When recording an inventory purchase, what happens to the Quantity on Hand units?

When recording an inventory purchase, the Quantity on Hand units increase based on the recorded purchases. This is because every time an inventory item is acquired and entered into the system, the inventory management function automatically updates the Quantity on Hand to reflect the new total. This ensures that the inventory levels are accurate and up-to-date, allowing for better management of stock levels, reordering, and sales planning.

This automatic adjustment eliminates the need for manual tracking by managers, as it provides a real-time overview of inventory levels. As products are sold or returned, the Quantity on Hand will adjust accordingly, but the initial recording of a purchase will always lead to an increase in this quantity to represent the new stock available. This feature is essential for maintaining efficient inventory control and preventing stock shortages or overstock situations.