Global Allocation
Global Allocation, also known as Auto Allocation, is a powerful feature that automates the process of inventory allocation to sales orders when a purchase order (PO) containing the relevant items is received. This feature helps streamline inventory management and order fulfillment by automatically assigning inventory to sales orders based on certain predefined rules. The process can be configured for both same-store and inter-store sales orders, offering flexibility in how inventory is distributed across different locations.
How Does Global Allocation Work?
The Global Allocation feature is triggered when a purchase order (PO) containing the relevant items is received. Once the PO is received into the system, the inventory will automatically be allocated to the sales orders that require the items.
The allocation process prioritizes older sales orders by considering two criteria: the order date and the create date. First, the system checks the order date—meaning that sales orders that were placed earlier will receive inventory first. If several orders share the same order date, the system then uses the create date—the date when the sales order was officially created in the system—to determine which order gets inventory next. Essentially, this means that the oldest sales orders (first by order date, then by create date) will receive inventory before newer orders.
Here’s how the auto allocation process works:
Receiving the PO:
The process begins when a Purchase Order (PO) is received in the system. The system will then identify any unallocated sales orders that require the same items as those listed on the PO.
Allocation to Same-Store Sales Orders:
Inventory is allocated directly to sales orders within the same store where the PO was received. The system will prioritize allocating inventory to these sales orders first.
The system checks for unallocated sales orders in the same store and ensures the oldest orders are fulfilled first, in order of their order date and creation date.
Allocation to Inter-Store Orders:
TPO and TSO Creation: For inter-store orders, the inventory cannot be allocated directly as it needs to be transferred from the store where the PO was received to the store where the sales order is located. In this case, the system automatically triggers the creation of Transfer Purchase Orders (TPOs) and Transfer Sales Orders (TSOs). The TPO is linked to the respective respective sales order to which the inventory will be allocated
Wave and ASN Creation for Inter-Store Orders: When the system creates the TPO and TSO, it also automatically generates a wave for the TSO and an Advanced Shipment Notice (ASN) for the TPO.
Manual Shipping and Receiving: Once the TPO is created, users need to manually ship the TSO from the source store and receive the TPO at the destination store. This manual process ensures that the inventory is physically moved between stores.
Auto Allocation after Receiving the TPO: After the TPO is received, the inventory becomes available for allocation to the sales order at the destination store. The system will then automatically allocate the inventory to the linked sales order and generate a wave for the sales order, which prepares it for shipping.
Checking Allocation Logs
To enhance tracking and visibility of the allocation process, we have introduced allocation logs. These logs give details about the allocation process, so users can understand exactly how and when inventory was assigned.
Users can access these logs through ASN subform and the Entity Logs module.
ASN Subform
Users can view the auto allocated inventory for a purchase order by accessing the ASN subform.
Open the Purchase Order (PO) and go to the History tab of the PO.
Double-click on the ASN line on the History tab to open the ASN subform.
In the ASN subform, there’s a newly added "Allocation Logs" tab. When you click on this tab, it will show the allocation details specific to that PO. This allows you to see exactly how inventory was allocated to sales orders connected to that PO.
Entity Logs
A new Entity Log center has been introduced. This module provides a comprehensive list of all logs related to automatic allocations that happen within the system.
The Entity Logs will show you not just individual PO allocations but all system-wide automatic allocations that have been executed.
Setting Up Global Allocation
The Global Allocation feature is controlled via a set of configurable options, which determine how the system behaves during the receipt of POs and the allocation of inventory to sales orders.
To enable Global Allocation, you must configure the following app config:
Auto Allocation Type for Allocating Sales Orders on PO Receiving
This configuration controls how the system allocates inventory when a PO is received, determining the scope and behavior of the auto-allocation process.
Configuration Options:
Do Not Auto Allocate
If this option is selected, the system will not automatically allocate inventory to sales orders when POs are received.
Same Store Only
If this option is selected, the system will only allocate inventory to sales orders within the same store where the PO is received. The system will identify sales orders in the same store with unallocated quantities and allocate the received inventory accordingly.
Same Store and Inter-Store (Transfers)
If this option is selected, the system will allocate inventory both to sales orders within the same store and to sales orders in other stores.
Inventory is first allocated to sales orders within the same store.
For sales orders in other stores, Transfer Purchase Orders (TPOs) and Transfer Sales Orders (TSOs) are created to manage inter-store transfers.
Selecting the Store for Inter-Store Transfers
When the Same Store and Inter-Store (Transfers) option is selected, you can define which stores will be involved in the allocation process through the following app config:
Select Stores for Auto Allocation (Enabled for Same Store and Inter-Store Transfers): This app config allows you to define which specific stores can be involved in the auto-allocation process for the inter-store orders. If defined, the auto-allocation process will only work for the selected stores.
Please note that if no stores are selected in the app config, the inter-store auto allocation will work for every store in the system.
Eligibility Criteria for Auto Allocation:
You can fine-tune which sales orders are eligible for auto allocation by configuring the following app config:
Eligibility Criteria for Orders in Auto Allocation on PO Receiving This configuration determines which sales orders will be considered for auto allocation during the PO receiving process, ensuring only the relevant orders are included.
Configuration Options:
All Orders
If this option is selected, the system will scan all open sales orders with unallocated quantities and include them in the auto-allocation process.
Specific Orders
If this option is selected, only sales orders with the “Auto Lock Partially Allocated SO?” flag enabled will be considered for auto allocation.
Wave Management for Auto Allocation
You can manage wave allocation for sales orders by configuring the following app config:
One Order, One Wave with Auto Merge for Fully Allocatable Waves When enabled, this setting ensures that each wave contains only a single sales order. The system automatically merges waves when the sales order is fully allocatable. If an order is partially allocated, a locked wave is created, preventing further changes. Once the remaining items are available, the inventory is allocated, and the new wave is merged into the first wave. Once all items are allocated, the wave will be automatically unlocked and merged. Please note that this config does not apply to dropship waves.
Global Allocation - Dropship Handling
When a sales order contains a dropship item, and the corresponding dropship Purchase Order (PO) has been generated, the system will automatically exclude the dropship item from the auto-allocation wave.
The system will mark the item as shipped once the dropship PO is received, ensuring streamlined order processing.
Auto-allocation for other items (non-dropship items and dropship items for which Dropship PO has not been generated) in the same sales order will continue to function as usual, ensuring efficient inventory management.
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