Long term GP users still do not always understand the differences in GP inventory quantities. It is very easy for a user to look at the Quantity on Hand that shows thousands of items in stock while the Quantity Available is showing less than a quarter of that. Many people are trained to think of their warehouse inventory as a single number of widgets available. This can quickly lead to stock outs and unsatisfied customers.
What does Available and On Hand Inventory Quantity mean?
The relationship between the Available and On Hand Inventory Quantities is simple to explain, however it can also offer some confusion. We will explain the formula here and show you how to find the information for yourself. The Quantity Available number represents widgets that are not destined for anything beyond the warehouse shelf. The Quantity On Hand inventory is the total number of widgets within the warehouse, whether they have been picked, removed, transferred, or otherwise consumed.
Quantity Available = Quantity On Hand – Quantity Allocated
Any inventory transaction, including sales order fulfillment, adjustment, transfer, variance, and assembly will allocate inventory until the transaction is posted. This means that any inventory adjustment remove transactions that are not yet posted will result in a lower Quantity Available and no change in the Quantity On Hand. Once the transactions are posted the Quantity on Hand will be reduced as well.
Where can I find the GP Inventory Quantities?
You are probably thinking “Great now I know what the difference is, but how can I see what is allocated?” Fortunately, this is very easy inside of Dynamics GP. Within the inventory module, select Item under the Inquiry menu and enter your Item Number; on the right side of the card click on the Allocated link, and the Item Allocation Inquiry card will appear. From here you can see any transactions that have allocated inventory. This insight can play a key role in understanding your inventory workflows and requirements.
To demonstrate if you have 150 Blue Widgets on the shelf and a sales order for 50 is created; the GP Inventory Quantities will reflect this as shown in Figure 1. As you look at the Item Allocation Inquiry(Fig.2) the document number and quantity allocated are shown. After The order is invoiced, we can see that the Quantities on Hand and Available now show only 100 Blue Widgets Total. (Fig. 3) As there are no transactions with allocated items the GP Item Quantities On Hand and Available now match. At the next transaction for a Blue Widget the Quantity On Hand will remain the same and the Quantity Available will change.
Panatrack understands that there is a lot to the Dynamics GP Inventory Module, and even more potential unlocks when you add an embedded WMS such as PanatrackerGP. Therefore our team is available to work with you to craft the right solution for your business.