Inventory & Warehouse — User Guide

Recommended roles:

• Inventory Admin
• Maintains item master data, warehouses/locations, opening balances, and policies.
• Warehouse Clerk / Storekeeper
• Posts receiving, issuing, transfers, and adjustments (based on process).
• Procurement / Purchasing
• Uses availability to plan purchases and confirm receiving.
• Sales / Operations
• Checks stock availability before committing to delivery.
• Finance / Management
• Reviews valuation and inventory movement governance.

Best practice:

• Separate who can adjust stock from who can request adjustments (segregation of duties).

### 1) Define warehouses (and locations if used)

• Create warehouses that match your physical sites (Main, Branch 1, Project site, etc.).
• If your workflow uses locations/bins, enable and define locations consistently.
• Decide ownership: who is responsible for each warehouse.

### 2) Build item master data

• Create item groups (categories) for reporting and filtering.
• Create items with consistent naming and codes.
• Decide units of measure and keep them consistent.

Tip: standardize item naming (e.g., “Cable — CAT6 — 305m”) to reduce duplicates.

### 3) Set opening balances
Before going live:

• Record opening stock quantities per item per warehouse (or location).
• Validate totals against your physical count or prior system export.

### 4) Define stock movement policies
Decide:

• Who can receive stock
• Who can issue stock
• Who can transfer stock between warehouses
• Who can perform adjustments and under what conditions
• How you document reasons (damage, loss, recount, correction)

### 5) Reorder and low-stock rules

• Decide minimum stock levels for critical items.
• Decide reorder points based on lead times and consumption.
• Assign responsibility for replenishment.

### 6) Align with other modules

• With Procurement: receiving should reflect actual delivery.
• With Sales & Invoicing: teams should check availability before issuing stock.
• With Manufacturing (if enabled): ensure materials consumption follows BOM/work order discipline.

### Workflow 1: Receive stock
Use when stock arrives from suppliers.

1. Confirm what is being received (items and quantities).
2. Select the destination warehouse (and location if applicable).
3. Post a receiving movement.
4. Verify:

• Stock on hand increased for the received items
• The movement appears in history

Good practice:

• Attach delivery evidence (delivery note number, invoice reference, or receiving note).

### Workflow 2: Issue stock (fulfillment or internal use)
Use when stock leaves the warehouse.

1. Check availability for the item in the source warehouse.
2. Create an issuing movement:

• Quantity
• Reason (sales fulfillment, internal consumption, project usage)

1. Verify balances updated.
2. If linked to a transaction (invoice/order), ensure references are consistent.

### Workflow 3: Transfer stock between warehouses
Use when you move stock between sites.

1. Choose source warehouse and destination warehouse.
2. Select items and transfer quantities.
3. Post the transfer.
4. Verify:

• Source stock decreased
• Destination stock increased
• Transfer is logged with traceability

Tip: use consistent transfer reasons (restock branch, project allocation, consolidation).

### Workflow 4: Adjust stock after cycle count
Use when physical count differs from system stock.

1. Perform a physical count for a subset of items (cycle count).
2. Compare physical count vs system stock.
3. Create an adjustment:

• Increase or decrease quantity
• Provide reason (count correction, damage, shrinkage)

1. Require review/approval if your policy mandates it.
2. Verify movement history clearly shows the adjustment.

### Workflow 5: Reorder review
Use weekly (or daily for fast-moving items).

1. Open low-stock / reorder report (or stock on hand list).
2. Identify items below minimum stock.
3. Create purchase requests or procurement actions.
4. Track replenishment and update as deliveries arrive.

Common inventory reports:

• Stock on hand by item and warehouse/location
• Stock movement history (receiving/issue/transfer/adjustment)
• Low stock / reorder review
• Inventory valuation summary

Recommended cadence:

• Daily: inbound/outbound review for high-volume warehouses
• Weekly: reorder review + exception checks
• Monthly: valuation review + governance review of adjustments

### Stock on hand is not updating

• Confirm the movement was saved/posted successfully.
• Confirm the correct warehouse/location was selected.
• Confirm permissions allow posting movements.

### Negative stock appears

• Check if your policy allows issuing beyond on-hand quantity.
• Review recent movements and adjustments for errors.
• Add approval control for adjustments if needed.

### Item duplicates exist (same thing under two names)

• Standardize item naming and codes.
• Merge/retire duplicates and train users to reuse existing items.

### Valuation looks wrong

• Confirm opening balances are correct.
• Review adjustment history for large corrections.
• Validate that item rates/cost assumptions are consistent.

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