Using Direct Allocations
In some supplier relationships, a business unit on one level of the supply chain is allowed to make a special, temporary allocation of inventory for an EMT order line at the lower-level supplier’s site.
EMT supports this requirement under a specific set of circumstances:
• The PBU and SBU are located in a single domain, in two domains within the same database.
• Site records at the domains associated with the PBU and SBU are properly set up and reflect the correct relationships.
• The Direct Allocation field in Sales Order Control (7.1.24) at the PBU must be set to Yes.
• The allocation can only take place across one level; a level-1 business unit cannot directly allocate a level-3 supplier’s inventory.
When you enter an EMT item on a sales order and the setup has been done correctly, you can open up a browse to view detailed inventory information of the item at all lower-level supplier sites as well as at the current site, and change the default site for the sales order line to the site established for the SBU’s domain. The system automatically changes the supplier to the one defined for the SBU’s domain. The quantity specified is then assigned a preliminary allocation in the SBU’s domain.
After you export the resulting EMT PO and the SBU imports it as a secondary sales order, the SBU’s system converts the preliminary allocation into a general allocation to the secondary sales order. From that point, processing continues just as in any other EMT order.