Reserved Quantity

The value of the transfer order line reserved quantity is determined by the relief code.  The relief code indicates the balance type from which inventory is relieved.  If you enter a relief code of M (transferred items are relieved from manufacturing inventory), the reserved quantity for the order is set equal to the line order quantity.  The Warehouse Balance On Order and Allocated Quantity fields are updated with the line order quantity.  The net change flag is set on so that the Requirements Planning module will ensure there is sufficient manufacturing inventory to meet the demand.

Relief Code = M

Line Order Quantity = 100 units

Reserved Quantity = 100 units

If the relief code is D (transferred items are relived from distribution inventory), the reserved quantity is set equal to the distribution quantity available at the supplying company/warehouse.  The available quantity equals the balance on hand at the supplying company/warehouse (the sum of the available balance types from the Warehouse Balance File (IC140M)) minus the warehouse reserved quantity (also from the Warehouse Balance File).

Relief Code = D

Line Order Quantity = 100 units

Total On-Hand Balance = 200 units

Warehouse Balance Reserved Quantity = 150 units

Reserved Quantity = 50 units

In this example, the available quantity equals the total on-hand balance (200) minus the warehouse balance reserved quantity (150), or 50 units.  Therefore, the reserved quantity is set equal to 50 units.

You may change the reserved quantity.  For example, consider the following orders:

Order T0100            (Company 001, Warehouse DW1, Relief Code D)

Line 01

Item SR-006

Order Quantity 100

Reserved Quantity 100

Order T0101            (Company 001, Warehouse DW1, Relief Code D)

Line 01

Item SR-006

Order Quantity 100

Reserved Quantity 50          (Only 50 were available for distribution when the order was written.)

If you decide that order T0101 is more important than order T0100, he or she may manually subtract 50 (or more or less) from the reserved quantity of order T0100, line 1, effectively placing the inventory back in the available pool, and then go into order T0101, line 1, and increase the reserved quantity up to the new total available.  The 50 items might also be ordered from a different company/warehouse, if one exists.

Note:    Whenever any field on the transfer order line is changed, the reserved quantity is recalculated.  (A warning message will be displayed telling you a change has been made to the reserved quantity.)  However, the system will never automatically reduce the reserved quantity to less than that previously set, regardless of what is currently available.  This may only be done by manually changing the reserved quantity.