Allocation Basics

The CNPweb provides tools that allow your state agency to allocate products to participating sponsors. As a sponsor, your organization uses the CNPweb to review the list of your allocations using the Sponsor Summary - Allocations tab.

Your state agency uses the CNPweb to create product allocations before and during the program year. With some allocations, you have the option to accept the product and its quantity allocated to you, or you can refuse some or all of the product quantity. The CNPweb tracks the product and quantities you accept, and the impact of your selection on your available entitlement dollars.

Entitlement Availability

When the state agency allocates products, the CNPweb reviews the entitlement dollars available to your organization. Your entitlement dollars provide a spending limit for products distributed through preorders and allocations based on your state agency policies and procedures.

With each allocation, the CNPweb checks your current entitlement dollars before creating the allocation. Your organization cannot receive products beyond your available entitlement dollars, even if your fair share would give you a greater quantity.

When creating allocations, your state agency may exclude some sponsors based on their remaining entitlement balance. For these allocations, all sponsors must have a minimum amount of remaining entitlement to participate in the allocation

Allocation Adjustments

Your state agency may adjust the details of an allocation as needed throughout the program year. For example, the state agency can:

Increase or decrease the allocation quantity for a product.
Change the allocation dates.

Allocation and Product Costs

When your state agency creates an allocation for your organization, you must cover the product cost and related fees for the allocated product quantities. The allocation type and the commodity type determine the costs and fees, and the options available for paying these fees.

When your organization receives the products, the CNPweb performs the following activities (as appropriate):

Draws entitlement to cover the product costs.
Bills your organization for the related product fees.

Allocated Inventory

After your state agency allocates product quantities to your organization, and you accept the allocation (when appropriate), your allocated products become your inventory stored at your servicing warehouse. Your inventory remains in the servicing warehouse until you place an order for shipment to a delivery location.

You review your allocated product inventory on the Sponsor Summary - Inventory tab. This tab displays a list of all products currently allocated to your organization. You can review your product inventory, breaking it down into individual allocations.

Notes:

Your state agency's policies and procedures may allow sponsors to spend more than 100% of their entitlement dollars.
Your organization's current allocations appear on the Sponsor Summary - Allocations tab.