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planned order is only used within the company and it is not binding. The planned order is used to identify how the required material is to be procured.
In general, planned orders are created automatically during a planning run.
For in-house production, the planned order can be converted into a production order. For external procurement, the planned order can be converted into a purchase requisition.
You have two possibilities to convert the planned orders into purchase requisitions:
Individual conversion
Collective conversion
In collective conversion, you can select specific planned orders which have a start date within the opening horizon.
The opening horizon is the time available for the MRP controller to convert a planned order into a purchase requisition or a production order. The horizon key in the material master record controls the opening horizon.
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