Available Quantity Calculation In Allocation Is Incorrect When ASNs Are Received When No Allocations Have Been Created (Doc ID 2052042.1)

Last updated on MAY 01, 2024

Applies to:

Goal

Available Quantity calculation is incorrect when ASNs (Advance Shipping Notification) are received.

Scenario:
1. Create a warehouse (WH) Purchase Order (PO) for one item, quantity 2.
2. Approve the PO.
3. Do not create an allocation at this time.  It is a non-pre-mark order, so no allocations were sent with the PO.
4. Now suppose an ASN comes in for quantity 1.  Note that this ASN does not have final "destination" information, as it is just for a shipment to the warehouse.
5. Now suppose the replenishment analyst is informed of the ASN, and creates a manual allocation.
6. At this time, user can see qty 2 available to allocate, but creates an allocation for qty 1 to match the ASN.
7. The WH receives against the ASN and the shipment is received.
8. The WH processes the allocation and sends it out to the store.
9. Now suppose the analyst wishes to create another allocation for the expected second unit.
10. Problem: In the allocation, the user cannot see the 1 unit that should be available.

This is related to the calculation described in Doc ID 1935826.1 What is the Formula Used for Calculating the Available Quantity on a Purchase Order (PO)?
This calculation assumes that the po_rcvd_qty on alloc_detail is updated at the time the WH receives the product.
By looking at the code you can see this is only true provided that the inbound shipment data already has an association to the allocation destination, which in this case is not true.

Calculation is: (QTY_ORDERED - QTY_RECEIVED) - (QTY_ALLOCATED - PO_RCVD_QTY)
Which in this case is: (2 -1) - (1 - 0) = 0.

This calculation would work properly if there were pre-mark allocations whereby the po_rcvd_qty was populated.

Is there a problem with the configuration or a flaw with the calculation?
There should not be any expectation that pre-mark PO functionality is in use for calculating the available quantity as many suppliers are not capable of sending allocations as part of an ASN.

This means that the quantities cannot be allocated for POs with multiple WH shipments.
Replenishment analysts do not have proper visibility to the unallocated quantity in the Allocation tool, which leads to merchandise ending up in WH inventory rather than being fully allocated.
 

Solution

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