Knowledge BaseInventory

    Inventory management overview

    Updated on February 28th, 2024

    Inventory management inside SalesBinder is done automatically for you. Your stock levels will automatically decrease and increase based on actions you complete in the system. We'll breakdown how this all happens below:

    Selling Inventory

    Invoices: When you want to sell inventory, all you need to do is create an invoice. As soon as that invoice is saved, the inventory units in that document will automatically be marked as sold and get deducted from your available inventory levels. Invoices are also how your revenue is calculated in reports, regardless of them being paid or not.

    Replenishing Inventory

    Purchase Orders: When you need to get more inventory to replenish your stock levels, you would create a purchase order. When you save a purchase order, it's initially set to a "not sent" status. This means it hasn't affected anything yet (similar to being in a draft form).

    Once you mark that PO as "sent", the inventory inside that PO will now be included in an "incoming units" total for each individual inventory item. This enables you to view an inventory item's details page and see how many units have already been ordered but haven't been received yet.

    When you're ready to receive the goods, you can partially receive units in the PO or mark the entire PO as received in full. At that point, those ordered units will be placed into your available stock so they're available for sale.

    Reserving Inventory

    Sales Orders: Many businesses put together sales orders before an invoice is appropriate. In SalesBinder when you create a sales order, the inventory in that sales order will be marked as reserved. This means those units are held in a separate total and reserved so you're aware of how many units are actually still available for sale.

    Sales Orders have a lot of extra functionality as well. You can generate one or more invoices from the sales order when you're ready, and by doing this those reserved units will be deducted from stock. You can also create multiple packing lists and multiple shipments and track the progress of all these things in a nice organized list view.

    Transferring Inventory

    Stock Transfers: When you have multiple locations where your inventory is stored, whether it's multiple warehouses, retail stores, contractor vans, etc, you can create a Stock transfer document to specify which units you're moving from one location to another within your organization. Stock transfers also update inventory levels based on their status. When the units are "in transit" they're organized into a separate quantity so you can view how many are on the way in. Once they arrive to your destination location, you would simply mark that stock transfer as complete and those units will now be added to that location.

    Assembling Inventory

    Kits & Bundles: SalesBinder also supports creating Kits & Bundles, which enables you to "use" existing inventory as parts and assemble them into a finished product. Kits can be setup to automatically be assembled anytime they're sold, or they can be manually assembled ahead of time. Anytime you sell a kit that is set to automatically assemble, the parts within that kit are automatically deducted based on what is needed to assemble it.

    Estimates / Quotations

    This type of document does not affect anything mentioned above, nor does it affect inventory levels. The purpose of this document is to outline a potential sale along with the pricing before marking anything as sold or reserved. Once an estimate is approved, you can convert it into either an invoice or a sales order in one-click.

    Cheatsheet (TLDR)

    • Invoices
      --> Deducts Inventory
    • Purchase Orders
      --> Replenishes Inventory
    • Sales Orders
      --> Reserves Inventory
    • Stock Transfers
      --> Moves Inventory
    • Kits & Bundles
      --> Assembles Inventory
    • Estimates
      --> Changes Nothing
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