How To Review Inventory Amounts

What is the correct inventory count?  On-hand, Reserved, and Available amounts explained.

The question of "What is my correct inventory count?" often comes up, especially around the time of a physical count. The following instructions will help explain the flow and timing of the inventory control processes.

Review Quantities

NAVIGATION: MAINTAIN menu > Inventory Item Master

  1. Select the Item Number
  2. The Availability counters are displayed at the bottom of the view and show the quantities for On Hand, Reserved, Available, Back Ordered and Purchase Orders.  
  3. These amounts are the totals entered in the system for all warehouses with the exceptions noted below. These quantities do not take into consideration:
    1. Items that have been physically removed from a warehouse but not entered into the system anywhere.
    2. Items entered on Work Orders that are still open.
    3. Items on Purchase Orders that have not been received or posted.
    4. Un-posted inventory transactions.

Explanation of Availability Amounts

  1. On Hand
    1. The processed inventory count.  This is not necessarily the quantity that is physically on the shelf.  This amount includes only transactions that have been entered and posted.
  2. Reserved: This quantity includes two types of un-posted transactions:
    1. The number of sold items that are currently waiting to post in invoices.  These have been removed from the physical inventory but not removed from On Hand.  
    2. Also Inventory transactions that have been entered and not posted will be shown in the Reserved.
  3. Available (Avail)
    1. This total is the On Hand amount minus the Reserved amount.  This may not be the quantity on the self if items have not been entered or posted.  If every transaction has been entered, closed and posted, then this should be the correct Quantity Available on the shelf.
  4. Back Order (BO)
    1. These are items from the Sales program that are on invoices but not shipped due to insufficient quantities.
  5. Purchase Orders (PO)
    1. Items that have been entered on purchase orders. This amount includes items marked as received but not posted.

Reviewing Quantities Per Warehouse

NAVIGATION: MAINTAIN menu > Inventory Item Master

  1. In the Item Number field, select the inventory item.
  2. On the Quick Link toolbar, select QUANTITY REVIEW.
  3. A dialog box will appear with the On hand, Reserve, and Available amounts will be shown for each warehouse

Review Detailed History Per Warehouse

NAVIGATION: MAINTAIN menu > Inventory Item Master

  1. In the Item Number field, select the inventory item.
  2. On the Quick Link toolbar, select VIEW ITEM ACTIVITY.
  3. The current Item Number will be displayed
  4. Select the Warehouse you want to review activity in
  5. Enter or select a Start and End Date for the report range or accept the default which is for the last 2 weeks
  6. Press RUN REPORT
  7. The activity for the item that occurred within the date range will be displayed.  
  8. If no activity appears, then there is no activity for the item within the selected date range.  
  9. Change the Start Date to an earlier date and press the Run Report button again to see if there is activity for the expanded report range.

When Totals are Not in Agreement

Why do the Available totals in the system not agree with the physical inventory? There can be several reasons why the system quantity does not agree with the physical amounts on the shelf.

  1. Have items been removed or added to the physical count, but not recorded in the Horizon software yet?  Entries will not be reflected in the On Hand totals until posted.
  2. Have all of the inventory receiving transactions been posted?
  3. Have all Work Orders with inventory entries been completed and closed?
  4. Have Work Order Invoices been created?  The process to Create Invoices in Maintenance Management transfers inventory between warehouses.
  5. Was an incorrect item number or warehouse used in a transaction?  Mistakes happen.

Correct Item Available Quantities

  1. Review and check for all possible reasons why the Available Quantity does not agree with an Actual Count.
  2.  
  3. If you are performing a full Physical Inventory County, follow the steps in How to Re-Set Inventory for New Physical Count.
  4. To correct just one item that has an incorrect available balance, follow the instructions in How to Adjust Inventory.

1/2022

NEED MORE HELP?  Submit a ticket to the Help Desk or call (814) 535-7810 or (800) 889-3388