Stock Reservation Against the Sale Orders In ERPNext v15

In the ever-evolving landscape of optimizing business operations, managing sales orders efficiently is vital in order to ensure customer satisfaction and operational excellence. Sales Order Reservation, a critical functionality in ERPNext, plays a vital role in this process by enabling businesses to effectively allocate inventory to fulfil customers' orders.

What is a Sales Order Reservation?

Sales Order Reservation refers to the Process of reserving available inventory stock against specific sales orders. When a sales order is created and a reservation is made then those quantities are reserved and ensured that they are not allocated to other orders or purposes. This reservation helps in accurately tracking inventory and prevents overselling, thereby enhancing order fulfilment accuracy. 

Advantage of Sales Order Reservation

1. Inventory Accuracy: Ensures that available stock is reserved for specific confirmed orders, therefore minimizing the risk of stockouts or overselling.
2. Customer Experience: Improves order fulfilment timelines by prioritizing reserved inventory for confirmed sales orders therefore enhancing customer satisfaction.
3. Resources optimization: Seamlessly integrated with inventory  for automating the reservation of stock based on real-time order.
4. Forecast inventory plan: Getting accurate leftover available stock after the reservation helps in facilitating better demand forecasting and procurement plans.

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Case Study-Problem Statement

Sachin Enterprise is a growing Consumer retailer with a diverse product catalogue. They are facing challenges in managing inventory effectively, especially during peak seasons. Sachin Enterprise aims to solve the problem of inventory stockouts by prioritizing the sales orders delivery “first order, first delivery sequence ” and having an optimized inventory resource.

Solution: Implementing Sales Order Reservation in ERPNext

Steps to configure the Sales Order Reservation:

• Configure Stock Settings

Enable the stock reservation setting from the stock setting to ensure that inventory can be reserved against the sale order. Configure other settings such as automated reservation of serial and batch by enabling and setting along with particle reservation.

• Creating the Reservation against the Sales Orders

On creating a sales order, there is an option to reserve stock if enabled then this action triggers the system to create a stock reservation entry, allocating the required quantities from the available inventory to reserve stock.

• Creating Stock Reservation against the Picklist

You can make a picklist from the sales order or create a new picklist and save it then you can see the option to do stock reservation. When you click the "Reserve" button, an automatic stock reservation entry will be created and the stock will be reserved.

• Unreserved Stock, when needed

In case of order cancellation or changes you have the option to unreserve stock easily, simply navigate to the sales order or picklist, on the stock reservation menu select the option to unreserve stock and confirm the action to release reserved quantities back into available inventory.

• Track Stock Reservation Entries

Regularly review and monitor the stock reservation entries against the sales order to ensure accuracy and alignment with actual inventory levels. The stock reservation list gives us the list of all the stock reservation entries done for the sales orders along with the status of the stock reservation 

Conclusion

Sales order reservation is one key feature in ERPNext that helps to optimize inventory resource efficiency, and forecasting ease thus enhancing customer service capabilities by getting the order timely delivered, the best practice for the stock reservation has been shared in our blog. Businesses can streamline their order to delivery process through the stock reservation against the sales order reservation.

Learn more about ERPNext, via exploring our other blogs:-

• Manage Serial Number/Batch in ERPNext

• How to Set Up Company Sales Goals in ERPNext

• Customizing Core Sales Reports In ERPNext

• Automate Manufacturing Using ERPNext Software

• Create Product Bundles In ERPNext