Units reserved for open orders or transfers.
Allocated stock is inventory reserved against open sales orders, wholesale picks or planned transfers so it cannot be sold twice. Allocation sits between on-hand and available.
A wholesale order reserves 200 units. Until it ships, those units stay on-hand but not available to the web shop.
Ignoring allocations makes DTC channels look healthier than they are and delays reorders.
Allocated is reserved from stock you already hold; on-order is inbound from a supplier.
They should when orders cancel — stale allocations fake shortages.
Amazon’s reserved/fulfillable split is the FBA analogue.
The idea is shared, but formulas and marketplace rules differ. Use the definition on this page for ecommerce replenishment.
A spreadsheet works for a few SKUs. Once you have many suppliers or channels, a replenishment tool keeps the numbers current.
Not unless you switch Stock write or Purchase orders on for a connection. Drafts stay drafts until you confirm.