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, no pending quantities, either from purchase orders that are yet to be delivered or sale orders that are yet to be fulfilled, are included. 


Allocated

Allocated quantity represents the quantity of the product reserved to be used in 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 possible ways on how Available quantity is calculated:


  1. General Available quantity regardless of the batch info, per product sometimes in one sometimes in all locations (actual result depends on the parameter “To calculate available quantity when selling or assembling use stock in...” on General Settings page)
  2. Available quantity specific to defined location, batch and expiry date.