Managing the priority of Sales Orders
In the "Sell" screen, you can drag-and-drop Sales Orders (SO) to change their priority. Depending on whether you are Making to Stock or Making to Order, the priority of SOs has different effects in Katana.
If you are Making to Order (i.e. create Manufacturing Orders using the "Make to order" button in the "Sell" screen), it has an effect on the production "Schedule" in the "Make" screen. Read more below.
If you are Making to Stock (i.e. create Manufacturing Orders using the "Make to stock" button accessed via the global "+" sign), the priority of SOs affects Product Availability calculations.
Read more about Make to Stock versus Make to Order Manufacturing Orders.
Why is the priority of Sales Orders important?
1. In a Make to Stock situation, it affects the Product Availability for Sales Orders
SOs with higher ranks have a priority in booking the required products in inventory. This only applies to Sales Orders for which you have not created any Make to Order Manufacturing Orders. Read more about Product Availability statuses.
- You have created 3 Sales Orders for the same product, each of which requires 3 pcs of this product. You have not clicked "Make to order" button in the Production column for any of those Sales Orders.
- The "Inventory" list for this product shows that you have 4 pcs "In stock" and 3 pcs "Expected". Also, the "Committed" column shows 9 pcs, which are related to those 3 SOs (read more about "Inventory" list).
- The Sales Order with the highest rank shows Product Availability as "In stock" because quantity "In stock" is larger than required by this SO.
- The Sales Order with the next rank shows Product Availability as "Expected". Although quantity "In stock" is 4 pcs, SO with a higher rank has already reserved 3 out of 4 pcs and there is not enough left for this SO. However, 3 pcs have already been ordered from manufacturing and are expected to be completed in the future.
- The Sales Order with the lowest rank shows Product Availability as "Not available". Although quantity "In stock" is 4 pcs and "Expected" is 3 pcs, SOs with higher ranks have already reserved 6 out of 7 pcs ("In stock" + "Expected") and there is not enough left for this SO. In this case, you should Create new Manufacturing Orders for this product.
- If you change the priority of those Sales Orders, the Product Availability status will also change.
2. In a Make to Order situation, it enables managing the priorities in the production "Schedule"
Clicking on the "Make to order" button in the Production column for a Sales Order will create new Manufacturing Orders (MO) for all products required by the Sales Order. Those MOs will be directly linked to the underlying Sales Order.
The priority of MOs in "Schedule" is in sync with the priority of SOs in the "Sell" screen. Changing SO priorities will directly affect the "Schedule". The relative position of MOs (i.e. Make to Order Manufacturing Orders) that are linked to SOs will change according to SO priorities, and vice versa.
Note that the priority of Make to Stock Manufacturing Orders included in the "Schedule" will not be changed when reprioritizing Make to Order Manufacturing Orders.
3. It affects Material Availability statuses
Materials are committed to orders based on order priority. Read more about Material Availability.
Material Availability takes into account the material requirements of both Manufacturing and Sales Orders.
When you change the priority of Sales Orders, Material Availability is recalculated for orders based on their new priority.
How to change the priority of Sales Orders?
You can drag-and-drop a Sales Order to a new position in the "Sell" screen. Click on the icon on the left of a Sales Order in the "Sell" screen, then drag-and-drop it to a new position.