During the Sales Order and Shop Order Entry process, the system checks the available quantity for each item being processed. The available quantity is determined by taking the on hand quantity for the item, subtracting the safety stock level defined for the item and subtracting the quantity that has already been allocated for the item. If this amount is greater than 0 and the item is set to automatically allocate, the system will allocate the available quantity to the order. If the available quantity for an item is not sufficient to fill the order quantity from stock, and the order is not a vendor shipment, or the auto allocate flag in the item is set to N, the orders lines are backordered (sales order lines), or left as open un-allocated lines (shop order lines).
If the customer has safety stock available to them, based on the existence of safety stock records for the customer and item combination being ordered, the system will send an alert message to the safety stock administrator to let them know that the order is backordered, and safety stock is available for the customer. This allows the operator to allocate inventory to the order line.
To fill a sales order from safety stock the Manual Allocation program is used. The Manual Allocation program displays all of the open and backordered sales and shop order lines for a specific item in a specific warehouse location, and it allows the operator to manually allocate and de-allocate the available quantity for the item. The Manual Allocation program also allows the operator to view the safety stock detail that has been entered for the selected item.
The System Control File Parameter F248:710S11ED can be used to control which operators may manually allocate and de-allocate inventory quantities in the Manual Allocation Program. If the Parameter is set to Y, the operator is allowed to view, allocate to or de-allocate from the order lines displayed in the program. If the parameter is set to N, the operator can access the Manual Allocation program but they are blocked from allocating to or de-allocating from the orders displayed in the program.
If the operator has been granted rights to allocate or de-allocate in the program, then they may adjust the allocation for the item. In this case, the system treats the safety stock as available inventory, that can be allocated, and it is up to the user to correctly determine which orders should receive any available stock.