Hi Everyone,
We are experiencing an issue in Dynamics 365 Finance & Operations where a Sales Order line allows inventory reservation from a different Site/Warehouse/Location than the one specified on the order line.
Scenario
- A Sales Order is created for Warehouse A.
- Stock is unavailable in Warehouse A but available in Warehouse B.
- From the Inventory Reservation form, the system allows reservation from Warehouse B without updating the Sales Order line.
- The Sales Order is invoiced showing Warehouse A, while inventory is actually deducted from Warehouse B.
Impact
- Incorrect Gross Profit reporting.
- Inventory variances between warehouses.
- Mismatch between the warehouse recorded on the Sales Order and the warehouse from which stock is physically issued.
Question
Is this standard D365 F&O behavior, or is there a configuration or customization that can restrict reservations to the Site/Warehouse/Location specified on the Sales Order line?Has anyone encountered this issue, and if so, how was it resolved?
Thank you in advance for your guidance.

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