Free Stock vs On Hand

Free Stock is the amount of stock available to sell

On Hand is the amount of stock available to sell + the amount of stock allocated to sales that are not shipped.

Stock flow example

A purchase order is created and finalised for 10 units of a product:

• Free stock is 0
• Incoming stock is 10
• On hand stock is 0

The purchase order is received:

• Free stock is 10
• Incoming stock is 0
• On hand stock is 10

A customer buys 5 units of the product:

• Free stock is 5
• Allocated stock is 5
• On hand stock is 10

The order is shipped:

• Free stock is 5
• Allocated stock is 0
• On hand stock is 5