Allocating Orders in Demand Fulfillment

This chapter provides an overview of allocations and pre-allocations and discusses how to:

• Create a pre-allocation.

• Create a lot allocation.

Understanding Allocations and Pre-Allocations

In PeopleSoft Inventory demand fulfillment, an allocation occurs when an item quantity in a specific material storage location (MSL) within the inventory business unit has been reserved for a particular demand line. For example, assume that an order number CEN123 has an order line for 100 units of widgets. The order line is allocated when the system defines that the 100 units will be picked from Area 2, Row 12, Bin 14 (MSL) of the inventory business unit.

Allocation usually occurs when the Order Release process (IN_FUL_RLS) is run, moving the demand line from the Releasable fulfillment state to the Released state. However, allocations can take place earlier in the demand fulfillment cycle; this is called pre-allocation. Pre-allocations can be generated by the pegging feature or the lot-allocation feature, or by allocating any demand line before the Released fulfillment state.

PeopleSoft Inventory defines the following types of allocations:

• Standard Allocation: An allocation that is created within the picking fulfillment step, that is, when the demand line is moved to the Released fulfillment state.

  See Picking Inventory.

• Pre-Allocation: An allocation to a MSL that is created before the picking fulfillment step, that is, while the demand line is in the Unfulfilled or Releasable state. Pre-allocations can occur when pegged stock is put away in the inventory business unit or when you pre-allocate stock to a demand line.

• Lot Allocation: Allocating a specific lot ID to fulfill a lot-controlled item on a demand line. This is a type of pre-allocation because it takes place when the demand line is in the Unfulfilled or Releasable fulfillment state. It differs from other pre-allocations in that the demand line is allocated to a particular lot ID.

The type of allocation used on a demand line is stored in the ALLOCATE_SOURCE field of the DEMAND_PHYS_INV record and can have the value of:

• SA for standard allocation

• PR for pre-allocation

• LT for lot allocation

The allocation type is displayed on several pages within the demand fulfillment cycle. You can view the type of allocation on the following inquiry pages:

• Stock Requests - Picking Details page (Inventory, Fulfill Stock Orders, Review Fulfillment Information, Stock Requests. Click the Picking Details link on the Stock Requests page.) This page displays the type of allocation by the order line within demand fulfillment.

• Allocated Items by Location page (Click the Qty Reserved link on the Item Balance by Location page or the Inventory Inquiry by Location Details page. Both pages are under the navigation path of Inventory, Manage Inventory, Review Inventory Balance Info). The Allocated Items by Location page displays the type of allocation by the item ID within a specific material storage location of the inventory business unit.

Creating a Pre-Allocation

A pre-allocation occurs when a demand line is allocated to inventory stock while the demand line is still in the Unfulfilled or Releasable fulfillment state. A pre-allocation can be created by:

• The pegging feature.

• The Allocation Workbench (IN_ALLOC_WBENCH).

• The Create/Update Stock Request (MATERIAL_ISSUES) component.

• The Shortage Workbench (IN_SW_WORKBENCH).

• For sales orders, the Order Entry Form (ORDENT_FORM) component within PeopleSoft Order Management.

• The Inventory Create Stock Request EIP (Enterprise Integration Point).

You can create a pre-allocation to a MSL that is currently being cycle counted.

You can pre-allocate an RTV (return to vendor) order line to non-nettable and restricted MSL.

Pre-Allocation and Undo Fulfillment Processes

When you are returning a demand line that is currently in the Released or Confirmed fulfillment states to an earlier state by using a PeopleSoft process, you can choose to keep the allocation or even the reservation by selecting the Keep Reservations, Keep Lot Allocations, Keep Pre-Allocations, and Keep All Allocations check boxes on the following process pages:

• The Undo Fulfillment Request (IN_FUL_UND) process page using the action of Return to Unfulfilled, Return to Releasable, or Return to Released.

• The Order Release Request process page using the action of Return to Unfulfilled or Return to Releasable.

• The Work Order Pick Plan (IN_ALM_PCK ) process page using the action of Cancel Allocations.

Planning for a Possible Pre-Allocation

When you are working with Released or Confirmed demand lines and anticipate that you might need to return the lines to the Unfulfilled or Releasable states, then you can tell the system to keep your current allocation if the line is moved upstream. Select the value of Pre-Alloc in the Allocation field (ALLOCATE_SOURCE) of an existing row or any new rows added on the following pages:

• Material Picking Feedback page (for Released demand lines).

• Shipping/Issues - Picking Feedback page (for Released or Confirmed demand lines).

• Location / Lot / Serial page of the Fulfillment Workbench (for Released demand lines).

• The Inventory Picking page within the SCM Integrations menu (for Released demand lines).

Using the Pegging Feature to Create Pre-Allocations

Pegging links demand to incoming supply. Based on your settings in the Pegging Item Setup page and the Pegging Setup page, a pre-allocation can be created during putaway. When the incoming supply is put away into the inventory business unit, the Complete Putaway (INPPPTWY) process can allocate the incoming supply to the corresponding outgoing demand. Outgoing demand can be a material stock request, sales order, or work order. When the entire pegged quantity is received, then the peg status is complete and the order displays a pre-allocation.

See Pegging Supply and Demand.

Using the Allocation Workbench

The Allocation Workbench enables you to create, update, or remove a pre-allocation or lot allocation and to create a standard allocation. The Allocation Workbench can be used for:

• Material stock requests originating from PeopleSoft Inventory, PeopleSoft Supply Planning, or PeopleSoft Purchasing.

• Sales orders created in PeopleSoft Order Management.

• Work orders created in PeopleSoft Maintenance Management that have been committed to the PeopleSoft Inventory demand fulfillment table (IN_DEMAND).

See Using the Allocation Workbench - Search Page.

Using the Create/Update Stock Request Component

After you have added the lines to a material stock request, you can use the Create/Update Stock Request component to:

• Automatically create a pre-allocation to all the demand lines in the order by clicking the Pre-Allocate button on the Stock Request Summary page. The system selects the material storage locations to allocate to the demand lines.

• Manually create a pre-allocation for one demand line using the Allocation Workbench. On the Stock Request Summary page, select the line and select Allocations in the Line Menu field to access the Allocation Workbench-Summary page. Using the Allocation Workbench, you can create a pre-allocation or lot allocation, or move the demand line to the Released state and create a standard allocation.

• Create a lot allocation using the Allocate Lots (LOT_ALLOC_ORDR_INV) component. On the Stock Request Summary page, select the line and select Allocate Lot in the Line Menu field.

  See Creating a Lot Allocation.

See Creating or Modifying Orders Online in PeopleSoft Inventory.

Using the Shortage Workbench

On the Shortage Workbench, select Pre-Allocate in the Header Action field or the Detail Action field to automatically create a pre-allocation to the selected demand lines. The system selects the material storage locations to allocate to the demand lines.

See Managing Stock Shortages.

Pre-Allocating Sales Orders in PeopleSoft Order Management

The Order Entry Form component within PeopleSoft Order Management can be used to pre-allocate or lot allocate sales orders by accessing the Allocation Workbench. Using the Allocation Workbench, you can create a pre-allocation or lot allocation, or move the demand line to the Released state and create a standard allocation. From the Order Entry Form, access the Allocation Workbench by:

• Selecting Allocations or Lot Allocation in the Header Menu field. All lines on the sales order are displayed on the workbench.

• Selecting a line of the sales order and then selecting Allocations or Lot Allocation in the Line Menu field. Only the selected line is displayed on the workbench.

See Maintaining Order Header and Line Information.

Pre-Allocating Stock Requests Using the Inventory Create Stock Request EIP

Within the PeopleSoft Integration Broker, the Inventory_Create_Stock_Request service operation enables you to send data from a third-party source into the PeopleSoft Inventory system and create a new material stock request (MSR) or a new demand line on an existing MSR, including external orders, internal orders, interunit transfers, and RTV orders. When the new material stock request is created in the Unfulfilled or Releasable fulfillment state, you can choose to pre-allocate using the LLS (location, lot, serial) level of the message where the ALLOCATE_SOURCE field and the MSL can be defined.

Note. The LLS level is used to further identify instructions for how a transaction should be processed. Information such as MSLs, lot ID, serial ID, staged dates, and storage containers are carried at this level.

See Creating Orders Using Data From a Third-Party System.

Pages Used to Create a Pre-Allocation

Using the Allocation Workbench - Search Page

Access the Allocation Workbench - Search page (Inventory, Fulfill Stock Orders, Stock Requests, Allocation Workbench).

The Allocation Workbench - Search criteria page is the entry point into the Allocation Workbench component. Enter the demand selection criteria, and then click the Search button to view the search results on the Allocation Workbench-Summary page.

Search Criteria

Enter the selection criteria to find demand lines for the Allocation Workbench.

Demand Filters

Use the Demand Filters group box to select or exclude demand lines based on fulfillment status, allocation type, and other criteria.

Advanced Search Criteria

Enter additional search criteria to find demand lines for the Allocation Workbench.

Using the Allocation Workbench - Summary Page

Access the Allocation Workbench - Summary page (Click the Search button on the Allocation Workbench-Search page after entering selection criteria).

The Allocation Workbench enables you to create, update, or remove a pre-allocation or lot allocation and to create a standard allocation. Use the Summary page to have the system automatically select the material storage location or lot ID to allocate or access the Detail page to manually select the specific material storage location or lot ID for allocation.

Using the Allocation Workbench - Detail Page

Access the Allocation Workbench - Detail page (click the Manual Allocation icon on the Allocation Workbench - Summary page).

Use the Allocation Workbench - Detail page to select the specific material storage location or lot ID for allocation to the demand line. In addition, you can use this page to view, change, or remove the current allocations.

Creating a Lot Allocation

In PeopleSoft Inventory demand fulfillment, a lot allocation occurs when an item quantity in a specific lot ID within the inventory business unit has been reserved for a particular demand line containing a lot-controlled item. Lot allocation is performed when the demand line is in the Unfulfilled or Releasable fulfillment state, such as, during order entry. For example, assume an order number EAS432 has an order line for 200 gallons of red paint (item ID LT5007). To maintain consistent color, you want the entire order to be fulfilled from one lot. The order line is lot allocated when the system defines that the 200 gallons will be picked from lot ID 300. Notice that in lot allocation, you do not specify which MSLs are to be used. If lot ID 300 is spread over multiple MSLs, then the system determines the exact MSLs from which the quantity is allocated, based on certain rules. In addition, you can have the system automatically select the item's lot IDs for you.

When working with lot allocation, remember the following points:

• One demand line can be allocated to multiple lots or just one lot.

• Lot allocation is an optional feature.

• You must enable the lot allocation feature to process orders of configured products.

• You cannot lot allocate any demand lines that already have pre-allocations. If a demand line is completely or partially pre-allocated, then you cannot lot allocate the demand line. This includes demand lines that:

  • Have been pre-allocated using the Allocation Workbench or another process.

  • Have an open peg. The line will be pre-allocated when stock arrives at the inventory business unit.

  • Have a pre-allocation due to a pegged receipt.

• You cannot lot allocate work order demand lines from PeopleSoft Maintenance Management.

• You cannot lot allocate return to vendor stock requests.

  See Processing Return to Vendor Stock Requests in Demand Fulfillment.

To enable the Lot Allocation feature, select the Allow Lot Allocation check box on the Inventory Definition - Business Unit Options page. This enables you to allocate or deallocate lot quantities online for lot-controlled items, using:

• The Allocation Workbench (Inventory, Fulfill Stock Orders, Stock Requests, Allocation Workbench).

• The Allocate Lots component (Inventory, Fulfill Stock Orders, Stock Requests, Allocate Lots).

• The Create/Update Stock Request component to access the Allocate Lots component or Allocation Workbench during order entry.

• For sales orders, the Order Entry Form component within PeopleSoft Order Management to access the Allocate Lots component or Allocation Workbench during order entry.

• The Inventory Create Stock Request EIP. Lot allocate using the LLS level of the message where the ALLOCATE_SOURCE field and lot ID are located.

The Allocate Lots component is the same component as the Allocation Workbench, however the user is restricted to only lot allocation. This enables you to apply PeopleSoft security and allow a user or user role to lot allocate an order line but not allow that user to pre-allocate or apply standard allocation to a line.

See Understanding Allocations and Pre-Allocations.

To access the Allocate Lots component from order entry:

• (MSRs) On the Stock Request Summary page, select the line and select Allocate Lot in the Line Menu field.

• (sales orders) On the Order Entry Form:

  • Select Lot Allocation in the Header Menu field. All lot-controlled items on the sales order are displayed on the Allocate Lots component.

  • Select a line of the sales order and then select Lot Allocation in the Line Menu field. Only the selected line appears on the Allocate Lots component.

  • On the Shipment Schedules page of the Order Entry Form, select Lot Allocation in the Schedule Menu field.

Using Automatic or Manual Lot Allocation

Using either the Allocation Workbench or the Allocate Lots component, you can have the system automatically decide which lot IDs to use for allocation to the demand line or you can manually select the specific lot IDs to use.

You can perform automatic lot allocation:

• (sales order only) When you save a sales order with lot-controlled items on the Order Entry Form. To use this feature, select the Lot Allocate at Save check box on the Order Entry Features page of the Order Management business unit. The system automatically selects the lot IDs to use. If you have an exception and want to manually select which lots to use on an individual order, then you can select the Skip Lot Allocation check box on the Shipment Schedules page of the Order Entry Form before saving the order and then access the Allocate Lots component.

• When you access the Allocate Lots component from either the Stock Request Summary page for MSRs or the Order Entry Form for sales orders. The default action is to use the automatic lot allocation. You are taken to the Lot Allocation Detail page with a value of Auto Allocate & Save in the Action field. Click the Process button to perform an automatic lot allocation.

You can perform manual allocations:

• When you go directly to the Allocate Lots component or the Allocation Workbench and select Apply Manual Changes in the Action field. Use the Lot Allocation Detail page of the Allocate Lots component or the Allocation Workbench - Detail page to manually select the specific lot IDs for allocation to the demand line.

• When you access the Allocate Lots component from either the Stock Request Summary page for MSRs or the Order Entry Form for sales orders, select the Lot Allocation Summary tab and change the Action field to Apply Manual Changes. Then return to the Lot Allocation Detail page to manually allocate the demand line to specific lot IDs.

See Also

Managing Item Lots

Demand Sources

Understanding Partially Lot-Allocated Orders

Partial allocation is allocating only a portion of the requested quantity of a demand line. For example, a partial lot allocation occurs if a demand line has a requested quantity of 100 widgets and you lot allocate 60 widgets to lot ID A12 but leave the remaining 40 widgets un-allocated. Partial lot allocations are not allowed for material stock requests. When allocating lots for material stock requests from any source in PeopleSoft Inventory, you must fully lot allocate the line. However, you can perform a partial lot allocation on a sales order from PeopleSoft Order Management.

A sales order demand line is eligible for partial lot allocation when you:

• Enter the value of Yes in the Partials field or Partial Schedules field. This entry enables partial quantities to ship.

• Enter No in the Cancel Backorder field. This entry allows the system to keep a backorder line for further processing.

The Cancel Backorder field is important because a partial lot allocation forces the system to split the schedule line into two demand lines: one with the lot allocation and the other with the remaining un-allocated quantity. Partial lot allocations create backorders, but do not generate ad hoc replenishment requisitions. If no quantity is available to fulfill the backorder created by the partial lot allocation, the Reserve Materials process (IN_FUL_RSV) creates a replenishment request for the backorder during fulfillment processing.

You can view these fields on the demand line using the Order Entry Form. They are located on the Ship Options 2 tab in the Order Line Entry region of the Order Entry Form page or on the Shipment Schedules - Ship Options 2 page.

The values for these two fields often are supplied by default from your setup for PeopleSoft Order Management; you can define them on the:

• Buying agreement on the Header Terms page (SCON_HDR_TRMS).

• Customer-level on the General Information - Ship To Options page.

• Order group level on the Order Group Shipping Terms page.

A value entered on the buying agreement overrides the same value on the General Information - Ship To Options page. A value on the General Information - Ship To Options page overrides the same value on the Order Group Shipping Terms page.

The Order Release Request process (IN_FUL_RLS) runs against the demand tables and selects all eligible lines that match the search criteria. If the line was partially lot allocated, the allocated portion is automatically eligible for order release processing if the Auto Partial Qty Approval (automatic partial quantity approval) check box is selected for the PeopleSoft Inventory business unit on the Setup Fulfillment - Reservation page. If this check box is cleared for the business unit, you must go to the Shortage Workbench, select the order line, and then select the Approve Partial Quantity option in the Action field before the Order Release process can include the allocated portion of a partially allocated order line on a pick batch ID.

See Also

The Order Fulfillment Process

Replenishing Inventory

Picking Inventory

Managing Stock Shortages

Understanding Changes to a Lot Allocation

If your demand line is in the Unfulfilled fulfillment state or the Releasable fulfillment state, then you can use the Allocate Lots component or the Allocation Workbench to:

• Make changes to an existing lot allocation.

• Add a new lot allocation to a demand line that was not allocated during order entry.

If you have partial lot allocated a schedule line, then you can make changes only if:

• The lot-allocated portion (demand line) of the schedule line is still in the Unfulfilled or Releasable fulfillment state.

• The associated backordered demand line is still in the Unfulfilled fulfillment state.

To facilitate changes in how a particular order or schedule line is lot allocated, the system manages backordered lines associated with partial lot allocations in the background. The system automatically changes the quantity on the associated backorder line to reflect your updates. If you fully lot allocate a partially lot-allocated line, the system deletes the associated backorder line. Likewise, if you partially allocate an eligible fully lot-allocated order or schedule line, the system creates an associated backorder for the deallocated quantity.

After the Order Release process places the lot-allocated order line in the Released fulfillment state, you cannot change how a particular order line is lot allocated. The Allocate Lots component and the Allocation Workbench are unavailable for entry but can display how the quantity is allocated if you select the Include All Fulfillment States check box in the selection criteria. Any unallocated quantity indicates that an associated backorder exists for the order. If the backorder has not begun fulfillment processing in PeopleSoft Inventory (that is, the line is in the Unfulfilled state), you can lot allocate the full backordered quantity manually using the Allocate Lots component and the Allocation Workbench.

Note. All backordered lines must be fully lot allocated, regardless of how the backorder is generated.

If soft reservation processing is enabled for the requested item and the item line is not part of an order for a configured product, the Reserve Materials process could move any lines, including backordered lines, to the Releasable state when quantities become available. You cannot lot allocate any lines processed by the Reserve Materials process. However, if the Reserve Materials process creates a backorder for an order line, you can fully lot allocate the backorder line using the Allocate Lots component and the Allocation Workbench.

For lines that have been processed by the Order Release process and placed on a pick batch ID, you can use the Undo Fulfillment process to remove the lot allocation and set the demand line back to the Unfulfilled state or the Releasable state. Then you can lot allocate using the Allocate Lots component and the Allocation Workbench.

See Also

Fulfillment Process Exceptions

Promising and Reserving Inventory

Understanding Lot Allocation and Undo Fulfillment Processes

When you are returning a demand line that is currently in the Released or Confirmed fulfillment state to an earlier state by using a PeopleSoft process, you can keep the lot allocation by selecting the Keep Lot Allocations check box on the following process pages:

• The Undo Fulfillment Request process page using the action of Return to Unfulfilled, Return to Releasable, or Return to Released.

• The Order Release Request process page using the action of Return to Unfulfilled or Return to Releasable.

Understanding Processing Lot-Allocated Orders

When you save the sales order or material stock request, the system uses the lot-allocated quantity to update the following quantities:

• Reserved quantity and available quantity for the business unit-item combination (if soft reservations processing is in effect for the item).

• Allocated quantity and available quantity for the lots from which quantity was allocated.

• Reserved or allocated quantity at the storage location level.

  When you save the lot-allocated sales order or material stock request, the system determines which MSL to allocate from in the following order:

  1. Items that are not part of a storage container and have a stocking unit of measure (UOM) that matches the UOM of the order line.

  2. Items that are part of a storage container and have a stocking UOM that matches the UOM of the order line.

  3. Items that are not part of a storage container and have a stocking UOM that does not match the UOM of the order line.

  4. Items that are part of a storage container and have a stocking UOM that does not match the UOM of the order line.

  5. If multiple MSLs satisfy a particular criterion, these MSLs are sorted in ascending alphanumeric order and quantity allocated accordingly.

The quantity updates normally performed by the Reserve Materials process and the Order Release process with a Create Allocations action are performed when you save the lot allocation either:

• When entering the sales order or material stock request.

• From the Allocate Lots component.

• From the Allocation Workbench.

Understanding Processing Orders for Configured Products

The Reserve Materials process does not pick up lines for orders of configured products. To start the fulfillment process for these orders, lot allocate the quantity manually using either the:

• Sales order pages in PeopleSoft Order Management.

• Allocate Lots component.

• Allocation Workbench.

If the Lot Allocation workflow is enabled on the Inventory Definition - Business Unit Options page, the system notifies designated users that the quantity is available for the configured order line when the production ID for the configured item in PeopleSoft Manufacturing has been completed and put away in PeopleSoft Inventory. When designated users process the corresponding worklist entries, the system automatically transfers them to the Allocate Lots component so that they can lot allocate the quantity.

Note. The Lot Allocation workflow is activated only for that quantity received from PeopleSoft Manufacturing. You are not notified about quantities received from purchase orders or recorded in the Express Putaway component.

Pages Used to Process Lot-Allocated Orders