On hand, reserved, committed, and awaiting quantity
Inventory in Erpag is located under Inventory > Products and services, where you can manage the quantities of each item.
The list of products and services is a conjoined list of all entered products, services, consumption products, KITs, Bill of material items, variable products, Variable and Non-inventory products. It also includes Fixed asset, Bill item, and Routing.
There are 4 columns that represent the them: On hand, Reserved, Committed, and Awaiting.
On-hand inventory
On-hand inventory is the total number of items in your warehouse, available for selling or loading into the work order.
An example: if we create a Sales Order that requires 8 pcs of part A, the On Hand will still be 10. This is because we didn’t pack the Sales Order yet. Meanwhile, the reserved and committed will be equal > 8.
Committed quantity
Committed quantity is the total number of an item (part A) required on all sales orders.
Reserved quantity
Quantity is automatically reserved by the oldest entered document (sales order or work order).
If we increase the quantity on our Sales order to 12, the On hand will still be 10. This remains until the Sales order is packed. The Reserved quantity will be 10 since that is how many we have On hand. Meanwhile, the Committed will be 12, matching our Sales order.
Awaiting quantity
Once we generate the Purchase order for 2 pcs of our part A, the Awaiting quantity will be 2. The other numbers will remain the same.
Note: the Purchase order can be created manually or generated through the fulfillment option under the Purchasing module.
Once we receive the purchase order, the Awaiting quantity will be 0. Meanwhile, the On Hand, Reserved, and Committed will each be equal > 12.
If we receive 6 more pcs of part A from our Supplier, only our On Hand quantity will increase. This is because we will have 6 pcs in stock that are not required by any sales or work order.
Transfer documents and quantities
If we create a Transfer document for 2 pcs of part A from one warehouse to another, our On Hand quantity will remain the same. Meanwhile, the Reserved, Committed, and Awaiting will be equal > 2.
Reserved and Committed – because the items are reserved and committed for the transfer document. The Awaiting – because items are awaited in another warehouse.
Once we pack the items for transferring, the On-Hand quantity will decrease by 2. Reserved and Committed will be 0 (since it’s not committed or reserved anymore, it’s Packed and ready to be Shipped). The Awaiting quantity will remain 2 (because we didn’t receive that item in our other warehouse yet).
Once we receive the transferred items and complete the transfer document, our On-Hand inventory will again be 6. The Reserved, Committed, and Awaiting will be 0.
The On-Hand inventory is 6 because the products and services list represents quantity in all warehouses. If we open a product and click on the Info button, we will see that 4 pcs are in our Main warehouse. Additionally, 2 pcs are in our FIFO warehouse.
Quantities and work orders
This is a bit different when it comes to Work orders and how they are generated.
1. If we create a Work order through the manufacturing project, we will have a Launch button:
In this case, our inventory count will be as follows :
2. If we create a Work order through Manufacturing > Work order, there is no Launch Button:
The system goes automatically through SKUs upon saving the Work order. It tags the Work order quantity as Available quantity and sets the reserved and committed quantity as 1, which matches the work order requirement.
We still have 6 pcs On Hand, because we didn’t load the material yet. Once we load the material into our Work order, the On-Hand inventory will decrease by 1. The Reserved, Committed, and Awaiting quantities will go back to 0.
3. If we return to our Work order generated through the Manufacturing project, we can click on the Launch Button. Erpag will go through the inventory and mark the Work order with “In Process” status. It will also highlight the Work order with Available quantity.
The On Hand quantity will remain the same, while the Reserved and Committed quantities will be 1.
Once we load the material in our Work order, the On-Hand quantity will decrease by 1. Just like in the previous case, the Reserved and Committed quantities will go back to 0.
More on loading material in Work Orders: https://www.erpag.com/news/load-material-work-order
In both cases, our product sub a+b will have an Awaiting quantity of 1 for each entered Work order. That quantity will remain until we deliver the finished goods and place the product in stock.
Summary
To sum it all up, in words, without screenshots:
1. On Hand is all of the inventory you have in stock, visible physically in front of you.
This number decreases when a Sales order or a Transfer document is Packed, or when material is Loaded into a Work order. It increases when a Purchase order is received, a Transfer document is received, or Goods are Delivered through a Work order.
2. Committed quantity includes all entered Sales orders, transfer documents, and launched/entered Work orders. This number decreases when the Sales order or the Transfer document is Packed, or material is Loaded into a Work order. It increases only when you create a new Sales order, Transfer document, or Work order. This number may be higher or lower than your On Hand quantity.
3. Reserved quantity is the quantity on Sales orders, transfer documents, launched/entered work orders. This quantity may not match the Committed quantity, as total demand can exceed stock. However, it will equal the On Hand quantity since you cannot reserve more than you have. This number decreases when the Sales order or the Transfer document is Packed, or material is Loaded into a Work order. It increases only when you create a new Sales order, Transfer document, or Work order.
4. Awaiting quantity includes quantities on Purchase orders and Transfers not yet received, and Work orders pending delivery. This number decreases when a Purchase order, Transfer document, or Goods Delivery is completed through a Work order. It increases with new Purchase orders, Transfer documents, and Work orders.
Recent Comments