Inventory Update Logic

Order Processing (OP) > Order Processing Overview > Order Processing - Inventory Update Logic

Inventory Update Logic - Order Entry

This table shows how the Inventory Item Quantity fields are updated by the system as each type of sales order or loaner order line is saved.

Fulfillment Method	Reserved Qty	Total Reserved Qty	Allocated Qty	Notes
Warehouse Shipment	Increases by qty ordered if sales order line schedule date is in scheduling window	Increases by qty ordered regardless of schedule date in order line	Increases if item is available and allocated to the order line as the order is saved. (if the line is allocated to, or scheduled past the window, the line is saved as O (open), otherwise as B (backordered).	Reservation and Allocation are based on the Scheduling Window for each item – which is specified using the Lead Days field in the Catalog records and Inventory Items.
Vendor Shipment	Not Updated	Not Updated	Not Updated	Sales Order Lines are saved as open and allocated. Inventory quantities are not updated as the item is being shipped by the vendor.
Special Order	Not updated	Not updated	Not updated	When a Special Order Line is processed, inventory is not reserved or allocated from your inhouse quantities. Instead a PO requisition is created and used to purchase the item for the specific sales order line. The special order line qty is only shown in your inventory after it has been received from your vendor. Special Order Lines are saved as Open and unallocated.
Broker Item	Not updated	Not updated	Not updated	A Broker Item Shipment is handled in the same manner as other vendor shipments. The Broker Item Line is saved as open and allocated. Inventory quantities are not updated as the item is being shipped directly by your vendor to the customer.
Kit Item	Kitted (top level) item and and the component quantities are both increased based on BOM for the Kit.	Kitted (top level) items and the component quantities are both increased based on BOM for the Kit	Kitted item and component qty increase based on the available component qty (the system allocates only qty of complete units that can be built based on component with lowest avail qty).	Kitting design allows components to be sold individually or as part of kit. Kit is only allocated when all components are available and only up to lowest qty available for any component
Non-stock	Increase by qty ordered regardless of scheduling window.	Increase by qty ordered regardless of scheduling window	Increase by qty ordered regardless of scheduling window or available stock. Nonstock items can have allocated quantities greater than the on hand quantity (which is normally 0 on a nonstock item).	Item is always assumed to be available due to item flag. On hand is never updated and should always show 0.
Vendor Ship Nonstock (used to add service charges, shipping, etc to vendor shipment orders).	Increase by qty ordered regardless of window	Increase by qty ordered regardless of window	Increase by qty ordered regardless of window	Item is always assumed to be available. Vendor ship flag is used only to determine if line item invoices with the warehouse lines or the vendor ship lines for the order.

Inventory Update Logic - Purchase Order Entry

Type	Qty Res.	Tot Res.	Allocated	On Order	Notes
Warehouse	No change	No change	No change	Increased by PO Qty ordered
Vendor ship	No change	No change	No change	No change	VS lines are not included in inventory reserved, allocated, or on order quantities.
Special Order	No change	No change	No change	No change	Special order item is not included in on order until received.
Kitted item	No change	No change	No change	On order amt for top item is not adjusted as po not placed for it. Component qty is increased when ordered.	Top level part is kitted (built or created from other parts) and not purchased. Components are purchased based on need.
Broker Item

Inventory Update Logic - PO Receiving

Type	Qty Res.	Tot Res.	Allocated	On Order	Notes
Warehouse	No change	No change	Increases by amt allocated to orders during receiving	Decreases by qty received.
Vendor ship	N/A – not received	N/A – not received	N/A – not received	N/A – not received	See section on invoicing.
Special Order	Increase by qty received	Increase by qty received	Increase by qty received	No change. Quantity, was not added to on order amt when purchase order placed.	On hand, reserved and allocated are increased to keep inventory from being allocated to non-special order so lines.
Kitted item	No change	No change	Top and component items can both increase if all components available after purchase receipt	Component quantities are decreased by qty received.	Top-level part is not purchased. Components are purchased based on need (orders for kits item is included in plus other orders for component)
Non-stock	N/A - not purchased or received	N/A - not purchased or received	N/A - not purchased or received	N/A - not purchased or received	Non-stock items are always available and never purchased.
Vendor ship – Non-stock (Item is set up as non-stock and vendor ship flag in sales order line is set to Y).	N/A - not purchased or received	N/A - not purchased or received	N/A - not purchased or received	N/A - not purchased or received	Vendor ship flag used only to determine which lines item will be invoiced with (vendor ship or normal). Otherwise behaves just as non-stock does.

Inventory Update Logic - Order Completion/Invoicing

Type	Qty Res.	Tot Res.	Allocated	On Order	Notes
Warehouse	Decreased by qty invoiced.	Decreased by qty invoiced.	Decreased by qty invoiced.	No change
Vendor ship	No change	No change	No change	No change	Vendor ship item is simultaneously received and invoiced with no change to in-house in ventory quantities.
Special Order	Decreased by qty invoiced.	Decreased by qty invoiced.	Decreased by qty invoiced.	No change
Kitted item	Top item decreased by qty invoiced. Components decreased by qty invoiced * BOM qty from BOM for kit.	Top item decreased by qty invoiced. Components decreased by qty invoiced * BOM qty from BOM for kit.	Top item decreased by qty invoiced. Components decreased by qty invoiced * BOM qty from BOM for kit.	No change
Nonstk	Decreased by qty invoiced.	Decreased by qty invoiced.	Decreased by qty invoiced.	No change
Vendor ship – Non-stock (item is set up as Non-stock and so line vendor ship flag is set to Y.	Decreased by qty invoiced.	Decreased by qty invoiced.	Decreased by qty invoiced.	No change

Safety Stock Overview