D365 New Feature – Make to order supply automation
Posted on: October 31, 2022 | By: David Occhionero | Microsoft Dynamics AX/365
Make to order supply automation feature notes
There is a new feature that was released in Microsoft Dynamics 365 Supply Chain which this post will describe in detail. The feature name is called “Make-to-order supply Automation” and it will need to be enabled in Feature Management. Note: This can be used with base MRP. There is no need to activate MRP Optimization to realize these benefits
Capacity Load: Resource and Resource Group Level
There is now a field on the Resource and Resource Group that allows users to enter in the number of days they want to see the capacity load. This is a huge win since users have only been able to see the default of “50” on this screen for years! This field will save a user’s latest entry, so in the example below, the next time I open this form, “100” will display.
For users who frequently use MRP there is a new selection during firming that will be welcome.
Single Level Standard – This type of marking will only mark the main (produced) item and not any BOM components. This should allow for component flexibility after firming a planned order. This would help in scenarios where the component inventory is used in a few places and a demand change results in the inventory being utilized in a newer/prioritized order.
Single Level Extended – The same type of scenario as above, and the standard/extended piece resembles the current standard/extended definitions where you can choose to see fulfillment markings depending on quantity remaining.
Master Plan: Configuration
Negative Days can now be set at a Master Plan Level.
Careful Consideration: The Microsoft Release notes indicated that if Negative days are configured on the Master Plans page, then the setting overrides all other negative day settings when the plan runs. The examples shown in this blog prove out the release note. This is different than other settings which can be overridden at the item coverage level.
Controlling Pegging Sequence
There is a now new parameter at each of the following levels called an “override pegging sequence”
- Master Plans
- Coverage Groups
- Item Coverage
This setting allows organizations to keep products available for last-minute orders and optimize the use of existing supply by pegging the latest possible supply to a demand instead of using the first possible supply. The following chart comes from Microsoft’s release notes, but notice that this setting is impactful when the “consume on-hand inventory” is set to After All Supply.
The biggest difference is when Use latest supply is set to yes. The On hand takes precedence over any “delayed” supply orders falling within the negative days parameter.
Fulfillment policies will control the percentage of the total order price or quantity that must be physically reserved before you can release a sales order to the warehouse. This is set up globally and will trickle down to the customer. With this feature enabled you’ll be able to see which policy applies to an order, and can make order-specific overrides as needed. This is a small but powerful change as it improves order visibility and users can see if a setting was overridden.
Delivery Mode and terms on individual purchase order lines
This new feature allows Delivery Terms and Mode of delivery to bet set at the Purchase Order line. This has been a feature that has been requested in numerous implementations and is welcomed now that each line can have its own term. This is especially true when dealing with overseas order lines. There is also a parameter that will control the behavior of the lines when a terms or mode of delivery is changed at the header level. Users can select Never, Always, or Prompt. Also, for intercompany orders, the purchase order line will be synced between the purchase order and its related sales order. As of now it appears that there is an issue with using GIT with Purchase Orders that have a line with a term that allows GIT and one that does not allow GIT.
External Item IDs for Intercompany Orders:
There is also functionality in this feature that enables external item IDs and text descriptions on purchase order lines to be synced with the related intercompany sales order lines. This will be configured under the intercompany relationship between intercompany vendors and customers. On Intercompany purchase orders you will be allowed to select a customer account which will then pull in any external descriptions for that customer. Users will also be allowed to make changes after the fact and the associated intercompany orders will update as well.
2020 Nucleus Research Report on ERP Technology