Applying Allocation Strategies to Order Lines

When you enter a sales order, you can select an allocation strategy for each line item. The strategy you select for each line determines the way NetSuite allocates inventory for each line's demand. You can assign a unique strategy for each line.

For details about creating allocation strategies, see Creating Allocation Strategies.

To apply an allocation strategy to an order line:

1. Open or create a sales order, transfer order, or work order.

2. Click the Items subtab.

3. On an item line, in the Allocation Strategy field, select a strategy.

4. Click Add or Save on the line.

5. Repeat the steps above for each line item to which you want to assign a strategy.

6. Click Save.

Default Allocation Strategy on Sales Order Lines

To streamline order fulfillment, NetSuite can automatically set the default allocation strategy on sales order lines using this priority:

1. Customer's default allocation strategy

2. Item's default allocation strategy

3. Company's default allocation strategy for sales orders

This priority provides greater control and flexibility, letting allocation strategies to be set at the customer, item, or company level.

How Allocation Strategy Defaulting Works

This section outlines how NetSuite determines which allocation strategy to apply by default on each sales order line.

When you add a new line, before you set the item:

• If the customer has a default allocation strategy, NetSuite populates the Allocation Strategy column with this value.

• If the customer doesn't have a default allocation strategy, the field remains blank or is set to the company's default strategy for sales orders.

When you set or edit the item on the line:

• If the customer has a default allocation strategy, it remains populated in the Allocation Strategy column.

• If the customer doesn't have a default allocation strategy but the item does, the field is set to the item's default allocation strategy.

• If neither customer nor item has a default allocation strategy, the company's default strategy for sales orders is used (if set).

• If a default allocation strategy isn't set at any level, the field remains blank.

• When you change the item on the order line, NetSuite automatically re-evaluates and updates the Allocation Strategy column to apply current customer and item defaults.

• You can manually edit the Allocation Strategy column at any time, selecting any active allocation strategy as needed.

Item Type Considerations

Take note of the following rules when working with kit and matrix items:

• For Kit Items – You can set the Allocation Strategy field for the parent kit item only. NetSuite automatically sets the value for the kit component items based on the strategy set for the parent line. No specific defaulting behavior is required for kit components.

• For Matrix Items – Both parent and child matrix items have the Default Allocation Strategy field. When you create a child matrix, its value is inherited from the parent (only during creation, not when updating the item).

Related Topics

• Creating Allocation Strategies
• Creating Order Allocation Schedules
• Setting Supply Required By Dates on Order Lines
• Supply Allocation Calculations
• Supply Allocation Exceptions
• Supply Allocation Exceptions Management
• Optimizing Fill Rate
• Allocating Supply to Order Demand
• Inbound Shipment in Supply Allocation
• Supply Allocation Order Management
• Supply Allocation Management

General Notices