Inventory planning BC

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Posted on by DL-07111607-0

We are using Dynamics 365 Business Central. I am trying to figure out the best/simplest way to plan our production for the items we need based on the sequence that orders come in (FIFO). We currently just use the Inventory Availability report and base our physical production schedule based off the negative values in "Projected Available Balance" column. The issue is that I do not know what order the items need to be made in, in order to ship oldest orders first. We do not currently use reservations. For Example, is there something that can tell us we need to make Item A before we make Item B because the order for Item A was entered before the order for Item B? I and our organization are still fairly new to BC. Thanks

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Dynamics 365 Business Central

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Jainam M. Kothari 15,631 Super User 2025 Season 2 on at

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Hello,

To plan production in Dynamics 365 Business Central based on FIFO (oldest sales orders first), you can’t rely solely on the Inventory Availability report, as it doesn’t show order sequence. Instead, consider filtering the Sales Order List by item and sorting by order date to manually prioritize production, or use the Planning Worksheet with demand prioritization settings.

For a more scalable solution, a Power BI dashboard or a small customization can help visualize which items need to be produced first based on oldest demand.

Enabling reservations or using Make-to-Order setups in the future can further streamline this process.

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DL-07111607-0 24 on at

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Thank you Jainam. Is there a way to sort or filter the Sales Order List by order date? I dop not see order date as a column or filter/sort option

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OussamaSabbouh 5,651 on at

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Hello,

Business Central can prioritize production automatically based on order dates (FIFO) using its built-in planning logic.

The Planning Worksheet or Order Planning pages list demand in date order — oldest sales orders (earliest requested dates) come first.

You can also create production orders directly from sales orders to preserve that sequence.

The system balances demand and supply on a first-needed-first-served basis, without requiring reservations.

Regards,

Oussama Sabbouh

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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Based on your requirements, it sounds like you need to start using the full planning functionality in the system, and not just looking at a single report or sales order page. The planning functionality analyzes demand, compares it with current supply, and suggests which items to purchase or produce.

It can achieve all the goals you’re aiming for, but it’s a complex area with extensive functionality that can’t be fully covered in a single post. Your implementation partner should be able to guide you through it.

You can start with the official documentation here: - Supply Planning - Business Central | Microsoft Learn

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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Sumit Singh 10,078 on at

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Hi,
As per my knowledge, using planning engine seems to be the feasible approach however it will take efforts in the beginning, hence you need to connect with your partner so that he can you guide you properly and then you can decide with all possible present and future scenarios. Sharing few official links which can help you:-
Use Order Promising + Planning Worksheet

The Planning Worksheet suggests production orders based on demand and supply, but it does not prioritize by sales order date.

You can:

Filter the Planning Worksheet by Orginal Due Date or Order Date.

Sort the suggested lines manually by Order Date to approximate FIFO.

Here are the official Microsoft links and resources relevant to your question about FIFO-based production planning
Production Planning & FIFO Priority

Plan for New Demand Order by Order
Microsoft Learn – How to plan for new demand
This explains using the Order Planning page and Planning Worksheet to calculate plans based on demand dates. While BC does not have a direct “FIFO by Sales Order Date” feature, the planning logic prioritizes earliest demand dates (requested delivery dates) automatically.

About Planning Functionality
Microsoft Learn – Planning Overview
Covers how BC’s planning engine balances supply and demand and uses dates for prioritization.

Design Details: Central Concepts of the Planning System
Microsoft Learn – Planning System Details
Explains the underlying logic for planning calculations and sequencing.

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Gregory Mavrogeorgis 763 on at

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Hi,

You can open Sales Lines → filter Type=Item, Outstanding Qty ≠ 0 (and location) → show Order Date/Shipment Date/Inventory → sort by Order Date → create Prod. Orders from the oldest lines first (Actions → Planning → Create Prod. Order).

Built-in planning: set items Replenishment System = Production Order and Reordering Policy = Order (strict 1:1 FIFO) or Lot-for-Lot (leave Lot Accumulation Period blank).
Run Planning Worksheet → Calculate Plan, sort by Due Date, use Order Tracking to see which sales orders each suggestion covers, then Carry Out.

Optional: set Priority on Prod. Orders so the shop floor list sorts oldest-first.

That’s it—simple FIFO by order (or ship) date without turning on Reservations.

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Ben Baxter 6,575 Super User 2025 Season 2 on at

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You definitely need to start using the Planning Worksheet to calculate what to make/buy and when to make/buy it.

Since you are brand new to planning, I would recommend you start with the Lot-for-Lot Reordering Policy. This will give you the most flexibility and ensure orders don't get missed.

You'll want to learn as much as you can about the planning parameters found on the Planning Tab of the Item/Stockkeeping Unit card. Valentin linked a great resource to start your learning.

There are many settings used to really dial in the planning, so working with a strong partner will be essential. I would encourage you to reach out to your partner and request a meeting with an MRP resource to help guide you through the process.

Best Regards,

Ben Baxter

Accent Software Inc

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Rishabh Kanaskar 6,148 on at

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Hi,

Business Central does not have a standard feature that sequences production orders by sales order entry date unless you use reservations or planning worksheets.
Use Planning Worksheet, run MRP/MPS. It suggests production orders based on demand and due dates. If you set sales order due dates correctly, this indirectly prioritizes older orders.

If enabled, reservations link demand to supply, making it easier to see which orders need to be fulfilled first.

Thanks

Rishabh

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