The Reservation Service manages inventory by ensuring stock is properly allocated to customer orders. It prevents stock shortages and ensures that goods are available when needed.

How Does Reservation Work?

1. A Customer Order is Created

   • When a customer places an order, the system checks if the items are available in stock.
   • Depending on stock availability, the system follows different paths.

2. Stock Availability Check

   • If items are in stock → The system allows you to create a reservation directly using the 'Reserve Inventory' option in the Customer order document.

• • If items are not in stock→ A Purchase Order (PO) is created based on the Customer Order. Stock is reserved only when the vendor supplies the goods. If financial and warehouse documents are managed separately, reservation happens when the Goods Receipt Note (GRN) is created instead of the invoice.

         3. Reservation Cancellation (Stock is Released)

• • When the order is processed (invoice or dispatch), the reservation is removed.
  • Reservation can be canceled by:
    • Inventory Reserves (cancel reserve transaction)- 
    • Invoice
    • Goods Dispatch Note

2) The DATE and/or TIME of the Basis document in the chain of document should precede the dependent document. 

3) Reserve Creation Document should also be preceding Reserve Cancellation document. 

Reservations can be created by following documents: 

• Inventory Reserves (create reserve type of transaction)
• Invoice Received
• Goods Receipt Note

Reservations can be removed/cancelled by following documents: 

• Inventory Reserves (cancel reserve type of transaction)
• Invoice
• Goods Dispatch Note

If Reserve creation document date will be after Reserve Cancellation document

• Cancellation will not be performed, 
• Financial document can create the 2nd reserve. 

For example, if you create Goods Receipt Note and Invoice Received with current date and create Invoice and Goods Dispatch Note backdated, in this case your reserves will be still showing in the reports, and you can see double reserve on the same Customer Order or you can face with "Insufficient stock" error while posting Invoice or Goods Dispatch Note. 

4) The best way to check the current stock of the item and its reserves is to check Availability Analysis report in the Item Card (Open Item Card and go to the link Availability Analysis. Here if you double-click on the Reserved Items figure it will show you the Customer Orders for which you've made the reservation:

5) For further investigation, you can refer to the Inventory Reserves Report in Warehouse Module:

Here, if you double-click on the qty figure and select Recorder, the list of documents that have created the reserves will be shown:

6) If you see here the reserves that should be already removed, then check if: 

• The correct Customer Order is specified in dependent documents

•  The reserve creation documents precede (date and/or time) the reserve cancellation document. 

Thank you for being a FirstBIT customer!