Magento Open Source 2.3.x

About Order Status and Reservations

Inventory Management supports partial and full invoicing, payments, shipping, and cancellations per order. As you manage an order through processing, invoicing, shipment, and potentially refunds, Magento automatically enters or changes reservations to update the salable quantity for a stock (or sales channel) and the on-hand inventory quantity per source. You do not have to actively access or enter reservations. Completing actions to fulfill, cancel, or refund an order does it for you.

These reservations always add to your salable quantity, with positive or negative amounts to increase or decrease quantities. These reservations are compensations, updating your on-hand inventory and salable quantities for up-to-date amounts for your store.

For specifics on orders and shipments, see Managing Orders and Shipments.

Order Management Options

Depending on inventory status and customer requests, you may need to update orders with partial payments and cancellations, partial shipments from multiple sources or for back orders, or credit memos to refund returned products.


After invoicing orders, send partial or full shipments until you fulfill the entire order. Each shipment converts reservation, deducting the amount from the product quantity per source. Reservation compensations enter to update the salable quantity for your stock. If you send partial shipments, each shipment deducts that amount from your product quantity and reservations. Any unshipped product reservations remain in place until they are also shipped at a later time. This keeps your salable amount current, gives you control over product inventory, and supports multiple source shipments and backorders.

Canceled orders

If a customer cancels their order prior to shipment (partial or in full), a new reservation is entered to return the inventory amount to the salable quantity. The reservations effectively cancel each other out, not deducting the quantity from any sources. Other customers can actively purchase those product quantities through the associated stocks and sales channels.

Refunded orders

If a customer requests a refund, issue the credit memoA document issued by the merchant to a customer to write off an outstanding balance because of overcharge, rebate, or return of goods. for the partial or full product amounts. When you receive the returned products, enter a credit memo to provide the funds and update product amounts. When selecting the Return to Stock option, Magento adds quantities back to the product SKUs and sources that shipped the orders and reservation compensations to update salable quantities for the associated stock.

Order types

Simple orders begin with a shopping cartA grouping of products that the customer wishes to purchase at the end of their shopping session., continue to payment, and end with a satisfied delivery. In these orders, Inventory Management easily processes reservations against the availability (or salable quantity) in the cart and checkout, and deducts from the on-hand inventory at shipment.

Process for a Simple Order

A more complicated order may have partial cancellations, partial shipments, and refunds. In these situations, reservations affect the available inventory to add quantities for cancellations and refunds and decrease quantities when ordered and shipped.

Process for a Complicated Order

Availability reservations and inventory changes occur based on the order status.

Status and Reservations

The following table details order and credit memo status with reservation changes entered by Magento to manage your inventory.

  • Order and Credit Memo Status and Reservations

    Order Status


    Reservation for Salable Quantity


    New and just submitted, no processing

    Reservation saved when order is submitted for the stock


    Canceled in partial or full prior to payment

    Reservation compensation entered to return partial or full quantity back to the stock salable quantity

    On Hold

    Payment and shipping not processed or invoiced

    Reservation stays in place

    Suspected Fraud

    Not processed due to fraud

    If approved or in review, reservation stays in place

    If declined, reservation stays in place until merchant makes a decision

    If canceled, reservation compensation entered to return full quantity back to the stock salable quantity


    Waiting for payment

    Reservation stays in place


    Payment processing, not received

    Reservation stays in place

    Pending Payment

    Payment not received

    Reservation stays in place

    Payment Review

    Payment being reviewed for processing and completion

    Reservation stays in place


    Paid and shipped in full

    Reservation amount deducts from product quantity for the selected source when invoiced partial or in full

    Reservation compensation entered to update the total salable quantity


    Refunded or archived

    If archived, no change in quantities

    If refunded in partial or full, reservation compensation entered and converted to add back product quantities per source and salable quantity per stock

    Credit Memo Status


    Reservation for Salable Quantity


    The refund is due, not completed

    No change in reservations


    Completed, funds returned

    If refunded in partial or full, reservation compensation entered and converted to add back product quantities per source and salable quantity per stock

Example Complex Order

Jenny Sanders orders bikes and clothing for her family vacation and fun. She sees some great sales on your Biking Adventures store with stock and sources spanning the United States, Canada, and Europe. Time to put in an order!

She buys two great park bikes for her daughters, a BMX bike for her son, a nice mountain bike for herself, and a modern German cross-country bike for her husband. The store had a sale on cute shirts, so she bought some for the whole family to match. See the list of vacation purchases below, the matching SKUs, and the reservations entered against the stock salable quantities.

Example order from Biking Adventures


She shows her family the great finds, but makes some changes. Before payment completes, she cancels two of the 33-BikeFun SKUs (her daughters did not like them). This is a partial cancellation due to payment pending, so no credit memo needed. To update, Magento adds back to the salable quantity stock for Canada. The order is paid and all products ship, arriving in time for vacation! Magento updates the salable quantity and source quantities for the shipping warehouses for the shipped products.

But her husband didn't quite fit in the shirt. Jenny requests a refund and sends back his shirt. When creating the credit memo, this adds one 54-BikeLife shirt back to the Canada stock and shipping warehouse.

  • Shipped products: With products purchased and shipped, Magento updates the inventory. Reservation compensations convert to on-hand inventory quantity deductions from the shipped source. The available salable quantity updates for the stock.
  • Canceled products: By canceling stock, Magento removes the reservation for that product. Reservation compensation is entered to the stock level to add back salable quantities for the partial cancellation of two shirts. This does not affect the inventory quantity at the source level.
  • Credit Memo/Refunded product: By returning stock, we need to add back to our quantities. When issuing the credit memo, we select to return to stock. Magento adds back inventory quantity to the shipped source for the product. Reservation compensations enter to clear any remaining reservations. The salable quantity recalculates against the updated quantity.

Example Quantity Updates