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Inventory Tracking Method

Inventory Tracking methods

Depending on a business’ size and internal workflow, there may be different day-to-day inventory management tasks. This is why there are 2 tracking methods for the inventory in and out cycle: an Automatic and a Manual method.

In the Automatic Method, an inventory item’s stock availability is updated automatically when the item is purchased and sold; this is, in the purchase and sales invoices, respectively. When we purchase an item, the system updates the item’s quantity by adding the units purchased to the current stock.

When we sell the item, however, the system subtracts these sold units from the current stock.

This method is perfect for small businesses as it does not require additional warehouse staff, and thus one person can complete the entire process.

In the Manual Method, the goods receipts and dispatch modules are enabled for the warehouse team. In this method, purchases and sales invoices do not affect the inventory stock quantity, but rather these are updated when the items are received or released from the warehouse.

This method is ideal for businesses with dedicated warehouse staff.

Setting Inventory Tracking Method

To enable the manual inventory tracking in your business,

Enable manual inventory tracking
  1. In the main menu, go to Settings.
  2. In the settings area, go to Modules > Inventory > Main Settings option.
  3. On the inventory settings screen, scroll down to the Workflow section,
  4. Enable the inventory warehouse Goods Receipt and Dispatch options.
  5. Click on Save.

Important: By enabling these options, you have enabled manual inventory tracking, and from now on, the receipt and dispatch of goods must be recorded in order to update inventory stock.

The invoicing and purchasing modules will no longer update inventory stock directly.

Automatic Tracking: To enable the automatic inventory tracking just disable the Goods Receipt and Dispatch options and save.