An item is overpicked when the quantity picked and posted exceeds the quantity allocated on the pick list. An overpick may or may not exceed the original order requirement. If an overpick occurs, only the on-hand quantity decreases by the actual amount picked. The following item balances only decrease up to the quantity of the item originally allocated to the order:

• Released requirements
• Total requirements
• Allocated quantity

If an overpick occurs when an order line has not been completely allocated, the total requirements quantity and released requirements quantity both decrease by the difference between the allocated quantity and the order quantity when the order is closed.

For example, suppose the snack bar orders 18 chocolate bars from the warehouse, but only 15 are available to be allocated to the order. However, when the warehouse staff member goes to pick the chocolate bars, 18 are actually on the shelf. In other words, the system-maintained on-hand quantity is incorrect. Since the staff member knows that the snack bar originally ordered 18 chocolate bars, he or she overpicks the quantity by three to equal 18. When the order is posted, the on-hand quantity at the warehouse immediately decreases by 18 to become -3. However, the released requirements quantity, total requirements quantity and allocated quantity all only decrease by 15. As a result, the available quantity is calculated to equal -3; however, the available-to-release quantity becomes zero.
 

	On-hand  quantity	Total  Requirements  Quantity	Released  Requirements  Quantity	Allocated  Quantity	Available  Quantity	Available-to-  Release  Quantity
Beginning  Balance	15	0	0	0	15	15
Order  Entered into  the NCAS		+18
Order  Released and  Allocated			+18	+15	-15	-15
Overpick Posted	-18	-15	-15	-15	-3
New  Balance	-3	3	3	0	-3	0

At this time, the allocated quantity is accurate; however, the available quantity is skewed by the fact that the on-hand quantity is now negative. In addition, the released requirements quantity and total requirements quantity are still showing that three more chocolate bars are needed. This, in turn, is causing the available-to-release quantity to be calculated as zero.

When the usage order is closed, the released requirements quantity and total requirements quantity will decrease by three to indicate that no more chocolate bars are needed. This decrease will also cause the available-to-release quantity to drop to -3.
 

	On-hand  quantity	Total  Requirements  Quantity	Released  Requirements  Quantity	Allocated  Quantity	Available  Quantity	Available-to-  Release  Quantity
Beginning  Balance	15	0	0	0	15	15
Order  Entered into  the NCAS		+18
Order  Released and  Allocated			+18	+15	-15	-15
Overpick Posted	-18	-15	-15	-15	-3
Order Closed		-3	-3			-3
New  Balance	-3	0	0	0	-3	-3

Since the on-hand quantity at the warehouse cannot physically be negative, the on-hand quantity in the NCAS must now be adjusted by the warehouse manager to equal zero. Adjusting the on-hand quantity will also increase the available quantity and the available-to-release quantity to zero. You will learn how to adjust the on-hand quantity for an inventory item using the Add Inventory Adjustment (AIAU) and Deduct Inventory Adjustments (DIAU) screens in the Managing Inventory section of this course.