The FMC transitions to "on approach" mode for any of the following conditions:
the descent phase is active and flaps are out of up, or
the airplane has sequenced the first waypoint (or FAXXX) of the active approach, or
the airplane is on a direct-to or intercept course-to the active waypoint and the distance to go is less than 12 NM, or
the missed approach point is the active waypoint and the distance to go is less than 25 NM
When the FMC is “on approach”, the following features are available..the IAS/MACH window can be opened and the command speed can be set while VNAV remains in VNAV PTH descent; VNAV commands the set speed.......