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Inventory Status in SAP Business One

There are four inventory status in SAP Business One found in various places. They are onhand, committed, ordered, and available. The differences between them are fairly obvious in most cases but we're going to walk through where to find the status and their exact definitions according to SAP.

Inventory Status Onhand

Onhand inventory status is what is currently in stock. Please note that this number includes what is already committed on sales orders. So while you may have some in stock, it could be the case that they are still not available to be sold to customers. Your company's business processes must go over what you will do in the case where product is overcommitted.

This number is also the number SAP will use for inventory valuation purposes. Raw materials, finished products, and resale goods all will go into on hand inventory status.

Inventory Status Committed

The committed inventory status means that there is a certain number of items on sales orders. If you remember from an earlier post on the sales process, SAP considers a sales order a commitment from the customer to buy product from your company. This essentially means that the product, while on hand, may not be available for purchase.

All inventory status work together to build demand action reporting for the purchasing side either using custom built reports or MRP.

Inventory Status Ordered

Ordered inventory status displays how much of an item is on purchase orders. This takes into account all purchase orders in the system to come up with a total number. It gives good visibility to sales people on what items, materials, or finish product may be out of stock. It provides a quick check to see what your future inventory stock levels might look like.

Inventory Status Available

Inventory Status Available
Inventory Status Available

This inventory status is a calculated field and cannot be added directly to a marketing document form settings. SAP displays the available inventory status as on hand minus (-) committed inventory. It represents what is currently available for purchase right now.

Available inventory status is a bit hidden in the item master data but useful for looking at the overall picture of inventory status. Navigate to an item in the master data by either clicking the golden arrow link on an item or bring up the item master data form. On the inventory tab you will see the three familiar status of on hand, committed, and ordered. There next to those fields is the additional status available.

Final Thoughts

Form Settings Inventory Status
Form Settings Inventory Status

We recommend you make the inventory status available on the table level form settings for all marketing documents. Doing this will keep inventory status visible to sales people which can mean the difference between closing a quick sale and losing a sale. To enable this view, click on the form settings button on the main SAP icon bar.

Inventory Status Visibility
Inventory Status Visibility

Your marketing document should look just like the one above here. A nice and handy idea for a quick view of an item's current inventory status while in the middle of making a quotation or sale. This tip works especially well in fast paced sales environments when quick access to data is critical.

Author Info

Peter Canale
Peter Canale Follow Connect

Co-founder of SBOhub, starter, experienced executive, and probably having the best day ever.

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