Purpose and overview

Putting an inventory location on hold is designed to streamline inventory management by allowing the hold status of a location to control the availability and movement of items within that location. This is achieved by using a Location Hold field in the Location Master (P4100), which eliminates the need to update individual item/lot/location records as below.

Functional design

The hold status of a location is controlled by a new User Defined Code (UDC) 41/LS - Location Status Codes. These codes determine the types of transactions allowed in a location:

Blank: Allows all transactions.
1: Allows only incoming transactions.
2: Allows only outgoing transactions.
3: Prevents both incoming and outgoing transactions.
4: Allows incoming and internal movements, restricts availability for use.

Impact on transactions

Inventory transactions
Various inventory operations (e.g., transfers, adjustments, issues) will trigger an error if the location's hold code restricts the movement of inventory.
Availability calculation
The availability of items in a location is influenced by the hold status, with specific codes affecting whether quantities are considered available.
Warehouse transactions
Hold statuses affect processes like putaway, picking, and replenishment, with errors generated if movements are attempted in restricted locations.
Sales transactions
During sales order entry, the system checks the location's hold status and prevents committing inventory from restricted locations.
Transportation and work order transactions
Similar validations occur during shipping, load confirmation, and work order completions, ensuring that inventory cannot be moved into or out of a location with a restrictive hold code.
MRP and planning
The hold status also impacts Material Requirements Planning (MRP) by determining whether quantities from held locations are considered during calculations.

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Additional notes

The system prioritises location hold codes over lot statuses, meaning transactions will not proceed if the location is on hold, even if the lot is approved.
Location hold codes with special handling code '2' allow both usage and movement, while code '4' restricts usage but allows movement.