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The On Hold balance reflects the quantity of an Inventory Lot that is physically in the facility but has been placed on hold. On Hold balances are updated when Hold Codes are assigned or removed from Inventory Lots. On Hold balances impact the Available Balance calculation.

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Def - Inventory Lot
Def - Inventory Lot
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Available Balance = (On Hand) - (On Hold) - (Committed) - (Allocated) 

On Hold Lots cannot be allocated

Only Lot Tracked Items can be placed on Hold