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'Planned Qty' calculation for a manufactured item on a 'Production Plan'

Hello Community folks!

I was playing around with the ‘Production Planning’ feature before I could implement it at a customer site.

Consider the following - I have an item called ‘BoxTop’. The system shows I have an actual quantity of 3 in the warehouse. I create a new sales order with that item for a quantity of 5. Now if I go ahead and enter a new production plan based on that Sales order, after clicking ‘Get items for Work Order’ (annotation #1 in the snip below) the ‘Planned Qty’ (annotation #2 in the snip below) for the manufactured/sale item is populated as 5 (which is same as the qty on the Sales Order). I would have expected it to be calculated as 2 (=5-3).

Given that, I have the following questions:

  1. Does the ‘Production Planning’ screen do some calculation for getting the ‘Planned Qty’ for the manufactured item like it does for the ‘Projected Quantity’ of the raw materials?
  2. If the answer is ‘Yes’ and the ‘Planned Quantity’ should have been autopopulated with 2 then clearly something is wrong with my settings. Could you please help me identify the company/manufacturing/item settings that should be in place in order to have the system autopopulate the field with the expected value?
  3. If the answer is ‘No’ then don’t you think it would be more efficient to pre-populate the ‘Planned Qty’ field using a calculation similar to how it’s done for the ‘Projected Qty’ instead of just copying from the ‘Sales Order’ line? I can see the value it will add but I may be missing the downside of it. Kindly enlighten me on the same.

Before posting this I had already searched on the forum for similar topics, but couldn’t find any. Even the doc given here (https://erpnext.com/docs/user/manual/en/manufacturing/production-plan) does not talks about the ‘Planned Qty’ and any calculation related to it.

I’m on ERPNext: v12.5.1 (version-12)

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Also, Is there are setting which can flag whether an Item is ‘Make to Order’ or ‘Stock to Order’? May be that setting decides the ‘Planned Qty’.

@mkashif14 We regularly use the Production Plan tool. The answer to your question is

If the answer is ‘No’ then don’t you think it would be more efficient to pre-populate the ‘Planned Qty’ field using a calculation similar to how it’s done for the ‘Projected Qty’ instead of just copying from the ‘Sales Order’ line? I can see the value it will add but I may be missing the downside of it. Kindly enlighten me on the same

Why ?
In our case it makes sense to go consider each Sales Order individually as there are customization that are involved. Production sometimes may need a MOQ also.

Alternative Solution
There may be other conditions where you may want to use projected qty to decide your manufacturing requirement, for that please follow these steps:

  • Set Auto Re-Order levels for items, such that whenever Projected Qty is negative a “Material Request” of type “Manufacture” with a “re-order qty” is created.
  • Then use the Production Planning tool to fetch “Material Requests”
  • This solution may seem cumbersome but will prove to be “Operationally” much more reliable.

I hope this helps.

2 Likes

Thanks Dhananjay for taking out time and replying to my query!

Let me see if I understood your ‘Alternative Solution’ - For items/situations like this where I may want to fulfill a Sales Order first by consuming the quantity at hand and then generating Production orders for the short quantities, I should set a ‘Re-Order’ level for such items (let’s say equal to -1). And then instead of creating a ‘Production Plan’ directly from Sales Order, I should let the system generate a “Material Request” of type “Manufacture” with a “re-order qty”. And then use the ‘Production Planning’ tool based on this ‘Material Request’. Am I correct in my understanding?

It’s a good alternative to achieve what I was looking for. Thanks again!

@mkashif14 you got it right.
This way you can select the correct “Batch Quantity” for your production.