Item Coverage and Default Order Settings

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Posted on by Community Member

Hi,

Some of our users were trained to use Item Coverage form while others where trained to use Default Order Settings instead. There appear to be some misunderstanding within those groups of users on how these forms function. I'd like for everyone to be on the same page and come of with a clear procedure on using these forms.

Can someone please answer the following questions:

What are key differences between these forms?
- I'm seeing minimums and coverage groups on the Item Coverage form while I see min/max's, standard order qty, lead time in the Default Order Settings form.
Are there any industry standards on how these forms are used for manufacturing and purchasing?
Both forms appear to have some overlapping parameters. What is a good practice to eliminate overriding parameters between groups when they use these two forms?

Thank you!

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Andrew Xu 3,877 on at

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Hi .D,

Item coverage is designed for the inventory management. Master planning will create planned orders based on the set up of item coverage. The min/max quatity means the min/max stock point at inventory level.

But default order setting maintains the setup at transaction level (Purchase order line, Sales order line, Transfer order line).

I don't think there're any industry standards, the use of them depends on the business requirement.

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Guy Terry 28,924 Moderator on at

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Hello Dilbert,

How's the pointy-haired boss today?

The Item coverage form is used to dictate behaviour in master planning; when the planning module sees demand on a particular site (or Warehouse, depending on your config), how should it behave.

The Default order settings form influences behaviour when creating Orders (Purchase orders, Sales orders, Production orders and Transfer orders) manually, and influences the behaviour of the planned orders created by Master Planning.

There is only one overlap between the two forms; that is the Lead times. How AX handles lead times when they are set in different places is explained here:

technet.microsoft.com/.../aa497131.aspx

The 'Min' you see on the Item Coverage form is your 'Safety stock'. i.e. How much of the item would you like to maintain in inventory in this particular Site (or Warehouse).

The Min/Maxes you see on the Default order settings form are different. When you place an order for this item, what is the minimum quantity you would like on the order.

You might want to have Safety stock of 1,000 units, and your supplier might insist that you order a minimum of 200 in one time. These are different things and set in different places.

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Community Member on at

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Well... he's brain fishing 8)

This is a great explanation! Thanks!

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Community Member on at

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Thanks!

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