Inventory Reservation

Overview

The Inventory Reservation feature provides a centralized mechanism for reserving inventory for specific customers or entities before fulfillment. Reservations can be created either against available on-hand inventory or against incoming inventory linked through Purchase Orders.

The Inventory Reservation Centre provides complete visibility into reservation quantities, linked order movements, consumption history, incoming inventory, cancellations, and reservation statuses from a single interface.

The system supports two reservation methods:

• On-hand Reservation – Reserves inventory directly from available store stock.

• Purchase Order Reservation – Reserves inventory against incoming Purchase Orders before inventory receipt.

Reservations progress through various statuses throughout their lifecycle, providing visibility into inventory allocation and consumption activities.

Inventory Reservation Fields

Reservation Entry

Field	Description
Store	Select the store where the inventory reservation will be created.
Item Number	Select the item being reserved.
Reservation Type	Select the reservation entity type. Available options include Customer, Customer Group, and Sales Rep.
Customer Entity	Select the customer or reservation entity associated with the reservation.
Linked Order Type	Determines the inventory source for the reservation. Available options include None (On-hand) and Purchase Order.
Effective Date	Specifies the date from which the reservation becomes active.
Expiry Date	Specifies the reservation expiry date.
Notes	Enter any additional information related to the reservation.

Reservation Quantities

Field	Description
Total Reserved Qty	Displays the total quantity reserved for the selected entity.
Total Qty on Store	Displays the available inventory quantity currently present in the store.
Total Incoming Qty	Displays the quantity reserved against incoming Purchase Orders that has not yet been received.
Total Consumed Qty	Displays the quantity already consumed through Sales Order wave allocation.
Total Cancelled Qty	Displays the quantity released back to inventory through reservation cancellation.

Linked Order Details

This section is available when the reservation is linked to a Purchase Order.

Field	Description
Order#	Displays the linked Purchase Order number.
Status	Displays the current status of the linked order reservation.
Transferred Qty	Displays the quantity transferred from the linked order.
Incoming Qty	Displays the incoming quantity reserved against the linked Purchase Order.
Cancelled Qty	Displays the cancelled quantity associated with the linked reservation.

Header level Options

The Inventory Reservation module provides the following options to help manage reservation records:

• Cancel Reservation: Cancels the remaining unconsumed reservation quantity and releases it back to available inventory. If part of the reservation has already been consumed, only the remaining quantity will be cancelled.

• Create Duplicate: Creates a new reservation by duplicating the selected Inventory Reservation record, allowing users to quickly create similar reservations without re-entering all details.

Workflow to Create Inventory Reservation

A. Creating an On-hand Inventory Reservation

An On-hand Reservation reserves inventory directly from available store stock.

Step 1: Navigate to Menu → Inventory → Inventory Reservation.

Step 2: Enter the reservation details, including the Store, Item Number, Reservation Type, and set the Linked Order Type to None (On-hand).

Step 3: Review the Total Qty on Store field. This field displays the currently available inventory quantity in the selected store.

Step 4: Enter the quantity to reserve in the Total Reserved Qty field and click Save.

The system displays a confirmation message indicating that the selected inventory quantity will be reserved for the selected customer entity.

Step 5: Confirm the reservation. The system creates the reservation and assigns a unique reservation number.

The reservation status is automatically determined based on the Effective Date:

• Open – The Effective Date is equal to or earlier than the current date.

• Aging – The Effective Date is in the future. Reserved inventory cannot yet be consumed or allocated.

Step 6: The reserved quantity is deducted from the available inventory displayed in the Total Qty on Store field.

Step 7: Create a Sales Order for the same Store, Customer, and Reserved Item.

Step 8: Release the Sales Order and create a Wave.

During allocation, the system automatically consumes reserved inventory before allocating regular available inventory.

Reservation consumption follows the priority order below:

• Customer

• Customer Group

• Sales Rep

Step 9: If only part of the reserved quantity is allocated, the reservation status changes to Partially Consumed. The consumed quantity is displayed in the Total Consumed Qty field.

Step 10: When the entire reserved quantity is consumed, the reservation status changes to Completed.

Step 11: If any reserved quantity remains unused, select Options → Cancel Reservation.

The system displays a confirmation message indicating that only the remaining quantity will be cancelled.

Step 12: After cancellation, the remaining quantity is released back to store inventory, the Total Cancelled Qty field is updated, and the reservation status becomes:

• Completed if some quantity was already consumed.

• Cancelled if no quantity was consumed.

Fully consumed reservations cannot be cancelled and remain in Completed status.

B. Creating a Purchase Order Linked Reservation

A Purchase Order Reservation reserves inventory against incoming Purchase Orders before the inventory is physically received.

Step 1: Navigate to Menu → Inventory → Inventory Reservation and create a new reservation entry.

Step 2: Enter the reservation details and set the Linked Order Type to Purchase Order.

Step 3: In the Linked Order Details section, click Link Qty. The Add/Update Linked Order Lines popup appears.

Step 4: If no eligible Purchase Orders exist for the selected item, no records are displayed.

Since linked reservations depend on incoming inventory, a Purchase Order must first exist for the selected item.

Step 5: Navigate to Menu → Purchase → Purchase Order. Create and save a Purchase Order for the required item and quantity.

Step 6: Return to the Inventory Reservation and reopen the Link Qty popup.

Step 7: Select the Purchase Order and enter the quantity in the Reserved Qty (Current) field. Click Close.

The system automatically adds the Purchase Order to the Linked Order Details section. The reservation line status is updated to Incoming, and the reserved quantity is reflected in the Total Incoming Qty field.

This indicates that inventory has been reserved against incoming stock that has not yet been received.

Step 8: Click Save. The reservation is created with an Incoming status.

Step 9: Process the inbound inventory. Release the Purchase Order, create an ASN, receive the ASN, and then close the ASN.

Step 10: Once the inventory is received, the reservation status changes from Incoming to Open. The reserved inventory is now available for consumption.

Step 11: Create a Sales Order for the same Store, Customer, and Reserved Item.

Step 12: Release the Sales Order and create a Wave.

During allocation, if only part of the reserved quantity is consumed, the reservation status changes to Partially Consumed.

If the entire reserved quantity is consumed, the reservation status changes to Completed.

Use the Show Reserved Lines toggle in the Add/Update Linked Order Lines popup to control which Purchase Order lines are displayed. When enabled, only lines with existing reserved quantities are shown. When disabled, all eligible Purchase Order lines for the selected item are displayed.