Key Difference Between Forecast and Confirm Sales Orders

Understanding the Difference Between Forecast and Confirm Sales Orders

In SAP, understanding the difference between forecast and confirm sales orders is crucial for accurate material planning and efficient production scheduling. Businesses rely on two major input types for planning: Planned Independent Requirements (PIRs), which are forecasts, and Sales Orders (SOs), which are customer-confirmed demands.

Forecast sales orders (PIRs) are predictions based on historical data and market analysis, while confirm sales orders are actual customer orders that need to be fulfilled. Analyzing how these two interact helps avoid overproduction, stock-outs, or missed delivery deadlines.

Using SAP MD73 – Display Total Requirements

The transaction MD73 – Display Total Requirements allows users to visually assess how forecasted demand aligns with actual sales orders. This is vital for Material Requirements Planning (MRP) analysis.

How to Use MD73:

1. Open transaction MD73.
2. Enter the Material or MRP Controller you wish to analyze.

Assignment Field Options in MD73

The assignment field in MD73 enables users to customize how SAP matches forecast and actual sales orders. This is where the real distinction between forecast and confirmed sales orders becomes clear.

Option	Purpose	Description
1	Match Forecast to Sales Orders	View only sales orders that match forecasted demand. Extra (unforecasted) sales are not shown.
2	Show Excess Sales Orders	See sales orders exceeding forecasted values, highlighting unexpected demand.
3	Combined View	Display all sales orders with a flag indicating whether they were forecasted or not.
4	Consolidated Report	Generate a report combining options 1, 2, and 3 for comprehensive insights.
Blank	Complete Sales Order List	Show all sales orders without any forecast-related indication.

Why This Matters in Supply Chain Planning

Choosing the right MD73 option depends on your planning goals:

Option 1 is ideal for planners who want to validate forecast accuracy.
Option 2 helps identify unexpected customer demands for rapid response.
Option 3 offers a balanced view of sales orders versus forecasts.
Option 4 is great for holistic planning.
Blank is useful for a raw, unfiltered view of all orders.

Conclusion

Understanding the difference between forecast and confirm sales orders allows supply chain professionals to optimize stock levels, enhance production accuracy, and improve customer satisfaction. SAP’s MD73 transaction provides a robust tool for analyzing these differences in detail, helping businesses stay agile and data-driven.

FAQs on Forecast vs Confirm Sales Orders in SAP

1. What is the key difference between forecast and confirm sales orders?

Forecast orders are predictive (based on anticipated demand), while confirm sales orders are actual customer requests.

2. Why is MD73 used in SAP?

MD73 helps display and analyze total requirements, comparing forecast vs actual sales.

3. How can I identify excess sales orders in MD73?

Use assignment option 2 to view sales orders exceeding forecast values.

4. Can I view both forecasted and non-forecasted orders together?

Yes, assignment option 3 shows all orders with flags for forecast status.

5. What does assignment field 'Blank' show in MD73?

It lists all sales orders without any forecast-related flags.

6. Which option is best for comprehensive analysis in MD73?

Option 4 offers a combined view of all available data points.

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