Quick Setup (One-Time)
- Enable inventory: F11 (Features) → set company to Accounts with Inventory.
- Create Units of Measure (e.g., Nos, Kg, Ltr, Box).
- Turn on Multiple Godowns and Batch-wise Details/Expiry if required.
- For GST items, set HSN, tax rate, and valuation method (Avg/Weighted/Std).
Keep a separate Data Path for inventory-heavy companies to speed up backup & migration.
Step 1 — Units of Measure
- Gateway → Create → Units → set Type (Simple/Compound).
- Examples: Simple = Nos; Compound = Box of 12 Nos.
Choose the right unit before creating stock items to avoid rework.
Step 2 — Stock Items Core
- Gateway → Create → Stock Item.
- Under: Stock Group (e.g., Mobiles & Accessories).
- Unit: Nos • HSN & GST rate (for taxable items).
- Enable Batch-wise & Expiry if needed.
- Reorder level & minimum order qty (optional).
Step 3 — Godowns (Locations) Multi-Store
Create Godowns
- Gateway → Create → Godown.
- Name: Head Office, Store-1, Warehouse.
- Set Parent to build hierarchy (e.g., HO → Store-1).
Use in Vouchers
- Show item-wise quantities by godown in Sales/Purchase.
- Transfer stock: use Stock Journal (Source Godown → Destination Godown).
| Scenario | Voucher Type | What to Do |
|---|---|---|
| Branch to Warehouse transfer | Stock Journal | Select item & qty; From = Branch, To = Warehouse |
| Damage/Shortage | Stock Journal | Credit regular godown, debit Scrap/Damage godown |
| Assembly (BOM) | Stock Journal | Consume components; produce finished goods as per BOM |
Step 4 — Batch & Expiry Tracking Traceability
Enable & Configure
- In Stock Item: set Batch-wise details = Yes.
- Enable Expiry date for perishable or pharmaceutical items.
- Decide valuation: batch-wise cost (FIFO/Weighted).
In Transactions
- During Purchase, enter Batch No, Mfg, Expiry.
- During Sales, select batch (use nearest expiry first).
- Run Batch-wise & Expiry reports to monitor.
| Use Case | Example | Benefit |
|---|---|---|
| Pharma | Batch TP-0425, Exp 31-12-2025 | FEFO sales, avoids expiries |
| FMCG | Lot L-781, MRP ₹100, Offer | Discount by lot; track returns |
| Electronics | IMEI/Serial as batch | Warranty & after-sales traceability |
Step 5 — Inventory Transactions (Fast Track)
Purchase with Batch
- F9 Purchase → Supplier → Item → Qty & Rate.
- Enter Batch No / Mfg / Expiry when prompted.
- Apply GST input ledgers (if applicable) → Ctrl + A.
Sales with Batch
- F8 Sales → Customer → Item.
- Select the batch to issue (prefer NE/FEFO).
- Apply output GST; print invoice (Alt + P).
Stock Transfer
- Stock Journal → Item & Qty.
- From Godown: Warehouse → To: Store-1.
- Preserve batch numbers during transfer.
Keep Price Lists for tiers (Retail/Wholesale/Online). Use Rate of Duty & HSN to auto-calc GST.
Inventory Reports You’ll Use Daily
| Report | Path | Purpose | Action |
|---|---|---|---|
| Stock Summary | Display → Inventory Books → Stock Summary | Item & godown-wise quantity & value | Drill down to batches; switch valuation |
| Ageing Analysis | Display → Inventory → Ageing | Old/slow-moving items | Plan discounts & liquidation |
| Movement Analysis | Display → Inventory → Movement | In/Out trends by period | Compare godowns; spot shortages |
| Batch/Expiry | Display → Inventory → Batch Summary | Batch balances & expiries | FEFO control; return blocking |
| Reorder Status | Display → Inventory → Reorder | Items below min level | Generate PO suggestions |
Best Practices for Clean Inventory
- Define standard units and avoid mid-year unit changes.
- Turn on bill-wise for customers & suppliers to sync stock with accounting.
- Use FEFO (First-Expired-First-Out) for perishable goods.
- Set reorder levels & review weekly in Stock Summary.
- Run physical stock verification regularly and adjust via Stock Journal.
- Back up before bulk imports/updates; maintain an item master SOP.
Troubleshooting (Common Issues & Fixes)
| Issue | Cause | Quick Fix |
|---|---|---|
| Negative stock warnings | Sales before purchase; wrong godown | Enable negative control or correct sequence/godown selection |
| Batch not selectable | Batch not created/flag disabled | Enable batch in item; enter batch during first purchase |
| Wrong inventory valuation | Mixed methods; backdated entries | Choose one method (Weighted/FIFO) & avoid late edits |
| Godown stock mismatch | Transfers not recorded | Use Stock Journal for every movement; audit trail monthly |
| GST not applying on items | Missing HSN/tax on item/ledger | Set HSN & tax rate on stock item and sales/purchase ledgers |
Tip Use Alt + G (Go To) to jump to Stock Summary or Batch Summary from anywhere.