To avoid manual process of stock allocation we can set up the application where when we receive new stock quantity it will automatically allocate them against the shortages of outstanding sales order. 

Prerequisites:

1. Parameter values (ADPVAL)

• Chapter “STO” Group “MIS” Parameter GENSHT (Generate shortages) set to Yes.
• Chapter “VEN” Group “SAL” Parameter INIALLORD (Init qty to allocate to order) set to Yes.

2. Customer setup should allow Partial Delivery so that it can automatically generate shortages if there is insufficient stock.

Setup:

Stock parameters (GESSTE)

Create new / Verify Stock parameter for the stock site.

Check Autoprocess shortages under Backorders Tab

Workflow steps:

Step 1: Enter Sales order (GESSOH)

Site “AU012”, Product “BMS007”, Quantity 20 – Verify you have stock shortages (14 in my case)

Step 2: Enter Purchase Receipt (GESPTH2)

Site “AU012”, Product “BMS007”, Quantity 50

Verify allocation log file to confirm stock is getting allocated against outstanding sales order when you save the stock receipt 

Step 3: Verify Sales order (GESSOH)

Stock is automatically allocated.