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

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

Setting a Re-order Rule:

SKULabs offers a customizable re-order 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 re-ordering strategies. Finding the right re-order rule for your needs can be done in a number of ways, here are some common recommendations:

Target a re-order point

Re-Order Point: Set your reorder point equal to the multiple of maximum units sold per day and maximum lead time (factoring in emergency delays).

Set your items' stock alert levels equal to their desired re-order points and the use the following re-order rule:

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

Target a re-order point with safety stock

Safety stock: Equal to stock that would be needed in case of delayed PO delivery. It is roughly the multiple of maximum daily sales and maximum delay time.

Best practice says to reserve safety stock just in case of unexpected sales spike or a delay in PO delivery time, particularly when implementing a lean or just-in-time inventory management strategy.

Set items' stock alert levels to equal to re-order points. Then, determine a safety stock factor. One way to determine a safety-stock factor is as a percentage of available stock (free + incoming). For instance, if you use a safety stock factor of 15%, the re-order rule would be:

Math.ceil(Math.max(alert - (free + incoming) * 0.15, 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)

How to create a purchase order

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