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InventoryOverview

Inventory Management Overview

The Sevenledger Inventory is the engine that powers your business’s physical operations. It is not just a list of products; it is a fully integrated system that links your Purchases (money out) with your Sales (money in), ensuring that your financial reports always reflect the reality of your warehouse.

How it works

Inventory in Sevenledger follows a “Double-Entry” philosophy. Every item has a source and a destination, meaning stock is never created or destroyed without a transaction record.

The Inventory Lifecycle

  1. Acquisition: Stock enters the system via Warehouse Transfers (IN) or Opening Stock entries.
  2. Storage: Stock is held in specific Warehouses. You can move items between locations using Transfers.
  3. Sales: When a Warehouse Transfer is validated, stock is automatically deducted from the inventory.
  4. Correction: If discrepancies occur (damage, theft, counting errors), Stock Adjustments are used to reconcile the count.

Key Capabilities

  • Multi-Warehouse Support: Manage stock across different physical branches (e.g., Kathmandu Store, Pokhara Warehouse) and track transfers between them.
  • Variant Management: Handle complex products with attributes like Size, Color, or Material (e.g., a T-Shirt available in S, M, L).
  • Real-Time Valuation: Know exactly how much capital is tied up in stock using automated valuation reports.
  • Unit Conversion: Buy in bulk (Cartons) and sell in retail (Pieces) with automatic conversion logic.

Terminology

To use the system effectively, it helps to understand the specific language used in Sevenledger:

TermDefinition
SKU(Stock Keeping Unit) A unique code used to identify a specific product.
VariantA specific version of a product (e.g., “Blue” vs “Red”) that shares a common parent item.
AdjustmentA manual correction to stock levels used to fix discrepancies (not a sale or purchase).
TransferMoving goods from one internal warehouse to another.
On HandThe physical quantity sitting on the shelf.
ForecastedThe quantity you will have after pending Purchase Orders arrive and Sales Orders are shipped.

Next Steps

Now that you understand the concepts, you are ready to configure your environment.

→ Go to Getting Started Guide

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