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<ManualTopic ID="/baanerp/wh/onlinemanual/000488" xml:lang="en">
   <Header>
      <Title>Allocation and hard pegging in Warehouse Management</Title>
      <Keyword type="header" order="d1e3007642">
         <Level1>Allocation and hard pegging</Level1>
      </Keyword>
      <Keyword type="header" order="d1e3007645">
         <Level1>Hard pegging and allocation</Level1>
      </Keyword>
      <Keyword type="header" order="d1e3007648">
         <Level1>hard allocation</Level1>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>The primary purpose of the allocation and hard pegging
		functionality is to link supply orders to demand orders, or to allocate
		inventory to a specific demand order. A supply order, for example, a production
		order, contains a quantity of a particular item needed to fulfill a demand. A
		demand order is a sales order or sales schedule fulfilling the demand of a
		customer.</Paragraph>
      <List>
         <ListIntro>ERP Enterprise uses <Link href="/baanerp/tc/glossary/glossary#000455" role="glossary" Update="No">specifications</Link> to:</ListIntro>
         <ListItem>
            <Link href="/baanerp/cp/glossary/glossary#000451" role="glossary" Update="No">Hard peg</Link>, in other words, to
		  link, a supply order to a demand order</ListItem>
         <ListItem>Allocate inventory to a demand order</ListItem>
      </List>
      <List>
         <ListIntro>When a demand order is created, ERP Enterprise:</ListIntro>
         <ListItem>Links a specification to the demand order.</ListItem>
         <ListItem>Allocates inventory to the demand order.</ListItem>
         <ListItem>Updates the quantity of the <GUIRef href="/baanerp/wh/wmd/whwmd2519m000#whwmd219.qall" role="manual">Inventory Allocated</GUIRef> field of the <GUIRef href="/baanerp/wh/wmd/whwmd2519m000" role="session">Inventory by Specification (whwmd2519m000)</GUIRef> session with the quantity of the demand
		  order, even if insufficient inventory is available to fulfil the demand
		  order.</ListItem>
      </List>
      <List>
         <ListIntro>If insufficient inventory is available to fulfil a demand
		  order, you can create supply orders or allocate inventory using <Link href="/baanerp/wh/glossary/glossary#000482" role="glossary" Update="No">allocation buffers</Link>. For more information, refer to:</ListIntro>
         <ListItem>
            <Link href="#hard_peg_supply_orders" role="internal">To hard peg supply orders</Link>
         </ListItem>
         <ListItem>
            <Link href="#allocating_inventory" role="internal">Allocation buffers</Link>
         </ListItem>
      </List>
      <Paragraph>You can also allocate inventory to demand orders without
		specifications. Allocating inventory without specifications is available
		without the allocations and hard pegging functionality. For information on
		allocating inventory to orders without specifications, see <Link href="/baanerp/wh/onlinemanual/000034" role="manual">Inventory commitment</Link>.</Paragraph>
      <Paragraph>Demand orders obtain no specifications if the applicable terms
		and conditions do not provide for the use of allocation and hard pegging or if
		the allocation and hard pegging functionality is not used. For information
		about the setup of allocations, hard pegs, and specifications, see <Link href="/baanerp/cp/onlinemanual/000462" role="manual">Setting up demand pegging</Link>.</Paragraph>
   </AimSection>
   <GeneralSection ID="hard_peg_supply_orders">
      <SectionTitle>To hard peg supply orders</SectionTitle>
      <Paragraph>Supply orders are generated or manually created if insufficient
		allocated or unallocated inventory is present to fulfil the demand order. If a
		supply order is generated for the demand order, a specification is also
		generated for the supply order. This specification has the same characteristics
		as the specification of the demand order. For more information, refer to <Link href="/baanerp/cp/onlinemanual/000463" role="manual">To hard peg supply orders</Link>.</Paragraph>
      <Paragraph>When outbound order lines, outbound advice lines, shipment
		lines, and so on, are created for the demand order during warehouse processing,
		specifications are generated for these lines. These specifications obtain the
		specification characteristics of the demand order.</Paragraph>
      <Paragraph>Likewise, the specification characteristics of the supply order
		are passed on to the specifications generated for the inbound order lines,
		receipt lines, inspection lines, or handling units.</Paragraph>
      <Paragraph>Parameter settings determine whether items received by supply
		orders become identifiable in inventory through handling units generated for
		the receipts line of the supply order when the receipt is confirmed. These
		handling units obtain specifications with characteristics identical to those of
		the supply order. For more information, refer to <Link href="#allocation_level" role="internal">Inventory allocation levels</Link>.</Paragraph>
      <Paragraph>When outbound advice is generated for the demand order, ERP Enterprise issues inventory
		whose specification characteristics match those of the outbound order lines of
		the demand order. Parameter settings determine whether specific handling units
		or anonymous allocated inventory is issued. For more information, refer to <Link href="#allocation_level" role="internal">Inventory allocation levels</Link>.</Paragraph>
   </GeneralSection>
   <GeneralSection ID="allocating_inventory">
      <SectionTitle>Allocation buffers</SectionTitle>
      <Keyword type="section" order="d1e3007728">
         <Level1>Allocation</Level1>
         <Level2>inventory</Level2>
      </Keyword>
      <Keyword type="section" order="d1e3007733">
         <Level1>Allocation buffer</Level1>
      </Keyword>
      <Keyword type="section" order="d1e3007736">
         <Level1>Inventory</Level1>
         <Level2>allocation</Level2>
      </Keyword>
      <Keyword type="section" order="d1e3007741">
         <Level1>Allocation and hard pegging</Level1>
      </Keyword>
      <Paragraph>You can use <Link href="/baanerp/wh/glossary/glossary#000482" role="glossary" Update="No">allocation buffers</Link> to allocate free,
		(unallocated) inventory if insufficient inventory is present. The inventory
		included in an allocation buffer is linked to a specification. As a result, the
		buffered inventory is available for demand orders with matching specification
		criteria.</Paragraph>
      <Paragraph>For more information, refer to <Link href="/baanerp/cp/onlinemanual/000461" role="manual">Allocation buffers</Link>.</Paragraph>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>Unlike supply orders, for the allocated inventory included in
		  an allocation buffer, no handling units are generated if the inventory
		  allocation level is physical item. For more information, refer to <Link href="#allocation_level" role="internal">Inventory allocation levels</Link>.</Paragraph>
      </Note>
   </GeneralSection>
   <GeneralSection ID="allocation_change_order">
      <SectionTitle>Changing allocations</SectionTitle>
      <Keyword type="section" order="d1e3007765">
         <Level1>Allocation</Level1>
         <Level2>change order</Level2>
      </Keyword>
      <Keyword type="section" order="d1e3007770">
         <Level1>Change order</Level1>
         <Level2>allocation</Level2>
      </Keyword>
      <Paragraph>Changing an inventory allocation is required, for example, if
		the order for which the inventory is allocated is cancelled. To change an
		allocation, you must use an <Link href="/baanerp/wh/glossary/glossary#000470" role="glossary">allocation change order</Link>.</Paragraph>
      <List>
         <ListIntro>For more information, refer to:</ListIntro>
         <ListItem>
            <Link href="/baanerp/wh/inh/whinh1120m000" role="session">Allocation Change Orders (whinh1120m000)</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/wh/inh/whinh1130m000" role="session">Allocation Change Order Lines (whinh1130m000)</Link>
         </ListItem>
      </List>
   </GeneralSection>
   <GeneralSection ID="calculate_unallocated_inventory">
      <SectionTitle>Determining available unallocated inventory</SectionTitle>
      <Paragraph>The unallocated available inventory is calculated in ERP Enterprise. For more information, refer to <Link href="/baanerp/cp/onlinemanual/000461#calculate_unallocated_inventory"
               role="manual"
               Update="No">To calculate available unallocated inventory</Link>
      </Paragraph>
   </GeneralSection>
   <GeneralSection ID="allocation_level">
      <SectionTitle>Inventory allocation levels</SectionTitle>
      <Keyword type="section" order="d1e3007799">
         <Level1>Allocation</Level1>
         <Level2>allocation level</Level2>
      </Keyword>
      <Keyword type="section" order="d1e3007804">
         <Level1>Allocation and hard pegging</Level1>
      </Keyword>
      <Paragraph>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.</Paragraph>
      <Paragraph>For more information, refer to <Link href="/baanerp/cp/onlinemanual/000464" role="manual">Inventory allocation levels</Link>.</Paragraph>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000460" role="manual">Demand pegging overview</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000462" role="manual">Setting up demand pegging</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000463" role="manual">To hard peg supply orders</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000461" role="manual">Allocation buffers</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000464" role="manual">Inventory allocation levels</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000465" role="manual">Demand pegging example</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>