13.3 Order Promising: ATP, CTP, Delivery Schedules, and Product Bundles

13.3 Order Promising: ATP, CTP, Delivery Schedules, and Product Bundles

Quick Answer: In Dynamics 365 Supply Chain Management, Order Promising establishes reliable delivery commitments through Delivery date control methods. Available-to-Promise (ATP) calculates future inventory availability based on on-hand stock and scheduled receipts within an ATP time fence. For manufactured products with insufficient inventory, Capable-to-Promise (CTP) triggers a dynamic Master Planning simulation across BOM components and capacity constraints. Complex deliveries are scheduled by splitting commercial lines into Delivery schedules, while kitted product offerings are fulfilled using Product bundles that explode components for picking and revenue recognition.

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1. Delivery Date Control Architecture and Methods

When a sales representative enters a sales order line, the customer specifies a Requested receipt date or Requested ship date. Dynamics 365 SCM uses Delivery date control to validate whether that date can be met, automatically calculating the Confirmed ship date and Confirmed receipt date.

Delivery date control can be configured at multiple levels (resolved hierarchically: Sales order line -> Released product -> Customer master -> Accounts receivable parameters):

• Navigation: Accounts receivable > Setup > Accounts receivable parameters > Shipments FastTab > Delivery date control.

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2. Available-to-Promise (ATP) Calculation Mechanics and Time Fences

ATP represents the uncommitted portion of an enterprise's inventory and planned supply that can be promised to customers on specific future calendar dates.

                    ATP TIME FENCE (e.g., 30 Days)
|--------------------------------------------------------|--------------------->
  Day 1: On-Hand (100) + PO (50) - SO (80) = ATP: 70
  Day 10: Expected PO Arrival (100) - Demand (40) = ATP: 60
  Day 25: Expected Production (50) - Demand (50) = ATP: 0  
  Day 35: Beyond Time Fence ---> Standard Sales Lead Time Promising Applies

The Mathematical Formula

• Current Period ATP: $\text{ATP} = \text{Physical On-Hand} + \text{Scheduled Receipts} - \text{Committed Issues}$
• Future Period ATP: $\text{ATP} = \text{Scheduled Receipts in Period} - \text{Committed Issues in Period}$

Backward and Forward ATP Calculation Logic

When an order line requested date cannot be satisfied:

1. Backward Calculation: D365 SCM searches backward from the requested delivery date to determine if excess uncommitted inventory existed on an earlier date.
2. Forward Calculation: If insufficient inventory exists on or before the requested date, the system searches forward through the calendar across all scheduled receipts (purchase orders, production orders, transfer receipts) until it identifies the earliest date where cumulative ATP satisfies the full order line quantity. The system then proposes this date as the Earliest confirmed ship date.

ATP Time Fence and Inclusion Parameters

Configured in Accounts receivable parameters > Shipments > ATP parameters:

• ATP Time Fence: The operational window (e.g., 30 days) within which the system queries active supply and demand. If the customer requests delivery beyond the ATP time fence, the system bypasses ATP calculation and calculates delivery dates using the item's standard Sales lead time.
• ATP Supply Inflows: Configurable flags allow including or excluding Planned purchase orders, Planned production orders, and Transfer orders.
• ATP Demand Outflows: Includes open sales orders, sales quotations (weighted by probability), transfer order issues, and production component demand.

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3. Capable-to-Promise (CTP) Master Planning Simulation

While ATP only checks existing supply and planned orders, Capable-to-Promise (CTP) answers: "If we do not have it in stock, when can we manufacture it?"

CTP Execution Workflow

1. Triggering CTP: On a sales order line for a manufactured item with insufficient stock, the delivery date control triggers CTP.
2. Dynamic Master Planning Explosion: D365 SCM runs an isolated, in-memory master planning simulation:
   • BOM Verification: Checks on-hand stock and lead times for all sub-assemblies and raw materials down through all Bill of Materials levels.
   • Capacity Check: Analyzes routing operations, verifying work center calendars, resource capabilities, and machine capacity constraints.
3. Date Promising Dialog: The system calculates the exact date the finished good can roll off the line, adds outbound warehouse dispatch lead time, and presents the Order promising date dialog to the user.
4. Accepting the Proposal: When the user accepts the proposed date:
   • The Confirmed ship date is locked onto the sales order line.
   • Master planning automatically creates Pegged planned production orders linked directly to the sales order line lot ID (InventTransId), ensuring materials are reserved for that customer.

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4. Delivery Schedules: Commercial Line vs. Delivery Lines

A Delivery schedule is deployed when a customer negotiates a bulk purchase agreement to secure tier-based volume discounts, but requires the physical inventory to be delivered in multiple staggered shipments over weeks or months.

Configuring a Delivery Schedule

1. Enter a sales order line for the total commercial quantity (e.g., 1,200 units of Item A-100 at the 1,000+ unit tier price of $80.00/ea).
2. With the line selected, click Sales order line > Delivery schedule.
3. In the Delivery schedule form, create child delivery lines specifying:
   • Quantity: E.g., Line 1 = 300 units, Line 2 = 300 units, Line 3 = 600 units.
   • Requested delivery dates: E.g., Month 1, Month 2, Month 3.
   • Delivery address: Allows shipping different installments to different customer regional distribution hubs.
4. Click OK.

+-------------------------------------------------------------------------+
| COMMERCIAL HEADER LINE (Parent): 1,200 units @ $80.00 | Non-Deliverable |
+------------------------------------+------------------------------------+
                                     |
         +---------------------------+---------------------------+
         |                                                       |
+--------v-----------------------+   +---------------------------v--------+
| DELIVERY LINE 1 (Child)        |   | DELIVERY LINE 2 (Child)            |
| Qty: 300 | Date: Oct 1         |   | Qty: 300 | Date: Nov 1             |
| Deliverable: Pick, Pack, Ship  |   | Deliverable: Pick, Pack, Ship      |
+--------------------------------+   +------------------------------------+

Operational Rules for Delivery Schedules

• Parent Commercial Line: The original order line becomes the commercial parent. It holds the total price, contract terms, and volume discount qualifications, but its deliverable quantity becomes zero. Warehouse work, picking lists, and packing slips cannot be generated against the parent line.
• Child Delivery Lines: All operational execution—inventory reservation, warehouse release, picking, packing slips, and customer invoicing—occurs strictly against the child delivery lines.

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5. Product Bundles and Component Explosion

Organizations frequently market multiple complementary products under a single commercial SKU (e.g., a "Workstation Bundle" comprising a PC Tower, Monitor, Keyboard, and Mouse) using Revenue Recognition Bundles or Commerce product bundles.

Bundle Architecture and Component Explosion

1. Parent Bundle Item: Configured as a released product with a Bill of Materials representing the kit components.
2. Sales Order Entry: When the sales agent adds the parent bundle item to a sales order line, D365 SCM detects the bundle definition:
   • Explosion: The system can explode the bundle into separate sales order lines for each component or retain the single parent commercial line with underlying component transactions.
   • Inventory Reservation & Picking: Warehouse picking lists and mobile device work instructions are generated for the individual physical components (the PC, the Monitor, the Keyboard) at their specific warehouse locations.
3. Revenue Recognition and Pricing Allocation:
   • Under Revenue Recognition parameters, D365 SCM supports Proportional revenue allocation based on the Standalone Selling Price (SSP) of each component.
   • Customer invoices display the agreed parent bundle price, while General Ledger postings allocate revenue accurately across the respective product category accounts in compliance with IFRS 15 / ASC 606.

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6. Implementation Scenarios and Common Exam Traps

[!IMPORTANT] Exam Tip — ATP vs. CTP Selection: On the MB-330 exam, if a question asks how to promise order delivery dates for an item that is manufactured in-house when stock is currently zero and lead times depend on raw material supplier shipments and machine availability, the answer is always CTP (Capable-to-Promise). Choosing ATP in this scenario is wrong because ATP only evaluates existing on-hand and already-scheduled orders; it cannot simulate new production capacity.

[!WARNING] Exam Trap — Parent Line in Delivery Schedules: Candidates often get tripped up when asked why warehouse release fails for an order line with a delivery schedule. Remember: The parent commercial line cannot be released or shipped. Warehouse release and picking must be executed against the child Delivery lines.

[!TIP] Exam Tip — ATP Time Fence Threshold: If an order line has requested dates beyond the ATP time fence (e.g., 60 days in the future when the fence is 30 days), D365 SCM does not display an ATP error. It seamlessly switches calculation mode to use standard Sales lead time.