# Stock Reservation — User & Administration Guide **Module:** Materials Management (MM) **Version:** GB5 v1.0 **Date:** June 2026 --- ## Table of Contents 1. [What Is Stock Reservation?](#1-what-is-stock-reservation) 2. [Key Concepts & Terminology](#2-key-concepts--terminology) 3. [Reservation Status Reference](#3-reservation-status-reference) 4. [End User Guide — Daily Operations](#4-end-user-guide--daily-operations) - 4.1 Reserve from Physical Stock - 4.2 Reserve from Pipeline (Incoming Document) - 4.3 Unreserve — Full - 4.4 Unreserve — Partial - 4.5 Free Track a Demand - 4.6 Reassign a Reservation - 4.7 Post-Production / Post-Purchase Assignment - 4.8 MRP Auto-Reserve and Confirm - 4.9 Lot/Batch-Level Reservation (Matrix) - 4.10 Subcontracting Material View 5. [Administration Guide](#5-administration-guide) - 5.1 Reservation Configuration - 5.2 Auto-Number Setup - 5.3 User Roles & Permissions - 5.4 Audit Trail - 5.5 Period-End Procedures 6. [Marketing & Sales Perspective](#6-marketing--sales-perspective) --- ## 1. What Is Stock Reservation? In manufacturing and trading businesses, the same materials serve multiple demands simultaneously. Without a reservation system, two problems occur: - **Over-promising:** Sales commits to a delivery date without knowing those materials are already earmarked for another order. - **Priority conflicts:** On the production floor, whoever "grabs first" gets the material — regardless of which customer order matters most. **Stock Reservation** solves both by formally linking a supply source to a specific demand, so that: - The material is logically "spoken for" even before it physically moves. - Every department sees the same committed picture. - Priorities can be managed, changed, or re-routed in a controlled, auditable way. ### What Can Be Reserved? | Material Type | Examples | Reserved Against | |---|---|---| | Raw Materials (RM) | Sheet metal, chemicals, fabric rolls | Production indents, work orders | | Sub-assemblies / WIP | Partially machined parts, semi-finished frames | Next-stage production orders | | Finished Goods (FG) | Packed, labelled product ready for dispatch | Sales orders, customer deliveries | ### Where Can Supply Come From? | Source | Description | |---|---| | **Physical Stock** | Material already in the warehouse — confirmed, counted, available now | | **Pipeline Document** | Material on a Purchase Order or Transfer — expected but not yet received | --- ## 2. Key Concepts & Terminology | Term | Plain Language Meaning | |---|---| | **Demand** | Something that needs material — a Sales Order, Work Indent, Production Order | | **Supply** | Something that provides material — stock in a store, or an incoming purchase/production | | **Reserve** | Link a supply to a demand so the supply is "held" for that demand | | **Unreserve** | Undo a reservation — the supply becomes free again | | **Free Track** | Tell the system "this demand doesn't need a formal reservation" — material flows freely without reservation enforcement | | **Reassign** | Move an existing reservation from one demand to another | | **Tentative** | A planning-stage reservation created by MRP — not yet confirmed by a user | | **Confirmed** | A reservation that is active and binding; material is committed | | **Released** | A reservation that was explicitly unreserved; kept in history for audit | | **Reservation Number** | Auto-generated unique reference. Format: `SR/YYYYMM/NNNNN` (e.g., `SR/202606/00042`). Free-Track numbers use prefix `FT/`. | | **Balance Quantity** | ReservedQuantity − IssuedQuantity = the amount still available to be issued or released | | **Pipeline** | Material on an incoming Purchase Order or Transfer Order — not yet physically received | --- ## 3. Reservation Status Reference | Status | Label in System | What It Means | |---|---|---| | 1 | **Tentative** | Created by MRP auto-reserve. Awaits planner review and confirmation. | | 2 | **Confirmed** | Active reservation. Supply is committed to this demand. | | 3 | **Released** | Unreserved. Stock or pipeline returned to the available pool. Kept for audit. | | 4 | **Reassigned** | Original reservation was moved to a new demand. Kept for audit chain. | | 5 | **FreeTracked** | Demand was explicitly excluded from reservation enforcement. | | 6 | **PartiallyFulfilled** | Some quantity issued; remainder still reserved. | | 7 | **FullyFulfilled** | All reserved quantity has been issued. Reservation is closed. | | 8 | **SubcontractingOut** | Reserved material is currently at an external subcontractor. | --- ## 4. End User Guide — Daily Operations ### 4.1 Reserve from Physical Stock **When to use:** Material is already in the warehouse and you want to earmark it for a specific demand. **Who performs this:** Planning Manager, Materials Controller ``` Step 1: Navigate to MM → Stock Reservation → Click "New Reservation" → Select Source: "Stock" Step 2: Fill in the Reservation form: ┌────────────────────────────────────────────────────────────┐ │ Reservation Date: [Today's date — must be in open period]│ │ Organizational Unit: [Select your OU] │ │ For Document: [e.g., Sales Order SO-2026-001] │ │ For Document Line: [Select line item] │ │ Item: [Item code or name] │ │ SKU: [Size / variant] │ │ From Store: [Select store] │ │ Reserved Quantity: [Enter quantity] │ └────────────────────────────────────────────────────────────┘ Step 3: System validates available quantity in the selected store. If insufficient: "Insufficient available quantity." — choose a different store or reduce quantity. Step 4: Click Save. → Reservation Number assigned automatically: SR/202606/00042 → Status: Confirmed → Stock available quantity in that store decreases by the reserved amount → SO-2026-001 shows: Reserved ✓ ``` **What changes in the system:** - `TSTOCKPOSITION.RESERVEDQUANTITY` increases by reserved quantity - New `TRESERVATION` row created, Status = Confirmed --- ### 4.2 Reserve from Pipeline (Incoming Document) **When to use:** Material is not in stock yet, but is expected from a Purchase Order or Transfer. You want to earmark the incoming quantity for a specific demand. **Who performs this:** Planning Manager, Materials Controller ``` Step 1: Navigate to MM → Stock Reservation → New Reservation → Select Source: "Document / Pipeline" Step 2: Fill in the form: ┌────────────────────────────────────────────────────────────┐ │ Reservation Date: [Must be within open financial period]│ │ For Document: [Work Indent WI-2026-088] │ │ For Document Line: [Select line] │ │ Item / SKU: [Steel Grade A] │ │ From Document: [PO-2026-055 — Supplier: ABC Steel] │ │ From Document Line: [Select allocation line] │ │ Reserved Quantity: [200 kg] │ └────────────────────────────────────────────────────────────┘ Step 3: Click Save. → Reservation Number: SR/202606/00043 → Status: Confirmed → PO-2026-055 pending allocation reduced by 200 kg → WI-2026-088 shows: Reserved 200 kg / Required 200 kg → Fully Reserved ✓ ``` **What changes in the system:** - `TPENDINGALLOCATION.PENDINGQUANTITY` decreases for the supply-side PO line - New `TRESERVATION` row created, Source = Document --- ### 4.3 Unreserve — Full Release **When to use:** An order is cancelled, or you need to return the material to the available pool entirely. **Who performs this:** Planning Manager ``` Step 1: Open the reservation (via SO/WO screen or Reservation List) Step 2: Click "Unreserve" Step 3: Enter Reason (mandatory): e.g., "SO-2026-001 cancelled by customer" Step 4: Click Confirm Result: → Reservation Status: Released → Stock / pipeline quantity restored to available pool → Record retained in history for audit ``` **Restriction:** You cannot unreserve a quantity that has already been issued. The unreservable amount is the **Balance Quantity** (Reserved − Issued). --- ### 4.4 Unreserve — Partial **When to use:** The customer reduced their order quantity; you only need to release a portion. ``` Step 1: Open the reservation (Status: Confirmed, e.g., 500 units reserved, 0 issued) Step 2: Click "Partial Unreserve" Step 3: Enter: Release Quantity: 200 Reason: "Customer reduced order from 500 to 300 units" Step 4: Click Confirm Result: → Reservation quantity drops from 500 to 300 units → 200 units returned to available pool → Status remains Confirmed (still active for remaining 300) ``` **Validation:** Release Quantity must not exceed Balance Quantity. --- ### 4.5 Free Track a Demand **When to use:** A demand does not need formal reservation tracking — for example, blanket/pull-based orders, internal R&D consumption, or ad-hoc trial batches. **Who performs this:** Planning Manager (restricted — all free-track entries are visible in audit reports) ``` Step 1: Select the demand line (e.g., Internal Indent INT-2026-010) Step 2: Click "Free Track" Step 3: Fill in: ┌────────────────────────────────────────────────────────────┐ │ For Document: [INT-2026-010] │ │ Item / SKU: [Component Y] │ │ Reason: "Internal R&D sample — no stock commitment" │ └────────────────────────────────────────────────────────────┘ Step 4: Click Save Result: → Free-Track Number: FT/202606/00044 → Status: FreeTracked → No stock quantities are blocked → Appears in reservation reports as "Free-Tracked" — distinguishable from "Not Reserved" (a deliberate, visible decision) ``` **Restriction:** If an active confirmed reservation already exists for this demand+item, the system blocks free-track: *"Unreserve the existing reservation before marking as Free-Tracked."* --- ### 4.6 Reassign a Reservation **When to use:** A higher-priority demand needs the material currently reserved for a lower-priority demand. **Who performs this:** Planning Manager, Senior Materials Controller ``` Scenario: 500 units reserved for SO-2026-001 (low priority). Urgent SO-2026-099 (export, fixed deadline) needs the same stock. Step 1: Open reservation for SO-2026-001 Step 2: Click "Reassign" Step 3: Fill in: ┌────────────────────────────────────────────────────────────┐ │ New For Document: [SO-2026-099] │ │ Reassign Quantity: [500] (or partial amount) │ │ Reason: "Priority escalation — SO-099 is export │ │ shipment with fixed deadline" │ └────────────────────────────────────────────────────────────┘ Step 4: Click Confirm Result: → Original reservation SR/.../0042 (SO-2026-001) → Status: Reassigned → New reservation SR/.../0047 (SO-2026-099) → Status: Confirmed → Stock position unchanged — same supply, new demand → Full reassignment audit trail preserved in Reassignment Log ``` **Validations:** - Only **Confirmed** reservations can be reassigned. - Reassign quantity cannot exceed Balance Quantity. - New demand must differ from original demand. --- ### 4.7 Post-Production / Post-Purchase Assignment **When to use:** Material was produced or purchased without a prior reservation. Stock is now in the warehouse and needs to be linked to waiting demands. ``` Scenario: Production batch PROD-2026-300 completed — 1000 units of Product Y. Multiple SOs are waiting without reservations. Step 1: Navigate to MM → Stock Reservation → New Reservation → Source: Stock Step 2: Select From Store (where the batch is now stored) Step 3: For each waiting SO, create individual reservations: SO-2026-200 → 300 units → Save SO-2026-210 → 250 units → Save SO-2026-220 → 450 units → Save (partial — only 450 of 600 available) Result: 3 Confirmed reservations created (Mode: Standalone) ``` --- ### 4.8 MRP Auto-Reserve and Confirm **When to use:** After an MRP (Material Requirements Planning) run completes, the system automatically creates tentative reservations based on MRP demand pegging. #### Auto-Reserve (Automated — triggered by MRP) The MRP process calls AutoReserve, which: 1. Reads all demand lines from the MRP run. 2. For each demand, finds available stock across stores. 3. Creates **Tentative** reservations automatically. 4. Produces a shortage report for demands that could not be fully covered. #### Post-Planning Review (Planner action) ``` After MRP Run completes, Planner opens Post-Planning Review: ┌─────────────────────────────────────────────────────────────────────────┐ │ Item │ For Demand │ Source │ Qty │ Status │ Short │ ├─────────────┼─────────────┼────────────────┼───────┼───────────┼────────┤ │ Steel 2mm │ WI-2026-088 │ PO-055 (15 Jun)│ 200kg │ Tentative │ None │ │ Paint Red │ WI-2026-089 │ Store A │ 50L │ Tentative │ None │ │ Bearing 6205│ WI-2026-090 │ (None) │ 80pcs │ — │ 80 ⚠ │ └─────────────────────────────────────────────────────────────────────────┘ Planner actions: → Click "Confirm All" to activate all valid tentative reservations OR → Select individual lines → "Confirm" or "Reject" per line → For shortages: create purchase request or source from alternative ``` --- ### 4.9 Lot/Batch-Level Reservation (Matrix Context) **When to use:** A production Matrix specifies that a particular input lot must be used. The reservation must lock that specific lot — no substitution allowed. ``` Scenario: Matrix M-001 requires 200 kg of Resin from Lot B-2026-010 When Matrix M-001 is activated: → System auto-creates lot-level reservation: From: Store A, Item: Resin, Lot: B-2026-010, Quantity: 200 kg For: Matrix M-001 Lot Locked: YES ✓ Effect on Issue Screen: → Only Lot B-2026-010 is shown as an issuable source for this Matrix → Other lots of Resin are not available for this issue → Any attempt to issue a different lot is blocked: "Only Lot B-2026-010 is allowed for this lot-locked reservation" ``` --- ### 4.10 Subcontracting Material View When reserved material is sent to an external subcontractor for processing (heat treatment, powder coating, etc.), the reservation status changes to **SubcontractingOut**. The material is still linked to the original demand. **Subcon Tracking Report** (MM → Subcon Tracking): ``` ┌──────────────────────────────────────────────────────────────────────────────┐ │ Reservation │ Item │ Qty │ For Demand │ Subcontractor │ Sent │ Due │ ├──────────────┼────────┼─────┼──────────────┼────────────────┼────────┼───────┤ │ SR/202606/042│ Part A │ 500 │ WO-2026-015 │ HeatTech Ltd │ 01-Jun │ 08-Jun│ │ SR/202606/044│ Frame B│ 200 │ WO-2026-016 │ PowerCoat Inc │ 03-Jun │ 10-Jun│ └──────────────────────────────────────────────────────────────────────────────┘ ⚠ SR/202606/042 — past expected return date ``` **Key behaviour:** - Material at subcontractor does NOT appear as "available stock" for any other reservation. - On return, a quality check is performed. Accepted quantity becomes Confirmed again. - Process loss (e.g., 500 sent, 490 returned) is recorded; reserved quantity adjusts to actual returned. --- ## 5. Administration Guide ### 5.1 Reservation Configuration | Setting | Description | How to Configure | |---|---|---| | **BizTransactionType → Reservation Nature** | Mark a transaction type as Demand or Supply so it appears in reservation selection screens | MM Setup → BizTransactionType Master | | **Financial Period** | Reservation date must fall within an open financial period — enforced automatically | Finance → Period Management | | **Assignment Level Defaults** | Configure which assignment levels apply per module (Project / Document / FG / SubItem / RM) | MM Setup → Reservation Policy | | **AutoLink on PO Creation** | For trade/BO items: auto-create pipeline reservation when a linked PO is confirmed | MM Setup → Procurement Linkage Policy | --- ### 5.2 Auto-Number Setup Two auto-number series must be configured before go-live: | Series Key | Format Suggestion | Used For | |---|---|---| | `STOCKRESERVATION` | `SR/YYYYMM/NNNNN` | All reservation documents (Regular, AutoLinked, MRP, Matrix) | | `REASSIGNMENTLOG` | Sequential integer | Internal reassignment audit log entries | **To configure:** Finance / Admin → Auto-Number Master → Add entry with key `STOCKRESERVATION` and set starting number. --- ### 5.3 User Roles & Permissions | Action | Recommended Role | |---|---| | View reservation list | Planning Manager, Production Supervisor, Sales Coordinator | | View single reservation details | Planning Manager, Production Supervisor, Sales Coordinator | | Create standalone reservation | Planning Manager, Materials Controller | | Partial or full unreserve | Planning Manager (reason mandatory) | | Reassign reservation | Planning Manager, Senior Materials Controller | | Free-Track a demand | Planning Manager (audit-visible — restricted) | | Confirm tentative from MRP | Planner, Planning Manager | | Run Auto-Reserve for MRP | Planning Manager, System (automated) | | Mark subcon out / return | Production Supervisor, Materials Controller | | View reassignment audit log | Management, Audit/Compliance | | View subcon tracking report | Production Supervisor, Materials Controller, Management | --- ### 5.4 Audit Trail Every reservation action is permanently logged with: - **Who:** User ID and name - **When:** Exact timestamp (UTC) - **What changed:** Previous and new status - **Why:** Reason (mandatory for unreserve and reassign) **Reassignment chain:** `TREASSIGNMENTLOG` stores the complete chain — you can trace a piece of stock from its original reservation through every reassignment to its final issue. **Event log entries** are created (via Dapr pub/sub) for every write operation, categorized under `StockReservation` event category. Retention: 365 days. --- ### 5.5 Period-End Procedures At financial period close: 1. **Review Tentative reservations** — Confirm or reject all Tentative reservations before the period closes. Tentative reservations from MRP runs that are not confirmed remain unresolved. 2. **Reservation Aging Report** — Flag reservations older than a configured threshold with no issue activity. Take action: extend, reassign, or release. 3. **Free-Tracked demand review** — Confirm that no demand was incorrectly marked as Free-Tracked. Free-Track is a deliberate exception — it should not be a default. 4. **Reconciliation check** — Verify that `TSTOCKPOSITION.RESERVEDQUANTITY` for each item/store equals the sum of active stock-source reservations (Confirmed status, not deleted): ```sql SELECT ItemId, StoreId, SUM(RESERVEDQUANTITY) AS TotalActive FROM TRESERVATION WHERE RESERVATIONSTATUS = 2 -- Confirmed AND RESERVATIONSOURCE = 0 -- Stock AND ISDELETED = 0 GROUP BY ItemId, StoreId ``` Compare against `TSTOCKPOSITION.RESERVEDQUANTITY` for each row. 5. **Subcon overdue review** — Open the Subcon Tracking Report and follow up on all items past their expected return date. --- ## 6. Marketing & Sales Perspective ### Business Value — "Reserve with Confidence, Deliver with Certainty" The Stock Reservation system gives your team the ability to: 1. **Commit to orders knowing materials are secured** — Reserve FG or RM for a specific customer order the moment it is confirmed. Every downstream team sees that commitment immediately. 2. **Manage priority customers** — When demand exceeds supply, shift reservations to higher-priority orders in seconds. Free the material from one order and re-assign it to another, with a full trail of why it was moved. 3. **Sell from incoming pipeline, not just shelves** — Reserve materials from a pending PO or an in-progress production run. A customer order placed today can be linked to a production batch completing next week. 4. **Avoid allocation conflicts** — Two salespeople can no longer independently promise the same stock. Once reserved, the material is off-limits for others unless explicitly released. 5. **"Free Track" for flexible accounts** — Some customers operate on pull-based delivery (blanket orders). Mark those demands as Free Track — they bypass reservation checks but still appear in reports as a deliberate decision. ### Key Scenarios Sales Cares About | Scenario | What the System Does | |---|---| | Customer confirms order → materials in stock | Sales reserves FG instantly; dispatch team sees Confirmed reservation | | Customer confirms order → materials in production | Sales reserves against the production batch; system tracks expected availability | | Customer cancels order | Reservation Released; stock/pipeline becomes available for next demand | | Priority customer needs same stock as lower-priority order | Reassign: release from low-priority SO, reserve for high-priority SO, log reason | | High-volume key account — no per-order tracking needed | Free-track the demand; material flows without reservation enforcement | ### Reporting Visibility for Sales - **Reservation Status Dashboard:** Which SOs are Fully Reserved / Partially Reserved / Not Reserved? - **Shortage Report** (from MRP Auto-Reserve run): Which demands have insufficient stock or pipeline? - **Reservation History:** Who reserved what, when, and for which order — fully auditable. - **Subcon Tracking:** Which reserved materials are currently at external processors and when they're expected back.