Understanding Inventory Levels
Columns
On Hand: A sum of all inventory in the warehouse. Comprised of:
Available to Pick: Inventory ready for picking and packing to fulfill orders
On a shelf or racking
Variance overages
Pending: Inventory in the warehouse but not ready for order fulfillment or sale.
In a staging area
Pending putaway
Cancelled shipments
Variance shortages
Processing: Inventory allocated to an active order with a created shipment.
Reserved inventory for shipments
Being picked or packed
Damaged: Inventory marked as damaged, not for sale.
On Hold: Inventory on hold, not for sale.
To be Processed: Inventory awaiting processing (shipment not yet created). Does not deduct from available or on hand.
Backorder: Unavailable to fulfill orders, awaiting stock
Incoming: Inventory en route to the warehouse via an ASN.
Available for Sale: A calculation of Available stock minus To be Processed stock
ASN Flow
ASN Status | Example | Increment / Decrement |
Awaiting | We have been sent 5 units. These units will now show under “Incoming” | “Incoming” increases by 5 |
Received | Once we physically receive the 5 units, the inventory status changes to "Pending." | The "Pending" and "On-Hand" counts both increase by 5 units each. |
Putaway | After the inventory is put away and stored, the units move out of the "Pending" status. | The "Available to Pick" inventory count increases by 5 units, while "Pending" decreases by 5 units. |
Order Flow
Order Status | Description/Example | Increment/Decrement |
Order Created | An order is created for 3 items, but no shipment is created. | "To be Processed" goes up by 3; All other columns remain unchanged. |
Shipment Created | A shipment is created for the order. | "To be Processed" goes down by 3; "Available to Pick" goes down by 3; "Processing" goes up by 3. |
With Carrier | Once the shipment is packed and handed to the carrier. | "Available to Pick" goes down by 3; "Processing" goes down by 3; "On Hand" goes down by 3. |
Audits and Cycle Counts
Cycle Count Status | Description/Example | Increment/Decrement |
Unapproved: Surplus | Overage units found will not reflect in the available until a putaway is conducted. Overage units are assumed to have never been accounted for and will be entered similarly to an ASN flow. Example: finding 5 overage items. | "Pending" goes up by 5. "Available to Pick" and other columns remain unchanged until putaway. |
Unapproved: Shorted | Shorted units decrease from the available and increase in the processing column until the shortage is validated. If we find 5 items are missing, "Pending" goes up, and "Available" decreases to prevent overselling. | "Pending" goes up by 5; "Available to Pick" goes down by 5. |