Inventory Ma

What is Inventory Management?

Inventory management is the process of monitoring and maintaining purch
of disbursement as well as saving dead stock.

This process involves:

Managing proper purchase.
Proper Storage of products.
Proper Dispatching and reporting of products.
Monitoring Product-wise Sales.
Analyze the Stock movement.

Usually, small and medium-sized businesses use manual stocking tools to ma

or other spreadsheet software like Google Sheet and Open Office Calc.
Inventory Management templates vary for different business types such as R
Importance of Inventory Management

Inventory management plays a vital part role in any business. Improper inven
dead stock. Hence, it is necessary for any business to effectively manage the

Decrease Storage Costs

Excessive storage of inventory leads to extra costs on products and eventual
proper ordering system and hence save us from unnecessary storage costs.

Minimize Losses
Purchasing of excessive products can lead to higher dead stocks. Inventory t
Hence, it can save you from over-ordering the products.
Moreover, there are chances of theft by employees or handling staff. If a busi
save us from such losses.

Product Availability
In today’s competitive markets, a business must-have product availability, esp
execution can help easy product availability and customer acquisition.
Product Availability
In today’s competitive markets, a business must-have product availability, esp
execution can help easy product availability and customer acquisition.

Minimize Order Processing Time

Every e-commerce business has to maintain quick order processing time. Pro
Moreover, this helps to increase sales.

Manage Multiple Sales Channels

When a business sells products on multiple sales portals it demands a high le
and outward entries help you to manage multiple sales channels with ease.

Sales Forecasting
Outward inventory entries help us to define sales patterns. Furthermore, sale

Customer Satisfaction
Proper order execution and timely delivery of products lead to customer satis
Apart from the above business benefits, inventory management helps to defin
COGS as well as the cost of inventory. Thus it helps us in the finalization of a

Contents of Stock Inventory Management Template

Inventory Control Template design consists of two sections as follows: Heading Sectio
Heading Section
As usual, the first line here is the heading “Inventory Control Sheet”. A checkbox next
reordered will be highlighted.

Inventory Section
Inventory Control ID: Here you can put a unique alphanumeric ID for your pro

Product Detail: You can describe your product name under this subheading.

Quantity Purchased: Insert the Quantity of product purchased is entered here

Price/Unit: Price per Unit is entered here.

Quantity in Stock: Quantity in stock is derived by subtracting Quantity Sold fro

Quantity Purchased: Insert the Quantity of product purchased is entered here

Price/Unit: Price per Unit is entered here.

Quantity in Stock: Quantity in stock is derived by subtracting Quantity Sold fro

Value Stock in Hand: Value of Stock in Hand is derived by multiplying Stock in

Reorder Level: You have to input a level for Reorder. This will indicate to us ab
In the Heading Section, a highlight checkbox is there. If you tick that checkbox

Reorder Quantity: Reorder Quantity can be entered according to the sale of th

pattern.

Quantity Sold: Daily sales of each day will be entered here, which will give you

Discontinued Product: Here you have to enter “Yes” if and only if the product i
row with a strike-through line.

Price/Unit: Mention Price per Unit here to calculate the value of the stock with

Value of Stock WIthout VAT: Value of Stock without VAT also has a predefined

5% VAT: This cell will calculate only the amount of 5 % VAT. Formula: Value of

Value of Stock Including VAT: Value of Stock = Value of Stock without VAT + A

Reorder Level: Reorder level means a limit of the product below which if the s
Hence, define a level for Reorder. It will highlight the row if a product stock is b
of goods.
As we discussed earlier, there is a checkbox in the header section. If the chec
highlighted.

Reorder Quantity: Reorder quantity is the number of products to be ordered. Y

or vary according to the sales pattern.

Discontinued Product: Many times it happens that there are some products w
It might also happen that it might be a special edition and discontinued by the
If you enter “yes” against any such product in these cells, it will display a strike
discontinued.
It might also happen that it might be a special edition and discontinued by the
If you enter “yes” against any such product in these cells, it will display a strike
discontinued.
entory Management System
maintaining purchase, sales, and stock of goods to ensure the availability of supply at t

stocking tools to manage their inventory. Most of these manual stocking tools are made
n Office Calc.
ss types such as Retailers/wholesalers, Hotels, Real Estate, etc.

ss. Improper inventory management leads to a loss in the form of customer loss as well
ctively manage the supply channel from warehousing to the fulfillment of orders.

ducts and eventually lead to additional expenses. Inventory management helps us to de

ary storage costs.

stocks. Inventory tracking helps the business to know the fast-moving products of a bus

dling staff. If a business manages timely checks and recounting of products regularly, it c

duct availability, especially in the e-commerce business. Proper re-ordering system and t
acquisition.
duct availability, especially in the e-commerce business. Proper re-ordering system and t
acquisition.

rocessing time. Proper inventory management leads to decrease the processing time.

demands a high level of accuracy to keep products available on every channel. Proper
annels with ease.

Furthermore, sales patterns from previous months or years help us to forecast sales.

d to customer satisfaction. This customer satisfaction helps in building your product bran
ment helps to define the COGS. To prepare the P&L account, businesses require to def
he finalization of accounts.

lows: Heading Section and Inventory Section.

et”. A checkbox next to the heading has been designed. If we check this box then all the items t

eric ID for your products as given in the worksheet “ABC001”.

this subheading.

ed is entered here.

g Quantity Sold from Quantity Purchased.

 ed is entered here.

g Quantity Sold from Quantity Purchased.

multiplying Stock in hand with Price/Unit.

will indicate to us about reordering the product if a product stock is below that limit.
u tick that checkbox, the product below the reorder level will be automatically highlighted

ing to the sale of the desired product. It can either be predefined or vary according to th

which will give you an exact inventory status of the product.

only if the product is discontinued by your supplier. Typing “Yes” here will change the da

ue of the stock without VAT.

o has a predefined formula. The formula applied here is Stock in Hand X Price /Unit.

. Formula: Value of Stock without VAT X 5%.

ck without VAT + Amount of 5 % VAT.

below which if the stock goes the sheet must provide indications.
a product stock is below that limit it. Thus we can reorder the product to prevent the una

section. If the checkbox is checked, the product below the reorder level will be automati

cts to be ordered. You can set it according to the sale of the product. It can either be pre

e some products whose sale has been stopped and we don’t buy them.
iscontinued by the supplier.
will display a strike-through line upon the values, indicating that the product has been
iscontinued by the supplier.
will display a strike-through line upon the values, indicating that the product has been
ability of supply at the time

ng tools are made in Excel

stomer loss as well as

t of orders.

ment helps us to define the

g products of a business.

oducts regularly, it can

ering system and timely

 ering system and timely

processing time.

ry channel. Proper inward

o forecast sales.

g your product brand.

sses require to define

x then all the items to be

 ow that limit.
atically highlighted

ary according to the sales

will change the data in the

d X Price /Unit.

to prevent the unavailability

vel will be automatically

It can either be predefined

m.

product has been

product has been
 Check this Box to

Inventory Register ✘
Highlight Items to
reorder
Tips :-
1. To Calculate Quantity in Stock = Quantity Purchased - Quantity Sold
2. To Calculate Value Stock in Hand = Price/Unit * Quantity in Stock
Inventory Product Detail Quantity Price/Unit Quantity in Value Stock in Reorder Reorder Quantity Discontinued
Control ID Purchased Stock Hand Level Quantity Sold Product
Col
ABC001 Product 1 100 ₹ 100.00 50 ₹ 50.00 25 100 50
ABC002 Product 2 50 ₹ 200.00 25 ₹ 6.25 50 50 25
ABC003 Product 3 50 ₹ 250.00 0 ₹ 0.00 25 50 50
ABC004 Product 4 50 ₹ 500.00 0 ₹ 0.00 50 50 50
3.Give the Databars in Price/Unit and Icon Set in Quanity Purchased
ABC005 Product 5 100 ₹ 110.00 52 ₹ 47.27 25 100 48
ABC006 Product 6 100 ₹ 120.00 75 ₹ 62.50 50 100 25
4.Create a Clustered Chart of Quantity Purchased and Price/Unit
ABC007 Product 7 100 ₹ 150.00 50 ₹ 33.33 25 100 50
ABC008 Product 8 50 ₹ 135.00 0 ₹ 0.00 50 50 50 5.Create any visual of Reorder level and Reorder Quanity
ABC009 Product 9 100 ₹ 110.00 50 ₹ 45.45 25 100 50
ABC010 Product 10 100 ₹ 100.00 65 ₹ 65.00 50 100 35 6.Create a Pareto Visual or Line chart of Reorder Level , Reorder
ABC011 Product 11 100 ₹ 200.00 50 ₹ 25.00 25 100 50 Quanity
ABC012 Product 12 100 ₹ 110.00 50 ₹ 45.45 50 100 50 and Quanity Sold
ABC013 Product 13 100 ₹ 250.00 50 ₹ 20.00 25 100 50
ABC014 Product 14 50 ₹ 350.00 0 ₹ 0.00 50 50 50
ABC015 Product 15 100 ₹ 400.00 50 ₹ 12.50 25 100 50
ABC016 Product 16 100 ₹ 150.00 50 ₹ 33.33 25 100 50
ABC017 Product 17 100 ₹ 135.00 50 ₹ 37.04 25 100 50 Yes
ABC018 Product 18 100 ₹ 170.00 50 ₹ 29.41 25 100 50
ABC019 Product 19 100 ₹ 125.00 50 ₹ 40.00 50 100 50
ABC020 Product 20 100 ₹ 180.00 50 ₹ 27.78 25 100 50
ABC021 Product 21 100 ₹ 230.00 50 ₹ 21.74 50 100 50
ABC022 Product 22 100 ₹ 220.00 50 ₹ 22.73 25 100 50
ABC023 Product 23 100 ₹ 100.00 2 ₹ 2.00 50 100 98 Yes
ABC024 Product 24 100 ₹ 250.00 50 ₹ 20.00 25 100 50
ABC025 Product 25 50 ₹ 110.00 0 ₹ 0.00 25 50 50
 Quanti ty Purchased and Price/Unit
600

500

400

Quantity Purchase
300 Price/Unit

200

100

0
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
B C0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0 BC0
A A A A A A A A A A A A A A A A A A A A A A A A A
nit

Quantity Purchased
Price/Unit

3 24 25
C0 C0
AB AB
 Reorder level and Reorder Quanity
160
140
120
100
Reorder Quantity
80 Reorder Level
60
40
20
0
1 3 5 7 9 1 3 5 7 9 1 3 5
C00 C00 C00 C00 C00 C01 C01 C01 C01 C01 C02 C02 C02
AB AB AB AB AB AB AB AB AB AB AB AB AB
order Quantity
order Level
 Reorder Level,Reorder Quantity
& Quantity Sold
300

250

200

150

100

50

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
eorder Quantity
tity Sold

Quantity Sold
Reorder Quantity
Reorder Level

17 18 19 20 21 22 23 24 25