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Component forecast for purchase planning

Forecast & Purchase Blanket Orders
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Presenter: Sune Lohse, Chief Strategy Officer

How to use component forecast for purchase planning in Business Central?

If I’m a purchaser and I’m in charge of doing the planning and using the requisition worksheet or maybe the planning worksheet, I might want to create forecasts for creating supply that will initiate, that I’m making purchase orders that I can send to my vendors.

This is what happens in the video

If I’m using demand forecasts, I have to be aware, if I’m using sales forecast or component forecast.

Let me show you the different of those, and as a purchaser I might need to setup both if I’m using the forecast.

This means, and the demand forecast I might view it per month, and if I view both sales items and competent items, I can see on my figures here that I made forecasts on my bikes, for instance, which are directly sales items.

This sales forecast is written down when doing the calculation by sales orders, meaning in April if I’ve sold or have a sales order with hundred items, the forecast will initiate a remaining demand of ten, whereas if I have a lot of rim in sales order and that is a component forecast, let’s see if it’s a sales forecast, I can see my bikes are sales forecast, so they’re written down by sales orders, whereas if I filled it on component forecast, I can see here that my rim and spokes are written down by production order component lines.

So if I’m actually selling rim and spokes it will not write down those demand as a forecast and I need to create sales forecast as well, so let’s assume that I both want to forecast 160 going into production and whatever amount going into sales items on the rim, maybe a hundred like this, and when I see both my types.

So I can see I have 260 on forecast now whereas the 160 will be written down by production order component lines, that I forecasted and the hundred will be written down by sales order lines.

so, if I have no production orders but 300 pieces on sales order, it will still have a demand of 160 pieces as a component demand.

So, I have to be aware of how I use demand forecasting that goes into my requisition worksheet.