We have tested inventory module recently and planned to synchronize it in Manager.
Finally, the day come and we have added all necessary inventory. However, while testing all the implications from procurement to sales following have been noted.
- Inventory is added directly once PI is generated while it should add at the time of GRN is generated.
- Inventory is reduced once SI is generated while it should reduce at the time of DN is generated.
- Reports → Inventory Quantity by Location is not accurately picking Inventory Location selected in DN. It reflects as ‘Unspecified Location’.
On the other hand, Guide on Manager web states that GRN and DN does not have any financial impact but it assist in accurately managing stocks at different location.
We will appreciate your guidance to understand right step to synchronize inventory step up and appropriately record the same while managing accurate stock at each location.
Inventory is added to your Balance Sheet when you purchase it ie create a Purchase invoice.
Even if the goods have not yet been delivered to you, they belong to you and so must be included in your inventory assets on the balance sheet
When you sell a good using a Sales Invoice, it no longer belongs to your business but to your customer so it normal that it is taken from your Inventory on Hand and added to your Sales Income.
Using GRN and DN only helps in keeping track of our physical inventory. Many businesses do not use GRN and DN to track inventory but if you do decide to use them, then you can not go back afterwards
Make sure you read and understand the 3 part Inventory Guide
As the result of a change just a few weeks ago, you need to designate each inventory item according to whether you want to track quantities to deliver and receive:
This can be done via a Batch Update if you have already defined all your items. Once you have done that, the inventory location field should be transferred to the delivery notes and goods receipts. All your issues should be resolved.
The Guides on inventory are not yet fully updated to reflect all the recent changes related to status tracking.