Trade in Microsoft Dynamics NAV-2017 - Locus IT Services

Trade in Microsoft Dynamics NAV

Locus IT ServicesTrade in Microsoft Dynamics NAV

Lesson 5: Purchase Order Promising Definitions and Calculations

Purchase Order Promising Definitions and Calculations

Purchase Order Promising Definitions and Calculations : Purchasing agents must know when the orders they place with vendors will be received into inventory and available for picking.

When you create a purchase order, the program quickly calculates planned and expected receipt dates for the order, by considering vendor lead time and other time variables. Or, if you request a specific receipt date for the order, the program calculates the date on which you must place the order so that the vendor can fulfill your request for Order Promising.

Similar to sales order promising, purchase order promising is based on calculations that involve several date and time fields. In Microsoft Dynamics NAV-Trade.

Field Definitions

The following table provides a brief description of the important fields in purchase order promising.

Field

 

Definition

 

Requested Receipt Date

 

The date the company requests a vendor to deliver the order. You must manually

enter this date to affect the date calculation.

 

Promised Receipt Date

 

The date the vendor promises delivery of the order to the company. You must manually enter this date to affect the date calculation.

 

Planned Receipt Date

 

The date the company plans to receive

the order. This date calculates automatically.

 

Expected Receipt Date

 

The date the company expects the putaway process to finish and when the items are available for picking. This date calculates automatically and affects item availability.

 

Order Date

 

The date the item is ordered. If calculating backward from a planned receipt date, the date the vendor must ship the items to meet the planned receipt date.

 

Inbound Warehouse Handling Time

 

The time that is required to receive and put away the items of an order.

 

Lead Time Calculation

 

The time that is between when the items are ordered from the vendor and when the items are received by the company. Otherwise, this is known as the vendor lead time.

 

Safety Lead Time

 

The buffer period if there are delays in the purchase replenishment lead time. This affects the date when the items are available for sale.

 

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