Inventory Allocation

Question, if I submit a REQ for a stock item and that item is not currently available, that REQ/Demand stays open until the item becomes available via PO reciept, for example. However, we cannot figure out why the demand is not processes when that item becomes available via IC24 adjustment. Anyone know what we are missing? Do we have to do an WH20 or WH110 to make that item available?

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jon-athey

If the Requesting Location is set to fill back orders the demand will remain until you run WH110 to allocate the back order. We have WH110 scheduled to run daily @ 9 AM after our main supplier delivery has been received.

todd-brown

That is what I thought. Thanks

todd-brown

I am having trouble understand what 'allocated quantity' means. By the way I am not an inventory person.

todd-brown

I had someone send me this, but I am still not getting it. If I submit a REQ for 1 widget and we have widgets in stock is this saying I wont get that widget unless I run the WH110?

WH110 allocates inventory quantity for released documents (RQ and OE). The program updates the allocated and backordered quantities for specific documents. WH130 is run to print the pick list for documents that are released and have items allocated to them. This program creates a shipment and assigns shipment numbers by inventory location. Batch numbers are assigned sequentially by location for each run of the report. You can have both requisitions and orders on the same batch, or they can be on separate batches. A shipment is either for orders or requisitions;
you cannot have both orders and requisitions on the same shipment. Shipments are completed in WH32

jon-athey

Allocated quantity just means a quantity that has been "set aside" for a particular requesting location.

Whether you have to run WH110 to allocate stock depends on how you have allocation set up in IC01 (Company). You can set up each IC company to have either batch or online allocation. If batch, as requisitions for stock (or orders if you use OE) are released the demand is created but no stock is allocated- meaning, if there's a demand for 10 widgets and SOH=100 then allocatable quantity is still 100 because the system hasn't "set aside" any quantities for the locations. You have to run WH110 to allocate the quantities. This set up can be used if you need to prioritize allocation- say you want the OR or Cath Lab to have priority for supplies over other departments.

If allocation is set to online, which I believe most probably are, stock is allocated immediately in the order the demand is created (as requisitions are released). So if there's a demand for 10 widgets and SOH=100 then allocatable quantity is 90. When allocatable quantity drops to 0 any additional demand goes to backorder status if the Fill/Kill flag is set to F for the requesting location. The demand is killed if the flag is set to K.

In both cases WH130 is run to create the shipment and close the shipment in WH32.

todd-brown

Okay great, we are set to online allocation. So our issue is that if we do an inventory adjustment on an item and there is a backorder for that item, the inventory adjustment does not trigger that backorder to be filled. Only PO receipt does. Any idea why?

jon-athey

To allocate backorders you have to run WH110. Then run WH130 to create the pick list/shipment. Even with a PO receipt you still have to run WH110 to allocate the backordered quantity.

todd-brown

Okay perfect, that right there is what is confusing me. So normal online allocation handles regular reqs, etc, but if I have a backorder I have to run WH110 for an inventory adjustment to trigger that fill, why? Is that a Lawson thing? Why would I not want that inventory adjustment to fill backorders?

jon-athey

All backorders for inventory have to be allocated via WH110 regardless of how the SOH was replenished- either via PO receipt (PO30), direct receipts (IC20), adjustments (IC24), negative issues (IC21), or requisition return (RQ35). I have WH110 set to run daily so backorders are processed within 24 hours of when inventory has been replenished.

todd-brown

Gotcha. Thanks for the info.

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