Recommended Order refers to the order quantity for a particular product that is recommended based on system-generated calculations. These calculations can be based on such factors as the quantity on hand, the quantity on order, anticipated future consumption, and historical usage quantities. The basic Recommended Order formula is [Need - Have]. The system calculates how much is needed, then subtracts the amount the location already has. The remaining quantity is the Recommended Order – the amount to order to cover what is needed.
Recommended Order quantities are displayed and can be used when creating master orders and vendor orders. Each of these screens has a "Use Recommended Order" button that allows the user to order the recommended quantity of each product. The quantity displayed in the ordering screens will never be negative. If the [Need - Have] calculation results in a negative number, the Recommended Order quantity shown will be a red zero (0).
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