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Understanding On Hand vs Forecasted Qty

Understanding On Hand vs Forecasted Qty

You will see two quantity numbers on product records: On Hand and Forecasted. They tell you different things.

On Hand

On Hand is how many you physically have right now. This number changes when you validate receipts (goes up) or deliveries (goes down).

Forecasted

Forecasted is your expected future quantity. The formula is:

Forecasted = On Hand + Incoming (from POs) − Outgoing (from SOs)

Example

You stock Glock 19 Gen5 pistols:

  • On Hand: 5 (you have five in the safe right now)
  • Incoming: 10 (you have a purchase order for 10 more from Lipsey's)
  • Outgoing: 3 (three are sold on confirmed sales orders but not yet picked up)
  • Forecasted: 5 + 10 − 3 = 12

Why This Matters

  • On Hand tells you what you can sell right now
  • Forecasted tells you what you will have once all pending orders are completed
  • If Forecasted is negative, you have sold more than you can fulfill — you need to order more

Important: If your Forecasted quantity is negative or zero, check your pending purchase orders. You may need to place or expedite an order to avoid running out.

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