Publicado el
Published on
September 6, 2023
Actualizado en
Updated on
December 18, 2023

A warehouse is a physical space, location, or facility where companies store their products, whether they are raw materials, goods in process, or finished products, until they are needed for use or sale. In broader terms, a warehouse can also refer to a virtual location in an inventory management system, which is used to track and control stock levels of products.

In Cashflow, each warehouse is configured with specific parameters, including location information, document sequences, account determination, and other settings. Proper configuration and management of warehouses are crucial to ensure efficient operation and maintain optimal inventory accuracy.

1. Create a Warehouse

To create a warehouse, follow these steps:

  1. In the main menu, go to Inventory and then click on Warehouses.
  2. You can also access this through Settings > Inventory > Warehouses.
  3. In the list of Warehouses, click on the (+) button to add a new one.
  4. In the New Warehouse form, fill out the general information such as code, name, address, and other location details. Make sure to indicate whether the warehouse is active.
  5. In the Document Sequence section, specify whether the document sequence will be Global or By Location. If you choose By Location, you will need to define the Prefix and Initial Number for the sequence for each document in this warehouse.
  6. In the Account Determination section, specify whether the accounting determination will be Automatic or Manual. With the Automatic method, the system will create new ledger accounts for each warehouse. With the Manual method, you will need to choose existing ledger accounts from the chart of accounts.
  7. Click Save.
Document Sequence
Document sequence refers to the numbering or numeric sequence assigned to each generated document for identification purposes. For example, DM-1001 for merchandise dispatch #1001 or RM-1001 for merchandise receipt #1001.

Cashflow allows you to define this numeric document identification sequence in two ways: Global or By Location.

With this method, the numeric sequence is global and is shared among all warehouses in the business. This means you can have document DM-1001 in Warehouse-01 and document DM-1002 in Warehouse-03. This method is ideal if the business wants to maintain a unique document numbering regardless of the warehouse.

By Location:
With this method, the numeric sequence is individual in each warehouse. This way, the same document number can be repeated in each warehouse. For example, you can have RM-1001 in Warehouse-01 and RM-1001 in Warehouse-02. This method is ideal if the business wants to manage each warehouse independently.

Note: If you choose the By Location option, you will have the option to define the numeric sequence and prefix in each warehouse.
Account Determination
Account determination refers to the definition of the ledger accounts that will be affected in each transaction generated by documents that impacting inventory. For example, which ledger accounts will be impacted when generating a inventory dispatch?

Cashflow allows you to set account determination in two ways: Automatic or Manual.

In automatic determination, the system creates all the necessary accounts for transactions in each warehouse. This method does not require additional configuration and is the recommended option for those without advanced accounting knowledge.

With manual determination, the user must create these accounts manually and then select them for each warehouse's transactions. This method is more advanced and requires advanced accounting knowledge to configure correctly.

Please note that once you choose one of these two options, you won't be able to modify it later.

2. Edit a Warehouse

To edit a warehouse, follow these steps:

  • In the main menu, go to Inventory and then click on Warehouses.
  • You can also access it through Settings > Inventory > Warehouses.
  • In the list of Warehouses, look for the warehouse you want to modify.
  • Click on the actions menu (three horizontal dots) and then click on Edit.
  • Make the necessary adjustments.
  • Click Save to save the changes.

3. Delete a Warehouse

To delete a warehouse without transactions, follow these steps:

  • In the main menu, go to Inventory and then click on Warehouses.
  • You can also access it through Settings > Inventory > Warehouses.
  • In the list of Warehouses, look for the warehouse you want to delete.
  • Click on the actions menu (three horizontal dots) and then click on Delete.
  • Take note that if the Warehouse already has transactions, you won't be able to delete it.
  • You will be asked to confirm the action.

4. List of Warehouses and Options

The options in the action menu for each warehouse are:

  1. Edit
    If you need to edit any warehouse information, this option allows you to make any necessary changes.
  2. Delete
    If for any reason you need to delete a warehouse, you can do so using this option. Keep in mind that you can only delete warehouses without transactions.

Tips & Best Practices

When implementing and managing warehouses in Cashflow, there are some best practices that can help you optimize your experience and ensure efficient inventory management:

  • Advance Planning
    Before creating a warehouse in the system, plan and clearly define the structure and operations of your warehouse. This includes understanding the document numbering you want to implement and the necessary account determination.
  • Detailed Information
    Ensure that you complete all relevant information when setting up a new warehouse. This includes details such as the warehouse code, its location, and whether it will be active.
  • Document Sequences
    Clearly define whether the document sequence will be global or by location. Remember that this decision can affect how documents are tracked and managed in your company.
  • Account Determination
    Decide whether account determination will be automatic or manual. Remember that automatic determination is simpler, but manual determination can provide greater control for those with advanced accounting knowledge.
  • Consider Scalability
    When configuring your warehouses, think about the future of your business. Warehouse systems should be able to grow with your company, so consider how the decisions you make now can affect your ability to scale later.
  • Configuration Changes
    Note that some configurations, once defined, cannot be changed in the future. Take the time to make informed decisions that adequately reflect your warehouse operations.
  • Edit and Delete Carefully
    When editing or deleting warehouses, make sure you fully understand the consequences of these actions. Remember that you cannot delete a warehouse that has already conducted transactions.
  • Ongoing Training
    Ensure that all users interacting with the warehouse management system understand how it works and are trained to use it effectively.

Follow these best practices to maximize inventory management efficiency and ensure the accuracy of your inventory tracking in Cashflow.

Common Issues

While Cashflow is an effective tool for managing warehouses, users may encounter a range of common issues. Here is a list of these problems and possible solutions:

  • Error When Creating a Warehouse
    Ensure that all required fields are completed before attempting to save. Empty fields or incorrect data can prevent warehouse creation.
  • Inability to Delete a Warehouse
    If you try to delete a warehouse and receive an error, it's likely that there are already transactions associated with that warehouse. Cashflow does not allow the deletion of warehouses containing transactions to prevent the loss of important data.
  • Document Sequence Problems
    If you choose the "By Location" document sequence option but notice that the sequence numbers do not follow the expected pattern, check whether you have configured the prefix and initial number correctly in each warehouse.
  • Confusion with Account Determination
    The account determination system can be a bit complicated for users without accounting experience. If you choose the Manual option, make sure you have a good understanding of the necessary ledger accounts for warehouse transactions. If you're unsure, it's better to choose the Automatic option, as it creates all necessary accounts automatically.
  • Difficulty Finding a Specific Warehouse
    If you have many warehouses, it can be challenging to find a specific one in the list. Use the search function or available filters to make this process easier.

Remember, each company has its own specific needs and requirements. Take your time to understand how Cashflow can adapt to your operations, and don't hesitate to seek help if you encounter any issues.