Estimate Order System

Overview:

The Estimate Order system allows you to reserve stock and then draw on that reserved stock as often as necessary until the stock is depleted. The estimate order system is based in the Order Entry (OE) module. Rather than creating an inventory system to manage this, we have used the order system as a "virtual warehouse" to reserve the stock for a customer's upcoming orders. The vehicle through which you reserve stock is the estimate order, and you draw on this stock using draw orders.

In order to demonstrate how estimate order functionality can be applied, here is an "On Demand" example:

A major account has advised you that they want you to ship product to them every month for the next 5 months. The schedule is non-negotiable and you must guarantee the monthly shipments will be shipped on time with the appropriate quantity. By creating an estimate order and protecting the stock from normal inventory, you can enter draws on a monthly basis to meet the commitment made. As each draw is made, the estimate order is reduced by the draw order quantity.

Let's assume that we are supplier ABC and our major account BigBoxStore wants us to ship 10,000 units of product AIRFRESH on the first of the month for the next 5 months. We will create an estimate order of 50,000 units for BigBoxStore to ensure that we have the stock on hand in our warehouse. Over the next 5 months on the first of each month, we will make a draw of 10,000 units of AIRFRESH from this estimate order, each draw to be shipped immediately.

The estimate order in the example allows us to reserve all of the units of AIRFRESH for the upcoming BigBoxStore orders.

Here is a table that illustrates the estimate order system for the On Demand example:

Notes:
1. The Estimate Order generates the only warehouse movement for the product, i.e. draw orders do not affect inventory movement in the warehouse. They only affect stock values on the estimate order.

2. This example assumes that there is no regular inventory movement of AIRFRESH from January to June.

 
Filters/Date Controls

The process in the Estimate Order system is to create estimates which reserve stock, and then start drawing stock from the estimate order. As draw orders are entered, the Order Entry Rep must determine which estimate to pull the stock from. In order to effectively match draw orders to estimate orders, we have created two sets of controls which are applied to the estimate order.

• By setting filters/date controls on both estimate and draw orders, you ensure that only authorized draw orders pull stock from the matching estimate order. The filters/date controls also ensure that when a draw order takes stock from or puts stock back, the integrity of the estimate order is maintained. This keeps our virtual warehouse synchronized with the actions of the draw order(s).

The estimate order system utilizes the following two controls:

1. Filters
   For every estimate order you create, you must select a minimum of one filter. The following filters are available:
   1. Paying Office
   2. Customer
   3. Customer Ship To
   4. Customer PO
   5. Primary Sales Rep
   6. Campaign
   7. Trade Show

2. Date Controls
   The date controls used for the estimate order are the Date Required and the Cancellation Date. These two dates set the date range from which draw orders can pull stock from the estimate.

   The draw order's Order Date must fall between the estimate order's Date Required and Cancellation Date, regardless of the ship date on the draw order.

In order to demonstrate how filters can be applied, here is an example:

We have a product that our sales reps are going to use as a special promotion for customers of their choice. Each rep is allotted 1,000 units of a product and we have 3 sales reps in the company. We will use the estimate order system to allocate 1,000 units of our product to each of our 3 sales reps.

The product is GOLDBAR and we want to reserve 3,000 units of GOLDBAR for our sales force: 1,000 units per sales rep. We will create 3 estimate orders for 1,000 units each against our 'house' account, and we will assign the sales rep filter to each estimate order. This ensures that each of our 3 sales reps is allocated a maximum of 1,000 units of GOLDBAR. As each rep sells the product, a draw order is entered (with the same sales rep filter) against the associated estimate order and shipped immediately. When the sales rep reaches their maximum of 1,000 units, no further draws can be made against the estimate order.

The estimate orders in the example allow us to reserve and limit the appropriate amount of GOLDBAR products for each sales rep to use at his/her discretion.

Here is a table that illustrates the estimate order system for this example:

 
Modifications to Draw Orders

There are the 4 basic modifications that can be made to a draw order. The following list defines each modification and the resulting effect on the estimate order:

1. You can decrease the quantity on a draw order line (from 10 units to 5 units, for instance). The amount being reduced is put back on the associated estimate order.

2. You can delete a line on the draw order. The quantity from that line is put back on the associated estimate order.

3. You can increase the quantity on a draw order line. The increased quantity is taken from the estimate, up to the remaining quantity available on that estimate.

4. You can delete the draw order completely. All of the line quantities from the draw order are added back to the associated estimate order.

All of the modifications to the draw order made above are allowed prior to completing the invoicing cycle (i.e. even up to the point of IN41) or packing entry prior to invoicing, and affect the estimate order only.

Once a draw order has been invoiced, any product returns are handled in the regular manner (i.e. stock is put back into the warehouse). In the same way, once product from a draw order has been packed and invoiced via the Packing Station module, any product returns are handled through the normal processes.

Let's walk through an example to illustrate this:

We'll use our On Demand example where we are filling orders on a monthly basis for BigBoxStore. Let's say that we have created a draw order for 10,000 units of AIRFRESH for month 1, when BigBoxStore advises us that they only want 9,500 units of AIRFRESH for that month.

Our estimate order had 50,000 units available to us when we created the draw order. Once the draw for 10,000 units was created, the estimate order was reduced to 40,000 units. Now we have to reduce the draw order to 9,500 units of AIRFRESH. Here are the results:

1. The order quantity on the draw order is reduced to 9,500 units.

2. The available quantity on the estimate order is increased from 40,000 units to 40,500 units.

3. The warehouse remains the same, i.e. there is no inventory movement as a result of the change to the estimate order.

Here is a table that illustrates the effect of the revised draw order quantity:

 
Modifications to Estimate Orders

When you make changes to an existing estimate order, including deleting the entire order, the results vary depending on whether a draw or multiple draw orders have been made against the estimate order or not. There are 5 basic modifications that can be made to an estimate order. The following list defines each modification and the resulting effects:

1. You can decrease the quantity on an estimate order line (from 10 units to 5 units, for instance).
   • If there are no draw orders created against this estimate order, then the quantity being reduced is put back into stock in the warehouse.

   • If a draw order or multiple draw orders exist for this estimate order, then you cannot remove the quantity from the estimate that has already been assigned to the draw(s).

2. You can delete a line on the estimate order.
   • If there are no draw orders created against this estimate order, then quantity from that line is put back into the stock in the warehouse.

   • If a draw order or multiple draw orders exist for the line on the estimate order, then you cannot remove the line from the estimate order. You cannot delete the line on the estimate order until the draw orders associated with the estimate order line have gone through the system.

3. You can increase the quantity on an estimate order line and add a new product line.
   • The increased quantity is taken from the available quantity in the warehouse. If there is not sufficient quantity in the warehouse, the estimate order estimate will reserve the quantity that is available in the warehouse and the remaining quantity will go on back order.

   • If a draw or multiple draw orders exist for the line on the estimate order, you can add additional quantity to that line.

4. You can add a new product line to an estimate order.
   • You can add new product lines to an estimate order whether or not draws exist against the estimate the order. The product lines are new and cannot have any draw order lines created against them.

5. You can delete the estimate order completely.
   • If there are no draw orders created against the estimate order, then all of the line quantities from the estimate order are added back to the stock in the warehouse.

   • If a draw order or multiple draw orders exist for the estimate order, then you cannot delete the estimate order. You cannot delete the estimate order until the draw orders associated with the estimate order have gone through the system.

 
Order Management & Estimate Order System

When you are running Order Management (OM) and you use the estimate order functionality, only the estimate order runs through the allocation routine. The priority given to estimate orders depends on the setting of the 'Give Estimate Orders Highest Priority' flag in CC00/Order Entry/Order Mgmt/General Settings.

• If the check box is selected, estimate orders are given the highest priority during allocation. If you are using estimate orders, we recommend this setting.

• If the check box is not selected, estimate orders are given the same priority as all other orders.

Note: This topic assumes that the 'Give Estimate Orders Highest Priority' check box is selected.

As we have previously noted, draw orders take stock from the associated estimate order. Because OM is designed to allocate every order to stock, draw orders do not go through the OM routine. When you create a draw order against an estimate order, the product on the draw order is automatically flagged as 'guaranteed' without running the allocation routine OM30.

Draw orders can only draw from stock that is available (allocated) to the estimate order. If the estimate order is fully back ordered, the draw order cannot access that stock until the stock is allocated to the estimate order. Once the stock is allocated to the product on the estimate order, you can create the draw order to pull the stock from the estimate.

Let's walk through an example in which OM is running:

Our major account BigBoxStore wants us to ship 5,000 units of SUNSHINE on the sixth of each month for the next 4 months. We have created an estimate order with 20,000 units of SUNSHINE product in order to reserve the stock for BigBoxStore.

However, we only have 10,000 units of SUNSHINE in stock. Our estimate order has 10,000 shippable units and 10,000 back ordered units. When we allocate the estimate order in OM30, the system allocates the 10,000 units we have in stock and the remaining 10,000 need to be allocated when the stock arrives.

We have enough stock to create 2 draw orders (one for May with 5,000 units and one for June with 5,000 units).

Assuming that we receive 15,000 units of SUNSHINE on June 15th, and we allocate 10,000 units to our original estimate order, we will have enough stock reserved to fill our draw orders for July and August.

Here's a table that illustrates the interaction between the warehouse, estimate order and draw order in OM:

Estimate Order System Specifications

The Estimate Order system is a complex feature that affects the way in which a number of existing programs work. This section defines the specifications of the Estimate Order system in detail.

 
OE30 & Estimate Orders

Estimate orders reserve inventory for exclusive use by a draw order, based on a number of filters and date controls that are assigned when the estimate is entered in OE30. The draw orders with matching filters and date controls are then allowed to draw from the estimate order's stock.

Estimate orders relieve stock from regular inventory.

Estimate orders are never scheduled or printed since the purpose of estimate orders is to have draws made against them. It is the draw order that ships and invoices the product.

1. General folder:
   • You can create estimate orders for the Order transaction type only.

   • Customers with a Class of Trade set to 'WHS' or 'STO' are not eligible for estimate orders since transfers are not supported by the estimate order system.

   • The estimate order includes two sets of controls that determine the factors which will allow/control a draw to be made against an estimate. These controls are Estimate Order Filters and Date Controls.
     1. Estimate Order Filters - the 'Estimate Order Filter Utility' window opens automatically once 'estimate' is selected as the order type. The filters are used when a draw is made against an estimate; filters ensure that the draw and estimate are properly matched. This will ensure that only authorized, or matching, draw orders can pull stock from the estimate.

        You must select a minimum of one filter before you can close the Estimate Order Filter Utility window.

        Here is an example of the Estimate Order Filter Utility window:

        

        The Filter Utility is divided into 2 sections:

        1. Paying Office/Customer
        2. Customer Ship To/Customer PO/Primary Sales Rep/Campaign/Trade Show

        The filter combinations allowed are partially controlled by the selection made in the first section (Paying Office/Customer). The following table defines the filter combinations that are allowed when the Paying Office or Customer filter is selected:

     Selected Filter	Allowed Combinations:	Disallowed Combinations:
     Paying Office	Customer PO Primary Sales Rep Campaign Trade Show	Customer Customer Ship To
     Customer	Customer Ship To Customer PO Primary Sales Rep Campaign Trade Show	Paying Ofice

     You can also select any of the filters in the second section (Customer Ship To, Customer PO, Primary Sales Rep, Campaign, Trade Show) in any combination if neither the Paying Office nor Customer filter are selected from the first section.

     Note: When you select the Customer Ship To filter:

     • The Customer filter is automatically selected and disabled.
     • The Paying Office filter is disabled.

     The Estimate Filters button becomes available once the filter(s) have been set. This button launches the Estimate Order Filter Utility window. You can modify the filters on the estimate using this option or by re-selecting the Estimate order type until a draw is made against the estimate.

     The filtered fields are locked once a draw is made against an estimate order. The Estimate Filters button is available, but you can only view the filters selected for the current estimate order on the Estimate Order Filter Utility window.

     2. Date Controls - the date controls on the estimate order are the Date Required and the Cancellation Date fields. These dates are used to set the date range for which draws are allowed to pull stock.
        • The draw order's Order Date must be within the estimate order's Required Date and Cancellation Date regardless of the draw order's ship date.

        • If the Order Date on the draw is greater than or equal to the Cancellation Date on the estimate order, you cannot use the estimate. For example, the cancellation date on the estimate order is May 11, and the order date on the draw is May 12. The draw order cannot be processed against this estimate because the order date is considered invalid.

        • The default cancellation date of 2 years past the order can be modified on the estimate as required.

   • The Order Date and Required Date fields are locked once a draw is made against the estimate order.

   • If you change the Required Date on an estimate order header, the Required Date on the lines will not be affected.

   • Note: Once a draw is made against an estimate, the filtered fields, order date and date required fields remain locked. This holds true even when all of the draws against the estimate are no longer in the open order file. If filter changes are required, you can use the Copy Order feature to reset the filters on a new estimate order. This was done to maintain data integrity and control throughout the draw process.

   • You can only change the Order Type from 'Estimate' to any other order type before lines have been added to the order.
     • Once lines have been added to the estimate order, the Order Type cannot be changed. If you want to change the order type at this stage, you can use the Copy Order option and select the appropriate order type (with the exception of a Draw). The original order can then be deleted.

   • The Estimate field is only available when the Order Type is set to Draw.

   • The Generate PO option is disabled when Order Management is active. An estimate order cannot be assigned to a Dedicated PO because OM takes the sales order out of allocation when it is assigned to a Dedicated PO. Estimate orders must be included in the allocation at all times in order for Draws to be made against them.

   • The Maintain Operator Password/Privilege (CC03) settings that affect estimate orders:
     • If the Prompt Order flag is selected, and 'Order' is the default OE30 type, the regular message to change the order to a quote will not display when the order type is set to estimate.
     • If the Prompt Order flag is selected, and 'Quote' is the default OE30 type, you cannot select estimate as the order type in OE30. If you still want to create an estimate order, you must manually change the transaction type to order and then select estimate as the order type.

2. Lines folder:
   • Lot and Serial controlled products are not supported on estimate orders.

   • The same product can only be entered once on an estimate order. This aides in controlling the interaction between the draw and estimate order quantities. If you enter a product that already exists on the estimate order, the system will prompt you to edit the existing line. Note: This functionality overrides the 'Split Case and Inner' option set in Company Control Initialization (CC00/Order Entry).

   • A discount of 100% is automatically applied to all product lines on estimate orders forcing the order value to zero. This ensures that the AR is unaffected by estimate orders. Note: You cannot edit the discount field.

   • Only TAT codes that update inventory can be entered on the lines folder.

   • You cannot change the Required Date on individual lines of an estimate order. The required date is controlled at the order header level only.

   • Supplementary Charges and Comments added to order lines will be ignored on estimate orders. These line types have no effect on a draw made against the estimate.

   • You cannot enter negative order quantities on estimate orders.

   • You can modify existing estimate orders:
     1. Delete the estimate order – you can delete an estimate order once all draws against the estimate's product lines are processed and/or deleted. If any of the product lines on the estimate order have draws made against them (and are on an open draw order), then you cannot delete the estimate order.

     2. Delete a product line – you can delete product lines on an estimate order until a draw is made against the line. Once a draw is made against an order line, the line cannot be deleted from the estimate order.

     3. Decrease the quantity on a product line – you can decrease the quantity on a product line, however if that product line has a draw made against it, the system will not allow you to decrease the quantity to a value that is below the quantity on the draw order.

        For example, we have an estimate order with 10 units of AIRFRESH on it. A draw is created for 5 units of AIRFRESH, and then we are advised that the estimate order should be decreased to 3 units. When we attempt to modify the estimate order, we will receive the following error message: "There is a total of 5 units on Draws associated with this Estimate Order. You cannot enter less than the shippable units on all open Draws linked to this Estimate Order. OK".

        This ensures that the estimate and all draw orders associated with the estimate order remain synchronized.

     4. Increase the quantity on a product line/add a new product line – you can increase the quantity of an existing product line and add new product lines to estimate orders. If draws are made against the existing line on the estimate order, you can still increase the quantity on the estimate.

        There are two scenarios for increasing the product order quantities on estimate orders:

        1. Estimates with no draws on an existing product line or new product lines - when increasing the order quantity on an estimate, the back order and to ship quantities are updated according to the stock levels in the selected warehouse.

        2. Estimates with draws against an existing product line - when increasing the order quantity for an existing line on an estimate that has draws made against it:
           • The back order line is updated according to the stock levels in the selected warehouse.
           • The To Ship quantity is adjust according to the stock levels in the selected warehouse less the quantities on the open draw(s). For example, the original estimate is for a quantity of 10 units. A draw is made against the estimate for 2 units. The estimate now shows 10 units ordered, 0 units back ordered and 8 units to ship. If you increase the order quantity to 50 units and there are only 40 units available in the warehouse, the order quantity will display 50 units, the back order quantity will display 10 units and the to ship quantity will display 38 units.

3. Totals Folder:
   • Estimate orders can only use the "On Account" payment method.

   • The shippable value of an estimate order is always zero. All products on estimate orders have a discount of 100% so that the AR shippable/outstanding value is not updated. In addition, estimate orders are not included in the 'Total Number of Orders' for the customer in the ARRC (Record of Collection) file.

4. Copy Order Functionality:
   • On the Copy Order window, the 'Estimate' option has been added to the Order Type drop list. This allows you to copy an existing order to an estimate.

   • If a line on the original order has a TAT code that does not update inventory and you are copying that order to an estimate, the following message displays: "TAT codes that update inventory cannot be applied to Estimates and Draws. OK". The line with the TAT code in question is copied to the new order, but the TAT code is automatically changed to 'REG'.

   • If the original order includes lot and/or serial controlled products, the resulting estimate order will not include these products as lot/serial controlled products are not allowed on estimate orders. The new estimate order will be generated; however it will not include the lot/serial products.

   • If the original order includes products with negative order quantities, the resulting estimate order will not include these products as negative order quantities are not allowed on estimate orders. The following message displays: "Original order contained products and/or lines with negative Order Quantities. Negative Order Quantities are not allowed on Estimate orders and will not be copied to the Estimate order being generated. OK".

   • Estimate orders require filters to be set. The following message displays when an order is copied to an estimate order type: "Copy order will be creating an Estimate Order. Estimate Orders require Filters to be set. During the Copy order process the Filter will be defaulted to CUSTOMER. To modify the filters either select the Estimate Order Type or click the Estimate Filters button. OK".
     • Note: When the estimate order is created, you must manually update the filters, as required.

   • When you are creating an estimate order using the copy order utility, if the original order includes the same product on multiple lines, then the quantities for the product will be amalgamated into a single line.

 
OE30 & Draw Orders

A draw order can only be assigned to a single estimate order.

As draws are made against the estimate order, the shippable quantity on the estimate is reduced.

If the shippable quantity of a product line on the draw is reduced or deleted entirely, the shippable quantity is reassigned to the original estimate order. This applies whether the quantity on the draw order is reduced in OE30/IN41 or Sales Order Purge (OE87).

1. General folder:
   • Draw orders must be created against estimate orders from the same warehouse. If you select a different warehouse, the following message displays: "The selected Estimate order is for warehouse "A". Current warehouse is "B". OK".

   • When 'Draw' is selected as the order type, the Accept Backorders flag is set to 'N' (de-selected) and is locked, regardless of the setting of the 'Accept BO' field on the Customer Master (SU13) for the current customer. This is to ensure that reductions to the 'To Ship' quantity for a product on a draw order in Enter Inv/Direct Bills/Credits (IN41) or Packing Entry (PS30) result in the identical quantity being added back to the original estimate order.

   • If Order Management is active and Manual Allocation Override (OM30) is open/running, you cannot select Draw as the order type. You must wait until order allocation is complete before creating a draw order against an estimate. The following message displays when OM30 is running: "OM30 - Order Allocation is currently running. You cannot draw from an estimate order during Allocation. Wait until Order Allocation is complete. OK".

   • When you create a draw order, the Estimate field and associated query open. You can enter the estimate order number manually, or you can select an estimate order from the query.
     1. If you enter the estimate order number manually, you must enter a valid estimate order. Note: If OM is in use, and the estimate order has not been allocated, you will receive the following warning message: "Estimate Order selection has not been Allocated. You must run Order Allocation (OM30) first to use the selected Estimate Order. OK". For more information using Order Management with the Estimate Order functionality, click here.

     2. If the filters or dates from the selected Estimate do not match the draw order entered, the following message displays indicating the issues with the filtered fields from the selected estimate:

        

     3. If you use the query to select the estimate order, the Estimate Order Query window opens with a list of possible estimate orders based on the filters set for the draw order. For details on the Estimate Order Query window, click here.

   • If you create a draw with a future date, the shippable value of the lines will be unaffected, however the draw cannot be scheduled until the date is within the number of days for future order processing.
     • For draw orders in a non-OM environment, only the No. of days for Future Order in CC00/Order Entry will affect the release of the draw order. Note: You do not need to run Release Future Orders (OE64)/Future Order Release Audit Report (OE66) to release the draw order.

     • For example, the No. of days for Future Order field is set to 3 days in CC00/Order Entry. Today is May 8th and we have 5 orders entered with dates between May 8th and May 12th. Only orders with the Required Date set between May 8 and May 11 print when OE32 runs. On May 9th, the orders with the Required Date set to May 12 will schedule.

     • For draws with a future date in an OM environment, the draws will be released according to OM rules.

   • Once the draw is created and the first line is entered on the Lines folder, the following fields on the draw become locked:
     • Order Date
     • Date Required
     • Order Type
     • Estimate

     All fields affected by the filters set on the estimate order are also closed. For example, if you select Customer PO as a filter on the estimate, then the Customer PO on the draw order that matches the estimate order is closed.

   • Once a draw is selected as the Order Type you cannot change the Transaction Type to quote.

   • The Generate PO button is not available when creating and/or working with draw orders because all products on the draw originate from an estimate order.

   • CC03 settings affect draw orders:
     • If the Prompt Order flag is selected, and 'Order' is the default OE30 type, the regular message to change the order to a quote will not display when the order type is set to draw.
     • If the Prompt Order flag is selected, and 'Quote' is the default OE30 type, you cannot select draw as the order type in OE30. If you still want to create a draw order, you must manually change the transaction type to order and then select draw as the order type.

2. Lines folder:
   • Only products from the associated estimate order can be applied to the draw order.
     • When you select the query on the Product field, the Estimate Order Product query opens. This window displays products on the estimate order associated with the current draw along with the product description and quantity available.

   • When you enter valid product, the Avail field displays the quantity currently available on the estimate order.

   • You can only enter a product on one line of a draw. If you enter a product that already exists on the draw, the following message displays: "This Product is already on this Sales Order at Line 00x. Do you wish to continue? Yes/No". If you select Yes, the message window closes and the line is recalled allowing you to modify the order quantity. If you select No, the message closes and the product field on the order is cleared.

   • You cannot enter negative values in the Quantity Order field.

   • You cannot enter or select products from the estimate that have a quantity of zero.

   • Back orders are not allowed on draw orders. The backorder field is not available.

   • You can only enter TAT codes that update inventory for products on the lines folder. If you select a TAT code that does not update inventory, you will receive the following message: "TAT codes that do not update inventory cannot be applied to Estimates and Draws. OK".

   • The Required Date on the More Details window is disabled. Dates are set at the header level for draw orders.

   • As the product is added to a draw, the Ship To quantity for that product on the estimate order is reduced.

   • If the Ship To quantity for a product on the draw is reduced, then the Ship To quantity on the estimate is increased.

   • If the product you are attempting to add to the draw is currently active (i.e. currently being input on the lines folder) on another draw for the same estimate order in another OE30 session, you will receive the following message: "The Product on the selected Estimate is currently being applied to a Draw in another session of OE30. You can update this product once the Product is released in the other session. OK".

3. Totals folder:
   • No changes have been made to this folder for draw orders. All charges and payment methods for the draw function in the same manner as any other order type, except estimates.

 
Models/Assembled Sets

Models and assembled sets can be added to estimate and draw orders. Note: Models include both fixed and variable types.

• When you create an estimate order that includes a model/assembled set, the estimate reserves the stock for the current model/assembled set. As a result, the structure of the model/assembled set on the draw order must be the same as the structure on the estimate.

• The order quantities on a draw cannot exceed the estimate order's header or component quantities.

• Once you link a draw to an estimate, the model/assembled set header line on the draw order cannot be deleted.

The following section defines how assembled sets and models work with both estimate and draw orders:

1. Estimate Orders & Assembled Sets:
   • You can create an estimate order with the following types of assembled sets:
     • Header only
     • Components only
     • Combination of header and components

   • The structure of the assembled set is established on the estimate order.

   • Shippable quantities for the header and components are established on the estimate order.

2. Draw Orders & Assembled Sets:
   • When you create a draw order and enter an assembled set, the component window does not display.

   • If the header/components are fully back ordered on the estimate, you cannot create a draw for the assembled set. In this case, there is no To Ship quantity on the estimate order.

   • When the estimate is based on the set header, the components cannot be entered for the set on the draw order. If you attempt to enter a value in the To Ship from Components field on the draw, OE30 automatically moves the quantity back to the header.

   • When the estimate is based on components, the header quantity cannot be entered for the set on the draw order. If you enter a quantity in the To Ship field on the Lines folder, that quantity is automatically added to the components as long as it is not greater than the component quantity on the estimate order.

   • When an estimate is based on both the set header and components:
     • If the order quantity is less than or equal to the order quantity on the estimate, the system will apply the draw order quantity to the header first and when the header order quantity is exhausted, then the system will apply the draw order quantity to the components. For example, the estimate order includes an assembled set with a quantity of 5 from the header and 5 from components and the operator enters an order quantity of 7 on the order line. The system will apply a quantity of 5 to the header and 2 to the components.

     • If the order quantity on the draw is less than or equal to the quantity entered for the header on the estimate, then the quantity will be applied to the header.

     • If the order quantity on the draw is greater than the combined header and components on the estimate order, then both the header and components are automatically applied to the draw. Note: If OM is active and the 'Allocate from Components' option is not selected on the General Settings folder within the Parameters options in CC00/Order Entry, then this point is irrelevant because OM will only allocate to the header.

3. Estimate Orders & Fixed/Variable Models:
   • If the model includes serialized or lot controlled products (in the model itself or in a sub-assembly), you cannot enter the model on an estimate order. This holds true even if the serial/lot controlled product is not a mandatory part of the model and can be omitted from the model.

   • Once a variable model is entered on a draw, you cannot modify the components on the estimate order. For example, if there is a component on a model that is not fixed and may or may not be included in the model, you cannot change the quantity required for the component; the "Modify any model components?" message does not display. This ensures that the estimate and draws made against the estimate remain synchronized.

4. Draw Order & Fixed/Variable Models:
   • When a model is entered on the Lines folder in OE30, the Component Selection window does not display.

   • If any of the components for a model on an estimate order are fully back ordered, then you cannot add the model to a draw created against the estimate.

   • If the model on an estimate order is not completely shippable, then you cannot add the model to the draw created against the estimate. For example, if a component on a model requires a quantity of 2 units, but only 1 unit is shippable, then you cannot use the model on the draw. You must wait until the shippable quantity for the component is 2 (or greater) before you can add the model to the draw.

   • You cannot modify the components of a variable model on a draw order. If the header is recalled, the normal message to modify the components does not display. This is enforced because the estimate reserves the stock based on the component configuration entered on the estimate.

   • If a new configuration is required for the components of a variable model, then a new estimate must be created.

 
Order Management

Only estimate orders run through the Order Management (OM) allocation routine. The estimate order system is designed so that draw orders take stock from the associated estimate order. Because OM allocates every order to stock, draw orders do not go through OM.

• When the 'Give Estimate Orders Highest Priority' flag in CC00/Order Entry/Order Mgmt/General Settings is selected, estimate orders are given the highest priority (000) when OM30 runs. (When this flag is not selected, estimate orders are given the same priority as all other orders. Note: We recommend that this flag be selected when using estimate orders.)
  • Normally when a product on a specific order line is partially guaranteed to any available resource, the rest of the order line's order priority is forced to 999 to free up stock for allocation to other orders. In the case of estimate orders, this does not occur. The priority of estimate orders is always 000. If an estimate order line is partially guaranteed, the priority for the un-guaranteed portion remains at 000.

• Estimate orders must be allocated via OM30 before draw orders can be made against them.

• Estimate order lines are not automatically guaranteed. As with regular OM rules, guarantees are managed by the user.
  • Note: When a draw is made against an estimate order, the lines on the draw are automatically guaranteed to the estimate. (By drawing on an estimate, the stock is automatically guaranteed.) As the draw takes stock from the estimate order, the OMAL (Product Allocation) file is updated to guarantee stock.

• If the quantity on a draw needs to be adjusted, you make the adjustment in OE30 and not in OM30. Note: You cannot select the draw order in OM30 to increase, decrease or remove guarantees. The guarantee is automatically adjusted to match the ordered/allocated quantity.

• When a draw is recalled in OE30, you can add or modify lines on the draw. The standard OM de-allocation message is not displayed.

• Estimate orders are excluded from reallocation in OM30 when draws are made against them.

• If OM30 is running or is open for the same warehouse in which OE30 is running, then you cannot create a draw for an estimate.
  • The following message displays when you attempt to create the draw order: "OM30 – Order Allocation is currently running. You cannot draw from an estimate order during Allocation. Wait until Order Allocation is complete. OK".

  • When you click OK to clear the message, the Order Type reverts to the order type assigned to the customer in SU13..

• Once an estimate order is satisfied, i.e. no more quantities are available to draw against, and there are no back orders or guarantees left on the estimate order, the allocation is removed.
  • If there are any changes to the draws made against the associated estimate order or to the estimate directly (for example, more stock added to the estimate order), you must run the allocation routine before the estimate can be used against any draws.

• When a draw is made against an estimate the Ordered and Allocated quantities in OM30 are reduced by the draw.
  • For example, you have an estimate order with an order quantity of 10 units and a shippable quantity of 10 units. You make a draw against the estimate order for 3 units. The Ordered and Allocated quantities on the estimate are reduced by 3 units to display 7 units.

• The Generate PO button in OE30 is inactive for estimate orders when OM is active. Estimate orders can never be associated with dedicated POs, because if you generate a PO for an order, the order is taken out of allocation. When OM is active, estimate orders need to be allocated all of the time.
  • If you need to apply a PO to an estimate order, you can do so by guaranteeing the estimate to a PO in OM30.

• Only stock allocations against the estimate order are transferred to the draw. The transferred stock allocations on the draw are automatically guaranteed. Back ordered quantities on the estimate order are not transferred to the draw (whether the lines are allocated to on-time or late POs, in-transits or transfers). The backordered quantities on the draw will be allocated as any regular order line when the next allocation runs. (These are regular allocation rules.)

• The 'Order Type' field in IC45/C5-Stock Allocations includes 'estimate' and 'draw'.

• The 'Order Type' field in OM30 includes 'estimate' and 'draw'.

 
Company Control Initialization (CC00)

• CC00/Order Entry:
  • The Split Case and Inner flag is used to split a product line into two lines if the quantity entered is not a multiple of the SKU value for the GTIN flagged as the default cost record in Maintain Purchasing Information (PO13). For estimate orders the line can never be split, i.e. a product can only be entered on an estimate once. If this flag is selected in CC00, it will have no effect on estimate or draw orders.

• CC00/Order Entry/Order Mgmt/General Settings:
  • The Give Estimate Orders Highest Priority check box is designed to give estimate orders the highest priority during allocation in order management. We recommend that this check box be selected if you are using the estimate order system.

 
Display/Diagnostic, Entry and Report Programs

Estimates and draws are designed as a stock reservation system and not as a price setting system. The price that is set in OE30 for the estimate will not affect the price that is set on the draw order. Normal best price logic will always prevail and if you want to offer special or contract pricing to support the estimate quantities the customer has committed to, then use normal best price logic on the draw order.

The following programs offer 'Draw' as an option in the Order Type field:

• Maintain Commission Rates (SA02)
• Maintain Price Lists (IM18)
• Maintain Future Price Lists (IM21)
• Maintain Discount Limits (OE04)

'Estimate' does not appear as an option in the Order Type field because estimates are never shipped or invoiced.

• Display/Diagnostic programs:
  1. Display Product Availability (IC45)
     • The Estimate field in the header section includes the accumulated On Reserve + BO quantity for estimates only.

     • The estimate's To Ship quantity is included in the On Reserve total.

     • The estimate's BO quantity is included in the On B/O total.

     • 'Draw' and 'Estimate' are included in the Order Type on the following IC45 folders:
       • C5 – Stock Allocations
       • I1 – Orders/Quotes
       • I2 – Invoice Lines by Customer
       • I3 – Future Orders

  2. Display Orders (OE45)
     • The Estimate Filter button opens the Estimate Order Filter Utility window. This window displays the filters set for the current estimate order.

     • This option is only available when the order entered is an estimate order.

  3. Customer Inquiries (SU45)
     • 'Draw' and 'Estimate' are included in the Order Type on the following SUC45 folders:
       • I1 – Orders/Quotes/Invoices
       • I2 – Invoice Lines by Product
       • I4 – Paying Office Orders/Quotes/Invoices

  4. Order File Diagnostics
     • Since estimates are not scheduled/printed, the status for Auto printing will not be captured by this program thereby eliminating the possibility of the estimate order ever being scheduled and printed via Activate Auto-Print Processor (OE33).

• Entry Programs:
  1. Royalties (SA05, SA57, SA58)
     • All orders based on the 'Draw' Order Type will use the same rate as 'regular'.

  2. Display Cancelled Orders (OE46)
     • The Order Type drop list on the Generate New Order window includes the following order types:
       1. Regular
       2. Sample
       3. FOB
       4. Estimate

     • You cannot generate an estimate order if 'Quote' is entered in the Generate field.

     • When an estimate order is generated from a cancelled order, the filter on the estimate order automatically defaults to 'Customer'. If the original order contained lot and/or serial controlled products, they will be removed from the new estimate order. If the original contained any negative order quantities, they will also be removed from the new estimate order.

  3. Enter Invoices/Direct Bills/Credit Notes (IN41)
     • Both 'Estimate' and 'Draw' display in the Order Type drop list on the General folder, however you cannot select either option in IN41.

     • When a draw is invoiced, the Accept B/O, Order Type and Estimate fields are unavailable.

     • All filtered fields on the draw are inaccessible.

     • You cannot add new products to a draw in IN41. The product input field is not available on the Lines folder.

     • You can decrease the To Ship quantity on the Lines folder when invoicing a draw. In this case, the cancelled units are sent back to the associated estimate order once the invoice cycle is complete.

     • You cannot increase the To Ship quantity when invoicing a draw. If you want to ship additional units of a product, you must create a new draw.

     • You can add freight and comments to the invoice.

  4. Sales Order Purge (OE87)
     • The Order Types to Purge section includes 'Estimate' and 'Draw' as options.

     • If you select the draw option and do not select the estimate option for the purge, the To Ship quantities from the draw are returned to the associated estimate order. The following files are updated: OBBH (Order Bookings Header) and OBBD (Order Bookings Detail).

     • If you select the estimate option and do not select the draw option for the purge, only estimate orders without open draws against them will be purged. The remaining shippable quantities from the purged estimate orders are returned to normal stock. The OBBH and OBBD files are not updated as estimate orders do not update these files.

     • If you select both the estimate and draw options for the purge, all draws for the selected 'Range of Order Dates to Purge' will be purged, but only estimate orders that are not associated with draws will be purged. In order to delete the estimate orders that were previously associated with draws, you will be required to run OE87 again. Any shippable values remaining on the estimate orders will be returned to regular inventory.

  5. Update Order Values for Discount (SU61)
     • The Order Types to Analyze section includes the 'Draw' option. Estimates are not included in this section because the shippable value on an estimate order is always 0.

     • Running SU61 updates Order Value for Discount Check (OE10).

  6. Review Flagged Orders (OE62)
     • The Order Type now includes 'Draw' orders. Draws are updated in the same manner as regular, FOB and sample order types.

     • Estimate orders are not included in OE62.

• Report Programs:
  1. Daily Booking Report (OE38)
     • This report does not include estimate orders. (Bookings are done against the draw order.)

  2. Print Open Order Report (OE50)
     • The Order Type includes 'Estimate' and 'Draw'.

  3. Print Order Hold File (OE53)
     • The Order Type includes 'Estimate' and 'Draw'. Note: The holds applied to an estimate order do not affect the draw.

 
Packing Station (PS30/Packing Entry)

• You can ship a quantity that is less than or equal to the shippable quantity on the order line of the draw, but you cannot ship a quantity that is greater than the shippable quantity. If you want to ship more than the shippable quantity on the draw order, you must create a new order.

• You can ship the products that are on the draw order, but you cannot add products to the shipment that are not on the draw. If you want to ship additional products, you must create a new order.

• You can short ship items on a draw order. Draws do not accept back orders once the invoice is generated and run through the invoicing cycle. Back ordered quantities will be removed from the draw order and put back on the associated estimate order.

• Draw orders must be packed separately. If the carton control field is set to 'Multi Order', you still cannot pack draw orders with any other order types. This restriction is enforced because you can over pack all other order types, but you cannot over pack a draw order.
  • When the first order is entered or scanned, the system determines whether the order is a draw order or another type of order.
  • If the first order is a draw, then no other order types can be packed in the current packing session.
  • If the first order is anything but a draw order, then a draw order cannot be packed in the current session.

 
Order Bookings

1. OBBD (Order Bookings Detail), OBBH (Order Bookings Header) and OBAH (Actual Sales Rep Bookings):
   • Only draw orders affect these tables.

   • Estimate orders do not affect Order Bookings because estimates are considered to be a virtual warehouse to protect inventory for a specific draw scenario. Estimates should never hit the bookings.

2. ICBU (Booked Unit History):
   • Only draws affect ICBU.

• The purpose of the estimate order is to reserve the stock in a "virtual" environment, not in the physical warehouse. Stock for products is not guaranteed on the estimate order and there is nothing that prevents the stock on an estimate order from being taken by other orders if the stock is reduced in the warehouse by over picking or if the stock is guaranteed to non-estimate orders in OM30.

• The warehouse processes must work in conjunction with the order entry system in order for estimate orders to work effectively.

Can I link a PO in PO40 to an Estimate or Draw order?

• No, if you try to link a PO in PO40 to an estimate or draw type sales order, you will receive the following error message: "You may not link Sales Orders with the Order Type Estimate or Draw to Purchase Orders. OK".