Understanding How Business Processes Affect Inventory

Inventory is only affected when a product is set up to require inventory. If no inventory is required, the order entry business processes do not have any effect on inventory. Inventory control levels are found on the Inventory > General tab of a Products record and are labeled Quantity On Hand, Quantity Reserved, Quantity Shipped, and Quantity Balance. These read-only fields on the upper portion of this tab shows where a product's inventory is allocated at a given point in time based on order status.

Inventory levels are affected differently depending on the status of an order for the product and the order's type. There are four different order types (regular orders, quotations, cancellations, and back orders/partial shipments) and four different order statuses (taken, shipped, back-ordered, and canceled).

This section provides an overview of how the following scenarios impact inventory levels:

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