Inventory Allocation and Commitment Based on Status
The Inventory Status feature provides the following settings that affect item quantities available for commitment and allocation:
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Make Inventory Available for Commitment
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Make Inventory Available for Allocation - available only if you use the Supply Allocation feature
By default, these two boxes are checked when you create a new inventory status record. They make item quantities with the new status available both for commitment and for allocation to orders. When the status is associated with items on completed or pending transactions, you cannot edit these boxes anymore.
If you have existing inventory statuses prior to enabling the Supply Allocation feature, the Make Inventory Available for Allocation setting is enabled or disabled to match the existing Make Inventory Available for Commitment setting per status.
To enable or disable these settings for an inventory status, see Creating Inventory Status Records.
Using Statuses to Exclude Items from Allocation and Commitment
If you use the Supply Allocation feature and you want to exclude quantities from allocation, you must disable the two Make Inventory Available settings. Item quantities excluded from allocation can't be made available for commitment as well.
For example, you clear both boxes for your Damaged inventory status, which has not been used on a transaction. During an inventory count, you can physically remove damaged inventory from their storage areas and containers. On the count record, you can assign this status to the damaged item quantities. It prevents these item quantities from being allocated and committed to orders.
If you don't want item quantities to be available for commitment only, you can clear the Make Inventory Available for Commitment box and keep the other one checked. With this setting disabled, item quantities assigned to the status can still be allocated to orders.
For example, you can clear the Make Inventory Available for Commitment box for a new inventory status, named For Inspection. You assign it to received items that have not completed a quality inspection. Using this status, items that have not been inspected can't be committed to orders that you want to ship out of your location.
Clearing these settings prevents item quantities from being committed and allocated to orders within NetSuite only. When you assign items an unavailable status, be sure to physically prevent these items from being picked in your stock room or warehouse.
These settings do not apply to items on drop shipments and special order purchases. Items with an unavailable status can be allocated to sales orders marked as drop shipments or special orders. You can also receive unavailable items on the associated purchase order created from a drop shipment or special order sales order. For more information about drop shipments and special orders, see Drop Shipment and Special Order Purchases.
Available Quantity Updates Due to Inventory Status Settings
In addition to regular sales, purchases, returns, and transfers, inventory balances are also updated based on the Make Inventory Available for Commitment setting. Item quantities that you assign a status unavailable for commitment are removed from the available quantity but retained as quantity on hand. An item may appear with quantity on hand but show a lower or zero available quantity on records, saved searches, and reports.
Similarly, when items move from an unavailable to available status, the available inventory balance is incremented by the appropriate quantity. For more information about inventory balances, see Tracking Inventory Balances By Status.
For information about how items can be allocated and committed without the Supply Allocation feature, see Setting Inventory Allocation Preferences. To set up allocation with the Supply Allocation feature, see Setting Demand Preferences for Supply Allocation.