Understanding order inventory transactions

The following is a list of order entry transactions and how they affect inventory. This sample assumes that all transactions are processed one at a time for the same product.

If the Enable Multi-Warehouses option is enabled on the Inventory System Setup window, each transaction affects a product's inventory at each individual warehouse location.

Process

Qty on Hand

Reserved

Committed

Available

Receive 10 items into inventory

10

 

 

10

Enter an order for 2 items

10

2

2

8

Invoice an order for 2 items

8

0

0

8

Enter an order for 10 items

8

10

8

-2

Invoice the partially shippable order prior to receiving more inventory

0

2

0

-2

Receive 5 items into inventory (which will release the backorder)

5

2

2

3

Invoice the backorder

3

0

0

3

Enter a credit memo (which affects inventory) for 1 returned item

3

0

0

3

Invoice the credit memo for the 1 returned item

4

0

0

4

Enter a positive inventory adjustment for 1 item, and post

5

0

0

5

Enter a negative inventory adjustment for 1 item, and post

4

0

0

4