Using Approved Planned Orders in Microsoft Dynamics AX 2012

Approved planned orders in Microsoft Dynamics AX 2012 can be a key tool for production in many S&OP scenarios.  These approved planned orders will be treated as if they have been scheduled for the specified quantity and due date, and they will not be automatically deleted by master scheduling logic or the Delete Plan task.  In addition, master scheduling logic recognizes planned changes to bill of material (BOM) components within the BOM version for an approved planned order, whereas actual orders have an order-dependent BOM and route.  The approved planned orders for production can serve different purposes, such as level-loading production, accounting for material or capacity constraints, overriding the item's active BOM or route versions, or supporting manually-maintained master schedules.  Some scenarios will also use approved planned orders for purchases or transfers, typically to reflect periodic deliveries.

An approved planned order within Dynamics AX is more commonly known as a firm planned order within other ERP systems and by the APICS dictionary.  These terminology differences sometimes cause confusion.  Within AX, the term "approved planned order" helps to differentiate it from "firming a planned order" which generates an actual supply order.  The different constructs are reflected in the different number sequences for planned orders and actual supply orders.       

You can approve a planned order for production, purchase or transfer, although it is most commonly employed for production.  A planned order is initially assigned a status of "Unprocessed" whether it is manually created or generated by master scheduling logic, and approving a planned order updates the status to "Approved".[1]  An approved planned order must still be firmed to create an actual supply order.  The key ...