Allocating original items before substitutions

Use this procedure to allocate a partial demand of an original item before substituting an item.

Remaining quantities from stock on hand for an original item can be allocated before using the substitute item. This condition only applies to original items with remaining quantities in stock and the Automatic Item Substitute check box is selected on the Corporate Item Group. You can enable this setting in the Item Group or the Inventory Company.

If the original and the substitute items cannot fill the requested quantity, the requesting location fill and kill rules apply to the substitute item.

When Warehouse Location Rules are used, quantities are taken from the location that can fill the original item. Then the quantities are taken from the location that can fill the substitute item.

See the Supply Management Setup and Administration Guide.

The exception is for a substitute special item. If a special item is used as the substitute item, then quantities of the original item are not allocated. The special item is automatically substituted without pulling the remaining stock for the original item.

If multiple substitute items exist, only the highest priority substitute item is allocated.

Set up the item group

  1. Select Inventory > Administration.
  2. On the System pane, click Item Groups.
  3. Open an item group record.

    See the Supply Management Setup and Administration Guide.

  4. Select the Automatic Item Substitution check box.
  5. Select the Allocate Prior To Substitution check box.

    This check box is available if the Automatic Item Substitution check box is selected.

  6. Click Save.

Set up the inventory company

Use this prodedure if multiple companies exist and those companies follow different allocations before their substitution processes.

  1. Select Inventory > Administration.
  2. On the System pane, click Companies.
  3. Open an inventory company record.

    See the Supply Management Setup and Administration Guide.

  4. In the Allocate Prior To Substitution field, select Allocate Prior To Substitution.

    This option overrides the Allocate Prior To Substitution check box in the Item Group.

  5. Click Save.

Processing

When a requisition is created with more quantities than is in stock for the original item, a line with the remaining quantities of the original item is created. A second line with the remaining quantities is created for the substitute item when the record is added or saved.