Another frequent customisation that simplifies the system is to restrict NAV to only reserving what’s on inventory. By default NAV is all or nothing, setting reservations against purchase orders, production orders, planning worksheet lines and even, horrifically, against sales return orders. It will assume that any source of inventory is fair game and use it to promise to your customer!
As a consequence of this the system also restricts your ability to change source orders once reservations exist. Changing a date on a purchase order can be a nightmare when twenty sales orders have reservations against it because NAV expects you to find and cancel those reservations first so that you are free to change the supply date. While the theory that you should re-promise your customers might be correct in practise it just not practical especially when the date is coming forward.
So the compromise is to just reserve against inventory, which is when it’s in your control. Beyond that it’s an indication based on first come first served against the different sources of supply. The system will track but not reserve (with none of the restrictions relating to change applying to tracking entries).
You will need a routine that reserves the oldest demand when inventory is receipted into stock. Actually this allows you to have a priority system so that orders replacing quality issues for instance are replaced before new orders leading to invoices being paid quicker and customers being happier than they otherwise might be.
This post is part of a 6-part series. A link to rest of the posts in this series are below (updated as published);
- Part 1: Do we need Reservations at all?
- Part 2: How do you need to reserve using Dynamics NAV reservations?
- Part 3: Only Reserve against Inventory in Dynamics NAV?
- Part 4: Reserve against all inventory in Dynamics NAV?
- Part 5: Only pick quantities that are reserved?
- Part 6: Do Reservations work properly these days?