Item Master (ITM) - Inventory Allocation

  1. Specify this information:
    Allocation Type

    Specifies how allocation of the item is made from the inventory. Options are:

    • No Inventory Allocation - only balances are used. You cannot identify which receipt made up which issue.
    • Automatic Allocation - allocated at the stage defined on the transaction type.
    • Manual Allocation as Part of Order Entry
    • Manual Allocation after Order Entry
    • Not Defined - uses the settings on the Inventory Business Setup.
    Note: If the Serial Number Reqd At Receipt is set to Yes on the Batch and Serial Number tab, the allocation type must be Automatic Allocation. If the Serial Number Reqd At Receipt is set to No, Automatic Allocation cannot be used.
    Allocation Horizon
    The default number of days that can be used in advance of the due date for allocating an items 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.
    For example, an order may be dated November 2002 but not be required for shipping until March 2003. The order can be accepted but would not be allocated from the current inventory. The system uses the Allocation Horizon field to calculate when to allocate the item from inventory. You should include processing time in the Allocation Horizon to ensure the correct items are available by the shipping date.
    Note: This can be used with Automatic Allocations, and the Allocate All and Allocate Line actions.
    Allocation Sequence

    The order in which items in the inventory are allocated. Options are:

    • Defaults to the Business Definition - uses the default allocation sequence as set up in the Inventory Business Setup.

    The following options override the settings in the Inventory Business Setup and are only applied if Manual Allocations are not in use. They define the sequence in which available receipts are displayed in Manual Allocations.

    • 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 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. The item code must have Batch Control set to Yes to use this allocation method.
    • Serial Number - allocated by serial number.
    • Batch Code - allocated by batch code.
    • Warehouse/Zone/Location
    Note: If the Serial Number Reqd At Receipt is set to Yes on the Batch and Serial Number tab, you cannot select Serial Number for the Allocation Sequence.
    Inventory Count Cyclic Freq
    This is used when generating Inventory Counts. The frequency that items are counted each year. For example, if the Inventory Counts Per Year field is set at 12 on a warehouse (so that the warehouse is counted 12 times per year), and this field is set at 4, an item will be counted on every third inventory count. This overrides the setting in the Inventory Business Setup if the item is to be counted more or less frequently.
    Exclude from Inventory Revaluation
    If this box is checked the item is excluded from inventory revaluation calculations.
    Charge Rule Code

    This is used in Landed Cost processing. You can set up a default charge rule to be used for the item only if it is of the charge type. When selecting the Landed Costs action in Purchase Order Entry, Purchase Invoice Entry, or Movement Order Entry, and this item is on the transaction line selected, a charge rule must be selected. The charge rule defined here is displayed by default.

  2. Save your changes.