Supply chain | Supply Chain Management, Commerce

Sales Order Reservation Allows Reservation from Different Warehouse/Location than Sales Order Line

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Posted on by MM-08071432-0

Hi Everyone,

We are experiencing an issue in Dynamics 365 Finance & Operations where a Sales Order line allows inventory reservation from a different Site/Warehouse/Location than the one specified on the order line.

Scenario

A Sales Order is created for Warehouse A.

Stock is unavailable in Warehouse A but available in Warehouse B.

From the Inventory Reservation form, the system allows reservation from Warehouse B without updating the Sales Order line.

The Sales Order is invoiced showing Warehouse A, while inventory is actually deducted from Warehouse B.

Impact

Incorrect Gross Profit reporting.

Inventory variances between warehouses.

Mismatch between the warehouse recorded on the Sales Order and the warehouse from which stock is physically issued.

Question

Is this standard D365 F&O behavior, or is there a configuration or customization that can restrict reservations to the Site/Warehouse/Location specified on the Sales Order line?Has anyone encountered this issue, and if so, how was it resolved?

Thank you in advance for your guidance.

Categories:

Dynamics 365 Commerce

Dynamics 365 Supply Chain Management

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CU20011849-0 3 on at

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Hi, can you please verify the Storage dimension group setup of the item? Is the "Primary stocking" parameter enabled at the Warehouse level for this item?

With Warehouse Management, this parameter is enabled by default at the warehouse level and always reserves and respects the warehouse dimension for order fulfillment. However, if not using Warehouse management processes, you may need to manually configure this checkbox to support your scenario.

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Sagar Suman 6,827 Super User 2026 Season 1 on at

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Hi,

This is standard behavior in D365.

You need to make sure you have carefully evaluated what happens with Primary stocking check mark in storage dimension group.

You can see my explanation here.

'Primary Stocking' feature at Tracking Dimension Group

Regards,

Sagar Suman | LinkedIn

https://youtube.com/@dynamiccannon?si=q84OKgw8vgu61-V2

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Shri Ranjani 137 on at

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Hi,
Yes, this can occur in standard D365 depending on your reservation and dimension setup.

Check the following:

Storage dimension group – Ensure Site and Warehouse are active physical inventory dimensions. If Location is mandatory, verify its setup as well.

Reservation hierarchy – Verify the reservation hierarchy does not allow reservation across warehouses.

Inventory dimensions on the sales line – Confirm the dimensions are fixed and not being overridden during reservation.

Warehouse management (WHS) – If using Advanced Warehouse Management, review reservation hierarchy and location directives.

Inventory reservation form – Standard D365 allows manual reservation from another warehouse in some scenarios. If your business requires preventing this, there is no standard parameter to enforce it, and a customization or extension is typically required.

If inventory is issued from Warehouse B while the sales order still shows Warehouse A, it usually indicates that manual reservation is overriding the warehouse dimension. Many organizations address this by customizing the reservation process to restrict reservations to the warehouse specified on the sales order line.

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