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, the changes in Sales Order priorities are automatically reflected in the production "Schedule" in the "Make" screen. Read more below.
If you are Making to Stock, the priority of SOs affects Sales Items 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 Sales Items 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 Sales Items availability statuses.
- You have created 3 Sales Orders for the same product, each of which requires 3 pcs of this product. You have not selected "Make" -> "Make to order" 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 Sales Items availability as "In stock" because quantity "In stock" is larger than required by this SO.
- The Sales Order with the next rank shows Sales Items 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 Sales Items 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 Sales Items availability status will also change.
2. In a Make to Order situation, it enables managing the priorities in the production "Schedule"
Clicking on "Make" -> "Make to order" button in the Production column for a Sales Order with missing Sales Items 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 Ingredients availability statuses
Materials are committed to orders based on order priority. Read more about Ingredients availability.
Ingredients availability takes into account the ingredient requirements (i.e. materials and subassemblies) of both Manufacturing and Sales Orders.
When you change the priority of Sales Orders, Ingredient 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.