NetSuite offers real-time tracking of inventory levels through three key metrics:
1. Quantity on Hand
This is the total physical inventory currently available in your warehouse or storage locations. Think of it as the total number of units you actually have.
2. Quantity Committed
This refers to the units that have already been allocated to existing sales orders or other demand. They are not available for new orders because they’ve been promised to customers.
3. Quantity Available
This is the net inventory available for new sales or usage. It’s calculated as:
Quantity Available = Quantity On Hand – Quantity Committed
Simple Example
Let’s say you’re tracking inventory for Item A (Bluetooth Speaker).
What this means:
- You physically have 100 units.
- 40 are already committed to customers via sales orders.
- So, only 60 units are open for new orders or internal use.
NetSuite will automatically update these figures based on inventory transactions like sales orders, item fulfillments, purchase receipts, or inventory adjustments.
Why It Matters
- Accurate quantity tracking:
- Prevents overselling
- Supports smooth order fulfillment
- Enables smart inventory planning