There
are numerous ways to keep track of inventory quantities for different business
applications. Four important quantities
are:
Quantity
on Hand
– This is the total quantity of a product that you have in your inventory
storage. This does not include products
that have been picked for a Sales Order.
This type of quantity is the most commonly shown when working with your
inventory, such as in the Current Stock screen.
Quantity
Reserved – This is the quantity of the product that has been
ordered by a customer, but has not yet been picked or shipped out. This represents the quantity of the product
that would be required to fulfill all existing Sales Orders.
Quantity
on Order
– This is the total quantity of this product that have been ordered from
vendors but not yet received. This
represents the extra amount of the product that is expected to be received in
the future.
Quantity
Available
– This is the quantity of the product that is on hand and has not yet
been promised to a customer, so is available for sale. This quantity is obtained by subtracting the
Quantity Reserved from the Quantity on Hand.
(i.e. Quantity Available = Quantity on Hand – Quantity Reserved).
These
quantities can be viewed through the Inventory Summary report or in the Current
Quantity tab of the Product Information screen.