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.
If it is a partial delivery → the system will automatically reserve stock if the Goods Dispatch Note (GDN) is created based on the Customer Order.
3. The date and/or time of the Basis document in a document chain must always be earlier than that of the dependent document.
4. A Reserve Creation Document must be recorded before the corresponding Reserve Cancellation Document to ensure proper processing.
If a Reserve Creation Document is dated after the Reserve Cancellation Document, the cancellation process will not be executed. Additionally, a financial document may generate a duplicate reserve.
Example Issue:
If you create a Goods Receipt Note and Invoice Received using the current date but backdate the Invoice and Goods Dispatch Note, reserves may still appear in reports. This could lead to duplicate reserves on the same Customer Order or trigger an "Insufficient stock" error when posting the Invoice or Goods Dispatch Note.
5. The most effective way to verify the current stock of an item and its reserves is by using the Availability Analysis report within the Item Card.
To access this:
- Open the Item Card
- Click on the Availability Analysis link
- Double-click on the Reserved Items figure to view the Customer Orders associated with the reservation.
6. For a more detailed investigation, you can review the Inventory Reserves Report in the 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:
7. If you notice reserves that should have already been removed in the Inventory Reserves Report, verify the following:
- The correct Customer Order is referenced in the dependent documents.
- The Reserve Creation Document has a date and/or time earlier than the Reserve Cancellation Document to ensure proper processing.
Thank you for being a FirstBIT customer!