Understanding Inventory Balances
Key Terms
Inventory Lot Definitions
Inventory Lot Components | Definition |
|---|---|
Item | |
Site | |
Production Batch | |
Warehouse Lot | |
Owner |
Balance Definitions
Term | Definition |
|---|---|
On Hand | |
On Hold | |
Committed (-) | |
Committed (+) | |
Allocated (-) | |
Allocated (+) | |
Available |
How balances are impacted by transactions
On Hand balances
The table below shows how each transaction impacts On Hand balances.
Functional Area | Transaction Type | Transaction Used for | Change Event | Effect on On Hand Balance |
Sales Order | Sales Order | Selling product to customers | Status changed to "Shipped" or Approved" If the "Include Shipped & Approved Sales Orders in On Hand balances" Inventory Preference is set to "Yes" | Decrease |
Status changed to "Ready to Post" If the "Include Shipped & Approved Sales Orders in On Hand balances" Inventory Preference is set to "No" | Decrease | |||
Sales Return | Recording a Return of product from a customer | Status changed to "Ready to Post" | Increase | |
Price Adjustment | Making changes to Invoices that only impact price, not product balances | This transaction does not change On Hand Balances | None | |
Quick Sale | Recording non-inventory sales to customers | This transaction does not integrate with Inventory | None | |
Inventory | Adjustment (negative qty) | Correcting product balances | Status changed to "Ready to Post" | Decrease |
Adjustment (positive qty) | Increase | |||
Production - Output (positive qty) Used to create inventory | Recording the results of production | Increase | ||
Production - Output (negative qty) Used to reverse Production | Decrease | |||
Production - Input (positive qty) Product issued to Production | Recording what was consumed in production | Decrease | ||
Production - Input (negative qty) Return Product that had been issued to Production | Increase | |||
Receipt (positive qty) | Recording what was received from a purchase | Increase | ||
Receipt (negative qty) | Decrease | |||
Inventory: Transfer (From) (Transfer Sent) | Recording product movement from one facility to another | Decrease | ||
Inventory: Transfer (To) (Transfer Receipt) | Increase | |||
Lot placed "On Hold" | Assigning a Hold Code(s) to a Lot | This event does not change On Hand Balances | None | |
Lot removed from "Hold" | Removing a Hold Code(s) to a Lot | None | ||
Fisherman Accounting | Fisherman Sale | Selling product to a fisherman | This transaction does not integrate with Inventory | None |
Tender Resale | This transaction does not integrate with Inventory | None |
On Hold balances
The table below shows the types of Inventory Lots that can be placed on Hold and how the Hold Code impacts Available balances.
Item Type | Uses Production Batches - Is Lot Tracked | Warehouse Lot Tracked Site | When On Hand balance is: | Impact |
|---|---|---|---|---|
Sales Inventory | No | Warehouse Lot Tracked | Greater than 0 | The entire On Hand balance of the item, in the Warehouse Lot, will be on Hold and the Available balance will be reduced by that amount. |
Less than or equal to 0 | The Hold Code will still apply but the On Hold quantity will be 0.00. Once the On Hand balance exceeds 0, the entire On Hand balance will be On Hold and the Available balance will be reduced by that amount. | |||
Non-Warehouse Lot Tracked | Greater than 0 | All quantity of the item, within the Site, will be on Hold and the Available balance will be reduced by that amount.. | ||
Less than or equal to 0 | The Hold Code will still apply but the On Hold quantity will be 0.00. Once the On Hand balance exceeds 0, the entire On Hand balance will be On Hold and the Available balance will be reduced by that amount. | |||
Yes | Warehouse Lot Tracked Site | Greater than 0 | All quantity of the item, for a single Production Batch, in the Warehouse Lot within the Site, will be on Hold and the Available balance will be reduced by that amount. | |
Less than or equal to 0 | The Hold Code will still apply but the On Hold quantity will be 0.00. Once the On Hand balance exceeds 0, the entire On Hand balance of the Inventory Lot will be On Hold and the Available balance will be reduced by that amount. | |||
Non-Warehouse Lot Tracked | Greater than 0 | All quantity of the item, for a single Production Batch, within the Site, will be on Hold and the Available balance will be reduced by that amount. | ||
Less than or equal to 0 | The Hold Code will still apply but the On Hold quantity will be 0.00. Once the On Hand balance exceeds 0, the entire On Hand balance of the Inventory Lot will be On Hold and the Available balance will be reduced by that amount. | |||
Discontinued, Flat Fee, Kit, Misc Charges, Services, & Tax | Perpetual Inventory Balances are not tracked for these Item Types so they cannot be placed on Hold. | |||
Committed (-) balances
Transaction Type | Comment | When the quantity is | Transaction used for |
|---|---|---|---|
Inventory - Adjustment |
When the line item is missing a Production Batch or Warehouse Lot | Negative | Recording a reduction in the balance of inventory |
Inventory - Production - Input | Positive | Recording what is being consumed during production | |
Inventory - Production - Output | Negative | Un-recording Production (used to correct overstated Production) | |
Inventory - Receipt | Negative | Un-recording a Receipt (used to correct an overstated Receipt) | |
Inventory - Transfer (sending Site) | Positive | Recording what is being sent to another site | |
Sales Order | Ordered quantity | Positive | Recording the requested quantity on a sales order |
Note: Committed balances are only applicable to line items on Inventory Transactions where the Line item is missing a Production Batch or Warehouse Lot or to the Ordered quantities on Sales Orders and Sales Returns.
Committed (+) balances
Transaction Type | Comment | When the quantity is | Transaction used for |
|---|---|---|---|
Inventory - Adjustment |
When the line item is missing a Production Batch or Warehouse Lot | Positive | Recording an increase in the balance of inventory |
Inventory - Production - Input | Negative | Un-recording a Production Input (used to correct an overstated Production Input) | |
Inventory - Production - Output | Positive | Recording what is being made during production | |
Inventory - Receipt | Positive | Recording what is being received from an outside supplier | |
Inventory - Transfer (receiving Site) | Positive | Recording what is being received from another Site | |
Sales Order | Ordered quantity | Negative | Recording the requested quantity being returned on a sales order (a negative sales order line) |
Sales Return | Positive | Recording the requested quantity to be returned |
Allocated (-) balance
Transaction Type | Comment | When the quantity is | Transaction used for |
|---|---|---|---|
Inventory - Adjustment |
When the line item contains either a Production Batch or Warehouse Lot or the Item is NOT Lot-Tracked | Negative | Recording a reduction in the balance of inventory |
Inventory - Production - Input | Positive | Recording what is being consumed during production | |
Inventory - Production - Output | Negative | Un-recording Production (used to correct overstated Production) | |
Inventory - Receipt | Negative | Un-recording a Receipt (used to correct an overstated Receipt) | |
Inventory - Transfer (sending Site) | Positive | Recording what is being sent to another site | |
Sales Order | Allocated quantity | Positive | Recording that actual quantity that will ship on a sales order |
Allocated (+) balance
Transaction Type | Comment | When the quantity is | Transaction used for |
|---|---|---|---|
Inventory - Adjustment |
When the line item contains either a Production Batch or Warehouse Lot or the Item is NOT Lot-Tracked | Positive | Recording an increase in the balance of inventory |
Inventory - Production - Input | Negative | Un-recording a Production Input (used to correct an overstated Production Input) | |
Inventory - Production - Output | Positive | Recording what is being made during production | |
Inventory - Receipt | Positive | Recording what is being received from an outside supplier | |
Inventory - Transfer (receiving Site) | Positive | Recording what is being received from another Site | |
Sales Order | Allocated quantity | Negative | Recording that actual quantity that is being returned |
Sales Return | Positive | Recording that actual quantity that is being returned |
Available Balance
Inventory Balance Examples
Lot Tracked Item in a Warehouse Lot tracked Site
The table below shows the running balance totals for each balance type at the Inventory Lot level
Event | On Hand | On Hold | Committed (-) | Committed (+) | Allocated (-) | Allocated (+) | Available |
Begin the month with 500 cases of Item ABC, in Site CCS It is all from Production Batch 0525 and is located in Warehouse Lot ABC. It is all assigned the Owner of Main and none of it is on Hold. | 500 |
|
|
|
|
| 500 |
Entered a Production Output Transaction for 100 more cases that are all going into the same lot. The transaction is not yet posted. | 500 |
|
|
|
| 100 | 600 |
Record a positive Receipt transaction for 50 more cases, all going into the same lot. The transaction is not yet posted. | 500 |
|
|
|
| 150 | 650 |
Record a negative Adjustment transaction because 10 cases were destroyed by a forklift. The transaction is not yet posted. | 500 |
|
|
| 10 |
| 640 |
Post the three transactions | 640 |
|
|
|
|
| 640 |
Enter a transfer to send 200 cases to another Site. The transaction is not yet posted. | 640 |
|
|
| 200 |
| 440 |
Allocate 40 case to Sales Order 58415. The transaction is not yet posted. | 640 |
|
|
| 240 |
| 400 |
Post the Sales Order | 600 |
|
|
| 200 |
| 400 |
Post the Transfer | 400 |
|
|
|
|
| 400 |
Put the Lot on Hold | 400 | 400 |
|
|
|
| 0 |