Dear Nate100,
there are two meaning of item allocation in my understanding.
anyone please help if my explanation are wrong....!!!!
Once, is item allocation for sales and Second, item allocation for production .
Item allocation for sales means the we are create SO for the customer and we are allocate the item stock for those customer.
For example we have stock 100 and the SO was 50 and we are allocate the stock for those SO's. So in system, qty on hand is still 100 with the allocate qty for particular so was 50. This 50 cannot be assign for another SO unless we are unallocate the stock.
the same meaning for item allocation for production but the SO's are become WO .
hope this little explain are match with your expectation.
Thanks
Regards
Symelt