Overview

The Sales Order Inventory Movement (SIM) reserves available inventory for a specific Sales Order and reduces the Inventory Quantity Available. In Standard Cost organizations, the SIM remains in Approved status — GL transactions for Cost of Goods Sold are not generated at allocation. COGS posts when the associated Billing is posted. This article covers how to allocate inventory to a Sales Order and how to reverse that allocation.

If your Sales Order is to be fulfilled via a Drop Ship Purchase Order, you do not need to manually allocate inventory: receiving the Drop Ship PO in full automatically creates the allocation. See Process a Drop Ship PO (Standard Cost).

In this article:

• Before You Begin
• Allocate Inventory to a Sales Order
• Verify the Allocation
• Unallocate Inventory from a Sales Order
• Important Notes

Before You Begin

Review the Create a Sales Order article before allocating inventory.

Allocate Inventory to a Sales Order

1. Navigate to Accounting Home > Create Entries > Orders > Sales Orders.
2. Select a list view other than Recently Viewed.
3. Select the Sales Order.
4. Click Allocate. The Allocate Sales Order screen displays a row for each Sales Order Line with the Product Name, Product Code, Product Description, Quantity Ordered, Quantity Allocated, Quantity Needed, and any Comments. Available and committed inventory quantities are shown by Warehouse and Location.
5. To change the allocation date, click the Allocate Date field.
   Note: With Standard Cost enabled, this sets the Allocate Date as the Movement Date on the Sales Order Inventory Movement record.
6. Under Filter Inventory, select a Warehouse and Location from the filter fields at the top of the screen. The Allocate screen displays only the inventory available at that Warehouse and Location. Leave these fields blank to see inventory across all locations.
   Note: A Warehouse or Location with an Available Quantity of 0 still appears in the filter. This lets you confirm you need to order more stock before allocating from that location.
7. In the Allocate field for each Warehouse row, enter the quantity to allocate from that Warehouse and Location. To fill all available quantities automatically, select Allocate All, beneath Allocate Date. If the product exists in multiple locations, the first location fills first; the system moves to the next location if inventory is insufficient.
8. Click Save & Refresh or Save & Complete (available at the top and bottom of the screen).
   • Click Save & Refresh to save the quantities entered for the current Warehouse and Location selection and reload the screen. Use this when you need to allocate inventory from more than one Warehouse or Location.
   • Click Save & Complete to save the quantities entered and return to the Sales Order. The Quantity Allocated on each Sales Order Line updates, and the Inventory Quantity Available decreases for each allocated product.

Important: If you are allocating inventory from more than one Warehouse or Location, click Save & Refresh after entering quantities for each selection, before changing the filter under Filter Inventory. Changing the Warehouse or Location filter without clicking Save & Refresh first discards any unsaved Allocate quantities entered for the current selection.

Verify the Allocation

To confirm the allocation was recorded correctly, navigate to the Sales Order Line and click the Related tab. Click the SIM number to open the record. The SIM shows:

• The quantity moved out of inventory and allocated to the Sales Order Line.
• The Inventory Quantity Available record the quantity was moved from.

Note: In Standard Cost organizations, the SIM remains in Approved status and does not generate GL transactions immediately. GL transactions for Cost of Goods Sold are created when the associated Billing is posted. To view those transactions after Billing posting, click the Related tab on the SIM record, then click View All in the Transactions section.

Unallocate Inventory from a Sales Order

To reverse an allocation, delete the SIM record created when inventory was allocated.

Warning: Deleted Inventory Movements are automatically removed from the Recycle Bin and cannot be recovered.

1. Navigate to the SIM record (for example, SIM-00013).
2. Click Delete. A confirmation panel displays.
3. Click Delete to confirm, or Cancel to return without deleting. A confirmation message displays and the Quantity Allocated on the Sales Order Line updates.

Important Notes

• Drop Ship orders: If the Sales Order is to be fulfilled via a Drop Ship Purchase Order, manual allocation is not required. When a Drop Ship PO is received in full, inventory is automatically allocated to the Sales Order. See Process a Drop Ship PO (Standard Cost).
• COGS posting (Standard Cost): SIMs remain in Approved status and do not post Cost of Goods Sold at allocation. COGS GL transactions are generated when the associated Billing is posted.
• Unallocation: A deleted Sales Order Inventory Movement is automatically removed from the Recycle Bin and cannot be recovered.
• Posting status: Do not create or assign a user-defined posting status as a default status on any Inventory Movement object. This will interfere with the posting of Inventory Movement records.

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