SKULabs makes reordering easy by auto-populating the "Quantity" field when creating purchase orders.

To set up reorder rule, navigate to Purchase Order Settings page, enter the reorder rule and save at the top right corner.

Setting a Reorder Rule:

SKULabs offers a customizable reorder rule formula that can be adjusted to suit your reordering strategy using the following variables:

on_hand, reserved, free, incoming, alert, sold


On_hand: currently available physical inventory.

Reserved: stock allocated/reserved by open orders awaiting fulfillment.

Free: the net quantity of freely available stock (on_hand - reserved)

Incoming: stock expected to be received from open purchase orders.

Alert: desired stock threshold to replenish stock

Sold: The total quantity of an item that has been sold according to the "# days sold" filters option within the PO Add item table.

Every company has different reordering strategies. Finding the right reorder rule for your needs can be done in a number of ways, here are some common recommendations:

Target Reorder Point

Reorder Point: Set your reorder point equal to the multiple of maximum units sold per day and maximum lead time. This calculation factors in safety stock, which is stock that would be needed in case of delayed PO delivery and unexpected sales spike.

NOTE: It is best practice to account for safety stock, particularly when implementing a lean or just-in-time inventory management strategy.

Set your items' stock alert levels equal to their desired reorder points and then use the following reorder rule:

Math.max(alert - (free + incoming), 0)

Target backordered stock

Back-ordered stock: Equal to the amount of stock customers have ordered but have not yet received because the products are currently out-of-stock.

For businesses that allow backorderering, target backordered stock needed to fulfill open orders by using this rule:

Math.max(0 - (free + incoming), 0)

Advanced reorder rule

How to create a purchase order

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