Using Sales lead time in Ax 2012 3


Delivery dates on the sales orders are used to plan & determine the expected dates of the goods to be shipped from the originating location. Determining the delivery dates involves many parameters & conditions to be considered, the delivery date can be affected majorly by the Lead time to procure/produce goods, transportation time involved to deliver the goods at the customer’s location, work timings etc.

When setting up the delivery dates in Ax 2012 the following major points are considered:

  1. Delivery date control
  2. Transport days
  3. Order entry deadline
  4. Transport calendars
  5. Work timings.

Delivery date control: a mechanism which helps the organizations determine the planning process for Sales order deliveries. We shall be focusing on the Sales lead time, one of the options Ax 2012 provides in the delivery date control:

  1. Sales lead time.
  2. ATP (available to promise)
  3. ATP + Issue Margin
  4. CTP
  5. None

Sales Lead time: Can be considered as the time from the moment the customer places an order to the moment it is received by the customer. In case of a manufacturing organization it is the time taken to manufacture the order .In case of a trading organization it is the time to procure the goods based on the order.

In Ax 2012 the delivery date control setup can be done at 2 levels:

  1. Accounts Receivables > Setup > Accounts Receivable Parameters > Shipments > Delivery Control
  2. Product Information Management > Common > Released Products > Manage Inventory > Default Order settings > Sales order tab (use the override delivery date control field to configure product specific setup)

Or

  1. Product Information Management > Common > Released Products > Manage Inventory >  Site Specific settings > Sales Order tab (use the override field to configure Site specific setup)

 

Transport Days: Can be determined as the number of days it takes the goods to reach the customer’s place once delivered from the warehouse.

Eg. Warehouse situated in Hyderabad & the goods to be delivered at Chennai, in such a case the time required to deliver the goods based on the mode of transport agreed upon will be transport days.

In case the mode of delivery is By-Road it may take 2 days to reach the customer’s location

In case the mode of delivery is By-Air it may take 1 day to reach the customer’s location.

 

Order Entry Deadline: Is a time frame which is used to determine if the goods can be delivered on the day when the SO is placed or expected delivery date falls.

Eg. If a customer places a SO at 18:00 pm, the system will check for the Order entry deadline setup, if the goods can be delivered today else the system will suggest next date. Consider if in our scenario the Order entry deadline is 13:00 pm then the system will suggest next available date excluding today from the calculation

To be continued…


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