Understanding Inventory Levels

Edited

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.