Inventory fundamentals
Inventory basics: what, where, and how much
Build a stock record you can reconcile with what is actually on the shelf.
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Start with the item, not just its name
A useful stock record identifies something you can count consistently. Name it clearly, give it a stable SKU, and choose the unit you will track. If two items must be picked separately, they usually need separate stock balances.
For example, a small glove and a large glove can belong to the same product family, but counting twenty gloves without sizes will not tell you whether an order for large gloves can be filled.
Connect the total to its locations
| Location | Units |
|---|---|
| Warehouse | 46 |
| Studio | 12 |
| Storefront | 6 |
| Total | 64 |
The total says there are 64 units in the business. The storefront balance says only six can be picked there. The location answers a question the total cannot answer on its own.
Keep a reason for every change
Starting from 64 units, receiving 24 gives 88. Selling five gives 83. Moving six from the warehouse to the storefront leaves the total at 83 while changing two location balances.
A recount records a correction to what physically exists. If it finds 81 rather than 83, investigate the two-unit difference and retain the count record. Avoid silently changing opening stock each time a discrepancy appears.
In Inventory, use the matching stock action so the history explains the change and the next count has a reliable starting point.