Specify how quantity available is calculated

Quantity available is the total number of items that might currently be available for use or sales. It excludes any quantity on hold for sales orders and might or might not include quantity expected to arrive from purchase orders or warehouse transfers.

Regardless of how quantity available is calculated, Sage Intacct looks only at the quantity on hand when you create a transaction. If the configuration prevents inventory from going negative, you might not be able to create the transaction.

About quantity available

For Sage Intacct, the calculation for quantity available is the following by default:

Quantity available = On hand - On hold + On order

However, you can decide whether quantity on order and quantity in transit is included in quantity available. By configuring Inventory Control, the possible quantity available calculations are:

  • On hand - On hold
  • On hand - On hold + On order
  • On hand - On hold + In transit
  • On hand - On hold + On order + In transit

You might want to exclude the quantities on order in the calculation if the lead time for purchase orders is long. If you use in-transit warehouse transfers, you might want to include quantities in transit if the lead time for the transfers is short. If you practice just-in-time inventory, you probably want the available quantity to reflect only what's on premise.

Assume the following activities for hammers in Warehouse 1:

  1. On Sept 1, 100 hammers are on hand. No quantity is on hold, on order, or in transit.
  2. On Sept 5, you enter a purchase order for 100 hammers. The purchase order increases the quantity on order.
  3. On Sept 10, you enter a sales order for 50 hammers. The sales order increases the quantity on hold.
  4. On Sept 15, you and enter an in-transit warehouse transfer to move 25 hammers from Warehouse 2 to Warehouse 1. The transfer increases the quantity in transit for Warehouse 1.

The following table shows the available quantity of hammers on each date, depending on your quantity available calculation:

 

Sept 1

Sept 5 Sept 10 Sept 15
On hand - On hold + On Order 100 200 150 150
On hand - On hold 100 100 50 50
On hand - On hold + In transit 100 100 50 75
On hand - On hold + On order + In transit 100 200 150 175

As you can see, depending on the calculation, you might think you have as few as 50 hammers or as many as 175 hammers available to use or sell on Sept 15.

Include or exclude quantity on order in quantity available

  1. Go to Inventory Control > Setup > Configuration.

  2. Find the Include quantity on order in quantity available checkbox.
  3. Complete one of the following actions:
    • To include quantity on order, ensure that the checkbox is selected.
    • To exclude quantity on order, clear the checkbox if it’s selected.

Include or exclude quantity in transit in quantity available

  1. Go to Inventory Control > Setup > Configuration.
  2. Find the Include quantity in transit in quantity available checkbox.
  3. Complete one of the following actions:
    • To include quantity in transit, ensure that the checkbox is selected.
    • To exclude quantity in transit, clear the checkbox if it’s selected.