Inventory Module

Warehouse management, stock control, and inventory movements in iDempiere

The Inventory module in iDempiere provides comprehensive warehouse and stock management capabilities, from receiving goods through storage, movement, and shipment to customers.

Overview

iDempiere’s inventory management system tracks product quantities, locations, and movements in real-time across multiple warehouses. The system supports advanced features like serial and lot tracking, attribute management, and sophisticated inventory valuation methods.

Warehouse Management

Manage multiple warehouses with location hierarchies

Stock Movements

Track inventory receipts, issues, and transfers

Serial & Lot Tracking

Full traceability with serial numbers and lot batches

Physical Inventory

Conduct counts and reconcile stock levels

Warehouse Management

Organize your physical storage facilities with flexible warehouse structures.

Warehouse Structure

iDempiere supports multi-level warehouse organization:

• Warehouse - Top-level storage facility (e.g., “Main Warehouse”, “West Coast DC”)
• Locators - Specific storage locations within warehouses (e.g., “A-01-05” for Aisle A, Rack 01, Shelf 05)
• Default Locator - Primary location for product storage and picking
• Multiple Warehouses - Support for distributed inventory across locations

Creating Warehouses

1. Navigate to Warehouse

   Go to Material Management > Warehouse & Locators > Warehouse

2. Create Warehouse

   Click New and enter warehouse name, organization, and address details

3. Define Locators

   In the Locator tab, create storage locations using your naming convention

4. Set Default Locator

   Mark one locator as default for standard receipts and issues

5. Configure Replenishment

   Set up replenishment rules if using automatic stock replenishment

Locator Configuration

Organize storage locations logically:

• Aisle-Rack-Shelf - Traditional warehouse layout (e.g., A-12-03)
• Zone-Based - Organize by functional area (Receiving, Picking, Shipping)
• Relative Priority - Set picking priority for multi-locator products
• Dimension Tracking - Track X, Y, Z coordinates for automated systems

Use consistent locator naming conventions across warehouses to simplify training and reduce picking errors. For example: [Aisle][Rack][Level]-[Bin] = “A12-03-B”.

Product Management

Define products and their inventory characteristics.

Product Types

iDempiere distinguishes between product types:

• Items - Physical products tracked in inventory
• Services - Non-inventory items for labor or services
• Expenses - Expense items not tracked in stock
• Resources - Equipment, machinery, or facilities

Product Configuration

Key inventory-related product settings:

1. Create Product

   Navigate to Material Management > Product and create a new product

2. Set Product Type

   Select Item for inventory-tracked products

3. Enable Stocked

   Check Stocked to track inventory quantities

4. Configure Attributes

   Enable serial number, lot tracking, or guarantee days if needed

5. Set UOM

   Define unit of measure (each, box, kg, liter, etc.)

6. Define Storage

   Set minimum and maximum stock levels, shelf life, and storage requirements

Product Attributes

Extend products with custom attributes:

• Serial Number Control - Unique identifier for each unit
• Lot Control - Batch tracking for groups of products
• Guarantee Days - Warranty or shelf life tracking
• Instance Attributes - Color, size, grade, or custom attributes
• Attribute Sets - Groupings of related attributes

Inventory Movements

Track all inventory transactions with complete traceability.

Movement Types

iDempiere handles various inventory movement scenarios:

Material Receipt

Receive goods into inventory from vendors:

1. Navigate to Material Receipt

   Go to Material Management > Material Receipt

2. Create from Purchase Order

   Use Create From to generate receipt lines from a purchase order

3. Enter Receipt Quantities

   Confirm quantities received and adjust if necessary

4. Assign Serial/Lot Numbers

   For tracked products, assign serial numbers or lot batches

5. Complete Receipt

   Complete the document to update inventory and create accounting entries

Material Shipment

Ship goods to customers:

• Create from Sales Order - Generate shipments from confirmed orders
• Pick and Confirm - Select items from inventory locations
• Serial/Lot Selection - Choose specific units or lots to ship
• Shipment Completion - Update inventory and trigger invoicing

Movement

Transfer inventory between locations:

• Warehouse to Warehouse - Transfer between different facilities
• Locator to Locator - Reorganize within a single warehouse
• In-Transit Tracking - Monitor goods in transit between locations
• Movement Confirmation - Two-step process (initiate and confirm)

All inventory movements automatically update stock levels and create accounting postings for inventory value changes.

Internal Use

Record inventory consumed internally:

• Inventory Use - Consume materials for internal projects or operations
• Charge Assignment - Allocate costs to departments or projects
• Accounting Impact - Transfer from inventory to expense accounts

Serial & Lot Tracking

Implement full product traceability throughout the supply chain.

Serial Number Tracking

Track individual items with unique identifiers:

• Unique Identification - Each unit has a distinct serial number
• Complete History - Track from receipt through sale and service
• Warranty Management - Monitor warranty periods by serial number
• Field Service - Link service requests to specific units
• Recall Management - Quickly identify and locate affected units

Lot/Batch Tracking

Manage groups of products produced or received together:

• Lot Numbers - Group products by production batch or receipt
• Expiration Dates - Track shelf life and manage FEFO (First Expired, First Out)
• Lot Attributes - Custom attributes per lot (production date, quality grade)
• Traceability - Forward and backward tracking through the supply chain
• Quality Control - Hold or reject entire lots based on inspection results

Implementing Tracking

1. Enable on Product

   In the product definition, check Serial No or Lot control

2. Define Lot Control

   Set lot control to “None”, “Create”, or “Both” (create and select)

3. Set Serial No Control

   Choose when serial numbers are assigned (on receipt, shipment, or both)

4. Configure Guarantees

   Enter guarantee days for warranty or shelf life tracking

5. Assign on Transactions

   During receipts and shipments, specify serial numbers or lots

Once you enable serial or lot tracking on a product, you cannot disable it if any inventory transactions exist. Plan your tracking strategy carefully.

Physical Inventory

Perform stock counts and reconcile system inventory.

Inventory Count Process

1. Create Inventory Document

   Navigate to Material Management > Physical Inventory and create a new inventory

2. Generate Count List

   Use Create Inventory Count to generate lines for all products in a warehouse

3. Conduct Physical Count

   Count actual quantities and enter them in the Qty Count field

4. Review Differences

   System calculates differences between book and physical quantities

5. Complete Inventory

   Completing the document adjusts system quantities to match physical count

Count Strategies

Implement effective inventory counting:

• Full Physical Inventory - Count all items at period end
• Cycle Counting - Regular counting of subset of items
• ABC Analysis - Count high-value items more frequently
• Location-Based Counts - Count by warehouse area
• Serial Number Verification - Verify serial number locations

Inventory Adjustment

Make ad-hoc adjustments for corrections:

• Single Product Adjustments - Quick corrections for individual items
• Reason Codes - Track why adjustments were made (damage, theft, obsolescence)
• Approval Workflow - Require authorization for large adjustments
• Accounting Impact - Post to inventory adjustment accounts

Schedule cycle counts during slow periods and assign counting to staff familiar with the products and storage locations to improve accuracy.

Inventory Valuation

iDempiere supports multiple inventory costing methods.

Costing Methods

• Standard Cost - Fixed predetermined cost per unit
• Average Cost - Moving weighted average based on receipts
• FIFO (First In, First Out) - Cost based on oldest inventory
• LIFO (Last In, First Out) - Cost based on newest inventory
• Last PO Price - Cost equals last purchase order price

Cost Management

Maintain accurate product costs:

• Cost Updates - Manually adjust standard costs or let system calculate
• Cost History - Track cost changes over time
• Cost Elements - Separate material, overhead, and landed cost components
• Multi-Schema Costing - Different costing methods for different accounting schemas

Landed Costs

Allocate additional costs to inventory:

• Freight Charges - Add shipping costs to product cost
• Customs and Duties - Include import fees in landed cost
• Insurance - Allocate insurance costs
• Other Charges - Handling fees, storage, or other costs
• Allocation Methods - Distribute by quantity, weight, volume, or amount

Stock Levels & Replenishment

Maintain optimal inventory levels.

Min/Max Planning

Set stock level parameters:

• Minimum Level - Trigger point for replenishment
• Maximum Level - Target stock level after replenishment
• Reorder Quantity - Standard order quantity
• Safety Stock - Buffer for demand variability
• Lead Time - Days from order to receipt

Replenishment Methods

• Manual Replenishment - Create requisitions or orders manually
• Automatic Replenishment - System generates suggestions when min level reached
• MRP (Material Requirements Planning) - Calculate requirements based on demand
• Kanban - Pull-based replenishment signals

Stock Analysis

Monitor inventory health:

Stock on Hand Report

Current quantities by product and location

Stock Movement Report

Transaction history for analysis and auditing

Slow Moving Stock

Identify items with low turnover

Stock Valuation

Total inventory value by costing method

Inventory Reservations

Reserve inventory for specific orders or purposes.

Reservation Management

• Sales Order Reservation - Reserve stock for confirmed orders
• Automatic Reservation - Reserve when order is completed
• Manual Reservation - Explicitly reserve quantities
• Reservation Priority - Handle multiple demands for same inventory
• Unreserve - Release reservations if orders are cancelled

Available to Promise (ATP)

Calculate available inventory:

• On Hand Quantity - Physical quantity in stock
• Reserved Quantity - Committed to orders
• Ordered Quantity - Incoming from purchase orders
• Available - On hand minus reserved
• ATP - Available plus ordered

The ATP calculation considers current stock, reservations, and incoming receipts to give an accurate view of available inventory for new orders.

Inventory Reports

Generate insights from inventory data.

Standard Reports

• Inventory Status - Current quantities and values by warehouse
• Movement History - Detailed transaction log
• Valuation Report - Inventory value by product or category
• Serial/Lot Traceability - Track units through the system
• Aging Report - Identify old or obsolete stock
• ABC Analysis - Classify items by value and turnover

Reporting Dimensions

Analyze inventory from multiple perspectives:

• By Product - Individual SKU analysis
• By Product Category - Group analysis
• By Warehouse - Location-based inventory
• By Locator - Detailed location tracking
• By Lot/Serial - Batch and unit-level detail

Best Practices

Warehouse Organization

• Design locator systems that scale with growth
• Group fast-moving items near shipping areas
• Use barcode scanners to reduce entry errors
• Implement clearly labeled bin locations
• Train staff on locator naming conventions

Inventory Accuracy

• Perform regular cycle counts instead of annual full counts
• Investigate and correct discrepancies immediately
• Use serial/lot tracking for high-value or regulated items
• Implement count procedures during slow periods
• Assign inventory ownership to specific managers

Stock Control

• Set realistic min/max levels based on actual demand patterns
• Monitor slow-moving and obsolete inventory monthly
• Implement FIFO or FEFO picking for dated products
• Review and adjust reorder points quarterly
• Use ABC analysis to focus on high-value items

System Configuration

• Configure default locators for each warehouse
• Use movement documents for all transfers between warehouses
• Enable serial/lot tracking only when business value justifies complexity
• Set up proper accounting defaults for inventory transactions
• Test costing methods in development before production use

Related Modules

Purchasing

Procure inventory through purchase orders

Sales

Ship inventory to customers via sales orders

Manufacturing

Consume and produce inventory through production

Accounting

Track inventory value and cost of goods sold