Projected Quantity
Projected Quantity in ERPNext v16 is the system’s best guess of how much stock will be available for a certain Item in the future, based on current stock levels and all known incoming and outgoing stock movements. It is very important for planning inventory, making decisions about buying things, and scheduling production.
Projected Quantity is not a physical stock value. Instead, it is a planning Metric that changes all the time as Purchase Orders, Material Requests, Work Orders, and Sales Orders are made, changed, or filled.
Projected Quantity is the amount of stock that is expected to be available for a certain item based on the current stock levels and other needs.
It shows how likely it is that an item will be available by combining:
- Inventory that is currently on hand
- Incoming quantities that have been planned and confirmed
- Expected amounts of outgoing and reserved items
This gives planners and decision-makers a view of inventory that looks ahead instead of just what is physically available right now.
It is the quantity of gross inventory that includes supply and demand in the past which is done as part of the planning process.
Projected Quantity takes into account both supply-side transactions (like Purchase Orders, Production Plans, and Work Orders) and demand-side transactions (like Sales Orders, Material Requests, and reservations). These transactions could be about the past, present, or future, but they all have an effect on how much inventory is actually available for use.
The planning system uses the projected inventory to keep an eye on the reorder point and figure out how many items to reorder.
In version 16 of ERPNext:
- Projected Quantity is a big part of how the Reorder Level and Reorder Quantity work.
- When the Projected Quantity drops below the set reorder level, the system can automatically suggest or make:
- Material Requests
- Orders for Purchase
- Plans for Production
This makes sure that stock is always available and that there are no shortages.
The planning engine uses the projected quantity to keep an eye on the safety stock levels. These levels are kept up to meet unexpected needs.
Safety stock protects you from changes in demand, delays from suppliers, or problems with production. By keeping an eye on the Projected Quantity all the time, ERPNext helps make sure that:
- Safety stock is not used up by accident
- Before shortages happen, actions like buying or making things are taken.
To figure out how much to order and to find out if there are any shortages, it’s important to keep a close eye on the projected inventory.
Accurate Projected Quantity makes it possible to:
- Finding possible shortages early
- Better scheduling of production
- Better decisions about what to buy
- Lowered costs of carrying and storing extra stock
- Higher rates of customer satisfaction
It is especially important in places where lead times are long, demand changes a lot, or workflows are a mix of make-to-order and make-to-stock.
The following is the formula for figuring out the projected quantity:
Projected Qty = Actual Qty + Planned Qty + Requested Qty + Ordered Qty – Reserved Qty – Reserved Qty for Production – Reserved Qty for Subcontracting – Reserved Qty for Production Plan
Actual Qty:
The number of items that are in stock in the warehouse. Based on Stock Ledger Entries, this shows the actual physical stock of an item that is currently in a specific warehouse. In ERPNext v16, the Actual Qty only changes when a transaction that affects stock is submitted. This could be a Purchase Receipt, Delivery Note, Stock Entry, or Manufacturing transaction. It doesn’t take into account future commitments or planned movements, so it only shows what is physically available at that time.
Planned Qty:
The number of items for which a Work Order has been made but production has not yet begun. This number shows how many finished goods are expected to be made in the future. When you submit a Work Order in ERPNext v16, the Planned Qty goes up. When the Work Order is finished and the stock is received into the target warehouse, the Planned Qty goes down.
Requested Qty:
The number of items asked for in a Material Request. When a Material Request is submitted, this quantity is added to show that there is a need for procurement or manufacturing. It goes down when:
- A Purchase Order is made for a Purchase-type Material Request.
- A Work Order is made for a Manufacture-type Material Request.
- A Transfer-type Material Request makes a Stock Entry.
Requested Qty helps the planning system figure out what needs to be done next, even if those needs haven’t been confirmed as orders yet.
Ordered Amount:
The amount that has been ordered but not yet received through a Purchase Receipt or Purchase Invoice. When you send in a Purchase Order in ERPNext v16, the Ordered Qty goes up. When you get the items you ordered, the Ordered Qty goes down. This value shows how much stock has been confirmed as coming in from suppliers.
Quantity Reserved:
The amount that has been promised for sale in a Sales Order but hasn’t been delivered yet in a Delivery Note or Sales Invoice. When a Sales Order is placed, this amount goes up. When items are delivered or billed, it goes down. Reserved Qty makes sure that committed stock is not seen as available for other orders or planning purposes.
Reserved Quantity for Production:
The amount of raw materials set aside for production when a Work Order is sent in. This reservation makes sure that the materials needed for production are set aside and not used for anything else. When raw materials are moved from the source warehouse to the Work-in-Progress (WIP) warehouse using a Stock Entry, the amount goes down.
Reserved Quantity for Subcontracting:
The amount of raw materials set aside for subcontracting when a Purchase Order for subcontracting is sent. These materials are meant to be sent to a supplier so that they can be made elsewhere. When you move materials to the Supplier Warehouse using a Stock Entry, the reserved quantity goes down.
Reserved Quantity for the Production Plan:
The number of raw materials set aside when a Production Plan is sent in. These are the materials set aside during the planning stage, before Work Orders are made. When Work Orders are made based on the Production Plan and materials are set aside for production, ERPNext v16 automatically lowers the Reserved Quantity for the Production Plan in the right bin. This makes sure that material reservations are tracked correctly from planning to execution.
