How does Xero calculate tracked inventory item quantities?
Xero uses your purchase, sale and quantity adjustment detail when calculating the number of tracked inventory items on hand. Xero also counts the number of tracked inventory items you have on order and in committed quotes. You can view this information for each tracked inventory item.
Xero calculates the quantity on hand of a tracked item in the following way:
Opening balance quantity + purchases quantity - sales quantity +/- quantity adjustments.
Xero updates the quantity and value on hand for the tracked inventory item when the transaction is approved, not as at the transaction date.
What is included in purchases quantity?
Purchases include items in:
Bills with an Approved status.
Purchase credit notes an Approved status. Xero deducts these from the purchases quantity.
Spend money transactions.
What is included in sales?
Sales include items in:
Invoices with an Approved status.
Sales credit notes with an Approved status. Xero deducts these from the sales quantity.
Receive money transactions.
Tracked items in committed quotes
A tracked item is included in In Committed Quotes where the quote in Xero has an Accepted status.
When the quote is marked as invoiced, the tracked item is no longer counted in In Committed Quotes.
Tracked items on order
A tracked item is included in Quantity on Order where the purchase order in Xero has an Approved status.
When the purchase order is marked as billed, the tracked item is no longer counted in Quantity on Order.