Understanding inventory levels

A product has several different kinds of inventory levels, each of which details information about how many units of a product are available in various states.

Inventory levels can all be seen at Products > List Products/services:

inventory level sky

They can also be viewed on the Inventory summary or Inventory detail reports (Products > Inventory summary, and Products > Inventory detail respectively).

This is what each figure means:

Inventory level Definition
In stock The total number of items in the warehouse, including items fulfilled to goods-out notes, items in the packing process and anything else in progress.
Allocated The total number of items reserved for orders, plus the total number of items that are fulfilled to open goods-out notes (fulfilled but not yet shipped).
On hand The total quantity of an item in stock less total allocated. This is the value that you have available to allocate to other sales orders.
On order The total number of items on open purchase orders which have not yet been received.

It's important to remember that:

On hand = In stock - Allocated

This diagram shows how inventory levels change as actions are performed:

inventory levels

Inventory information popup

On any report that displays inventory levels, you can click on any of the blue numbers to view a summary of how the figures are made up:

inventory details

The tabs on the popup are as follows:

Tab Definition
Information This tab displays the SKU, the product type, and the product's long and short descriptions. It's useful if you want to give someone more details on a product.
Inventory The stock levels of the product at each warehouse. Also details the product's default location, minimum stock level and reorder quantities per warehouse, and provides a list of which open purchase orders the product is on.
Variants If the product is in a product group, this tab lists all of the in stock, on hand and allocated levels of every product in the group, per warehouse.
Allocations This tab details the sales, transfers and goods-out notes where the product's stock is allocated.

Video

Understand what each inventory figure represents and how they are updated by various processes.

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