When you're about to make a bundled product (a product that contains other products) you can make it using the Composite product type. If you're using the Composite product type, the stock from the composite product will depend on its component. For example: if you have 1 bundled jacket product that contains 5 jackets inside the package, if you only have 4 jackets left, the bundled jacket product cannot be sold because the component stock is not adequate.

When you're making a transaction with fulfillment later, your product will not be instantly reduced and being kept in the outlet as allocated inventory. If you're using a Composite product type, there will be two kinds of allocated inventory including Direct Allocated and Indirect Allocated.

To see the difference between Direct Allocated and Indiricet Allocated when using composite product type, you can see the content below:

I. Direct Allocated

Direct allocated is a condition where the composite product is being sold with later fulfillment (the product is sold to a customer but the delivery status to the customer is still unsent). To see the direct allocated example, you can follow the steps below:

Step 1. Check the Composite product Stock and its components

For the product, we use the composite product named "Fedora Bundle" which contains 4 pcs of "Fedora Hat" per package

Composite product component

The stock from this composite product is 5, which means the total of fedora hats included in this composite product on hand is 20

Composite product
Component product

Step 2. Make a sales transaction with later fulfillment on the composite product

Here we're going to sell the Fedora Bundle for 1 qty with fulfillment set to be later

Sales transaction with composite product

Step 3. See the Composite Inventory for variant detail on the composite product type

As you can see on the variant detail, there will be 1 Allocated inventory from that composite product. The allocated stock is also called Direct Allocated because the Allocated inventory directly comes from the composite product sales transaction with later fulfillment

Direct Allocated

II. Indirect Allocated

Indirect allocated is a condition where the component of the composite product is being sold with later fulfillment (the product is sold to a customer but the delivery status to the customer is still unsent) and it shows the indirect Allocated stock on the composite product based on its component. To see the direct allocated example, you can follow the steps below:

Step 1. Check the Composite product Stock and its components

For the product, we use the composite product named "Fedora Bundle" which contains 4 pcs of "Fedora Hat" per package

Composite product component

The stock from this composite product is 5, which means the total of fedora hats included in this composite product on hand is 20

Composite product
Component product

Step 2. Make a sales transaction with later fulfillment on the Component product

Here we're going to sell the Fedora Hat for 1 qty with fulfillment set to be later

Sales transaction with component product

Step 3. See the Composite Inventory for variant detail on the composite product type

As you can see on the variant detail, there will be 0.25 Indirect Allocated inventory from that composite product. The allocated stock is also called Indirect Allocated because the Allocated inventory Indirectly counts from the Components of the composite product sales transaction with later fulfillment.

Indirect Allocated

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