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PRIO_V - Define Prioritizations

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In the following IMG activities, you can specify that you want material requisitions to be handled in the supply chain in accordance with their urgency.

If you activate requirement prioritization and set the relevant priorities, you can assign a requirement urgency in your purchasing and reservation documents at item level from which the system calculates the relevant requirement priority as the overall priority of a material requirement.

You can use requirement prioritization:

• In the purchasing process

• The requirement urgency and requirement priority are available at item level when you create, change, and display your purchasing documents; the requirement priority determined by the system is only displayed.

• For purchase orders, the requirement urgency and the requirement priority are converted to the delivery priority (IMG activity Assign Delivery Priorities). The delivery priority determined is displayed at item detail level.

• When purchase orders are created using the assignment list and when purchase orders are generated automatically, you can select purchase requisitions in accordance with their requirement priority.

• In the reservation process

• If an appropriate reservation is generated automatically when an order is created, the system assigns a requirement urgency and requirement priority to each reservation item. The system determines the prioritization taking into account the priority of the order (IMG activity Assign Order Priorities).

• The requirement urgency and requirement priority are available when you create, change, and display your reservation documents; the requirement priority determined by the system is only displayed.

• The requirement urgency and requirement priority are considered in the reservation list as selection and output fields. The same applies to the requirement priority in the pick list.

• In requirements planning

• The prioritization affects the external procurement process based on requirement urgencies and priorities in purchase requisitions and reservations. The requirement urgency and requirement priority are also assigned at item level for purchase requisitions that are generated when planned orders are converted. Prioritization does not take place for the requirements.

• Subsequent changes to the priorities do not result in requirements planning being carried out again for the relevant materials.

• The requirement priority determined on the basis of the Customizing settings is displayed in the stock/requirements list, in the planning result, and in the MRP list. However, the requirement priority is not displayed in the order report or in the pegged requirements display.

If you want to use requirement prioritization, activate it in the IMG activity Activate Requirement Prioritization.

1. The requirement priority is determined by the system from the combination of a requirement urgency group and an organizational priority. For this reason, start by defining individual requirement urgency groups and assign them one or more requirement urgencies (one-to-n relationship).
2. You can then define organizational priorities and assign them the required plant/storage location combinations. The use of organizational priorities is optional.
3. Define how the system is to determine the requirement priority by assigning precisely one requirement urgency group and one organizational priority to each requirement priority.
   If the requirement urgency group is to be the decisive factor for determining the requirement priority, do not enter any values for the organizational priority.
4. If the requirement prioritization of purchase orders is to be considered for deliveries, assign a combination of requirement urgency and requirement priority to each of the various delivery priorities. The requirement prioritization of purchase orders is converted to delivery priorities on the basis of this assignment.
5. If you want to consider the order priority in the relevant reservations, assign a requirement urgency to each combination of order priority and order type.

The requirement prioritization concept enables you to classify requirement urgencies in a very detailed manner, while enabling you to use a scale with just a few priority levels:

You want to classify your material requisitions in five categories on the basis of their urgency. Once you have activated requirement prioritization, define the requirement urgency groups A (highest urgency) to E (lowest urgency).

Then create requirement urgencies 1 (highest urgency) to 5 (lowest urgency) and assign these to the requirement urgency groups so that they are assigned a scale with five different values (from A - 1 to E - 5). Since the plant and storage location are not to affect your prioritization, do not define any organizational priorities.

Finally, define five requirement priorities (1-5), to which you assign the five requirement urgency groups. Do not assign organizational priorities.

If you now assign requirement urgency 4 in a purchase requisition, purchase order, or reservation, the system determines requirement priority 4 on the basis of requirement urgency group D.

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