Calculation of Available, On Hand and Allocated Stock quantity

For reach product in the system, DEAR Inventory keeps track of the following quantities:

  • On Hand
  • Allocated
  • Available


On Hand

On Hand quantity is always calculated based on actual transactions, operations and/or inventory cards. On Hand quantity is the quantity you expect to see in your warehouse. This includes products from sale orders which have yet to be fulfilled. This does not include products from purchase orders that are yet to be received. 


Allocated

Allocated quantity represents the quantity of the product reserved to be used in the pending sale and/or work orders. These orders are not yet completed yet but are authorised, and for successful completion, items are reserved to avoid double selling. Allocated quantity is used to determine Available quantity for Quoting, Ordering, and Picking. 


Available

Available quantity is always a difference between On Hand quantity and Allocated quantity.

  • Available quantity = On Hand – Allocated

There are two ways that Available quantity is calculated:

  1. General Available quantity per product, regardless of the batch info (the actual result depends on the Available quantity is limited to either all or selected locations parameter on the General Settings page).
  2. Available quantity specific to the defined location, batch, and expiry date.

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