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1. The Core Concept of Distribution Orders

A Distribution Order in IFS Cloud is a specialized supply object used strictly for moving inventory parts between two sites. While it might seem similar to a Requisition or a Transport Task, it is significantly more powerful because it integrates the Procurement and Sales modules seamlessly.

When a planner at the Demand Site (e.g., a warehouse running low on stock) raises a need, they create a planned Distribution Order. At this stage, it is merely a signal—a "soft" request. However, once this order is Released, the system performs a massive orchestration task:

• It checks the Internal Customer definition to see who the Demand Site "is" from the perspective of the Supply Site.
• It checks the Internal Supplier definition to see who the Supply Site "is" from the perspective of the Demand Site.
• It automatically creates a Customer Order (CO) on the Supply Site.
• It automatically creates a Purchase Order (PO) on the Demand Site.
• It hard-links these two orders together.

This "Triad" of records (DO, CO, PO) remains synchronized. If you change the quantity on the Distribution Order, the CO and PO update (subject to status restrictions). This eliminates the need for phone calls or emails between site planners to adjust quantities or dates.

2. Prerequisites and Configuration

Distribution Orders will not function "out of the box" without specific master data setup. This is often where implementations fail. The following hierarchy of data must exist:

The "Quick Registered Part" Feature

Setting up thousands of parts for distribution can be tedious. IFS Cloud includes a feature to ease this. If the Inventory Part exists on both sites, but the Purchase or Sales parts are missing, the system can attempt to create them automatically upon the release of the Distribution Order. These automatically created records are flagged as Quick Registered Parts. While helpful for testing or low-volume scenarios, it is best practice to fully configure your parts to ensure correct tax codes, delivery terms, and pricing are applied.

3. Sourcing and Automation

The true power of Distribution Orders lies in their ability to be generated automatically by planning engines. A planner rarely needs to manually enter a DO unless it is for an emergency spot-buy.

Material Requirements Planning (MRP)

When MRP runs on the Demand Site, it sees a shortage. It looks at the Supplier for Purchase Part record. If the primary supplier is an Internal Supplier and the Multi-site Planned Part checkbox is enabled, MRP will generate a Planned Distribution Order instead of a Purchase Requisition.

This is a critical distinction. A Purchase Requisition requires a conversion step to become a PO. A Planned Distribution Order is already one step closer to execution. It appears in the "Distribution Orders" window with a status of Planned.

Distribution Allocations

For "Push" scenarios (where a central warehouse wants to push stock out to branches regardless of their current demand), Distribution Allocations are used. You define a template (e.g., "Send 10% of stock to London, 20% to Paris"). When you execute this allocation, the system spawns multiple Distribution Orders.

Dynamic Order Processing (DOP)

In complex Make-to-Order environments, DOP uses Distribution Orders to move pegged material. If a Top Level Part is being built in Site A, but a sub-assembly is built in Site B, the DOP structure's "Capability Check" will generate a Distribution Order to move that sub-assembly. These orders are often released automatically to preserve the tight timeline of the DOP structure.

4. The Lifecycle and Execution Flow

Understanding the status flow is essential for troubleshooting.

The "Stop" Mechanism

A unique feature of Distribution Orders is the Stopped status. Unlike a PO that might just fail to save, a DO will save itself but enter a "Stopped" state if it encounters errors during the auto-release process (common in MRP runs).

This often happens due to Coordinators. If a user manualy enters a DO, their coordinator ID is used. If MRP creates it, the system looks for a default coordinator on the Supplier record. If none is found, or if the resulting CO/PO fails validation (e.g., Customer is Credit Blocked), the DO stops.

Administrator Tip: Regularly check the "Release Stopped Distribution Orders" window. It is the "graveyard" of failed internal supply chain movements.

5. Strategic Advantages vs. Other Methods

Why use Distribution Orders instead of standard Purchase Orders or the newer "Shipment Orders"?

6. Advanced Configuration: Automatic Receipt

Efficiency is key. You can configure the system to Automatically Receive goods on the Demand Site the moment they are shipped from the Supply Site.

This is dangerous if physical transit time is long (e.g., sea freight), as your system will show stock available in the receiving warehouse while it is still on a boat. However, for "Virtual" moves or immediate transfers between adjacent buildings, this setting saves a massive amount of data entry.

To enable this, check the Automatic Receipt parameter on the Internal Supplier setup. When the Supply Site executes "Deliver Customer Order," the Demand Site's "Register Arrival" is performed instantly in the background.

7. Troubleshooting & Best Practices

The "Coordinator Group" Error:
A common error is "Coordinator not allowed for user". Distribution Orders rely heavily on Coordinator Groups to determine DO numbers and prefixes. Ensure every planner belongs to a valid Coordinator Group and that the default coordinators on your Supplier/Customer records are active users.

Re-Planning Flexibility:
Planned DOs are flexible. Released DOs are rigid. Establish a "Release Horizon" policy. For example, only release DOs that are due within the next 5 days. Leave the rest as "Planned". This allows MRP to delete and recreate them if the forecast changes, keeping your plan responsive. Once you release a DO, you "freeze" that decision.