Inventory Allocation Based on Status
The Make Inventory Available box on inventory status records controls whether items with a specific status should be available to be allocated to orders. By default, this box is checked when you create a new inventory status record.
Clear this box if you want on-hand inventory associated with the status to be excluded from the available count. For example, if you do not want damaged inventory to be allocated to orders, clear the Make Inventory Available box.
In addition to regular sales, purchases, returns, and transfers, inventory balances are also updated based on this setting. When items move to the Damaged status, the available inventory balance is decremented by the quantity of damaged items. Similarly, when items move from an unavailable to available status, the available inventory balance is incremented by the appropriate quantity.
This setting only prevents item quantities from being allocated to orders. When you update an item to an unavailable status, you should physically prevent these items from being picked in your stock room or warehouse.
When statuses are associated with items on completed or pending transactions, you cannot edit the Make Inventory Available box on the inventory status record.
For more information on how items can be allocated to orders, see Setting Inventory Allocation Preferences.
The Make Inventory Available setting does not apply to items on drop shipments and special order purchases. Items with an unavailable status can be allocated to sales orders marked as drop shipments or special orders.
You can also receive unavailable items on the associated purchase order created from a drop shipment or special order sales order. For more information about drop shipments and special orders, see Drop Shipment and Special Order Purchases.