What is Planned Transfer Orders in d365
In Dynamics 365 Finance and Operations (D365 F&O), Planned Transfer Orders are part of the Master Planning module, which is used to handle intercompany or intersite transfers of goods based on planned demand. Essentially, they represent a forecasted or planned movement of inventory between two different warehouses, sites, or legal entities within an organization.
Key Features of Planned Transfer Orders:
1. Demand-Driven: They are generated when there is a forecast or demand for a product at a particular location, but the inventory needs to be transferred from another location to meet that demand.
2. Generated by Master Planning: When Master Planning runs, it analyzes current stock levels, future demand, and supply, and it generates planned transfer orders if there’s a need to move inventory between different sites or warehouses.
3. Conversion to Transfer Orders: Planned transfer orders are not actual transactions. They are suggestions or plans that need to be reviewed and converted into actual transfer orders, which can then be processed for execution.
4. Optimization of Stock Levels: By using planned transfer orders, a company can ensure optimal stock levels across different locations, reducing the risk of stockouts in some locations while preventing overstock in others.
5. Lead Time Consideration: When creating planned transfer orders, D365 F&O takes into account lead times, transportation methods, and other logistical details to ensure that the stock will arrive in time to meet demand.
In short, Planned Transfer Orders help streamline internal logistics and stock movements across different locations within an organization, making sure that goods are in the right place at the right time.
Understanding the Planned Order Process in Dynamics 365 F&O
The process of handling Planned Orders in Dynamics 365 F&O starts with Master Planning and ends with the firming of the order. Let’s break down this process step by step:
1. Master Planning Setup
- Define planning parameters such as lead times, item coverage, safety stock, and replenishment rules (like make-to-order or make-to-stock).
2. Demand Forecasting and Supply Analysis
- Master planning runs based on sales orders, demand forecasts, or safety stock levels.
- The system analyzes the demand and supply requirements for the products.
3. Master Planning Run
- Execute Master Planning or Forecast Planning to create suggestions for fulfilling demands.
- The system generates Planned Orders for production, purchase, or transfer.
4. Review Planned Orders
- Users can review the Planned Production Orders, Planned Purchase Orders, or Planned Transfer Orders generated.
- The planner checks if the planned orders align with business needs and adjusts any quantities, dates, or other parameters if necessary.
5. Firming the Planned Order
- Once the planner is satisfied with the suggested orders, they firm the planned orders.
- Firming converts the planned order into an actionable order:
- Planned Purchase Order → Purchase Order
- Planned Production Order → Production Order
- Planned Transfer Order → Transfer Order
6. Execution of Firmed Orders
- After firming, the purchase orders are sent to suppliers, production orders are sent to manufacturing, and transfer orders are processed for moving goods between warehouses.
7. Completion of Order
- The process ends when the firmed orders are completed (products are produced, purchased, or transferred as required).