Inventory commitment

Inventory commitment allows you to reserve inventory for specific orders. Committed inventory is not available for other orders. You can also cancel inventory commitments, if required.

In addition to the inventory commitment method, you can also use the allocation and hard pegging functionality to allocate inventory to orders, provided that this functionality is in use in your organization. For more information, refer to Demand pegging overview.

Inventory commitment generation or creation

In general, you can generate or create inventory commitments for orders of the origins that result in a warehouse order of inventory transaction type Issue. However, some exceptions exist:

  • Orders with specifications
    You cannot generate or create inventory commitments for orders with specifications. Specifications are available if the allocation and hard pegging functionality is used. For more information, refer to Demand pegging overview.
  • Sales Order
    Whether and how commitments for sales orders are generated or created depends on the value of the Commitment Policy field in the Items - Sales (tdisa0501m000) session.
  • Production Order
    You can only generate or create an inventory commitment for a production order with status Planned, Documents Printed, Released, or Active.
  • Maintenance Work Order
    Whether and when inventory must be committed for maintenance work orders depends on the value of the Commitment Required field in the Work Order Parameters (tswcs0100m000) session.

You can:

  • Manually create inventory commitments in the Inventory Commitments (whinp2100m000) session.
  • Generate inventory commitments with the Generate Inventory Commitment (whinp2200m000) session.
Commitment for sales orders

For manually created or generated inventory commitments for sales orders, LN takes into account the Minimum Quantity to Commit and Minimum Rate for Commitment as specified in the Items - Sales (tdisa0501m000) session. Based on the values of these fields, LN determines the quantity to commit.

You cannot update inventory commitment for sales orders if:

  • The sold-to business partner is blocked.
  • The ship-to business partner is blocked.
  • The sales order is blocked and the Allow Inventory Commitment check box in the Sales Order Parameters (tdsls0100s400) session is cleared.
Creating buffers

In LN you can reserve inventory, that is not (yet) specifically assigned to an order, by creating an inventory buffer or an allocation buffer. Allocation buffers are available if the allocation and hard pegging functionality is used. For more information, refer to Demand pegging overview.

In the Inventory Commitments (whinp2100m000) session, to create an inventory buffer or an allocation buffer, create a new inventory commitment with order origin Inventory Buffer or Allocation Buffer, respectively.

You can directly commit inventory that is reserved by an inventory buffer to an order line in the Consumption of the Inventory Buffers (whinp2202m000) session. For further information on allocation buffers, see Allocation buffers.

Updates after changing the inventory commitment orders

If you change an inventory commitment, the Committed field in the Warehouse - Item Inventory (whwmd2115s000) session is updated with the changes in the committed quantity.

In the Item Inventory (whwmd4100m100) session, the Committed field is updated with the changes in the committed quantity.

If the order origin is Sales Order the Committed Quantity field in the Sales Order Lines (tdsls4101m000) session is updated with the committed quantity

Issue of committed inventory

If you generate or create an outbound advice for an outbound order line with committed inventory, LN increases the Inventory Committed in Process in the following sessions with the part of the committed quantity that is advised:

  • Inventory Commitments (whinp2100m000)
  • Warehouse - Item Inventory (whwmd2115s000)
  • Inventory by Warehouse, Item and Effectivity Unit (whwmd2116s000)

If you issue committed inventory and finish the outbound procedure or the shipment procedure, LN decreases the Committed Quantity in Order Unit and Inventory Committed in Process with the issued committed inventory. When LN decreases the Committed Quantity in Order Unit and Inventory Committed in Process depends on the warehousing order type:

  • If a shipment procedure is linked to the warehousing order type, LN decreases the Committed Quantity in Order Unit and Inventory Committed in Process when the shipment line is confirmed.
  • If no shipment procedure is linked to the warehousing order type, and the last specified activity in the warehousing order type's outbound advice procedure is the Picking List (whinh4525m100) session, LN decreases the Committed Quantity in Order Unit and Inventory Committed in Process if you indicate that picking can take place for a picking list.
  • If no shipment procedure is linked to the warehousing order type, and the last specified activity in the warehousing order type's outbound advice procedure is the Warehouse Inspections Overview (whinh3122m000) session, LN decreases the Committed Quantity in Order Unit and Inventory Committed in Process if during outbound inspection you approve the inspected items.

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