The Inventory module helps organizations:
Maintain accurate stock levels
Track stock movement in real time
Manage multiple warehouses
Control batch & serial traceability
Monitor stock valuation
Prevent stock shortages and overstock
This module integrates with:
Purchase (stock increase)
Sales (stock reduction)
Manufacturing (raw material & finished goods movement)
Accounting (inventory valuation impact)
Quality (inspection before stock acceptance)
Purchase Receipt → Stock Available
Sales Delivery → Stock Reduced
Manufacturing Issue → Raw Material Reduced
Production Entry → Finished Goods Increased
Stock Reconciliation → Adjustment
Item Master defines all materials handled in the system:
Raw Materials
Finished Goods
Trading Items
Spare Parts
Consumables
Navigate to:
Inventory → Item → New
Enter:
Item Code
Item Name
Item Group
Unit of Measure
Default Warehouse
Valuation Method
Save.
Enable if item affects inventory.
FIFO (First In First Out)
Moving Average
Enable for physical goods.
Enable if item requires batch traceability.
Enable for unique item tracking.
Define:
Reorder Level
Reorder Quantity
System alerts when stock falls below threshold.
Navigate to:
Inventory → Warehouse → New
Define:
Warehouse Name
Parent Warehouse (if hierarchy used)
Company
Save.
Organizations may create:
Main Warehouse
Raw Material Warehouse
Finished Goods Warehouse
WIP Warehouse
Transit Warehouse
Branch Warehouses
Restrict user access by warehouse
Set default warehouse per user
Enable location-level tracking (if required)
Stock transactions are recorded using Stock Entry.
Navigate to:
Inventory → Stock Entry → New
Purpose:
Add stock without Purchase Order (e.g., opening stock).
Effect:
Increases stock
Updates inventory value
Purpose:
Issue stock for:
Internal consumption
Sample usage
Scrap
Effect:
Reduces stock
Purpose:
Move stock between warehouses.
Example:
Main Warehouse → Branch Warehouse
Effect:
Reduces source warehouse
Increases target warehouse
Move raw materials to supplier warehouse.
Effect:
Track material outside premises
Used in production:
Reduce raw materials
Increase finished goods
Batch tracking is required when:
Expiry date applicable
Regulatory compliance required
Pharmaceutical / Food industries
Lot traceability needed
Batch can be created during:
Purchase Receipt
Manufacture Entry
Enter:
Batch Number
Manufacturing Date
Expiry Date
Batch-wise Stock Balance
Expiry Report
Batch Traceability Report
Serial tracking is used when each item has a unique identity.
Example:
Electronics
Machinery
Equipment
Serial numbers can be recorded during:
Purchase Receipt
Delivery
Manufacture
Warranty tracking
Service tracking
Asset linking
Customer-level traceability
Used during physical stock verification.
Adjusts system quantity to match actual stock.
Navigate to:
Inventory → Stock Reconciliation → New
Enter:
Item
Warehouse
Actual Quantity
Actual Valuation
Submit to update stock balance.
Monthly stock audit
Year-end closing
Damage/loss adjustment
Oldest stock value consumed first.
Average cost updated after each purchase.
Stock transactions update:
Inventory Account
Cost of Goods Sold
WIP Account
Adjustment Account
Automatically on submission.
When Sales Order is submitted:
Stock may be reserved
Available quantity reduces
System checks:
Actual Quantity
Reserved Quantity
Projected Quantity
Before allowing delivery.
Stock Balance Report
Stock Ledger
Warehouse-wise Stock
Item-wise Stock
Stock Aging Report
Inventory Turnover Ratio
Fast/Slow Moving Items
Reorder Level Report
Batch Expiry Report
Serial Number History
Restrict users by:
Warehouse
Company
Item group
System can restrict:
Issuing stock below zero
Recommended to disable negative stock.
Review:
Dead stock
Slow moving items
Obsolete items
Maintain accurate item master
Use batch/serial tracking where required
Perform regular physical verification
Monitor reorder alerts
Avoid manual stock adjustments without approval
Close open transactions regularly
Posting stock without correct warehouse
Ignoring batch expiry
Allowing negative stock
Not reconciling physical stock
Incorrect valuation method selection