Inventory

Overview

Tracks stock across warehouses, manages movements, and supports barcode scanning with low-stock alerts.

Key concepts

Key terms, statuses, and records that appear in Inventory in XFatora.

Setup & prerequisites

Connect required settings, templates, and defaults for Inventory in XFatora.

Roles & permissions

Assign role-based access, approvals, and visibility for Inventory in XFatora.

Main workflows

Inventory module

allows you to track and manage your stock of products and materials in real time. It provides tools for monitoring stock levels, recording stock movements (receipts, issues, transfers), and valuing inventory. By using this module, you ensure that you never run out of important items (preventing stockouts) and also avoid overstocking (which ties up capital). The module keeps everyone informed about how much of each item is on hand, where it is stored, and what its worth.

Item Master Data Setup

Product/Item List:

Start by defining all the items you want to track in inventory. Go to

Inventory > Items

(or a similar section) and create a new item record for each SKU or product name. Fill in details: item code (unique SKU or part number), descriptive name, unit of measure (e.g.,

pcs

,

kg

,

liter

), and category (you might categorize by type or department to organize). If the item is purchased and/or sold, indicate that (the system might integrate items across sales, purchase, and inventory modules). Also specify if the item is

stock-tracked

. Some items may be non-stock (like services or consumables you dont track count for); ensure to only mark actual stock items as inventory-tracked.

Initial Stock & Location:

For each item, define which warehouses or storage locations it can reside in. On item creation, you might not assign a location yet; instead youll handle it when adding stock. However, if you already have existing stock when starting to use the module, you should input

Opening Balances

. Use a function like

Add Opening Stock

(there might be an import or manual form) where for each item you input current quantity on hand and which warehouse and maybe the valuation (cost price). The module likely has an Opening Stock transaction or treat the first Goods Receipt as initial stock. You can also set a standard cost or last purchase price on the item if known, which helps with valuation.

Reorder Levels:

If the module supports it, set

minimum stock level

(reorder point) and

maximum level

for each item. For example, Item ABC should not drop below 50 units to avoid shortage, and maybe not exceed 200 for storage constraints. The system can then flag items at or below min for reordering. There's usually a field for

Reorder Point

and

Preferred Vendor

. Fill those to get automated suggestions for procurement.

Barcodes and Identifiers:

If your items have barcodes or serial/lot numbers, enter those details. The module may allow associating a barcode number with the item, which can be used if you have scanning hardware. If you need to track individual serial numbers or batches, ensure to enable

Serial/Batch tracking

on the item (some systems have a toggle if an item is serialized or lot-tracked). That will require extra input each time stock moves (like entering which serial number or batch code). Use this for high-value items or regulated products as needed.

Warehousing and Stock Movements

Warehouse Setup:

Define your

Warehouses

or storage locations in the module (e.g., Main Warehouse, Storefront, Secondary Storage, etc.). Each warehouse can have sub-locations (aisle, shelf) if needed, but many systems keep it simple by warehouse. Tag each inventory transaction with a warehouse. Go to

Inventory > Warehouses

to create them with meaningful names. Also record address if you have multiple sites (helpful for transfers between warehouses).

Goods Receipt (Inbound):

Whenever stock comes in (via purchase deliveries or production), record a

Goods Receipt

or

Stock Entry (In)

. If integrated with Procurement, as described earlier, confirming a PO receipt might already add stock. If not coming through procurement module, you can manually add: choose the warehouse, the item, quantity, date, and reference (maybe supplier or reason). Save it. This increases the available stock count in that warehouse. For accuracy, always enter receipts promptly when goods arrive. If partial shipments happen, enter each separately. The module may label these transactions as

GRN

or

Stock Increase

. Keep any vendor paperwork attached if needed.

Stock Issue (Outbound):

When stock leaves (sold to customers, used in production, or written off as damaged), you record a

Stock Issue

or

Goods Dispatch

. If integrated with Sales, delivering an order can deduct inventory automatically. For example, shipping a sales order/invoice can trigger a stock decrease. Check integration: if you fulfill a sales order and mark items delivered, does inventory auto-adjust? Likely yes if items are linked to inventory and sales module. The module might have a setting Deduct inventory on invoice. Ensure thats on if you want automatic. If not using sales integration or for other reasons (like internal use of materials), create a Stock Issue record: select warehouse, item, quantity out, date, and reason (e.g.

Sold

,

Used in maintenance

,

Expired disposal

). This reduces stock. The system probably prevents issuing more than on hand in that warehouse (or at least warns). If you try, check if you allowed negative stock (generally should avoid negative because that indicates data lag).

Stock Transfer (between Warehouses):

If you move inventory internally from one location to another (e.g. from Main Warehouse to a retail store), use the

Transfer

function. Provide source warehouse, destination warehouse, item, and quantity. The system will in one action deduct from source and add to destination. Optionally, reference a transfer document number or who authorized it. This is crucial to keep multi-location stocks accurate. Without logging transfers, one location will appear to lose stock mysteriously and the other gain always use transfer to reflect it. Some modules may require an approval step for transfers or at least track who performed it.

Stock Adjustments:

Sometimes you discover a mismatch (inventory count differs from system). Perform a

Stock Adjustment

entry: if an items actual count is less (e.g., found some missing or theft), do an inventory write-off: item, warehouse, quantity to reduce, reason (e.g.

Inventory Count Adjustment

). Similarly, if you find extra units (maybe data entry missed a receipt earlier), you might adjust up. Some systems call this

Stock Reconciliation

. Its good to attach the physical count sheet or manager approval to these adjustments, since they directly impact financials (if integrated, a write-off will hit an expense like

Inventory Shrinkage

). The module probably asks which account to hit for adjustments if linking to accounting. Set a default like

Cost of Goods Sold

or a specific

Inventory Adjustment

expense. Always investigate big discrepancies the system helps by making you formally record adjustments rather than just editing a quantity, ensuring accountability.

Inventory Visibility and Control

Real-time Stock Levels:

After each transaction, the module updates the available quantity for each item per warehouse. You can check the

Stock Report

or

Item Balance

to see this. For example, Item X: 120 in Main Warehouse, 30 in Store A, etc. Encourage the team (sales, customer service) to check stock levels here before committing to customers. The system may also show an

Available

quantity (which might be on hand minus allocated for orders). If integrated with Sales, when a sales order is confirmed, it could allocate stock. See if theres a concept of

Reserved

or

Allocated

. For example, an item has 100 on hand but 20 allocated to open orders, so available is 80. The module might display that or at least link to open orders. Use this to plan purchasing or to promise delivery to customers.

Reorder Alerts:

With reorder points set, the module can generate a

Reorder Report

or triggers. For instance, a daily or weekly job might list all items below their min level. You can often auto-create Purchase Requests or orders from that list. Some modules even suggest how much to order (like to reach max level or based on lead time consumption). At minimum, run

Inventory Status

report filtering for where quantity <= reorder point. This ensures you place replenishment orders on time. Possibly, tie this with procurement module: it could create a draft PR for needed items to be approved and converted to PO.

Batch and Serial Tracking:

If enabled, managing these is crucial:

Batch (Lot) tracking:

When receiving items that have a batch/lot number and maybe expiry date, the module will prompt to input that. E.g., receive 100 units of drug with batch #123 expiring 2025-12. That batch is now in stock. When issuing or selling, the system may force you to choose which batch (especially if FEFO/FIFO matters for expiry). Always select the oldest batch first if its expiry sensitive. The system can produce an

Expiry Report

showing which batches expire soon so you can prioritize usage or discounts. Manage these to reduce waste.

Serial tracking:

Each unit has unique serial. On receipt, list each serial or import from a scanner. That ties them individually to stock. On sale/issue, pick which serials went out. That way you have warranty info and traceability. Its more data entry, but vital for high-value items or regulated ones. The module likely lists all current serials in stock and their status. Use it also to quickly respond to queries like Has serial #XYZ been sold and to whom? youd find its transaction record.

Stock Valuation Methods:

Inventory value in accounting can be based on FIFO, LIFO, or Weighted Average (or standard cost). Many systems default to Weighted Average. E.g., if you buy 100 units at $10 and later 100 at $12, average cost becomes $11 (weighted by quantity if none sold in between). Each sale then takes $11 as cost of goods. Some systems allow FIFO, where it picks actual cost from first lot still in stock. Decide which method youll use and configure it in settings. Weighted Avg is simplest and common unless legally required FIFO. The module upon each purchase receipt will either recalc average or tag a FIFO layer. It will provide

Inventory Valuation Report

that multiplies quantity * cost per item for total stock value. Ensure this ties to accountings inventory account. Possibly, the module posts an accounting entry for each stock receipt (debit Inventory, credit GRNI or credit Purchases) and for each sale (debit COGS, credit Inventory) if integrated properly. Work with finance to set up the GL mappings: e.g., map Warehouse Main to Inventory Asset account in chart, map adjustments to an expense, etc. If integration is correct, your general ledger inventory account will always match the Inventory modules valuation report. Its wise to reconcile those monthly.

Security & Audits:

Limit who can adjust or delete inventory records. Inventory is susceptible to fraud; the module should keep logs. Possibly require approvals for adjustments over a threshold. Conduct periodic

Physical Counts

(stock audits). The module might have a stocktake function: freeze current stock data, count physically, input counts, and it auto-generates adjustments for differences. If so, use it for year-end inventory audits or cycle counts (count certain items each week in rotation). The systems data plus these audits ensure accuracy. Differences might indicate theft, paperwork misses, or mis-labeled items, so they are red flags to address.

Integration with Other Modules Recap:

Procurement:

Received POs automatically increase stock. Also, if procurement notifies of a delay, inventory maybe can foresee a stockout and alert earlier. Without procurement integration, youd manually add stock from vendor receipts, which is error-prone. So fully use that integration as described.

Sales/CRM:

Sales staff can see stock and promise accordingly. If an item is out of stock, a sales order might trigger a backorder or at least alert. The inventory module could mark the order as waiting for stock. Once you receive new supply and input it, perhaps those backorders can be fulfilled. Some modules can auto-reserve stock to an order to ensure it's not sold twice. If you have such, use it for fairness. E.g., first order gets priority on existing stock.

Manufacturing/Projects:

If you produce items, inventory is drawn as raw materials and added as finished goods. If using a manufacturing module, issuing a work order could automatically deduct components from inventory and add the product. If not automated, at least treat production consumption as inventory issues (to a production consumption account or location) and treat finished goods as receipts (from production) into stock. This way, total raw material down and finished goods up. Ensure BOMs are accurate so you know how many materials to issue for each production run.

Finance:

Inventory module ensures that the cost of goods sold recorded corresponds to actual stock usage. For example, when a sale is invoiced, if integrated, the module picks up the cost from inventory for that item and makes the accounting entry. Check that on sample sales the numbers align with what you'd expect. This prevents huge surprises in profit calculations.

By actively managing your inventory through this module, you gain

centralized control of stock across all locations

. You can fulfill orders efficiently, reduce capital tied in excess inventory, and identify issues like theft or obsolescence early. The real-time visibility leads to better decisions for instance, identifying slow-moving items to put on promotion, or fast-moving items to always keep safety stock. Inventory accuracy is also crucial for customer satisfaction: you promise what you can deliver. The Inventory module, tied with procurement and sales, thus becomes the backbone of your supply chain operations within XFatora, ensuring the right materials are in the right place at the right time.

Screens & fields reference

Use these screens and fields to complete tasks inside Inventory in XFatora.

Automations & notifications

Review automation rules and notifications available in Inventory in XFatora.

Reports & dashboards

Track KPIs and dashboards powered by Inventory in XFatora.

Common mistakes

• Skipping required configuration before the first workflow.
• Not assigning the correct permissions for team roles.
• Forgetting to review automation or notification settings.

FAQs

Troubleshooting

Related modules