Practical inventory guide

A sales order creates commitment, allocation reserves physical quantity and delivery removes stock; a derived invoice does not remove it again.

Commitment answers what the business has promised. Allocation answers which usable stock is reserved. Delivery is the physical event. A direct invoice may record an outbound change, but an invoice created from a delivery remains documentary.

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The short answer

This distinction changes the decision you can safely make.

Commitment answers what the business has promised. Allocation answers which usable stock is reserved. Delivery is the physical event. A direct invoice may record an outbound change, but an invoice created from a delivery remains documentary.

Worked example

Use exact units and keep each quantity in the right category.

An order commits 20 pieces. The warehouse allocates 14, then delivers 12. After delivery, the linked commitment falls to 8 and allocation is reduced by the served quantity. A derived invoice for those 12 changes neither physical nor planning stock.

Decision table

Check the facts before choosing an action.

Document/actionPhysical effectPlanning effect
Sales orderNone+ committed
AllocationNone+ allocated within commitment
Delivery− delivered quantity− linked commitment and allocation
Derived invoiceNoneNone

Common mistakes

Avoid shortcuts that create confusion later.

  • Removing stock at order confirmation
  • Subtracting commitment and allocation twice
  • Removing stock again on a derived invoice
  • Treating a logistics return as physical stock return

How KnownStock handles it

The product keeps the explanation with the number.

KnownStock keeps order, allocation, delivery and invoice links explicit, so partial fulfilment and the remaining quantity can always be calculated from the confirmed history.

Ready for a verifiable first movement

Start with one item, one warehouse and one quantity you can explain.

Create a workspace without a card. Use removable sample data or enter one real record, then follow the practical manual at your own pace.