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Supply chain | Supply Chain Management, Commerce
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Master Planning - Transactions - reduction key

Posted on by 20

In the Microsoft Learn area I read about quite powerful logic in Transactions - reduction key

"Transactions – reduction key

Forecast reduction starts with the first (earliest) demand forecast record in the reduction key period. If the quantity of qualified inventory transactions is more than the quantity of demand forecast lines in the same reduction key period, the balance of inventory transactions quantity will be used to reduce the demand forecast quantity in the previous period (if there's unconsumed forecast).

If no unconsumed forecast remains in the previous reduction key period, the balance of inventory transactions quantity will be used to reduce the forecast quantity in the next month (if there's unconsumed forecast)."

https://learn.microsoft.com/en-us/dynamics365/supply-chain/master-planning/planning-optimization/demand-forecast

I have set up Forecast Plan, Master Plan and Coverage Group as documented.  But Sales Orders are consuming Forecast only within each period defined via the Reduction Key.  i.e.  If Sales Orders for March exceeds Forecast for March, I am not seeing consumption of unconsumed Forecast for February.

Further, on searching, I have found no reference to the above functionality other than through the learn.microsoft site.  It makes me wonder, is this functionality available - perhaps only from a particular build?



  • georgebu Profile Picture
    georgebu 20 on at
    RE: Master Planning - Transactions - reduction key

    As a footnote to the above, note that on the link I provided, there is an Example of Transactions - Reduction key, where the logic documented above is not applying.   i.e. There is a monthly forecast of 100 - but when Sales Order(s) of 240 are received for a particular month, the unconsumed amount does not move to prior or subsequent periods.  :)

    In which case, if the functionality is not there yet, is it planned for a future release please?

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