> ## Documentation Index
> Fetch the complete documentation index at: https://docs.lynkacrm.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Inventory calculations: stock, valuation, open POs, and product margin

> Understand the formulas behind available stock, inventory valuation, outstanding purchase orders, goods in transit, reorder risk, and margin.

Inventory reporting combines quantity, purchasing, cost, and fulfillment. A useful calculation must use the right event for each question.

## Stock quantity

Current stocked quantity should reconcile with the quantity movement ledger. Opening stock, receipts, and other supported movements explain how the current number changed.

## Inventory valuation

Inventory valuation uses the active stocked product universe and the configured current-cost basis used by the canonical report. Reporting-excluded fixtures and installation or non-stock records are not allowed to inflate the real inventory total.

## Open purchase order value

Open PO value uses **outstanding quantity**, not the full original PO value after partial receipt.

Conceptually:

`remaining quantity x base unit cost = outstanding base value`

Open purchasing includes the canonical active PO statuses used by the Inventory release logic.

## Goods in transit

Goods in transit represents quantity still expected on open purchasing. Partially received quantity that already arrived is not counted again as in transit.

## Reorder and stock risk

Stock risk can include out-of-stock products and stocked items below their configured minimum, with open replenishment considered by the relevant automation or view.

## Product margin

For stocked products:

`gross profit = invoice net revenue - recognized fulfillment cost`

Recognized cost comes from posted fulfillment quantity and cost snapshot. If stocked invoiced quantity is not fully fulfilled, margin can remain incomplete rather than assuming zero cost.

For non-stock or service items, invoice-line cost snapshots can be used where appropriate.

## Slow-moving stock

Slow-moving stock is a separate operational question from out-of-stock or reorder risk. A product can have plenty of stock and still be slow moving.