Introduction
In Fashion industry ordering process always aligned with the particular season and for order fulfilment purchasing team will always have a set of dates by when order should reach them to supplier. If the orders do not reach within the predefined date, then the order could be rejected or acceptance/processing might be postponed to future date.
Cut-off date is the date by when you must place a procurement order with a vendor, so that delivery can follow the corresponding staging date.
Based on different seasons, vendor delivery time and purchasing (internal) processing time varies. During the start of the season when demand is high, delivery time and processing time could be different compared to end of season.
This is the new functionality introduced by SAP with S4 HANA and to use this functionality authorization object FSH_COD to be assigned user role.
Cut-off Date Calender Usage and Features
This new functionality used in procurement process mainly in Purchase Requisition. when the purchase requisitions are directly created from sales orders or when we create purchase requisitions manually, the system determines the delivery date based on the planned delivery days maintained in article master. If you have maintained cut-off details for the article, plant, calendar group, and segmentation value combination in transaction FSH_COD, the system determines the delivery date based on cut-off date details instead of the planned delivery days.
During availability check, the system determines the delivery date based on the replenishment lead time maintained in article master. If you have maintained cut-off details for the article, plant, calendar group, and segmentation value combination in transaction FSH_COD, the system determines the delivery date based on cut-off date details instead of the replenishment lead time.
In the procurement proposals created by Materials Requirement Planning (MRP), the system determines the delivery date based on the planned delivery days maintained in article master. If you have maintained cut-off details for the article, plant, calendar group, and segmentation value combination in transaction FSH_COD, the system determines the delivery date based on cut-off date details instead of the planned delivery days.
We can maintain cut-off date details for an article, plant, and segmentation value combination. During the following processes, the system uses the cut-off date details to determine the delivery date of the ordered items:
Material requirements planning
Availability check
Purchase-to-order procurement
Creating purchase requisition using third-party order processing
Creating purchase requisition manually
For articles that are relevant for segmentation, the system determines the cut-off date in the following order of priority and accordingly calculates the delivery date:
- Plant / Article / Segment
- Plant / Article
- Plant / Calendar Group / Segment
- Plant / Calendar Group
- Plant
For articles that are not relevant for segmentation, the system considers the cut-off date in the following order of priority and accordingly calculates the delivery date:
- Plant + Article
- Plant + Calendar Group
- Plant
System Setup: Configuration
To maintain Cut-off Calender details system generates unique ID if we have not provided external ID. To generate Cut-off ID we need to maintain Internal No. range details in customization.
Logistics General--> SAP Fashion Management--> Cross-Applications--> Cut-off Date Number Ranges for Cut-off ID.
In this Customizing activity, you define the number range intervals for cut-off ID.
Use number range object FSH_CUT. The Number range number "01" is only supported for managing number range intervals for cut-off ID.
Maintaining Cut-off Calendar and Testing
We can use transaction FSH_COD to maintain (create, modify, delete) cut-off date details. During planning process, the system uses the details to calculate the final delivery date of the order item.
Maintain Cut-off date Calender
- Cut-off Date: Indicates the date by when we must place an order with vendor/Supplier
- Release Date: Date by when Purchase requisition should convert to Purchase Order
Sales Cut-off date: Indicates the date by when you can process the sales orders created after the previous sales cut-off date
Staging time: Indicates the time from latest date of ordering until provision of article by the vendor
Transportation chain: Indicates the itinerary using legs from the vendor to the distribution center or to the store
Dispatch method for transportation chain: Indicates whether this is a normal purchase order or a third-party business, or if a faster mode of transport (express) is to be used
Transportation lead time: Indicates the lead time to transport the article from your vendor to your distribution center (in calendar days) Note: You can enter transportation chain or transportation lead time.
Delivery Date: Indicates the date by when the goods are received from the vendor. The system uses the following formula to calculate the date to deliver the goods: Delivery date = Cut-off date + Staging time + Transportation lead time (or transportation chain)
When we create Purchase Requisition for plant and materials we maintained , system automatically calculates delivery date.
Delivery Date in Purchasing document
Cut-off date details are stored in table
- FSH_CUT_OFF_HDR - Cut off header table
- FSH_CUT_OFF_ITM - Cut Off - Item details
Conclusion
Cut-off Calender is new standard functionality with S4 HANA Fashion business and this will help business to maintain delivery dates in-line with Season and order cut-off dates. This functionality will also provide clear date usage and understanding between purchaser and Suppliers.
Click here to know more on Cut-Off date Calender
Click here to know more on S4 HANA Fashion blogs on Application Variant in S4 HANA , Characteristic Values Conversion and Distribution Curve application
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