How a Costpoint MRP Run Works
An MRP run evaluates demand against available and expected supply. The system considers relevant planning inputs such as bills of material, inventory balances, open supply, production requirements, lead times, and planning parameters. It then identifies material requirements that need to be addressed.
The broader Mrp Module concept covers the planning functionality used to translate production demand into material requirements. A Costpoint MRP run applies this logic to the organization's configured manufacturing and inventory environment.
- Demand: Production orders, sales requirements, project needs, or other planned demand establish what materials may be required.
- Inventory: Available stock is considered before additional supply is recommended.
- Existing supply: Open purchase orders, manufacturing orders, and other expected receipts can reduce additional requirements.
- Lead times: Planned supply dates account for the time required to procure or manufacture materials.
- Net requirements: The run identifies remaining quantities that require planned action.
MRP Demand and Supply Planning
Mrp Demand represents the requirement that drives material planning. Demand may originate from production schedules, customer requirements, project commitments, or dependent demand created by higher-level assemblies.
For example, if a planned assembly requires 100 units of a component and only 35 usable units are available, the planning process can identify the remaining 65 units as a net material requirement, subject to other supply already scheduled for receipt.
This information helps purchasing and production teams coordinate replenishment with manufacturing schedules. It also provides finance teams with visibility into potential material commitments and the timing of expected expenditures.
MRP Results and Procurement Decisions
The output of an MRP run can support decisions about planned purchases, manufacturing orders, rescheduling, and inventory replenishment. Procurement teams can use identified requirements when creating requisitions and purchase orders, while production teams can use them to coordinate component availability with planned work.
MRP information is also useful for financial planning because material requirements can indicate upcoming purchasing activity and expected inventory investment. Aligning material demand with procurement timing helps organizations manage production requirements while maintaining visibility into spending and working capital.
MRP, Costpoint Finance, and ERP Integration
Manufacturing planning does not operate separately from finance. Material purchases, inventory receipts, supplier invoices, production consumption, and project costs ultimately contribute to financial records. Costpoint therefore provides value when operational planning and financial structures remain connected.
When invoice transactions enter the finance workflow, data can be captured, validated, matched, assigned through the appropriate chart of accounts, approved, and posted. This helps connect purchases originating from material planning with accurate financial reporting.
Organizations using deltek can also evaluate how ERP integration and connected finance workflows support the movement of manufacturing, procurement, inventory, and accounting information across the enterprise.
Month-End and Working Capital Considerations
MRP outputs can provide useful context for month-end financial analysis because planned material requirements affect purchasing commitments, inventory expectations, and future cash requirements. Finance teams can compare planned supply with actual receipts and invoices to understand the timing of manufacturing expenditures.
Accurate cut-off is particularly important when materials have been received but supplier invoices have not yet been processed. Finance teams may use accruals processes to support expense recognition for qualifying goods or services received during the period and subsequently reconcile those amounts when invoices are posted.
Once customer payments are received, a separate finance process may match remittances with invoices, resolve unapplied cash or deductions, and post receipts. This is the role of cash application within the broader order-to-cash workflow.
Best Practices for Running MRP
Reliable MRP results depend on accurate manufacturing and inventory data. Organizations should maintain current bills of material, item information, inventory balances, lead times, planning parameters, and supply records so that requirements reflect actual operating conditions.
- Review demand inputs before running MRP to ensure production requirements are current.
- Maintain accurate inventory quantities and units of measure.
- Keep supplier lead times and purchasing information current.
- Review open supply and expected receipts before acting on recommendations.
- Investigate unusual material requirements and validate their underlying demand.
- Compare planned requirements with actual production and purchasing results to improve future planning.
MRP Run and Related Finance Processes
A Costpoint MRP run focuses on material planning rather than payments. A Payment Run, by contrast, is a finance process that organizes approved liabilities for payment according to payment rules, schedules, and authorization controls. Keeping these concepts distinct helps teams understand how manufacturing planning connects to, but does not replace, downstream financial processes.
Summary
Costpoint MRP Run converts manufacturing demand and supply information into actionable material requirements. By considering inventory, existing supply, lead times, and production needs, it helps organizations coordinate procurement and manufacturing while providing finance teams with visibility into material commitments, inventory requirements, and future financial activity.