In Zoho Inventory, the **Inventory Summary Report** provides an overview of stock levels and movements for items across your warehouses. The report includes various status definitions that describe the state of inventory items based on specific transactions and stock tracking methods. Below is a description of the key status definitions as found in the Inventory Summary Report, based on available information:
1. **Quantity Ordered**:
- **Definition**: Represents the total quantity of items ordered from vendors through issued purchase orders that are currently active (not yet received or canceled).
- **Calculation**: This is based on the number of items in open purchase orders with statuses such as "Issued" or similar, indicating that the order has been placed but the items have not yet been received.
- **Purpose**: Helps track items that are expected to arrive, aiding in planning for future stock availability.
2. **Quantity Committed**:
- **Definition**: Refers to the quantity of items allocated to confirmed sales orders, meaning these items are reserved for customers but have not yet been shipped or invoiced.
- **Calculation**: Calculated based on the number of items in sales orders with a "Confirmed" status, indicating a commitment to sell these items.
- **Purpose**: Indicates stock that is already spoken for, helping to manage inventory allocation and avoid overselling.
3. **Quantity In**:
- **Definition**: The total quantity of items that have entered your inventory through purchase-related transactions.
- **Calculation**: Derived from the number of items recorded in vendor bills raised or purchase receives (e.g., when goods are physically received and logged).
- **Purpose**: Tracks incoming stock to monitor inventory replenishment and assess stock inflow.
4. **Quantity Out**:
- **Definition**: The total quantity of items that have left your inventory due to sales or shipment activities.
- **Calculation**: Based on the number of items included in invoices sent to customers or shipment orders generated.
- **Purpose**: Monitors stock depletion, helping to understand sales trends and inventory turnover.
5. **Quantity Available**:
- **Definition**: The physical quantity of an item available in your inventory for sale or use.
- **Calculation**: Determined by the chosen stock tracking method (e.g., FIFO or Weighted Average Costing). Typically calculated as:
- **Quantity Available = Quantity In - Quantity Out - Quantity Committed**
- Alternatively, for Zoho Books, it’s described as **Stock Available for Sale = Quantity In - Quantity Out - Committed Stock**.
- **Purpose**: Provides a clear view of stock on hand that can be used for sales or other purposes, crucial for inventory management.
6. **Inventory Asset Value**:
- **Definition**: The monetary value of the stock available for an item, calculated based on the costing method selected during item creation.
- **Calculation**:
- **FIFO (First In, First Out)**: Inventory Asset Value = Stock on Hand × Cost Price Per Unit (based on the earliest purchase cost).
- **Weighted Average Costing (WAC)**: Inventory Asset Value = Total Cost of Stock ÷ Total Quantity Available.
- **Purpose**: Helps assess the financial value of inventory, useful for accounting and financial reporting.