Sample Workflow - Inventory Changes
As you manage your business, you will want to understand the impacts the transactions you make with your Sales and Production Orders has on your inventory levels. Below we will walk through examples of creating Sales and Production Orders and demonstrate for you what the impact is on your inventory levels.
We will use the "SKU's tab" on a product "B007" to illustrate the changes in inventory following each transaction type (Sales Order, Production Order, etc.) You may also use your Inventory "Change Log" as well as the various Inventory Reports to see these changes. For this article though, we will focus on using the SKU tab.
Below find a "Summary" of what happens following each transaction type. After the Summary, we will illustrate in more detail.
Available & Available from Stock
The Available field shown on the SKU tab is a calculated value. Available takes the Stock, adds in the Awaiting and subtracts the Committed. (Available= Stock + Awaiting - Committed).
The Available from Stock field shown on the SKU tab is also a calculated value. Available from Stock takes the Stock and subtracts the Committed. (Available from Stock = Stock - Committed).
We will explain further on use case for these fields in the following examples.
Below find the Inventory view on the SKU tab for our example product BEFORE any transactions occur.
Create Confirmed Sales Order
Action: Created Confirmed Sales Order for 100 each of size 11.
Impact on Inventory: Committed increases.
Created Confirmed Production Order
Action: Create Confirmed Production Order for 100 each of size 11.
Impact on Inventory: Awaiting increases.
Checked In Delivery on Production Order
Action: Created Check-In for Delivery on a Production Order.
Impact on Inventory: Awaiting decreases and Stock increases.
Note: On the Checked-In Delivery, if the "Committed" was less than 100, the Available and Available from Stock would have been increased.
Create (Shipped) Shipment on Sales Order
Action: Created a Shipped Shipment on a Sales Order.
Impact on Inventory: Stock decreases and Committed decreases.
Create a Production Order (no sales order)
Action: Created a Production Order without referencing a corresponding Sales Order for 700 each Size 11.
Impact to Inventory: Available increases by 544 (not the 700 on the Production Order). Awaiting increases by 700. Available is trying to fill previously Committed 156 quantity on “other Sales Orders” that were already in the system prior to the baseline.
Checked In a Delivery of a Production Order
Action: Checked In a Delivery on a Production Order that was not tied to a particular Sales Order for a quantity 700.
Impact to Inventory: Available (no change). Available from Stock increases by 544.