Net Purchases
When you choose to net purchases, the planning process considers approved purchase requisitions and approved purchase orders as scheduled receipts (supply). If you do not choose to net purchases, the planning process ignores this purchasing information.
Attention: This option may be useful when performing simulations to see the impact on the material plan if scheduled purchase receipts are not available as supply.
The planning process ignores unapproved purchase requisitions, but plans using approved requisitions and both approved and unapproved purchase orders as valid scheduled receipts.
Attention: The planning process only nets purchase requisitions and purchase orders that have a purchasing location that is associated to the inventory organization launching the MPS, MRP, or DRP.
Oracle Purchasing requires a promised-by date or need-by date on a purchase order for planned items. If only one of these dates is defined, the planning process considers the date specified (either the promised-by date or need-by date) to be the dock date for the purchase order. If you have defined both dates on the purchase order, the planning process considers the promised-by date to be the dock date when calculating order dates.
Purchase requisitions and purchase orders are planned based on several key dates:
| Promised-by date
| On a purchase order, this is the date the supplier promises to deliver.
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| Need-by date
| On a purchase requisition and purchase order, this is the internal date of need.
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| Dock date vs. order due date
| If the promised-by date exists, the planning process designates it as the dock date (the date you expect the order to arrive on the receiving dock). Otherwise, the need-by date is the dock date. To the dock date, the planning process adds post-processing lead time to arrive at the order planning date: the date that the planning process plans the supply as available for use.
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The planning process considers receiving inspection inventory by calculating a planned receipt date. The post-processing lead time for the item is added to the dock date to determine the planned receipt date. The purchase order quantity in receiving is considered as available supply on this calculated date.
The planning process plans internally sourced requisitions in the same manner as it plans externally sourced requisitions. Oracle Master Scheduling/MRP and Supply Chain Planning recommends that you set up a separate Planner Code and associate it to your internally sourced items. This lets you manage your planned internal requisitions by requesting key reports and windows using the Planner Code associated to your internally sourced items.
See Also
Site Locations
Overview of Internal Requisitions
Net Work in Process
Net Reservations
Netting Supply and Demand
