A reservation is a link between a supply source and a demand source. A reservation creates a permanent data link between a supply source and a demand source, and represents a guaranteed allotment of material to a specified demand source. Item reservations prevent the allocation of material you previously set aside for a sales order, account, account alias, inventory allotment, user-defined source, process batch components or, Oracle Complex Maintenance and Repair Overhaul work order components. You can also create reservations for different types of supplies such as on hand inventory, purchase orders, internal requisitions, discrete jobs, shop floor jobs, and process manufacturing batches. In addition you can create reservations for ASNs and material in receiving for Warehouse Management enabled organizations.
For on hand inventory supply, there are two types of reservations, high level reservations, and low level reservations. High level reservations contain information about the item and the organization. Low level reservations contain more detailed information about the item such as revision, lot, subinventory, serial, and locator. You use the Item Reservations window to create, view, update, transfer, and delete reservation requests.
If you are in a Warehouse Management enabled organization, and use crossdocking for fulfilling sales order demand, then the system uses planned crossdocking to create a reservation between incoming supply and sales order existing demand. At supply receipt, the system directs you to move the material to appropriate staging lane instead of to a storage location.
You cannot create reservations against items with a non-reservable material status. You also cannot create a reservation that causes on hand quantity to be negative. Though you can create reservations against individual serial items, you may not be able to reserve items because of material status. This also applies to subinventory and locator level reservations. If you cannot reserve material in a locator, it may prevent you from creating a subinventory level reservation.
If you set an item as lot indivisible, then you must reserve the entire lot quantity. A lot level reservation must reserve the full lot quantity, or disregard the entire lot. If an indivisible lot exceeds the required lot quantity, you cannot select the lot, if it surpasses the order tolerance.
Inventory does not automatically create high level reservations for lot indivisible items. If a reservation is required at sales order scheduling, you must use the Reservations window to manually create a low level reservation.
When you manually create a low level reservation, you must enter the organization, item, lot demand information, quantity, UOM, and need-by date. The system prompts you to enter the lot, subinventory, locator, and LPN if applicable. The system also ensures the full lot is reserved. If a single lot resides in multiple locations, then the system requires you to create multiple reservations to wholly reserve the lot.
When you manually create a reservation, the system ensures the on hand quantity of the lot equals the available to reserve quantity. If the on hand quantity and the available to reserve quantity do not match, then you cannot create a reservation for that lot. The system does however allow you to over reserve a lot as long as it is within shipment tolerances.
You can complete an assemble-to-order (ATO) item into an existing reserved lot only if the lot is not reserved to a different demand source. WIP validates that you can create the new reservation without violating lot indivisibility. If the new reservation violates lot indivisibility, then the completion transaction generates an error.
You can create reservations for material based on scheduled demand for a Complex Maintenance Repair and Overhaul work order. If the material does not exist in on hand inventory you can create a reservation against a purchase order or any other supply source.
If you make changes to supply sources, then the system behaves as follows for the different supply types:
Purchase Requisition: If you reduce the quantity of, or cancel a purchase requisition that is reserved against a demand, then the system reduces or the cancels corresponding reservation.
Purchase Order: If you reduce the quantity of, or cancel a purchase order, that is reserved against a demand, then the system modifies or cancels the corresponding reservation. Any other changes to the purchase order that affect the expected quantity also trigger changes to the associated reservation. Such changes include, changing the organization, or item, or closing the order line.
Internal Requisition: You cannot modify an approved internal requisition. You can however, modify the associated internal sales order. When you modify an internal sales order, the system updates the supply data. If you modify the quantity of an internal sales order, then the system also modifies corresponding reservations against the internal requisition.
Advance Shipment Notice: If you cancel a reserved ASN then the reservations engine checks to see if a reservation against the PO existed before the system transferred it to the ASN. If a previous reservation exists, then the system transfers the reservation back to the PO. If a previous reservation against the PO does not exist, then the system cancels any reservations associated with the ASN.
Process Production Batches and Shop Floor Jobs: If you make a change to a process production batch or a shop floor job, then the system updates the corresponding reservations.
Sales Orders: If you make changes such as canceling or reducing the quantity of a sales order, then order management modifies corresponding reservations.
Work Order Components: If you reserve components for a work order against inventory or a purchase order, and you modify the demand source, then the system modifies the corresponding reservations.
You can use the mobile device to perform serial triggered subinventory transfers for reserved serialized items. When you transfer the serial to another subinventory and locator, the system automatically transfers the corresponding reservation.
Note: You cannot perform a subinventory transfer transaction for staged serials.
If you reserve serials against a demand line, then pick release honors the reservations and allocates material at the serial level for reserved quantity regardless of the organization parameter that determines serial allocation. The system checks the status availability of the reserved serials and allocates them against the demand line without performing the other rules engine checks. If the serials are reserved, but fail the status availability check, then the system backorders the unavailable quantity. If a line is partially reserved at serial level, then pick release allocates the reserved serials against that line, and uses the organization level parameter to determine allocation for the remaining quantity.
If you are in a Warehouse Management enabled organization, you can create reservations against LPNs. You can reserve an entire LPN against a sales order if the LPN quantity does not exceed the unreserved quantity for the sales order line. If the LPN quantity exceeds the sales order line you cannot reserve the entire LPN. You also cannot create a new reservation for an LPN that is partially that reserved against a different demand source. You can reserve an LPN with multiple lots with a quantity less than or equal to order line quantity. The system creates separate reservations for each lot. You can perform a subinventory transfer for a reserved LPN. The system transfers the LPN and the corresponding reservations automatically.