Allocated Inventory can also be explained with a case like when there's a customer who ordered the product but it has not been fulfilled yet, the product is still being kept at the warehouse/store waiting to be sent or taken later to the customer. Allocated Inventory reduces on-hand inventory in the system without affecting what's physically in stock.

Currently, there are three types of inventory status on DealPOS, which are On Hand, Allocated, and Available.

Available Inventory = On Hand Inventory - Allocated Inventory

For the illustration, you can see the table and the following steps below:

Type	Description
On Hand	The quantity expected in your warehouse
Allocated	Stocks that have been ordered by Customer but have not been Fulfilled
Available	The difference between on Hand quantity and Allocated quantity

As you can see in the table and image above, if any transaction happened on Marketplace or POS with a product that has not been sent yet, the status from the inventory of products will be set to allocated. The report will make it easier to find out how much the amount from the stock is available in the warehouse/store.

I. How to Create Unfulfilled Order

When creating unfulfilled order, the product inventory status will be set from On hand to be Allocated. To make an unfulfilled order you can follow the steps below:

Step 1. Go to Sell, Make Sales Transaction, click More Actions then Click Fulfillment

Step 2. Choose Later Fulfillment, Click Ok, then Pay Transaction

And click ok to proceed with the transaction. As you can see on the Later option, there's information about Unfulfilled products, the product will be allocated

Step 3. Go to Orders to See Unfulfilled Invoice

The status from that transaction will become Unsent and the inventory from the product will be set to Allocated.

II. How to Check the Allocated Inventory

Step 1. Go to Inventory, then Select Allocated Tab (First Option)

As you can see in the image above, there is one product from the previous unfulfilled order which becomes Allocated

Step 2. Go to Inventory Valuation (Second Option)

Aside from the Allocated Inventory menu, you can also see the information about the total Allocated Inventory in the Inventory Detail menu

In the image above, there is one Allocated Inventory from the product that has been sold previously by Unfulfilled Order.

For additional information, Inventory products on the Available status can still be able to be sold during the transaction because transactions from selling will reduce the stock from On Hand inventory, and it's called Overselling. To prevent it, we made a feature to not happen Overselling during the transaction. You can read the article below to see about Overselling and how to prevent it to happen: Configuration to prevent Overselling In DealPOS App.