As orders (sales and loaner orders) for stock items are entered into the system, the system updates the inventory reserved, total reserved and allocated quantities for each item, based on the order fulfillment flags and the schedule date in each order line.
If the order line is being processed as a warehouse shipment, the order quantities are added to the inventory reserved numbers or the total reserved numbers (based on when the order is scheduled to ship). The Inventory quantities for each item are then used to order or re-order the appropriate quantity of each item required to fill your open orders. The PO Recommendations report calculates the recommended reorder quantity for each item based on the item on hand, on order, reserved and total reserved quantities, plus the reorder information (reorder point, reorder quantity and lead time) in each item. The report can also be used to automatically create PO requisitions for the recommended items and quantities. The requisitions are modified as required, then used to create purchase orders to the vendors for the items.
If an order line for a stocking item is being processed as a vendor shipment or a special order, the system will automatically create a purchase order requisition for each vendor shipment or special order line. The requisition is linked to the sales order line and is used to create a purchase order to the vendor who will be supplying the product (to you or directly to your customer).