The Reserved ordered items inventory parameter

So I must admit I’m a bit conflicted about the best way to set this parameter. I like to leave it off, but other consultants I’ve worked with think that it should be on.

Inventory management > Setup > Inventory management parameters > General:


So what does it do? Well it lets you reserve from open supply orders as well as physical inventory. By supply orders I mean purchase orders, production orders, or transfer orders.

So the first thing you might notice is the on-hand display. With the parameter selected I see:


But with it off, the system shows:


Let’s leave ‘Reserved ordered items’ blank, and create a sales order for 20. If I have Automatic reservation enabled, when I create the sales order I’ll see:


Fair enough. I’m ordering 20 and there are only 11 in the warehouse, so the system’s asking me what I’d like to do.

Now let’s repeat that with the ‘Reserved ordered items’ ticked:


The system silently accepts the sales order, and when we look at the inventory transactions we’ll see:


We’ve reserved the 11 from Physical inventory, and the balance from the Open purchase order (‘Reserved ordered’).

Personally, I think that’s a bit weak – if you were thinking of using ‘Reserve ordered items’ you should also be looking a ATP (Available to promise) delivery date control. Lachlan Cash, in his most excellent blog has done a series of postings on ATP http://organicax.com/tag/atp/.

The situation’s slightly better if you switch off Automatic reservation and perform the reservation manually (Inventory > Reservation from the sales order line):


The system is showing me that I don’t have enough physical inventory – but again when I click on the ‘reserve lot’ button the system silently reserves against the open purchase order:


Of course, with the ‘Reserved ordered items’ parameter switch off the reservation will only reserve from available physical inventory:


But really in a busy customer service department who’s going to be reserving inventory manually?

As always, there are exceptions. If you create a purchase order (or a production order) from the sales order line, for instance:


Your sales order line and purchase/production inventory transactions are marked, and the sales order line inventory transaction shows ‘Reserved ordered’ regardless of the fact that in this case we have not selected the Inventory management parameter ‘Reserve ordered items’.

Lastly, when you receive the open supply order, the sales order line inventory transactions that have the status ‘Ordered reserved’ are automatically updated to ‘Physical reserved’.

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Desert island customisations 3 of 8

Counting down of my favourite modifications. There are lots of variants of this one, and this variant was developed by Steve Koppens (lately of Intergen, now of Microsoft). It’s a customisation that lets you define a colour bar, optionally with some text, that’ll appear on virtually every form – so you can know at a glance which environment (TEST or PROD) and which company you’re logged into. Bet you’ve never spent all morning configuring the system only to finally look at the bottom of the form and notice that you’ve been logged into the wrong system?

So in this customisation there’s a ‘Configuration’ button on the Company form, Organisation administration > Setup > Organisation > Legal entities:


It allows us to define different text that’ll be displayed (although mostly these elements can be displayed in the status bar of standard forms), but more importantly it lets us define the colour of the text bar – which shows on pretty much every form throughout the system. It’s a real time-saver.

Desert island customisations 2 of 8

So, if you could only make 8 customisations to Dynamics AX what would they be?

Here’s my number 2. Number 1 is here .

On the inventory on-hand form there’s a ‘Quantity adjustment’ button. Well there is if you’re running with a System Administrator user role – most normal users would not have access to that button, because although it’s incredibly useful when you’re testing the system it isn’t actually a button that you’d want a normal warehouse user to have access to. Apart from the dubious advantage of users being able to correct on-hand inventory without restriction – the button also suffers from the disadvantage that it writes a ‘Counting’ inventory transaction without reference to a source document journal. Inventory management > Common > On-hand:


But there is a function that would be useful to a normal warehouse worker, and that’s a ‘Quick transfer’ button. In this customisation we’re allowing the user to select some on-hand inventory and then the system opens a data capture form that lets them define a new location, and then writes and posts a transfer journal:


There are a few nice things about this modification: firstly creating a transfer journal is no fun at all, you have to specify the from and to inventory dimensions and the system doesn’t help you with any useful defaults; secondly, the transfer journal lets you change all the inventory dimensions, so it’s possible to accidentally change configuration or batch number; and finally, to add insult to injury, you have to enter the transfer journal line quantity as a negative (because it’s an issue from the ‘From location’). Yes, it’s true, I really don’t like typing transfer journals – but I really like it when we have added a Quick transfer button to the On-hand form.