The Demand Hit Definition control maintenance record defines how the system calculates hits when running the update demand program. The system bases hits on the entries on a sales order. There are three choices:
The system also uses this parameter to recalculate hits when there are credits and returns.
Once set, the system does not further adjust the demand hit definition. Therefore, choose the variable based on how your company runs its business.
The demand hit definition affects how the system calculates exceptional sales and usage for items split amongst multiple orders. More exceptional sales are possible when calculating hits on a per order basis, than when set to the generation or line item level.
The system calculates hits on a "per sales order" basis, regardless of how or when the items are shipped, or how the material is separated on the order.
For example, a customer purchases 45 lengths of 1-1/2" x 10' PVC pipe and schedules delivery on three different dates (or the system schedules three different dates due to back ordering). In this example, 15 lengths are sold on three generations of sales order S1267176 (S1267176.001, S1267176.002, and S1267176.003).
Because the Demand Hit Definition is set to "order," the system counts 1 hit of 45 items. If 10 of the 15 items ordered on S127176.003 are returned, the system would still count 1 hit, but now of (45-10=35) 35 items.
More exceptional sales are possible when calculating hits on a per sales order basis than when using the "generation" or "line item" level.
Now, consider the effect of the Demand Hit Definition of "order" on exceptional sales. If the Excpt% field for the 1-1/2" x 10' PVC pipe product was 50%, and the second largest sale to date happened to be 20, then the sale of 45 would be considered exceptional.
The system calculates hits on a "per sales order generation" basis. Each scheduled shipment or generation produces a separate hit occurrence. Credits and returns apply to the sales order generation.
Using the previous example of Sales Order S1267176, the system would now count 3 hits of 15 items each.
Now, consider the effect of the Demand Hit Definition of "generation" on exceptional sales. With the Excpt% field for the product at 50%, the largest sale is 20 and the second largest sale happened to be 15. Twenty is not 50% or more than 15, so there is no exceptional sale excluded.
The system calculates hits on a "per line item" basis. Each line item produces a separate hit occurrence.
For example, a customer requests a blanket order, separated by room or tool crib, and shipped on different dates. Product A appears 10 times on Sales Order S0001234.001, 3 items per occurrence. The system counts 10 hits of 3 items each. If one "room" worth of Product A was returned, the system would count 9 hits of 3 items per occurrence.
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