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Allocating Stock to Sales Orders

Stock Allocation is when stock is set aside when a Sales Order is generated.

This reserved stock (aka ring-fenced stock) cannot be sold or assigned to other orders.

Allocation states

A Sales Order can be in one of three states of allocation:

  • Not Allocated: In this case no stock has been reserved for the order.
  • Partially Allocated: Only some of the stock has been reserved for the order.
  • Fully Allocated: All required stock has been reserved for the order.

If stock has not yet been fully allocated, it does not necessarily mean that there is a shortage of stock.

Why is allocation important?

Advantages of allocating stock includes:

  • Allows you to control which orders are fulfilled, given your current level of stock across multiple sites/warehouses.
  • Without it, it would be difficult to keep track of stock in order to tell a customer if their order can be fulfilled.
  • Without it, it is difficult to know when you need to purchase more stock.
  • You may wish to fulfill certain orders in preference to others.
  • Being able to allocate stock to orders on an individual basis is vital.

Stock allocation can be done from:

  • The individual Sales Order or
  • The Sales Order list, for processing many orders daily.

Option A – Controlling Stock Allocation on a particular Sales Order

For one Sales Order, see the example below.

This is a Sales Order with 3 line items. Each line item is a Stock Item.

new-sales-order-not-allocated

Newly created Sales Order BEFORE saving

Click Save, and the next message will display:

new-salesorder

Saving a Sales Order that cannot be fully allocated

Referring to the labeled boxes in the diagram:

Box 1: A Warning message will show indicating there is insufficient stock available. Four options will be given:

  1. Do not allocate any stock.
  2. Allocate any available stock.
  3. Over allocate stock.
  4. Manually edit allocation.
  • For option a – You may wish to cancel the transaction. For that choose option a.
  • For option b – Any stock that is available will be allocated.
  • For option c – Over allocate as an extra measure to ensure there will be sufficient stock.
  • For option d – The area marked 3 in the image above – Allocated field will become editable, allowing you to specify the individual allocations.

NOTE:
To set the default option/action when there is insufficient stock, go to Sales Order Configuration page under SetupConfigurationSales Order.

Box 2: The icons to the left of each Line Item, indicates if the allocation can be fully or partially allocated or not at all. It indicates what can be done, not what has been done.

If a Line Item has been fully allocated previously, no icon will appear signifying that the Line Item has been fully allocated and there is no more stock required to allocate.

For the image example shown above, the option that was chosen was:

  • Allocate any available stock. Resulting in:
    • Line 1 having 0 stock.
    • Line 2 has 1 unit.
    • Line 3 has 20 units.
    • Resulting in a Sales Order that cannot be fully allocated.

To see the current stock levels, click the ‘Check Stock’ button on the action bar.

NOTE:
By selecting ‘Edit Allocation’ in the menu bar, order allocation options are also available

Save the document in the usual way after selecting ‘Allocate any available stock’. The result is shown below.

view sales order

Saved Sales Order that is partially allocated

Once saved, the icons next to the individual line items change to square rather than round. This indicates what has actually been allocated, while round indicates what can be allocated while the document is in edit/new mode.

A Line Item with no icon means it is fully allocated.

Once more stock has been acquired, the Sales Order can be edited again.

When we edit the Sales Order again this is what we see. See image below.

sales order

Sales Order in Edit Mode showing available allocation

Next to each line item, circular green tick icons indicate that the Line Items can now be fully allocated.

The absence of an icon on the second line indicates the line is already fully allocated.

When saving the document now, each line will be fully allocated.

Option B – Controlling Stock Allocation using the Sales Order List

Allocating stock from the Sales Order List is more convenient when processing many orders at once.

Go to the Sales Order List, click the button ‘List Orders requiring allocation‘. The result is shown below:

reuire-allocation

Using the Sales Order List to allocate stock

Referring to the labeled boxes in the diagram:

  1. Clicking here will show the orders requiring allocation.
  2. This is the order in our above example.
  3. These icons indicate which orders can be fully met, partially or not allocated.
  4. Use these buttons to perform the allocation in a single click, rather than editing each Sales Order individually. For more information on Shipments, and the Pick-Pack-Ship process see Pick-Pack-Ship Process.

Selecting specific orders to allocate

By default Sales Order allocation is done on a first-come, first serve basis.

If required, a singular Sales Order further down the list can be partially allocated or not allocated at all with the current manual list ordering.

How to select specific orders to allocate

  1. Select the Sales Orders you wish to allocate.
  2. Select the Allocating action drop-down.
  3. Click on ‘Show allocation for selected orders‘.
  4. Now stock can be allocated according to your preference, as shown below.

list-selected

Showing allocation for selected Sales Orders

Also Read About


Working with Sales Orders
Pick-Pack-Ship Process
Working with Shipments
Creating Back Orders
Pick Lists
Drop Shipment and Special Orders