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--- reports:purchasing [2024/08/06 01:53] – [Report output] Louisa Wong
+++ reports:purchasing [2024/08/12 01:41] (current) – [Report output] Louisa Wong
@@ Line 270: / Line 270: @@
   * Number of months in stock : Calculated by ('Effective SOH') / ('Adjusted AMC'). This gives the number of months the current stock will last based on adjusted consumption rates.
-  * Ordered Quantity used : Calculated by ('Stock on order') - ('Back order'). This is the quantity of stock that will be received after accounting for all back orders.
+  * Ordered Quantity used : This is how much of the stock you have ordered that you will actually need to use, based on how much you use each day and how much stock you already have (Note: forecast calculation will affect this). This is determined by:
+         * Calculate the "usage per day of stock" = AMC / 30.4375
+         * Multiply "usage per day of stock" with the "total number of days in your months stock required" to get "Total usage required" = Usage per day of stock x Total number of days in your months stock required
+         * Calculate your "Future stock on hand" = Stock on order + Effective SOH - Backorder
+         * Subtract "Total usage required" from "Future stock on hand" to get the "Net stock difference to be used" = Total usage required - Future stock on hand.
+         * This value ("Net stock difference to be used") now determines the "Ordered Quantity used".
+                 * If the value is a negative value and there is "Stock on order", add the "Net stock difference to be used" with "Stock on order" = "Net stock difference to be used" + "Stock on order"
+                 * If the value is a positive value and there is "Stock on order", if "Net stock difference to be used" is greater than "Stock on order", the "Ordered Quantity used" will be the same value as the "Stock on order" as all the stock on order will be used up.
   * Suggested Order calculated by: