If you're standing in your warehouse and you're counting one of your products to see how many you have in stock, you'll then compare to what your System tells you there are in stock. Even more importantly, you want to know how many of those in stock are available for sale, and how many are committed to other customers or transfers to other locations.
Committed inventory is that which is committed to a sales order currently in progress or a transfer currently In Transit.
When you look at the On Hands for a SKU, this is the number you have available for sale. While you are physically looking at the products in your warehouse, you may see more on the shelf. These ones are probably committed to a sales order.
For example, here you see there are 49 On Hand and 6 Committed. This means 49 are available for sale. The remaining 6 are committed to either sales orders or transfers.
To see the details of the committed inventory, as in, WHICH sales orders or transfers the committed inventory belong to, click on the Committed number.
A popup will appear.
Clicking on the Sales Order number and Transfer number will open the PDF for each, allowing you to see the quantities committed and where.
In our above example of 49 on hand and 6 committed, 1 is committed to a sales order and 5 are being transferred. This means that looking at your physical inventory, you should see 50 units (49 available for sale, one committed to a sales order. The other five would be on a truck, in transit to another location. The 5 committed will be set to 0 when the transfer is completed.
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