Understanding Inventory
Understand available stock and investigate inventory changes.
Use this guide when a product's physical stock differs from the quantity available to sell.
The Available Formula
Available = Sellable On Hand + Sell Ahead − Committed − Unavailable
includes all physical stock. excludes non-sellable locations. offers incoming units before receipt; holds units for fulfillment, and includes draft-order reservations. alone does not make incoming stock available.
For example, 100 sellable units plus 20 Sell Ahead, minus 25 Committed and 10 Unavailable, leaves 85 Available. Physical stock in a damaged-goods location is not added to that calculation.
Inventory Scenarios Reference
| Operation | Effect to check |
|---|---|
| Receive or produce stock | Increases On Hand; increases Sellable On Hand only in sellable locations |
| Consume components or reduce a stock count | Decreases On Hand and, for sellable locations, Sellable On Hand |
| Transfer within the same warehouse | Physical total stays the same; availability changes if source and destination differ in sellability |
| Change a location's sellability | Changes how its stock contributes to Sellable On Hand without moving physical units |
| Allocate fulfillment work | Increases Committed and reduces Available without changing On Hand |
| Release an allocation | Reduces Committed and releases the corresponding quantity for sale |
| Reserve a draft order | Increases Unavailable and reduces Available; a draft without a reservation has no such effect |
| Release or expire a draft reservation | Reduces Unavailable and releases the hold |
| Add or reduce Sell Ahead | Changes Available before goods arrive; review orders relying on those incoming units |
| Approve a cycle count or adjustment | Changes physical recorded stock; sale availability also depends on the location's sellability |
Combined Operations
Some operations change several quantities together:
- Moving picked stock between sellable locations changes its location, not the warehouse's physical total.
- Shipping allocated stock reduces physical stock and releases its commitment. For equal quantities, Available does not decrease a second time.
- Converting a reserved draft replaces its temporary hold with fulfillment allocation. Available stays the same only to the extent that the released and newly allocated quantities match.
- Receiving Sell Ahead into sellable stock replaces the incoming allowance with physical stock. Equal quantities cancel out in the Available calculation.
Special Cases Explained
Sellable is different from pickable. Stock in a non-pickable location may still be sellable. An order may have allocated inventory but need replenishment before picking.
Incoming stock can disappear from the promise. Reducing or cancelling Sell Ahead can leave less stock than existing orders require. Review allocation and readiness after a purchase-order change.
Location matters. Moving damaged goods to a non-sellable area changes sale availability; deleting a reservation does not physically remove those goods.
Inventory Change Logs
Review the product's inventory history before making a correction. Check the operation, reason, actor, quantity change, and before/after values. Follow the related order, purchase order, count, or work order to understand why it happened.
Common history values include PICK, TRANSFER, REPLENISHMENT, CYCLE_COUNT_ADJUSTMENT, MANUAL_CREATE, MANUAL_UPDATE, MANUAL_DELETE, RETURN_RECEIVE, WORK_ORDER_CONSUME, WORK_ORDER_PRODUCE, and PURCHASE_ORDER_RECEIVE.
Investigate a Difference
- Confirm the product, warehouse, location, lot, expiration, and units being compared.
- Compare the five quantities in the Available formula.
- Review recent movements, active order allocations, draft reservations, and incoming Sell Ahead.
- Verify the physical quantity through a Cycle Count if it remains uncertain.
See Product Stock for stock actions and the Glossary for reusable definitions.