Net Reservations
When you choose to net reservations, the planning process recognizes hard reservations that represent sales order demand. If you do not choose to net reservations, the planning process recognizes all sales order demand as soft reservations only. The planning process always plans to satisfy hard reservations before soft reservations.
Note: By definition, sales order demand is a soft reservation. A hard reservation is sales order demand that you firm by reserving selected inventory for the purposes of material planning, available to promise calculations and customer service issues.
See Also
Viewing Item Reservations
Net Purchases
Net Work in Process
Netting Supply and Demand