Finished Goods Inventory
Finished-goods inventory is the running record of product stock, kept as a ledger in exactly the same way as materials inventory: movements are appended as entries and the position is summed per product and location. What's different is that finished goods track a demand side — what customers want and what's been set aside — not just what's physically on hand.
What it adds over materials
Finished goods can be made, so the ledger has one extra event the materials ledger doesn't:
- PRODUCE — finished goods created by a work order or production order when product is received back.
Otherwise it shares the same vocabulary — ORDER, RECEIVE, DEMAND, ALLOCATE, CONSUME,
TRANSFER, ADJUST, DISPOSE — and the same reversing-entry model, business event date, and
ref back-link.
Deriving the position
Finished goods derive four figures rather than two:
- On hand — physically present: adds RECEIVE, PRODUCE, and ADJUST; subtracts CONSUME, DISPOSE, and TRANSFER.
- Demand — open customer demand: adds DEMAND, relieved by ALLOCATE.
- Allocated — set aside for confirmed orders: adds ALLOCATE, relieved by CONSUME.
- Available — on hand minus allocated.
Positions are grouped by product and location.
Where the entries come from
| Source | Events |
|---|---|
| Purchase orders (finished goods) | ORDER, RECEIVE |
| Work orders (outputs) | ORDER, PRODUCE |
| Production orders (outputs) | ORDER, PRODUCE |
| Sales orders | DEMAND, ALLOCATE, CONSUME |
| Transfers | TRANSFER, RECEIVE |
| Manual operations | ADJUST, DISPOSE |
The interplay between the supply side (purchase, work, and production orders) and the demand side (sales orders) is what the Pipelines section traces end to end.
See also
Read summaries and post manual events through the REST API or the MCP server.