Entitlement Use

A sponsor spends its entitlement by:

Requesting specific product quantities on a preorder. When your organization submits an entitlement preorder response, the CNPweb subtracts the associated product cost from your entitlement dollars.
Accepting or refusing product quantities on an allocation. If your organization agrees to accept allocations, or fails to refuse an allocation by the deadline, the CNPweb subtracts the associated product cost from your entitlement dollars.
Placing unassigned requests. When your organization places an order for unassigned product available at your servicing warehouse, the CNPweb subtracts the associated product cost from your entitlement dollars (for the appropriate commodity types).

Notes:

Depending on your state agency's policies and procedures, if your organization does not order the product quantity, the state agency clears the allocation. When this happens, the product goes into the state agency's unassigned inventory. Your organization regains the associated entitlement dollars, and the product becomes available to other sponsors.
The commodity type determines if your organization spends its entitlement dollars on the product.
If your state agency cancels an allocation, the CNPweb returns the associated entitlement to your organization based on your state agency policies and procedures.
Your state agency determines the entitlement draw type (fixed or weighted) for every product.