Inventory Management

Businesses have a large part of their financial resources invested in the stock items they trade. With ERP ZEROFORCE, you can always keep a bird’s eye view on your stock availability, replenishment, procurement, sales, and much more.

Inventory management with hierarchical location tree, stock movements, serials and batches


A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, etc.


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

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

Item Variants

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

Serial Number

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.

Stock Settings

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

Item Price

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

Item Group

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

Stock Entry

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

Price Lists

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

Material Request

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

Purchase Receipt

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

Delivery Note

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

Landed Cost Voucher

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

Sales Return

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

Purchase Return

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

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

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

PERPetual Inventory

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

Stock Level Report

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

BOM Explorer

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

Stock and Account Value Comparison

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

Repack Entry

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.

Track Items Using Barcode

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

Inventory Valuation Method – FIFO vs. Moving Average

What is Valuation Method? Difference between FIFO vs. Moving Average.

Inventory valuation is the cost of unsold goods in a company’s inventory. It includes all costs incurred to get the item ready for sale, like material expenses, direct labour, freight, handling, import duties etc.
Inventory is an important asset on the company’s balance sheet for small and medium businesses. So, it is very important to calculate the correct inventory value.
There are several valuation methods, but for small businesses, it is generally restricted to FIFO and Moving Average.

FIFO (First In First Out)

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)

Advantages and Disadvantages

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.

Features & Module

Point Of Sale System
Financial Accounting
Inventory Management
Human Resource Management
Project Management
Assets Management
Sales Management
Purchase Management
Customer Relationship Management
Maintenance Management
Manufacturing Management
Document Storage
Tools & Calendar
Integrated Emails