Reserve setting on items in a drop shipment company

The company always drop ships sales order, creating a linked PO from a req w/s, this doesn’t create reservation entries on either the Sales order or Purchase order. If this is always the case, should the reserve setting on items be set to NEVER or Optional, as presently it is sometimes set to Always, and sales orders are auto reserving against any inventory balances.

There shouldn’t be any inventory balances as all sales orders are drop shipped, but on occasion a sales return order will create inventory temporarily.


If you don’t maintain Inventory at all, except rare occasional SROs, set Reservation = NEVER.

In fact, reservation should be switched on only if it is really required, even if drop-shipments are not widely used. Many companies don’t use it, as some Salesmen have a bad habit to create fake SOs to “reserve” hot merchandise from competing colleagues…

Finally, for any particular SO it is possible to Reserve manually, if needed (functions/reserve).

Hi Peter,

Did you get an answer to your question? Did it help you? The members and moderators here on DUG use our spare time and help you for free, all we ask in return is that you spent a few seconds to let us know if we helped you solve your problem.

If any of the suggestions helped you solve your question/problem, then please click the “Verify Solution” on the answer that helped you, so that we can see that your problem is now “resolved”. Otherwise let us know how if there is something else you like to know.

Have a nice day! [:)]