INVENTORY MANAGEMENT SOFTWARE

Quickbooks stock management system allows you to add inventory items, non-inventory items, services, and bundles. Inventory items include products you sell and keep track of through inventory tracking. Non-inventory items are products you buy and sell but cannot keep track of for they cannot be sold directly. Services include the intangible items that you provide to your customers in a given transaction. Finally, bundles are the group of items that you sell together as a single product.

Quickbooks stock inventory software allows you to generate reports to track sales and inventory status. The “Sales and Customers” group of reports help you to know the best selling products and sales by products and services. Likewise, “Inventory Valuation Reports” give an account of inventory on hand, its value, the average cost per item, and transactions for each inventory item. Finally, the “Expenses and Suppliers” group of reports indicate what’s still on order.

Quickbooks online stock inventory management you would have to dedicate a separate QBO subscription per location to track inventory for multiple locations. QBO subscription for each location would have to order and sell its inventory and cannot move inventory from one location to the other. You can also track the inventory of multiple godowns in one QBO subscription and prepare a separate list of items from different locations.

You can add all the items you buy and sell as inventory in Quickbooks stock inventory software. Simply turn on the tracking feature to add inventory and non-inventory items. To add a product or service, enter the product name, SKU, and category. Once you add the product’s initial quantity on hand, add the re-order point to get alerts when it’s time to reorder.

Various methods of inventory valuation applicable to both manufacturing and merchandising inventories. Methods of stock inventory management include specific identification method, average cost method, First In First Out (FIFO) method, and Last in First Out (LIFO) method. These methods help you to value inventory and hence divide the cost of goods available for sale between the cost of goods sold and ending inventory.

The three major stock inventory management techniques include ABC analysis, Just-in-Time, and Economic Order Quantity (EOQ) method. ABC analysis ranks products according to the value of such items. JIT coordinates production schedules with raw material orders to ensure that the raw material required to manufacture finished goods is delivered in time to the manufacturing unit. Finally, EOQ determines the optimal inventory level where both the inventory carrying costs and order costs are minimum.

Stock inventory management is important to maintain the uninterrupted flow of raw materials and finished goods. Further, inventory control helps in getting rid of excessive or inadequate inventory, keeping a check on raw material cost, reducing losses due to wastage, and ensuring that your business holds optimal inventory as required by the production process. Inventory control also helps in avoiding double ordering of the same raw material and carrying out production activities seamlessly.

Inventories are assets either held for sale in the ordinary course of business, still in the process of production, or are to be used currently in the production of goods or services that are eventually sold. Raw material, work-in-progress, and finished goods are the three categories or types of inventory. For example, a car manufacturing unit has aluminum and steel as raw material, half-assembled cars as work-in-progress, and completed cars as finished goods.

The inventory formula indicates the change in inventory level at the end of the accounting period. The inventory formula refers to calculating the ending inventory for a given period. Thus, ending inventory equals opening stock plus purchases less the cost of goods sold. The cost of goods sold is nothing but the cost to produce goods and services that are yet to be sold.

Stock inventory management software is software designed to manage and track inventory items at various stages of the supply chain. Such software helps in categorizing inventory items, tracking sales and purchase orders, managing stock levels, scanning barcode, and making purchases automatically at reordering points. Also, the stock inventory software prevents your business from keeping excessive or inadequate stock and thus avoiding stocks outs or wastage.

Real-time inventory management is the process of using tools like bar code scanners and inventory management software to record purchases, sales, inventory, and movement of inventory in an online inventory system. Such a process updates your inventory data in real-time, sets automatic reorder points, avoids double data entry, and ensures data accuracy. Tools like barcode scanners avoid the errors committed while entering the data manually. In short, a real-time inventory management system optimizes your supply chain and brings efficiency to your business.

Stock refers to the finished items that you sell to your customers or raw materials in case your business sells such items as final products. Inventory includes all those items that are used in manufacturing products to be sold by your business to its customers. Accordingly, inventory may include raw material, work-in-progress, or finished products. Stock determines the amount of revenue your business generates. Whereas inventory determines the sale price for your stock.

There are three steps that you must follow to do stock control. First, determine the optimum inventory levels. Second, determine the amount of control required to achieve the very purpose of inventory management. Finally, design an inventory control system for your business as it lays out the structure and policies to maintain and control inventory. Various inventory management techniques include ABC analysis, EOQ, JIT, material requirement planning technique, safety stock, and BED analysis.

The primary purpose of an inventory management system is to maintain stock at optimum levels. This is done to ensure a continuous supply of materials to the manufacturing process to meet customer demand on time. Also, stock management software optimizes inventory cost, eliminates stock duplication, minimizes wastage, maintains a systematic inventory record, and avoids overstocking and understocking of inventory.