Reserve Sales Budget

Manufacturers require a method to ensure that they can keep the long-term commitments they make to customers and avoid committing to capacity allocated to one customer from being consumed by another. It is especially critical that lower margin orders are not accepted on a provisional basis that are satisfied at the expense of higher margin business. This requirement is met by Sales Budget Reservations.

Sales budgets are represented in a hierarchical structure that is relevant for a certain period, a group of resources and certain products, markets and customers. The allowed dimension types against which budget definitions may be matched are customer and product.

Master Production Scheduling matches orders against existing allocations for like products and customers to determine availability and make assignments. The task of the Sales Budget Reservation functionality is to decide which order to move and by how much by finding the closest match in the hierarchy. In situations where there is more demand for sales than the available budget, customer orders (or order requests) are delayed. A higher level in the sales budget hierarchy releases unused budgets when a deadline for using the budget has passed. This budget release mechanism enables unused available capacity to be reassigned to other customers.