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

 

More:

Safety Stock Overview