Inventory Business (IBS) - Inventory Allocation

Allocation Sequence

The default sequence in which stock is allocated to orders. This setting can be overridden for individual items on the item master record. Options are:

• FIFO

  First In First Out - refers to items held in inventory and is used to control the order in which items are issued from the inventory.

• LIFO

  Last In First Out - refers to items held in inventory and is used to control the order in which items are issued from the inventory.

• FEFO

  First Expiry First Out - this only refers to batch item codes held in inventory and is used to control the order in which these items are issued from the inventory.

• Expiration Date Based

  Stock is allocated based on expiration date.

Allocation Horizon

The default number of days that can be used in advance of the due date for allocating an item from inventory. For sales orders that is the own latest due date (start of activity); and for movement orders that is the issue latest due date. Use these settings to prevent items from being allocated to orders far into the future, which would prevent more short term orders being processed.

Note: This is used with automatic allocations, and with the Allocate All and Allocate Line actions.

Warehouse Sequencing

The warehouses available to allocations. Options are:

• Use Default Warehouse Only - the default warehouse for the item found by the warehouse default sequence, as detailed in Setting up Automatic Allocations From Warehouses.
  Note: If the option Use Default Warehouse Only is used, then you must set the Allocation Sequence for Warehouse processing to be before that of Item Processing, otherwise automatic allocation may not work.
• Use Default Warehouse And Others In The Same Group - the default warehouse for the item is set up in the item master and if the warehouse is part of a group, this is defined using Warehouse Groups. If a warehouse is a member of more than one group then all of the warehouses in all of the groups that this warehouse belongs to are used by the allocation processes (both automatic and manual).
• Use All Warehouses

Examine Projected Free Inventory

If Yes is selected, projected, or anticipated, items added to the inventory at a later stage, are made available to allocations. Projected receipts may result from either movement or purchase orders.

Free Inventory Includes Allocated

If this box is checked the free inventory total (inventory balance) includes the allocated quantity.

Manual Allocations Used

If this box is checked manual allocation is permitted.

Alternative Item Precedence

This field specifies the order in which the system searches for alternative items, as defined in the item master, if the current item cannot be found in the current warehouse. If this box is checked, the system searches for alternative items in the current warehouse, then searches for the current item in other warehouses.

Allocation By Unit Load

If this is unselected, an allocation for a unit of measure that is larger than receipts' units of measure will not happen automatically. For example, you will not be able to assemble or sell a case made up of bottles. The same or smaller UOM is sufficient.

However, if this is selected, the larger UOM allocation will be made up of remains of smaller UOM receipts, depending on allocation criteria. For example, a pallet can be made up of crates and bottles

Inc Reserved Allocn in Calcs

If selected, reserved allocations are included in allocations calculations.

Use Alt Item for Auto Alloc'n

If selected, alternative items, as defined in the item master, are used for automatic allocation if the original item cannot be used.

The following stages represent the automatic allocations sequence and can be set as first, second, third or last in the sequence, as required:

Item Process Sequence

When items are processed.

Unit Label Process Sequence

When unit labels are processed.

Warehouse Process Sequence

When warehouses are processed.

Projected Inventory Process Sequence

When projected inventory is processed.