Material Requirements Planning

User Guide
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2 Sage PFW
 Contents

Preface
Related Documentation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Chapter 1: Introducing MRP

Features and System Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
System Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Chapter 2: Setting Up Material Requirements Planning

Setting Up Planning Calendars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Planning Calendar Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Description of Planning Calendar Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
How to Complete the Planning Calendar Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Completing the Application Setup Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Application Setup Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
How to Complete the Application Setup Window. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Chapter 3: Entering Forecasts

Forecasting Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Forecast Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
How to Maintain Forecasts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
How to Insert a New Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
How to Modify Existing Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Chapter 4: MRP Utilities

Generating the Material Requirements Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Releasing Planned Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
How to Release Planned Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
About Releasing Manufactured Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
About Releasing Purchased Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Chapter 5: Generating Reports

MRP Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
MRP Detail Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Material Requirements Planning User Guide i

ii Sage PFW
 Preface

Introduction
Material Requirements Planning (MRP) is one of the many process manufacturing
applications available in the Sage PFW ERP product. The MRP application provides
precise planning capabilities, customizable material management, and data security.
These features are designed to accommodate the planning needs of your business, and
work in seamless conjunction with the other Sage PFW financial applications.

About this user guide

This user guide contains information on how to use MRP to complete daily accounting
and reporting tasks involved in processing process manufacturing.

Prerequisite knowledge
This user guide is based on the assumption that you have some accounting knowledge. It
does not attempt to teach accounting.

It is also assumed that you have some working knowledge of personal computers
operating in a network environment and a familiarity with Windows.

If you are new to the Sage PFW suite of products, you should familiarize yourself with the
operating procedures described in the System Basics User Guide.

Related Documentation
The following provide additional information on using Sage PFW.

Document Name Description

System Management This user guide provides information on installing
Sage PFW, as well as setting up the appropriate sys-
tem-level files and options to enable users to access
and use the system. It is intended for your company’s
System Administrator.
System Basics This user guide introduces the basic concepts com-
mon to all Sage PFW applications; including forms,
features, keyboard command keys, and common
methods for entering data, viewing data, generat-
ing and printing reports, and viewing online Help
and user guides.

Material Requirements Planning User Guide 1

Preface

Document Name Description

User Guides There is a separate user guide for each Sage PFW
application providing the specific instructions for pro-
cessing data in that application.
All Sage PFW user guides are provided online and
may be accessed from the Help menu. To view this
information, start Sage PFW, choose the User Guides
item from the Help menu, and choose the desired
user guide to be viewed.
Online Help Each application contains online Help which pro-
vides information on specific windows and fields. The
user guides and online Help are designed to be used
in conjunction with one another.
Database Reference This guide contains the data file layouts for the Sage
Guide PFW applications.
README File The README file contains information about the
application, Help, and user guide updates that are
not currently included in the documentation.
To view this information, start Sage PFW and choose
the README Files item from the Help menu.

2 Sage PFW
 Chapter 1:

Chapter 1: Introducing
Introducing MRP

MRP
Introduction
This chapter provides an overview of how the Material Requirements Planning (MRP)
application automates the process of purchasing and manufacturing materials to satisfy
product demand. It includes the definitions required to understand MRP, and a brief
description of the available features and interfaces.

In this chapter
This section contains the following topics:

Topic Page
Features and System Integration 4
System Integration 4

Glossary
To understand the topics presented in this manual, you should be familiar with the
following terms.

Term Definition
Demand A production batch, customer order, warehouse transfer, or fore-
cast that causes requirements for a material or packaging com-
ponent. Sage PFW supports four methods of calculating
demand: 1) actual demand from open sales and production
orders, 2) greater of actual demand or forecast demand, 3)
actual plus forecast demand, and 4) forecast demand.
Planning Zone One or more days in which a demand calculation method
applies.
Time Fence Time fences are used to divide the demand ranges used by MRP.
MRP supports two time fences. The first usually delineates actual
demand and the second planned or forecast demand.
Time fences may be defined globally in MRP Application Setup,
at the inventory class level using Item Class File Maintenance, or
at the item level with Item Entry.
Planned An order automatically generated by MRP to satisfy demand.
Order
Scheduled An order placed on production or on a vendor that represents a
Receipt commitment to make or buy a material.
Low-Level The lowest level on which a material or packaging component
Code resides in all formulas and bills of material.

Material Requirements Planning User Guide 3

Chapter 1: Introducing MRP

Features and System Integration

Planning Calendars
You can create an unlimited number of Planning Calendars that define the way data is
grouped when displayed or reported. For example, one Planning Calendar may group
data in weekly buckets for the first planning zone, then monthly thereafter. Another
Planning Calendar may group data in daily buckets for all planning zones.

User-Definable Time Fences

Time fences are defined at the application level, but may be overridden at the item class
level, and at the item master level. This allows for flexibility in determining how demand
is calculated within a planning zone.

Multiple Forecasts
You can define an unlimited number of forecasts for each item location. Forecasts may be
manually entered, or derived from sales or production history.

System Integration
MRP integrates with the Inventory Pro, Formulas, Order Entry Pro, Purchasing Pro, and
Production applications. In order for MRP to provide accurate information, the data
within these applications must be kept current.

Inventory Pro
MRP uses opening on-hand balances and minimum stock quantities from the Item
Location table. It determines an item’s Order Policy and Order Method from the Item
Master table. It first looks at the Item Master, then the Item Class table to determine an
item’s time fences before defaulting to the MRP application setting.

Formulas
MRP determines low-level codes and component requirements based on product
formulas.

Order Entry Pro

MRP determines requirements based on open orders for products and product kits, as
well as out-going warehouse transfers. It determines receipts based on in-coming returns
and warehouse transfers.

Purchasing Pro
MRP determines receipts based on incoming purchase orders. It automatically creates
purchase orders based on planned MRP orders.

4 Sage PFW
 System Integration

Production

Chapter 1: Introducing
MRP determines requirements and receipts based on open and scheduled production
orders. It automatically creates production schedule records based planned MRP orders.

MRP

Material Requirements Planning User Guide 5

Chapter 1: Introducing MRP

6 Sage PFW
 Chapter 2:
Setting Up Material Requirements Planning

Introduction
Before you begin to use the Material Requirements Planning application, there are several

Material Requirements
Chapter 2: Setting Up
general setup tasks you must do to prepare the MRP system to function effectively for
you.

Each of the setup procedures is presented in the recommended order. The order in which
the files are set up is important from both a processing and time-saving standpoint.

Online Help
As you proceed through the setup, remember to make liberal use of the online Help for an
overview of the option and most importantly before you enter data in each field.

In this chapter
This chapter contains the following sections:

Topic Page
Setting Up Planning Calendars 8
Completing the Application Setup Window 10

Material Requirements Planning User Guide 7

Chapter 2: Setting Up Material Requirements Planning

Setting Up Planning Calendars

Introduction
Use the Planning Calendar window to define the planning calendars you want available
for forecasting and MRP reporting.

In this section
This section covers the following topics:

Topic Page
Planning Calendar Window 8
Description of Planning Calendar Options 9
How to Complete the Planning Calendar Window 9

Planning Calendar Window

The Planning Calendar window appears as follows:

8 Sage PFW
 Description of Planning Calendar Options

Description of Planning Calendar Options

Origin Date
The system uses the Origin Date as the starting date for forecast entry. All forecast entry
planning period dates are based on this date.

Demand Range 1 thru 3 Days Per Period

Material Requirements
The system uses the Days Per Period to define the number of days in each user defined

Chapter 2: Setting Up
period for each of the 3 demand ranges. Note that you only need to define the first
demand range if all of your periods contain the same number of days.

Demand Range 1 thru 3 Number of Periods

The system uses the Number of Periods to define the length of a demand range. The
length of a demand range is the number of periods times the days per period. A Planning
Calendar may not exceed a total of 256 periods.

How to Complete the Planning Calendar Window

Procedure
To complete the Planning Calendar window, do the following:

Step Action

1 Select Planning Calendar from the business desktop.

2 Complete the fields in the Planning Calendar window.

3 Select Save.

4 Repeat steps 1-3 for each planning calendar you

need.
Need more information? Press F1.

Material Requirements Planning User Guide 9

Chapter 2: Setting Up Material Requirements Planning

Completing the Application Setup Window

Introduction
Completion of the Application Setup menu item is required to define MRP planning
information

In this section
This section contains the following topics:

Topic Page
Application Setup Window 10
How to Complete the Application Setup Window 11

Application Setup Window

The Application Setup window appears as follows:

10 Sage PFW
 How to Complete the Application Setup Window

How to Complete the Application Setup Window

Procedure
To complete the Application Setup window, do the following:

Step Action

1 Select Application Setup from the business desktop.

2 Complete the fields in the Application Setup window.

Material Requirements
Chapter 2: Setting Up
3 Select Save.
Need more information? Press F1.

Field Descriptions
Demand Fence 1 and 2
Demand Fence 1and 2 marks the limit of the Demand Ranges. Using the Gross Demand
Calculation for Demand Ranges, the system determines gross requirements for this
period. Gross requirements include actual demand and can include forecasts if specified
in the Gross Demand Calculation. Demand is made up of new and committed production
orders, production schedules, and open sales orders. Forecasts are made up of the
forecasts you enter in Forecast Entry.

Demand Fences can also be entered in Inventory Pro - Item Entry (MRP/Stocking Info tab)
or in Item Class. The system looks first in Item Entry then in Item Class and finally in MRP
Application Setup for these values. Entry of demand fences is optional in the first two but
required in MRP Application Setup.

For example, ranges always begin with the current date. So if today's date is April 1 the
range covers April 1 through April 30.

Default Planning Calendar

The Planning Calendar you enter here is the default calendar used when you enter
Forecasts and for the MRP Report. You can change the calendar for either of these options
when you are setting them up.

Remember, the periods specified in the Planning Calendar are not related to the Demand
Fences that you have just created.

Material Requirements Planning User Guide 11

Chapter 2: Setting Up Material Requirements Planning

Gross Demand Range Calculations

The values specified in Demand Ranges 1 and 2 determine how gross requirements (or
demand) is calculated by the Generate Material Requirements Plan utility for the Demand
Fences you specified above. The gross demand can be calculated differently for each of the
three demand ranges.

The available methods are:

• Demand is calculated as the actual demand, based on new and committed production
orders, production schedules, expected receipt of open purchase orders, and open
sales orders.
• Greater of Demand/Forecast - Demand is calculated as the greater of actual demand
(as described above) or forecast demand.
• Actual Plus Forecast Demand - Demand is calculated as the sum of actual demand
and forecast demand.

Note: Forecast DemandDemand is calculated as forecast demand only.

12 Sage PFW
 Chapter 3:
Entering Forecasts

Introduction
This chapter provides procedures for entering forecasts. The discussion explains:

• The purpose of a forecast

• How to use the Forecast window

In this chapter
This chapter contains the following sections:

Chapter 3: Entering
Topic Page
Forecasts 14

Forecasts
Forecast Window 14
How to Maintain Forecasts 14
How to Insert a New Forecast 15
How to Modify Existing Forecasts 16

Material Requirements Planning User Guide 13

Chapter 3: Entering Forecasts

Forecasting Options

Forecasts
Forecasts are estimates of conditions that will exist over a future period for finished goods
and in-house intermediate items. They may be manually entered, or based on historical
sales and/or manufacturing information.

You may enter multiple forecasts for each item. For example, you may enter each of your
salesperson’s sales forecast independently. The system will automatically summarize all
forecasts for a given planning period.

Forecasts are not required by the MRP system. However, you should enter forecasts if you
don’t want to wait until actual orders are received to plan what you will need to produce.

Purpose
The purpose of a forecast is to estimate the sales or manufacturing demand for a product
(finished goods or in-house intermediates) for the purpose of future resource planning.
You may configure the MRP generation process to consider forecasts exclusively, or in
addition to actual sales and production demand.

Forecast Window
When Forecast Entry is selected from the business desktop, the Forecast Entry window
appears.

How to Maintain Forecasts

The procedure for maintaining forecasts consists of selecting the item to forecast, selecting
the planning calendar, then viewing or creating individual forecasts.

14 Sage PFW
 How to Insert a New Forecast

Procedure
To maintain an item’s forecast, do the following:

Step Action

1 Select Forecast Entry from the business desktop.

2 Select a planning calendar. The default planning cal-

endar configured in the Application Setup window is
automatically loaded. The period dates displayed in
the forecast grid are determined by the selected plan-
ning calendar.
3 Enter, modify, or delete individual forecasts.

4 Select Save.

5 Repeat steps 1-3 for each planning calendar you

need.
Need more information? Press F1.

How to Insert a New Forecast

Chapter 3: Entering
Forecasts
You can enter new forecasts based on quantity, production history, or sales history.

Procedure
To insert a new forecast, you select the Insert Row toolbar button, or select Insert Row
from the Edit menu. A window similar to the following appears:

Forecasting by Quantity
You can automatically fill all forecast cells with a specified quantity. Click on the Quantity
button, enter the forecast quantity, then click OK.

Forecasting by Production History

You can automatically fill all forecast cells based on your production history. Click on the
Production History Date button, enter the starting date to base your forecast, then click
OK. Your forecast will automatically fill based on your production history information.

Material Requirements Planning User Guide 15

Chapter 3: Entering Forecasts

Forecasting by Sales History

You can automatically fill all forecast cells based on your sales history. Click on the Sales
History Date button, enter the starting date to base your forecast, then click OK. Your
forecast will automatically fill based on your sales history information.

How to Modify Existing Forecasts

You can modify existing forecasts several ways. This section discusses each of the
methods available to modify your forecasts.

Manual Editing
You can manually edit each forecast cell. Simply navigate to the cell and enter the new
value.

Zeroing a Forecast
You can zero a whole forecast, or a selected range of forecast cells. To zero a forecast, place
the cursor on any cell within the forecast row, then select Zero Forecast from the Edit
menu, or press <Ctrl>+A.

To zero a range of forecast cells, select the desired range of cells which may include more
than one forecast, then select Zero Selected from the Edit menu, or press <Ctrl>+Z.

Filling a Forecast
You can automatically update a forecast or a selected range of forecast cells. To fill a
forecast, select Fill Forecast from the Edit menu, or press <Ctrl>+L. To fill a range of
forecast cells, select Fill Selected from the Edit menu, or press <Ctrl>+T. Note that the Fill
Selected option is only available after you have selected one or more forecast cells. A
window similar to the following appears:

Select to fill a forecast by quantity, by production history, or by sales history. Alternatively,

you can adjust your existing forecast by a percentage or quantity amount

Copying a Forecast
You may copy a forecast to a new or existing forecast. If you copy to an existing forecast,
all forecast cells will be overwritten with the selected forecast.

16 Sage PFW
 How to Modify Existing Forecasts

To copy a forecast, do the following:

Step Action

1 Place the cursor in any cell of an existing forecast row

and select Copy Row from the Edit menu or press
<Ctrl>+Y.
2 Place the cursor in any cell of the target forecast row
and select Paste Row from the Edit menu or press
<Ctrl>+W. You may need to insert a new row prior to
pasting.
Need more information? Press F1.

Chapter 3: Entering
Forecasts

Material Requirements Planning User Guide 17

Chapter 3: Entering Forecasts

18 Sage PFW
 Chapter 4:
MRP Utilities

Introduction
This chapter provides instructions for using each of these utilities:

• Generate Material Requirements Plan

• Release Planned Orders

In this chapter
This chapter covers the following topics:

Topic Page
Generating the Material Requirements Plan 20
Releasing Planned Orders 22

Chapter 4: MRP Utilities

Material Requirements Planning User Guide 19

Chapter 4: MRP Utilities

Generating the Material Requirements Plan

Introduction
The Material Requirements Plan is the core component of the Material Requirements
Planning application. It identifies all open inventory requirements and receipts, all
dependent demand derived from inventory requirements, and all scheduled and planned
order exceptions. In addition, it contains all MRP generated orders required to be released
to satisfy future demand.

Note: Both Transfer In and Transfer Out (R and N) type transactions are included
in this process.

You must generate the Material Requirements Plan before you can generate any MRP
reports or release MRP planned orders. Although you should not have to run the
Generate Material Requirements Plan more than once a day, you should run it any day on
which you will generate MRP reports.

When to Update Level Codes

The Generate Material Requirements Plan parameter screen provides the option to
Update Level Codes. Updating your level codes significantly increases the amount of time
required to generate the material requirements plan. However, your level codes must be
current for an accurate Material Requirements Plan.

You should update your level codes when:

• You first use the MRP application.

• The structure of your formulas or intermediates change.

• Your finished food or container bills of material change.

• The formulas and intermediates associated with your finished goods change. Suffi-
cient quantities are ordered to fulfill minimum stock quantities.

Reschedule In Future Dated Receipts

If you select this field, MRP lists items that are required by a given date (ex. 12/15/07)
when receipts for those items are due to arrive later (ex. 12/20/07) than the date the items
are required. In this case, the MRP displays the message "Reschedule In" for the future-
dated receipts, and if those receipts are not reschedules, you may not have sufficient
quantity on hand to fill Production orders and Sales orders.

If you uncheck this field, MRP schedules new receipts for the items per the example
above, to arrive on time to fill the requirements. In this case, MRP displays the message
"Cancel" for the future-dated receipts, and if you fail to cancel those receipts, you may end
up with excess quantities on hand.

20 Sage PFW
Generate Material Requirements Plan Window
The Generate Material Requirements Plan window appears as follows:

Procedure
Take the following steps to generate your Material Requirements Plan:

Chapter 4: MRP Utilities

Step Action

1 Select Generate Material Requirements Plan from the

business desktop.
2 Select an existing parameter to edit or process, or
select New to create new parameters.
3 Select whether or not to update your company’s Level
Codes.
4 Click Process.

5 Save the parameters, if desired.

Need more information? Press F1.

Material Requirements Planning User Guide 21

Chapter 4: MRP Utilities

Releasing Planned Orders

Introduction
Use the Release Planned Orders to authorize the purchase or production of items based
on MRP planned orders. When an MRP planned order is released, it automatically
becomes a scheduled receipt.

In this section
This section covers the following topics:

Topic Page
How to Release Planned Orders 22
About Releasing Manufactured Items 24
About Releasing Purchased Items 24

How to Release Planned Orders

The Release Planned Orders utility converts the MRP Planned Orders for a specified
range of items to purchase or production orders. When the process is complete, the
system generates a recap that lists all the production schedule items and purchase orders
that were created.

Preview run
You can do a trial run of this utility to preview the production schedule records and
purchase orders before you actually release the orders. During the preview run the
system searches the database to locate records that correspond to the selection criteria. If
the records on the trial listing are not what you expect, revise the selection parameters
until you get the desired results.

When you are satisfied with the information on the trial listing, run the utility with the
Release Orders check box marked. This will convert the MRP Planned Orders into
production schedule and purchase order records.

22 Sage PFW
 How to Release Planned Orders

Release Planned Orders window

The Release Planned Orders window appears as follows:

Procedure
Use the following procedure to release MRP planned orders:

Chapter 4: MRP Utilities

Step Action

1 Select Release Planned Orders from the business desk-

top.
2 Select an existing parameter to edit or process, or
select New to create new parameters.
3 Choose the desired selection criteria by completing
the document tabs, as applicable.
4 Click Process.

5 Save the parameters, if desired.

Need more information? Press F1.

Release Planned Orders report

Upon selecting Process, a recap of the new production schedule items and purchase
orders is printed to provide you with an audit trail.

To view a sample Release Planned Order report, click the following link.

Material Requirements Planning User Guide 23

Chapter 4: MRP Utilities

About Releasing Manufactured Items

You can release manufactured items by running the Release Planned Orders utility with
the Planned Order Method Manufactured Items check box marked. MRP creates a
production schedule record for each released planned order.

Identifying Manufactured Items

An item is identified as manufactured if it is either an in-house intermediate or a finished
good.

Determining the Batch Type

The Release Planned Orders Utility automatically determines the batch type to associate
with each new production schedule record. If the item being released is an intermediate, a
Mix schedule record is generated. If the item being release is a finished good, then a Fill
schedule record is generated if the formula associated with the finished good is an
intermediate. Otherwise, a Mix schedule record is generated.

About Releasing Purchased Items

You can release purchased items by running the Release Planned Orders utility with the
Planned Order Method Purchased Items check box marked. MRP creates at least one
purchase order for each released planned order, but attempts to minimize the number of
purchase orders generated by grouping like items or items purchased from the same
vendor onto one purchase order.

Determining the Vendor and Unit Price

The Release Planned Orders Utility uses the following sequence to determine the vendor
and unit price:

• The Vendor and Unit Price from the Purchase Order Contract file.

• The highest ranking vendor in the AP Vendor Item file along with the Last Cost from
the Item Location file.

• The Primary Vendor and Last Cost from the Item Location File.

Combining Purchase Orders

You can combine purchase orders for the same vendor within a number of days by
specifying a non-zero Max Days To Advance Order Dates. MRP will advance the Planned
Order Release date to generate the minimum number of purchase orders.

Applying Price Breaks

Once the order date for all purchase orders has been determined, the Release Planned
Order utility attempts to apply any price breaks defined in the Purchase Order Vendor
Lead Time/Quote file to lines that do not have an associated contract.

24 Sage PFW
 About Releasing Purchased Items

Thru Date
You can further refine the planned order selection process by specifying the planned
order creation date through which the system will select orders.

For example, if you set this date to Friday of the current week, the system would only
release purchase orders that need to be ordered this week and release production order
that must begin production this week.

Max Days To Advance Order Dates

You can specify the number of days from the current date after which planned orders will
not be released. If no number is specified all planned orders in the schedule will be
released.

In addition, this will cause the system to group items, that fall within this range, together
in the same Purchase Order or Production Batch.

Release Planned Orders

This option allows you to run a trial report or to actually release planned orders. If a trial
report does not produce satisfactory results, you can change the selection parameters and
re-run the utility without having released any orders.

Chapter 4: MRP Utilities

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Chapter 4: MRP Utilities

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 Chapter 5:
Generating Reports

Introduction
This chapter provides information about Material Requirements Planning reports and
includes sample output and suggested uses.

Material Requirements Planning provides the following predefined reports:

Name Purpose
MRP To report a time-phased picture of inventory
status, including exception messages.
MRP Detail To report the details behind the MRP report,
including orders, receipts, planned orders,
and exception messages.

Exception Messages
The following exception messages may be generated by both MRP reports:

Exception Reason
Cancel Order Identifies a scheduled receipt without a
matching requirement. Since the receipt is not
required, the system recommends that the
order by cancelled.
Past Due Identifies a scheduled receipt whose due
date has past.
Reschedule In Identifies a scheduled receipt whose due
date is after the matching requirement’s
date. The system recommends that the order
be rescheduled earlier.
Reschedule Identifies a scheduled receipt whose due

Chapter 5: Generating
Out date is before the matching requirement’s
date. The system recommends that the order

Reports
be rescheduled to a later date.
Release Order Identifies a planned MRP order that should be
released to purchasing or manufacturing.

Reference
For report generating instructions, refer to the System Basics User Guide.

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Chapter 5: Generating Reports

In this chapter
This chapter covers the following topics:

Topic Page
MRP Report 28
MRP Detail Report 30

MRP Report
The MRP Report shows time-phased inventory planning information. The time periods
shown on the report may be based on a planning calendar or on a specified date followed
by the next eight months. The report includes:

• Beginning inventory quantities

• Gross requirements

• Scheduled receipts

• Net requirements

• Planned order receipts

• Planned order releases

• Exception messages

The report is sorted by location key within item key.

MRP Report window

The MRP Report window appears as follows.

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 MRP Report

The Parameters tab includes several document tabs that allow you to set selection criteria
for including specific items on the report. Use online Help (F1) to locate the description of
each field on the document tabs.

Including items without activity

You can include inventory items without activity on the report by checking the Include
Items Without Activity check box on the Item Type Filter document tab.

Including items with exceptions

You can include only items with exceptions, i.e. items requiring action by a purchasing or
production planner, by checking the Exceptions Only check box on the Item Type Filter
document tab.

Determining the period dates

The MRP Report displays nine columns of data that are based on the Planning Origin
Date field on the Format tab. The periods are derived from the Planning Calendar you
specify on the Format tab, or on calendar months starting with the Planning Origin Date.

The first column represents transactions prior to the Planning Origin Date. The next eight
columns represent planning periods that are based on the Planning Origin Date month
followed by the next seven months, or the Planning Origin Date month followed by the
next seven periods based on the Planning Calendar.

Suggested use
This report is useful to planners because it provides a standard view of one or more item’s
planning horizon information. It can be used as an action report by checking the
Exceptions Only check box on the Item Type Filter document tab.

Note: The Ship Date is not used for transfer out type transactions

Procedure

Chapter 5: Generating
Use the following procedure to generate the Activity Report:

Reports
Step Action

1 Select MRP Report from the business desktop.

2 Select an existing parameter to edit or process, or

select New to create new parameters.
3 Complete the document tabs on the Parameters tab.

4 Select Process.

5 Save the parameters, if desired

Need more information? Press F1.

Material Requirements Planning User Guide 29

Chapter 5: Generating Reports

Sample MRP report

To view a sample MRP report, click the following link.

MRP Detail Report

The MRP Detail Report provides the supporting details behind the MRP Report. In
addition, since there is no column limitation, it provides an expanded horizon of planning
information. The report includes:

• Beginning inventory balance

• Gross requirement transactions

• Scheduled receipt transactions

• Projected available balance

• Pegging and supporting order details

Note: The Requested Ship Date is used for transfer out type transactions.

• Exception messages

This report helps you identify the source of MRP exception messages and make better
informed purchasing and manufacturing decisions.

MRP Detail Report window

The MRP Detail Report window appears as follows.

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 MRP Detail Report

Selecting items for the report

The Parameters tab of the MRP Detail Report window provides you with the following
ways to qualify inventory items for the report:

• Select based on ranges you define on the Item Filter document tab

• Select based on values you define on the Activity Filter document tab

• Select based on values you define on the Include Based On tab

Use online help (F1) to locate the description of each field on the document tabs.

Procedure
Use the following procedure to generate the MRP Detail Report:

Step Action

1 Select MRP Detail Report from the business desktop.

2 Select an existing parameter to edit or process, or select

New to create new parameters.
3 Complete the document tabs on the Parameters tab.

4 Select Process.

5 Save the parameters, if desired.

Need more information? Press F1.

Sample MRP Detail report

To view a sample MRP Detail report, click the following link.

Chapter 5: Generating
Reports

Material Requirements Planning User Guide 31

Chapter 5: Generating Reports

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 Index

D O

definition of terms, 3 order entry

demand calculation, 3 system integration, 4
planning zone, 3

P
F
planned orders
forecasting, 14 defined, 3
by quantity, production history, and sales history, release of, 22
15 planning calendar
copying, 16 demand ranges, 9
zeroing and filling, 16 setup, 8
planning zone
definition, 3
G time fence, 3
production
system integration, 5
glossary purchasing
definition of terms, 3 system integration, 4

L R

level codes, updating, 20 Release Planned Orders report, 23

low-level code, defined, 3 releasing manufactured items, 24
releasing purchased items, 24
reports
M MRP Detail, 30
MRP Report, 28
MRP Detail report, 30 Release Planned Orders, 23
MRP features
application setup, 10
demand calculation, 3 S
forecasting options, 14
formulas, 4 system integration
planned orders, 3 inventory, 4
planning calendars, 4 order entry, 4
releasing manufactured items, 24 production, 5
releasing planned orders, 22 purchasing, 4
releasing purchased items, 24
system integration, 4
time fence, 3
T
Index

updating level codes, 20

MRP Report, 28
time fence, defined, 3

Material Requirements Planning User Guide 33

T-T

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