> For the complete documentation index, see [llms.txt](https://docs.xorosoft.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xorosoft.com/xoroerp-1/sales/sales-order/global-allocation-1.md). # Global Allocation ### **Streamline Inventory Management with Intelligent Auto-Allocation** Transform your inventory management experience with **Global Allocation**, XoroERP’s intelligent automation system that eliminates manual allocation challenges and ensures optimal order fulfillment across stores. Designed to simplify operations, Global Allocation automatically assigns inventory to sales orders, manages inter-store transfers, and prioritizes allocation using intelligent business rules. This comprehensive guide explains the feature’s purpose, configuration, workflow, and best practices for effective implementation.
*** ### **What is Global Allocation?** **Global Allocation**, also known as **Auto Allocation**, is XoroERP’s advanced inventory automation feature that revolutionizes order fulfillment and warehouse coordination. Traditionally, businesses had to manually allocate inventory to sales orders after receiving purchase orders — a process prone to delays and errors. Global Allocation eliminates these inefficiencies by intelligently allocating received inventory based on predefined priorities and operational rules. When a purchase order (PO) containing relevant items is received, the system automatically identifies all unallocated sales orders requiring those items. It then allocates available quantities according to business-defined priorities such as order date and creation timestamp, ensuring fairness and transparency. #### **Key Highlights** * Works seamlessly across **same-store** and **inter-store** scenarios. * Prioritizes based on **order date** and **creation date** to maintain fairness. * Provides **full traceability** with comprehensive allocation logs. * Supports **Transfer Purchase Orders (TPOs)** and **Transfer Sales Orders (TSOs)** for cross-location inventory movement. * Reduces manual workload by **up to 80%**, improves order processing speed by **45%**, and achieves **95% allocation accuracy**. This intelligent approach ensures timely order fulfillment, improves inventory turnover, and builds customer trust through consistent, fair allocation processes. *** ### **How Global Allocation Works** The Global Allocation process follows a systematic and transparent workflow to ensure smooth inventory distribution. Below is the step-by-step breakdown of how it operates: **Step 1 – Purchase Order Receipt Trigger** The process begins when a regular Purchase Order (non-dropship) is received in XoroERP. The system immediately scans for unallocated sales orders matching the received items. Dropship POs are excluded to maintain a clean separation between logistics methods. **Step 2 – Priority-Based Allocation Logic** By default, the system prioritizes Sales Orders based on **Order Date**, with **Creation Date** used as a tie-breaker. This allocation priority can, however, be configured using the **“**[**Global Allocation Order Sorting**](/xoroerp-1/configuration/application/app-config/purchase.md#global-allocation-order-sorting)**”** app configuration. **Step 3 – Same-Store Allocation** Inventory is automatically allocated to pending sales orders in the same store. This reduces handling time and accelerates fulfillment for local customers. **Step 4 – Inter-Store Transfer Automation** For sales orders in other stores, the system automatically creates **Transfer Purchase Orders (TPOs)** and **Transfer Sales Orders (TSOs)**. It also generates **waves** and **Advanced Shipment Notices (ASNs)** to manage inter-store logistics seamlessly. Once the transferred goods are received at the destination store, Global Allocation instantly assigns them to the waiting sales orders, completing the fulfillment cycle efficiently. *** ### **Inter-Store Transfer Process Deep Dive** The inter-store functionality is one of Global Allocation’s most advanced features. It enables seamless internal transfers without manual intervention, ensuring both automation and accountability. #### **Automated Steps** * **TPO & TSO Creation:** System-generated and linked to the specific sales order for transparent traceability. * **Wave & ASN Generation:** Automatically prepares required documents for movement and receipt. * **Manual Transfer Execution:** Users handle the physical shipping (TSO) and receiving (TPO) steps for security and control. * **Final Auto-Allocation:** Upon TPO receipt, the system allocates stock to corresponding sales orders and generates shipment waves automatically. #### **Smart Optimization** * **Smart Consolidation:** Combines multiple order lines for the same destination into a single transfer document, minimizing paperwork. * **Automatic Linking:** Ensures each sales order line is linked to its source TPO line, guaranteeing precise and instant allocation upon receipt. This hybrid automation ensures data accuracy while maintaining necessary physical validation steps. *** ### **Configuration and Setup Options** Global Allocation offers flexible configuration settings to tailor its behavior according to specific business needs. | **Setting** | **Options** | **Description** | | ----------------------------------- | ---------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Auto Allocation Type** |

- Do Not Auto Allocate
- Same Store Only
- Same Store and Inter-Store

| Defines whether and where automatic allocation occurs. | | **Store Selection Control** | Define participating stores | Restricts which stores participate in inter-store allocation. | | **Eligibility Criteria** |

- All Orders
- Specific Orders Only

| Determines which sales orders qualify for auto allocation. | | **Advanced Wave Management** | One Order, One Wave (Auto Merge) | Automatically merges waves after full allocation to prevent duplicate shipments. | | **Global Allocation Order Sorting** |

- Order Date

- Date To Be Shipped

|

When Order Date is selected, Sales Orders are allocated based on the earliest order date (existing behavior).

When Date To Be Shipped is selected, Sales Orders are prioritized based on the earliest shipping date, ensuring orders with nearer delivery commitments are fulfilled first.

| #### **Configuration Best Practice** Start with **“Same Store Only”** mode to learn system behavior, then expand to **inter-store** mode once your team gains confidence. This phased approach ensures stability during rollout. *** ### **Dropship Handling and Special Cases** Global Allocation intelligently differentiates between regular and dropship orders to maintain operational clarity. #### **Dropship Intelligence** * Excludes dropship POs from auto-allocation to prevent conflicts. * Automatically marks dropship items as shipped once their respective dropship POs are received. * Updates sales order statuses instantly for better visibility. #### **Mixed Order Handling** 1. **Mixed Orders:** Regular and dropship items within the same order are managed separately through their respective workflows. 2. **Pending Dropship Items:** Items without generated POs remain eligible for allocation once available. 3. **Real-Time Status Sync:** The system continuously updates item statuses across all modules for complete transparency. {% hint style="info" %} **Note:** Only regular POs are included in Global Allocation processing to ensure clean separation of workflows. {% endhint %} *** ### **Allocation Logs and Tracking** Transparency is central to Global Allocation. Every allocation action is logged with precise timestamps, item details, and document references. #### **Log Access Points** * **ASN Subform:** View allocation history directly from the PO’s *History* tab under “Allocation Logs.” * **Entity Logs Module:** A centralized dashboard showing all allocation events across the system. #### **Log Details Include** * Timestamps and allocated quantities * Linked Purchase and Sales Orders * Transfer document references (TPO/TSO) * Allocation decision hierarchy (priority logic) * Configuration settings active during the process These records enhance auditability, enable detailed performance analysis, and empower customer service teams with exact fulfillment data. ### **Global Allocation Workflow Overview** Below is a conceptual flow representing the full lifecycle of Global Allocation: 1. **PO Receipt →** System identifies items received. 2. **PO Analysis →** Matches received items with pending sales orders. 3. **Same-Store Allocation →** Direct allocation and wave creation. 4. **Inter-Store Transfer →** Auto-generation of TPO/TSO and ASN. 5. **Manual Transfer Execution →** Users ship and receive transfers. 6. **Final Allocation →** Inventory auto-assigned upon receipt. 7. **Shipment and Closure →** Wave generated for final fulfillment. Each step includes decision points where the system evaluates **inventory availability**, **store location**, and **business-defined rules**, ensuring balanced allocation across all orders. *** ### **Implementation Success and Best Practices** To unlock the full potential of Global Allocation, follow these proven practices: #### **Phased Rollout Strategy** Begin with **same-store** allocation. Monitor system logs, analyze trends, and then expand to **inter-store** once stability is confirmed. #### **Team Training Focus** Train teams on: * Reading and interpreting allocation logs * Handling exceptions or missed allocations * Understanding how configuration settings affect results #### **Performance Monitoring** Regularly review allocation statistics to identify: * Bottlenecks in fulfillment * High-demand SKUs * Stores frequently relying on inter-store transfers #### **Measurable Impact** | Metric | Expected Improvement | | ---------------------- | ---------------------------------- | | Manual Workload | ↓ 80% reduction | | Order Processing Speed | ↑ 45% faster | | Allocation Accuracy | ↑ 95% accuracy | | Customer Satisfaction | ↑ Higher due to faster fulfillment | *** ### **Key Success Metrics to Track** * Time from PO receipt to sales order allocation * Percentage of automatically allocated orders * Inter-store transfer completion rates * Inventory accuracy across locations * Customer satisfaction index related to delivery timelines *** ### **Conclusion** **Global Allocation** is more than an automation feature—it’s a strategic tool that transforms inventory management from a manual, reactive process into a proactive, intelligent system. By leveraging its automated allocation, inter-store coordination, and audit transparency, businesses can reduce operational costs, increase efficiency, and deliver a superior customer experience. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.xorosoft.com/xoroerp-1/sales/sales-order/global-allocation-1.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. 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