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).
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