Glossary term

Available to promise (ATP)

Definition

The quantity of a product that can be committed to new customer orders based on current inventory plus scheduled incoming supply, minus quantities already promised. It tells sales what can be reliably delivered by a given date.

Available to promise (ATP) is the quantity of a product you can commit to a new customer order and still deliver on time. It is calculated from current on-hand inventory plus scheduled incoming supply (purchase orders or production runs), minus the quantities already promised to other orders. In short, ATP answers a single question a buyer keeps asking: “How many can you actually ship me, and by when?”

How it works

A basic ATP figure starts with on-hand stock, adds confirmed inbound supply with known arrival dates, then subtracts every unit already committed to open orders, draft orders, or reservations. Because incoming supply has dates attached, ATP is often time-phased: the amount you can promise for next week differs from what you can promise in a month once a purchase order lands. Backorders and safety stock reduce what is truly promisable.

Why it matters

Selling stock you cannot deliver is one of the fastest ways to lose a B2B account. ATP gives sales a defensible number so quoted lead times hold up. It separates “we have 400 in the warehouse” from “we can promise you 250 by the 14th,” which is the figure that actually matters on a purchase order.

ATP in B2B quoting on Shopify

Shopify tracks committed and available inventory per location, but standard quotes rarely check it. When a wholesale buyer requests 500 units, the person building the quote should confirm ATP before stating a ship date, factoring in other open quotes and draft orders that already reserve stock. Turning a request into a draft order surfaces the commitment early, so two large quotes do not silently promise the same pallet.

Example

You hold 300 units, a purchase order for 200 arrives on the 20th, and 150 are already committed. ATP today is 150 units. After the 20th, ATP rises to 350, so a quote for 400 should promise 150 now and the balance after restock.

Frequently asked

How is ATP different from on-hand inventory?

On-hand is the physical count in the warehouse. ATP subtracts what is already promised to other orders and adds confirmed incoming supply, so it reflects what you can actually commit to a new customer.

Does Shopify calculate ATP automatically?

Shopify tracks available and committed inventory per location, but it does not produce a time-phased ATP that accounts for incoming purchase orders. For accurate promise dates you usually combine Shopify's available quantity with your inbound supply schedule.

Why does ATP matter when sending a quote?

A quote often states a delivery date. Checking ATP before you send it keeps you from promising stock that is already committed elsewhere or has not arrived yet, which protects lead times and buyer trust.

Turn quote requests into paid orders

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