Inventory Management

The right product, at the right time, in the right place - manage your stock intelligently

Inventory Management

The right product, at the right time, in the right place - manage your stock intelligently

What You Will Learn in This Section

  • How inventory management affects profitability
  • Product types, variants and traceability
  • Running warehouse operations efficiently
  • Optimising stock levels and creating reordering rules
  • Carrying out inventory counts and adjustments

Introduction: The Power of Stock Control

Imagine walking into a shop and the product you want is not on the shelf. Or ordering from an online store and getting a "Product out of stock" message... How do you feel as a customer?

Now look at it as the business owner: products that have not sold for years sit in the warehouse, tying up your capital. Or the opposite - your best seller runs out and customers go to a competitor...

Inventory management is finding and keeping the balance between these two extremes:

How to Do It in PORTWARE

Opening the Inventory app:

  1. Click the Apps icon in the main menu
  2. Choose the Inventory app
  3. The Inventory Overview screen opens - pending operations are shown here

Viewing stock for the first time:

  1. Go to Inventory Reporting Stock
  2. By default the stock in every location is shown
  3. From the Group By drop-down you can choose "Product", "Location" or "Lot/Serial Number"
  4. Use the search bar at the top to find a specific product

View options:

  1. List - a detailed table view
  2. Kanban - operation states as cards
  3. Pivot - multi-dimensional stock analysis
  4. Graph - a visual stock breakdown

Why Inventory Management?

Scenario: A Company Tracking Stock in Excel

Situation: Mr Mehmet runs a distribution company selling 500 products and tracks stock in Excel. One day he promises a customer 100 units of product "ABC-123". On shipping day the warehouse lead says: "We only have 20 of these - the Excel number is wrong!"

  1. Result: an apology to the customer; the order ships half-complete
  2. Real cost: a lost customer + damaged reputation + the cost of urgent supply
  3. Root cause: entries were not made in Excel on time; physical stock and records did not match

What Changes with PORTWARE Inventory?

Real-Time Stock

Stock is updated the moment each sale or purchase happens. The answer to "how many do we have right now?" is always correct.

Automatic Alerts

When stock falls to the minimum, the system notifies you automatically. No more "out of stock" surprises.

Barcode Integration

Scan products with a handheld terminal or phone and act at once. Cut manual entry errors to zero.

Traceability

Track where every product came from, where it went and which lot it belongs to. A recall? Done in minutes.

Key Concepts

To understand inventory management, let us first learn the basic terms. You will meet them in every stock operation in PORTWARE:

Concept Definition Example
On Hand Stock
(On Hand)		 The total quantity physically in the warehouse 150 pens on the shelf
Reserved Stock
(Reserved)		 The quantity set aside for orders, waiting to ship 50 units reserved for customer X
Available Stock
(Available)		 The quantity free for new orders (On Hand - Reserved) 100 units available for a new order
Forecasted Stock
(Forecasted)		 The expected future stock (+ pending receipts - pending deliveries) 200 units arrive next week, 50 go out → it will be 250
Location
(Location)		 The physical or virtual place of the product Warehouse A / Shelf 3 / Bin B
Transfer
(Transfer)		 A stock move from one location to another Goods receipt → Main warehouse
The difference between On Hand and Available is critical! Even if on-hand stock shows 100, if 80 are reserved for other orders you can promise a new customer only 20.

Product Types

Every product in PORTWARE has a "type". The product type decides how the system tracks it:

Storable Product

When to use it: every product you physically keep in the warehouse and whose stock level you must track.

Examples: electronics, clothing, furniture, raw materials

System behaviour: the stock quantity is tracked and a warning appears when stock is short

Consumable Product

When to use it: products that need no stock tracking and are always assumed to be "there".

Examples: office supplies, cleaning products, small consumables

System behaviour: can be sold or used; the stock quantity is not checked

Service

When to use it: non-physical products that cannot be stocked.

Examples: consulting, installation, training, transport

System behaviour: no stock concept; sold and invoiced directly

If you make a product "Consumable" instead of "Storable", its stock cannot be tracked! Choose the product type correctly from the start; changing it later can be complicated.
Inventory Dashboard

Inventory dashboard - stock status and operations summary

Inventory Module

Product detail page - the form view and properties of a storable product

How to Do It in PORTWARE

Creating a new product:

  1. Go to Inventory Products Products
  2. Click the New button
  3. Enter the product name in the Product Name field
  4. Product Type drop-down, choose:
    • Storable Product: Products that need physical stock tracking
    • Consumable: supplies that need no stock tracking
    • Service: non-physical services
  5. On the General Information tab enter the Sales Price and Cost
  6. Switch to the Inventory tab and fill in the Weight and Volume
  7. Create the product with Save

Adding a barcode:

  1. On the product form go to the Inventory tab
  2. Enter the EAN-13 or other barcode number in the Barcode field
  3. Alternatively, click the icon and scan it with the camera
Product Creation Form

Creating a new product - name, type and basic information

Product Variants

Instead of opening a separate product card for each version of the same product, you can use variants. This makes catalogue management much easier.

Example: Selling T-shirts

Product: Basic T-shirt

  1. Colour variant: White, Black, Navy, Red (4 options)
  2. Size variant: S, M, L, XL, XXL (5 options)
  3. Total combinations: 4 × 5 = 20 different variants
  4. Advantage: one product card, 20 separate stock counts

Advantages of using variants:

How to Do It in PORTWARE

Enabling product variants:

  1. Go to Inventory Configuration Settings
  2. Enable Product Variants in the Variants section
  3. Click the Save button

Defining attributes and variants:

  1. Go to Inventory Configuration Attributes
  2. Create an attribute with New (e.g. "Colour", "Size")
  3. Add the options in the Values section (Red, Blue, Green...)
  4. On the product go to the Attributes & Variants tab
  5. Link the attributes with Add a line
  6. The variants are created automatically when you save

Checking variant stock:

  1. Click the Variants smart button on the product form
  2. The stock quantity of each variant is shown separately
  3. Click a variant to edit its Barcode and Cost

Units of Measure (UoM)

Products can be bought and sold in different units. PORTWARE converts between them automatically:

Example: Selling Paper

Product: A4 copy paper

  1. Purchase unit: Box (5 reams = 2,500 sheets)
  2. Stock unit: Ream (500 sheets)
  3. Sales unit: Sheet or Ream
  4. Conversion: when 1 box is received, the system adds 5 reams to stock
Unit Category Examples Used For
Units Unit, Dozen, Box, Pallet Countable products
Weight Gram, Kilogram, Tonne Food, raw materials, chemicals
Length Metre, Centimetre, Kilometre Fabric, cable, pipe
Volume Litre, Millilitre, Cubic metre Liquids, gas
Time Hour, Day, Month Services, rentals
Receipt Additional Info - Units of Measure

Receipt additional information - product details, units of measure and lot/serial number information

Traceability

Traceability is the ability to answer "where did this product come from, and where did it go?". It is critical for food, medicine and high-value products.

Lot Number (Batch Tracking)

Groups products from the same production batch. When a quality problem appears you can recall just that batch.

Food Industry

Lot: 20240115-B03

Meaning: produced on 15 January 2024, line B, third shift

Use: expiry date tracking, recalls

Pharmaceutical Industry

Lot: XYZ-2024-0547

Meaning: manufacturer code + year + sequence number

Use: integration with the national drug tracking system (İTS)

Serial Number (Unit Tracking)

Gives every single unit of a product a unique identity. Used for warranty tracking, valuable products and anything that needs unit-level traceability.

Example: Selling Computers

Product: Laptop

  1. Serial No: SN-2024-ABC123456
  2. Sale: sold to Ahmet Yılmaz on 15 January 2024
  3. Warranty: a 2-year warranty, until 15 January 2026
  4. Service: screen replaced 3 months later (on record)
  5. Benefit: when the customer calls, the whole history is visible at once

How to Do It in PORTWARE

Enabling lot/serial number tracking:

  1. Go to Inventory Configuration Settings
  2. Enable Lots & Serial Numbers in the Traceability section
  3. Save

Assigning lot/serial tracking to a product:

  1. Open the product form and go to the Inventory tab
  2. Tracking field, choose:
    • No Tracking: Traceability is off
    • By Lots: batch-level tracking (food, medicine)
    • By Unique Serial Number: a separate number for each unit (electronics)
  3. Save - from now on this product asks for a lot/serial number at receipt and shipping

Creating and viewing lots:

  1. Go to Inventory Products Lots/Serial Numbers
  2. Every existing lot and serial number is listed
  3. Click a lot and use the Traceability button to see all its moves
  4. During goods receipt a new lot can be added with Create

Expiry Date

Critical for perishable products. PORTWARE warns automatically about products nearing expiry and, with the FEFO (First Expired, First Out) strategy, ships the product that expires first.

Date Type Description System Behaviour
Expiration The date after which the product must not be used Sales are closed after this date
Best Before The optimal quality date Shown to the customer for information
Alert Date The date that needs attention A warning is sent the set number of days in advance
Removal Date The date to take it off the shelf Flagged for an inventory adjustment

Warehouse Structure

In PORTWARE the warehouse structure is hierarchical. Understanding it is the basis of managing stock moves:

1 Warehouse → 2 Zone → 3 Aisle → 4 Shelf → 5 Position

Location Types

Location Type Description Example
Internal Physical storage areas WH/Stock, WH/Shelf-A3-B2
Customer The virtual location of shipped products Partners/Customers
Vendor The source location of received products Partners/Vendors
Transit An intermediate location for transfers between warehouses Inter-Warehouse Transit
Scrap Products that have become unusable Virtual/Scrap
Production A virtual location for production consumption Virtual/Production
Location naming tip: Use the format "Warehouse Code / Zone / Aisle-Shelf-Level". Example: "WH-A/Zone1/A3-R2-L1" = Warehouse A, Zone 1, Aisle A3, Shelf 2, Level 1
Receipts kanban

Receipts as cards — each receipt's status and scheduled date

How to Do It in PORTWARE

Creating a new warehouse:

  1. Go to Inventory Configuration Warehouses
  2. Click the New button
  3. Enter the Warehouse Name (e.g. "Main Warehouse", "Istanbul Branch")
  4. Enter the Short Name (e.g. "WH", "IST") - it is used in location codes
  5. Choose or create the warehouse address in the Address section
  6. Save - the system creates the locations automatically

Creating a sub-location (shelf/bin):

  1. Go to Inventory Configuration Locations
  2. Add a location with New
  3. Enter the Location Name (e.g. "Shelf-A1-B2")
  4. Choose the main location in the Parent Location field (e.g. "WH/Stock")
  5. Choose "Internal Location" as the Location Type
  6. Optional: add a Barcode to label the shelf

Configuring warehouse operation flows:

  1. Open the warehouse form and go to the Warehouse Configuration tab
  2. Incoming Shipments field, choose the number of steps:
    • 1 step: Straight into stock (simple)
    • 2 steps: input area + move to stock (controlled)
    • 3 steps: input + quality control + stock (full control)
  3. Set the number of steps for Outgoing Shipments the same way

The Goods Receipt Process

Goods receipt is how products enter the warehouse. Doing it correctly is critical for stock accuracy.

Receipts Main Screen

Receipts - pending goods receipt operations and their states

Goods Receipt Flows

One Step (Simple)

Flow: Vendor → Stock

When: small businesses, warehouses that need to move fast

Advantage: fast, few operations

Disadvantage: quality control can be skipped

Two Steps (Controlled)

Flow: Vendor → Input Area → Stock

When: products that need a quality check

Advantage: room for a check

Disadvantage: an extra operation step

Three Steps (Full Control)

Flow: Vendor → Input → Quality Control → Stock

When: critical products, strict quality standards

Advantage: full traceability and control

Disadvantage: the slowest flow

Scenario: Goods Arrive from the Vendor

Situation: you ordered 100 units of product A and 50 of product B from vendor XYZ. The truck is at the door.

  1. Document check: compare the delivery note with the order
  2. Physical count: count what arrived (100 A and 48 B)
  3. System entry: open the "Receipt" in PORTWARE and enter the actual quantities
  4. Note the shortfall: 2 units of product B are missing; add a note in the system
  5. Confirmation: validate the receipt; stock is updated
  6. Tell the vendor: inform the vendor about the shortfall
New Receipt

New receipt form - starting a goods receipt from a vendor

Receipt form

A receipt's form — vendor, scheduled date, source document and operation lines

How to Do It in PORTWARE

Viewing pending receipts:

  1. Go to Inventory Operations Transfers
  2. Filter on Type = "Receipt"
  3. Or click the "Receipts" tile on the Inventory Overview screen
  4. Pending transfers appear in the Ready state

Processing a receipt:

  1. Click the pending receipt transfer
  2. The expected quantities appear in the Demand column
  3. Enter the quantity actually received in the Quantity column
  4. If lots/serials are tracked, click the icon and enter the lot details
  5. After checking every line, click the Validate button
  6. If something is short or over, the system warns you - choose Create Backorder or No Backorder

Fast goods receipt with barcodes:

  1. Click the Barcode button on the transfer form
  2. Scan the product barcode with a barcode reader or the phone camera
  3. Each scan increases the product's quantity by 1
  4. If a lot is required, scan the lot barcode too
  5. Finish with Enter

Putaway Rules

Putaway rules decide automatically which location incoming products go to. Good putaway directly affects picking efficiency.

Rule Type Description Example
By Product Category A product category is sent to a given area Electronics → Aisle A, Food → Cold Store
Product-Specific A given product is sent to a given shelf iPhone 15 → location A3-R1-L2
By Storage Condition Routing by conditions such as temperature and humidity Needs cold storage → Cold Room
By ABC Class Positioning by movement speed Class A (fast movers) → shelves near the exit

Picking Methods

Picking is taking ordered products out of the warehouse. The right method can raise warehouse efficiency by 30-50%.

Order-Based (Discrete)

How: a separate pick for each order

Advantage: simple, low risk of error

Disadvantage: a lot of walking, low efficiency

Ideal for: few orders, large orders

Batch

How: several orders are picked at once

Advantage: less walking, high efficiency

Disadvantage: sorting is needed

Ideal for: many orders, shared products

Zone

How: each picker picks from their own zone

Advantage: specialisation, parallel work

Disadvantage: coordination is needed

Ideal for: large warehouses, many pickers

Wave

How: orders are released in waves

Advantage: a planned flow, capacity management

Disadvantage: complex planning

Ideal for: high-volume operations

All transfers

All transfers — receipts, deliveries and internal moves in one list, with their status

How to Do It in PORTWARE

Viewing the pick list:

  1. Go to Inventory Operations Transfers
  2. Filter: Type = "Delivery Orders" or "Pick"
  3. Alternatively: Inventory Overview → the "Delivery Orders" tile

Picking:

  1. Click the pending delivery order
  2. The Source Location column shows where to take the product from
  3. Enter the picked quantity in the Quantity column
  4. To pick from several locations, use Detailed Operations
  5. When done, Validate

Batch picking:

  1. Select several transfers in the delivery orders list (checkbox)
  2. Choose Action Add to Batch
  3. The system groups shared products so you can pick them in one pass
  4. After picking, split them across the orders in the sorting area

Removal Strategies

When there is more than one lot or location of the same product, the strategy decides which goes out first:

Strategy Description When to Use It
FIFO
(First In, First Out)		 The oldest stock goes out first The default, suits most products
LIFO
(Last In, First Out)		 The newest stock goes out first Stacked storage (the top one is taken)
FEFO
(First Expired, First Out)		 The stock with the nearest expiry date goes out first Food, medicine, cosmetics - perishable products
Closest Location The stock nearest the exit goes first To minimise picking time

Shipping

Shipping is sending products from the warehouse to the customer. Accurate, on-time delivery is the foundation of customer satisfaction.

Shipping Flows

1 Order Confirmation → 2 Stock Reservation → 3 Picking → 4 Packing → 5 Shipping

Delivery Methods

Method Pricing Use
Fixed Price The same price for every delivery Simple, predictable
Weight-Based A charge per kg Heavy products
Volume-Based A charge per volumetric unit (m³) Bulky but light products
Carrier Integration Real-time prices via API FedEx, DHL, UPS, Yurtiçi, MNG

Related Module: Sales

Shipping is triggered by the sales order. The delivery status is shown on the sales screen.

Go to the Sales Module Documentation →

How to Do It in PORTWARE

Defining a delivery method:

  1. Go to Inventory Configuration Delivery Methods
  2. Create a method with New
  3. Enter the Name (e.g. "Standard Shipping", "Express Delivery")
  4. Provider field, choose the pricing type:
    • Fixed Price: The same charge for every delivery
    • Based on Rules: calculated by weight, volume or price
  5. Fill in the Delivery Fee or the rule table

Completing the shipment:

  1. Open the delivery order (picking must be done)
  2. Confirm the shipment with Validate
  3. Use the Print menu to print the delivery slip
  4. With a carrier integration the tracking number comes in automatically

Package management:

  1. Click the Put in Pack button on the delivery form
  2. Choose a package type (box, envelope, pallet...)
  3. Spread the products over several packages if needed
  4. The weight and dimensions of each package are recorded

Reordering Rules

Reordering rules create a purchase request or manufacturing order automatically when stock falls to a given level.

Example: Automatic Reordering

Product: printer cartridge

  1. Minimum stock: 10 units (the rule triggers at this level)
  2. Maximum stock: 50 units (stock is topped up to this level)
  3. Multiple quantity: multiples of 10 (10, 20, 30...)
  4. Lead time: 5 days
  5. Result: when stock falls to 10, a purchase request for 40 units is created

How to Do It in PORTWARE

Creating a reordering rule:

  1. Go to Inventory Configuration Reordering Rules
  2. Create a rule with New
  3. In the Product field choose the product the rule applies to
  4. As the Location, choose the warehouse/location it applies to
  5. Enter the Min Quantity - the rule triggers at this level
  6. Enter the Max Quantity - the target stock level
  7. Optional: round the order quantity with the Multiple Quantity (e.g. multiples of 10)
  8. Save

Running automatic replenishment:

  1. Go to Inventory Operations Run Scheduler
  2. The system checks every rule and creates the purchase/manufacturing requests needed
  3. The requests appear under Purchase Requests or Manufacturing Manufacturing Orders
  4. Tip: you can have the scheduler run it automatically

Adding a rule quickly from the product:

  1. Open the product form
  2. Click the Reordering Rules smart button
  3. Add a rule for that product directly with New

Rule Parameters

Parameter Description Effect
Minimum Stock The reorder trigger point Low = risk of running out, High = ordering early
Maximum Stock The target stock level Low = frequent orders, High = fewer orders but more stock
Multiple Quantity Order quantity multiples Matches the vendor's minimum order or a pallet
Lead Time Time from order to delivery Critical for planning; affects the minimum stock

Safety Stock

Safety stock is a buffer against swings in demand and supply delays.

Safety Stock Formula: Safety Stock = (Maximum Daily Sales × Maximum Lead Time) - (Average Daily Sales × Average Lead Time)

Factors that affect safety stock:

Demand Forecasting

Forecasting future demand from past sales is the basis of stock optimisation.

Seasonality

Demand rises or falls at certain times of the year. Example: winter clothing picks up in September.

Trend

A long-term upward or downward tendency. Example: smartphone sales grow 10% every year.

Random Fluctuation

Unpredictable short-term changes. Covered by safety stock.

Inventory Adjustment

Correcting the differences between a physical count and the system records. Doing it regularly keeps stock accurate.

Scenario: A Stock Count

Situation: the month-end stock count is under way. The system shows 100 units of product "ABC-123".

  1. Physical count: 97 units were counted in the warehouse
  2. Difference: 3 units short (-3)
  3. Find the cause: possible causes - theft, a recording error, damage
  4. Correction: update the quantity to 97 on the Inventory Adjustment screen
  5. Note: record the reason for the difference in the system (for audit)
  6. Confirmation: apply the adjustment; stock becomes 97

How to Do It in PORTWARE

Starting a stock count:

  1. Go to Inventory Operations Physical Inventory
  2. Start a count with New
  3. Choose the areas to count in the Locations field
  4. Set the products to count in the Products field (leave it empty for all products)
  5. Click the Start Count button

Entering the count results:

  1. Every product line appears on the count form
  2. Enter the physical count in the Counted Quantity column
  3. The system calculates the difference automatically (the Difference column)
  4. If lots/serials are tracked, enter the details with
  5. When done, confirm with Apply
  6. Stock quantities are updated automatically

Quick stock update for a single product:

  1. Open the product form
  2. Click the On Hand smart button
  3. Locations and quantities are shown
  4. Correct the quantity with the Update button

Cycle Counting

Instead of a full annual inventory, counting continuously and periodically. Prioritised with ABC analysis:

Class Definition Count Frequency Typical Share
Class A High value, fast moving Weekly or monthly 20% of products, 80% of value
Class B Medium value Quarterly 30% of products, 15% of value
Class C Low value, slow moving Once a year 50% of products, 5% of value

Scrap Management

Removing damaged, spoiled or unusable products from stock.

Scrapping cannot be undone! The product moves to the "Scrap" location and leaves stock. A product scrapped by mistake needs an inventory adjustment.

Common reasons for scrap:

How to Do It in PORTWARE

Scrapping a product:

  1. Go to Inventory Operations Scrap
  2. Create a scrap record with New
  3. Choose the product to scrap in the Product field
  4. Enter the Quantity
  5. If lots/serials are tracked, choose the Lot/Serial Number
  6. Set the Source Location the product is taken from
  7. The Scrap Location defaults to "Virtual/Scrap"
  8. Click the Scrap button

Scrapping during a transfer:

  1. Open the receipt or delivery transfer
  2. If you find a damaged product while checking, click the Scrap button
  3. Enter the quantity to scrap
  4. The transfer is updated automatically

Stock Valuation

Stock valuation is how the financial value of your inventory is determined. It is critical for accounting and tax reporting.

Method Description Advantage / Disadvantage
Standard Cost A fixed unit cost is assigned to each product ✓ Simple, predictable
✗ Ignores price changes
FIFO The cost of the first purchase is used first ✓ Reflects the real cost
✗ Complex to calculate
Weighted Average (AVCO) The average of all purchases is calculated ✓ Smooths out swings
✗ No exact traceability

Related Module: Accounting

Stock valuation flows into the accounts automatically. The Cost of Goods Sold (COGS) is calculated.

Go to the Accounting Module Documentation →

How to Do It in PORTWARE

Setting the valuation method:

  1. Go to Inventory Configuration Product Categories
  2. Open the category (or create a new one)
  3. Costing Method field, choose:
    • Standard Price: A fixed unit cost
    • FIFO: first in, first out (real cost)
    • Average Cost (AVCO): weighted average
  4. Inventory Valuation field, choose the accounting integration:
    • Manual: No accounting entries are created
    • Automated: every stock move is posted to accounting

Viewing the valuation report:

  1. Go to Inventory Reporting Valuation
  2. The quantity, unit cost and total value of each product are shown
  3. Use the Date filter to value stock at a past date
  4. Download the report with Export to Excel

Reports

PORTWARE Inventory offers comprehensive reports for operational decisions:

Stock Report

Current stock - quantity and value by product, location and lot.

Forecasted Stock

A projection of future stock - pending receipts and sales included.

Moves History

A chronological list of every stock move - who, when, how many.

Valuation Report

The financial value of stock - calculated by costing method.

How to Do It in PORTWARE

Viewing the stock report:

  1. Go to Inventory Reporting Stock
  2. By default the current stock of every product is shown
  3. From the Group By menu you can choose "Product", "Location" or "Category"
  4. Filtering: type a product name or code in the Search bar
  5. Download the report with Export to Excel

Viewing the moves history:

  1. Go to Inventory Reporting Moves History
  2. Every incoming, outgoing and transfer move is listed chronologically
  3. For a specific product: click the Moves button on the product form
  4. Apply a date range filter

Viewing forecasted stock:

  1. Open the product form
  2. Click the Forecasted smart button
  3. The future stock projection is shown as a chart
  4. Pending sales orders and purchase orders are included
  5. Watch the critical points (the stock-out date) visually

Pivot analysis:

  1. Switch to the Pivot view on any report screen
  2. Drag dimensions into the row and column areas (Product, Location, Date...)
  3. Add measures to the value area (Quantity, Value...)
  4. Change the chart type with (bar, pie, line)

Key Performance Indicators (KPIs)

Stock Turnover

How many times a year stock is sold. High = efficient use of capital.

Days in Stock

The average time stock is held (days). Low = fast moving.

Stock Accuracy

How closely the system matches physical stock (%). Target: 95%+

Order Fill Rate

The share of orders filled from stock. Target: 98%+

On-Time Delivery

Orders shipped on the promised date. Target: 95%+

Scrap Rate

Scrap as a share of total stock. Low = good management.

Frequently Asked Questions

Can stock go negative?

Not by default. PORTWARE prevents selling without enough stock. The "Allow negative stock" setting can be turned on, however - the system then warns but does not block the operation. This is useful for dropshipping or pre-order models.

How is cost calculated when the same product is bought at different prices?

It depends on the valuation method you choose:
• FIFO: the first purchase price goes out first
• AVCO: the weighted average of all purchases is used
• Standard: the defined fixed cost is used and the difference is posted

How are multiple warehouses managed?

PORTWARE allows unlimited warehouses. Each warehouse has its own locations, incoming/outgoing flows and reporting. Transfers between warehouses are supported. Ideal for businesses with several branches.

What is the difference between a lot and a serial number?

Lot: identifies a group of products (a batch). 100 products from the same production batch share the same lot number. Common in food and pharmaceuticals.
Serial Number: a unique identity for each unit. Each of 100 products has a different serial number. Used for electronics and valuable products.

How often should stock be counted?

By ABC analysis:
• Class A (high value): weekly or monthly
• Class B (medium value): quarterly
• Class C (low value): yearly
An ad-hoc count can also be made when a stock difference is found or something looks suspicious.

Can I use it without a barcode reader?

Yes, every operation can also be done by hand. A barcode reader, however, lowers the error rate and speeds things up. PORTWARE also reads barcodes with the phone camera - no extra hardware needed.

Best Practices

Run an ABC Analysis: Giving every product equal attention is inefficient. Count class A (high value/movement) products more often with lower safety stock; manage class C more simply.

Warehouse Optimisation Tips

Stock Management Tips

The Golden Rule: Excellence in stock management comes from continuous improvement. Review your KPIs every month, analyse the variances and optimise your processes.