Finale's reorder capabilities provide an efficient means to generate purchase orders and replenish stock. The reorder capabilities are not required to use Finale - purchase orders can be entered manually or imported from Excel. They are an aid for companies tracking consumption of stock and regularly purchasing new stock to prevent stock outs.
Basic reordering equation
The basic reordering equation calculates, for each product, the amount to reorder. The amount is based on the available quantity at each location (called the location available) and the reorder threshold (called the reorder point). The difference between the reorder point and the location available is, roughly speaking, the amount to reorder.
Basic reorder amount = reorder point - location available
The precise amount also takes into account two optional parameters described below (reorder max and reorder in quantity).
The location available is the quantity on hand, plus committed purchase orders that have not been received or are partially received (quantity remaining is the quantity on order), minus committed sales orders that have not been shipped or are partially shipped (quantity remaining is the reserved quantity):
Location available = QOH at location + quantity on order - quantity reserved
Reordering takes into account committed and reserved orders, as opposed to the quantity on hand alone, so that you can calculate reorders without duplication while outstanding orders exist that are not fully received. Orders in the Draft/editable state do not affect the available quantity and thus are not taken into account in the reordering calculation, so please make sure to commit orders when you want you want them to apply to the available quantity and the reordering calculation. If you accidentally leave orders in the draft/editable state, and then calculate multiple reorders, and then subsequently commit or receive against the orders, you will obviously have duplication.
Please note that orders are associated with locations, not sublocations, so location available can only apply to locations.