Reservation Entries in Microsoft Dynamics 365 Business Central

 

Reservation Entries in Microsoft Dynamics 365 Business Central

In Microsoft Dynamics 365 Business Central (BC), effective inventory management is crucial for ensuring that your business operations run smoothly. One key aspect of inventory management in BC is the concept of Reservation Entries. These entries play a vital role in managing and controlling the allocation of inventory items to various sales, purchase, and production processes. In this blog, we'll explore what reservation entries are, how they function, and the benefits they provide to businesses.

What Are Reservation Entries?

A Reservation Entry in Business Central is a record that links an item to a specific demand, such as a sales order, production order, or transfer order. The primary purpose of reservation entries is to ensure that certain quantities of inventory are set aside (reserved) for specific transactions, thereby preventing other processes from using the same inventory.

This system allows for better control over inventory, ensuring that critical orders are fulfilled without the risk of stockouts or double allocation.

Types of Reservation Entries

In BC, there are generally two types of reservation entries:

  1. Hard Reservations:

    • Hard reservations are binding and ensure that the reserved quantity cannot be used for any other purpose. This means that once a hard reservation is made, the reserved inventory is locked for the specific transaction until it is completed or canceled.
    • Hard reservations are typically used in scenarios where the demand is certain, such as a confirmed sales order.

  2. Soft Reservations:

    • Soft reservations, on the other hand, are non-binding and can be adjusted or canceled if necessary. This type of reservation is often used in planning scenarios where the demand is expected but not yet confirmed.
    • Soft reservations are more flexible and allow businesses to adjust their plans as new information becomes available.

How Reservation Entries Work

Reservation entries are created automatically or manually, depending on the business process and configuration. Here’s how they typically work:

  1. Automatic Reservations:

    • Business Central can automatically create reservation entries based on the system’s setup. For example, when a sales order is confirmed, the system can automatically reserve the required quantity of inventory to fulfill that order.

  2. Manual Reservations:

    • Users can also manually reserve inventory for specific orders or transactions. This is useful in scenarios where you need to prioritize certain orders over others.

  3. Reservation Levels:

    • Reservations can be made at different levels, such as at the item level, lot level, or serial number level. This flexibility allows for detailed control over which specific items are reserved for which orders.

  4. Tracking and Adjusting Reservations:

    • Business Central provides tools to track and adjust reservations as needed. Users can view reservation entries to understand which items are reserved for which orders and can make adjustments if inventory levels change or if orders are canceled.


Reservation entries are a powerful feature within Microsoft Dynamics 365 Business Central that help businesses manage their inventory more effectively. By understanding and utilizing reservation entries, companies can ensure that their inventory is optimally allocated, leading to better order fulfillment, reduced stockouts, and more efficient production processes.

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