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We have a need to be able to to have the same serial item on multiple Sales Orders at the same time. The issue is that if we have the serial item saved on an Sales Order (even if in the "open" status), it won't allow me to allocate that same serial item to another Sales Order.

We have several use cases where this is required, but it seems that by default Acumatica prevents this from happening.

Does anyone know if there are allocation settings within Acumatica that we are missing, or how we can work around these restrictions?

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There is no settings that I know of that allows duplicate serial number for the same item.

The limitation is enforced at database level, unique key for serial numbers are ['InventoryID' + 'LotSerialNbr'].

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So you can have the same Serial Number for two different items but not for the same items. I believe changing that would require substantial customizations. Maybe you could use the out-of-box Lot system instead of Serial Number.