Inventory management is a systematic approach to sourcing, storing, and selling inventory both raw materials (components) and finished goods (products).
In business terms, inventory management means the right stock, at the right levels, in the right place, at the right time, and at the right cost as well as price. It is how you track and control your business’ inventory as it is bought, manufactured, stored, and used. It governs the entire flow of goods
from purchasing right through to sale ensuring that you always have the right quantities of the right item in the right location at the right time.
Inventory is the goods that your company handles with the intention of selling. It might be raw materials that you buy and turn into something entirely new, or it might be a bulk product that you break down into its constituent parts and sell separately. It could even be something completely intangible: software, for instance.
Reports play an important role in any business, as they help manage day-to-day business operations efficiently. To track the profitability and growth of a business, these reports are extremely crucial as they give you a holistic view of your company. One such report is an inventory report.
Let's see how Book Keeper can help you to manage inventory and how you can view inventory from all angles and take quick decisions:
How to create inventory items master:
Go to Inventory items ➔ Add new items (F2) ➔ Here you can mention Item name, Unit of measure, HSN code, initial quantity on hand or opening stock qty and value, etc.
How to Categorize Inventory:
Depending on your industry, there could be a number of ways to categorize your inventory. You can categorize your inventory by dividing it into three groups based on profitability, or you can categorize it based on location, item type, or another obvious commonality.
However, you categorize your inventory and ensure you select a method you can stick with as your business grows.
Categorizing inventory by location is a simple, intuitive way to make sense of everything in your company’s inventory. To begin, make a list of where your inventory is stocked. Every supply closet, cabinet, storage unit, and even off-site area must be considered. As you conduct physical inventory, ensure you note exactly where each item is. Categorizing inventory by item type is another easy way to manage your inventory. That being said, if you stock items in a lot of different places, it can get very confusing. The best way to categorize items by inventory type is to review a master inventory list, then group items together logically.
For example, a furniture store may group all inventory into five categories: Office furniture, Dining room furniture, Outdoor furniture, Living room furniture and tools.
To create an Items category/subcategory:
Add/edit item master ➔ Press (Alt+M) Item category/subcategory
The inventory details that you give in an accounting voucher like Sales, Purchase Voucher, Debit note and Credit note affects stocks by immediately updating them.
Then there are two types of inventory vouchers:
Shall affect inventory: Vouchers like Manufacturing, Inventory adjustment, and Delivery challan shall have a direct effect on the stock.
Shall not affect inventory: Vouchers like Purchase order, Estimate, and Inventory transfer shall not have a direct effect on the stock.
How to view current stock in the bookkeeper:
There are multiple options to check the current stock in Bookkeeper such as
Press (Alt+S) Stock level Enquiry
Go to Inventory ➔ item list
Reports ➔ Inventory summary ➔ Display report
Inventory Summary Report
gives the total quantity and value of all your in-stock items across the different stores. You can view the on-hand inventory Quantity and value at any point in time and track the items which are on the purchase order. The overall total is displayed at the bottom of the report for
the items displayed on the current page.
Report Search Filters
Select Store: You can use the criteria of the select store to view data for a particular store. Selection of multiple stores at the same time is also possible.
Date: Report displayed according to the current date (by default), and you can check inventory for the selected date range.
Select Criteria: The user can search a specific item by its Category, no. of quantity, SKU, IMEI, item name and item image, default discount, barcode, Warehouse wise details.
Users can add multiple criteria by selecting from the drop-down.
Product Catalogue: A product catalog is a type of marketing collateral that lists essential product details that help buyers make a purchase decision.
These details include product features, descriptions, dimensions, price, weight, availability, color, customer reviews, and more.
The best example of a product catalog is the Amazon marketplace, where you can get a host of information in a single click. Think about a book that you've been trying to buy - Amazon lists all the information that you need. It includes the book title, author name, publisher's name, number of pages, a brief snapshot of the book, price, dimensions, offers/discounts, reviews, and more.
Inventory item details report:
This report will help to check item details voucher-wise, will show all the transactions in which a particular item has been used, and it has some filter options for the same such as Voucher type, Account name, Salesperson and Warehouse details.
Items about to finish and bestselling items:
The low inventory report lists all products in your inventory that are below a given stock threshold. You can set a minimum order quantity level for each item variant in your inventory. This will be the threshold below which a product is considered as low in stock. You can specify the minimum stock level while creating an item in Item Master. These inventory reports tell you which products are the most popular and profitable. You might look at the gap between purchases. For example, if there was a long time between the first and last sale date, you’ll want to investigate why it’s not selling quickly. And if you have items that are flying off the shelves, you might consider the biggest orders. Both of these reports are available in Dashboard itself.
Items Tracking report:
Note: This report is available only when you have enabled Batch/Expires details (Go to Settings ➔ Template settings ➔ Item table ➔ Enable Batch/Expiry details). If you wish to manage batch or serial number or color or size or any other details, you have to enable these columns and rename them as per your choice.
Creation of Batch details in Purchase/Sale voucher:
If you have enabled an additional column, and then you will make a sale or purchase voucher, it will ask you to fill in additional column details as well.
Inventory Tracking report:
This report shows a history of items with serial numbers starting from the date of entry into the system to the date of sale or removal from inventory.
Each transaction made with the item is represented as a row.
Filter options are available like Item category/name, Batch details