Consumption Mode in MRP using reservations

Hi Gurus,
I am try to use the consumption mode found in the MRP setting if SAP.
My scenario is as follows:
1) Did a forecast of a material for 3 months
2) Created a Reservation between does 3 months
Problem:
1) No compensation was made to any of the forecasted quantities (i.e if forcasted quatities was 100- and the reservation was 20-, the forecasted model remained 100- and a reservation of 20- came up when MRP was run)
Expected Results:
1) Forecasted quantity 80- and reservation 20-, i.e. total 100- not 120-
Any ideas,
Thanks,
John.

Dear Uday,
Your question is related to delivery date proposed in the Sales Order processing. This has nothing to do with the consumption mode in the material master. Instead the delivery dates are proposed as per total replen lead time and inhouse prod time from MRP views.
Regards,
Ashish

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    Problem:
    1) No compensation was made to any of the forecasted quantities (i.e if forcasted quatities was 100- and the reservation was 20-, the forecasted model remained 100- and a reservation of 20- came up when MRP was run)
    Expected Results:
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