Purpose of the preference 'Item Commitment Transaction Ordering'

1. The preference when Demand Planning Feature is set to Yes.  To enable the feature, navigate to Setup > Company > Enable Features > Items & Inventory tab > Inventory Section > Demand Planning box.  Demand Planning is an add-on module.

2.  Navigate to Setup > Accounting > Accounting Preference > Order Management tab > Sales Order sections > 'Item Commitment Transaction Ordering'

3. Click dropdown to see two options:

Order by Transaction Date

Order by Expected Ship Date

4.  Navigate to Transactions > Inventory > Click Reallocate Items >  Notice there is a column for Order Date and Expected Ship Date

5.  Set the Item Commitment Transaction Ordering Preference to Order by Transactions Date > Navigate to Transactions > Inventory > Reallocate Items > Enter Item Name and Location > Sales Orders and Work Orders are arranged according to the transaction date.

6.  Go back to Accounting Preference Page > Order management tab > change the Preference to Order by Expected Ship Date > Save. 

7.  Navigate again to Transactions > Inventory > Click Reallocate Items > Enter Item Name and Location > Orders are now arranged by Expected Ship Date.

8.  The commitment of the available quantity of an item is based on the available quantity at the time of creation.  The Committed Quantity on existing orders priors created prior to the new order will not change regardless of the preference selected above and regardless of the transaction date or the expected ship date. 

9. To illustrate:

Today's Date is 1/10/2012

Item Record of Item XXX > Purchasing/Inventory tab > Location Location A

Quantity On Hand 1
Available 0
Committed 1 

Sales Order # 1> Transaction Date 1/5/2012 > Expected Ship Date 2/5/2012 > Location A > Quantity Odered 1 > Committed 1

Scenario 1 > Accounting Preference > Item Commitment Transaction Ordering > Order by Transaction Date

1. Create Sales Order # 2 > Enter Transaction Date 1/1/2012 > Expected Ship Date 2/10/2012 > Location A > Quantity Ordered 1 > Hit Save.
2. Sales Order # 2> Transaction Date 1/512012 > Expected Ship Date 2/10/2012 > Location A > Quantity Odered 1 > Backordered 1

Scenario 2 > Accounting Preference > Item Commitment Transaction Ordering > Order by Expected Ship Date

1. Create Sales Order # 3 > Enter Transaction Date 1/10/2012 > Expected Ship Date 1/10/2012 > Location A > Quantity Ordered 1 > Hit Save.
2. Sales Order # 3 > Transaction Date 1/10/2012 > Expected Ship Date 1/10/2012 > Location A > Quantity Odered 1 > Backordered 1

10.  Orders that will be committed to the new quantity to be receive will depend on the preference.

Scenario 1 > Accounting Preference > Item Commitment Transaction Ordering > Order by Transaction Date

• Navigate to Transactions > Inventory > Click Reallocate Items > Select Item XXX > Location A
• Commit = N > Order Date   Transaction Date 1/1/2012 > Expected Ship Date 2/10/2012 > Order No. 2 > Quantity Order 1 > Committed 0 
• Commit = Y > Order Date   Transaction Date 1/5/2012 > Expected Ship Date 2/5/2012 > Order No. 1 > Quantity Order 1 > Committed 1 
• Commit = N > Order Date   Transaction Date 1/10/2012 > Expected Ship Date 1/10/2012 > Order No. 3 > Quantity Order 1 > Committed 0
• Create a New Purchase Order > Location A >  Quantity Ordered 1 > Receive the Purchase Order
• Navigate to Transactions > Inventory > Click Reallocate Items > Select Item XXX > Location A
• Commit = Y > Order Date   Transaction Date 1/1/2012 > Expected Ship Date 2/10/2012 > Order No. 2 > Quantity Order 1 > Committed 1 
• Commit = Y > Order Date   Transaction Date 1/5/2012 > Expected Ship Date 2/5/2012 > Order No. 1 > Quantity Order 1 > Committed 1 
• Commit = N > Order Date   Transaction Date 1/10/2012 > Expected Ship Date 1/10/2012 > Order No. 3 > Quantity Order 1 > Committed 0

Note: Notice that the new quantity received is committed to Sales Order #2 because the priority is according to transaction date.

Scenario 2 > Accounting Preference > Item Commitment Transaction Ordering > Order by Expected Ship Date

• Navigate to Transactions > Inventory > Click Reallocate Items > Select Item XXX > Location A
• Commit = N > Order Date   Transaction Date 1/10/2012 > Expected Ship Date 1/10/2012 > Order No. 3 > Quantity Order 1 > Committed 1
• Commit = Y > Order Date   Transaction Date 1/5/2012 > Expected Ship Date 2/5/2012 > Order No. 1 > Quantity Order 1 > Committed 1 
• Commit = N > Order Date   Transaction Date 1/1/2012 > Expected Ship Date 2/10/2012 > Order No. 2 > Quantity Order 1 > Committed 0 
• Create a New Purchase Order > Location A >  Quantity Ordered 1 > Receive the Purchase Order
• Navigate to Transactions > Inventory > Click Reallocate Items > Select Item XXX > Location A
• Commit = Y > Order Date   Transaction Date 1/10/2012 > Expected Ship Date 1/10/2012 > Order No. 3 > Quantity Order 1 > Committed 1
• Commit = Y > Order Date   Transaction Date 1/5/2012 > Expected Ship Date 2/5/2012 > Order No. 1 > Quantity Order 1 > Committed 1 
• Commit = N > Order Date   Transaction Date 1/1/2012 > Expected Ship Date 2/10/2012 > Order No. 2 > Quantity Order 1 > Committed 0

Note: Sales Order # 3 is the first order to commit since it has the earliest Expected Ship Date among all orders.   

11.  Below are the enhancements related to this issue:

*Enhancement 92543 - Sales Orders>Allocate available inventory on Ship Date instead of on order entry (per Commit preference).  This particular enhancement request was submitted for accounts regardless whether or not Demand Planning Feature is True of False.

*Enhancement 235394 - Ability to automatically re-distribute quantity commitment based on Expected Ship Date either upon creation or edit of a Sales Order.