Automatic Bin Location Allocation in Issues 
To facilitate bin location allocation during inventory issuing, SAP Business One enables you to automate the process of allocating items from bin locations.
The automatic bin location allocation process can take place in all documents that involve the issuing of items. For a list of issue documents, see Issues from Bin Locations.
During the issuing of inventory, SAP Business One can allocate items from bin locations automatically according to the following methods:
Single Choice
The method of allocating items from bin locations when there is only one way of doing so. If there is more than one way to allocate items from bin locations, the single choice method is not effective.
The single choice method is applicable only in the following situations:
The item you need to issue exists in only one bin location.
In this case, you must issue the item from this bin location.
The item you need to issue exists in more than one bin location and the entire inventory of the item must be used to fulfill the requirement.
In this case, you must issue the entire inventory of the item from all the bin locations.
ExampleExample 1
You want to deliver item A with quantity 50 to a customer.
In your warehouse, you have 200 units of item A stored in bin location X.
In this case, even if your inventory greatly exceeds the committed quantity, you only allocate 50 from bin location X.
If single choice is the allocation method, SAP Business One automatically allocates the items from bin location X for the delivery.
Example 2
You want to deliver item B with quantity 100 to a customer.
In your warehouse, you have exactly 100 units of item B stored as follows:
Bin location Y: 60
Bin location Z: 40
In this case, you can only pick 60 from bin location Y and 40 from bin location Z to fulfill the delivery.
If single choice is the allocation method, SAP Business One automatically allocates the items from the two bin locations for the delivery.
End of the example.Bin Location Code Order
The method of allocating items from bin locations according to the alphanumeric order of the bin location codes.
Alternative Sort Code Order
The method of allocating items from bin locations according to the alphanumeric order of the bin locations' alternative sort codes.
Descending Quantity
The method of allocating items from bin locations according to the descending order of the item quantity in the bin locations.
Ascending Quantity
The method of allocating items from bin locations according to the ascending order of the item quantity in the bin locations.
Note
For a production order with components using a Backflush issue method, the components must be issued automatically from the warehouses. For such components, SAP Business One automatically issues them from bin locations according to the automatic allocation method you specified for the warehouse. If the allocation method is not effective, SAP Business One will issue the components from their default bin locations. If the default bin locations do not exist, the system then takes the components from the system bin locations.
SAP Business One lets you specify the bin location allocation method on the following levels:
Warehouse
On the warehouse level, you can specify a bin location allocation method which applies to all items issued from a warehouse.
To do so, first open the Warehouses - Setup window and select the Bin Locations tab. Then, in the Auto Alloc. on Issue field, select an allocation method.
Document
On the document level, you can specify a bin location allocation method which applies to all items in an issue document.
To do so, first open the Form Settings window from an issue document. Then, in the Automatic Allocation field, select an allocation method.
Document Row
On the document row level, you can specify a bin location allocation method which only applies to the item in a particular row of an issue document. To do so, there are different ways for different kinds of items, as follows:
Items Not Managed by Serials or Batches
If the item in the document row is not managed by serials or batches, you can appoint an allocation method for the item in the Bin Location Allocation - Issue window. In this window, choose the Automatic Allocation pushbutton and select a method from the opened list.
For more information about how to open the window from a row of an issue document, see Bin Location Allocation - Issue Window.
Items Managed by Serials
If the item in the document row is a serial item and is issued primarily by bin locations, you can appoint an allocation method for the item in the Serial Number Selection window. In this window, choose the Selection Method pushbutton and select a method from the opened list.
For more information about how to open the window from a row of an issue document, see Serial Number Selection Window.
If the item in the document row is a serial item and is issued primarily by serial numbers, the system does not perform the automatic bin location allocation. Instead, you can select the items you want to issue by their serial numbers, and then these items are directly taken from the bin locations where they are stored.
Items Managed by Batches
If the item in the document row is a batch item and is issued primarily by bin locations, you can appoint an allocation method for the item in the Batch Number Selection window. In this window, choose the Selection Method pushbutton and select a method from the opened list.
If the item in the document row is a batch item and is issued primarily by batch numbers, you must first select the batches that you want to issue, and then the system can allocate these batch items automatically from bin locations. In this case, you can appoint an allocation method by choosing the Automatic Allocation pushbutton in the Batch Number Selection window.
For more information about how to open the window from a row of an issue document, see Batch Number Selection Window.
More Information
Allocating Regular Items from Bin Locations
Allocating Serial or Batch Items from Bin Locations
Bin Location Allocation - Issue Window