Reserve inventory quantities

  • 5 minutes

Your organization might have multiple reasons for reserving inventory, such as:

  • When a shortage of items occurs due to an unknown delivery time from the vendor. By reserving inventory, you can ensure that specific customers or orders receive the items when they first become available.

  • If your organization has certain customers that have first priority of delivery.

  • When using items for production orders. You can mark items that are produced for or adjust for specific orders.

Inventory reservation policies

The system can automatically reserve inventory when you create a new order line, or you can reserve inventory manually on the individual orders. You can configure and specify inventory reservation policies on the Item model groups page, the Inventory and warehouse management parameters page, and the Production control parameters page.

Policies on the Item model groups page

Go to Inventory management > Setup > Inventory > Item model group to specify reservation policies. The following policies are available on the Item model group page:

  • FIFO date-controlled

  • Backward from ship date

  • Item sales reservation

  • Same batch selection

  • Consolidated requirements

  • FEFO date-controlled

Policies on the Inventory and warehouse management parameter page

On the General tab located on the Inventory and warehouse management parameters page, you can use the Reserve ordered items field to reserve item receipts that are ordered against item issues in Accounts receivable, Project management and accounting, and Production control. The Reserve items automatically field on the Transfer orders tab specifies the default setting for automatic item reservation in transfer orders.

Inventory reservation policies on the Production control parameters page

Go to Production control > Setup > Production control parameters and select the General tab to specify the Reservation. This field specifies the default stage in the production process when inventory should be reserved. The available options are: Manual, Estimation, Scheduling, Start, and Release.