Delivery according to FIFO

Purchase order items that cannot be supplied from the stock of inventory as soon as the initial customer order is received are shifted to a subsequent delivery. These items are only awarded a stock commitment once the corresponding goods receipt is posted for the item. In this process, the oldest purchase order items are allocated stock first, and the newest last. Sometimes, stocks of inventory are overbooked, e.g. due to loss of stock. These overbooking are corrected repeatedly each day by removing the stock commitment from a corresponding number of existing items. Again, the items that were allocated last to stock are the first to lose their commitment. The oldest stock commitments are the last to be deleted. The old stock allocation system, which was independent of the order date or allocation date and followed a complex system of priorities, is hereby replaced with a simple, fairer procedure.