About Reserving Inventory for an Order

This topic describes reserving inventory for an order.

Prerequisites

The system reserves inventory for sales orders lines based on the following conditions:

  • The Reservable check box must be selected for item to be reserved (found on the Controls tab of the Items form).
  • The sales order line item has not been filled.

Effects of Reservations on Planning

Reserving a quantity for a demand reduces the quantity of that demand to plan. For example, if you have an order for 50, for which a quantity of 40 is reserved, the system plans that order for the remaining unsatisfied quantity of 10.

Reserving Inventory for a Sales Order

You can reserve inventory for a sales order using these forms:

  • Sales Orders
  • Reservations for Item
  • Reserve/Unreserve Inventory Utility

Calculations Used in Reserving Inventory

The calculation used to determine the amount of inventory to reserve is as follows: QO - QS + QR - QAR = RI, where:

  • QO = Quantity Ordered
  • QS = Quantity Shipped
  • QR = Quantity Returned
  • QAR = Quantity Already Reserved

The system reserves inventory in order of Item Stockroom Locations rank. Inventory is reserved until the Available to Reserve inventory reaches zero. The Available to Reserve inventory is calculated as follows for a specific warehouse:QOH - QRCO = ATR, where:

  • QOH = Quantity On Hand
  • QRCO = Quantity Reserved for the Sales Order
  • ATR = Available To Reserve

For lot-tracked items, the Issue By field (on the Controls tab of the Items form) is used to determine the method for reserving items:

  • If the Issue By field is set to Lot for the item, the system selects items to reserve in lot order alphabetically. Then, for each location within that lot, it reserves items based on the order of Item Stockroom Locations rank.
  • If the Issue By field is set to Location, the system reserves items in order of Item Stockroom Locations rank for each location and picks the lots alphabetically within that location.

Reserving Serial-Tracked Items

If you reserve an item that is tracked by serial number, you can use the Reservations for Item form's serial number area to reserve specific serial numbers for this order.

Unreserving Items

If you have reserved an item for an order but no longer wish to have it reserved, use the Reserve/Unreserve Inventory Utility to remove the reservation, or delete the record(s) manually from the Reservations for Item form.

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