Automatic purchase order (overselling and residual handling)

What is overselling and residual handling?
Overselling and residual handling means that the store allows the sale of goods that are not in stock, and thus go into the rest.

Setup and configuration
Rules for overselling can be done in several ways: 

• Global configuration in the online store
• With advanced inventory management
• Choice of suppliers

How it works
When overselling is set up, customers will have the option to purchase an item even if it's out of stock.
When an order is then created in the control panel, we will check if the item is in stock, if it is not it will either be linked to existing purchases or automatically create a new draft purchase order.

Product lines are automatically linked to new or existing purchases and have tags set depending on the status of the purchase. We call this "reservation" - an oversold item is reserved on a purchase order. This means that the item that is in the purchase belongs to a specific order until you make receipt, or possibly release the reservation. 

You can read more about reservations here →

Flowchart
The flowchart below shows how overselling is associated with purchasing.

Click on the image to view it in a larger version.