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Fer

How to track the stock of items that I receive in a box?

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Fer

I receive items packed in a box, and from that box i sell the items by units or in smaller proportions, is there a way to handle this?

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Rodrigo Díaz

You can create an item “box” and another one for your unitary item.

- Item box
- Item unit

The item unit will be composed of the itme box, which allows you to share the same stock for both items.

 

The downsides.

- It works only if you order products always by the same standards. For esample, ordering a box of bananas that is always 40 lbs. 
- It takes more initial preparation.

The benefits

- Once it’s set up it doesn’t require changes.
- It streamlines the creation of Purchase orders.

 

How to do it?

First Step: Creating item box.

Indicate in the item’s name your unit of measure. In my example I write "Bananas Box (40lbs)"; and give it a cost.

image.png.7b7f786806079797f66813c3b57d29a9.png

Enable Track Stock, and enter a stock value.

image.png.d457b5f92874773edd3f12aa02af9697.png

Note that the sotck means how many boxes you have in inventory.

1 unit in stock equals 1 box in inventory, which means 40lbs of bananas.
2 units in stock = 2 boxes = 80 lbs

You can now also specify a low stock and an optimal stock value. This will help later to create a purchase order.

In my case I will also enter a supplier and a default purchase cost.

image.png.9cbe21a371cd1f954903bda2e45c50c2.png

 

Second step: Creating Unit Item.

In this case, I will indicate in the item name my unit of measure, which will be 1 lbs.

I enter the sales price, but I leave the cost field empty. In my example I sell this item by weight.

image.png.cff4e7be29397ffa20550df1a4d21c51.png

We are not going to track stock.
Instead, we activate “Composite item”

image.png.c757e627afccdb4476321666aba366a0.png

In the component search, add the item “Bananas Box”
And enter 0.025 in the quantity column.

The unit cost will be automatically calculated. (0.75 as shown in the image above)

The formula for the quantity I used is 1*1/40

It comes after considering that 40 (lbs) makes 1 box. So we need to calulate how many boxes makes 1 (lbs).
1 lbs makes 0.025 boxes.

After that, we only need to save the changes.

 

Next: Selling items

Now, I head to the POS and proceed to make a sale of Banana x 1.200

image.png.f430e6b0766849b0a5c59acc8399263b.png

Stock of item box is reduced the respective units. Which should be 1.2 * 0.025 = 0.03
The result is that I have 4.97 units in stock

image.png.e4e0bc35264b0b3af02957f7ec8747cf.png

 

Next: Creating new Purchase Order

Let’s say the stock of the box drops down to 0.5 units.
Now I want to make a Purchase Order.
image.png.1c397ccb2352583f18a7799acc78df31.png

Quantity and Purchase cost are automatically filled based on my current stock level and the Low and Optimal stock.

Probably it’s not convenient to order 4.5 boxes, but rather, 5 new boxes.
And this time, my supplier is giving me a better price of $28 per box. So I will manually change the values.

image.png.4dd4cdfbb8eb983ebc555282177c0b2a.png

The goods arrive to store so I mark the order as received.

I check the item and confirm that the stock is updated:
image.png.6acb0e5f82f8c7380542e641e372898e.png

And I can see how average cost has also been updated

image.png.c0513c46b5651d2a7f518b42f73f4604.png

The cost of the unit item also gets updated accordingly.

image.png.3f2a1f1733cb1700f07de9b8c665bfe8.png

The formula of how the new average cost is calculated is the following:

image.thumb.png.a7438c73b9b452fa483809c6004af8e0.png

 

 

That's all!

image.png

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