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

Scroll down to the allocated section

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:

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:

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.

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:

Scroll down to the allocated section

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.