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Allocate Inventory to a Sales Order

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Prerequisite

Please review the Create a Sales Order article.

Overview

Note: The Cost of Goods Sold / Inventory GL transactions associated with a Billing are recorded on the Sale Order Inventory Movement for all customers using Accounting Seed’s Weighted-Average Cost Inventory feature. 

The Sales Order Inventory Movement (“SIM”) is used to allocate available inventory to a specific sale/opportunity. Allocating the inventory reserves the available units by removing them from the inventory stock that is available-for-sale (Inventory Quantity Available object). 

In addition to capturing the inventory quantity movement, the SIM records GL transactions to Cost of Goods Sold and Inventory. The Cost of Goods Sold calculation utilizes the weighted-average cost of the inventory item. The weighted-average unit cost of the Product is pulled from the Inventory Cost object which stores the weighted-average cost calculated for that product. (The weighted-average cost is calculated when new units are purchased and added to the inventory. See Inventory Valuation - Weighted-Average Cost in the Knowledge Base for more details.)

Important: A user-defined posting status should not be created or assigned as a default status on any Inventory Movement objects. This will interfere with the posting of these records.

Do you want to:

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Allocate Inventory to a Sales Order

  1. Navigate to the Sales Order you would like to allocate Inventory to.
  2. Click Allocate.

    SO_1.png

  3. Click the Allocate Date field to adjust and date, if necessary.
    Note: With Weighted-Average Cost enabled, this sets the Allocate Date as the Movement Date on the Sales Order Inventory Movement record and the Date on the related product costing transactions.

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    Note: Click here to view the above image in full screen. 

  4. The Allocation Sales Order lists for each Sales Order Line the Product ordered, the quantity ordered, the quantity currently allocated to the order and the quantity still needed. It then provides the current Inventory available and committed by Warehouse and location. Using the highlighted input field(s), the quantity from each Inventory line to be allocated can be input. Click one of the Save buttons to save allocations.

    ERP_Lightning_6.png
    Note: Click here to view the above image in full screen. 

    If the save is successful a notification banner will be displayed. The Quantity Allocated amount will also have been incremented by the submitted amount(s) and the Inventory Quantity Available for the allocations reduced.

    If the save was not successful, the error will be highlighted and an error message provided.

  5. The Quantity allocated to the Sales Order can be verified reviewing the Sales Order Line(s) on the Sales Order. 

    SO_6.png

    Saving the Allocation generates the Sales Order Inventory Movement (“SIM”) which will reduce the Inventory Quantity Available for the allocated Products, as well as recording the GL transactions. To see the SIM, navigate to the Sales Order Line (“SOL”) and select the “Related” tab. (The SOL can be accessed by clicking the linked SOL in the Sales Order Line section shown above. The SIM can then be examined by clicking on the SIM number. 

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  6. The SIM record shows three (3) important items. 
    1. The Quantity moved out of Inventory and allocated to the Sales Order Line;
    2. The Inventory Quantity Available record that the Quantity was moved from; and 
    3. The weighted-average cost per unit used for the Cost of Goods Sold / Inventory GL Transactions. (The weighted-average cost is calculated when new units are purchased and added to the inventory. See Inventory Valuation - Weighted-Average Cost in the Knowledge Base for more details.)

      SO_8.png

  7. To see the GL transactions recorded, click on the “Related” tab on the SIM Record. 

    SO_9.png

  8. Clicking on the “View All” link in the Transactions section will provide a detailed view of the Transactions.

    SO_10.png
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Unallocate Inventory from a Sales Order

Unallocating Inventory from a Sales Order is performed by deleting the applicable Sales Order Inventory Movement.

  1. Navigate to the SIM record (for example SIM-00013) created by the Inventory Allocation to the Sales Order. To unallocate the Inventory, click Delete.

    SO_11.png

  2. A confirmation panel displays. Click Delete to unallocate or Cancel to return without unallocating. 

    SO_12.png

  3. The System will display a confirmation message.
    Note: When Inventory Movements are deleted they are now automatically emptied from the Recycle Bin as a safeguard, preventing users from undeleting them.

    SO_13.png
  4. The Sales Order Line now reflects the new Quantity Allocated. 

    SO_14.png

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Release Notes and Schedule

  • The Allocate Sales Order intermediate screen is available in the Lightning UI. 

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Release Notes and Schedule

  • An Allocate Date field has been added to the Allocate Sales Order interim screen.

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Release Notes and Schedule

  • The Cost of Goods Sold / Inventory GL transactions associated with a Billing are recorded on the Sale Order Inventory Movement for all customers using Accounting Seed’s Weighted-Average Cost Inventory feature. 
  • When Inventory Movements are deleted they are now automatically emptied from the Recycle Bin as a safeguard, preventing users from undeleting them.
  • The Inventory Balance object has been renamed to Inventory Quantity Available.

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