There are several ways in which your stock quantity will be affected:
Purchase Order & Inventory Receive
Adding Inventory Manually
Shipment Order & Ship
Removing Inventory Manually
Inventory Adjustment
Purchase Order & Inventory Receive
Purchase order creation has no effect on inventory unless it's received. When you receive your product, the inventory level (Total Quantity) has increased automatically.
Here is a scenario: The "Tobacco leather Watchband" product has 10 in stock. You want to receive more 5 pieces of the product by purchase order.
Product "Tobacco Leather Watchband" current in stock
Total Quantity: 10
Available Quantity: 10
2. Purchase order is created for the product
Quantity of "Tobacco Leather Watchband" within order: 5
Stock count is not changed yet:
Total Quantity: 10
Available Quantity: 10
3.Purchase Order is receipt
Stock Count
Total Quantity: 15
Available Quantity: 15
Adding Inventory Manually
Inventory adding is a manual touch to the inventory level. When you Add Inventory, it means that your inventory level (Total Quantity) will be increased as typed quantity.
Here is a scenario: The "Tobacco leather Watchband" product has 10 in stock. You want to add more 22 pieces to the inventory.
Product "Tobacco Leather Watchband" current in stock
Total Quantity: 10
Available Quantity: 10
2. Add button is clicked
Typed Quantity: 22
3. Inventory adding quantity is saved
Stock Count
Total Quantity: 32
Available Quantity: 32
We need to remind you that shipment orders are fed from the inventory level. Any increment of inventory may change the status of a shipment order on Shortage. Check out the Precious Notes placed at the end of the article.
Shipment Order & Ship
Shipment order creation has no effect on inventory unless it's shipped. When you ship your shipment orders, the inventory level (Total Quantity) has decreased automatically because of the physical movement of the product.
Here is a scenario: The "Tobacco Leather Watchband" product has 32 in stock. You want to ship an order with 5 pieces of packed product.
Product "Tobacco Leather Watchband" current in stock
Total Quantity: 32
Available Quantity: 32
2. Shipment order is created for the product
Quantity of "Tobacco Leather Watchband" within order: 5
Stock count is not changed yet:
Total Quantity: 32
Available Quantity: 32
3.Shipment Order is shipped
Stock Count
Total Quantity: 27
Available Quantity: 27
Removing Inventory Manually
Inventory removing is a manual touch to the inventory level. When you Remove Inventory, it means that your inventory level (Total Quantity) will be decreased as typed quantity.
Here is a scenario: The "Tobacco leather Watchband" product has 27 in stock. You want to remove 5 pieces from the inventory.
Product "Tobacco Leather Watchband" current in stock
Total Quantity: 27
Available Quantity: 27
2. Remove button is clicked
Typed Quantity: 5
3. Inventory removing quantity is saved
Stock Count
Total Quantity: 22
Available Quantity: 22
Inventory Adjustment
Inventory adjustment is another way to manually handle your inventory level. Adjustment may have positive or negative effect on the inventory level (Total Quantity).
Scenario 1: The "Tobacco leather Watchband" product has 22 in stock. You've figured out that you counted your inventory false, the real stock count should be 24.
Product "Tobacco Leather Watchband" current in stock
Total Quantity: 22
Available Quantity: 22
2. Adjust button is clicked
Typed Quantity: 24
3. Adjustment quantity is saved
Stock Count
Total Quantity: 24
Available Quantity: 24
Scenario 2: The "Tobacco leather Watchband" product has 22 in stock. You've figured out that you counted your inventory false, the real stock count should be 18.
Product "Tobacco Leather Watchband" current in stock
Total Quantity: 22
Available Quantity: 22
2. Adjust button is clicked
Typed Quantity: 18
3. Adjustment quantity is saved
Stock Count
Total Quantity: 18
Available Quantity: 18
Precious Notes
Manual or automatic change of inventory is not solely related to inventory level changing. Inventory level and shipment order have direct contact with each other. Every status of shipment order is defined according to an adequate inventory level. Any inventory level change may trigger any shipment order status change.
Scenario 1: There are shipment orders both on Shortage and Ready to Pack statuses for "Tobacco Leather Watchband" product. You've received 5 more for the product.
There are 3 orders on Shortage and 2 orders on Ready To Pack status. Total Inventory quantity is 8. Because of 2 orders on Ready to Pack, Available Quantity is 1.
When you receive 5 products, your inventory level will increase. But there are orders on Shortage which can be fulfilled by this 5 receipt-product. Auto inventory management runs in these circumstances. Some orders evolve to Ready to Pack and inventory level is rearranged.
Note: When you add 5 more products to your inventory by Add button, or when you adjust your inventory to 13 by Adjust button, the inventory level changes. These 2 cases create the same effect for Scenario 1.
Scenario 2: There are shipment orders both on Shortage and Ready to Pack statuses for "Tobacco Leather Watchband" product. You've removed 4 product from the inventory of it.
There are 3 orders on Shortage and 2 orders on Ready To Pack status. Total Inventory quantity is 8. Because of 2 orders on Ready to Pack, Available Quantity is 1.
When you remove 4 products, your inventory level will decrease. And, there are orders on Ready to Pack which cannot be fulfilled anymore, because of lack of inventory level. Auto inventory management runs in these circumstances. Some orders should move to Shortage to prevent you from selling run-out-of-stock products, and inventory level should be rearranged.
Note: If you adjust your inventory to 4 by Adjust button, it creates the same effect for Scenario 2.
What's Next?
Do you want to see a work flow for shipment order? Check it out!
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