[17.6.10] More clarity under Inventory Items tab

When tracking inventory in Manager, it’s very important to track not only how much inventory you have but also where it is. For example, when you get invoiced for 10 widgets from a supplier, from an accounting point of view, you own these widgets however they are not seen in your physical inventory location until they are actually delivered from the supplier.

Similarly when you sell widgets to a customer, from an accounting point of view, they are no longer in your inventory but you can still see them right there until you actually ship them to the customer. This means the Qty figure reported in Manager has never matched what you physically had in your inventory. In other words, qty from an accounting point of view is not that useful for management purposes.

The latest version tries to solve this problem by breaking down the Qty column into three columns to help you understand what is happening to your inventory items from a management point of view.

  • Qty to receive
  • Qty on hand
  • Qty to deliver

First of all, by default, only Qty on hand column will be visible. Qty to receive column will be activated if you enable Goods receipts tab and Qty to deliver will be activated if you enable Delivery notes tab.

For example, if you operate a retail shop and don’t deliver to customers, you wouldn’t enable Delivery notes tab. In this case you’d have only Qty to receive column and Qty on hand column.

If you don’t purchase items from a supplier because your goods are manufactured, you wouldn’t enable Goods receipts tab and wouldn’t see Qty to receive.

This mechanism which shows only columns relevant to your business ensures that Manager will adapt to your specific needs and won’t show columns which don’t apply.

How these new columns work

  • Qty to receive shows qty that has been purchased from supplier but not yet received.
  • Qty on hand shows qty that is physically available in one or across multiple inventory locations.
  • Qty to deliver shows qty that has been sold to customers but not yet shipped.

So let’s see how this workflow works.

Let’s say we have purchased 10x of Aniseed Syrup which will be delivered in a few days. We will enter Purchase Invoice.

You will notice Qty to receive now shows 10.

Our supplier is in short supply and will send 3x Aniseed Syrup instead. We will record Goods Receipt to record this.

The system clearly shows how much we have physically in our inventory under Qty on hand. Now, let’s say we have 3 customers buying from us Aniseed Syrup. Two customers will buy qty of 1 and one customer will buy 4. We will record these sales as Sales Invoices. Which means we sold 6 in total.

Since we just sold them without shipping, the total will show under Qty to deliver.

Every figure on Inventory Items tab is clickable so for example if you are wondering who is expecting delivery of 6 Aniseed Syrups, just click on the figure.

In this case, now you have only 3 qty on hand so you can’t ship 6 to customers. Let’s say we only ship to two customers asking for 1 each. To record shipment, you enter Delivery Notes.

When you look again at inventory items tab, you will see qty on hand and qty to deliver were reduced.

As you can see, this new approach should provide more clarity to ensure you receive all items purchased from suppliers, you know your inventory quantities physically on hand and the quantity of items sold that need to be shipped to customers.

What about inventory write-offs and production orders?

Inventory write-off will always reduce Qty on hand. Let’s say the 1 Aniseed Syrup you actually have on hand must be disposed of due to spoilage, you enter inventory write-off to reduce the qty on hand.

Production orders work similarly. They only affect Qty on hand column.

What if a supplier never sends me items I have purchased, how do I reduce qty to receive?

In this case supplier would issue you a credit note which you would enter under the Debit Notes tab. This would reduce the Qty to receive.

What if a customer cancels the sale before shipping, how do I reduce qty to deliver?

If customer cancels the sale, you can either delete the sales invoice that would make the qty to deliver disappear but the correct approach is to issue the customer a credit note which would decrease the qty to deliver.

What happened to previous columns such as Sale Price, Average Cost and Total Cost?

I think these columns don’t belong to the Inventory Items tab. If you’d like to see inventory items with sales prices, there is a new report named Inventory Price List. I’m still considering where to include average cost and total cost but it will probably be included in another report. I want the Inventory Items tab to be restricted to quantities because that is the most important information when dealing with inventory.


@lubos, this is excellent. :clap:

I think this is going to increase the entries a user needs to make. So I need some clarifications.

A purchase invoice received from a supplier may or may not indicate the addition to inventory depending the time taken to transport the goods. A local transport of goods maybe delivered on the same day in which case making an entry in the purchase invoice as issued by the supplier would be enough to add to our stock inventory. So having to make an additional entry of goods received will be a burden to most users. Qty to receive may update according to the purchase orders rather than purchase invoice. I think that would be the correct workflow.

In most cases the the supplier makes the invoice only for the quantity they can supply as per the law. So the Qty in hand should automatically get updated as per the quantity entered in the purchase invoice.

Like the above Qty to deliver should be based on Sales order and not Sales invoice. Once a sales invoice is made as per the rules the goods should leave the factory within 24 hours from the date of invoice. So a sales invoice for goods not available is not practical in most cases.

Also, a sales invoice itself is proof that the shipment is made. In most cases a delivery note is necessary. So having to make another entry to record shipment in the Delivery notes for the items already invoiced will only increase the work.

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Average cost, at least, should stay with the Inventory Items tab so that you have a one stop shop when you are looking at a particular Inventory item, otherwise its going to be a two stop shop to get an Inventory Items full details…

Also, without the availability of average and total cost columns under Inventory Items makes Manager absolutely redundant for those who use Manager for tracking their shareholding investments. Being able to See Qty on Hand + Avg Cost + Total cost together is an essential characteristic.

The suggestion would be, leave both of those columns available on the Inventory Items tab.


in this same topic, Please tell me about this scenaio.
you had a order fro customer for qty 4pcs and created a saler order. now delivered only 2 pcs.

  1. so is there a REPORT/ screen to show the pending qty to deliver on the selected sales order?
  2. ideally the SO should be active only for the remaining/penidng Qty, so the new sales invoice/DO be issued. once the full qty is supplied the saler order should become inactive. please confirm.

For some businesses this is true and in that case you wouldn’t enable Goods receipts tab. Then you won’t see Qty to receive column and entering purchase invoice will put items directly to Qty on hand.

However for businesses where there is time difference between purchasing and actual delivery, it’s useful to enable Goods receipts so you can track deliveries.

I doubt this. How about drop-shipping companies? They don’t even have inventory on hand they are selling. And that’s just one example.

This is not universal. Even the biggest retail store in the world (Amazon.com) doesn’t guarantee this. You make one big order and you might receive 3 different shipments on different days from different locations. Sales invoice and delivery notes are really separate.

For some businesses, sales invoice and delivery note are the same. If that’s the case, no need to enable Delivery notes tab. When you issue sales invoice, it will reduce inventory on hand directly.

My point is, the system has flexibility. It will adapt to your business so you are not forced to use delivery notes and goods receipts if it doesn’t suit your business workflow.

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I dispute this. It ensures efficient inventory tracking.

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Yeah, but I want to add separate tab for tracking investments. If anyone is using Inventory Items to track share portfolio, that’s not how it’s meant to be.

Orders are not in the scope. If you record sales order or purchase order, it will have absolutely no effect on Inventory Items tab.

I want to incorporate orders somehow into inventory tracking process but I’m not there yet.

Our general practice is when we need to buy something from the supplier we issue them purchase orders. so the purchase order quantity is Qty to receive

Qty in hand is inventory items we receive against those purchase orders as a purchase invoice from the supplier. It may be less than or more than the actual purchase order issued to the supplier.

Qty to deliver is the order quantity we receive from our customers and this field is updated when we issue a sales invoice to the customer.

A delivery note is something we use mostly to send the raw inventory items for processing to a service provider for job work. They process the raw material and supply the same back to us through a deliver note which we update in our inventory as Goods receipt. They issue us a service invoice against this goods receipt later. So a delivery note updates the stock too apart from the Sales invoice.

Please note that what i am explaining is from a manufacturing business perspective. So for us both Goods receipt and Delivery notes are important. This was a feature I was expecting for so long but unfortunately the workflow implemented is different.

@sharpdrivetek - Purchase / Sales Orders are not accounting documents so they shouldn’t be used to update your Inventory on Hand quantities. Just because you sent a supplier a purchase order doesn’t imply that they can deliver, they may zero stock. Just because a customer sends you a sales order doesn’t imply you can deliver.

Where a business has both same day and delayed deliveries then it would be better to add flexibility to the invoice processing. If the purchase / sales invoice had a tick box “delivery with invoice” then if ticked the inventory on hand movement would be updated. If unticked then the inventory on hand movement would be transferred to the qty to receive / deliver columns and then would require a goods receipt / delivery note transaction. A business could set a default ticked or unticked status depending on their predominant usage.


But until then one is now restricted from ever updating unless a “Qty on Hand + Avg Cost + Total Cost” report becomes available as a substitute for the missing columns.

True, but then some wouldn’t be using Manager at all. On the other hand, being able to do so demonstrated the flexibility that Manger did have.

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I am sorry but i defer from this. A purchase order from a company is legally valid for loan processing at a bank so why cannot the same be used as accounting document.

For example, manufacturers like us receive purchase order from customers for a period of one year which we need to supply every month. The quantity supplied every month will vary as per production restrictions. In this case how should we track the quantity to be delivered? Its not possible to make sales invoice for an order to be supplied over a period of an year.

Atleast we should have an option to select whether the purchase order or sales order updates the inventory stock.
I understand every business has their way of operation and this is the way most manufacturers in India do it.

Friends, you all make very sense. each one is right to his practice. But generally an Order sales/purchase is a commitment and qty have to be reserved. so it is better lubos change event trigger to ‘Order’ rather than on ‘invoice’. if a order fails it have to be reversed. And ideal is DO and invoice is generated together, either of it can be first.
And i dont think this gonu add any additional works as GR or DO is just copied. if there be qty unmatch surely it have to be registered. So its a good move lubos done.
And most importantly the Order (sales/purchase) should become inactive after the next step (invoice) is created. there is no meaning if order is still open or editable if invoice is reached. Lubos should try to do this too.

Just because the bank’s processing will accept a document in support of a legally valid loan doesn’t imply that that document is also an accounting transaction. It just means that they accept the document as a valid justification for the loan.

If you receive a purchase order for the next year’s supply, say 1200 items, entering that 1200 as a single inventory movement doesn’t provide you with the ability to track the amount to be delivered each month. Manager is not an inventory forecasting management system.

I have already mentioned in the posts above that this is the practice we follow. Our requirements and work process are different. So is that of everyone else. I only tried to explain that.

I did not say there needs to be a forecast. As per your example, the 1200 numbers is the order which is to be delivered. And the business decides how much quantity they deliver in the present month. And after they do deliver with a sales invoice the balance quantity of the order to be delivered needs to be known. I am sure that is not forecasting.

Yes, but it also needs to be known what period remains (of the year) for the delivery of that balance quantity and then that calculation provides the basis of projecting forward (forecasting) the next months manufacturing requirements.

The period is the financial year. That is a constant. :slight_smile: