Warehouse management

03How it works

How it works step by step.

1. 1

   How it works

   Stock levels change only through documents: a goods receipt, goods issue, stock transfer or stocktake. Every document follows fixed statuses, and a status changes only through an approved command—never by manually overwriting a field. Posting a document records a movement in the inventory movement ledger. Once written, no ledger entry can ever be overwritten, not even directly in the database. Any correction is always a new, linked reversal entry.

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   Inventory is held in stock batches by warehouse, bin location, product, serial number, lot number, expiration date, currency and unit price. Quantities are calculated accurately, and every movement stores both the entered unit and its conversion to the base unit. Each document always uses a single currency.

2. 2

   Receiving goods from suppliers

   Convert a purchase order into an inbound delivery note. If any order line is missing a product, the system rejects the conversion. From the delivery note, you generate goods receipts in a single step—one for each warehouse and currency. Once a goods receipt is posted, stock batches and entries in the movement ledger are created. As soon as all goods receipts are received, the delivery note automatically marks itself as received. You can also create a delivery note from a received invoice.

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   You can also create a goods receipt manually. A standalone goods receipt can be reversed with an offsetting movement as long as no stock from the batch has been reserved or issued yet. When matching a received invoice, the system checks by default that there is a matching inbound delivery note for the same purchase order and supplier, along with a posted goods receipt in the same currency.

3. 3

   Goods issue, reservations and transfers

   An outbound delivery note creates goods issues, one for each warehouse. The delivery note itself does not move stock. Instead, the goods issue first reserves specific stock batches. The warehouse strategy determines which batches are picked: FIFO, LIFO, FEFO, lowest price or highest price. If the available quantity is insufficient, the reservation is rejected. Posting the issue then reduces the batches and records the movement, ensuring stock can never drop below zero.

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   A stock transfer reserves items in the source warehouse and, when executed, records a goods issue from the source and a goods receipt in the destination warehouse. A canceled document can be reopened as a draft.

4. 4

   Stocktake with approval

   Starting a stocktake saves the expected quantity of every product in the warehouse. Each counter gets their own count sheet and closes it once counting is complete. Processing then compares the counted and expected quantities. For a shortage, the system prepares a goods issue and reserves the stock right away. For a surplus, it prepares a goods receipt priced at either the weighted average of batches or the product’s purchase price.

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   Adjustment documents are posted only after a manager approves them. If rejected, the stocktake returns to counting and the prepared documents are canceled. Staff can count using a mobile barcode scanner, while approval stays on the desktop.

5. 5

   Stock replenishment

   An administrator sets up the nightly automatic purchasing job (scheduled for 2:00 AM by default). When stock for a product with automatic purchasing enabled drops below its minimum and there is no open purchase order with an unreceived quantity for it, the job creates a draft purchase order. It selects the supplier based on the lowest price, or the lowest price factoring in lead time. You can trigger the exact same process for a single product using the Order action.

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   The low-stock dashboard widget highlights products below minimum or above maximum stock levels, filtered by warehouse and product type.