Inventory Operations

Inventory operations record and review stock movement, stock position, reservations, valuation, reorder activity, landed costs, production execution, and physical counts.

Open Inventory -> Operations.

Workspace Reference

Workspace	Open From	Main Action	Main Record
Stock Balances	Inventory -> Operations -> Stock Balances	Review balances and movements	Current stock position by item, warehouse, tracking reference, availability, and value.
Stock Movements	Inventory -> Operations -> Stock Movements	New Movement	Controlled receipt, issue, transfer, adjustment, write-down, reversal, or reservation.
Procurement	Inventory -> Operations -> Procurement	New Requisition or New Purchase Order	Purchase requests, purchase orders, goods receipts, supplier returns, and debit notes.
Stock Reservations	Inventory -> Operations -> Stock Reservations	Review or manage reservations	Stock held for downstream sales, dispatch, production, POS, or agriculture flows.
Stock Take	Inventory -> Operations -> Stock Take	New Stock Take	Physical count session and variance review.
Reorder Suggestions	Inventory -> Operations -> Reorder Suggestions	Review, acknowledge, dismiss, or resolve	Suggested replenishment action.
Landed Costs	Inventory -> Operations -> Landed Costs	Review landed cost vouchers	Additional acquisition costs allocated into stock value.
Production Orders	Inventory -> Operations -> Production Orders	New Production Order where enabled	Production execution record for output, material issue, operations, QC, and costing.

Service workflows such as Production, POS, and Agriculture can originate stock events, but the authoritative balance, movement, reservation, and valuation ledger remains Inventory. If an agriculture produce delivery, grading decision, or dispatch affects stock, users should verify the resulting receipt, quarantine, issue, or transfer here rather than expecting a separate agriculture stock ledger.

For production, verify both sides of the stock story: raw material receipts and issues should affect the right warehouse, lot, batch, or WIP scope, and finished output or dispatch should reconcile back to the production order and delivery document.

Stock Balances

Stock balances show the current inventory position.

Use this view to answer:

• how much stock is on hand
• how much is available
• how much is reserved
• where stock is held
• which lots, batches, serials, or expiry dates exist
• what the current value is where valuation is shown
• whether stock is usable, quarantined, damaged, expired, or otherwise restricted

Balance Types

Balance Type	Meaning
On hand	Quantity physically or system-recorded in stock.
Available	Quantity not reserved or otherwise restricted.
Reserved	Quantity held for another workflow.
In transit	Quantity moving between locations where applicable.
Quarantine or blocked	Quantity not available for sale or consumption.
Valued balance	Quantity with associated inventory value.

Users should not rely only on on-hand quantity. Available quantity is what normally matters for new sales, issues, or production.

Procurement

Procurement is the preferred path for supplier stock acquisition. Use it when the business has purchase requests, purchase orders, supplier delivery notes, goods receipts, supplier returns, supplier debit notes, supplier invoices, or payment follow-up.

Typical lifecycle:

1. Create a purchase requisition where internal approval is required.
2. Convert or create a purchase order for the selected supplier.
3. Receive only the quantity that physically arrives and passes receiving checks.
4. Record partial receipts when the supplier delivers in parts.
5. Return damaged, wrong, expired, or rejected goods through supplier return.
6. Raise or apply supplier debit notes where the return affects payables.
7. Match supplier invoices to approved receipt lines.
8. Pay outstanding approved invoices through payment batches.

Important controls:

Control	User Expectation
Supplier lineage	Supplier should remain consistent across PO, receipt, return, debit note, invoice, and payment.
Source document	Receipt lines should come from the source PO or delivery workflow, not from memorised manual references.
Partial receipt	Receive actual delivered quantity and leave the remaining quantity open.
Over receipt	Extra quantity should be blocked unless the tenant has an approved tolerance.
Item mismatch	A receipt should not add items outside the source PO unless a controlled change exists.
Batch or lot	Received stock should carry the supplier batch, supplier lot, or controlled internal receipt reference.
Supplier return	Returned quantity should not exceed received and still-available stock.
Debit note	Debit note should reduce the payable but should not create another stock movement.
Supplier invoice	Invoice lines should match approved receipt lines and uninvoiced received quantity.
Payment	Payment should use the correct outstanding balance after returns and debit notes.

If procurement is available, do not use a standalone stock receipt for normal supplier delivery.

Stock Movements

Stock movements are the audit trail of inventory changes.

Click New Movement when a manual stock movement is truly required.

Common movement actions include:

Movement	When To Use It
Receipt	Stock arrives from purchase, production, return, opening balance, or another approved source.
Issue	Stock leaves inventory for sale, consumption, production, dispatch, or write-off.
Transfer	Stock moves from one warehouse or location to another.
Adjustment	Corrects approved stock differences when no better source workflow exists.
Write-down	Reduces stock value because of damage, expiry, obsolescence, or market value change.
Reversal	Reverses a previous movement through a controlled correction path.
Reservation	Holds stock for a downstream workflow without issuing it yet.

Use the business-specific source flow when available. For example, a POS sale should issue stock through POS, and a production order should consume materials through production.

When issuing materials manually to production, select the actual material scope from the order or operation: component item, warehouse, lot, batch, quantity, UOM, source reference, and WIP destination where required. Avoid a generic issue line when the BOM or stock tracking policy expects a specific material layer.

If the stock increase is an implementation opening balance, use the migration import flow instead of a casual manual receipt. For the controlled onboarding path, see Opening Stock Migration.

The same principle applies to agriculture produce. A produce delivery or quality decision may create or block stock impact through the shared source workflow, but any accepted, quarantined, downgraded, or rejected stock position must still reconcile through Inventory.

Important stock-movement fields:

Field	Meaning
Movement type	Receipt, issue, transfer, adjustment, write-down, reversal, reservation, or other controlled movement.
Stock item	Item being moved.
Quantity and UOM	Stock quantity and unit being moved.
Source warehouse	Location stock leaves from where applicable.
Destination warehouse	Location stock enters where applicable.
Lot, batch, serial, or expiry	Tracking reference required by the item policy.
Unit cost or new value	Cost value used where valuation is affected.
Reason or notes	Explanation for manual movements, adjustments, write-downs, or corrections.

Batch, lot, serial, expiry, and source references should be traceable values. If a supplier does not provide a batch or lot, use a controlled internal receipt reference instead of a random value.

Choosing The Right Movement

Situation	Preferred Action
Supplier stock arrived	Receipt workflow.
Customer sale completed	POS or sales issue workflow.
Materials consumed in production	Production material issue.
Materials returned from production	Production material return or controlled stock reversal.
Restaurant store issues food to kitchen	Stock issue from store or cold room to kitchen.
Restaurant store issues napkins to service area	Stock issue or transfer depending on policy.
Unused stock returns from kitchen	Return-to-store or reversal path preserving batch and expiry.
Supplier delivery is short or damaged	Partial goods receipt and supplier return where applicable.
Produce accepted after QC	Approved produce-intake handoff into stock.
Stock moved to another store	Transfer.
Physical count differs from system	Stock take variance, not casual adjustment.
Damaged stock lost value	Write-down or damage workflow.
Wrong movement posted	Reversal or correction workflow.

Avoid using manual adjustments to hide operational errors.

Wastage, Damage, Disposal, And Spoilage

Real operations lose stock. Record those events explicitly.

Examples:

• spoiled tomatoes
• wilted lettuce
• expired milk
• damaged eggs
• spoiled meat or fish
• damaged packaging
• broken glasses or plates
• lost cutlery
• contaminated cleaning stock

Use the correct stock movement, stock take variance, write-down, disposal, or breakage reason according to tenant policy. Add notes that explain what happened and who authorised the action.

Do not reduce restaurant sales to hide stock wastage. Sales, consumption, wastage, and breakage are separate business facts.

Reusable operating items such as plates, forks, trays, and utensils should not be issued as if consumed daily. They should decline through breakage, loss, permanent issue, disposal, or stock count variance.

Stock Reservations

Reservations hold inventory for a downstream process while the process is still in progress.

Examples:

• sales order allocation
• POS pending sale where policy supports it
• production material planning
• dispatch preparation
• production cutting or production planning
• agriculture delivery allocation

Reservations are also useful where accepted produce is being held for grading outcome, buyer allocation, dispatch planning, or controlled settlement release.

Review reservations when stock appears unavailable even though on-hand quantity looks sufficient.

Important reservation fields:

Field	Meaning
Stock item	Item being reserved.
Warehouse	Location where stock is being held.
Quantity and UOM	Reserved quantity.
Source document or process	Sales order, production order, dispatch, POS sale, agriculture flow, or other reason for the hold.
Status	Whether the reservation is open, fulfilled, cancelled, or released.

Reorder Suggestions

Reorder suggestions help users identify stock shortages or replenishment needs.

Review suggestions by:

• item
• warehouse
• available quantity
• reorder level
• shortage severity
• preferred supplier or source where available
• status

A suggestion should be acknowledged, dismissed, or resolved according to procurement policy.

Do not treat a reorder suggestion as a purchase order. It is a planning signal that should lead to procurement or another replenishment decision where policy requires it.

Landed Costs

Landed costs distribute extra acquisition costs into inventory value.

Examples:

• freight
• duty
• clearing fees
• insurance
• handling charges
• inspection or import-related costs where policy allows

Allocate landed costs only when the cost relates to stock receipts or valuation layers that should carry the added value.

Before allocating landed cost:

• confirm the receipt or stock layer is correct
• confirm the cost type
• confirm amount and currency
• confirm allocation basis
• confirm the valuation period is still open or approved for adjustment
• review accounting impact

Do not allocate landed costs after finance has closed or relied on the valuation period without review.

Important landed-cost fields:

Field	Meaning
Cost type	Freight, duty, clearing, insurance, handling, inspection, or other acquisition cost.
Amount and currency	Value to allocate into stock.
Receipt or stock layer	Stock receipt or valuation layer receiving the extra cost.
Allocation basis	How the cost is distributed, such as quantity, value, weight, volume, or manual basis.
Notes	Explanation and supporting reference for finance review.

Production Orders

Production orders convert planned production into execution.

Click New Production Order where the workspace allows direct production-order creation.

Typical lifecycle:

1. Create or receive demand.
2. Select output item and quantity.
3. Resolve BOM and routing.
4. Release the order.
5. Reserve or issue materials.
6. Start and complete operations.
7. Record quality checks or rework where applicable.
8. Receive completed output.
9. Review cost absorption and variance where configured.
10. Close the order.

Do not close production orders before materials, operations, output, quality, and cost are reviewed.

Important production-order fields:

Field	Meaning
Output item	Stock item being produced.
Planned quantity and UOM	Expected production output.
BOM and routing	Material recipe and production route.
Warehouse or production location	Location used for material issue, execution, or output receipt.
Expected start and completion dates	Planning dates for execution and follow-up.
Material issue lines	Components consumed by production.
Operation lines	Execution steps such as cutting, assembly, processing, packing, or inspection.
Output completion	Finished quantity received from production.

Stock Take

Stock take compares physical count with system quantity.

Click New Stock Take.

Typical flow:

1. Create stock take session.
2. Select warehouse and items.
3. Freeze or control movement where required by policy.
4. Record counted quantities.
5. Review variances.
6. Investigate large differences.
7. Submit or approve the stock take.
8. Post approved variance adjustments.

High stock-take variances should be investigated before posting.

Where stock take freezes a warehouse, room, item group, batch, or expiry scope, movements in that scope should be blocked or controlled until the count is complete. If an urgent movement must happen during the count, record the exception so the count can still reconcile.

Valuation Review

Inventory valuation can be affected by:

• purchase cost
• opening cost
• landed cost
• production cost
• write-downs
• reversals
• returns
• valuation method
• currency and exchange-rate treatment where applicable

When valuation looks wrong, review movement history before changing item setup.

Troubleshooting

Issue	What To Check
Stock unavailable	Available balance, reservations, warehouse, lot, expiry, or blocked status.
Procurement receipt is blocked	Source PO status, supplier role, item match, remaining quantity, approval status, and receipt tolerance.
Supplier return is blocked	Available quantity, original receipt execution, batch or lot, supplier lineage, and return quantity.
Supplier invoice matching fails	Approved receipt line, supplier, currency, business unit, item, quantity, price, tax, and prior invoicing.
Item missing in POS or production	Operational item, stock item, alias, active status, price, and warehouse scope.
Transfer fails	Source and destination locations, available stock, tracking requirements.
Valuation looks wrong	Receipt cost, landed cost, write-downs, reversals, valuation layers.
Production cannot release	BOM, routing, material availability, UOM conversion, output item.
Stock take variance is high	Recent receipts, issues, transfers, returns, and manual adjustments.
Reorder suggestion seems wrong	Reorder level, available balance, reservations, warehouse scope, demand assumptions.

Common Mistakes

Mistake	Better Practice
Using manual adjustment instead of receipt, issue, return, or reversal.	Use the workflow that matches the business event.
Receiving supplier stock directly when a PO/GRN path exists.	Use procurement so receipt, invoice, return, debit note, and payment reconcile.
Typing random batch, lot, or source references.	Use supplier references or controlled internal receipt references.
Paying supplier invoice total after a debit note exists.	Pay the actual outstanding balance after debit-note application.
Treating agriculture intake as a separate stock register.	Reconcile accepted, held, rejected, and dispatched stock through Inventory.
Ignoring reservations.	Review reserved stock before concluding stock is missing.
Posting stock take without investigating large variances.	Investigate and document material differences.
Allocating landed cost to the wrong receipt.	Match costs to the correct stock receipt or layer.
Closing production with unreviewed materials or output.	Review materials, operations, quality, and cost first.

Related Guides

• Inventory Setup
• Procurement And Stock Control
• Document Transactions
• Payment Batches
• POS Operations
• Production Operations
• Agriculture Operations