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Community Care and Share: Supply Allocation is Not Allocating
You might have enabled the Supply Allocation feature, created Allocation Strategies, set Demand Preferences for Supply Allocation, however, the Allocated Supply column in your transaction (e.g. Sales Order) is still 0 even if there are quantities On Order.
One possible reason why the Supply will not be allocated is failing to populate the Location in your Purchase Order. When this is the case, edit the PO and set the appropriate Location. Refresh the page and you should be able to see that the quantity is allocated.
However, if the Location is already populated and Allocated Supply is still at 0, the
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