Inventory Quantity can be a rapidly changing number. To understand and manage quantity, you must first understand that there is not an "absolute" quantity number. A quantity normally is only applicable to a specific point in time, and have specific conditions of what's included and what's not included.
The information displayed and entered into Teapplix regarding quantity has the following definitons.
In Teapplix, when we display "Quantity", we use the following terms and definitions:
- Qty on Hand - This is a number that is supposed to be in your warehouse, after all items for "orders marked as shipped in Teapplix" are taken out
- Qty to Ship - This is the total number needed to fulfill open orders known to Teapplix of this product
- Qty Available - This is how many you have for sale. It should equal Qty on Hand minus Qty to Ship
Entering Quantities - Teapplix as Inventory Master
If you maintain Quantity information in Teapplix, you need to be aware of how Teapplix interpret the "Quantity" you enter. One key concept, is that there is always a "date" associated with the quantity you enter.
There are 3 kinds of Quantity records you can enter into Teapplix.
- in stock - This is an absolute count that you perform at the end of a shipping day. (please note that Teapplix operates on California time zone). This causes Teapplix to ignore all quantity records on this product with an earlier day, as well as orders shipped on or before this day.
- credit - This is a relative adjustment, typically entered corresponding to a purchase order or returned item. The date on this should be the day you receive the product.
- debit - This is also a relative adjustment, typically entered corresponding to damaged items, moving stock out of warehouse not reflected on any orders known to Teapplix, etc. The date on this record should correspond to the day the adjustment is effective.
A common mistake is to count products while shipping has not finished. More items are taken out of the warehouse after you finish counting. Teapplix will have an incorrect understanding, as we assume that orders shipped "on or before" the date of the count are excluded from the counted quantities.
Another mistake is not to consider that there may be multiple quantity records per product. Later records may "adjust" the earlier quantity, or may completely "invalidate" the earlier quantity. A new "in-stock" record will cause Teapplix to ignore all quantity record on the same product that have earlier dates.