How to Set Reorder Point (Formula 1 to Formula 3)

How to Set Reorder Point (Formula 1 to Formula 3)

How to Set Reorder Point (Formula 1 to Formula 3)

The Reorder Point module helps you maintain healthy stock levels by forecasting how much inventory to reorder based on previous sales history and current stock balances. You define threshold quantities for each item — the system then calculates a Suggested Order Quantity (SOQ) automatically so you always know when and how much to restock.

> If each outlet maintains its own stock levels independently, you must configure Reorder Point separately for each outlet.

Part 1: Configuring the SOQ Formula (One-time Setup)

Before using the Reorder Point module, you must select which SOQ calculation formula the system will use. This is a one-time configuration per outlet.

Step 1 — Open System Configuration

Navigation to System Configuration

Click the hamburger menu icon [≡] in the top-left corner of the main screen to open the settings menu.

You will be taken to the System Configuration screen.

Step 2 — Navigate to Item Settings

Reorder Point setting in System Configuration

In the left-hand navigation panel of System Configuration, click Item.

The Item Settings page opens with three tabs at the top: All Outlets, Current Outlet, and This Machine.

Step 3 — Select the All Outlets tab

Click the All Outlets tab to apply the formula setting across all outlets.

Step 4 — Locate the Reorder Point section

Scroll down the Item Settings page until you see the Reorder Point section near the bottom of the page.

You will see a SOQ formula dropdown field.

Step 5 — Select a formula

Click the SOQ formula dropdown and choose one of the three available formulas.

The selected formula will be applied when the system calculates the Suggested Order Quantity after you save your Reorder Point data.

Formula Reference Table

Formula
Logic Summary
Formula 1
Based on On-Hand (OH) Qty. If OH Qty >= Safety Point, SOQ = 0. Otherwise, SOQ = Safety Point - In Order Qty - OH Qty - Transfer In Qty (with adjustments for negative stock).
Formula 2
Based on Reorder Point and Min Qty thresholds. If Reorder Point > (In Order Qty + OH Qty + Transfer In Qty), SOQ = Min Ordering. If Min Qty is also breached, SOQ = Min Ordering.
Formula 3
Based on Available (AV) Qty. If AV Qty >= Safety Point, SOQ = 0. Otherwise, SOQ = Safety Point - In Order Qty - AV Qty (with adjustments for negative available stock).

Choose the formula that matches how your business tracks stock. Formula 1 is the most commonly used default.

Pack Quantity rounding

The Pack Quantity setting applies to all SOQ formulas above (Formula 1, 2, and 3) — it is not tied to just one. When Pack Quantity is configured for an item, the system automatically rounds the calculated SOQ during calculation so the suggested order lines up with whole packs, rather than leaving it as a raw unit figure.

Rounding uses two directions, CEIL and FLOOR:

  • CEIL (Ceiling) — rounds the SOQ up to the nearest multiple of Pack Quantity. Example: SOQ = 12, Pack Qty = 5 → CEIL = 15.
  • FLOOR — rounds the SOQ down to the nearest multiple of Pack Quantity. Example: SOQ = 12, Pack Qty = 5 → FLOOR = 10.

The system's combined rounding formula (applied when Pack Qty > 0) is:

SOQ = (FLOOR[ CEIL(SOQ) / Pack Qty ] + 1) × Pack Qty

The raw SOQ figure produced by Formula 1, 2, or 3 is therefore not always what gets suggested — once Pack Quantity is set for an item, the final SOQ shown is the pack-rounded value, not the unrounded calculation result.

Step 6 — Save the configuration

Click Save in the top-right corner of the Item Settings page to apply your formula selection.

Part 2: Setting Reorder Point Quantities for Items

With the formula configured, you can now enter the threshold quantities for each item at each outlet.

Step 7 — Navigate to the Reorder Point module

Reorder Point module location

From the Main Menu, click the Inventory tab in the top navigation bar.

The Inventory module grid appears, showing all available inventory functions.

Click the Reorder Point tile (the icon showing stacked boxes with a warning indicator).

The Reorder Point page opens. At this point the item list is empty — you must search to load items.

Step 8 — Select the Location

Reorder Point module layout

In the Location dropdown at the top-left, select the outlet you want to configure.

Each outlet has its own reorder point settings. Repeat this entire process for each outlet if stock levels differ per location.

Step 9 — Set the Sales Date range

Set the Sales From and To date fields to define the historical sales period the system will use as a reference for forecasting.

Use a date range that reflects a typical trading period — for example, the past 30 days or the past month. The system uses this period to understand sales velocity.

Step 10 — Search for items

Click the green Search button.

The item list populates with all inventory items associated with the selected outlet. The status bar at the bottom shows Total Records found.

Step 11 — Filter items (optional)

To narrow the list, type in the blank filter row directly below each column header.

For example, type hand in the filter row under Item Name to show only items whose names contain "hand". The status bar updates to show Total of Filtered Records.

You can also click the Select column header to toggle showing only items that are already checked (selected).

Step 12 — Select items to update

Tick the checkbox in the Select column for each item you want to configure.

Selected rows are highlighted in yellow. You can select all visible items at once by clicking the checkbox in the Select column header row.

Step 13 — Click Edit to enter quantities


Click the blue Edit button in the top-right toolbar.

The quantity columns become editable. A Save and Cancel button replace the Edit button, and a Modified column appears to track which rows have been changed.

Step 14 — Enter the forecast quantities

For each selected item, fill in the five quantity fields:

Field
What to Enter
Reorder Point
The first alert threshold. When stock falls to or below this level, the item is in the "orange zone" — still has stock but needs to be ordered soon before the next delivery.
Safety Point
The maximum quantity this outlet should keep on hand. Used by the SOQ formula as the target replenishment ceiling.
Min Quantity
The final critical threshold. When stock falls to or below this level, the item is in the "red zone" — near zero or out of stock. Immediate restock is required.
Min Ordering
The minimum quantity that must be ordered from the supplier in a single purchase order.
Pack Quantity
The quantity per pack for items sold or received in multi-unit packaging. This is for reference only and does not affect the SOQ calculation.

The SOQ column will remain at 0.00 while you are editing. The system calculates SOQ automatically after you save.

Step 15 — Save the reorder point data

Once all quantities are entered, click the Save button.

The system saves the threshold values and immediately calculates the Suggested Order Quantity (SOQ) for each item based on the current on-hand stock balance and the formula selected in Part 1.

Part 3: Reading the Results

After saving, the Reorder Point list refreshes and displays the calculated SOQ for each item.

The SOQ column now shows the quantity the system recommends ordering to bring stock back up to the Safety Point level, accounting for stock already on order and in transit.

Items are listed in descending order of urgency — those with the highest SOQ (furthest below their Safety Point) appear at the top.

Color zone reference:

Zone
Indicator
Meaning
Orange
Stock at or below Reorder Point
Low stock — order before next delivery
Red
Stock at or below Min Quantity
Critical — restock immediately

Column Reference: Stock Movement Quantities

Alongside the editable threshold fields, the Reorder Point grid also displays several read-only reference columns. These show the current stock movement position for each item and are the inputs the SOQ formulas (see Part 1) use to calculate the Suggested Order Quantity.

Column
Meaning
Sales Qty
Total quantity sold during the Sales From / To date range set in Step 9. Reflects sales velocity and is used to forecast demand for the item.
In Order Qty
Quantity already on outstanding purchase orders that has not yet been received into this outlet. Since this stock is already inbound, it reduces the calculated SOQ.
Transfer Out Qty
Quantity requested for stock transfer to another outlet that has not yet completed. Shown for reference so you can see stock that is due to leave this outlet.
Transfer In Qty
Quantity incoming via stock transfer from another outlet that has not yet been received. Like In Order Qty, this reduces the calculated SOQ since the stock is already inbound.
Quantity On Hand (OH Qty)
The current physical stock balance recorded at this outlet at the time of calculation.
Maximum Point
The maximum point represent the maximum quantity to keep in the outlet. Currently this column will be use for Formula 4 only.

These columns are calculated automatically by the system and cannot be edited manually. Use them to understand why the system arrived at a particular SOQ — for example, a low SOQ despite low on-hand stock usually means there is a large In Order Qty or Transfer In Qty already inbound.

Quick Summary

Step
Where
Action
1
System Configuration > Item > All Outlets
Set the SOQ formula (Formula 1, 2, or 3)
2
Main Menu > Inventory
Open the Reorder Point tile
3
Reorder Point page
Select Location and set the Sales From / To date range
4
Reorder Point page
Click Search to load the item list
5
Reorder Point page
(Optional) Filter items using the column filter row
6
Reorder Point page
Tick the Select checkbox for items to configure
7
Reorder Point page
Click Edit, enter quantities for all five fields
8
Reorder Point page
Click Save — SOQ is calculated automatically
9
Reorder Point page
Review the SOQ column for recommended order quantities

Repeat Steps 2 to 9 for each outlet if your outlets manage stock independently.

FAQ

1. There are multiple column in reorder point, is it compulsory to fill in all parameters?
Answer: Not necessary, depend on formula selected, users only required to fill in info required by the formula. For example Formula 1, only required to key in Safety Point and Reorder Point.

2. Is there a specific formula to calculate Min Quantity?
Answer: Currently no, the Min Quantity need to manual update / import into Reorder Point and will use for Formula 2 to do calculation.

3. Does Min Ordering refer to the Supplier's MOQ (Minimum Order Quantity)?
Answer: Yes can say so, the Min Ordering not only to use in Reorder Point module, this column also use in Purchase Order and Goods Receive Note with the Pack Quantity as the purchase control point.

4. What is the suggested method if I just want to maintain fixed quantity of stock?
Answer: For example if target to maintain always have 8 quantity for my Onhand Quantity, from Formula 1 logic is: if OH Qty >= Safety Point, SOQ = 0. Otherwise, SOQ = Safety Point - In Order Qty - OH Qty - Transfer In Qty. This mean in order to maintain 8 units, set your Safety Point = 8.

How it behaves: The system checks your physical on-hand stock. The moment your OH Qty drops below 8, it will calculate how many units to order to bring you back up to 8 (minus what's already on order or transferring in) and display in SOQ. Next step is using the SOQ data for proceed to document creation (Purchase order, Stock request, etc). This is the most commonly used default formula. 

5. Will incomplete POs leave "In Order Qty" stuck and distort SOQ?
Answer: If the scenario happen from direct receive of the item without linkage to Purchase Order, then yes it would. In order to make sure the SOQ is accurate, user must always perform Purchase Receive from Purchase Order in stead of creating direct receive.
Another solution to clear incomplete Purchase Order is from the Purchase Order list and filter to select those POs and right click to perform "Force Complete". By doing so, Xilnex will just update those PO status to Completed without affecting current stock quantity.

6. What is the minimum sales history record for item so that reorder point can take effect?
Answer: There is no exact answer for this questions, the Reorder Point will get more accurate result when there are more data to reference. Normally we will suggest to have around 1 - 3 months data to get an accurate results for the reorder point calculation.

7. If I have -6 quantity for the item and what is the reorder point setting I need to set so that store will maintain 10 qty in reorder point using formular2?
Answer: For the scenario provided is suggest to use Formula 1 in stead of Formula 2 as Formula 1 able to use the method to set the Safety Point as expected quantity and Xilnex will based on the Safety Point and current onhand quantity to do the calculation. As from Formula 2, its designed to always order with the Min ordering and Reorder Point, in order to achieve the expectation, you need to set 10 quantity to Reorder Point and 16 quantity to Min Ordering.