Advanced Inventory Management Overview

The ‘Advanced inventory management’ includes a set of additional functions in the Back Office that allows users to more efficiently keep track of items in stock, monitor any changes in the inventory, and also launch a mechanism for more accurate calculation of business profitability indicators.

The ‘Advanced inventory management’ is only available in the paid subscription.
To activate subscription or a trial period, go to the ‘Billing & subscriptions’ section in the Settings menu of the Back office.

subscription for Advanced Inventory at the ‘Billing & subscriptions’ section

After activatiation, the ‘Advanced inventory’ menu will appear in the back office.

the ‘Advanced inventory’ menu


The ‘Advanced inventory’ menu includes:

Purchase orders - allows you to create and save orders for the supply of products, to send orders to suppliers, to receive products, and to save information of suppliers in the system.

Transfer Orders - allows a multiple store owner to distribute items correctly between his/her stores.

Stock Adjustments - allows you to modify the stock of items and indicate the reason for that adjustment.

Inventory history - allows the user to view records of all the changes made in the inventory, including transfers, purchase orders, and adjustments.

Inventory Valuation Report - gives an understanding of the total cost of the inventory and potential profits from their sale.

The Advanced inventory option alters the appearance of the Items form and the way items’ cost is calculated.

When you create a new item, you can fill in the Price and Cost as usual. However, when you switch on the ‘Track stock’ feature in the Inventory section, you will see additional fields that are only available with advanced inventory. For ‘Primary supplier’, you can assign a certain supplier for the product from the list and set the ‘Default purchase cost’.

 ‘Track stock’ with the Advanced Inventory

After you save the changes and open the item for edit again, the ‘Cost’ field will be changed to ‘Average cost’ uneditable field. It will be calculated automatically when you receive items using the advanced inventory functionality.

‘Average cost’ uneditable field

The value of the item cost after receiving new items (NewCost) is calculated as:

$$NewCost = {(StockBefore × CostBefore+StockAdded × CostOfAdded) \over (StockBefore+StockAdded)} $$

StockBefore - stock before receiving new items
StockAdded - quantity of received new items
CostBefore - cost before receiving new items
CostOfAdded - cost of received new items

This value of the cost will be used in all the reports and calculations of all other values.

 

See also:

How to Work with Purchase Orders and Suppliers

How to Work with Transfer Orders

How to Work with Stock Adjustments

Inventory History and Valuation Report

Advanced Inventory Core Features