The Inventory Allocation program is used to automatically allocate available inventory quantities to the open and backordered sales order lines and the open shop order lines in the system.
The Inventory Allocation program allows you to select the Inventory Location to be processed, and when the Allocate Available Inventory Button is pressed, the program loops through all of the items in the selected warehouse, calling the standard inventory allocation routine. The Inventory Allocation routine allocates any available quantities for each item to the orders that are waiting for the item and it updates the inventory and the other records (sales and shop order line status and quantities) as appropriate.
The Inventory Allocation process is normally run after the Inventory Reconciliation Process has been completed. This ensures that the quantities being used by the allocation routines are accurate (they are rebuilt based on the orders in your system when the reconciliation routine is run), and that any orders which are entering the scheduling window have been updated as appropriate (the Inventory reconciliation process updates the sales order lines and inventory items when an item that is outside the scheduling window falls into the window).