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    Quantity on Hand

    Quantity on hand refers to the number of products a business has available after subtracting any items reserved for completed sales.

    What Is Quantity on Hand?

    Quantity on hand is an inventory management term that describes the number of products on warehouse or retail shelves, not including any items designated for completed sales (such as items waiting to be picked up by customers who made online purchases).

    Most businesses use inventory management software and processes to automate calculations of quantity on hand and other metrics. If a business has 100 items on shelves, for example, but creates a sales invoice for 20 items, the system will automatically update to reflect 80 items on hand. 

    With this system, the business doesn’t need to spend time and energy manually counting and tracking products; the work is done for them, freeing up time to focus on other value-adding tasks.

    Keeping a strong pulse on inventory via metrics such as quantity on hand is critical for businesses because deadstock can be costly and fulfillment delays can impact customer trust.

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