Dynamics NAV 2015 Part 1: Capable-to-Promise & Available-to-Promise

In this 3 part blog mini-series we will:

  1. Explore basic NAV Setups and Date fields on Sales Order and Order Promising (this blog entry)

  2. Review CTP scenarios (calculate Delivery Date for unavailable items, Availability by BOM Level)

  3. Review ATP scenarios (autofill Shipment Date, Availability Warning and Earliest Available Date, Meet a Customer-requested Delivery Date)

Capable-to-Promise (CTP) in NAV 2015

  1. Is used if an item is not on hand and no supply orders exist to meet the demand of the sales order

  2. NAV calculates the earliest available date for the item, whether it be purchased, manufactured, assembled or transferred from another location

  3. Allows you to provide a correct delivery date for your customer

  4. Creates Planning Lines in the designated Planning Worksheet Batch

  5. Reserves Inventory based on demand

Available-to-Promise (ATP) in NAV 2015

  1. NAV calculates dates based on the inventory on hand

  2. Includes checks on availability of unreserved inventory in Purchase, Transfer and Sales Return Orders as well as planned Production and Assembly Orders

  3. If available inventory (on hand and including planned receipts/output) is found, NAV calculates the delivery date on the Sales Order

The examples in this and the two related blog entries are based on the Cronus company in Microsoft Dynamics NAV 2015. Let’s first review some of the setups and dates as they pertain to Order Promising in this blog entry.

Order Planning Setup

  1. Review Outbound Whse. Handling Time on Location Card

  1. Review Shipping Time on Shipping Agent Service Codes (Go to Shipping Agents à Shipping Agent Services)

  1. Review Company Information

  1. The check availability period reflects an agreement between you and your customers and indicates the maximum time that your customers are willing to wait before their order requests are met.

  2. The check available time bucket specifies how frequently the system checks supply and demand events to discover if the item on the demand line is available on its planned shipment date.

  3. Review Order Promising Setup

Order Planning Dates

On the Sales Order and the Order Planning pages you will find the following Date fields:

Field Definition Requested Delivery Date The date you want the order delivered to your customer’s address. You must manually enter this date to affect the date calculation.Promised Delivery Date The date you promised delivery to your customer’s address. You must manually enter this date to affect the date calculation.Planned Delivery Date The date you plan to deliver the order to your customer’s address. This date calculates automatically but you can change it.Planned Shipment Date The date the order is shipped from your warehouse. This date calculates automatically but you can change it.Shipment Date The date the order items are in inventory and available to be picked. This date calculates automatically but you can change it.Outbound Whse. Handling Time The time that is required to pick, pack, and label the items in an order. This is setup on the Location Card.Shipping Time The time that passes from shipment to arrival at your customer’s address.Original Shipment DateThe date that is in the Shipment Date field on the Sales Line.Earliest Shipment DateThe date that is calculated by the Capable-to-Promise function as the earliest possible shipment date for the item.

Summary of Capable-to-Promise Functionality

If the Microsoft Dynamics NAV determines that an item entered on a Sales Line is unavailable, an order processor can use Order Planning and the CTP functionality to calculate the earliest possible date on which a new supply of the item can be made available. If this date is accepted by the user, NAV copies it to the affected Sales Line and automatically re-calculates the Planned Shipment and Planned Delivery Dates. NAV then finishes the CTP process by creating a line and a reservation entry for the item in the designated Planning Worksheet. If carried out by the user, these actions make sure that the order is fulfilled.

In the next related blog entry we will review CTP scenarios and calculate Delivery Dates for unavailable items. We will also review additional information that helps the Sales Order processor, such as Availability by BOM Level reporting.

#MicrosoftDynamics #nav2015 #microsoftdynamicsnav #microsoftdynamic #DynamicsNAV

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