Inventory Count - Allocations

For a write-off movement order, allocations are performed as for a regular movement order. Inventory data is passed from the inventory count to the movement order. This data consists of the item count, quantity to be written-off, batch reference, expiry date, and so on. This data is used to ensure that the correct piece of inventory is allocated.

If the item is defined as being allocated manually, the system still automatically allocates it. If an order is set to be held, the action Manual Allocations can be used to amend the allocation. Care must be taken to ensure that an incorrect receipt is not allocated and so the incorrect inventory issued.

If inventory is allocated and an attempt is made to write it off as part of an inventory count, the movement order may experience difficulties with allocation. In this case, the movement order is held regardless of the settings of the Held After Completion field on the movement order stage. You must then manually deallocate other orders and process the movement orders as required.

For example:

Inventory inquiry shows a quantity of 100 of Item A.

Sales order reference SO1 is for 20 of Item A, sales order reference SO2 is for 30, and the lines have been fully allocated. So, there is a quantity of 50 unallocated.

An inventory count is generated and the quantity of Item A actually counted is found to be 40, resulting in the need for 60 to be written-off. The system automatically generates an issue type movement order for a quantity of 60 in order to adjust the inventory to the correct quantity of 40.

As 50 is allocated to the sales orders and the inventory is being reduced to 40, there is not enough unallocated stock available for issue.

The movement order is held and a warning message is displayed informing you that there was a problem with issuing the item and reducing the inventory.

You should review the allocations for the item and location and decide on your business needs. You must choose to manually deallocate a quantity of ten of the item from one (or more) of the sales orders, so that the quantity required can be fulfilled by the new quantity available. That is, in this case 40.

Deallocations are not carried out automatically as the system cannot determine which sales order to deallocate from.

You must then return to Movement Order Entry to finish processing the movement order.