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Supply chain | Supply Chain Management, Commerce
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Production Orders Reserving Registered PO Material Before Product Receipt

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Hi everyone,
I am facing a timing and reservation conflict in D365 F&O between our inbound receiving process and production order release.
Our Scenario:
  1. We receive raw materials against a Purchase Order using the Warehouse Mobile App.
  2. The material is registered in our receiving location (e.g., 'RECV') using a mixed license plate. Its inventory transaction status is now Registered.
  3. At the same time, Production Orders requiring this raw material are estimated and Released.
  4. Receiving location is not part of my location directive of raw material picking type.
The Problem: Because the production orders are released, the system immediately creates a physical reservation against the "Registered" material that is still sitting at the receiving dock.
This early reservation is causing critical roadblocks. When we attempt to post the Product Receipt for the Purchase Order, it fails because the inventory is already tied to the production order. We receive the following errors:
  • "Cannot be reserved because only 0.00 are available in the inventory."
  • "The inventory on-hand related to the quality order did not get blocked. The reason for this could be due to receipt transaction is reserved by issue."
Because the Production Order (the issue) has already physically reserved the inventory, the system cannot post the receipt, nor can it execute the inventory blocking required to trigger our Quality Orders.
My Questions:
  1. How can we restrict Production Orders from physically reserving material that is only "Registered" and hasn't been product receipt yet?
  2. What is the standard best practice to ensure Product Receipts and Quality Order blocking can occur without being blocked by Production reservations?
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