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CTP Calculation

Posted on by 2
Hi everyone,

We get a very strange situation related to a CTP calculation of a sales order. We got a sales order with order date 6/03 and a prepayment. Prepayment was paid, so we change the shipment date to 4/04 and calculate the CTP. The results of the CTP show the following: The CTP does not take into account the lead times of the items.
 
 
We solved this problem by filling in the Requested Delivery Date on 10/05 so the CTP calculates a more realistic result. This result should in the ideal situation be calculated without filling in the requested delivery date.
So my question for you is: 
Why is it when you create an order and only run the ctp a month later, with a change in the shipment date on header, that the ctp calculation does not take into account the lead times of the items? I would expect if you change the shipment date to a later date that the ctp calculation would start calculating from then. Is there something we are overlooking when running our ctp? Is there a particular date that is important that causes the ctp to not take into account leaving the shipment date and therefore not take into account the work date? 
 
Thanks very much in advance and I would love to hear your answer!
 
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  • Suggested answer
    Jun Wang Profile Picture
    Jun Wang 4,078 Super User on at
    CTP Calculation
    capable to promise is a tricky topic. It has simple math but there are many different spots to fill in correct lead time to make it work correctly. I'm under the impression your lead time wasn't set up correctly. By lead time, it might be the sum of different lead times in different pages in BC. You mentioned the item need one month due to using a subcontractor. If so, could you show where you set up the lead time for the contracting work? to really understand how it works, I would suggest you to read the MS documentation on CTP, then set up some test data to test it out. Use simple lead time and gradually increase the complexity. 
     
    Jun Wang
  • CTP Calculation
    Hello,
     
    No the items are not in stock, it are production items make to order.  Therefore, I raised the question, it is about production items, created by subcontractors. So the parameters are created that it will take 1 month to receive the items.  The production time to create the item is +- 1 month and I changed the shipment date to 4/04. So I thought when you calculate the CTP, the date should be 4/04 + 1 month. But the calculation of the ctp does not start from that date.
     
    "CTP calculation only processes those items, that are yet to be received from Vendor." why? Because if you accept CTP, there will be a requisition line created. If the production time of the item is 1 month, the ctp calculation should be taken this production time into consideration for calculating the shipment date. 
     
    Therefore my question: which date is the CTP looking to, to calculate the shipment date of production orders that need to be produced? Am I overlooking something or is there something I am doing wrong? Thanks in advance for your reply and I would love to hear your answer!
     
    Kind regards,

  • Suggested answer
    KasparsSemjonovs Profile Picture
    KasparsSemjonovs 3,122 Super User on at
    CTP Calculation
    Do You have these items and needed quantities already in inventory?

    CTP calculation only processes those items, that are yet to be received from Vendor.
    https://learn.microsoft.com/en-us/dynamics365/business-central/sales-how-to-calculate-order-promising-dates#capable-to-promise


    Otherwise the formulas are described in the same link a in next section.
     

    When Business Central calculates the customer’s delivery date, it performs two tasks:

    • Calculates the earliest delivery date when the customer hasn't requested a specific delivery date.
    • Verifies if the delivery date requested by the customer or promised to the customer is realistic.

    If the customer doesn't request a specific delivery date, the shipment date is set to equal the work date, and availability is then based on that date. If the item is in inventory, Business Central calculates forward in time to determine when the order can be delivered. This is accomplished by the following formulas:

    • Shipment Date + Outbound Warehouse Handling Time = Planned Shipment Date
    • Planned Shipment Date + Shipping Time = Planned Delivery Date

    Business Central then verifies if the calculated delivery date is realistic by calculating backward in time to determine when the item must be available to meet the promised date. This is accomplished by the following formulas:

    • Planned Delivery Date - Shipping Time = Planned Shipment Date
    • Planned Shipment Date - Outbound Warehouse Handling = Shipment Date

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