Allocations are tying inventory to a transaction. I am not a big fan of allocations for the reason you are bringing up. The inventory is allocated to the sales transactions so it cannot be used anywhere else. Since it is lot tracked, you would need to 'add' inventory to do the transaction. In your case, you would need to unallocate the sales orders (which requires cancelling the line items) and then do your adjustment. Going forward, I would recommend allocations by document/batch in SOP. It is an extra step when fulfillment time comes around but it makes your inventory more flexible, such as situations like the one you are in.
Dan Liebl, CMA CPIM | Senior Consultant | OTT,Inc | DLiebl@OTT-inc.com
