Committed stock is promised demand; allocated stock is the part tied to specific physical quantity.

The short answer

This distinction changes the decision you can safely make.

Commitment can exist before the team knows which warehouse or location will serve the order. Allocation protects a concrete usable quantity for that document. Allocated is a subset of committed, so formulas must not deduct both independently.

Worked example

Use exact units and keep each quantity in the right category.

A confirmed order needs 12 pieces. The team allocates 7 from the main warehouse and leaves 5 unallocated. Committed is 12, allocated is 7 and the order still needs 5 allocated or supplied. If usable stock later falls to 5, the original allocation remains visible and an allocation deficit of 2 requires a conscious decision.

Decision table

Check the facts before choosing an action.

Common mistakes

Avoid shortcuts that create confusion later.

• Treating allocation as a second commitment
• Deleting an allocation when a later count reveals a shortage
• Allocating from another document’s protected quantity
• Removing stock at allocation time

How KnownStock handles it

The product keeps the explanation with the number.

KnownStock creates commitment from the confirmed sales order and allocation through a separate planning action. Physical stock leaves only through delivery or another confirmed outbound operation.