The quick answer
Go to Lists → Supply Chain → Inventory Statuses and choose New Inventory Status. Enter a name, set Make Inventory Available For Commitment and Make Inventory Available For Allocation And Planning deliberately, then save. Open the saved record to check both settings and confirm that the status appears in the list.
The screenshots use fictional person and company names. The status name Not Good and the checked settings match the recorded walkthrough.
Before you start
You need the Inventory Status feature and permission to create a status. The allocation option shown here also depends on Supply Allocation being enabled. The menu may say Inventory Status rather than Inventory Statuses, and its position can differ by role or release. This example creates a status definition only. It does not assign that status to inventory already on hand.
The name Not Good sounds restrictive, but both availability options are checked in the demonstration. The name does not override those boxes. Set the flags before putting a status into use: their values may no longer be editable after the status is used on transactions. These settings affect system availability; physical segregation and picking controls are separate warehouse decisions.
01. Open Inventory Statuses
Go to Lists → Supply Chain → Inventory Statuses. Review the existing definitions and choose New Inventory Status. This opens the new status form.
02. Set the availability options
Enter Not Good in Name. Leave Inactive clear. The demonstrated setup leaves Description blank and keeps both availability boxes checked: Make Inventory Available For Commitment and Make Inventory Available For Allocation And Planning. They are separate controls, so inspect each one instead of treating the status name as a rule. The second label and its planning behavior can differ by account and release.
03. Save and check the result
Choose Save. On the saved Inventory Status record, check that the name is Not Good, the record is Active, and both availability settings remain checked. Then return to the list and find the Not Good row with state Active. That confirms the definition was saved; it does not mean any existing inventory was assigned to it.
Check the result
- The saved record says Not Good and Active.
- Both availability options are checked on that record.
- The Inventory Statuses list contains a Not Good row marked Active.
Common questions
Does the name Not Good make inventory unavailable?
No, not with both boxes checked. The name is a label. In this configuration, inventory assigned to the status remains eligible for commitment and the applicable allocation process. The settings do not physically segregate stock or prevent picking; use warehouse controls when a physical hold is required.
Is Active the same as available for commitment?
No. Active describes the status record. Make Inventory Available For Commitment is a separate setting. The Active label does not tell you whether the status is available for allocation either; check that box on the saved record.
Does creating this status change inventory on hand?
No. Saving creates the status definition without assigning it to stock or changing on-hand quantity. An Inventory Status Change or another applicable inventory transaction can assign or reclassify inventory, depending on the account setup; that is a separate workflow.