When working with NetSuite inventory management, particularly in warehouse operations, inventory control, or order fulfillment roles, it’s common to encounter confusion regarding the various inventory quantity fields displayed for an item record. Terms like On Hand inventory, Available inventory, and Committed inventory each represent a different perspective on stock levels, and understanding how they relate is essential for accurate demand planning, order allocation, supply chain management, and inventory reporting in NetSuite.
Key Inventory Terms in NetSuite
On Hand Quantity
- The total physical quantity of an item in stock across all locations (or a specific location if filtered).
- Includes items that are already allocated to sales orders or other commitments.
- **Does not** account for pending receipts or transfers.
- Example: You have 500 widgets physically in your warehouse. On Hand = 500
Committed Quantity
- The number of units that have been allocated to open sales orders (and certain transfer orders or work orders, depending on configuration).
- These items are no longer available for other orders.
- Example: Of the 500 widgets, 200 are allocated to open sales orders. Committed = 200
Available Quantity
- What’s left for sale or fulfillment:
- Available = On Hand – Committed
- Reflects the inventory that’s truly free to fulfill new orders.
- Example: On Hand (500) – Committed (200) = Available (300)
Common Confusion Points
- **Why do I have On Hand stock but can’t fulfill orders?**
– The inventory may be committed to existing orders. - **Why does Available show 0 even though I see stock in the bin?**
– That inventory is likely already committed. - **What about incoming stock?**
– Quantities on Purchase Orders or Inbound Shipments are **not included** in On Hand or Available until received.
Other Inventory-Related Quantities
| Quantity | Description |
| Backordered | Items on a Sales Order that cannot be fulfilled due to lack of availability |
| On Order | Quantity on open Purchase Orders (incoming) |
| In Transit | Quantity in transfer between locations (if using Advanced Inventory or Inbound Shipments) |
| Preferred Bin Quantity | The number of units stored in the preferred bin (if bin tracking is enabled) |
Best Practices
- Train fulfillment and sales teams to use **Available**, not just **On Hand**, for order promise dates.
- Use **Saved Searches or Reports** to identify items with low available inventory.
- Consider enabling **Inventory Allocation** workflows or scripting logic to better control commitments.
- If using bin management, use **Inventory Detail** to see exact bin/lot/serial-level stock.
Summary
| Metric | Includes | Excludes |
| On Hand | All physical stock | Nothing (includes committed) |
| Committed | Allocated to Sales/Work Orders | Still free stock |
| Available | What’s free to sell | Committed inventory |
Having a solid understanding of these NetSuite inventory terms, including On Hand, Available, and Committed quantities, helps avoid order fulfillment delays, stockouts, customer dissatisfaction, and miscommunication between warehouse, purchasing, and sales teams. Ensure that your inventory management processes and NetSuite users are aligned on the true representation of these inventory quantity fields to improve accuracy, efficiency, and reporting across your supply chain operations.
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