Allocated inventory

Inventory is allocated when item quantities are reserved in the Warehouse solution for specific uses. Examples of specific uses are inventory allocation for a requisition, customer order, or work order. After the inventory is allocated, it is not available for other customer orders. You can allocate inventory items online or in a batch.

Note: Kit items are allocated at the component level. A kit is not allocated or complete until you select all available component options.

Define whether your company uses the online or batch allocation method.

You can combine batch and online processing. Use batch allocation to allocate items based on priority and use online allocation to create individual adjustments. In the online allocation method, items are allocated as each customer order is added. Items are reserved on a first come, first served basis. If there is insufficient stock to fulfill the orders, then you can use online allocation forms to select the orders to fill. You can use allocation forms even if you are not set up to use online allocation. There is a small duration of time during which you can maintain allocations online before pick tickets are printed. Whether you use online or batch allocation, you can use batch allocation to allocate back ordered item quantities. You can deallocate quantities using the batch program.

Note: You select the date type, such as request, entry, or expected ship, to use for allocation on the Order Entry Options tab in Billing Company.

If your company is setup to use the batch allocation method, then items are allocated when you run the batch program. The batch method allocates multiple orders at one time. Batch allocation can be used to reserve items based on the request date, created date, expected ship date, or a priority number.

Note: When you deallocate quantities, the solution can reallocate them based on the method you set up or the quantities can be left deallocated.

Whether you are normally set up to use online or batch allocation, you can use batch allocation to allocate backordered item quantities. You can deallocate quantities using the batch program. To allocate based on priority, you define a priority level for each solution that requests inventory: Item and Order Billing, Requisitions, and Production Management. You can also define priority levels for individual customers. A priority level of 1, on a scale of 1 to 99, receives the highest priority. It is allocated inventory over another application or customer with a lower priority. All applications have a default priority level of 50.

Application priority levels are defined when Inventory Control created. Priority levels for customers are defined when customers are created in Receivables. See the Supply Management Setup and Administration Guide.