In NetSuite, the fulfillment preferences “limited to committed,” “ignore commitment,” and “allow uncommitted” determine how orders are fulfilled concerning inventory commitment status. Here’s a breakdown of each:
- Limited to Committed:
- With this setting, NetSuite only considers committed inventory when fulfilling orders. Committed inventory refers to stock that has been allocated to specific sales orders or other commitments, ensuring those orders are prioritized.
- If there’s not enough committed inventory to fulfill an order, NetSuite won’t use uncommitted inventory to fulfill it. Instead, the order might be partially fulfilled, or it might go into a backorder status until more inventory becomes committed.
- Ignore Commitment:
- When this preference is selected, NetSuite disregards any commitment status when fulfilling orders. It fulfills orders based solely on available inventory, whether committed or uncommitted.
- This setting allows orders to be fulfilled more flexibly, potentially preventing stockouts by utilizing uncommitted inventory to meet customer demand. However, it may also lead to overcommitment of inventory if not carefully monitored.
- Allow Uncommitted:
- With this preference, NetSuite prioritizes fulfilling orders using available uncommitted inventory. Uncommitted inventory refers to stock that hasn’t been allocated to specific orders or commitments.
- If there’s not enough uncommitted inventory to fulfill an order, NetSuite may use committed inventory if the “ignore commitment” setting is also enabled. Otherwise, the order might be partially fulfilled or backordered.
In summary, the main differences lie in how NetSuite treats inventory commitment status when fulfilling orders:
- “Limited to Committed” strictly adheres to committed inventory, potentially resulting in unfulfilled orders if there’s insufficient committed stock.
- “Ignore Commitment” disregards commitment status, allowing orders to be fulfilled using both committed and uncommitted inventory, providing more flexibility.
- “Allow Uncommitted” prioritizes uncommitted inventory but may still use committed inventory if necessary, offering a balance between commitment status and inventory availability.