Sell and Fulfill Inventory
Selling and fulfilling items from our inventory affects our stock levels, accounting records, and item commitment. We can track back ordered items through reports and receive alerts for underwater inventory.
Selling Inventory:
- Record inventory sales by adding an item to a sales transaction
- Sales are integrated with inventory records, inventory records are automatically updated with each sale.
- If the item can be filled from the quantity available:
- The item is committed to the sale
- The quantity committed increases
- The quantity available decreases
- The cost of goods sold increases
- If the item cannot be filled from the quantity available, then the quantity backordered increases
Fulfilling Inventory
An item fulfillment is a transaction that specifies that we shipped some or all items on an order to the customer.
When an order is fulfilled without Advanced Shipping:
- An Item Fulfillment record is created.
- Inventory records are updated with new quantities.
- The total value of the inventory fulfilled is deducted from our Inventory Asset account.
- A customer Invoice is created
Advanced shipping gives our shipping and accounting departments separate processes for fulfilling and billing sales orders. With advanced shipping, we can track partial shipments and invoice customers for partial or entire orders.
When an order is fulfilled with Advanced Shipping:
- An Item Fulfillment record is created.
- Inventory records are updated with new quantities.
- The total value of the inventory fulfilled is deducted from our Inventory Asset account.