What does applied stock mean?

I've been told that some stock has not been applied in some of my orders..what does applied stock mean, and how can I resolve it?

 

Answer

When you 'apply stock' in a transaction, the system recognizes a certain quantity is dispatched from the system, and the inventory is adjusted accordingly.

Usually, when using standard FIFO products, entering a Fully Dispatched date automatically applies all stock in an order - effectively dispatching all goods and adjusting the inventory. If you've been using Cin7, you've probably been applying stock to transactions without even realizing it.

It is also possible to manually apply stock to a transaction. This happens most often when you are using batch or serial numbers - and so are required to individually choose which stock to apply, using those little green arrows to select the stock.

FIFO stock can be applied manually too - this might be relevant if you want to dispatch stock out of FIFO order, or if you only want to dispatch some line items from an order, perhaps when creating a back order. You can use the green arrows to apply FIFO stock.

With me so far?

It's pretty easy to see which lines in an order have been applied:

 

In the screenshot above, you'll see that the qty dispatch is the same as the quantity ordered. Moving down you can see that there is a record of which item was dispatched, and then moving down again you can see the specific item that has been applied. There's even a note that says 'applied'.

So why do we need to know all of the above? There are some situations where stock may end up unapplied, even though there is a fully dispatched date. This can cause issues further down the line.

The first is when you are creating a back order and the qty dispatched is less than the qty ordered. This is fine, provided that you remember to create a backorder afterwards. Otherwise you'll end up with stock that is 'unapplied'.

The second instance is if you return to a fully dispatched order, and then remove some of the applied stock. The system provides this function so that you can make changes, but the assumption is if you unapply stock you will reapply different stock after.

To have a well-oiled system you'll need to make sure that all stock is applied correctly.

 

 

8/16/2017 - Daniel