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Advanced Stock Allocation

Last updated 22/01/2021

How to activate and use Advanced Stock Allocation.

Overview


Advanced Stock Allocation allows you to set aside incoming stock to a specific channel or business unit. This helps you to optimize stock levels for each unit/channel, eliminating the need for you to move stock from one unit/channel to fulfill an order in another using the time-consuming virtual branch transfer workaround.

Activating Advanced Stock Allocation

By default, Advanced Stock Allocation is not enabled. To begin using this feature, contact Cin7 Support to select the “Enable Stock Allocation” option in your Admin settings.

Setting Up Branches for Advanced Stock Allocation 

BRANCH SETTINGS

Once the feature is enabled, you will need to create an Allocation Branch and link it to an existing Warehouse/Distribution Branch. To do this:

  1. Go to Settings and select Branches.


  2. Select Create New Branch.
  3. Select "Stock Allocation" in the Branch Type drop-down.
  4. Select the existing branch that holds the stock quantities you want to link to your Allocation Branch.
  5. Set the branch as the Distribution Branch.
  6. Save the settings.

CRM SETTINGS

Changes can be made to an existing branch through the CRM module. To do this, search for either the branch name or set the Contact Type dropdown to Branches to filter your list. Then:

  1. Select the branch name to access the details area and make the required changes.

  2. Save settings.
Allocation Module

Now that the Allocation Branch is linked to a Warehouse/Distribution Branch, it is possible to transfer some of the stock available quantity from the warehouse branch to the allocation branch. This will reduce the stock available in the warehouse branch and increase the stock available in the allocation branch. Stock on hand will not be affected as this value will always remain at the warehouse branch.

Transferring Available Stock to a Stock Allocation Branch

Enabling Advanced Stock Allocation adds a new module under Stock in the left navigation pane. You will use this module to transfer available stock to a stock allocation branch. (We refer to this here as an allocation transaction). To transfer stock to an allocation branch:

  1. Select the Stock Allocation module under Stock in the left navigation pane.
  2. Select New Stock Allocation.
  3. Select the Allocation Branch where you will make stock available.


    Note: The Warehouse Branch that you linked to the Automation Branch will be selected automatically.



  4. Enter the product and quantity you would like to transfer to the Allocation branch.
    Selecting the “Stock Type” column will show a summary of stock currently available for allocation in the Warehouse Branch.
  5. Complete the allocation transaction.

In the Products list screen, you will now see that adjusted stock quantities. With All Branches selected, the SOH will not be affected and the stock available will also show an unchanged total.

If you filter the product list to specific branches, you will see a difference in the stock numbers. If you select the Allocation branch, you will see that Stock on Hand is zero and the Allocation stock number will represent the quantity from the Stock allocation transaction.

Selecting the quantities will give a breakdown of how the total is made up.

Creating a Sales Order Against a Stock Allocation Branch

To draw down stock assigned to a specific Allocation Branch, you will need to create a new sales order against that branch. This follows the same process as a standard sales order, however, when the Allocation Branch is selected, the linked Warehouse will show as a "Distribution Branch".

When the dispatched date has been filled in for the sales order, the allocated stock quantity at the Allocation Branch will decrease by the dispatched amount. The Stock on Hand for the Warehouse Branch will also decrease by the dispatched amount.

Stock popup

Reversing Stock Allocation

If a stock allocation branch has an allocation that needs to be moved back to the warehouse branch, this is also completed through the Stock Allocation module.

Type or search for the product that has an allocation quantity to reverse, in the Qty Allocated column enter a negative quantity to move the allocation quantity from the allocation branch back to the warehouse branch. When this is completed the stock available number in the allocation branch will reduce and the stock available number at the warehouse branch will increase, the stock on hand quantity will remain unchanged.

If there is insufficient allocated stock to move back, an error message will be shown.