Set the following preferences to use enhanced allocation functionality.
The instructions below apply only if you have not enabled the Supply Allocation feature in your account. If you have enabled the Supply Allocation feature, see these topics for additional information: Supply Allocation, Setting Demand Preferences for Supply Allocation.
To set inventory allocation preferences:
Go to Setup > Accounting > Preferences > Accounting Preferences.
Make a selection for each of the following preferences and then save.
Item Commitment Transaction Ordering
Select one of the following to determine which order will have items committed to it when there is an open quantity.
Order by Expected Ship Date – Commits only based on the latest expected ship date.
Order by Order Priority – Commits based on set customer priority regardless of transaction date or expected ship date. When the preference is set to this option, an Order Priority column appears on forms for work orders, sales orders, and transfer orders. NetSuite uses this field to calculate the order priority for allocation.
Order by Transaction Date – Commits only based on the latest transaction date.
Default Commitment Options
Make selections to determine the default commitment setting on work orders, sales orders, and transfer orders. The commitment setting you choose defaults to show in the Commit Criteria field on new transactions you enter. When entering a transaction, you can change the setting from the default if necessary.
These preferences can be useful when you use Demand Planning. For example, NetSuite may create a large quantity of new work orders, but you do not want your items committed to those orders yet. You can set your preference for the Default commit option on work order preference to Do Not Commit.
Selections can be made for the following transactions:
Default commit option on sales order (requires the Sales Orders feature enabled)
Default commit option on work order (requires the Work Orders feature enabled)
Default commit option on transfer order (requires the Multi–Location Inventory feature enabled)
For each applicable transaction type, select one of the following default settings:
Available Qty – Items for this order are committed as available. Available items are shipped, and items that are not available are placed on backorder.
Complete Qty – This order ships only when all items are committed.
Do Not Commit - Items are not committed to this transaction until this setting is changed.
These preferences default to the selection Available Qty.
Perform Item Commitment After Transaction Entry
The Perform Item Commitment After Transaction Entry preference determines whether NetSuite automatically allocates items to orders.
Check this preference box to allow NetSuite to automatically allocate items based on the preference under Item Commitment Transaction Ordering. For details on setting customer priorities, see Setting Customer Commitment Priorities.
When this box is checked, NetSuite performs automatic inventory allocation when new item quantities become available. In addition, NetSuite automatically removes available quantities from sales orders, work orders, and transfer orders in some scenarios. For more information, see Committing Orders.
Clear this box if you do not want NetSuite to automatically allocate items because you want to choose which orders to allocate items to. For details on manual allocation, see Reallocating Items.