Overselling is a condition where the number of orders we receive doesn't match the existing stock, then some customer orders must be canceled. To prevent overselling when making sales transactions, we provide a configuration to limit or restrict the sales if the orders made are already more than the product's stock. This case usually happens when selling in multichannel marketplaces and offline stores. To activate the configuration, you can see the explanation below.
I. Configuration
Step 1. Go to Setup, Click More Menu, Select Module
Step 2. Go to Tab Sell, Change Overselling Validation to Yes
In order to work, the Negative Inventory feature must be Disabled
II. How It Works
Step 1. Re-Check Any Product Inventory
For example, here I have a boots product with size 37, which has a stock of 5:
Step 2. Try to Make a Transaction with Fulfillment Later
Then try to Sell 3 pcs with Fulfillment Later
Step 3. Re-check Product Inventory
Then the stock will now be: On Hand 5, Allocated 3, and Available 2
Step 4. Setting Overselling Validation
If we set Overselling Validation "No", then we will still be able to sell products that exceed the available stock.
Step 5. Re-check the Changes
For example, Sell 3 pcs again and the goods are immediately sent/out, then later in stock, it will be a minus so that when the goods that were not sent will be sent to the customer, there will be customers who cannot send the goods.
Step 6. Check another Overselling Validation
If overselling is turned on, where the condition for boots is 37, the stock is 2, so if I try to sell 3 more it won't work.
Tutorial Video: Prevent Overselling
You might also like to read this article :
For an explanation regarding the allocated product: Allocated Inventory: Reserved Inventory
To check products with negative stock: How to See Negative Inventory
To manage products better, maybe you can check the following articles: Product Inventory Management
