Significance of the Item Sales Reservation Policy in Microsoft Dynamics 365 for Finance and Operations or AX 2012 R3
Sales order processing involves a wide spectrum of considerations and many variations in business practices, and sales orders comprise a key element in the S&OP (Sales & Operations Planning) game plans used by master planning calculations to coordinate supply chain activities in manufacturing firms. A critical consideration involves sales order reservations.
Some guidelines for sales order reservations are provided in this 4-part series. The first article addressed the fundamental issue of reservation timing, and provided a comparison between the use of immediate versus deferred reservations for sales orders. These two approaches reflect a reservation policy of Automatic versus Manual on the sales order line. However, the initial assignment of this policy to a sales order line depends on an item -specific policy - termed the Item Sales Reservation policy.
This second of the four-part series explains the three reservation options for a sales order line - consisting of Automatic, Manual and Explosion - and how they can be inherited from the item or from the sales order header. The explanation builds on content within the first article, so much of the introductory information is not repeated here. The article consists of the following sections.
- Significance of the Item Sales Reservation policy for an Item
- Significance of the Reservation policy for a Sales Order Line
- Significance of the Explosion Reservation policy for a Sales Order Line
- Align the Item Sales Reservation policy with the item's S&OP Game Plans
- Other Key Policies for Sales Order Reservations
1. Significance of the Item Sales Reservation policy for an Item
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