Does Masterplaning take the backlog of open purchase orders into account when creating a new purchase order ?

Hi all,

I am digging into the masterplaning and I came up with one question where I couldnt find the answer…

  • Lets assume I create a safety stock for item 123
  • My safety stock for this item is 5 pcs.
  • Masterplaning creates a PO for item 123 cause I reached my safety stock of 5
  • I ordered 10 pcs. of item 123
  • My vendor ony delivers 7 pcs, so the PO has a backlog of 3 items that will be delivered later
  • Now I have 12 pcs. in stock (5 safety stock and 7 that have been delivered)
  • I sell 9 pcs. so now I have only 3 items left in my warehouse
  • When masterplaning now creates a new PO does it recognize that I still have an open order of 3 items from my previous PO (so 3 on stock and 3 as a backlog for my previous PO) meaning that I have 6 on stock (so 3 on stock and 3 as a backlog for my previous PO) and Masterplaning dosent create a PO, cause my saftey stock is 5 ?
  • Or will Masterplaning ignore the backlock and orders 2 items so I reach my saftey stock of 5 items again and my vendor will send me 2 ?

I know this is a little constructed, but I just want to understand what would do in such a case ?

Best Regards !

Master planning considers open purchase order, so if you have a backlog of a previous PO that is not going to be delivered and you dont want MPS to consider it, you need to cancel the quantity remaining. Proper maintenance of purchases, sales and production module is required in order to have a good planning, if you leave sales order open (maybe the customer doesnt want them any more), with past delivery date master planning will consider them as demand to be fulfilled and therefore will plan for production or purchases for those “old” sales orders.

Hi Hector,

thanks for the reply :slight_smile: Does Masterplaning consider the open PO automatically or are there paremeters or a setting I need to set up in AX in order for Masterplaning to take the open POs into consideration ?

Automatically, that is why good planning requires good data maintenance. Just a small correction to your scenario, planned purchase order will be triggered when you are bellow your safety stock (minimum inventory) not equal to.

Okay… This answers my Questions ! Thanks :slight_smile:

I would say there are some exceptions to the automatically include, for example the purchase order could be at a manually fulfilled warehouse, you might not be looking at inventory transactions as part of the master plan for some reason, but generally it is included would be my response :slight_smile: