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

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Posted on by lispyj

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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,

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lispyj 2,751 on at

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

This issue continues...

We have been utilizing Explosion reservations, but we still experience issues where items will obtain Physical Reserved status when no inventory is on hand.

So....to get back to the functionality we expect I set the Item Model Group to not allow negative on hand.

I still see, however, that items that are not marked in any way will get Physical Reserved status when I am expecting the to get Ordered Reserved status. The parameter for using Ordered Reserved is checked and the Sales Line Reservation type is Automatic.

Current Physical on hand = 319, current Physical Reserved = 319, current Ordered is 100. When I set the reservation on an On Order status line (qty 23), I expect it would receive Ordered Reserved status, since all physical on hand is reserved. The line gets Physical Reserved status and physical available updates to -23

What else could be at play here?
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Hana Xue Microsoft Employee on at

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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 2,751 on at

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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
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ColbyGallagher 3,664 on at

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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 2,751 on at

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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

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

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