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Inventory Transactions

Track all stock movements and maintain a complete audit trail of your inventory changes.

What are Inventory Transactions?​

Every time stock levels change, a transaction is automatically created to record:

  • What changed - Product and quantity
  • When it changed - Date and time
  • Why it changed - Transaction type and reason
  • Who changed it - User who made the change
  • Reference - Related document or adjustment ID

Inventory Transactions

Transaction Types​

1. Purchase (Stock In) 📥​

When: New stock is received

Automatically created when:

  • Recording a purchase order receipt
  • Marking supplier invoice as received

Details recorded:

  • Purchase order number
  • Supplier reference
  • Quantity received
  • Unit cost
  • Total value

Example:

Type: Purchase
Product: Laptop - Dell Inspiron
Quantity: +10 units
Reference: PO-2024-001
Cost: ₹45,000 × 10 = ₹4,50,000
User: admin@company.com
Date: 20 Nov 2025, 10:30 AM

2. Sale (Stock Out) 📤​

When: Products are sold to customers

Automatically created when:

  • Invoice is created with products
  • Sales order is fulfilled
  • Delivery is marked as shipped

Details recorded:

  • Invoice number
  • Customer name
  • Quantity sold
  • Selling price
  • Profit margin

Example:

Type: Sale
Product: Laptop - Dell Inspiron
Quantity: -2 units
Reference: INV-2024-0523
Selling Price: ₹52,000 × 2 = ₹1,04,000
Cost: ₹45,000 × 2 = ₹90,000
Profit: ₹14,000
User: sales@company.com
Date: 20 Nov 2025, 2:15 PM

3. Adjustment (Manual Correction) ⚙️​

When: Manual stock corrections are needed

Reasons for adjustments:

  • Physical count differences
  • Damaged goods
  • Lost items
  • Found items
  • Data entry errors
  • Quality control rejections

Example:

Type: Adjustment
Product: Laptop - Dell Inspiron
Quantity: -1 unit
Reason: Damaged during shipping
Notes: "Screen cracked, unit unsellable"
User: warehouse@company.com
Date: 20 Nov 2025, 4:45 PM

4. Return (Customer/Supplier Return) 🔄​

When: Products are returned

Customer Returns (Stock In):

Type: Return (In)
Product: Laptop - Dell Inspiron
Quantity: +1 unit
Reference: RET-CUS-2024-012
Reason: Customer return - defective
Notes: "Keyboard issue, replaced"

Supplier Returns (Stock Out):

Type: Return (Out)
Product: Laptop - Dell Inspiron (Defective)
Quantity: -1 unit
Reference: RET-SUP-2024-005
Reason: Returning defective unit to supplier

5. Transfer (Location Change) 🚚​

When: Moving stock between locations

Example:

Type: Transfer
Product: Laptop - Dell Inspiron
Quantity: -5 units (from Warehouse A)
        +5 units (to Store B)
Reference: TRF-2024-089
Notes: "Restocking retail location"

Viewing Transactions​

Transaction List​

The transactions page shows:

ColumnDescription
Date/TimeWhen the transaction occurred
ProductProduct name and SKU
TypeTransaction type icon and label
QuantityAmount added (+) or removed (-)
ReferenceRelated document number
UserWho made the change
Stock AfterResulting stock level

Filtering Transactions​

Filter by:

Date Range:

- Today
- Last 7 days
- Last 30 days
- Custom date range

Transaction Type:

- All transactions
- Purchases only
- Sales only
- Adjustments only
- Returns only
- Transfers only

Product:

- All products
- Specific product
- Product category
- Low stock items

User:

- All users
- Specific user
- My transactions only

Transaction Details​

Click any transaction to view complete details:

Basic Information​

  • Transaction ID
  • Date and time (precise timestamp)
  • Transaction type
  • Status (completed, pending, cancelled)

Product Information​

  • Product name and SKU
  • Product category
  • Current stock level
  • Stock after this transaction

Quantity Information​

  • Quantity changed (+ or -)
  • Unit of measure
  • Value per unit
  • Total transaction value

Reference Information​

  • Reference document (invoice, PO, etc.)
  • Reference number
  • Link to source document

User Information​

  • User who created transaction
  • User role
  • IP address (for audit)
  • Device/location

Additional Notes​

  • Reason for transaction
  • Comments/notes
  • Approvals (if required)
  • Attachments

Automatic Transaction Creation​

From Invoices​

When you create an invoice with products:

  1. Invoice Saved as Draft

    • ✅ No inventory transaction created
    • ❓ Stock not affected yet

  2. Invoice Finalized

    • ✅ Sale transaction created automatically
    • 📤 Stock quantity reduced
    • 📊 Transaction recorded

  3. Invoice Cancelled

    • ✅ Reversal transaction created
    • 📥 Stock quantity restored
    • 📝 Both transactions visible in history

From Purchase Orders​

When receiving stock:

  1. PO Created

    • No inventory impact

  2. Goods Received

    • Purchase transaction created
    • Stock increased
    • Unit cost updated

  3. Partial Receipts

    • Multiple transactions created
    • One per receipt
    • Full audit trail

Manual Stock Adjustments​

Making an Adjustment​

  1. Navigate to Inventory → Items
  2. Find the product
  3. Click "Adjust Stock" button
  4. Enter adjustment details:

Adjustment Form:

Product: [Auto-filled]
Current Stock: [Display only]

Adjustment Type:
○ Add Stock (+)
○ Remove Stock (-)
○ Set Quantity (=)

Quantity: [Enter amount]

Reason:
○ Damaged
○ Lost/Stolen
○ Found/Discovered
○ Physical Count Correction
○ Quality Control
○ Other

Notes: [Required for Other]
  1. Click "Save Adjustment"
  2. Transaction is created immediately

Adjustment Examples​

Example 1: Damaged Goods

Type: Adjustment (Remove)
Quantity: -3 units
Reason: Damaged
Notes: "Water damage from roof leak"
Stock: 50 → 47 units

Example 2: Physical Count

Type: Adjustment (Set)
New Quantity: 48 units
Current: 50 units
Difference: -2 units
Reason: Physical Count Correction
Notes: "Annual inventory audit"

Example 3: Found Stock

Type: Adjustment (Add)
Quantity: +5 units
Reason: Found/Discovered
Notes: "Found in back storage area"
Stock: 47 → 52 units

Transaction History & Audit Trail​

Complete Audit Trail​

Every transaction provides:

  • Who - User identification
  • What - Product and quantity
  • When - Precise timestamp
  • Why - Reason and reference
  • Result - Before and after stock levels

Audit Reports​

Generate reports for:

Stock Movement Report

  • All transactions for date range
  • By product or category
  • By transaction type

User Activity Report

  • All transactions by specific user
  • Adjustments made
  • Time period analysis

Variance Report

  • Compare actual vs expected
  • Identify discrepancies
  • Shrinkage analysis

Best Practices​

Record Keeping​

Do:

  • ✅ Add detailed notes to manual adjustments
  • ✅ Use correct transaction types
  • ✅ Include reference numbers
  • ✅ Document reasons clearly

Don't:

  • ❌ Use generic reasons like "Other"
  • ❌ Skip notes on adjustments
  • ❌ Make adjustments without investigation
  • ❌ Delete transactions (contact admin)

Regular Reviews​

Daily:

  • Review today's transactions
  • Verify sales are recorded
  • Check for unusual adjustments

Weekly:

  • Analyze transaction patterns
  • Identify high-movement items
  • Review user activity

Monthly:

  • Generate variance reports
  • Investigate discrepancies
  • Reconcile with financial records

Quarterly:

  • Audit trail review
  • Physical inventory count
  • Process improvement review

Investigating Discrepancies​

When stock doesn't match expectations:

  1. Check Recent Transactions

    • Look at last 10 transactions
    • Verify quantities
    • Check transaction types

  2. Review Related Documents

    • Open linked invoices
    • Check purchase orders
    • Verify delivery notes

  3. Physical Verification

    • Count actual stock
    • Check storage locations
    • Look for misplaced items

  4. Make Correction

    • Create adjustment transaction
    • Document investigation findings
    • Implement preventive measures

Troubleshooting​

Transaction Not Created​

Problem: Sale completed but no transaction

Solutions:

  1. Check if invoice is finalized
  2. Verify product has inventory item
  3. Check inventory tracking is enabled
  4. Contact system administrator

Incorrect Quantity​

Problem: Transaction shows wrong quantity

Solutions:

  1. Create correcting adjustment
  2. Document original error
  3. Review process to prevent recurrence
  4. Don't try to delete the transaction

Missing Reference​

Problem: Transaction has no reference number

Solutions:

  1. Manual adjustments may not have references
  2. Check transaction notes for details
  3. Contact user who created transaction
  4. Add notes if information available

Next Steps​

Security Note: Transaction history is immutable. Corrections are made with new transactions, not by editing or deleting existing ones. This ensures complete audit compliance.