This actually is difficult to answer because it depends on how Sage 500 was implemented and configured, how the items and inventory were configured, how and which functionality is being used in your organization, your warehouse and business processes, and your definition of "allocated".

When a sales order is created, it allocates quantity of an item to that order but you might not see that quantity deducted from the stock available because of the configuration. That quantity could also ship on a different order depending on how customers and order lines are prioritized and the configuration and use of the picking and shipping functionality.

Configuration options and/or processes for distribution include:

• Set order, pick and ship options for a customer by address
• Implement tracked (lot, serial) and non-tracked items
• Ignore quantity on hand
• Ship build to order items
• Build stock for a specific customer order (manufacturing)
• Set priorities for items, customers, orders, order lines
• Configure multiple warehouses (physical and virtual)
• Ship from multiple warehouses on an order
• Set up multiple types of warehouse bins and locations
• Move stock between bins and locations, including staging
• Order from multiple warehouses or drop ship from a vendor
• Ship orders and order lines to separate addresses
• Perform an immediate pick for an order

The list goes on and on because many of these functional attributes are dependent not just on the configuration but how the features are being used and it can get even more complex when you add warehouse automation.

You would probably need to detail a usage scenario that includes the general processes followed in the organization for more specific info.

Thank you! 

This is very helpful!  Clearly I need to spend a lot of time learning more about how our company set Sage 500 up, and what it can do for us.

Much appreciated!