Quantity Available is QOH (quantity on hand) minus Quantity Reserved.

There are configuration options to determine exactly when and how these inventory quantities are reserved. These config settings are Reserve Inventory for All Orders and Reserve Quantity on Pick.

1) By default these two config settings are set to 0 and the system reserves inventory quantity for open sales orders within the parts lead time. This methodology is designed to help manage cash flow. Cetec ERP will not reserve stock for an order until, based on the leadtime, it is impossible to buy stock in time to fulfill that order. This lets you use that stock as demand arises. For instance, if you take the case of a schedule of six orders with monthly releases, Cetec ERP shows the demand for the parts, but waits to reserve the stock until the dates on those last orders approach. Note that these allocation schemes are only relevant for businesses with extremely high volumes.

2) When Reserve Quantity on Pick is set to 1 the quantity will be reserved once it is picked.

3) When Reserve Inventory for All Orders is set to 1 the quantity is reserved immediately when the order is placed.

For job shops, make-to-order operations, or manufacturers, Cetec ERP should be configured to either: 1. Reserve all material for an order when the order is created (this methodology relies on valid lead times for all raw material and finished goods in question for the order) or 2. Simply relies on the pick of the part to reserve material for an order only when the material is picked (Cetec ERP will always reserve the material if you pick it.)