Production planning - Gross to Net Calculation

Hi, Wondering if someone can give me an easy explanation to the below formula:- Scheduled receipts – planned receipts – projected available balance = net requirements (planned order releases) I cant understand a few things from the formula:- 1. Planned Receipts. Why must deduct from scheduled receipts. 2. What is projected Available Balance ? 3. If include inventory balance is ticked in item master. How it affects this formula TQ. Plese help.[:I]

Hi Kelvin The answer to question 2 probably answers 1 and 3. Projected Available Balance = Inventory + Scheduled Receipts + Planned Receipts - Gross Requirement.

Hi Steven, Once again…you saved the day[:)][Wow!] thks.

ummm Steven, if Projected Available Balance = Inventory + Scheduled Receipts + Planned Receipts - Gross Requirement. then Scheduled receipts – planned receipts – projected available balance = net requirements (planned order releases) planned receipts will be doubled counted?[:I] ie Inventory + Scheduled Receipts + Planned Receipts - Gross Requirement projected available balance = net requirements (planned order releases)

oops sorry for the typo:-[:o][Oops!] Scheduled receipts – planned receipts – (Inventory + Scheduled Receipts + Planned Receipts - Gross Requirement) = net requirements (planned order releases) double counting of planned receipts?

Hi Kelvin Where did you get your original “net requirements” calculation from? I cannot find it anywhere, but yes with your calculation the planned receipts would be doubled. You can find my referenced calculation in the help searching for net requiements!

Hi Steven, I got it from the 3.70 Manufaturing Training Manual, Chapter 10 (Planning) first page. [:D] Regards, Kelvin

Could not see for looking [:D]

Hi Kelvin The Planned Receipts includes the following: Planned Production Orders Planning Worksheets. When you run the Planning Worksheet it deletes all other entries in the Planning Worksheet and all planned production orders where the items are being replanned for. In summary the Planned Receipts figure will always be zero - so you can add or subtract it as many times as you like, it will not affect teh net requirements calculation. [:D]