Understanding Inventory Terms

Here's a handy reference of basic inventory terms used in ShipHero.

SKU
Meaning Stock Keeping Unit. This is a unique identification code given to each product in your inventory. ShipHero will generate a SKU if none exist based on the product id found in the sales channel it exists within.

Backorder: Backorder is how many units you owe to customers for open orders and don’t have stock for in the warehouse.

Available: The number of available stock for any given SKU that is pushed to any connected sales channelThis is On Hand plus any additional Sell Ahead minus any allocations to open orders.
Note: Sell Ahead can be set on a Purchase Order and is frequently used for running pre-orders.

Allocated 
Count of how many units you have in stock and owe to customers for open orders.

Back Order 
Count of how many units are allocated to orders to open orders that do not have On Hand in inventory. 

Bin (Location)
Defined location for organizing SKUs in the warehouse. Inventory can be assigned to a primary location, along with additional overstock locations.
Read about Locations

Kit
A SKU that can contain a collection of other SKUs, referenced as components.
Read about Kits

Name
Typically used as a readable reference for each product.

On Hand 
The total count of a SKU that is currently available for use. (Note, Available is the count indicated in your sales channels) 

On Order
The total count of a SKU that has been ordered from a vendor (also referred to as a supplier)

Pending Return
The total count of a SKU that is currently marked for return and has not been received.

Reserve
Count of a SKU that is not to be sold in your sales channel. 
For example, if you’re running a flash sale and want to hold some stock for returns or exchanges, you would enter your full inventory of say 100 units as the On Hand and a Reserve of 5 units. We’ll then tell the platform that you have 95 available for sale (On Hand minus Reserve). The Available count will remain 100.

Reorder Amount
The number that should be reordered when a SKU reaches the Reorder Level.

Reorder Level
The Available value a SKU must reach to trigger a Reorder. (See Reorder Amount).

Sell Ahead
Count of a SKU that is coming in on a Purchase Order that you want to sell on your platform but have not yet received it.
For example, if you have 10 On Hand, 0 Allocated and a Purchase Order coming in tomorrow with 100 units. You might set a Sell Ahead of 50 of those units and ShipHero will notify the sales channel that there are 60 for sale (Available plus Sell Ahead).