The On Hand balance is intended to reflect the quantity of inventory that is physically in the facility. On Hand balances are updated when the 'Status' of Inventory and Sales transactions is changed to "Ready To Post". However, for companies that want unposted Sales Orders to updated the On Hand balances as soon as they are marked as Shipped, they can set the "Include Shipped & Approved Sales Orders in On Hand balances" Inventory Preference to "Yes".
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