We do some very large production and shipping runs that span multiple months so it is something that comes up quite frequently.  We have no real use for the reservations, we just need that link between the production and sales order.

    Any ideas?

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    Chastity Branham
    Georg Utz, Inc
    Edinburgh IN
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    Academy - Online Interactive Learning from Experts


  • 2.  RE: Sales Order Planning/Reservations

    Posted 20 days ago
    We are using NAV 2016.

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    Chastity Branham
    Georg Utz, Inc
    Edinburgh IN
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    Academy - Online Interactive Learning from Experts


  • 3.  RE: Sales Order Planning/Reservations

    NAVUG ALL STAR
    Posted 14 days ago
    You might want to look into MRP. There is one native to NAV, but then you most likely don't need to take up so much "fake" sales orders holding inventory just to have a forecast. There are external ones, but Im going to assume that since you're currently manufacturing using Sales Orders to forecast demand you probably aren't highly complex. Could be wrong. :) Not sure what's out there on setting up MRP, and the most complex side I've found is how data in items is stored and then of course the overall demand planning concept. I think conceptually demand planning is harder than system pushing...like why are you pushing what you're pushing.

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    Andrea Riviezzo
    IT Manager - NAV
    Charlotte's Web, Inc.
    Boulder CO
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    Academy - Online Interactive Learning from Experts


  • 4.  RE: Sales Order Planning/Reservations

    TOP CONTRIBUTOR
    Posted 14 days ago
    If you are talking about the "Create Prod. Order" button under the "Planning" button in the action ribbon, that is generally not suggested as the "best way" to handle the replenishment of Items.  It is rather manual, forces a reservation, and is prone to mistakes if someone forgets to run the process.

    I would make the suggestion Andrea has made with using the MRP (Planning Worksheet) to "Calc. Regenerative Plan".  You will need to ensure your Items have Planning Parameters set on the Item Card.  If you use a Reordering Policy of Lot-for-Lot it will group the Demand during the Calculation.  The Supply recommendation would be a total of all of the Demand within your Lot Accumulation Period.  You can control your Prod. Order Qty. by using the Max. Order Quantity.  This helps you get multiple Prod. Orders at your EOQ, so you don't have giant runs.

    This also avoids the Reservation Issue you were experiencing, unless you turn on Reserve Always, which I would NOT recommend.

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    Ben Baxter
    Consultant
    Accent Software, Inc.
    carmel IN
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    Academy - Online Interactive Learning from Experts


  • 5.  RE: Sales Order Planning/Reservations

    Posted 13 days ago
    Chastity, you stated that you wanted to tie the Sales Orders to Production Orders because "we like the sales order number to print on our labels".  Are you generating the labels during output and specifying a specific Sales Order No.?
    If so, then it sounds like you are Making-to-Order and if you are making to order, then if you are removing reservations how are you ensuring that the product you specifically made for an order is what is being shipped?


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    Ben Tiffin-Sze
    Liberty Grove Software
    btiffin-sze@libertygrove.com
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    Academy - Online Interactive Learning from Experts


  • 6.  RE: Sales Order Planning/Reservations

    Posted 13 days ago
    We are generating labels on the floor with the DMS addon and then entering production through output journals later.  Admittedly we are very basic users of NAV here so I'm sure there are tons of extra things we could be doing.  We don't really understand the reservations at all.  We get errors sometimes and then don't sometimes for the same order.

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    Chastity Branham
    Georg Utz, Inc
    Edinburgh IN
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    Academy - Online Interactive Learning from Experts


  • 7.  RE: Sales Order Planning/Reservations

    Posted 13 days ago
    I think unfortunately this is about 7 steps ahead of what we are currently doing in NAV.  We don't even have a reordering policy in any of our parts.

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    Chastity Branham
    Georg Utz, Inc
    Edinburgh IN
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    Academy - Online Interactive Learning from Experts


  • 8.  RE: Sales Order Planning/Reservations

    SILVER CONTRIBUTOR
    Posted 13 days ago
    Edited by John Gaither 13 days ago
    From what I've read, you're just trying to get the sales order number into the production order.  I'm assuming that the production order would only be for a single sales order?  Or multiple production orders for the same sales order?   Since you said large production runs, I'm assuming the same production order with a large qty.  Could you just add field for sale order number on the production order. Then add a session to populate that?  Point your labels to this new field?

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    John Gaither
    American Art Clay Co
    Indianapolis IN
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    Academy - Online Interactive Learning from Experts


  • 9.  RE: Sales Order Planning/Reservations

    Posted 13 days ago
    We generally have one production order per sales order.  We do have to close out the production orders at month end and create new ones though if the order run goes over a month.  Ideally we would figure out what causes the reservation error sometimes and sometimes not, but I would think adding a field to the production order number could work.

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    Chastity Branham
    Georg Utz, Inc
    Edinburgh IN
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    Academy - Online Interactive Learning from Experts


  • 10.  RE: Sales Order Planning/Reservations

    Posted 13 days ago
    NAV creates reservations as the name implies, to reserve inventory for specific purposes.  The reservations help specify where/how inventory is being used, like how inventory from a Production Order is intended to fulfill a Sales Order.  The reservations help to prevent inventory from being used incorrectly.

    Regarding your reservation errors:  I would suggest taking a look at your process.  You mentioned that you "enter your production through output journals later".  If you typically ship the same day you produce and you are scanning inventory as you ship (to generate shipping documents) but you aren't posting output until the end of day, then this is likely the cause of your errors.  When the system creates a Prod. Order for your Sales Order and ties them with Reservation Entries, it points the 2 orders to each others.  Normally, you would post output which would create Item Ledger Entries and the system would change the Reservation Entries to point the Sales Line to the Item Ledger Entries created from the output.  When you ship, a negative item ledger entry is created and in this case it would apply the negative (shipment) item ledger entry against those specific positive (output) item ledger entries.  However, if you haven't posted output yet, there are not ILEs to apply against.  If you break the reservations by deleting them then you are telling the system to just grab whatever inventory is available that isn't reserved, which solves your problem temporarily for this sales order but could create issues with other orders.

    If this is the cause of your reservation errors you could look to see if you could change your process to output as you label (many handheld solutions have this).  If you cannot change your process then you will probably want to look at doing things differently or customizing NAV.

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    Ben Tiffin-Sze
    Liberty Grove Software
    btiffin-sze@libertygrove.com
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    Academy - Online Interactive Learning from Experts


  • 11.  RE: Sales Order Planning/Reservations

    Posted 13 days ago
    We don't do any scanning of inventory for shipping documents currently.  Would the timing of not entering output until the following day still matter since we aren't doing that?

    Also, I just found out another piece of the puzzle I didn't know.  When we have large orders, they are doing multiple production orders per line of sales order
    to make it easier to count pallets.  Could that be causing the reservation errors since we aren't scanning inventory for shipping it has no clue how to pull it when there are 4 production orders released?

    Thank you for your help!

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    Chastity Branham
    Georg Utz, Inc
    Edinburgh IN
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    Academy - Online Interactive Learning from Experts


  • 12.  RE: Sales Order Planning/Reservations

    Posted 13 days ago

    Timing is important if you are always behind in posting output versus shipping.  If you are attempting to ship 100 units but have only posted output for 10 then there isn't enough of actual inventory (reserved for the sales order) to ship against.  It doesn't matter if this is on one or more production orders.  If you have 2 production orders and posted 100 output for Prod. Order #2 and then tried to ship 100 for your Sales Line, I would imaging NAV wouldn't care and just ship that 100 that's available.  I'm not 100% sure on this though since I've never worked with this scenario before.

    When you get an error if you go to the Sales Line in question and go to the Line menu, Related Information and select Reservation Entries, the page that opens should show you where your reservations are being Reserved From.  Look for ones that are reserved against Item Ledger Entries and make sure there is enough quantity of those to match what you are shipping.



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    Ben Tiffin-Sze
    Liberty Grove Software
    btiffin-sze@libertygrove.com
    ------------------------------

    Academy - Online Interactive Learning from Experts


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