Concepts & glossary

What is stock protection?

Stock protection is a claim that protects warehoused inventory against a later price or quantity change — common for fast-depreciating SKUs. Here's what it is and how ClaimDS handles it.

Stock protection is a claim that protects inventory you're still holding against a later change in price or quantity. It matters most where SKUs depreciate quickly — consumer electronics is the classic case — so that stock bought at yesterday's price isn't stranded when the price drops.

What it means

When you hold inventory and the price falls, the stock you already paid more for loses value through no fault of yours. A stock-protection arrangement lets you recover that difference on the quantity still in your warehouse, so a price move upstream doesn't punish you for holding stock.

How ClaimDS handles it

Stock protection is one of the purchase claim types in ClaimDS, raised under Claims → Purchase. The claim is based on the protected inventory — the price or quantity change applied to what you're holding — and then follows the normal claim lifecycle into reconciliation and settlement.

How it differs from other claims

Stock protection is about inventory you still hold. That's different from a retroactive price adjustment, which adjusts already-invoiced sales, and a special-pricing claim, which recovers the gap on a specially agreed selling price. ClaimDS keeps them as separate claim types for that reason.

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What is stock protection? — ClaimDS