---
title: How is the Inventory/Stock Calculated
description: Inventory refers to the total amount of goods you have in stock, including items that are available for sale and those reserved for orders.
---

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# How is the Inventory/Stock Calculated

Inventory refers to the total amount of goods you have in stock, including items that are available for sale and those reserved for orders. Proper inventory management helps ensure you don't accidentally sell more goods than you have in stock.

Follow these steps to understand how your inventory is categorized and calculated:

### **Understanding Inventory Categories**

**1. Physical Inventory**

- This is the total stock currently in our fulfillment center(s). It is shown in the inventory column.
- **Check Your Physical Inventory:** Go to the **“Inventory”** section in your byrd dashboard. The **Physical Inventory** is displayed in the **stock column**.

 

**2. Reserved Inventory**

- These are goods that have been reserved for new orders but haven't been picked yet. The reserved amount is displayed in brackets next to each number.
- **Identify Your Reserved Inventory:** Next to the physical inventory number, you will see a number in brackets. This is the **Reserved Inventory**. The reserved inventory refers to goods that have been reserved for new orders but haven't been picked yet, meaning they are still technically in stock.

**3. Available Inventory**

- This is the stock ready to be sold. To find out how much inventory is available for sale, subtract the reserved inventory from the physical inventory.
- **Calculate Your Available Inventory:** The formula is: **Available Inventory = Physical Inventory - Reserved Inventory**

### **Example in the Dashboard**

- If the dashboard shows a physical inventory of 10 and a reserved inventory of (10), the available inventory is 0. This means there are 10 items in stock, but all are reserved for orders, so none are available for new sales.

### **Synchronization with Your E-Commerce System**

**Which inventory/stock levels are being synced with my e-commerce system?**

- The calculated **available inventory** is the number that byrd transmits to your e-commerce system to ensure accurate stock levels and prevent overselling.

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