Also be sure to read our support document on Order Statuses
1. Inventory on Hand
Definition: The total number of units physically located in our warehouse(s).
If you have 250 units in the Florida warehouse + 250 units in the California warehouse, your Inventory on Hand would be 500 units.
2. Available Inventory
Definition: Inventory that is available to be added to orders (if this number is negative, it means you need X number of units to fulfill all your backorders).
If you have 500 units on hand, and 100 of those units are being allocated to orders, then you have 400 units of Available Inventory left that could be used for orders.
3. Final Inventory
Definition: Inventory value that will be left after all orders (including backorders) are shipped.
You have 50 units in stock for SKU A. You have 5 units of SKU A on Order #1 that's in processing but you also have Order #2 that has 10 units of SKU A and 1 unit of SKU B.
However, SKU B currently is out of stock so Order #2 is on backorder.
SKU A's inventory levels would read On Hand: 50, Available Inventory: 45, Allocated Inventory: 5 and Final Inventory: 35.
Final Inventory is 35 units because both orders would require 15 units of SKU A.
Notice though that Allocated Inventory is only 5 units of SKU A. This is because while Order #1 is ready to fulfill and currently processing, Order #2 is on backorder and therefore the other 10 Units of SKU A do not need to be allocated yet until SKU B is back in stock.
4. Allocated Inventory
Definition: Inventory that is not available because it has already been sold (orders that are Processing, Submitted for Fulfillment, or are in a Pick in Progress).
If you have 100 orders that have been "submitted for fulfillment" and are waiting to be picked, packed, and shipped, then your Allocated Inventory would be 100 units.
5. Expected Inventory
Definition: Inventory that is expected, but has not arrived at our warehouse.
If you created a new receiving for 500 additional units that are on their way to one of ShipMonk's warehouses, then you have 500 units of Expected Inventory.