Orders with an order type of Regular have an effect on the inventory control levels based on their order status. The order status for regular orders is one of four possible values:

• Taken
• Shipped
• Back Ordered
• Cancelled

The order status determines how inventory is adjusted for each product listed in an order. Each of the possible order status values is described below, along with its effects on inventory quantities.

Taken

Aptify reserves product inventory when an order is taken by a service representative or via the Aptify e-Business Suite interface, but is not shipped.

Aptify reserves inventory by moving units from the product's Quantity Available allocation to the Quantity Reserved allocation.

When inventory is first established for a product, the Quantity on Hand and the Quantity Available fields show the same amount of inventory. In the table below, the product begins this example with nine units in inventory.

When an order for five units is taken but not shipped, the Quantity Available is reduced and the inventory is placed in the Quantity Reserved field. Five of the units are now reserved and are no longer available for sale to other customers.

At the Product Inventory Ledger level, Aptify reserves inventory at the product's default inventory location (as specified on Product's Inventory > General tab), assuming that the location has sufficient inventory (if not, Aptify may select another location that has sufficient inventory and allows direct fulfilment). Alternatively, a user can manually specify a particular inventory location against which the units are reserved on the product's Order Lines form.

Shipped

After an order is taken, it can be filled. The order can only be filled if the inventory required to fill the order is available. Because the Aptify Inventory Control system reserves the inventory immediately when the order is initially created, inventory is always reserved for customers once the order has been saved into the system.

When an order is shipped from the warehouse, the order status can be changed to Shipped. Changing the order status results in the Aptify Inventory Control system moving the required inventory for the order from the Quantity Reserved field to the Quantity Shipped field. Continuing from the example above, the five units are no longer part of the organization's inventory so they are deducted from the Quantity on Hand allocation.

Back Ordered

Regular Orders, Back Orders and Cancellation Orders can be assigned an order status of Back Order. Back Order status simply indicates that an order cannot be filled and is on hold. Orders placed on Back Order have the exact same effect on inventory as when their status is Taken; their inventory is placed in the Quantity Reserved field if not already in that state.

Cancelled

A regular order's order status can be marked as Cancelled if the order status has not been changed to Shipped. Inventory for orders that are cancelled is moved from the Quantity Reserved field back to the

Quantity Available field. Orders may only be marked with a status of Cancelled if they have not been shipped.

Consider this example:

Customer X calls up the Customer Service Department after placing an order. He mentions that he changed his mind and does not want to purchase the items on the order. The service representative pulls up the Orders record in Aptify (Order ID # 100), and determines from the Order Status field that the order has not been shipped. In this case, the amount in the Quantity on Hand field is still 500 rather than 490. For this reason, the service representative cancels the shipment of inventory by changing the order status to Cancelled. The table below shows the effect on inventory from the service representative changing the order status from Taken to Cancelled.