Inventory allocation levels

Inventory allocation levels determine whether allocated-to inventory is identifiable and traceable in the warehouse by means of handling units or merely registered as allocated-to inventory. You can define allocation levels for warehouse - item combinations in the Item Data by Warehouse (whwmd2510m000) session and the Item - Warehousing (whwmd4600m000) session.

Allocation levels

The following inventory allocation levels are available:

Warehouse
If receipt lines of supply orders with specifications are confirmed, or allocation buffers are created, the received items and the buffered items become allocated-to inventory. No handling units are generated for these items, therefore, they are not traceable in the warehouse.
Physical Item

If receipt lines of supply orders with specifications are confirmed, the received items become allocated inventory. LN generates handling units for the received items, and the handling units obtain specifications with characteristics identical to those of the supply order. The allocated items are identifiable and traceable in the warehouse by means of the handling units and the handling unit specifications.

In all warehousing procedures, including shipment, inbound and outbound inspections, adjustments and cycle counts, handling units with specifications are used. For example, if outbound advice is created for a demand order, LN advises specific handling units whose specification characteristics match those of the outbound order lines of the demand order.

Note:

Using the Physical Item allocation level requires various parameter settings. For more information, refer to Handling unit setup for allocations.
Unlike supply orders, for the allocated inventory included in an allocation buffer, no handling units are generated if the inventory allocation level is Physical Item.

Handling unit setup for allocations

To use allocation level Physical Item, the following setup is required:

In the Implemented Software Components (tccom0500m000) details session, select the Demand Pegging check box.
In the Warehouse Master Data Parameters (whwmd0100s000) details session, select the Handling Units in Use check box.
In the Items - Warehousing Defaults (whwmd4101s000) session and the Item - Warehousing (whwmd4600m000) session , select the Handling Units in Use check box.
In the Item Data by Warehouse (whwmd2510m000) session:
- To enable the use of handling units in all warehousing processes, select the following check boxes:
  - Handling Units in Use
  - Receipts
  - Inbound Inspections
  - Inventory
  - Outbound Inspections
  - Shipments
- To automatically generate handling units during the following warehousing processes, select Always or For Ownership/Specification in the following fields:
  - Generate Handling Unit Automatically from ASNs
  - Confirm Receipts
  - Process Adjustments Orders
  - Process Cycle Counting Orders
- To generate handling units when outbound advice is released, in the Confirm Picking field, select Yes.

If not all of the above automatic handling unit generation options are selected, when one of the warehouse processes is carried out, the user is prompted to manually create handling units.