How is stockout status determined?

An inventory item appears on the Inventory Stockout report (at Reports>Inventory Stockout) when it falls below the reorder point set in the item master.

To set the reorder point and quantity for an item:

Select Operations>Item Masters.
Double-click on an item master in the list, or highlight a row and select Edit up above. The Edit Item Master screen appears.
Select the Warehouse tab.
Set the Reorder Point to a value above zero, in the Standard Unit (the Standard Unit is listed on the Units of Measure tab). Once the inventory level goes below this amount, the item will appear on the Inventory Stockout report.
If you leave the Reorder Point as zero, the item will not appear in the stockout report when it reaches zero.
Set the Reorder Quantity. This is the amount to reorder in Standard Units (the Standard Unit is listed on the Units of Measure tab).

Stockout2

When finished, select OK to save your item master changes.