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 |