How inventory quantity totals work in fulfillment
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Different types of inventory item totals are used in fulfillment to display inventory quantities. These quantities reflect the state of your inventory as purchase and sales transactions are created and moved through fulfillment.
The 3 types of inventory totals include:
- Transaction-based inventory totals. These totals can be used in transaction definitions to keep a count of how much inventory is on hand, on order, on hold, and in transit as transactions are created.
- Operational-based inventory totals. These totals keep a count of the quantity that's reserved and allocated to fulfill orders based on operational activities in fulfillment or in an order.
- Calculated item totals. Sage Intacct calculates available and uncommitted quantities based on the Inventory Control configuration and the transaction and operational-based totals.
Using these totals, Sage Intacct can automatically determine which sales orders can be fulfilled. And, it can reserve and allocate quantities that are needed to fulfill orders as they move through fulfillment.
These quantity totals are displayed in each inventory item record at the header level and by warehouse.
Transaction-based inventory totals
| Field | Description |
|---|---|
| On order |
The quantity of the item that's currently ordered but not yet received. Depending on how quantity available is calculated, the quantity on order might be available to be presold. How the predefined inventory totals are set in transactions definitions and the transactions that have been created determine the quantity. |
| In transit |
The quantity of the item that's currently being moved from one warehouse to another with in-transit warehouse transfers. The total is increased for the to warehouse when the inventory is transferred out of the from warehouse. The total is decreased when the inventory is transferred into the to warehouse. How the predefined inventory totals are set in transactions definitions and the transactions that have been created determine the quantity. |
| On hand |
The quantity of the item in your warehouses. The quantity is the quantity that has been received in your warehouses minus the quantity that has been shipped from your warehouses. How the predefined inventory totals are set in transactions definitions and the transactions that have been created determine the quantity. |
| On hold |
The quantity of the item that's currently entered into sales orders but not yet shipped or invoiced. How the predefined inventory totals are set in transactions definitions and the transactions that have been created determine the quantity. |
Operational-based inventory totals
| Field | Description |
|---|---|
| Reserved |
The quantity that's been set aside to fill sales orders. Reserved quantity is considered to still be on the warehouse shelves but not available to be used anywhere else. Reserved quantity is increased by these two activities:
|
| Allocated |
The quantity that's been assigned to fill sales orders. Allocated quantity is considered to be picked from the warehouse shelves, dedicated to specific orders, and not available to be used anywhere else. Allocated quantity is increased by these two activities:
|
Calculate item totals
| Field | Description |
|---|---|
| Available |
This is a calculated total that displays the quantity of the item that's available for use. It's calculated as one of the following, depending on how Inventory Control is configured:
For more information, see Specify how quantity available is calculated |
| Uncommitted | This is a calculated total that you can use to see the quantity that you have on hand that's not currently being used to fill orders: Uncommitted = On hand - Reserved - Allocated |
Example
Here's how the inventory totals might change as you move an order through fulfillment. For this example, assume the following:
- Quantity available is calculated as: On hand - On hold
- Quantities for On order and In transit are not included in quantity available and remain as zero (0) throughout the example.
- One order for 25 hammers from Warehouse 1 exists and is in Open status in fulfillment. Thus, quantity on hold is 25.
- There are currently 100 hammers On hand in Warehouse 1.
- Another sales order will be added for 50 hammers.
So, the beginning warehouse quantities are:
| Warehouse | On order | In transit | On hand | On hold | Available | Reserved | Allocated | Uncommitted |
|---|---|---|---|---|---|---|---|---|
| 1 | 0 | 0 | 100 | 25 | 75 | 0 | 0 | 100 |
- You add a sales order for 50 hammers from warehouse 1. On hold is increased by 50 to 75, which causes Available to change to 25 (100 On hand - 75 On hold). Reserved, Allocated, and Uncommitted remain the same.
Add a sales order example Warehouse On order In transit On hand On hold Available Reserved Allocated Uncommitted 1 0 0 100 75 25 0 0 100 - You need to ship the order for 50 hammers before you ship the order for 25 hammers. In fulfillment, you change the status of the order for 50 hammers from Open to Ready to pick. Changing the status from Open to a non-Open status causes quantity to be reserved. So, Reserved is increased by 50, which causes Uncommitted to change to 50 (100 On hand - 50 Reserved - 0 Allocated).
Change order status example Warehouse On order In transit On hand On hold Available Reserved Allocated Uncommitted 1 0 0 100 75 25 50 0 50 - After the order is picked, you change the status of the sales order in fulfillment to Picked and enter the number of hammers that were picked. All 50 hammers were picked and are no longer on the warehouse shelves. You enter 50 as the quantity that was picked.
Entering a picked quantity (or a packed quantity, whichever happens first) decreases Reserved and increases Allocated. So, Reserved changes to 0 (50 Reserved - 50 picked). Allocated changes to 50 (0 Allocated + 50 picked). The Allocated quantity is fully committed to this order and cannot be used anywhere else. The value of Uncommitted remains the same.
Change sales order status example Warehouse On order In transit On hand On hold Available Reserved Allocated Uncommitted 1 0 0 100 75 25 0 50 50 - For this example, we’re going to skip packing and go straight to shipping. You change the status of the sales order to Ready to ship. On the Ship tab, you convert the sales order into a shipper.
Posting the shipper, which decreases the ONHAND quantity, impacts the following quantities because 50 hammers are no longer in inventory:
- Decreases Allocated (50 Allocated - 50 shipped)
- Decreases On hand (100 On hand - 50 shipped)
- Decreases On hold (75 On hold - 50 shipped)
- Leaves Uncommitted the same because both Allocated and On hand are decreased by the same amount (50 On hand - 0 Reserved - 0 Allocated).
Ready to ship example Warehouse On order In transit On hand On hold Available Reserved Allocated Uncommitted 1 0 0 50 25 25 0 0 50
