| # Inventory allocation levels Inventory allocation levels determine whether allocated-to inventory is identifiable and traceable in the warehouse by means of handling units or merely registered as allocated-to inventory. You can define allocation levels for warehouse - item combinations in the Warehouse - Item (whwmd2510m000) session and the Item - Warehousing (whwmd4100s000) session. Allocation levels The following inventory allocation levels are available: Warehouse If receipt lines of supply orders with specifications are confirmed, or allocation buffers are created, the received items and the buffered items become allocated-to inventory. No handling units are generated for these items, therefore, they are not traceable in the warehouse. Physical Item If receipt lines of supply orders with specifications are confirmed, the received items become allocated inventory. ERP LN generates handling units for the received items, and the handling units obtain specifications with characteristics identical to those of the supply order. The allocated items are identifiable and traceable in the warehouse by means of the handling units and the handling unit specifications. In all warehousing procedures, including shipment, inbound and outbound inspections, adjustments and cycle counts, handling units with specifications are used. For example, if outbound advice is created for a demand order, ERP LN advises specific handling units whose specification characteristics match those of the outbound order lines of the demand order. However, using this allocation level requires various parameter settings. For more information, refer to Handling unit setup for allocations. Handling unit setup for allocations To use allocation level Physical Item, the following setup is required: In the Implemented Software Components (tccom0500m000) details session, select the Allocation and Hard Pegging check box. In the Implemented Software Components (tccom0500m000) details session, select the Handling Units in Use check box. In the Item - Warehousing Defaults (whwmd4101s000) session and the Item - Warehousing (whwmd4100s000) session , select the Handling Units in Use check box. In the Warehouse - Item (whwmd2510m000) session: To enable the use of handling units in all warehousing processes, select the following check boxes: Handling Units in Use Receipts Inbound Inspections Inventory Outbound Inspections Shipments To automatically generate handling units during the following warehousing processes, select Always or For Ownership/Specification in the following fields: Generate Handling Units Automatically from ASNs Confirm Receipts Process Adjustments Orders Process Cycle Counting Orders To generate handling units when outbound advice is released, in the Confirm Picking field, select Yes. If not all of the above automatic handling unit generation options are selected, when one of the warehouse processes is carried out, the user is prompted to manually create handling units. Note Allocated inventory is listed by item, warehouse and specification in the Inventory by Specification (whwmd2519m000) session. In the Handling Units (whwmd5130m000) session, you can view handling units and handling unit specifications. Related topics Allocation and hard pegging overview Handling units |