Allocated formula

You can select whether to include backorders, items on order, items in transit, work in process, or hold quantities when allocating inventory. You set up these formulas when you have defined your Inventory Control company as available to allocate and available to sell.

The basic formula is Stock-on-hand - Allocated inventory - In process = Available quantities

You can choose to add or subtract these quantities:

• Backordered quantities
• On order, for example, open purchase orders
• Intransit
• Work in process
• Hold quantity

You define the formula for inventory that is available to allocate when you set up your Inventory Control company.

The available to sell quantity is used with customers who do not allow backorders. If there is insufficient stock, then you cannot add an order line for a client who does not accept backorders. By using the available to sell formula, you can alter the available stock-on-hand quantity. For example, you can choose to add in the on-order quantities from open purchase orders to the stock-on-hand quantity. If there is insufficient stock, but you have an order arriving from a vendor for that item, then you can add the order line for a customer who does not accept backorders.