The decision of where to source the items based on the inventory availability. The below example shows how the inventory is calculated.
Inventory 100
CO Reservation 10
Qty Sold not Posted 20
Actual Inventory 100 - 10 - 20 = 70
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Safety Stock 10%
Available Quantity 70 - 7 = 63
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Expected Purchase Inbound Quantity 27
Expected Sales Outbound Quantity 30
Expected Available Quantity 63 + 27 - 30 = 60
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Final Result 60
The Effective Inventory feature takes into account expected inbound and outbound quantity on documents such as purchase, sales and transfer orders during the inventory calculation. To use the Effective Inventory functionality in the Customer Order module, you need to configure the Stock Calculation FastTab in the Customer Order Setup page:
Effective Inventory:
- Effective Inv. Sales Order: Specifies how the quantity will be included in Effective Inventory for Sales Order.
- Sales Order Coverage Days: Specifies how far into the future to consider the Sales Orders when calculating the Effective Inventory. This is applicable when Effective Inv. Sales Order is set to Coverage.
- Sales Order Historical Days: Specifies how far back into the history to consider the Sales Orders when calculating the Effective Inventory. This is applicable when Effective Inv. Sales Order is set to Coverage.
- Effective Inv. Purchase Ord.: Specifies how the quantity will be included in Effective Inventory for Purchase Order.
- Purchase Order Coverage Days: Specifies how far into the future to consider the Purchase Orders when calculating the Effective Inventory. This is applicable when Effective Inv. Purchase Order is set to Coverage.
- Purchase Order Historical Days: Specifies how far back into the history to consider the Purchase Orders when calculating the Effective Inventory. This is applicable when Effective Inv. Purchase Order is set to Coverage.
- Effective Inv. Transfer Inb.: Specifies how the quantity will be included in Effective Inventory for Inbound Transfer Order.
- Effective Inv. Transfer Outb.: Specifies how the quantity will be included in Effective Inventory for Outbound Transfer Order.
- Transfer Order Coverage Days: Specifies how far into the future to consider the Transfer Orders when calculating the Effective Inventory. This is applicable when Effective Inv. Transfer Order is set to Coverage.
- Transfer Order Historical Days: Specifies how far back into the history to consider the Transfer Orders when calculating the Effective Inventory. This is applicable when Effective Inv. Transfer Order is set to Coverage.