What is the difference between on hand, reserved and available?

You open the balance report and see three columns with different numbers for the same item, and ask which one is right. All three are right, and each answers a different question.

The three columns

• On hand — what is physically in the warehouse right now. Go and count it yourself and you will get this number.
• Reserved — part of that quantity already promised to a customer on an approved sales order that has not been delivered. It is on the shelf, but it is not yours.
• Available — what you can sell or transfer today. Simply: on hand minus reserved.

From image 1: A4 copy paper is 150 on hand, 30 reserved, 120 available. Those thirty reams belong to a sales order that has not shipped.

Where does a reservation come from?

Reservations are automatic, made by the Sales module: approving a sales order reserves the quantities on its lines. They are released automatically in two cases: when a delivery note is issued, for the delivered quantity, or when the sales order is cancelled.

There is no "manual reservation" screen; a reservation is a side effect of a sales order, not an action of its own. Both movements appear in the stock ledger as reserve and release.

Why the difference matters

• The system stops you selling or transferring more than the available figure, not the on-hand one — so you never sell goods promised to someone else.
• The reorder report compares available against the minimum, so it can warn you about an item that looks full but is entirely reserved.
• Stock value is calculated on the on-hand figure, because reserved goods are still yours until delivered.

Notes

• Reserved above zero and the goods gone from the warehouse? Check approved, undelivered sales orders — the explanation is there.
• A forgotten sales order that was never delivered or cancelled keeps its quantity reserved forever. Review old orders periodically and close them.
• Reservations do not apply to items with Track Stock off, nor to services.
• POS invoices never reserve; they deduct immediately, because sale and delivery happen at the same moment.