On-Hand Quantity Versus Available Quantity

On-hand quantity refers to the number of parts that are physically in stock in the primary unit of measure. On-hand quantity of parts can be affected by:

• Variances recorded following a physical inventory.

• Daily removals, additions, or transfers of parts.

• Shipment confirmations or updated sales information.

• Locations with lots on hold, such as parts requiring inspection or placed in quarantine.

Available quantity refers to the number of parts that you can use, based on user-defined calculations. You determine how the system calculates part availability by defining the factors that subtract from, or add to, the available quantity of a part. This calculation can include quantities that do not immediately affect on-hand amounts.

For example, you can set up the availability calculation to subtract any quantities that are committed to work orders, and to add any quantities that are included in purchase orders or in transit.