Hi Hasti,
There is only an option to include inventory transactions (that help consider your Purchase orders , sales orders etc.) on Master Plan parameters, it doesn't have any settings for certain purchase orders statuses. See below if it make sense:
1. You shouldn't confirm planned Purchase orders and manage review/approval on planned orders rather than first firming the PO and then tracking the approvals. If there is another set of approvals planned, let those PO consider (see reasons below).
2. E.g. If you have a demand (100 from sales order), 0 on-hand- Provided include inventory transactions is marked, it will generate planned PO for 100 qty. Once you firm it (can be in approved/confirmed state) and run master planning again, it won't create another PO (if it's generating PO in your environment, then you need to review your Master Planning settings).
You don't want to exclude approved orders, because what if they get approved (later), Master plan already create planned orders previous day, now once that's firmed, you have double the amount of material coming in than your expected demand. Here is an illustration via qty..
SO = 100 qty. Your total requirement in this case should be 100.
Planned PO "PLN01" created = 100 qty, firmed. PO created say PO001 (approved) = 100 qty
MRP ran (neither have criteria to remove approved orders, will be very difficult to do this as well) = result is planned PO created "PLN02".
User approve PO001 = 100 qty coming in.
User firm PLN02, converts to PO002 which may get approved = another 100 qty coming in.
total quantity coming in = 200.
MRP by default help solve these problems by considering different PO statuses. Try to convince users that they don't want to apply purchase order filter criteria's.
