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What is Order Allocation?

Order allocation is the process of reserving inventory from specific warehouse locations to fulfill customer orders. It ensures that:

  • Inventory is reserved before shipping to prevent overselling
  • Orders are assigned to the most appropriate warehouses
  • Multiple warehouses can be used to fulfill a single order
  • Inventory levels are accurately tracked

Allocation Process​

1. Pre-allocation​

  • Searches available warehouses and assigns the right one based on various settings
  • Does not reserve inventory but does store warehouse assignment

2. Allocation​

  • Permanently reserves inventory for the order
  • Updates inventory levels (available → allocated)
  • Required before order fulfillment

3. Commitment​

  • Moves inventory from allocated to committed
  • Occurs when order is shipped
  • Final inventory state change

Allocation Rules​

Assign to external warehouses​

You can choose whether items will be allocated to an external warehouse or not. This setting is configurable for each sales channel and will be passed to every order created in that channel. You can also overwrite this setting for individual orders during order processing.