Coverage groups (form) [AX 2012]

Updated: October 8, 2012

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Click Master planning > Setup > Coverage > Coverage groups.

Use this form to create a coverage group, and to set up the parameters that are used in master scheduling. The parameters that you set up determine how net requirements are calculated for the items that are linked to the coverage group.

Typically, you set up a coverage group for items that share similar characteristics or circumstances. For example, the items might be purchased from the same vendor, or they might be a group of similar end items.

NoteNote

If you do not link a coverage group to an item, the default general coverage group is used. This group is specified in the Master planning parameters form.

The following tables provide descriptions for the controls in this form.

Tab

Description

General

Enter the settings for the selected coverage group.

Caution noteCaution

If you do not select the BOM version requirement check box or the Route version requirement check box, master scheduling expects that all units of a certain item are interchangeable. Master scheduling also expects that any available inventory can be used to fulfill the requirement for inventory, if that the inventory has the same item number.

If the check boxes are selected, different units of the same item are not seen as interchangeable, and a specific order is created in response to the master scheduling requirement.

Other

Set up the planned order, forecast plan, and safety margins for the selected coverage group.

Action

Set up parameters for action messages in the Master plans form. These parameters specify which action messages are generated and how the action messages are generated.

Futures

Set up parameters for futures messages in the Master plans form for the selected coverage group.

Field

Description

Coverage group

The name of the coverage group.

Name

Enter a description of the coverage group.

Calendar

The workdays calendar, which is used to calculate the order date, requirement date, and preferred delivery date.

Coverage code

Select the method that master scheduling uses to calculate requirements for the item. The following options are available:

  • Period – When demand reduces the projected inventory below the specified minimum quantity, a planned order is generated. This planned order is used to fulfill the sum of all demands that occur during the time period that you specify in the Coverage period field. The coverage period starts on the date of the first requirement. The planned order is also generated on that date.

  • Requirement – A planned order is generated to fulfill each requirement that reduces inventory below the minimum quantity.

  • Min./Max. – When demand reduces the projected inventory below the specified minimum quantity, a planned order is generated. The planned order is used to increase the inventory to the specified maximum quantity.

    NoteNote

    When this method is used, physically reserved items are not included in calculations of requirements.

  • Manual – Master scheduling does not calculate requirements or generate planned orders for the item. It is assumed that the item is planned manually. This method is best used for items that are easy to buy, or for items that are managed by visual inspection.

Coverage period

Enter a time period as a number of days. Do not use week or months as a time period. During the number of days that you specify, master scheduling consolidates all requirements for the item and generates one planned order to cover the sum of these demands. For example, if you enter 5, planned orders are consolidated for five-day periods.

The field is available when you select Period in the Coverage code list.

Example

The coverage period is 5, and the minimum quantity is 0 (zero). Sales orders have requirement dates of September 1, September 3, September 10, September 14, and September 20. Master scheduling generates three planned orders:

  • One planned order is dated September 1, and it covers the September 1 and September 3 sales orders.

  • One planned order is dated September 10, and it covers the September 10 and September 14 sales orders.

  • One planned order is dated September 20, and it covers the September 20 sales order.

Coverage time fence

Enter a period as a number of days. Do not use week or months as a period. During the number of days that you specify, requirements are calculated.

NoteNote

The coverage time should be equal to or more than the lead time for the item. If the lead time is more than the time given here, master scheduling might generate planned orders that are outside the coverage time fence.

The time fence setting in the Master plans form overrides the coverage group setting.

Negative days

Enter the days that are added to a requirement due date. This number defines a time interval during which a planned receipt that is due can be used to fulfill the requirement. A planned receipt that is outside the defined time interval cannot be used to fulfill the requirement. Master scheduling generates a new planned order. You can equate negative days with the number of delivery days that are past due. During this time, there is a negative inventory level for the item. You must accept the negative inventory level before you can create a new fulfillment order.

The value that you enter depends on factors such as item lead time and the organization’s policy about inventory. If an item has a long lead time, you can specify the typical lead time as negative days.

You can specify negative days in either the Item coverage form or the Coverage groups form.

NoteNote

The full behavior of negative days depends on whether you select the Use dynamic negative days check box in the Master planning parameters form.

Example

For a particular item, a purchase order is scheduled for receipt on September 20, and a sales order is scheduled for delivery on September 19. You must specify whether to generate a new planned purchase order to cover the requirement, or to accept a late delivery for the sales order on September 20.

If you set the negative days to 0 (zero), a new planned purchase order is generated. If you set the negative days to a number that is larger than zero, no planned purchase order is generated. Instead, an action message is generated for the purchase order, and a futures message is generated for the sales order. For more information, see About action messages and About futures messages.

Positive days

Enter the number of days that is subtracted from a requirement due date. This number defines a time interval during which a planned receipt that is due can be used to fulfill the requirement. A planned receipt that is outside the defined time interval cannot be used to fulfill the requirement. Master scheduling generates a new planned order. You can equate positive days with the number of days that you can use existing inventory before you must create a new fulfillment order.

For items that you regularly order and procure, specify the item's coverage period as positive days. For items that have few transactions, specify the coverage group's coverage period as positive days.

You can specify positive days in either the Item coverage form or the Coverage groups form.

Example

For a particular item, there is inventory, and a sales order is scheduled for delivery in 90 days.

If you enter a number that is less than 90, a new planned purchase order is generated. If you set the positive days to a number that is more than 90, no planned purchase order is generated. However, the current inventory levels of the item are no longer available for new sales orders.

NoteNote

If you use automatic reservation when you create sales orders, or manual reservation later, the Positive days setting is not considered in master scheduling.

BOM version requirement

If you select this check box, a particular bill of materials (BOM) version affects coverage planning. For example, for a sales order, you can indicate in the Item number field that the items that are ordered must be produced by a particular BOM version. If that version is not the active BOM version for the item, a new planned production order is created. Requirements that are derived from the specified BOM version are used, regardless of the current inventory available.

Route version requirement

If you select this check box, coverage uses a specific route version. For example, for an order, you can use the Subroute field to specify that the ordered item must be produced through a specific route version. If that version is not the active route version for the item, a new planned production order is scheduled. This is specified in the route version to cover the requirement and is regardless of the current inventory levels.

Period template

Select a template to view the master scheduling requirements that are calculated for the items in the coverage group. The template only filters and displays data; it is not used in the calculations. When you select a template, and then view the requirements for an item in the Net requirements, schedule %1 form, the Period tab displays the requirements. You can change this field value at any time.

On the Period tab of the Net requirements, schedule %1 form, you can change the period template in the Period template field. The form displays the requirements, based on the template that you select.

Requested production status

Specify the production status to use for automatic firming of planned production orders. The following options are available:

  • Scheduled

  • Released

  • Started

When planned orders are firmed, productions that have the selected status are created automatically.

Firming time fence

The period during which planned purchase orders and production orders are automatically firmed. The time fence is expressed in days, and is calculated from the date of the requirement calculation.

NoteNote

If you did not associate a vendor with the item, the planned purchase order is not created as a purchase order. It appears as a planned purchase order.

Freeze time fence

Specify the period during which planned orders cannot be created. You also use this field to specify where planned orders from previous requirement calculations cannot be changed. All requirements that are not covered in this period are covered by a purchase order or a production order that is created at the end of the period, together with an action message that suggests advancing the date of the planned order. During the period, if an earlier requirement calculation created a planned purchase order, that order remains in the period and is not moved. The time fence is expressed in days, and it is calculated from the requirement calculation date.

Example

The locking time fence is 10 days. A sales order must be delivered in seven days, and there is no inventory that can cover the requirement. The requirement calculation suggests that the planned purchase order be delivered in 10 days.

Explosion time fence

The period during which planned production orders for items that are on BOMs are exploded into requirements for components. The time fence is expressed in days, and it is calculated from the current date.

Capacity time fence

The period during which the planned production order is capacity scheduled. The master schedule uses the item's active production route, the route is planned, based on the requirement date.

Approved requisitions

Enter the number of days in the past during which demand, from approved requisitions that have the Replenishment purpose, is included in master scheduling.

NoteNote

This control is available only if Microsoft Dynamics AX 2012 R2 or AX 2012 R3 is installed.

Forecast plan time fence

The period during which the demand from the forecast plan is included in master scheduling. The time fence is expressed in days, and it is calculated from the current date.

Reduction key

Select the reduction key that master scheduling uses to reduce the forecast requirements that are transferred from the forecast plan. Reduction keys define the time periods during which forecast reduction occurs, and the percentages by which forecast requirements are reduced. You set up the reduction keys in the Reduction keys form.

TipTip

To use a reduction key during master scheduling, you must select the Percent - reduction key option or the Transactions - reduction key option in the Reduction principle field in the forecast plan setup or the master plan setup.

Reduce forecast by

Select the method that is used to reduce forecast requirements for a combination of dimensions during master scheduling. The following options are available:

  • Orders – Forecast requirements are reduced in the following ways:

    Demand forecast requirements are reduced by sales orders.

    Supply forecast requirements for a product type of Item are reduced by purchase orders.

    Supply forecast requirements for an item are reduced by production order receipts.

  • All transactions – Forecast requirements are reduced in the following ways:

    Demand forecast requirements are reduced by all issue transactions, regardless of the transaction type. The only exceptions are internal transfer orders that are issued to the same coverage planned dimensions.

    Supply forecast requirements are reduced by all receipt transactions, regardless of the transaction type. The only exceptions are internal transfer orders that are received by the same coverage planned dimensions.

Include intercompany orders

Select this check box to reduce the forecast by intercompany orders.

Receipt margin

A safety margin that is added to the requirement date of the receipt during master scheduling. The margin is expressed in days.

NoteNote

Safety margins for the coverage group and safety margins for the master plan are added together during master scheduling.

For example, if the receipt margin is set to 4 days, and a purchase order line is scheduled for receipt on May 15, master scheduling calculates the adjusted receipt date as May 19.

Issue margin

A safety margin that is subtracted from the requirement date of the issue during master scheduling. The margin is expressed in days.

NoteNote

Safety margins for the coverage group and safety margins for the master plan are added together during master scheduling.

For example, if the safety margin is set to 4 days, and a sales order line is scheduled for delivery on May 15, master scheduling calculates the adjusted delivery date as May 11.

Reorder margin

A safety margin that is added to the lead time for the item for all planned orders during master scheduling. The margin is expressed in days.

NoteNote

Safety margins for the coverage group and safety margins for the master plan are added together during master scheduling.

Action message

If this check box is selected, the items are set up for action messages. Action messages suggest ways to avoid unwanted situations, and ways to change existing purchase orders and production orders.

Action time fence

The number of days from the current date during which there are action messages for the requirement.

Postpone margin

The maximum number of days that receipts can arrive in inventory before inventory is issued. If the number is exceeded, postponement actions are generated.

Advance margin

Enter the maximum number of days during which receipts can be received in inventory after issues. If the number is exceeded, advance actions are generated.

When you set this margin, issue orders can be handled if the items have not yet been received in inventory. Advance actions are not generated for the selected period.

Basis date

Specify whether action messages are based on the requirement date or the futures date. If you are also running futures messages, we recommend that you specify that the action messages are based on the futures date instead of the requirement date.

Advance

If this check box is selected, master scheduling can suggest that existing planned orders be advanced in time. Use the Advance margin field to specify the maximum number of days between orders that are advanced.

Example

A purchase order that has a delivery time of 5 days is scheduled to arrive on August 10. A sales order is scheduled to be delivered on August 6. Master scheduling suggests that the purchase order be delivered on August 6 instead of August 10.

Postpone

If this check box is selected, master scheduling can suggest that existing planned orders be postponed. Use the Postpone margin field the maximum number of days permissible to be postponed between sales.

Example

A purchase order is scheduled to arrive on August 10, and a sales order is scheduled to be sent on August 13. Master scheduling suggests that the purchase order arrive on August 13 instead of August 10.

Decrease

Select this check box to specify whether master scheduling can suggest that production orders, purchase orders, and other receipt transactions be decreased to prevent excess inventory levels.

Increase

Select this check box to specify that master scheduling can suggest that production orders, purchase orders, and other receipt transactions be increased to prevent shortages in inventory.

Derived actions

Select this check box to activate derived actions. Derived actions are actions that are transferred to component items.

Futures message

Select this check box to activate futures messages for items.

Futures messages warn users when a sales order or production order cannot be completed by the scheduled date. A futures message is generated to indicate a date in the future by which an order can be delivered, considering the particular constraints.

Futures time fence

Enter the number of days from today's date for which futures messages are calculated.


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