Difference between "On-hand" and "available quantity"
The below 2 points will help you understand about On-hand and Available quantity in Quick Books (QB).
1. On-hand quantity vs. available quantity
On-hand quantity is the total number of stock-keeping units (SKUs) that are physically located in the warehouse location at the current time. This includes items that are already allocated to fulfilling production needs or sales orders. On the other hand, the available quantity is the total number of SKUs, which are currently available for use in filling a new order internally or externally for purposes such as production or distribution.
<< i.e. "Availability = On-hand Qty - Reservations - Pending transactions" >>
2. The on-hand balance is the quantity of active inventory stored at a specific warehouse. Active inventory is defined as the usable amount of an item that is in the warehouse. Inventory is active if it is not damaged, expired or being inspected. The on-hand balance includes inventory that has been allocated, or set aside, for an order but has not yet been shipped.
The available quantity is the quantity of an item that is available to be allocated to orders. This quantity is the difference between the on-hand and the allocated quantities. The allocated quantity is the quantity of an item that has been designated to customer orders at a specific warehouse, but has not yet been gathered and shipped.