The Dynamics GP Item Maintenance screen allows you to identify 2 substitution items that can be used as substitutes on a sales order if the first item is out of stock. They’re set up on the Item Maintenance Options screen:
When you create a sales order for an item that is out of stock and has a substitute item identified, you can choose to select the item during the item allocation process. In the Sales Quantities Shortage Options screen, select “Distribute”.
This will bring up the Sales Item Quantity Distribution Entry screen. Click on the “Substitute” button.
This will bring up the Sales Substitute Items screen. Select Substitute 1 or Substitute 2.
This will bring up the Sales Item Quantity Distribution Entry screen filled in with the selected substitute item. Fill in the “Qty Selected” amount, and click on “Insert”.
Click on OK, and the sales order is updated with the substitute item.
Here’s a video that shows it in action: http://youtu.be/XPOXg2nDfBU