Inventory Debt: Understand debt

These pages explain what happens when goods leave before the stock is on the books, before you act on it. Start with what inventory debt is and how it differs from a backorder. The rest follow the debt through its life: what a debt shipment costs and posts, how later receipts repay it, which policy decides whether a shipment can go out, and where debt appears on your reports. Finance teams should read what posts to your ledger and debt on your reports first.

To…	Go to…
understand inventory debt and when to use it instead of a backorder	What inventory debt is, and when you want it instead of a backorder
see how a debt shipment is costed and why the cost changes	What a debt shipment costs
see what posts to your ledger when goods ship and stock arrives	What posts to your ledger
learn which stock arrivals repay a claim, and in what order	How debt repays itself
work out whether company, warehouse, or product settings apply	Which policy applies to a shipment
find where debt shows in valuation, profit, and availability	Debt on your reports
understand debt from a shipment your sales channel reported	Debt the sales channel created