Zoho Inventory
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When does my stock on hand decrease?

If stock on hand is calculated using Shipment Orders and Receives:
The stock on hand for the items in your inventory decreases when a Shipment Order is created for the items you deliver to your customers.
The stock on hand increases when a Purchase Receive is recorded for the items you receive from your vendors.

If stock on hand is calculated using Invoices and Bills:
The stock on hand decreases when an Invoice is raised and sent to your customers. Invoices can be created either from sales orders in the Confirmed status or directly without a sales order.
The stock on hand increases when a Bill is recorded for the items purchased from your vendors.