Currently when an item is allocated the system will still allows you to pick it up and use for a different sales order however transferring it to a different location is not allowed.
Stock transfer should be possible up until the order is Packed
Example (this happens all the time because we deal with wholesale accounts that order out of stock items for future delivery):
1. We have 40 widgets in stock
2. Customer "A" orders 100 widgets in January but he only needs them in March.
3. We need to Authorize A's order so the additional 60 widgets will show on reports and can be ordered or made in time
4. In February (a month before Customer A needs their widgets and before additional widgets are ordered or made) our Amazon FBA is running low so we need to replenish by transferring 30 widgets to FBA. We still have 40 in the warehouse (and another 100 on order from our supplier) so we send 30 to FBA.
5. The 30 widgets are sent to FBA but DEAR doesn't let us do a stock transfer because they are already allocated to customer A's order.
Now take this scenario but with hundreds of orders and hundreds of SKU's and you see that it can't work.
The solution is actually very simple and is logical as well; Stock should be affected when the order is "Authorized" but only committed to a specific order when it is "Packed".
Before the order is packed (which involves placing the widget in the box and closing it and thus truly making it unavailable) the item should be able to go anywhere.
Yes please this is so frustrating for us! It almost makes the pick stage pointless. :)