@Vindya Wijesinghe ,

Next level demand (N) is a planning method. Parts with this planning method are not processed by MRP. Requisitions for parts with this planning method are not included in MRP until they are converted into actual shop orders.

Parts with this planning method support planning with the pull principle. This means that the demands created by a customer order are processed as soon as the order is processed. If there is not enough of the part in inventory, a shop order or purchasing requisition is created.

This planning method makes sure that no parts are manufactured or purchased unless there is an actual demand for the part.

Test Flow:

Choose Planning Method N for the inventory part.

Create Customer order and add the part.

Release the customer order.  

Shop order /Purchase Requisition are created.

Regards,

Mithun K V