Understanding the Stock screen
In the "Stock" screen, you can access your "Inventory" list and Stock Adjustments. This article focuses on understanding the "Inventory" list.
Note: You can read more about Stock Adjustments here.
"Inventory" list is the main screen in Katana for managing stock levels for your business. Stock movements in Katana are completely automatic in real time based on your purchasing, making, and selling activities.
The "Inventory" list shows stock levels for all your products and materials at a variant level. You can conveniently see the total "Value of Stock" in hand and the Average Cost per unit.
The list also displays the quantities you have "In Stock", "Committed" to Sales and Manufacturing Orders, "Expected" from the suppliers or manufacturing, and whether you have too much or too little inventory considering your Reorder Points.
You can click on the "In Stock", "Committed" and "Expected" quantities to see more detailed Inventory Intel, which shows stock movements for the last 365 days, all related orders and other relevant info.
Note: the Unit of Measure for each product, material, and variant is set on item cards.
Explaining the quantities in the Inventory list
"In stock" - the amount of stock you currently have on hand (i.e. stock physically in your warehouse).
- For products, this level increases when you complete a Manufacturing Order or create a positive Stock Adjustment. It is decreased when you pack or deliver a Sales Order or create a negative Stock Adjustment. It is also decreased for a product that is used as a subassembly in the Product Recipe when you complete a Manufacturing Order.
- For materials, this level increases when you receive a Purchase Order or create a positive Stock Adjustment. It is decreased for materials included in the Product Recipe when you complete a Manufacturing Order or when you create a negative Stock Adjustment.
"Committed" - the amount of stock that is committed to open Sales and Manufacturing Orders.
Products are committed to open Sales Orders or as subassemblies to open Manufacturing Orders.
Materials are committed to products on both open Sales and Manufacturing Orders based on Product Recipes of those products. Materials are committed to only those products on a Sales Order for which the Product Availability status is "Not available". If the Product Availability is already "In stock" then no further production is required (i.e. no materials are required). Product Availability status "Expected" indicates that there is already an open Manufacturing Order that is making the required product for the customer order, and thus no materials are committed to this Sales Order to avoid double-bookings.
- For products, the "Committed" amount is increased when you create a Sales Order and the items included in the SO will remain committed until the SO is "Packed" or "Delivered". For a product, it also increases when the product is included in the Product Recipe (as a subassembly) of another product and MO is created for the other product.
- For materials (or products you use in other Product Recipes), this is increased when you create a Manufacturing Order or a Sales Order and the products included in the order require the material. Materials will remain committed until the MO is completed or the Sales Order delivered. Click on the quantity to see all related orders and more relevant info.
"Expected" - the amount of stock that is expected to arrive in the warehouse from open Purchase or Manufacturing Orders.
- For products, this is increased when you create a manufacturing order and the items included in the MO will remain expected until the MO is completed. Click on the quantity to see all related orders and more relevant info.
- For materials, this is increased when you create a Purchase Order and the items included in the PO will remain expected until the PO is "Received".
Reorder Point - the level of inventory for a product or a material that indicates a need to replenish that particular item's stock. Reorder Point can be set and edited on the item card. Read more about Reorder Point, How to set a Reorder Point, and Determining the appropriate level of Reorder Point.
Missing / Excess = In stock - Committed + Expected - Reorder Point. Indicates whether your stock level is above or below an optimal level, based on your stock in hand, expected, committed, and a Reorder Point you have set for your items. Negative values mean you should create a new Manufacturing Order for a product or a Purchase Order for a material. This helps to ensure you always have enough items in your warehouse to satisfy the expected demand from customers or manufacturing. However, also keep in mind that too much excess inventory is also not preferable as it comes at a cost (cash is tied up, you need to rent additional warehouse space and pay salary to people handling the stock etc.).
Quick-add Purchase and Manufacturing Orders
To quickly create a new Purchase Order for a material or a Manufacturing Order for a product, click on the "+" button at the end of the line for a specific item. This is a quick way to create MOs or POs for products or materials to re-establish optimal stock levels.
To enter more details or edit the newly created Purchase or Manufacturing Order, navigate to the PO or MO card in the "Buy" or "Make" screens in Katana.