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Inventory is reserved ordered

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Hello,

I have sufficient on hand inventory is available to reserve item physically still system is doing reserved order.

can anyone help me to understand why system has done reserved ordered instead of reserved physical?

Thank you

Vandan

  • Suggested answer
    Fasih Profile Picture
    Fasih 235 on at
    Inventory is reserved ordered
    In Microsoft Dynamics 365 when the system reserves an order, it typically follows certain rules and logic to determine whether to reserve the order physically or just allocate it without physically reserving inventory. If you're experiencing situations where orders are being reserved but you believe there is sufficient on-hand inventory, several factors could contribute to this behavior. 

     

    1-Backorders: If the item is marked for backorders, the system may reserve the item for the order but not physically reserve it until it's time to pick and ship.

    2-Reservation Hierarchy If an order has a higher priority or a specific reservation type configured, it may be reserved even if there is on-hand inventory available.

    3-Reservation Quantity: If you have set a reservation quantity on the sales order line or if the item has a default reservation quantity, the system may reserve that quantity even if there is more on-hand inventory available.

    OR

    Check the option related to reservations on the Inventory and warehouse management parameters page:

    The Reserve ordered items option on the General tab lets you reserve item receipts that are ordered against item issues in Accounts receivable, Project management and accounting, and Production control. If you clear this option, you can only reserve items that have been physically received.

     

  • buri94 Profile Picture
    buri94 4 on at
    Inventory is reserved ordered
    I have a similar issue when I create a Transfer Journal, which means when I relocate a product within the same warehouse. The product decreases the 'ordered reserved' quantity instead of the 'physically reserved' quantity. This happens even if, for example, there is no stock. In that case, the quantity for reserved orders is still reduced. 
     
    Can Someone Help ? 
  • Suggested answer
    Danny Bilodeau Profile Picture
    Danny Bilodeau 4,058 Super User 2024 Season 1 on at
    RE: Inventory is reserved ordered

    Hi Vandan,

    I understand your scenario.  I see two possibilities, but elimintate one leaving marking is the likely cause of the <Reserved Ordered>.

    1) You have inventory but everything is reserved on other orders. If that was the case, you would not see a quantity in the Total Available field on the reservation dialog form (teh one you encircled), so that is not the cause.

    2) The BOM line transaction is marked ot a specific supply transaction.  Same answer as my previous, however instead of looking at Sales line inventory marking you need to look at BOM line inventory marking.  Somehow, when the Production was created, there was a reference to another order. That often happens when you firm a Planned Order and leave the Standard marking in the firming dialog box. 

    To remove the marking, just select the <Mark Now> check boxes for the marked transactions (those with the checked icon) and click apply.

  • RE: Inventory is reserved ordered

    Hello Danny,

    Thank you for your reply. I understood what you are trying to explain. However I believe my question is still not answered.

    For example, I am creating production order and I have setup reservation to be done when releasing production order.

    10_2D00_06_2D00_2022-18_2D00_40_2D00_15.png

    - I have enough material available physically to reserve all my RM assigned to that production order physically. Still system is reserving some of them as reserved ordered.

    as you can see in this image.

    10_2D00_06_2D00_2022-18_2D00_43_2D00_34.png

    Why system does reserved ordered first even though I have enough on hand inventory physically available.?

    I hope I am able to make my question clear now.

    Thank you,

    Vandan

  • Suggested answer
    Danny Bilodeau Profile Picture
    Danny Bilodeau 4,058 Super User 2024 Season 1 on at
    RE: Inventory is reserved ordered

    Hello Vandan,

    If the sales order is marked to another order (purchase, transfer or Production order), the reservation will be against the items that have not yet been received.

    We call this 'marking'.  You can verify if your order line is marked to another order by selecting the sales line and clicking on Inventory>Marking

    \pastedimage1654830102878v1.png

    On the resulting screen, you can see if the sales line is mrked to another order.  If that order has not been delivered, the reservation will be <Ordered Reserved>

    pastedimage1654830305504v3.png

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