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Available vs. On Hand

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First and foremost, apologies if this has been answered before. I'm unsure as to whether or not this is an overall SL issue or an issue with the way our company has set SL up.

We are continuously running into the issue of the Available # for Inventory going negative - which in turn means shippers (SHP-######) are unable to be confirmed.

Our most recent example is the following:

We had 0 of item X ON HAND. There were 10 ON SALES ORDERS. Thus making the AVAILABLE # a (-10). Which in turn meant our Purchasing Agent purchased a quantity of 10.

The item X was received in full (quantity of 10) giving item X a new total of 10 ON HAND. However, upon receipt we noticed that now there were 17 ON SALES ORDERS. Thus making the AVAILABLE # a (-7). 

Because of all of this, if item X is on a shipper, the shipper cannot be confirmed because the AVAILABLE # is a negative number. This makes absolutely no sense to us, since we have 10 ON HAND. All of the items for the shipper are physically available. We cannot understand why systematically we cannot close a shipper, when in reality - everything is available.

Is there a work around to this? Is the way SL has been set-up not correct? Is there something that we can adjust somewhere to correct this situation? We run into this constantly.

Any information, tips, advice, guidance that can be provided would be extremely appreciated.

Thanks so much.


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