DealPOS sets default stock readings taken from the On Hand stock. So, even though the stock has been reserved/booked, the system will always assume that the stock is still sufficient for sale. The Allocated Inventory Validation feature will read the stock that has been reserved so the product cannot be sold. Learn more about Reserved / Allocated Stock.
Overselling is a condition where the number of orders we receive doesn't match the existing stock, then some customer orders must be canceled. This case usually happens when selling in multichannel marketplaces and offline stores that sell with a delayed delivery system.
This article will explain how to enable Allocated Inventory Validation and how to implement it. Before using this feature, make sure that you already disable the negative inventory feature at the outlet. Learn more about Enable / Disable Negative Inventory
I. Activate Allocated Inventory Validation
Step 1. Go to Setup and click More Menu
Step 2. Select Module in the Configuration section
Step 3. Go to Sell tab then scroll down to Allocated section
Scroll down to the allocated section
Step 4. Go to Invoice Allocated Inventory Validation and set it to Yes, then click Save
II. Overselling Simulation (Invoice Allocated Inventory Validation "Yes")
Overselling occurs when the stock of products that customers want to buy is greater than the available stock in the system. The available stock will be counted from this formula:
Available = On Hand - Allocated
Step 1. Check the product inventory
Pay attention to the product stock in the picture below, On Hand is 10, Allocated is 10, and the Available stock is 0. If the Invoice Allocated Inventory Validation config is set to "No", you can still create sales transaction with stock conditions as in the picture:
Step 2. Make sales transaction and click pay
Go to the sell menu, then input the product into the shopping cart and click the pay button to complete the transaction.
In this simulation you cannot sell products because the available stock is 0. You will not be able to click the pay button or make a payment if you sell more products than the available stock.
III. Overselling Validation with Fulfillment Set as Later
If the fulfillment status from the transaction is set to later, the customer invoice will still be created even though the Invoice Allocated Inventory Validation was set to "Yes"
To prevent the oversell when creating a customer invoice with later fulfillment, we must set the Sales Order Allocated Inventory Validation to "Yes". To activate the Sales Order Allocated Inventory Validation, you can follow the steps below:
Step 1. Go to Setup and click More Menu
Step 2. Select Module in the Configuration section
Step 3. Go to Sell tab then scroll down to Allocated section
Scroll down to the allocated section
Step 4. Go to Sales Order Allocated Inventory Validation and set it to Yes, then click Save
Step 5. Make sales transaction with Fulfillment set as Later and click Pay
In this simulation you cannot sell products because the available stock is 0 even though the fulfillment status is Later. You will not be able to click the pay button or make a payment if you sell more products than the available stock.
Tutorial Video
Related Articles
For an explanation regarding the allocated product Allocated Inventory or Reserved Inventory
To check products with negative stock How to See Negative Inventory
To create a Sales transaction with fulfillment set as Later: Sell Product with Shipping/Fulfillment Later
To manage products better, maybe you can check the following articles Product Inventory Management
