The Allocation process allows you to assign specific Inventory items to various "consumers" of Inventory. These assignments do not affect stock quantities or automatically fill orders. Allocation is only a tool to help with planning between Orders and Inventory. This can be very helpful with managing high volume products that are often out of stock (i.e. Back Orders.)
An Allocation is made up of two components, a Source and a Target.
- A Source is a location where the stock is coming from and includes Quantity On Hand, Quantity on PO, and Quantity In-Transit.
- A Target is the destination to where the Source is being assigned and includes Sales Orders, Back Orders, Work Orders and non-shipped Warehouse Transfers.
There are two ways to run the Allocation process; Manual or Automatic.
Note: Allocations can only link Sources and Targets that are located in the same Warehouse. There are no cross-Warehouse Allocations.
Every product in your Inventory has its own Allocation tab. To view, navigate to Inventory -> Products and open a Product record. You will see the Allocation tab on the far right.
- This drop down menu is used to view Targets, Sources and Allocations within a specific Warehouse. There is also an option to view All Warehouses at once.
- This section lists all the available Sources for this Product in the specified Warehouse. Sources are consumed in the order they appear in this list.
- This section lists all the available Targets for this Product in the specified Warehouse. Allocations are filled in the order they appear in this list.
- This section lists all the existing Allocations for this Product in the specified Warehouse.
- This button is used to manually assign Allocations. See Running the Allocation for more details.
- The Trash icon is used to delete selected Allocations and frees up the Target and Source to be allocated differently, if needed.
- This button updates the Source, Target and Allocation sections with any changes that have been made.
Priorities & Locks
Both Sources and Targets have associated priorities. Priorities of the Targets can be manipulated.
- For Sources, on hand stock will always have the highest priority (sorted by lot number.) Inventory that is on PO or In-Transit follows next (sorted by its expected arrival date with earlier dates having higher priority.)
- For targets, the standard priority determination used is Sales Order line items have the highest priority, followed by Back Orders and then Work Orders. All of these are sorted by their Date Required. The Target with the lowest priority is Warehouse Transfers (sorted by estimated ship date.) Priorities assigned to a Target can be manually changed. If you look at the Target section of the above screenshot, you will see that the very first column is Priority. Clicking and dragging a target can move it moved up and down in the Priority list. Targets are then filled in the order in which they appear in the list.
Each time the Allocation process is run, all non-locked Allocations are deleted and the Source and Targets are reset. When an Allocation is locked the associated Source and Target will not be reset and the link will be maintained. This is useful if a Purchase Order is created for a specific Sales Order and you need to keep them together.
To lock an Allocation, go to the Allocation section at the bottom and you will see a field called Locked. Allocations will be False by default. Double-clicking on this field will change the value to True, which will lock the Allocation.
1. The Manual Allocation Process
To Manually create an Allocation you'll need to navigate to the Allocation tab on a Product record.
- Highlight a Source.
- Highlight a Target.
- Click the Allocate button.
2. The Automatic Allocation Process
To Automatically create Allocations:
- Navigate to the Product window.
- Highlight the Products you wish to Allocate.
- From the Action Menu select Allocate Stock.
Note: If you don't highlight any Products, all of the Products in the list will be Allocated.
2.1. Automatic Allocation cont'd
- Select a Warehouse - From the drop-down list select the Warehouse to run the Allocation process on. You can select all Warehouses or one specific Warehouse.
- Delete Locked Allocations - If this box is checked AV will delete Allocations that have been marked as True. See Locks above for more details on locked Allocations.
- Create detailed log (slow) - If this box is checked AV will create a tab-delimited text file called alloclog.txt in the directory where the AcctVantage Client application is located. This file can be opened in Excel®.
Note: The Automatic Allocation process will Allocate the highest priority Targets first by using the soonest available Inventory within the same Warehouse.