Stock Reservation

The process of setting aside a specific quantity of goods in your warehouse for a specific purpose, like a project, a client, or a sales order, is called stock reservation, sometimes referred to as inventory reservation.

1. Prerequisites

Before using Stock Reservation, you need to enable it.

Go to: Stock > Settings > Stock Settings

Enable the checkbox: *Enable Stock Reservation8

Stock Setting

2. Stock Reservation against Sales Order

Create a Sales Order.
Check the reserve stock for items you want to reserve.

Srock Reserve

Click on Stock Reservation, then select Reserve. Choose the warehouse and quantity, then click on the Reserve Stock button.

3. Stock Reservation from Pick List

1. Create a Sales Order

Go to Selling > Sales Order
Add items and Save, Submit the document

2. Create a Pick List

From the Sales Order, click Create > Pick List
The Pick List will auto-populate items from the order

3. Open the Pick List and Reserve Stock

Go to the newly created Pick List
Click on the “Stock Reservation” button
Select “Reserve”
Choose the appropriate warehouse and quantity, if not already set
Click “Reserve Stock”

Pick list

4. Auto Reserve Stock on Purchase

ERPNext can automatically reserve that stock as soon as it is received (via Purchase Receipt) when you create a sales order and then buy items to fulfil it.

This implies that ERPNext handles stock reserving for you, saving you the trouble.

1. Activate the Auto Reservation Configuration

Select Stock > Stock Settings.

Turn on the "Auto Reserve Stock for Sales Order on Purchase" option.

Auto Stock reservation

Select "Save."

2. Process Flow:

Create a Sales Order

Together with the customer and the items, create a new sales order. Save it, then submit it.

Create a Material Request

Click on Create > Material Request from the Sales Order.

Select "Purchase" as the Request Type, then click "Submit."

Create a Purchase Order

Click on Create > Purchase Order from the Material Request.

Select the supplier and then submit the purchase order.

Create a Purchase Receipt

Click Create > Purchase Receipt from the Purchase Order.

Enter the quantity that was received and then submit it.

5.Stock Unreservation

If you no longer want to keep stock reserved (for example, if the order is canceled or changed), you can unreserve the stock.

ERPNext allows two ways to do this.

Unreserve from Sales Order or Pick List

You can directly unreserve stock from the document it was reserved for.

Open the Sales Order or Pick List
Click on the item row where stock is reserved
Click the Stock Reservation button
Click Unreserve

This will cancel the Stock Reservation Entry, and the stock will be released (made available again for other use).

Sales Order
Pick List