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Automatic Sales Line Reservation is always 'Reserve Physical' When on hand Qty is Zero

Posted on by 2,695
When sales lines with Automatic Reservation are ALWAYS getting set to reserved physical even when there is not inventory on hand.  The Check Inventory dialog pops up, so I know that no on hand quantity is being found.  In AX2012, I would expect these lines to be set to 'On Order'.
 
Is this the way reservations are supposed to work in D365? We are just now implementing D365 10.38
 
Thanks,
  • Suggested answer
    Hana Xue Profile Picture
    Hana Xue Microsoft Employee on at
    Automatic Sales Line Reservation is always 'Reserve Physical' When on hand Qty is Zero
    Hi,
    For your second question, you can check out this old thread for an explanation of how sales order explosion reservation work. Hope it helps.
    Solved: Explosion reservation in Sales Order (dynamics.com)
    Best Regards,
    Hana
  • lispyj Profile Picture
    lispyj 2,695 on at
    Automatic Sales Line Reservation is always 'Reserve Physical' When on hand Qty is Zero
    Thanks Colby!  Yes, we do have negative on hand enabled.  We also have explosion reservation in use somewhere, as it came up as an error on the Planning Optimization fit gap analysis that we ran.   I had gotten an inkling that negative on hand was the culprit.  I can't say that I understand the logic. behind over reserving. 
     
    Is there any downside to explosion reservation for sales lines?  
     
    LJ 
  • Suggested answer
    ColbyGallagher Profile Picture
    ColbyGallagher 3,664 on at
    Automatic Sales Line Reservation is always 'Reserve Physical' When on hand Qty is Zero
    For your original question, it sounds like you have negative inventory enabled on the item model group associated with your item.   Explosion reservation policy is good functionality IMHO that doesn't get used enough.  Heads up though, it's not supported yet with planning optimization: https://learn.microsoft.com/en-us/dynamics365/supply-chain/master-planning/planning-optimization/planning-optimization-fit-analysis
     
     
  • lispyj Profile Picture
    lispyj 2,695 on at
    Automatic Sales Line Reservation is always 'Reserve Physical' When on hand Qty is Zero
    I am experimenting with the explosion reservation setting that seems to perform the I expected the Automatic to work.  When quantity is on hand the reservation result is Reserve Physical.  When there is no quantity available, the result is on order.  Note that we are still using the legacy Master Planning.
     
    Any clarification that someone could give would be appreciated.
     
    Thanks,
     
    LJ 

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