What is preallocated stock in SAP LE-WM - Warehouse Management?

SAP Term: preallocated stock

• Component: LE-WM

• Component Name: Warehouse Management

• Description: A stock that, on receipt in the warehouse, is allocated for a goods issue. Preallocated stock bypasses the warehouse reserve storage areas and, when received, is sent immediately to the goods issue area for transfer to the appropriate location.

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• Key Concepts: 
  Preallocated stock is a type of inventory in SAP Warehouse Management (LE-WM) that is reserved for a specific purpose. It is not available for general use and cannot be used to fulfill customer orders. Preallocated stock is typically used for internal purposes, such as production or quality control. 
  
  How to use it: 
  In SAP Warehouse Management, preallocated stock can be created by setting up a reservation in the system. This reservation will specify the quantity of stock to be preallocated and the purpose for which it is being reserved. Once the reservation is created, the preallocated stock will be blocked from being used for any other purpose. 
  
  Tips & Tricks: 
  When creating a preallocation reservation, it is important to ensure that the quantity of stock being reserved is accurate. If too much stock is preallocated, it could lead to shortages in other areas of the warehouse. On the other hand, if too little stock is preallocated, it could lead to delays in production or quality control processes. 
  
  Related Information: 
  Preallocated stock is closely related to another type of inventory in SAP Warehouse Management called blocked stock. Blocked stock is similar to preallocated stock in that it is not available for general use, but it differs in that it can be used to fulfill customer orders. For more information on blocked stock, please refer to SAP's documentation on LE-WM Warehouse Management.