What is Allocation as it related to distibution

[nate100]

What is allocation as it relates to distribution.
What types of allocations are there?

I found some Sales orders that do not have any items allocated.
The way I see is that allocation is to "reserve" some parts so that is goes for that Sales Order only but what happens if you do not reserve. As long as it is in inventory, it should still go towards that Sales Order, correct?

If somebody can please explain this in detail that would be helpful.

Thank you.

 

[Kishor Chari]

Allocations against a SO entirely on 7.1.24.setup.
If allocations are done automatically by the system (std is FIFO) else can be done manually using SO manual allocations.

 

[maheshnaik85]

Manual Allocation means you can allocate FG from whatever site , location , lot serial and reference . When you do shipment against than SO, automatically quantity gets reduced from that corresponding site, location, lot or ref.

 

[Kishor Chari]

Yes It will pick manually allocated stock.