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Supply chain | Supply Chain Management, Commerce
Answered

Does production estimation create a Sales order?

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Posted on by 143

Hello, 

Is it possible to configure production estimation so that it creates Sales order line and respectively inventory transaction line with issue status On order?

Many thanks in advance!

BR,

Cyrille

  • Oleksiy  Khoroshylov Profile Picture
    1,747 User Group Leader on at

    Hi Cyrille,

    Just trying to think of the scenario when this will be needed. Can you clarify?

    Production order is a supply that increases inventory of FG item. Sales order is a demand that decreases inventory. You can create production from sales order but not other way around.

  • Cyrille16 Profile Picture
    143 on at

    Hi Oleksiy,

    I have this question because of these 2 statements that I recently found on MS Learn:

    - Estimation generates inventory transactions for raw materials that have a status of On order and for material demand.

    - The receipts for main products, co-products, and by-products are generated when production orders or batch orders are estimated.

    BR,

    Cyrille

  • Verified answer
    Oleksiy  Khoroshylov Profile Picture
    1,747 User Group Leader on at

    Hi Cyrille,

    1. Yes, system will create "on order" issue transactions for raw materials from BOM as soon as picking list is generated. This is a demand for components that can be fulfilled either from existing on-hand inventory or via purchase order created manually or automatically by master planning.

    2. "Ordered" receipt transactions for item from production order or batch order will be generated when that order is estimated. This is a supply of FG item.

    Sales order does not play a factor in this scenario. It can be used to sell FG item, for example, when it is made via finished production order.

  • Cyrille16 Profile Picture
    143 on at

    Hi Oleksiy,

    Appreciate your input. Similar thoughts on my end, just wondered maybe some advanced setup of Production module would configure Estimation to trigger creation of a SO line.. like in a situation when there is a demand for price calculation + SO line creation.. behind the statements found on MS Learn..

    Thank you once again.

    Cyrille

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