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Understanding Stock Quantity Calculations

This article explains the different stock quantity categories in PrepBusiness and how they are calculated.

Stock Quantity Categories

PrepBusiness tracks inventory using five quantity categories:

Inbound

The quantity of items expected to arrive at the warehouse.

Increased by: Open and shipped inbound shipments

Decreased by: Receiving items (moves to In Stock)

In Stock

The quantity of items physically present in the warehouse.

Increased by: Received inbound shipments

Decreased by: Shipped outbound shipments

Allocated

The quantity of items reserved for pending outbound shipments.

Increased by: Open outbound shipments

Decreased by: Shipping the outbound shipment (items leave warehouse)

Allocated items are still physically in the warehouse but are committed to outbound orders.

Unsellable

Items that are physically in the warehouse but are not in good condition.

Unsellable items:

  • Are still counted as physically present
  • Are not available for new outbound shipments
  • May need to be disposed of or returned to the client

Available

The quantity of items that can be allocated to new outbound shipments.

Calculated as: In Stock - Allocated - Unsellable

This represents sellable inventory that is not already committed to an order.

Example

If an item has:

  • In Stock: 10 units
  • Allocated: 3 units (for a pending outbound)
  • Unsellable: 2 units

Then:

  • Available: 10 - 3 - 2 = 5 units