The latest version extends inventory capabilities so you can track physical movement of inventory items. This means you can keep track of items you have purchased from suppliers which haven’t been received or keep track of sold items which haven’t been shipped to customers. If you have multiple inventory locations (e.g. warehouse + retail shop), you can also keep track of quantities across those locations.
You can enter the purchase of inventory items from a supplier when you receive the purchase invoice but you may not have received the inventory items at the same time. Your supplier might ship items as you order them and issue an invoice once a month. Or you might receive an invoice on the same day as your order (e.g. by email) while your items arrive a few days later (e.g. by post). This also applies to customers if sales invoices are not issued on the same day as the items are shipped.
The inventory quantities on hand for accounting purposes may not match the items physically on hand in your possession. The quantities can be reconciled by clicking the
Qty figure under the
Inventory Items tab to view the breakdown of inventory items by location:
In the example above, the report shows you have 50 items but only 10 are in your possession. The other 40 items were purchased but not yet delivered.
To track physical movements of your inventory items between your business location and your suppliers, you will need to enable the tab
To record inventory items received from your supplier, create a
New Goods Receipt.
The document can be printed and given to the supplier as a confirmation of goods received.
Once the goods receipt is created, your qty report for this inventory item under the
Inventory Items tab will show all 50 items are on hand.
Selling inventory items is similar. When you sell an inventory item using a sales invoice, your quantity report can look like this:
The quantity for accounting purposes is 45 but the quantity in the warehouse is still shown as 50. This is because we have sold 5 items but they have not been shipped to the customer. To record the shipment you will need to create a
New Delivery Note under the
Delivery Notes tab (or to save time you can view a sales invoice and copy the content of the invoice into a delivery note).
The examples above are simple but if you have multiple suppliers and multiple customers, tracking the physical location of your inventory items will be essential.
The examples show how to record the movement of inventory items received from supplier or shipped to a customer. If you return items to a supplier, you can enter a
Goods Receipt with a negative quantity. Similarly if a customer returns goods purchased, you can create a
Delivery Note with a negative quantity. This is usually followed by issuing a credit note for returned goods to credit the customers account or refund the amount received.
Multiple inventory locations
If you have multiple inventory locations, you can create them under the
Settings tab, then