An Item is a product or a service offered by your company. You can manage all sorts of items like raw materials, finished goods, etc.

Opening Stock is the amount and value of materials that a company has available for sale or use at the beginning of an accounting period

An Item Variant is a version of an Item with different attributes like sizes or colors.

A Serial Number record is maintained for each quantity of an Item and can be used in tracking the location, warranty and end-of-life information.

Batch feature in ERP system allows you to group multiple units of an item, and assign them a unique value called Batch No.

You can set default settings for your stock-related transactions here.

Item Price is the record in which you can log the selling and buying rate of an item.

An Item Group is a way to classify items based on types.

A Stock Entry is a simple document that lets you record Item movement between Warehouses.

A Price List is a collection of Item Prices either selling, buying, or both.

A Material Request is a simple document identifying a requirement of a set of items (products or services) for a particular reason.

Purchase Receipts are made when you accept material from your Supplier usually against a Purchase Order.

A Delivery Note is made when a shipment is shipped from the company Warehouse.

Landed Cost is the total cost of a product to reach the product at the buyer’s door.

Goods sold being returned happens commonly in business for reasons like quality issues, non-delivery on an agreed date, etc.

The system has an option for products that are needed to be returned to the supplier on account of reasons like defects in goods, quality, etc.

Delivery Trip is created to record Customer Deliveries in one vehicle. Multiple stops can also be added and Submitted Delivery Note can be tagged per Customer.

Stock Reconciliation is the process of counting and evaluating material/products, periodically and at year-end.

As per the pERPetual inventory system, accounting entry is done for every stock transaction.

Stock Level report lists stock item’s quantity available in a particular warehouse.

BOM Explorer Report shows a complete hierarchy of the Bill of Materials (BOM) with its raw materials in the form of the tree view.

This report helps the user to understand the difference value between the stock account and stock balance report.

Repack Entry is created for an item bought in bulk, which is being packed into smaller packages. For example, item bought in tons can be repacked into Kgs.

A barcode is a value decoded into vertical spaced lines. Barcode scanners are the input medium, like Keyboard. When it scans a barcode, the data appears in the computer screens at the point of a cursor

Item-wise Price List Rate, Stock Analytics, Delivery Note Trends, Purchase Receipt Trends, Sales Order Analysis, Purchase Order Analysis, Purchase Order, Item Shortage Report, Batch-Wise Balance History, Requested Items To Be Transferred, Batch Item Expiry Status, Item Prices, Item-wise Recommended Reorder Level, Item Variant Details, Stock and Account Value Comparison, Stock Balance & Stock Ledger

In FIFO it is assumed that, in a warehouse, items that arrive first, are sold first. Hence, it is calculated by summing the actual cost of the stock of an item, available in the warehouse.
FIFO stock value = Qty1 * Rate1 + Qty2 * Rate2 + …
Moving Average:
In Moving Average, the value of an item is the average cost weighed by the quantities available in the warehouse.
Moving Average Rate = (
(Available Qty in stock * Average Rate) + (Incoming Stock * Incoming Rate)) /
(Available Qty in Stock + Incoming Stock)

In real world, generally price of the item rises over time, so products that come into inventory earlier have lower costs than newer ones. That’s why using FIFO, valuation rate generally shows higher value compared to moving average, and hence higher gross profit and net income.

On the other hand, since it increases gross profit and income, it also increases tax liabilities to the company.

Determining the average unit cost of goods available for sale effectively smoothes any price fluctuations in a material that may occur. That’s why, if the cost of any item fluctuates very regularly, it is recommended to use the moving average method.

The Inventory module in ERP ZEROFORCE helps you to:

• Maintain details of your products and warehouses.
• Track receipt, transfer and delivery of the products.
• Optimize stock levels by providing real-time information via reports.
• Provide valuation of each product.

The inventory module is tightly integrated with Purchase, Manufacturing and Accounting modules.