Reduce Inventory and Reserved Inventory

Decrease both actual and reserved inventory when an order ships.

Overview

The Reduce Inventory and Reserved Inventory step decreases both the actual inventory count and the reserved inventory count in a single operation. This is the standard step for order fulfillment when inventory was previously reserved.

Identifier

PropertyValue
KeyReduceInventoryAndReservedInventory
GroupInventory
Applicable StatusesShip, ReadyForPickup, Completed

Configuration Properties

This step has no configurable properties.

Behavior

What It Does

  1. Identifies shipments with Released status
  2. Generates internal references for tracking (OrderId + ShipmentId + LineItemId)
  3. Checks existing inventory transactions to prevent duplicate reductions
  4. For each non-virtual product line item:
    • Calculates quantity (quantity minus canceled quantity)
    • Decreases both actual inventory and reserved inventory at the specified warehouse and virtual warehouse
    • Updates line item cost from inventory if available
    • Converts cost to order currency if different from default
  5. Returns warning if inventory was already reduced for the order

Prerequisites

  • Shipments must be in Released status
  • Line items must not be virtual products
  • Inventory transaction tracking prevents duplicates

Side Effects

  • Actual inventory count decreases
  • Reserved inventory count decreases
  • Creates inventory transaction record
  • Updates line item Cost and CostTotal fields
  • Currency conversion applied if needed

Business Cases

When to Use

  • Standard order fulfillment: The most common inventory reduction step
  • Ship status transition: When order moves to Ship status after being reserved
  • Complete order: When marking orders as completed

Example Scenarios

Scenario 1: Standard Order Ship Order reserved 10 items. When shipped, step reduces both actual inventory and reserved inventory by 10.

Scenario 2: With Cost Tracking Items have cost data in inventory. Step updates line item costs during reduction, enabling margin reporting.

Scenario 3: Virtual Warehouse Shipment has virtual warehouse code for sub-inventory. Step reduces inventory in both physical and virtual warehouse tracking.

Scenario 4: Currency Conversion Inventory cost stored in USD, order is in NOK. Step converts cost at order creation date rate.

Error Handling

ConditionResultContinues Workflow?
Inventory already reducedWarningYes
Reduction successfulSuccessYes
No released shipmentsSuccess (no action)Yes

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