The minimum level is the minimum amount of physical inventory to be maintained for a specific stock, supply, or customer goods. Setting a minimum level helps to ensure that there is a set amount of physical inventory that is kept on-hand.
Minimum Level on Stock and Supplies
A stock or supply will appear as 'Requires Reorder' if physical inventory on-hand or available is lower than minimum level.
When a stock is added to a purchase order, it will factor in the minimum level and ensure the purchase order quantity will maintain that minimum level.
Example: Add Per Item - Bond Recycled - 8.5 x 11
256 sheets required for an Item
Minimum Level = 1500
Package Quantity = 1000
Purchase Order Quantity = 2000 (256 Sheets for Item + 1500 Minimum Level = 1756 which rounds to 2000 due to package quantity)
Minimum Level on Customer Goods
On Customer Goods, the minimum level is used for tracking inventory on the Customer Good Low Level report. This is helpful when trying to determine which customer goods need replenishment.