You receive the error: “One or more items associated with this Item model group are controlled by processes defined for warehouse management and the use of reservation hierarchy. FIFO date-controlled reservations will not be used for these items.” when attempting to set up an item model group and you are unable to set up the item model group.

If you have the “FIFO date-controlled” option marked on the Item model group and the “Use warehouse management processes” option marked on the Storage dimension group, it would be working as designed that you are receiving this error as you cannot use the two of these options together. To verify if these options are marked, please go through the following:

  1. Go to Inventory management | Setup | Inventory | Item model groups, and review the item model group that you are trying to switch to and check to see if the “FIFO date-controlled” option is marked.
  2. Go to Product information management | Setup | Dimension groups | Storage dimension groups, and review the dimension group assigned to the item that you are trying to change the item model group on and check to see if the “Use warehouse management processes” option is marked.

The following information can be used to work around this issue.

Reservation on batch level is supported for where the “Use warehouse management processes” option is enabled for the storage dimension group for the item, only when batch is above location in the reservation hierarchy. And there it is supported for the process industries reservation principle, which is FEFO-date controlled by either Expiration date or Best before date. If batch is below the location, we never reserve at the batch level. Provided you are not mixing batches with different manufacturing dates on the same location, you can sort your way to find the batch number with the oldest manufacturing date to simulate the FIFO date-controlled functionality that you were trying to enable on the item model group. In the Location directives form, in the Location Directive Actions fast tab mark the Batch enabled option.

Once the Batch enabled option is marked on the location directive, the batch table will be added to the query and you can then add the manufacturing date as sorting criteria